Deck 11: Managing Successful Products Services and Brands

Question 1

What is the marketing objective for the maturity stage of the product life cycle?

A)begin deletion
B)implement skimming
C)stress differentiation
D)gain awareness
E)maintain brand loyalty

Answer 1

E

Question 2

There are four stages of the product life cycle. What does the second stage of the product life cycle represent?

A)introduction
B)maturity
C)growth
D)accelerated development
E)decline

Answer 2

C

Question 3

The launch by Gatorade of Gatorade Endurance Carb Energy Chews is evidence of

A)dynamic development.
B)discontinuous development.
C)product development.
D)symbiotic development.
E)simultaneous development.

Answer 3

C

Question 4

Products such as Gatorade Xtremo, Gatorade X-Factor, and Gatorade Endurance Formula were introduced to appeal to

A)brand-conscious consumers.
B)PepsiCo, the new owner of Gatorade.
C)new groups of consumers.
D)consumer who were already loyal to the brand.
E)the trends for fads in the beverage category.

Question 5

Usually two curves are shown in a figure that represents the stages of the product life cycle. The two curves shown represent total industry sales revenue and total industry profit. Typically what does the lower of the two curves represent?

A)total variable costs
B)total fixed costs
C)total industry profit
D)total industry sales revenue
E)total research and development costs

Question 6

Usually two curves are shown in a figure that represents the stages of the product life cycle. The two curves shown represent total industry sales revenue and total industry profit. Typically what does the higher of the two curves represent?

A)total variable costs
B)total fixed costs
C)total industry profit
D)total industry sales revenue
E)total research and development costs

Question 7

Gatorade is classified as a(n) __________ brand.

A)domestic
B)regional
C)international
D)global
E)nationwide

Question 8

Gatorade offers a range of product offerings. The firm uses one name for all its products in a product class. Gatorade is using a __________ strategy.

A)multibranding
B)family branding
C)co-branding
D)dual branding
E)mixed branding

Question 9

To ________________ of Gatorade offerings from the traditional Gatorade Thirst Quencher, newly enhanced beverages convey the attitude of a tough-love coach or personal trainer through in-your-face names on the label and nutrition benefits inside.

A)position the category
B)create a subbranding
C)create a pricing differential
D)differentiate the range
E)introduce a new product class

Question 10

What is the marketing objective for the growth stage of the product life cycle?

A)minimize promotion
B)increase market share
C)stress differentiation
D)gain awareness
E)maintain brand loyalty

Question 11

What is the marketing objective for the introduction stage of the product life cycle?

A)harvesting
B)market share
C)stress differentiation
D)maintain brand loyalty
E)gain awareness

Question 12

Product life cycle refers to

A)the average life span of a product.
B)a concept that describes the stages a new product goes through from product concept to commercialization.
C)a concept that describes the stages a product goes through in the marketplace-early growth, accelerated development, maturity, and decline.
D)a concept that describes the stages a product goes through in the marketplace-introduction, growth, maturity, and decline.
E)the amount of time it takes a product innovation to completely diffuse in the marketplace.

Question 13

Which of the following statements regarding Gatorade's branding is most accurate?

A)Gatorade uses the same formula for all its products and simply changes the brand name when introducing new flavors.
B)Gatorade's success can be attributed to management's decision to find and then stick with one channel of distribution.
C)Gatorade changed its color, packaging, and size of items in the product line for the domestic market so that they would not conflict with those marketed to foreign markets.
D)Gatorade has used the same packaging since the product debuted in 1965.
E)Gatorade has changed its product formulation, packaging, and advertising over the years in response to changes in the marketplace.

Question 14

A concept that describes the stages a product goes through in the marketplace-introduction, growth, maturity, and decline-is referred to as the

A)retail life cycle.
B)product life cycle.
C)marketing mix.
D)product growth cycle.
E)diffusion of product innovation.

