Question 1

Which of the following is inconsistent with a product in its decline stage?
A) Producers are beginning to leave the industry.
B) Prices begin to decline sharply.
C) Few changes occur in the product features.
D) Promotion activities are kept to a minimum.

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 2

Paul 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. Paul is working in which stage of new-product development?
A) Test marketing
B) Screening
C) Commercialization
D) Product development

Accepted Answer

Paul is working on the product development stage, which involves creating and testing prototypes and working with other departments to develop the final product.

Question 3

When Kroger's grocery store puts its own line of detergent on the shelf next to Tide, the store is promoting its _____ brand.
A) individual
B) private
C) manufacturer
D) family

Accepted Answer

Kroger's own line of detergent is a private brand, as it is owned and sold exclusively by Kroger and not available from any other manufacturer or retailer.

Question 4

Cell phones are an example of a product in the _____ stage.
A) growth
B) introductory
C) decline
D) maturity

Accepted Answer

Cell phones have been around for decades and have reached a point of maturity in the market. This means that sales have plateaued and most people who need a cell phone likely already have one. The industry is focused on incremental improvements and upgrades rather than radical innovations.

Question 5

A brand that has been given legal protection is known as a _____.
A) patent
B) copyright
C) trademark
D) royalty

Accepted Answer

A brand that has been given legal protection is called a trademark. A patent is used to protect an invention or idea, while a copyright protects original works of authorship. Royalty refers to the payment made to an owner of intellectual property for each use or sale of their property.

Question 6

Dole Food Company uses a(n) _____ brand to market the company's entire line of food products, including canned fruits, and packaged salads.
A) family
B) private
C) individual
D) distribution

Accepted Answer

Dole Food Company uses a family brand to market its entire line of food products, including canned fruits and packaged salads. A family brand is a marketing strategy that involves marketing all products under one brand name.

Question 7

Cooper 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.
A) growth
B) introductory
C) maturity
D) decline

Accepted Answer

The product has reached the decline stage of the product life cycle, where profits are low and the market is reducing. This indicates that the product has already passed the growth, introductory, and maturity stages.

Question 8

Meryl 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. Meryl 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?
A) Decline stage
B) Growth stage
C) Maturity stage
D) Introductory stage

Accepted Answer

The product is in the maturity stage of the product life cycle. The appearance of 20 similar products and the need to change distribution and pricing strategies indicate that the market for this product is becoming saturated. Sales volume has also dipped, which is a sign that the product has reached its peak and is no longer growing rapidly. In the maturity stage, companies focus on defending their market share and finding ways to maintain profitability, which is consistent with Meryl's situation.

Question 9

The new-product development stage that deals with the elimination of ideas that do not mesh with overall company objectives is _____.
A) screening
B) commercialization
C) testing
D) product development

Accepted Answer

Screening is the stage in the new-product development process that deals with the elimination of ideas that do not fit with overall company objectives. This stage helps to identify and filter out ideas that may not be feasible for the company, thereby saving time and resources in the later stages of development. Commercialization is the stage at which a product is launched into the market, and testing and product development are subsequent stages in the process.

Question 10

Which of the following is necessary for a brand to be effective?
A) It should be ambiguous.
B) It should be created with the use of jargon.
C) It should be easy to pronounce.
D) It should be a generic word.

Accepted Answer

For a brand to be effective, it should be easy to pronounce so that consumers can remember it easily and share it with others. Ambiguity, jargon, and generic words can create confusion and make it harder for consumers to remember the brand.

Question 11

Which of the following is a reason why some firms skip test marketing?
A) Test marketing can alert competitors about a company's strategies.
B) Test marketing is conducted only in selected regions.
C) Competitors can skew results by lowering prices or running special promotions.
D) Test marketing allows a company to determine the product's performance in full-scale production.

Accepted Answer

Test marketing can alert competitors about a company's strategies, potentially giving them an advantage in the market. Therefore, some firms may choose to skip test marketing to avoid such risks.

Question 12

Vanstone Inc., a retailer, sells apparels, snacks, and furnishing using its own label. This scenario depicts Vanstone's _____ brand.
A) manufacturer
B) individual
C) private
D) family

Accepted Answer

Vanstone Inc. sells products using their own label, which means they are using a private brand strategy. Private brands are owned and sold by a specific retailer or distributor, in this case, Vanstone Inc.

