Lack of profit in the introductory stage of the product life cycle is very often the result of:
|A)||insufficient allocation of resources to the marketing mix.|
|B)||poor selection of distribution channels.|
|D)||large investment costs in product development.|
|E)||ineffective execution of the marketing program.|
When Texas Instruments (TI) introduced its pocket calculator it was a tremendous product innovation, and TI set the mail order price at $495. What is the name of the pricing strategy Texas Instruments used?
During the __________ stage, companies will likely not invest in adverting.
|E)||none of the above|
Which of the following is likely to have the longest life cycle?
|A)||ThermalPrene gloves that protect hands from intermittent contact with objects up to 400 degrees F|
|B)||a computer program for calculating individual and household income tax|
|D)||women's leather sandals|
|E)||toys from the latest Disney movie|
A ___________ product is usually accompanied by an extended introduction stage of the product life cycle.
As product adopters, innovators typically:
|A)||fear debt and use neighbours and friends as information sources.|
|B)||are sceptical and have below average social status.|
|C)||act with deliberation and use many informal social contacts.|
|D)||are leaders in social standing and have slightly above average education when compared to the other adopter classes.|
|E)||are venturesome, better educated than other product adopters, and use multiple information sources.|
Major car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit. Car manufacturers are using which market modification strategy.
|A)||finding new users|
|B)||creating new use situations|
|C)||increasing use by existing customers|
|D)||modifying the product|
|E)||reacting to competitors' position|
In 2001, The Girl Guides, a Canadian institution for more than 90 years, realized it was in trouble. "We were the largest invisible girls' organization in Canada," says a spokesperson for the organization's external relations. Which of the following strategies should it use to move itself from its current image of geekiness to an image of fun, friendship, and adventure?
Since the creation of the Hershey candy bar over 100 years ago, the price of chocolate has fluctuated, but the price of the candy bar has slowly risen. In fact, when the price of chocolate had dramatic price fluctuations over a three-year period, the price of a Hershey's candy bar remained the same. When the price of chocolate was very high, Hershey's was able to maintain its profits by making the bars smaller. Hershey's engaged in:
|A)||is defined as the added value a brand name gives to a product beyond the functional benefits provided.|
|B)||is closely related to the concept of trading up.|
|C)||typically does not provide a competitive advantage for a product.|
|D)||typically has no influence on the price consumers are willing to pay for a brand.|
|E)||is accurately defined by all of the above.|
Brand equity arises from a sequential building process. The first step in the process is to:
|A)||establish a brand's meaning in the minds of consumers.|
|B)||create a deep psychological bond between the consumer and the brand.|
|C)||separate the functional and the psychological benefits of the brand.|
|D)||implement a trading up strategy.|
|E)||develop positive brand awareness.|
Imagine the President of Black Stoves, Inc., is thinking about developing a new brand name for the company's line of wood stoves with catalytic converters. The stove because of its design also conserves wood because it burns slowly. The brand name he is considering is The Fast One. Why is this brand name choice NOT the best one?
|A)||The name should be distinctive and memorable.|
|B)||The name should fit the company image.|
|C)||The name should have no legal restrictions.|
|D)||The name should be simple.|
|E)||The name should suggest the particular product benefits.|
If both sales and profits are declining for a product, the manufacturer has two strategies to deal with this situation. They are:
|A)||franchising and harvesting|
|B)||trading up and deletion|
|C)||harvesting and deletion|
|D)||licensing and franchising|
|E)||trading down and deletion|
Anne and Bob Stevens want to package mixes for bean soups and rice pilaffs to sell at their local farmer's market and to one day sell to a larger market. In selecting the brand name for their mixes, they chose The Bean Counter mixes. In terms of the characteristics of good brand names, this brand name is a:
|A)||poor choice because it is too specific.|
|B)||poor choice because it is too simple.|
|C)||poor choice because it does not suggest the product benefits.|
|D)||good choice because it fits the company image.|
|E)||good choice because it can be readily used in global markets.|
The Clorox Company manufactures and markets bleaches, bathroom cleaners, disinfecting wipes, and stain removers under the Clorox brand. This is an example of:
Packaging provides various advantages for consumers including:
|D)||All of the above|
|E)||None of the above|
When a manufacturer uses one brand name for all the products they produce, it is using a ___________ branding strategy.
