Question 1

What is locating new markets for existing products called?
A) market penetration
B) market development
C) product development
D) product diversification

Accepted Answer

Locating new markets for existing products is called market development, which involves finding new customers or new uses for the product in different geographic areas or segments of the existing market. This strategy aims to increase sales and revenue by expanding the product's reach rather than creating new products or entering new industries (product development and product diversification strategies, respectively). Market penetration, on the other hand, focuses on increasing sales of existing products in an existing market, while product development is about creating new or improved products for the existing market.

Question 2

An apparel manufacturer decides to create a line of T-shirts depicting the most popular soft drinks on the market.The images would include Coke, Pepsi, Sprite, Mountain Dew, and Dr.Pepper.What would this venture involve?
A) line extension
B) brand extension
C) brand licensing
D) brand marking

Accepted Answer

This venture would involve brand licensing, as the apparel manufacturer would need permission to use the trademarks and logos of the soft drink brands on their T-shirts.

Question 3

Welch's uses commercials promoting the health benefits of grape juice to target seniors and get them to purchase a product they had seldom consumed in the past.What new product development strategy is this an example of?
A) market penetration
B) market development
C) product development
D) product diversification

Accepted Answer

This is an example of market development, as Welch's is targeting a new market segment (seniors) for a product they had previously not consumed much of (grape juice).

Question 4

General Motors Automobiles acquired Hughes Aircraft Corporation, a firm that makes aircraft components and electronics.What product development strategy is this acquisition an example of?
A) market penetration
B) market development
C) product development
D) product diversification

Accepted Answer

Product diversification involves expanding the company's product line by acquiring or developing businesses outside the scope of its current operations. In this case, General Motors Automobiles acquired a company that produces aircraft components and electronics, which is a significant diversification from their current business of automotive manufacturing.

Question 5

Why does the complexity of an innovation affect its adoption rate?
A) because consumers are slow to adopt products they find difficult to use
B) if the product is inconsistent with the values of potential adopters
C) when a free or discounted trial is provided to delay the product acceptance
D) when the superiority of the product is visible to the consumer

Accepted Answer

Consumers are often hesitant to adopt complex innovations because they find them difficult to use or understand. As a result, adoption is slower when the complexity of the innovation is high.

Question 6

What can potential buyers do that might increase the rate of adoption?
A) measure compatibility
B) acknowledge the complexity
C) decline a trial use
D) observe tangible advantages

Accepted Answer

The answer of What can potential buyers do that might...

Question 7

Which of the following is one of the five categories describing adopters of new products?
A) strivers
B) sluggards
C) brand loyalists
D) early majority

Accepted Answer

The five categories of adopters of new products include innovators, early adopters, early majority, late majority, and laggards. The term "sluggards" is not a recognized category. "Brand loyalists" may describe a particular segment of consumers, but it is not one of the recognized adopter categories. "Strivers" is not a recognized term in the context of adopters of new products.

Question 8

When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios.What was Microsoft increasing by adding this link to its website?
A) product compatibility
B) product complexity
C) possibility of trial use
D) comparison of AOE III to its competitors

Accepted Answer

By offering a free download of one of the game scenarios, Microsoft is increasing the possibility of trial use. This allows potential customers to experience the game before committing to purchasing it, which can lead to increased sales in the long run.

Question 9

What is the introduction of brand new products into readily identifiable or established markets referred to as?
A) product development strategy
B) product positioning strategy
C) product diversification strategy
D) product improvement strategy

Accepted Answer

The introduction of brand new products into established markets is referred to as product development strategy. This strategy involves creating new products or modifying existing ones to target existing markets. It is an important strategy for companies to stay relevant and competitive in a constantly evolving market.

Question 10

What does the product development strategy of product positioning refer to?
A) consumers' perceptions of a product's attributes, uses, and quality, advantages and disadvantages
B) the attempt to increase sales of some existing products in some existing markets
C) a strategy that specifically concentrates on finding completely new markets for currently existing products
D) the introduction of new products into identifiable or established markets

Accepted Answer

Product positioning refers to the process of creating an image or identity of a product in the minds of the target customers. This includes their perceptions of the product's attributes, uses, quality, advantages, and disadvantages relative to competing products.

Question 11

Potential consumers experience a series of stages beginning with learning about a new product, trying it, and deciding whether or not to purchase it regularly.What are these series of stages known as?
A) consumer product life cycle
B) adoption process
C) total product usage or rejection
D) classification of shopping products

Accepted Answer

These series of stages are known as the adoption process, which includes awareness, interest, trial, evaluation, and adoption or rejection of a new product. The consumer product life cycle refers to the different stages a product goes through from its introduction to its decline, while classification of shopping products refers to grouping products based on consumer behavior and attributes. Total product usage or rejection is not a recognized term in marketing.

Question 12

Which of the following actions is NOT one of the stages of consumer adoption?
A) awareness of the product and seeking out information
B) evaluation of the likely benefits
C) providing feedback to the company via relationship marketing
D) trial purchase and evaluation leading to acceptance or rejection

Accepted Answer

While providing feedback to the company is an important aspect of relationship marketing, it is not considered one of the stages of consumer adoption. The commonly recognized stages are awareness, interest, evaluation, trial, and adoption.

Question 13

More than 90 percent of cereal is consumed at breakfast, but ads for Kellogg's Cracklin' Oat Bran say it tastes like oatmeal cookies and makes "a great snack anytime." What strategy is Kellogg's implementing with this product?
A) market penetration
B) market development
C) product development
D) product diversification

Accepted Answer

The answer of More than 90 percent of cereal is...

