Question 1

Which of the following data are collected from consumers to develop a perceptual map for a particular product?

Accepted Answer

Evaluations of the important attributes for a product class are collected from consumers to understand how they perceive different products, which is essential for developing a perceptual map.

Question 2

Figure: 9-8 
-The perceptual map in Figure 9-8 shows how various drinks are seen in the minds of adult consumers.Suppose a coffee producer wants to increase sales.Its advertising agency recommends that it run ads showing that coffee is healthier than one or more competitive drinks shown in the figure.In the ads,coffee should be compared with

Accepted Answer

Sugared soft drinks are generally perceived as less healthy, so comparing coffee to them could highlight coffee's health benefits.

Question 3

SwissAir recently tried to expand,but because of a variety of reasons,it failed and had to declare bankruptcy.Prior to declaring bankruptcy,SwissAir engaged in several cost-cutting efforts,which alienated its customer base.After much effort,the company began operations again with the hope of attracting its previous customers back.Because it feared that a _____ strategy would not undo the damage to the brand name,the company opted for a totally new name and new look.

Accepted Answer

Repositioning involves changing the perception of a brand in the minds of consumers. Given that SwissAir had lost its customer base due to cost-cutting efforts, repositioning would be the most suitable strategy to try and regain customer trust. However, the damage to the brand name was so severe that the company opted for a new name and look instead of attempting to reposition the existing brand.

Question 4

Children's Advil pain reliever positioned itself against Children's Tylenol pain reliever by running ads,which claimed that the Advil brand is superior because it works faster and longer than the Tylenol brand.This is an example of:

Accepted Answer

The Advil brand positioning itself against the Tylenol brand by running ads claiming superiority shows head-to-head positioning strategy.

Question 5

When Apple initially launched the iPhone,their major focus was on the high-end consumer market.Apple has spent significant time attempting to change the perception of business' who do not view the phone as a business phone,but rather a consumer phone,and therefore,do not issue it to their employees.Apple is working hard at _____________ the iPhone.

Accepted Answer

The text mentions that Apple is attempting to change the perception of business' who do not view the phone as a business phone, but rather a consumer phone. Therefore, Apple is working on repositioning the iPhone as a suitable device for business use.

Question 6

Marketers use perceptual maps as a means to display or graph in two dimensions the location of products or brands:

Accepted Answer

Perceptual maps are used to display the location of products or brands in the minds of consumers. They show how consumers perceive products or brands in relation to each other based on certain attributes or characteristics. This can help marketers understand how their products or brands are positioned in the market and how they can improve their positioning to better meet consumer needs and preferences.

Question 7

Which type of product positioning would most likely be used to avoid cannibalization?

Accepted Answer

Differentiation positioning is used to create a distinct market position for a product, reducing the risk of cannibalization by ensuring it appeals to a different segment or need than existing products.

Question 8

A two-dimensional matrix with different product dimensions on X and Y axes showing how different products and/or brands are perceived by customers according to those dimensions is known as a:

Accepted Answer

A two-dimensional matrix that displays different product dimensions on X and Y axes and shows how different products or brands are perceived by customers according to those dimensions is a Perceptual Map. This map is used mainly in marketing to identify opportunities in the market for an organization's products or services based on consumer feedback.

Question 9

Post Grape-Nuts cereal has been marketed since early 20^th century.Its market share has been steadily declining as consumers began associating it with something their grandfather ate.Post recently launched a campaign which invited consumers to try the crunchy cereal on top of their yogurt,their salad,or their bowl of soup as a delicious addition.This is an example of a _____ strategy.

Accepted Answer

The strategy described is repositioning, which involves changing the way consumers perceive a product in order to regain or increase market share. By suggesting new ways to consume the cereal, Post is attempting to change the product's image and appeal to a wider audience beyond its traditional use as a breakfast cereal.

