Question 1

A company makes several different kinds of shampoo, but it did not have a dandruff shampoo designed for women until it added Pro-Women antidandruff shampoo. This is an example of a(n) ________.

Accepted Answer

Adding a new product (Pro-Women antidandruff shampoo) to address a previously unmet need within an existing product line (shampoos) without moving up or down in market positioning or price points is an example of a filling-out product strategy. This strategy involves adding more items within the present range of the line to cover missing items and better satisfy customer needs.

Question 2

Explain cannibalization. How does a line extension strategy increase the risk of cannibalization?

Accepted Answer

The answer of Explain cannibalization. How does a line extension...

Question 3

When creating product objectives, marketers should consider the long-term implications of product decisions.

Accepted Answer

Marketers should consider the long-term implications of product decisions when creating product objectives as this will help ensure sustainable growth for the brand and avoid short-term gains that may harm the brand's reputation in the long run.

Question 4

A company can stretch its product line either upward or downward, but not both directions.

Accepted Answer

This statement is not necessarily true. A company can stretch its product line both upwards and downwards at the same time, as long as it targets different market segments with each line. For example, a clothing company can offer a high-end luxury line as well as a more affordable line for everyday wear, targeting both upper and lower income consumers.

Question 5

Heinz stopped marketing its "Bite Me" brand of frozen pizza snacks due to disappointing sales. This is an example of a ________.

Accepted Answer

Product line contraction refers to the process of reducing the number of products in a company's product line. In this case, Heinz stopped marketing the "Bite Me" brand of frozen pizza snacks due to disappointing sales, indicating a contraction in their product line.

Question 6

Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more. Mercedes implemented a(n) ________.

Accepted Answer

Mercedes introduced a lower-priced option (the C-Class at $30,000) to its existing product line without negatively impacting the sales of its higher-priced models. This strategy is known as a downward product line stretch, where a company expands its product offerings by adding lower-priced items to attract a broader customer base or to fend off lower-priced competitors, without harming the brand's premium image or the sales of its higher-priced products.

Question 7

Total quality management involves all employees, regardless of their function, in continuous quality improvement efforts.

Accepted Answer

Total quality management (TQM) is a management approach focused on continuous quality improvement in all aspects of an organization. It involves all employees, regardless of their function, in identifying and solving problems and improving organizational processes. TQM emphasizes on meeting or exceeding customer expectations and improving product and service quality.

Question 8

A watch manufacturer added a watch to its product line that was higher priced than the models it already carried. The company used a two-way stretch strategy.

Accepted Answer

A two-way stretch strategy involves adding products at both higher and lower price points, whereas adding only a higher-priced product is an upward stretch.

Question 9

A stock-keeping unit (SKU) is a unique identifier for each distinct brand.

Accepted Answer

A stock-keeping unit (SKU) is a unique identifier for each distinct product, not brand.

Question 10

How can marketers use elements of the marketing mix to improve product quality?

Accepted Answer

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Question 11

Which of the following is designed to help a firm almost entirely reduce product and service defects?

Accepted Answer

Six Sigma is a business management strategy that aims to eliminate defects in products and services by improving processes and reducing variability. It focuses on statistical analysis to identify areas of improvement and aims for a maximum of 3.4 defects per million opportunities. Therefore, Six Sigma is designed to help a firm almost entirely reduce product and service defects.

Question 12

A company introduced the Funday film to compete with lower-priced brands, but it found many of its regular customers bought Funday instead of its usual, higher-priced film. The company experienced ________.

Accepted Answer

The situation described in the question is indicative of cannibalization, which occurs when a company's new or cheaper product takes market share away from its existing, higher-priced offerings. In this case, Funday film is the new, lower-priced option that is attracting regular customers away from the company's higher-priced film.

Question 13

According to the total quality management philosophy, coworkers are internal customers.

Accepted Answer

According to the total quality management philosophy, coworkers are considered internal customers because they receive products or services from their colleagues in order to perform their own jobs effectively. Just like external customers, internal customers have expectations and needs that need to be met in order to achieve customer satisfaction and overall organizational success.

Question 14

A winery introduced a brand of wine that is priced twice as high as its other wines. This is an example of product extension by a(n) ________.

Accepted Answer

Upward product line stretch involves introducing a higher-priced product in order to capture a higher-end market segment. This is the case with the winery introducing a new, higher-priced wine. The other answer choices do not accurately describe this strategy. A downward product line stretch involves introducing a lower-priced product, while a two-way product line stretch involves introducing both higher-priced and lower-priced products. Product mix refers to the entire range of products offered by a company. Cannibalization strategy involves one product taking sales away from another product within the same company.

Question 15

A company has just one product line: it manufactures only supercomputers. This one product line is also the company's ________.

Accepted Answer

Product mix refers to the complete range of products or product lines that a company offers, and since this company only has one product line, it is their product mix. A) Branding strategy refers to how a company positions and presents their brand to the market. B) Marketing mix refers to the set of marketing tools and tactics that a company uses to promote its products in the market. D) Promotional mix refers to the specific promotional tools and tactics that a company uses to communicate with its customers. E) Brand equity refers to the overall value of a brand in the market, which is determined by factors such as customer loyalty, brand awareness, and perceived quality.

Question 16

Active Beverages targets the same people who watch the Gravity Games and enjoy skateboarding, in-line skating, mountain biking, and other extreme sports. It makes high-energy drinks for this target market. It does not attempt to make any drinks that are not targeted to this market. Active Beverages uses a(n) ________.

Accepted Answer

Active Beverages uses a limited-line product strategy by targeting a specific market (those interested in extreme sports) and creating products tailored to that market. They do not try to appeal to a broader audience or create products outside of their niche.

Question 17

Why is successful product management increasingly important as technology moves forward and the marketplace becomes more globalized?

Accepted Answer

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Question 18

The Six Sigma process is applied to products but not services.

Accepted Answer

The Six Sigma process can be applied to both products and services. The methodology focuses on improving quality and reducing defects by using data-driven analysis and problem-solving techniques.

Question 19

In addition to regular Alka-Seltzer, there is an Alka-Seltzer product for each of the following: cold sufferers, people with upset stomachs, people who can't sleep, people with allergies, and people who have severe headaches. The manufacturer of Alka-Seltzer is using a(n) ________ to reach as many different target markets as possible.

Accepted Answer

A full-line product strategy involves offering a complete range of products to meet the needs of different target markets. Alka-Seltzer is using this strategy by offering multiple products to address different health concerns.

Question 20

Practically every brand of soft drink ever made is available at Mom's Soda Shop; regional beverages from around the world can be purchased at the retailer's website. The retailer targets people who have developed a fondness for a particular soft drink and can no longer find it. The retailer's ________ is all types of soft drinks.

Accepted Answer

The retailer's product mix is the range of soft drinks available for purchase.

Quiz 9: Product Ii: Product Strategy, Branding, and Product Management