Question 15

There are four stages of the product life cycle. What does the fourth stage of the product life cycle represent?

A)introduction
B)maturity
C)growth
D)accelerated development
E)decline

Question 16

Which of the following statements is most accurate?

A)The name Gatorade was chosen because as an energy drink it "got you out the gate-fast."
B)The name Gatorade was coined by a team who lost to the University of Florida Gators, attributing the Gator win to the "aid" it got from the rehydrating beverage.
C)The green color of the original lemon-lime Gatorade was based on the University of Florida's alligator mascot.
D)Gatorade was developed by PepsiCo as a cause-marketing project to provide resources for women's sports at the University of Florida as a result of the passage of Title IX in 1972.
E)Gatorade is the only sports drink marketer that doesn't use sports celebrities to endorse its products.

Question 17

There are four stages of the product life cycle. What does the first stage of the product life cycle represent?

A)introduction
B)maturity
C)growth
D)accelerated development
E)decline

Question 18

What is the marketing objective for the decline stage of the product life cycle?

A)harvesting
B)add outlets
C)stress differentiation
D)gain awareness
E)maintain brand loyalty

Question 19

There are four stages of the product life cycle. What does the third stage of the product life cycle represent?

A)introduction
B)maturity
C)growth
D)accelerated development
E)decline

Question 20

Gatorade's enhanced beverages and the creation of the G Series of products illustrate ___________________________ and masterful brand management in a dynamic marketplace.

A)continuous product development
B)functional product development
C)communications development
D)physical product development
E)tangible product development

Question 21

During the introduction stage of the product life cycle, the place (distribution) element of the marketing mix is highly involved with

A)increasing inventory levels at warehouses and distribution centers to meet potential demand.
B)gaining as many retail distribution outlets as possible, even though many will be reluctant to carry the new product.
C)using an intermodal logistics system to get the products through the marketing channel as quickly as possible.
D)building storage warehouses and distribution centers to establish an efficient infrastructure for the new product.
E)obtaining contracts with independent sales agents and brokers instead of using the firm's salesforce.

Question 22

The two most common pricing alternatives for products in the introduction stage of the product life cycle are

A)skimming pricing and penetration pricing.
B)price lining and product line pricing.
C)markdown pricing and quantity discount pricing.
D)skimming pricing and bundle pricing.
E)penetration pricing and experience curve pricing.

Question 23

The marketing objective for a product in the __________ stage of the product life cycle is to create consumer awareness and stimulate trial.

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 24

The __________ stage of the product life cycle occurs when a product is launched to its intended target market.

A)concept
B)introduction
C)growth
D)maturity
E)decline

Question 25

The lack of profit in the introductory stage of the product life cycle is very often the result of

A)pricing the product too low in an attempt to quickly gain market share.
B)targeting the wrong target market segment.
C)a lack of wholesaler support.
D)the large investment costs in product development.
E)ineffective execution of the marketing program.

Question 26

Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate primary demand, or desire for the product __________, rather than for a specific brand, when there are few competitors with the same product.

A)class
B)form
C)item
D)mix
E)concept

Question 27

Over a decade ago, Survivor premiered as a night-time reality TV show during the summer season when TV ratings are normally low and TV viewing options consisted primarily of reruns. The marketing goals for the first show included making television viewers aware of its existence and generating enough excitement about the show so that millions of viewers would watch the first episode. Based on this description, the TV show was in what stage of its product life cycle?

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 28

When the Floral Council, a trade association of flower shop retailers, advertises that giving flowers is a thoughtful and appreciated gift for any occasion, it is trying to stimulate __________ demand.

A)selective
B)primary
C)derived
D)generic
E)secondary

Question 29

During the introduction stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for an entire product class rather than for a specific brand. The consumer demand that is stimulated is referred to as __________ demand.

A)selective
B)primary
C)derived
D)generic
E)secondary

Question 30

The desire for a product class rather than for a specific brand is called __________ demand.

