Question 1

Competition enters rapidly in a _______ product life cycle.
A) high-learning
B) fashion
C) fad
D) low-learning

Accepted Answer

In a low-learning product life cycle, competition enters rapidly because the product is easy to understand and adopt, leading to quick market saturation.

Question 2

Which product life cycle has only two stages: introduction and decline?
A) High learning
B) Low learning
C) Fad
D) Fashion

Accepted Answer

A fad product typically has a very short life cycle with only two stages: introduction and decline, as it quickly gains popularity and then rapidly loses consumer interest.

Question 3

In health care, a major factor that affects life cycles is:
A) demographics.
B) technology.
C) reimbursement.
D) All of these are correct.

Accepted Answer

All of these factors—demographics, technology, and reimbursement—significantly impact the life cycles of healthcare services and products.

Question 4

Hospital-based sleep centers and many outpatient sleep centers were dramatically affected by externalities in the environment. The result was that many outpatient centers closed. What two factors affected the changes in these institutions' life cycles?
A) Reimbursement and demographics
B) Technology and physician resistance
C) Technology and reimbursement
D) Physician resistance and demographics

Accepted Answer

Technology and reimbursement are the two factors that affected the changes in these institutions' life cycles.

Question 5

A major criticism of the product life cycle concept has been that:
A) it is difficult to determine when to change strategy over the life cycle.
B) it is difficult to determine when one enters each stage.
C) the industry curve and product curve often intersect at different points.
D) there is no standard product life cycle curve.

Accepted Answer

The answer of A major criticism of the product life...

Question 6

In recent years, the greatest change in hospital revenues has been the increase occurring in revenue from:
A) outpatient services.
B) ancillary services.
C) inpatient services.
D) emergency services.

Accepted Answer

Outpatient services have seen significant growth due to advancements in medical technology, changes in healthcare delivery models, and a shift towards cost-effective care outside of traditional inpatient settings.

Question 7

Which of the following is not a way to stretch the product life cycle?
A) Market modification
B) Product modification
C) Market repositioning
D) Product repositioning

Accepted Answer

The answer of Which of the following is not a...

Question 8

When it is touted to "brush after every meal," this is an example of:
A) creating new users.
B) market modification.
C) product modification.
D) market enhancement.

Accepted Answer

This is an example of market modification, as it encourages existing users to increase the frequency of product usage, thereby expanding the market.

Question 9

Off-label use of a pharmaceutical product is an example of:
A) a high-learning product.
B) a shopping product.
C) a repositioning strategy.
D) market stretching.

Accepted Answer

The answer of Off-label use of a pharmaceutical product is...

Question 10

In terms of off-label use, Food and Drug Administration regulations:
A) allow for promotion of the off-label benefits.
B) prohibit promotion of the off-label benefits.
C) have not addressed the issue of off-label benefits.
D) allow companies to promote off-label benefits if they specifically state in the advertisements the drug was not tested for that specific condition.

Accepted Answer

The FDA prohibits pharmaceutical companies from promoting off-label uses of their drugs, although doctors may prescribe drugs for off-label uses.

Question 11

The Louisiana Heart Hospital focuses only on the care of heart-related diseases. This is an example of a:
A) niche strategy.
B) product-focused strategy.
C) selective-demand strategy.
D) key market strategy.

Accepted Answer

The Louisiana Heart Hospital focuses on a specific market segment (heart-related diseases), which is an example of a niche strategy.

Question 12

Focusing on a very narrow segment of the market is a definition of a:
A) selective strategy.
B) single-segment strategy.
C) niche strategy.
D) targeted strategy.

Accepted Answer

A niche strategy involves concentrating on a specific, narrow segment of the market to effectively meet the needs of that particular group.

Question 13

In order for a brand or service mark to have legal protection, it must have which of the following?
A) A clear registered trade or service mark that cannot be confused with those of others brands or services
B) At least three letters or symbols in its name
C) A visible logo that is used in signage and letterhead
D) A certificate showing that is registered in a state registry

Accepted Answer

For a brand or service mark to have legal protection, it must be distinctive and not confusingly similar to existing marks, which is typically established through registration.

