Question 1

​Kenmore is a well-known brand of appliances sold exclusively by Sears.Kenmore is best described as a(n)____ brand.
A)​Manufacturer's
B)​Generic
C)​Captive
D)​Individual
E)​Equity

Accepted Answer

Kenmore is a captive brand, meaning it is sold exclusively by Sears and cannot be found at other retailers.

Question 2

Responding to moviegoers' recently renewed interest in the 3D format,Panasonic introduced the world's first 3D home entertainment system.This strategy used by Panasonic is an example of a _____.
A)market engagement strategy
B)market simulation strategy
C)product development strategy
D)product association strategy

Accepted Answer

The strategy used by Panasonic is a product development strategy, as they have introduced a new product (the 3D home entertainment system) in response to a trend in the market (renewed interest in 3D).

Question 3

A new product committee is a group in an organization that:
A)helps the organization in identifying a suitable partner for a join venture.
B)looks after all the legal aspects of the organization when it launches a new product in the market.
C)coordinates and integrates the work of the firm's functional departments on a specific project.
D)reviews and approves new-product plans that arise elsewhere in the organization.

Accepted Answer

A new product committee is responsible for reviewing and approving new-product plans that arise elsewhere in the organization. The committee ensures that the new product aligns with the company's goals and objectives, and evaluates the feasibility of the proposed product to determine if it is worth the investment. The committee may also provide guidance and feedback on the development and launch of the new product. Therefore, option D is the best choice.

Question 4

A company introduced a new low calorie version of one of its popular cold drinks.As a result,the sales of the original cold drink started decreasing because consumers preferred its low calorie version.This situation is known as:
A)product encroachment.
B)product centralization.
C)cannibalization.
D)polarization.

Accepted Answer

Cannibalization occurs when the sales of an existing product decrease due to the introduction of a new product within the same company's brand portfolio. In this case, the low calorie version of the cold drink has cannibalized the sales of the original version. Product encroachment refers to a situation where an outside company enters the market with a similar product and captures some of the existing company's market share. Product centralization and polarization are not relevant in this context.

Question 5

The truck manufacturer for which Bonita works is being sued because the brakes in several new trucks have failed and the trucks are being recalled.What is the manufacturer responsible for?​
A)​better product test marketing
B)​concise screening process
C)​new-product departments
D)​product liability
E)​product interest

Accepted Answer

The manufacturer is responsible for product liability, which involves ensuring that their products are safe and reliable for customers to use. This includes properly testing and screening products before they are released to the market. If a product is found to be unsafe or defective, the manufacturer may face legal consequences, such as a recall, lawsuit, or fines.

Question 6

Jose is an avid runner and is training for his first marathon.He has several different brands of running shoes but his favorites are Asics because they are lightweight and also support his feet.He's going to purchase another pair for his training and decides that from now on,he will only purchase the Asics brand.Which level of brand loyalty is best described by this example?​
A)​brand insistence
B)​brand recognition
C)​brand persistence
D)​brand preference

Accepted Answer

Brand insistence is the highest level of brand loyalty where the customer will only purchase one particular brand and will not even consider any other alternatives. Jose's decision to only purchase Asics for his training shoes indicates brand insistence.

Question 7

​Marilyn is a grandmother to 3 and lives in Oklahoma City.She still uses her DVD player but her grand kids are wanting to watch shows on Netflix when they visit her house.She does have high speed Internet access but does not yet have a Netflix account.However,she plans to subscribe to Netflix in the next several weeks.Netflix has over 40 million paid subscribers in the United States representing approximately 30% of total United States households.Netflix continues to add several million subscribers every quarter.Which category of "adopter" would best describe Marilyn?
A)​early majority
B)​consumer innovator
C)​early adopter
D)​laggard

Accepted Answer

Marilyn is not an early adopter or consumer innovator because she has not yet adopted Netflix. She is not a laggard because she plans to adopt Netflix in the next several weeks. Therefore, she is best described as an early majority adopter.

Question 8

Annie's Inc.,which produces vinegar for cooking purposes,identified new uses for its product and started promoting it as a fabric softener and a cleansing product.The company started selling the same product in different packages modified for different types of uses.This strategy used by Annie's to increase the sales of its product is an example of a _____ strategy.
A)brand extension
B)line engagement
C)market penetration
D)product diversification

Accepted Answer

Market penetration strategy involves selling more of the same product to the existing market by finding new uses for the product, which is what Annie's Inc. is doing by promoting vinegar for new uses like fabric softening and cleansing.