A)selective
B)primary
C)derived
D)generic
E)secondary

Question 31

Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate __________, the desire for the product class, rather than for a specific brand, when there are few competitors with the same product.

A)secondary demand
B)introductory demand
C)primary demand
D)discretionary demand
E)selective demand

Question 32

A product in the introduction stage of its product life cycle should have which of the following marketing objective(s)?

A)stress differentiation
B)gain awareness and stimulate trial
C)foster brand loyalty
D)gain as much distribution as possible
E)target a marketing niche

Question 33

When the National Cattlemen's Beef Association developed the "Beef, It's What's for Dinner" advertising campaign, it was trying to stimulate __________ demand.

A)selective
B)generic
C)derived
D)primary
E)secondary

Question 34

When the Egg Farmers of Canada implemented its "Get Cracking" advertising campaign, the organization was trying to stimulate __________ demand.

A)secondary
B)selective
C)derived
D)generic
E)primary

Question 35

The initial purchase of a product by a consumer is referred to as

A)a product sampling.
B)a first buy.
C)a trial.
D)an assessment.
E)an examination period.

Question 36

As more competitors launch their own products and the product progresses along its life cycle, company attention is focused on creating __________ demand, or the preference for a specific brand.

A)primary
B)selective
C)derived
D)generic
E)secondary

Question 37

For years, when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland-branded cranberry juice came on the market, claiming that it was superior to the Ocean Spray brand. Northland was creating __________ demand.

A)primary
B)derived
C)generic
D)selective
E)secondary

Question 38

Promotional expenditures at the introduction stage of the product life cycle are best spent on

A)contests and sweepstakes to stimulate selective demand.
B)product samples to create secondary demand.
C)advertising to stimulate primary demand.
D)personal endorsements to generate word-of-mouth demand.
E)coupons to maintain brand loyalty or static demand.

Question 39

Millions of dollars were spent by Gillette to develop the Gillette Fusion razor shaving system. What was the marketing objective for the company at this stage of the product life cycle?

A)stress differentiation from other saving products
B)maintain brand loyalty
C)allow users to spend time doing other things
D)create awareness and stimulate trial
E)target a whole new group of consumers

Question 40

The preference for a specific brand is called __________ demand.

A)selective
B)secondary
C)primary
D)derived
E)generic

Question 41

At which stage in the product life cycle do industry profits usually peak?

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 42

Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors?

A)maturity
B)decline
C)growth
D)accelerated development
E)introduction

Question 43

The __________ stage of the product life cycle is characterized by rapid increases in sales.

A)introduction
B)growth
C)maturity
D)decline
E)harvest

Question 44

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they must be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of the following would be the least sound marketing program decision?

A)Select a skimming pricing strategy to position the product as "premium."
B)Seek widespread distribution to gain a foothold in what might be a potentially huge market.
C)Limit production capacity until you are certain consumers will actually want the product.
D)Avoid a connection to the Eveready brand until the product has proven itself.
E)Use multiple brand names to discourage other competitors from entering the market.

Question 45

Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox used __________ pricing strategy to help recover its research and development costs.

A)a penetration
B)a cost-plus
C)a skimming
D)a target ROI
E)an above-market

Question 46

Which of the following statements about the introduction stage of the product life cycle is most accurate?

A)If a firm's product is especially good, efforts should be made to create selective demand rather than primary demand to allow the firm to distinguish itself from competitors.
B)During the introduction stage, it is best to avoid a skimming pricing strategy.
C)During the introduction stage, it is best to avoid a penetration pricing strategy.
D)A firm should introduce the identical product at several different price points in order to gauge customer price sensitivity.
E)Because of large initial investment costs, industry profits often go from negative to positive.

Question 47

All electric-powered automobiles such as the Chevy Spark are in which stage of their product life cycle?