Question 14

What is experienced by potential users when a new product innovation is consistent with the values and experiences of potential adopters?
A) a greater level of compatibility
B) a greater level of complexity
C) a greater level of possibility of trial use
D) a greater level of observability

Accepted Answer

When a new product innovation is consistent with the values and experiences of potential adopters, they are more likely to perceive it as compatible with their existing behaviors and attitudes. This increases their likelihood of adopting the new product because it aligns with their current beliefs and values.

Question 15

Why can product positioning be important to a new product development strategy?
A) because its results are shown by strong brand recognition, but not by brand insistence
B) because it is never used with family brands, only individual brands
C) because it reflects consumers' perceptions of the product's advantages and disadvantages
D) because the product is at eye level on the shelf, which allows an advantageous position

Accepted Answer

Product positioning reflects consumers' perceptions of the product's advantages and disadvantages, which can inform the development strategy for the new product. By understanding how consumers perceive the product, the company can make informed decisions about how to position and market it for maximum success.

Question 16

What is product cannibalization?
A) the expected outcome from the implementation of market penetration
B) the erosion of a competitor's market share
C) the erosion of an equity brand due to the brand strategy of a competitor
D) the erosion of sales due to other products in the same product line

Accepted Answer

Product cannibalization refers to the reduction in sales or market share of a company's existing product due to the introduction of a new product in the same product line. This can happen when the new product competes with existing products for the same target audience or offers a similar solution to the problem that the existing product solves. This can lead to reduced revenue and profits for a company if not managed properly.

Question 17

Who is a consumer innovator?
A) an individual who develops a new idea for a consumer product
B) an individual who produces a new consumer product
C) an individual who is among the first to purchase a new product
D) an individual who finds a new use for an old product

Accepted Answer

The answer of Who is a consumer innovator?
A) an individual...

Question 18

How can marketers accelerate the adoption process?
A) by paying retailers and wholesalers to heavily promote the product
B) by test-marketing the product first
C) by manipulating one of the characteristics of a product innovation
D) by introducing the product into a foreign market first

Accepted Answer

By manipulating one of the characteristics of a product innovation, such as making it easier to use or more compatible with existing technology, marketers can accelerate the adoption process. This can be achieved through effective communication and promotion of the product's benefits and unique selling points. Paying retailers and wholesalers to heavily promote the product may be costly and not effective, test-marketing the product first may delay the adoption process, and introducing the product into a foreign market first may not necessarily accelerate adoption in the domestic market.

Question 19

Which of the following is an example of a market penetration strategy for new product development?
A) Procter & Gamble sells its current traditional products in new overseas market segments.
B) Ford Motor Company introduces an electric car.
C) Black & Decker sells small home appliances.
D) Morton Salt advertises a way to use salt and vinegar to make a homemade metal polish.

Accepted Answer

Market penetration strategies involve efforts to increase market share for existing products or services in existing markets through greater marketing efforts, improvements in existing offerings, or other tactics that encourage higher usage or new applications. Morton Salt advertising a new use for an existing product (salt) to encourage more consumption or to attract new customers within the same market is an example of a market penetration strategy.

Question 20

In keeping with its corporate strategy of "building a global luxury accessories business," Ralph Lauren introduced a new line of footwear.In business terms, how would the actions of Ralph Lauren be described?
A) as market penetration
B) as market development
C) as product development
D) as product diversification

Accepted Answer

Ralph Lauren's introduction of a new line of footwear falls under the category of product development, which is one of the four growth strategies outlined in the Ansoff Matrix. This strategy involves creating new products or improving existing ones to target new or existing markets. In this case, Ralph Lauren is expanding its luxury accessories business by adding a new product category – footwear.

Quiz 10: Developing and Managing Brand and Product Strategies

What is locating new markets for existing products called?

An apparel manufacturer decides to create a line of T-shirts depicting the most popular soft drinks on the market.The images would include Coke, Pepsi, Sprite, Mountain Dew, and Dr.Pepper.What would this venture involve?

Welch's uses commercials promoting the health benefits of grape juice to target seniors and get them to purchase a product they had seldom consumed in the past.What new product development strategy is this an example of?

General Motors Automobiles acquired Hughes Aircraft Corporation, a firm that makes aircraft components and electronics.What product development strategy is this acquisition an example of?

Why does the complexity of an innovation affect its adoption rate?

What can potential buyers do that might increase the rate of adoption?

Which of the following is one of the five categories describing adopters of new products?

When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios.What was Microsoft increasing by adding this link to its website?

What is the introduction of brand new products into readily identifiable or established markets referred to as?

What does the product development strategy of product positioning refer to?

Potential consumers experience a series of stages beginning with learning about a new product, trying it, and deciding whether or not to purchase it regularly.What are these series of stages known as?

Which of the following actions is NOT one of the stages of consumer adoption?

More than 90 percent of cereal is consumed at breakfast, but ads for Kellogg's Cracklin' Oat Bran say it tastes like oatmeal cookies and makes "a great snack anytime." What strategy is Kellogg's implementing with this product?

What is experienced by potential users when a new product innovation is consistent with the values and experiences of potential adopters?

Why can product positioning be important to a new product development strategy?

What is product cannibalization?

Who is a consumer innovator?

How can marketers accelerate the adoption process?

Which of the following is an example of a market penetration strategy for new product development?

In keeping with its corporate strategy of "building a global luxury accessories business," Ralph Lauren introduced a new line of footwear.In business terms, how would the actions of Ralph Lauren be described?