Question 13

While marketing a new wireless phone, Levine Corp. decided to skip the _____ stage of product development due to the expense of developing a limited production run, as well as concern over revealing product strategies to the competition.
A) concept development and business analysis
B) test marketing
C) product development
D) screening

Accepted Answer

Skipping the test marketing stage due to concerns over expense and revealing product strategies to competitors is a strategic decision. Test marketing involves releasing a limited number of products into the market to gather feedback before a wider launch. By skipping this stage, Levine Corp. is taking a risk but potentially saving costs and keeping their product strategies confidential. The other stages, concept development and business analysis, screening, and product development, may still be necessary before launching the product, but skipping test marketing is a specific decision that applies to this situation.

Question 14

Viola 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. Viola is in what stage of product development?
A) Test marketing
B) Product development
C) Screening
D) Commercialization

Accepted Answer

Viola is in the screening stage of product development, where she is evaluating and eliminating ideas that cannot be developed within the company's resources. Test marketing comes after product development and commercialization, and is a stage where a small sample of the target market is tested with the product. Product development is the stage where the idea is turned into a tangible product, and commercialization is the stage where the product is launched into the market.

Question 15

Advertising slogans, such as "Just Do It" or "Obey Your Thirst," are _____ that are given legal protection solely to the brand's owner.
A) catchphrases
B) registered phrases
C) brand names
D) trademarks

Accepted Answer

Advertising slogans are given legal protection as trademarks, which are exclusive rights granted to the brand's owner to use the slogan in commerce and prevent others from using similar marks that may cause confusion in the marketplace.

Question 16

Which of the following is a benefit of family branding?
A) Each product within the line is given a different name.
B) It builds competition within the firm.
C) Each brand markets to a unique target market.
D) When a new product is introduced, consumers and retailers recognize the brand name.

Accepted Answer

Family branding helps to create brand recognition and reputation among consumers and retailers. When a new product is introduced under the same brand, it can benefit from the established brand recognition and loyalty of existing products, which can lead to increased sales and reduced marketing costs. A, B, and C are incorrect because family branding involves using the same brand name for a line of related products, rather than giving each product a different name, promoting competition within the firm, or targeting unique markets for each brand.

Question 17

Procter & Gamble markets laundry soap with the brand names of Tide, Cheer, and Dash. Each brand targets a specific market segment. Procter & Gamble is using _____ branding.
A) individual
B) generic
C) family
D) private

Accepted Answer

Procter & Gamble is using individual branding strategy by giving each product a distinct name (Tide, Cheer, Dash) to target different market segments, rather than grouping them under a single brand name or selling them as generic products.

Question 18

The combination of industry saturation and intense competition indicates that a product has reached the _____ stage of its product life cycle.
A) growth
B) maturity
C) decline
D) early

Accepted Answer

The saturation of the market and intensity of competition suggest that the product has been on the market for a while and has already gone through the growth stage. Therefore, the product is now in the maturity stage of its product life cycle.

Question 19

Ruth is assessing a new product's potential sales and competitive strengths and will obtain initial consumer reaction before the product is sold. Ruth is in what stage of product development?
A) Commercialization
B) Test marketing
C) Concept development and business analysis
D) Screening

Accepted Answer

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

Question 20

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.
A) growth
B) introduction
C) maturity
D) decline

Accepted Answer

Sales have continued steadily, indicating that the product is still experiencing growth in the market, which is characteristic of the growth stage in the product life cycle.

Quiz 12: Product and Distribution Strategies

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

Paul 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. Paul is working in which stage of new-product development?

When Kroger's grocery store puts its own line of detergent on the shelf next to Tide, the store is promoting its _____ brand.

Cell phones are an example of a product in the _____ stage.

A brand that has been given legal protection is known as a _____.

Dole Food Company uses a(n) _____ brand to market the company's entire line of food products, including canned fruits, and packaged salads.

Cooper 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.

The new-product development stage that deals with the elimination of ideas that do not mesh with overall company objectives is _____.

Which of the following is necessary for a brand to be effective?

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

Vanstone Inc., a retailer, sells apparels, snacks, and furnishing using its own label. This scenario depicts Vanstone's _____ brand.

While marketing a new wireless phone, Levine Corp. decided to skip the _____ stage of product development due to the expense of developing a limited production run, as well as concern over revealing product strategies to the competition.

Viola 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. Viola is in what stage of product development?

Advertising slogans, such as "Just Do It" or "Obey Your Thirst," are _____ that are given legal protection solely to the brand's owner.

Which of the following is a benefit of family branding?

Procter & Gamble markets laundry soap with the brand names of Tide, Cheer, and Dash. Each brand targets a specific market segment. Procter & Gamble is using _____ branding.

The combination of industry saturation and intense competition indicates that a product has reached the _____ stage of its product life cycle.

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

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.