Question 1

Which of the following would be the best approach to use when managing a product life cycle?

Accepted Answer

Predicting the shape of the proposed product's cycle even before it is introduced allows for better planning and resource allocation throughout the product's life cycle.

Question 2

Most homeowners have experienced the problems associated with trimming or lopping branches that are in tight, hard-to-reach places. Fiskars has developed a Gooseneck Swivel Lopper, which features a unique 15-inch cutting shaft and completely eliminates that problem. It is the first such lopping tool in a market that has tremendous growth potential. The introduction of this new product gives Fiskars a:

Accepted Answer

The introduction of a unique and first-of-its-kind product, like the Gooseneck Swivel Lopper by Fiskars, provides the company with a first-mover advantage. This is because they are the first to market with this innovative solution, potentially allowing them to capture a significant market share before competitors can introduce similar products.

Question 3

In 1990s, Gekkeikan introduced sake in self-heating cans to the Japanese market. It was the first product of its type for Japanese consumers. Gekkeikan had a:

Accepted Answer

Gekkeikan had a first-mover advantage because it was the first company to introduce sake in self-heating cans to the Japanese market, giving it a competitive edge by being the initial provider of this innovative product type.

Question 4

The company that is the first to introduce a new type of product to market achieves a:

Accepted Answer

The company that introduces a new type of product to the market first achieves a pioneer advantage, as it can establish brand recognition and loyalty before competitors enter the market.

Question 5

Products like Campbell's soups have been around for decades. Now Campbell spends much of its advertising dollars on publishing recipes that use Campbell's soups as one of their main ingredients. This strategy suggests Campbell's soup is in the _____ stage of its product life cycle.

Accepted Answer

Campbell's focus on publishing recipes using their soups as a key ingredient indicates that the product is in the maturity stage of its product life cycle. This stage is characterized by efforts to differentiate the product and maintain interest in a market where the product is already well-established and facing competition.

Question 6

Fast-food restaurants, like McDonald's, are in the _____ stage of their product life cycle. Further evidence of this is McDonald's decision to open restaurants inside Wal-Mart stores.

Accepted Answer

Fast-food restaurants like McDonald's are in the maturity stage of their product life cycle, indicated by their widespread market presence and strategies to maintain market share, such as opening restaurants in high-traffic locations like Wal-Mart stores.

Question 7

Competition in the men's underwear industry is intense; sales are slow; and many manufacturers of men's underwear are using intensive distribution strategies and promotion strategies to increase brand loyalty. This statement indicates men's underwear is in the _____ stage of the product life cycle.

Accepted Answer

The statement indicates that the men's underwear industry is in the maturity stage of the product life cycle. This is characterized by intense competition, slow sales growth, and strategies aimed at maintaining market share and building brand loyalty, which are common in the maturity stage.

Question 8

The creation of a differential advantage is most important for the survival of products in the _____ stage of their product life cycle.

Accepted Answer

In the maturity stage of the product life cycle, competition is often intense, and creating a differential advantage (something that makes the product stand out from competitors) is crucial for a product's survival and continued profitability.

Question 9

People have been eating Hormel chili for years. Its ads suggest you can use Hormel chili to make burritos and tacos. This type of ad campaign indicates Hormel foods thinks chili is in the _____ stage of its product life cycle.

Accepted Answer

The ad campaign suggests Hormel chili is in the maturity stage of its product life cycle because it focuses on broadening the use of an established product rather than introducing or explaining it to new customers.

Question 10

AgfaPhoto, the struggling consumer imaging company, recently filed for bankruptcy. It is one of many companies that have fallen victim to the shift from traditional film to digital photography. The cause of the bankruptcy was the fact:

Accepted Answer

Traditional film photography is in the decline stage of its product life cycle, which has led to difficulties for companies like AgfaPhoto that were heavily invested in this technology. The shift towards digital photography has reduced the demand for traditional film, contributing to the financial struggles of companies unable to adapt.

Question 11

AgfaPhoto, a company in the traditional film photography business, recently filed for bankruptcy. AgfaPhoto is a division of Agfa-Gevaert Company. What should Agfa-Gavaert do with this division?

Accepted Answer

Given that AgfaPhoto, a division of Agfa-Gevaert, has filed for bankruptcy, this indicates significant financial and possibly market position struggles. In such a scenario, considering product abandonment (D) might be the most viable option to cut losses and potentially refocus resources on more profitable or promising areas of the business. Expanding distribution, increasing prices, increasing promotion, or creating technological obsolescence without addressing the underlying issues that led to bankruptcy could further drain resources without guaranteeing a turnaround.

Question 12

Which of the following is an unlikely management strategy to use for a product in the decline stage of its product life cycle?

Accepted Answer

Increasing the depth of the product line is unlikely in the decline stage because this stage typically involves reducing variations and focusing on the most profitable items, not expanding the product line.

Question 13

Product abandonment:

Accepted Answer

Product abandonment may be difficult for managers to implement due to emotional attachments, as they may have invested significant time and resources into the product.

Question 14

Technological obsolescence is generally considered to be:

Accepted Answer

The answer of Technological obsolescence is generally considered to be:
...

Question 15

AgfaPhoto, the struggling consumer imaging company, recently filed for bankruptcy. It is one of many companies that have fallen victim to the shift from traditional film to digital photography. The number of bankruptcies in this industry indicate that traditional film photography has experienced:

Accepted Answer

Technological obsolescence occurs when a product is no longer useful due to advancements in technology. The shift from traditional film to digital photography rendered traditional film photography obsolete, leading to the struggles of companies like AgfaPhoto.

Question 16

Surfwatch is the original filtering program recommended for parents to use to control Internet surfing habits by children. Surfwatch's developer is likely to continually strive for _____ and encourage parents to expect the company to develop more effective and easier-to-use blocking devices.

Accepted Answer

The answer of Surfwatch is the original filtering program recommended...

Question 17

Which of the following service providers will be most significantly affected by technological obsolescence?

Accepted Answer

An Internet service provider (ISP) is most significantly affected by technological obsolescence due to the rapid pace of change in technology related to internet infrastructure, speed, and services. ISPs must continuously update their technology to stay competitive and meet customer demands.

Question 18

Which of the following strategies is most likely to be used by furniture manufacturers such as Thomasville, Lane, Hickory White, and Baker to increase their replacement market?

Accepted Answer

Style obsolescence is a common strategy used by furniture manufacturers to encourage consumers to replace items before they are functionally obsolete. By changing designs and trends, manufacturers can make older styles seem outdated, prompting consumers to purchase new items to stay fashionable or up-to-date.

Question 19

Kofola is a Czech cola that was created during the communist era. Its sales collapsed after the fall of communism. Consumers perceived Coca-Cola to be "glamorously capitalistic." In other words, Kofola's sales were adversely influenced by its:

Accepted Answer

The answer of Kofola is a Czech cola that was...

Question 20

Which of the following products is most likely to be affected by style obsolescence?

Accepted Answer

Eye makeup is most likely to be affected by style obsolescence because fashion and beauty trends change rapidly, making previous styles of eye makeup less desirable or outdated.

Quiz 9: Product-Mix Strategies