Question 9

The Gillette Company is a leader in the market for razors/blades/shaving systems for men and women.Its product development history goes back to the introduction of the first safety razor.Since then,it has regularly led the market in introducing products to meet the needs of its customers.The following list outlines some of its major product introductions: ​safety razor
Twin-bladed razor
Twin-bladed disposable razor
Pivoting-head razor
Pivoting-head disposable razor
Razor designed specifically for women
Triple-blade razor
Battery-powered razor
Gillette's introduction of the twin-bladed disposable razor would be considered which of the following:
A)​new product
B)​line extension
C)​brand licensing
D)​universal product code (UPC)
E)​trade dress

Accepted Answer

The introduction of the twin-bladed disposable razor is a line extension because it builds upon the existing product line of razors and blades for men and women. It is not a completely new product category, brand licensing, universal product code or trade dress.

Question 10

​Aldi is a chain of discount supermarkets based in Germany.The company has recently started opening stores across the United States.Based on this information,the product development strategy being pursued by Aldi is known as a _______ strategy.
A)​Market penetration
B)​Market development
C)​Product penetration
D)​Product development
E)​Diversification

Accepted Answer

Aldi's strategy of opening stores in a new market, in this case the United States, is known as a market development strategy. The company is expanding into new geographic areas to increase its customer base and sales revenue.

Question 11

Dayer's,a popular ice cream brand,added new flavors to its existing line of ice creams to attract kids.This is an example of _____.
A)brand extension
B)line extension
C)brand engagement
D)line engagement

Accepted Answer

Dayer's has extended its line of ice creams by adding new flavors. Brand extension refers to the introduction of a new product under the same brand name, while brand engagement and line engagement are not relevant to the scenario given.

Question 12

Individuals who purchase new products almost as soon as these products reach the market are called _____.
A)late adopters
B)laggards
C)consumer innovators
D)hesitant buyers

Accepted Answer

Consumer innovators are the individuals who purchase new products almost as soon as these products reach the market. Late adopters are the individuals who wait for a product to be tried and tested before purchasing it. Laggards are individuals who are highly resistant to change and may never adopt a new product. Hesitant buyers are individuals who may want to purchase a new product but may be hesitant due to factors such as price or uncertainty about its effectiveness.

Question 13

Which of the following is a benefit of high levels of brand equity as discussed in the textbook?​
A)​consumers are willing to pay more for the company's products
B)​reduced levels of costs to produce the products
C)​easy access to sources of private equity
D)​reduced levels of government regulation

Accepted Answer

High levels of brand equity often result in consumers being willing to pay more for the company's products, leading to increased revenue and profits for the company. This is because consumers perceive the brand as having high quality and value, and are therefore willing to pay a premium for it.

Question 14

The ______ is a powerful regulatory agency that has assumed jurisdiction over the safety of every consumer product except food,automobiles,and a few other products regulated by other agencies.
A)DHSS
B)FDA
C)CPSC
D)OSHA

Accepted Answer

The CPSC (Consumer Product Safety Commission) has jurisdiction over the safety of every consumer product except for automobiles, food, and a few other products regulated by other agencies. The DHSS (Department of Health and Human Services) and FDA (Food and Drug Administration) both play important roles in regulating food and drugs, while OSHA (Occupational Safety and Health Administration) focuses on workplace safety.

Question 15

A _____ is a brand for which the owner claims exclusive legal protection.
A)water mark
B)field symbol
C)trademark
D)category code

Accepted Answer

A trademark is a brand or symbol that is legally protected from use by others. A watermark is a design or image that is visible when paper is held up to light or viewed at an angle, often used as a security measure on important documents. A field symbol is a term used in computer programming to refer to a variable that holds specific data. A category code is a system used to group items or products by specific characteristics or attributes.