A)growth
B)maturity
C)decline
D)accelerated development
E)introduction

Question 48

A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and/or to

A)capitalize on the price insensitivity of early buyers.
B)discourage competition from other manufacturers.
C)ease the product into its maturity stage.
D)gain the largest unit sales possible.
E)gain more distribution outlets.

Question 49

LED (light-emitting diode) bulbs, such as the Cree LED bulb, have been available for only a few years in low lighting levels (lumens). They are designed to replace incandescent and compact fluorescent lightbulbs, in part because of a federal law that phases out incandescent lightbulbs in favor of more energy-efficient ones. LED bulbs will last up to 20 years. In what stage of the product life cycle is this product?

A)growth stage
B)decline stage
C)accelerated development stage
D)introduction stage
E)maturity stage

Question 50

The __________ stage of the product life cycle is characterized by the appearance of competitors.

A)decline
B)maturity
C)introduction
D)growth
E)harvest

Question 51

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except

A)it capitalizes on the price insensitivity of early buyers.
B)its profit margins may be high.
C)it encourages "me too" entrants into the market.
D)it recovers the R&D costs of the new offering.
E)it helps build unit volume.

Question 52

During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price for a new product is referred to as __________ pricing.

A)penetration
B)cost-plus
C)target ROI
D)below-market
E)skimming

Question 53

The 3D OLED (organic light-emitting diode) HDTVs, such as the 55-inch model from LG Electronics that in 2015 cost about $10,000, were in which stage of their product life cycle?

A)introduction
B)growth
C)maturity
D)decline
E)harvest

Question 54

People who tried a product, were satisfied, and bought it again are called __________ purchasers.

A)replicate
B)recurring
C)recursive
D)die-hard
E)repeat

Question 55

For the Gillette Fusion razor, over 60 percent of men who tried the razor adopted the product permanently. These men are known as __________ purchasers.

A)repeat
B)replicate
C)recurring
D)recursive
E)die-hard

Question 56

All electric-powered automobiles such as the Tesla Motors Model S are in which stage of its product life cycle?

A)growth
B)maturity
C)introduction
D)decline
E)accelerated development

Question 57

Which of the following is a characteristic of the growth stage of the product life cycle?

A)Advertising emphasis switches to selective demand.
B)A growing proportion of trial purchases come from brand loyal users.
C)Product features remain unchanged.
D)Profit margins increase as sales increase.
E)The product is sold in a narrowly selected number of retail outlets.

Question 58

The 3M Co. is a master of the __________ pricing strategy. According to a 3M manager, "We hit fast, price high, and get the heck out when the me-too products pour in."

A)penetration
B)cost-plus
C)ROI
D)market-oriented
E)skimming

Question 59

During the introduction stage of the product life cycle, __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development.

A)a penetration
B)a cost-plus
C)a target ROI
D)a skimming
E)an above-market

Question 60

Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases the components for the items, which are then sent to small assembly factories in Shenzhen, located in southern China. These smartphones retail for about $65, significantly less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Xunrui Communications most likely is using which pricing strategy in this example?

A)penetration pricing
B)cost-plus pricing
C)target ROI pricing
D)above-market pricing
E)skimming pricing

Question 61

Which of the following statements regarding the maturity stage of the product life cycle is most accurate?

A)Marketing emphasis is directed toward generating more consumer awareness.
B)Marketing emphasis switches to finding more channel intermediaries to carry the product.
C)Marketing emphasis aims at stimulating primary demand for the product.
D)Marketing attention is directed toward holding market share through further product differentiation and finding new buyers.
E)Marketing emphasis is directed toward having salespeople allocate less time to selling the product.

Question 62

Changes in the product characteristically take place in the __________ stage of the product life cycle.

A)introduction
B)maturity
C)decline
D)harvest
E)growth

Question 63

Which stage in the product life cycle is characterized by a slowing of total industry sales or product class revenue?

A)introduction
B)growth
C)maturity
D)decline
E)decelerated implementation

Question 64

Which of the following is an example of a product in the maturity stage of the product life cycle?

