Deck 10: Managing Successful Products, Services, and Brands

Question 1

One type of television show is a category called TV reality shows.According to the product life cycle framework,what is(are)the marketing objective(s)of the producers for these reality shows when they were in the introduction stage of their product life cycles?

A)stress differentiation from other TV show formats
B)maintain viewer loyalty
C)allow viewers to watch the show on the Netflix channel
D)gain awareness and stimulate the target market to watch
E)target viewers of "sitcoms," or situation comedies

Answer 1

D

Question 2

The range of Gatorade offerings from the traditional Gatorade Thirst Quencher to newly enhanced beverages conveying the attitude of a tough-love coach or personal trainer through in-your-face names on the label and nutrition benefits inside are all examples of a company's commitment to __________ product improvement.

A)dynamic
B)discontinuous
C)continuous
D)symbiotic
E)simultaneous

Answer 2

C

Question 3

Gillette spent $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

Answer 3

C

Question 4

The initial purchase of a product by a consumer is referred to as a(n)_________.

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

Question 5

A decade ago,Survivor premiered as a nighttime 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 6

Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic bolt."For Gatorade,G represents the heart,hustle,and soul of athleticism and will become a badge of pride for anyone who sweats,no matter where they're active." This is an example of __________ benefits.

A)functional
B)communications
C)perceptual
D)physical
E)tangible

Question 7

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 8

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 University of Florida's 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 9

The 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 10

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 11

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 12

Since Gatorade Thirst Quencher was concocted in 1965,its marketers have introduced Gatorade Frost in 1997,Gatorade Fierce in 1999,the Gatorade Performance Series in 2001,Gatorade Rain in 2006,and the Gatorade G Series in 2011,to name a few.These introductions are examples of __________.

A)brand extensions
B)subbranding
C)primary demand
D)product line extensions
E)a product class

Question 13

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

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

Question 14

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 15

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 16

Gatorade is MOST LIKELY in which stage of its product life cycle?

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

Question 17

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 in order 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 must go from negative to positive.

Question 18

Gatorade is classified as a __________ brand.

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

Question 19

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 20

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 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 21

Gillette spent $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 22

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

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

Question 23

3M 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 24

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 25

The Dell EC 280 is a small desktop computer that uses less electrical power and is targeted at the less affluent,but very large Chinese market that has never owned a personal computer.The PC was introduced at a price of $340 for a basic configuration.Dell most likely used 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 26

3D OLED (organic light-emitting diode)HDTVs,such as the 55"model from LG Electronics,are in which stage of the product life cycle?

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

Question 27

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 28

An all electric-powered automobile such as the Tesla Motors Model S is in which stage of its product life cycle?

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

Question 29

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 30

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 31

The preference for a specific brand is called __________ demand.

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

Question 32

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 33

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 34

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 35

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 cultivate primary demand
D)personal endorsements to generate word of mouth demand
E)coupons to maintain brand loyalty or static demand

Question 36

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

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

Question 37

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

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

Question 38

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 39

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

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

Question 40

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 41

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 42

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

A)e-books
B)all electric cars
C)3D HDTVs
D)soft drinks
E)traditional TVs

Question 43

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 44

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 45

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 46

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 5 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 47

Apple launched its iPhone in 2007 and has become the world's best smartphone with its multitouch user interface and its "apps." The product class has experienced tremendous growth,both in terms of sales and the addition of formidable competitors such as Samsung,LG,HTC,Nokia,BlackBerry,etc.vying for market share.Which stage of the product life cycle are smartphones such as the iPhone in?

A)decline stage
B)commercialization stage
C)maturity stage
D)growth stage
E)introduction stage

Question 48

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 49

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

A)advertising emphasis switches to selective demand
B)growing proportion of trial purchasers to brand loyal users
C)product features remain unchanged
D)profit margins increase as sales increase
E)the product is sold in the maximum number of retail outlets

Question 50

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 51

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

A)advertising emphasis switches to primary demand
B)a growing proportion of repeat purchasers to initial purchasers
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 52

LED (light-emitting diode)light bulbs,which have been available for only a few years in low lighting levels (lumens),are now coming to the marketplace in a 100 watt,7500 lumen equivalent.They are designed to replace incandescent and even compact fluorescent light bulbs,in part because of a federal law that phases out incandescent light bulbs in favor of more energy efficient ones.LED bulbs,which today can cost over $50 for a 100-watt bulb,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)maturity stage
E)introduction stage

Question 53

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 54

Men who tried the Gillette Fusion razor were so satisfied with it that 60 percent of them adopted the product permanently.These men are known as __________ purchasers.

