Question 1

In ______ stage of the product life cycle,profits generally first appear.

Accepted Answer

During the growth stage of the product life cycle, sales begin to increase significantly, leading to a rise in profits as the product gains market acceptance and brand recognition. This is typically when profits first appear, following the introductory phase where costs are high and sales are starting to grow.

Question 2

Which of the following is inconsistent with a product in its decline stage?

Accepted Answer

In the decline stage, prices may lower due to decreased demand, but they do not necessarily decline sharply. This choice is inconsistent because it suggests a rapid decrease in price, which is more characteristic of a market responding to immediate issues rather than the gradual decline phase of a product lifecycle.

Question 3

Amber is assessing a new product's potential sales and competitive strengths and will obtain initial consumer reaction before the product is sold.Amber is in what stage of product development?

Accepted Answer

The answer of Amber is assessing a new product's potential...

Question 4

Radhika is developing a new product and is working with specialists from her organization to eliminate ideas that cannot be developed within the company's resources.Radhika is in what stage of product development?

Accepted Answer

The stage where ideas are eliminated that cannot be developed within a company's resources is known as the Screening stage. This is where unfeasible ideas are filtered out before significant resources are invested in development.

Question 5

Alberto works for Kahl Inc)an electronic goods manufacturer,and is producing a new washer/dryer unit.He is collaborating with the marketing staff to arrange for a series of designs,tests,and functioning prototypes.Alberto is working in which stage of new-product development?

Accepted Answer

Alberto is in the product development stage, where designs, tests, and functioning prototypes are created before the product is finalized and launched. This stage involves turning ideas into tangible products through design and development processes.

Question 6

In which stage of the product life cycle do sales reach a saturation level,making further sales expansion difficult?

Accepted Answer

In the maturity stage of the product life cycle, sales growth slows down and eventually reaches a saturation level, making it difficult to achieve further expansion in sales. This stage follows the growth stage, where sales and profits rapidly increase, and precedes the decline stage, where sales begin to fall.

Question 7

Which of these best describe a group of related products marked by physical similarities or intended for a similar market?

Accepted Answer

A product line refers to a group of related products that are physically similar or intended for a similar market, often produced or sold by the same company.

Question 8

E-readers were introduced with great success.Additional companies have entered the market and sales have continued steadily.E-readers are an example of a product in the _____ stage of the product life cycle.

Accepted Answer

E-readers are in the growth stage of the product life cycle, indicated by the introduction of additional companies into the market and steady sales after their successful introduction.

Question 9

In which stage of the product life cycle the company tries to promote demand for its new offering; inform the market about it; give free samples to entice consumers to make a trial purchase; and explain its features,uses,and benefits?

Accepted Answer

During the Introduction stage of the product life cycle, companies focus on building awareness for the new product, educating potential customers about its features, uses, and benefits, and often use strategies like free samples to encourage trial purchases. This stage is crucial for establishing a market presence and starting to build demand for the product.

Question 10

Which of the following is a reason why some companies skip test marketing?

Accepted Answer

Test marketing can alert competitors about a company's strategies.

Question 11

Which of these best describe the assortment of product lines and individual goods and services that a company offers to consumers and business users?

Accepted Answer

The product mix, also known as the product assortment, refers to the total variety of products that a company offers to its customers, encompassing all product lines and individual items.

Question 12

In a process called the _____,products pass through a series of stages from their initial appearance to their decline.

Accepted Answer

The correct term is "product life cycle," which describes the stages a product goes through from introduction to growth, maturity, and eventually decline.

Question 13

In which stage of the product life cycle do competitors enter the field with similar offerings?

Accepted Answer

During the growth stage, the success of the product attracts competitors who enter the market with similar offerings, aiming to capitalize on the increasing demand.

Question 14

Finau Inc.has been involved in intensive price competition with one of its products.Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item.This product has reached the _____ stage of the product life cycle.

Accepted Answer

The described scenario indicates that the product is in the decline stage of the product life cycle, characterized by reduced demand, increased competition, and lower profits, leading to potential losses.

Question 15

A product line is a group of _____ products marked by physical

Accepted Answer

A product line consists of related products that have physical similarities, indicating they belong to the same category or serve a similar purpose.

Question 16

Tech Toys,an electronic retailer's collection of high-tech gadgets and electronic equipment encompasses the company's

Accepted Answer

The correct term is "product mix," which refers to the total variety of products that a company offers to sell. In this context, Tech Toys' collection of high-tech gadgets and electronic equipment represents the range of different product types they offer, which is their product mix.

Question 17

BeamAll Corp.manufactures sunscreens with various sun protection factors,which constitutes the company's

Accepted Answer

The term "product line" refers to a group of related products under a single brand offered by the company, in this case, sunscreens with various sun protection factors.

Question 18

Vincent's car breaks down on the highway.He searches for car towing services on his smart phone and calls one for help.This is an example of a(n)

Accepted Answer

Car towing services are considered unsought products because consumers do not typically think about them until a need arises, such as a car breakdown.

Question 19

Kerry has been analyzing the competitive standings of one of her products.Since she began her operation,20 similar products have appeared,forcing her to change distribution strategies.Kerry has also changed pricing strategies in order to remain competitive.Sales volume has dipped,and she suspects sales of her product have reached a saturation level.This item is in which of the following stages of the product life cycle?

Accepted Answer

The description of the product facing increased competition, changing distribution and pricing strategies to remain competitive, and experiencing a dip in sales volume due to suspected market saturation indicates that the product is in the Maturity stage of the product life cycle. This stage is characterized by a peak in sales growth, market saturation, and intensified competition.

Question 20

Coke,Diet Coke,Cherry Coke,Coke Zero,and Coke with Lime constitute Coca Cola's _____ of soft drinks.

Accepted Answer

These are all variations of Coca-Cola's soft drink product, representing different flavors or formulations under the Coca-Cola brand, which collectively make up a product line.

Quiz 12: Product and Distribution Strategies