A)pocket video cameras
B)hybrid vehicles
C)3D HDTVs
D)soft drinks
E)tablet devices

Question 65

Which of the following occurs during the decline stage of the product life cycle?

A)Sales drop.
B)Flanking product lines are added.
C)The product becomes less vulnerable to changes in the marketing environment.
D)Promotional support is increased.
E)Competition becomes intense as more competitors enter the market.

Question 66

Which of the following statements regarding the maturity stage of the product life cycle is most accurate?

A)Technological forces often push a product from the introduction stage to the maturity stage.
B)During the maturity stage, companies add more distribution outlets to maximize target market coverage.
C)Sales increase at a decreasing rate as fewer new buyers enter the market.
D)Industry profits peak because production and distribution costs are declining.
E)Total industry profits exceed total industry sales.

Question 67

Sales exhibit a downward trend throughout which stage of the product life cycle?

A)introduction
B)growth
C)maturity
D)decay
E)decline

Question 68

Which of the following is a characteristic of the growth stage of the product life cycle?

A)Advertising emphasis switches to primary demand.
B)The proportion of initial purchasers to repeat purchasers grows.
C)New or modified product features are added.
D)Profit margins increase as sales increase.
E)There are a limited number of retail outlets for greater quality control.

Question 69

At which stage of the product life cycle is a company likely to have its most complete product line?

A)introduction
B)growth
C)maturity
D)decline
E)accelerated development

Question 70

During the __________ stage of the product life cycle, product proliferation occurs to help differentiate a company's brand from competitors.

A)introduction
B)growth
C)maturity
D)decline
E)harvest

Question 71

The __________ stage of the product life cycle is characterized by the slowing of total industry sales or product class revenue, causing marginal competitors to begin leaving the market.

A)decline
B)maturity
C)introduction
D)growth
E)harvest

Question 72

Promotional expenses at the maturity stage of the product life cycle are often designed to

A)convince those who have abandoned the brand to try it again.
B)maintain market share.
C)create a sense of nostalgia.
D)attract more price-conscious consumers.
E)thwart the growing number of competitors that have entered the market.

Question 73

Electric automobiles like the Chevrolet Spark made by General Motors are in the introductory stage of the product life cycle. By comparison, smartphones such as the Apple iPhone 6 are in the _____________ of the product life cycle.

A)decline stage
B)commercialization stage
C)accelerated development stage
D)growth stage
E)introduction stage

Question 74

In which stage of the product life cycle do marginal competitors begin to leave the market?

A)introduction
B)growth
C)decline
D)maturity
E)harvest

Question 75

Which of the following is an example of a product in the growth stage of the product life cycle?

A)e-book readers
B)all electric cars
C)3D HDTVs
D)soft drinks
E)analog TVs

Question 76

In which stage of the product life cycle is it important to broaden distribution of the product?

A)introduction
B)growth
C)maturity
D)decline
E)harvest

Question 77

Which of the following is a characteristic of the growth stage of the product life cycle?

A)Advertising emphasis switches to primary demand.
B)The proportion of repeat purchasers to initial purchasers grows.
C)The number of distribution outlets shrinks due to growing inefficiencies.
D)Profit margins increase as sales increase.
E)No new product features are added to maximize profits.

Question 78

During the maturity stage of the product life cycle, profit declines primarily because

A)there are fewer and fewer competitors in the market.
B)promotional expenditures increase.
C)production costs increase the more a firm has to manufacture the same product.
D)there is fierce price competition among sellers.
E)more consumers enter the market seeking bargains.

Question 79

To help differentiate a company's brand from competitors, an improved version is created or new features are added to the original design, and product proliferation occurs in the __________ stage of the product life cycle.

A)introduction
B)maturity
C)decline
D)growth
E)harvest

Question 80

When most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it, what stage of the product life cycle is the product in?

A)introduction
B)growth
C)maturity
D)decline
E)harvest