Question 10

A perceptual map can be used to identify a firm's product in terms of how closely it fits the "ideal" and where it fits in relationship to competitors.The map is based on perceptions of:

Accepted Answer

A perceptual map is based on the perceptions of the consumers. The map shows how consumers perceive a firm's product in comparison to competitors in terms of key attributes. Intermediaries may also be involved in this process, but they are not the primary focus. The firm itself is likely to have its own perceptions of its products, but these are not necessarily relevant to the consumer's perception. Therefore, option C is the best choice.

Question 11

To avoid cannibalization within company product lines,firms often use:

Accepted Answer

Differentiation positioning is the best option to avoid cannibalization as it involves creating unique brand positioning for each product and emphasizing the unique features that differentiate them from each other. This way, the products don't directly compete with each other and can target different customer segments. Head-to-head positioning involves positioning two similar products against each other, which can lead to cannibalization. Lateral positioning is positioning a product line alongside the existing product line, which can confuse customers and cannibalize sales. Repositioning involves changing the position of an existing product, and may not necessarily solve the cannibalization problem.

Question 12

Head-to-head positioning requires a product to:

Accepted Answer

Head-to-head positioning requires a product to compete with competitors on similar product attributes in the same market, in order to differentiate itself and gain market share.

Question 13

There are a lot of skateboard manufacturers on the market,but the BMW Streetcarver is the only one with stabilizers and wheel design based on BMW's automobile.This technology gives the BMW Streetcarver better control at high speeds and around sharp turns than any other brand.What type of positioning is BMW using with its skateboard priced at $495?

Accepted Answer

BMW is using differentiation positioning by creating a unique product that stands out from other skateboard manufacturers. They are emphasizing the technology and design based on their automobile, which sets them apart from their competitors. The higher price point also suggests they are targeting a more premium customer base.

Question 14

The Dairy Farmers of Canada engaged in a nationwide advertising program that highlighted the benefits of consumer chocolate milk after exercising.After the program was aired,chocolate milk sales increased significantly.What fundamental business decision was likely made that caused the resulting increase in sales?

Accepted Answer

Repositioning chocolate milk from a children's drink to an adult's drink likely broadened its appeal and market, leading to increased sales among adults who exercise.

Question 15

A perceptual map is most like a:

Accepted Answer

A perceptual map is a tool used in marketing to visually display how consumers perceive different brands or products on various dimensions. It is a two-dimensional matrix that shows the relationships between different variables or attributes. Thus, the best choice would be C - a two-dimensional matrix. A consumer map of likes and dislikes is too vague and subjective, a database is not a visual representation, and a pyramid design does not accurately depict the relationships between variables.

Question 16

Which positioning strategy is likely to use a non-mainstream retailer to sell their product?

Accepted Answer

Differentiation positioning is a strategy in which a company sets their product apart from competitors by highlighting unique features or benefits. Non-mainstream retailers may use this strategy to differentiate themselves from larger, mainstream retailers and appeal to a niche market.

Question 17

The iPhone,Blackberry,and new Microsoft smartphone are all positioning themselves in the same target market by emphasizing their superiority in similar product attributes.This is an example of:

Accepted Answer

This is an example of head-to-head positioning, where competitors in the same market are competing based on similar product attributes.

Question 18

"For upscale families who desire a carefree driving experience,Volvo is a premium-priced automobile that offers the upmost in safety and dependability." This could be considered an example of Volvo's:

Accepted Answer

The statement describes Volvo's positioning in the market, highlighting the target audience (upscale families) and key benefits (carefree driving, safety, and dependability).

Question 19

At a Hallmark store you can find several different product lines of greeting cards,including Fresh Ink,Nature's Sketchbook,Shoebox,Maxine,Mahogany,and Tree of Life cards.This is an example of:

Accepted Answer

The presence of several different product lines of greeting cards at a Hallmark store shows differentiation positioning, as each product line has unique characteristics and targets a specific segment of the market.

Question 20

Differentiation positioning requires a product to:

Accepted Answer

Differentiation positioning involves targeting a smaller niche market with unique attributes that set the product apart from competitors. This allows the product to avoid direct competition and instead focus on meeting the specific needs of a particular group of consumers.

Quiz 9: Market Segmentation, Targeting, and Positioning