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

Question 55

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

A)advertising emphasis switches to primary demand
B)a growing proportion of initial purchasers to repeat purchasers
C)addition of new or modified product features
D)profit margins increase as sales increase
E)there are a limited number of retail outlets for greater quality control

Question 56

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)growth
C)maturity
D)decline
E)harvest

Question 57

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 58

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 59

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 60

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 61

Even though Liquid Paper correction fluid is in the __________ stage of its product life cycle,Sanford,its manufacturer,has not deleted it from its line because there is still a residual core of consumers who use the product.

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

Question 62

In the late 1950s and 1960s,television westerns were extremely popular.The shows were adventure shows with settings and costumes that were very unlike other shows at that time.There were Gunsmoke,Bonanza,Wagon Train,The Big Valley etc.When ratings declined as viewers gradually stopped watching this TV genre,production companies found the networks no longer wanted to buy and televise such shows.The television western was a product category that entered the __________ stage of its product life cycle.

A)deletion
B)cancellation
C)decline
D)maturity
E)harvesting

Question 63

In terms of its effect on faxing,e-mail has __________.

A)led to a significant number of improvements in fax machine technology to keep the product class competitive
B)led to a significant decrease in fax machine sales because e-mail better suits the needs of the business community
C)led to a significant increase in fax machine purchases due to distrust of e-mail spam
D)a minimal impact since the two technologies do not directly compete with each other
E)caused most fax machine manufacturers to incorporate new Internet technology to send,receive,and print e-mails through a wireless connection to a personal computer

Question 64

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

A)Sales decrease substantially.
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 65

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 66

Your product has been suffering from steadily eroding sales.You have tried a number of options to revitalize the product's sales and profits,but after seven changes in your strategy,you have yet to find success.Which of the following actions would be the LEAST appropriate next step?

A)delete the product from the line
B)retain the product,but reduce its marketing costs
C)stimulate primary demand
D)stimulate selective demand
E)rebrand the product

Question 67

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 68

Apple introduced the iPhone and iPad that use a multitouch screen to control and interact with what's on its screen,as well as the Magic Trackpad,which is also is a multitouch device.These devices require consumers to use gestures (touch,swipe,tap,etc.)to perform various functions.This could "exterminate" the "mouse," a device Apple invented in 1977 for its Apple II computer that enabled users to perform various functions by moving the mouse and clicking its buttons.Based on the emergence of these two multitouch technologies,the mouse most likely is now in the __________ stage of its product life cycle.

A)introduction
B)decline
C)maturity
D)deletion
E)harvesting

Question 69

Profits tend to consume a disproportionate share of management and financial resources relative to their worth throughout which stage of the product life cycle?

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

Question 70

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

A)Ironically,in the decline stage,sales decline even though profits increase.
B)A product always enters the decline stage as the result a major product flaw or marketing misstep.
C)A major reason that a firm's product enters the decline stage is as a result of a change in the marketing environment.
D)The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage.
E)Service industries are exempt from the decline stage because of their intangible nature.

Question 71

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 72

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 this 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 73

A strategy of dropping a product from the product line during the decline stage of the product life cycle is referred to as __________.

A)trimming
B)elimination
C)paring down
D)deletion
E)harvesting

Question 74

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 75

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

A)pocket video cameras
B)analog TVs
C)3D HDTVs
D)soft drinks
E)tablet devices

Question 76

Industry analysts estimate that the number of e-mail mailboxes worldwide will grow to __________ by 2014.

A)2.1 billion
B)2.5 billion
C)3.1 billion
D)3.5 billion
E)4.1 billion

Question 77

To handle products in the decline stage of the product life cycle,companies often use either a __________ strategy or a __________ strategy.

A)divesting; harvesting
B)diversification; contraction
C)deletion; harvesting
D)deletion; diversification
E)building; divesting

Question 78

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

A)Marketing emphasis is directed towards 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 towards having salespeople allocate less time to selling the product.

Question 79

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

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

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