Which of the following statements about packaging is true?
|A)||Packaging can have brand equity benefits for the company.|
|B)||Consumer protection is an important function of packaging.|
|C)||Packaging can provide the perception of status, economy, and product quality.|
|D)||Packaging can be used to extend shelf life.|
|E)||All of the above statements about packaging are true.|
In services, pricing plays two major roles. The two roles are to affect consumer perceptions and to:
|A)||be used in capacity management.|
|B)||increase the number of service encounters.|
|C)||maintain a socially responsible objective.|
|D)||determine competitors' reactions proactively.|
|E)||eliminate service gaps.|
Setting different prices during different times of the day or days of the week to reflect variations in demand for the service is called:
|B)||idle production capacity pricing.|
|C)||customer contact audit pricing.|
|D)||differential value pricing.|
|E)||capacity inventory pricing.|
The marketing objective for a product in the __________ stage of the product life cycle (PLC) is to promote consumer awareness and gain trial.
The marketing objective for a product in the __________ stage of the product life cycle (PLC) is to hold on to market share.
INGenius ATG introduced the microware oven-sized battery recycler in 1999. It was intended for the business market. Companies could buy the recycler and use it to restore alkaline batteries that are not normally recharged. The recycling does not let a battery live forever; but it does give it a charge of about 80 percent of the energy it originally had. Depending on the size of the battery, the recycler can hold up to 96 batteries. It takes 13 hours to recharge any battery. The recycler was introduced at $3,000. When you consider that the R & D to develop this product was quite high, you should suspect that INGenius ATG was using a __________ strategy.
Upon introduction, Sony priced Playstation 2 at $299-this amount is close to what it costs to produce the video game console. This low price would indicate that Sony was using a __________ strategy.
Jell-O was invented in 1897. It is a widely recognized product. To keep customers buying the flavoured gelatine, Jell-O has introduced a variety of different flavours. During the 1990s, it introduced Jigglers. Its use of product differentiation indicates that Jell-O is in the __________ stage of its product life cycle.
Promotional activities during the maturity stage of the product life cycle are often directed towards:
|A)||creating demand for the product class.|
|B)||reminding repeat purchasers.|
|C)||creating primary demand.|
|D)||gaining new distributors.|
|E)||eliminating distribution channels.|
There is no exact time that a product takes to move through its life cycle. As a rule:
|A)||fad products have the longest lifecycle.|
|B)||consumer products have shorter life cycles than business products.|
|C)||packaged goods have a shorter life cycle than fads.|
|D)||installations have a shorter life cycle than consumer products.|
|E)||intangibility shortens the product life cycle.|
All of the following are categories of consumers based on when they purchase a new product, the information sources they use, and their risk-taking orientation EXCEPT:
When H&R Block began offering its customers an instant tax refund (actually a short-term loan) along with filling out and filing their tax returns, it was an example of a:
___________ is a strategy used when a company tries to find new customers, increase a product's use among existing customers, or create new use situations.
Zellers hoped to add perceived value to the store's merchandise by adding the Martha Stewart product line, which is perceived as being of a higher quality. This product line addition was an example of:
The Girl Guides has been an institution in Canada for more than 90 years. It used marketing research to determine why its membership was declining. Research confirmed theories that Girl Guides had an outdated image, and there was no surprise when some survey respondents called the organization "militaristic" and "geeky." However the organization didn't expect focus groups to use words like "solitary" and "lonely" to describe the worldwide sisterhood that stresses just the opposite: friendship and teambuilding. The Girl Guides of Canada had a problem with its:
Which of the following statements about brand equity is true?
|A)||Brand equity is the added value a given brand name gives to a product beyond the functional benefits provided.|
|B)||Brand equity provides a brand with a competitive advantage.|
|C)||Consumers are often willing to pay a higher price for a product with brand equity.|
|D)||Brand equity is carefully crafted and nurtured by marketing programs.|
|E)||All of the above statements about brand equity are true.|
Kraft foods sells products under the Kraft, Jell-o, Oreo, Maxwell House, and DiGiorno brands. Which type of branding strategy is this?
GE sells everything from light bulbs, to appliances to airplane engines under the GE brand employs a _______ branding strategy.
When Keebler introduced its snack-size packages of mini cookies, it continued to use the Keebler name-just like it did on all of its cookies. Keebler uses:
President's choice is a good example of a ______________ brand.
Many combined Harvey's and Wendy's restaurants have been built across the nation and especially alongside the Trans Canada highway. Which aspect of the product component of the marketing mix will be particularly helpful to travelers looking for a place to eat?
|C)||brand name and identifying logo|
|E)||all of the above|
A strategy where a product is given no identifying name, only a description of contents is called:
Packaging provides convenience, protection and storage. The previous statement reflects the _____________ benefits of packaging.
|E)||all of the above types of benefits|