Question 14

Brand equity is the:
A) worth of the brand in actual dollars in the marketplace.
B) total dollars a company spends in promoting its brand name.
C) equity a company has in its stock price.
D) association a consumer places with the organization's brand.

Accepted Answer

Brand equity refers to the value and perception that consumers associate with a brand, which can influence their purchasing decisions and loyalty.

Question 15

Which of the following is not one of the many advantages that have been cited of having a strong brand?
A) It aids in establishing a competitive advantage.
B) It allows an organization to establish a successful digital presence.
C) It can create a barrier to entry.
D) All of these are correct.

Accepted Answer

A strong brand aids in establishing a competitive advantage and can create a barrier to entry, but it does not inherently ensure a successful digital presence, which requires additional strategies and efforts.

Question 16

In following a house of brands strategy, it is of paramount importance to ensure that:
A) each brand has a distinct name.
B) the co-brands are of similar value.
C) there is consistency across the organization with regards to service and clinical quality.
D) the multibrand approach is understood throughout the organization.

Accepted Answer

The answer of In following a house of brands strategy,...

Question 17

The principal/agent notion is a central concept in health care because:
A) consumers pay physicians as agents to buy medical services for them, such as laboratory and radiology tests.
B) principals such as companies hire agents to help them contract with health systems.
C) a patient trusts a doctor to make the decisions for them.
D) a doctor trusts that the patient will follow their advice.

Accepted Answer

In the principal/agent relationship in healthcare, the patient (principal) trusts the doctor (agent) to make informed decisions on their behalf regarding their health care.

Question 18

A multispecialty clinic has established a surgical center, a rehab group, and a durable medical equipment company. All of these entities are under the name of the multispecialty practice. This branding strategy would be considered:
A) co-branding.
B) a multibrand.
C) a multiproduct.
D) a reseller.

Accepted Answer

This is a multiproduct branding strategy, where multiple related products or services are marketed under a single brand name.

Question 19

A hospital has decided to acquire practices throughout its primary and secondary service area. As it acquires each practice, it allows each group to retain the name of the group. However, under the practice's name, it places the name of the health system. This is an example of:
A) multiproduct branding.
B) co-branding.
C) multibranding.
D) mixed branding.

Accepted Answer

Co-branding is a marketing strategy in which two or more brands are used together in order to create a new product or service. In this case, the hospital is using its own brand name along with the brand names of the practices it acquires. This is an example of co-branding because the two brands are being used together to create a new product or service, which is the hospital's expanded network of practices.

Question 20

Using the same brand name across all the products or services in the organization's line is an example of which type of branding strategy?
A) Multibranding
B) Co-branding
C) Reseller
D) Multiproduct

Accepted Answer

Multibranding is a branding strategy in which a company uses different brand names for different products or services.

Quiz 9: Product Strategy

Competition enters rapidly in a _______ product life cycle.

Which product life cycle has only two stages: introduction and decline?

In health care, a major factor that affects life cycles is:

Hospital-based sleep centers and many outpatient sleep centers were dramatically affected by externalities in the environment. The result was that many outpatient centers closed. What two factors affected the changes in these institutions' life cycles?

A major criticism of the product life cycle concept has been that:

In recent years, the greatest change in hospital revenues has been the increase occurring in revenue from:

Which of the following is not a way to stretch the product life cycle?

When it is touted to "brush after every meal," this is an example of:

Off-label use of a pharmaceutical product is an example of:

In terms of off-label use, Food and Drug Administration regulations:

The Louisiana Heart Hospital focuses only on the care of heart-related diseases. This is an example of a:

Focusing on a very narrow segment of the market is a definition of a:

In order for a brand or service mark to have legal protection, it must have which of the following?

Brand equity is the:

Which of the following is not one of the many advantages that have been cited of having a strong brand?

In following a house of brands strategy, it is of paramount importance to ensure that:

The principal/agent notion is a central concept in health care because:

A multispecialty clinic has established a surgical center, a rehab group, and a durable medical equipment company. All of these entities are under the name of the multispecialty practice. This branding strategy would be considered:

A hospital has decided to acquire practices throughout its primary and secondary service area. As it acquires each practice, it allows each group to retain the name of the group. However, under the practice's name, it places the name of the health system. This is an example of:

Using the same brand name across all the products or services in the organization's line is an example of which type of branding strategy?