Question 16

The Gillette Company has a long history of developing shaving-related products for men and women.In addition,it continuously produces products that feature improvements to existing technologies,including three-bladed disposable razors and ergonomically superior handle designs. ​
​To maintain its success in new product development,Gillette regularly organizes several small focus groups comprising people who shave in order to gain insights into what these individuals look for in a razor/blades/shaving system.At which step of the new-product development process is Gillette when it conducts these focus groups?
A)​idea generation step
B)​commercialization step
C)​development step
D)​business analysis step
E)​screening step

Accepted Answer

The answer of The Gillette Company has a long history...

Question 17

Apex Corp.has been manufacturing furniture for past several years.Now in order to grow its business,the company has decided to manufacture curtains and bed sheets.The strategy being used by the company to target new markets is referred to as a _____.
A)product association strategy
B)market simulation strategy
C)market engagement strategy
D)product diversification strategy

Accepted Answer

Product diversification strategy involves a company entering into new markets with new products in order to increase its revenue and customer base. In this case, Apex Corp. is entering into the market of curtains and bed sheets, which are different products than their usual furniture.

Question 18

During which of the following stages of a new-product development process,ideas with commercial potential are separated from those not meeting company objectives?
A)Idea generation
B)Business analysis
C)Screening
D)Test marketing

Accepted Answer

During the screening stage, ideas with commercial potential are separated from those that do not meet the company's objectives. In this stage, preliminary screening is done to evaluate each idea based on its feasibility, compatibility, profitability, and market potential. Thus, the most feasible and profitable ideas are selected for further development.

Question 19

More than 90 percent of cereal is consumed at breakfast,but ads for Kellogg's Cracklin' Oat Bran say that it tastes like oatmeal cookies and makes "a great snack anytime." Kellogg's is implementing a strategy of _____ with this product.
A)market penetration
B)market development
C)product development
D)product diversification

Accepted Answer

The answer of More than 90 percent of cereal is...

Question 20

Marcia's company is at the commercialization stage of new product development.Before company executives move forward with this stage,what advice can you give them?​
A)​Focus on the cannibalization of existing products.
B)​Focus on the promotional mix rather than the distribution mix.
C)​The marketing mix should be planned before the selection of the target market.
D)​The launch date should coincide with a good economic situation to maximize sales.
E)​Target only opinion leaders because they are the ones who will spend the most money on the product.

Accepted Answer

The launch date of a new product is crucial for its success. Launching during a good economic situation can maximize sales as consumers are more likely to have disposable income to spend on new products. This strategic timing can significantly impact the product's initial uptake and long-term success in the market.

Quiz 13: Developing and Managing Brand and Product Categories

Kenmore is a well-known brand of appliances sold exclusively by Sears.Kenmore is best described as a(n) ____ brand.

Responding to moviegoers' recently renewed interest in the 3D format,Panasonic introduced the world's first 3D home entertainment system.This strategy used by Panasonic is an example of a _____.

A new product committee is a group in an organization that:

A company introduced a new low calorie version of one of its popular cold drinks.As a result,the sales of the original cold drink started decreasing because consumers preferred its low calorie version.This situation is known as:

The truck manufacturer for which Bonita works is being sued because the brakes in several new trucks have failed and the trucks are being recalled.What is the manufacturer responsible for?

Aldi is a chain of discount supermarkets based in Germany.The company has recently started opening stores across the United States.Based on this information,the product development strategy being pursued by Aldi is known as a _______ strategy.

Dayer's,a popular ice cream brand,added new flavors to its existing line of ice creams to attract kids.This is an example of _____.

Individuals who purchase new products almost as soon as these products reach the market are called _____.

Which of the following is a benefit of high levels of brand equity as discussed in the textbook?

The ______ is a powerful regulatory agency that has assumed jurisdiction over the safety of every consumer product except food,automobiles,and a few other products regulated by other agencies.

A _____ is a brand for which the owner claims exclusive legal protection.

Apex Corp.has been manufacturing furniture for past several years.Now in order to grow its business,the company has decided to manufacture curtains and bed sheets.The strategy being used by the company to target new markets is referred to as a _____.

During which of the following stages of a new-product development process,ideas with commercial potential are separated from those not meeting company objectives?

More than 90 percent of cereal is consumed at breakfast,but ads for Kellogg's Cracklin' Oat Bran say that it tastes like oatmeal cookies and makes "a great snack anytime." Kellogg's is implementing a strategy of _____ with this product.

Marcia's company is at the commercialization stage of new product development.Before company executives move forward with this stage,what advice can you give them?