 |
1 | |
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. |
| | C) | high taxes. |
| | D) | large investment costs in product development. |
| | E) | ineffective execution of the marketing program. |
|
|
2 | |
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? |
| | A) | rip off |
| | B) | chiseling |
| | C) | opportunistic |
| | D) | skimming |
| | E) | caveat emptor |
|
|
3 | |
The videocassette recorder (VCR) was introduced to the market in the late 1970s. Ninety-one percent of American homes own at least one VCR. To maintain market share in the VCR market and to get customers to purchase additional VCRs, its manufacturers have continually provided for higher-quality recording capabilities and made the machines easier to watch and with different features that allowed for quicker location of recorded programs. Because the goal of VCR manufacturers is to maintain brand loyalty and market share, the product category is in the __________ stage of its product life cycle. |
| | A) | introduction |
| | B) | growth |
| | C) | maturity |
| | D) | decline |
| | E) | harvesting |
|
|
4 | |
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 |
| | C) | an SUV |
| | D) | women's leather sandals |
| | E) | toys from the latest Disney movie |
|
|
5 | |
An extended introduction stage of the product life cycle occurs for which type of product? |
| | A) | high learning |
| | B) | low learning |
| | C) | fashion |
| | D) | fad |
| | E) | revolutionary |
|
|
6 | |
As product adopters, innovators typically: |
| | A) | fear debt and use neighbors and friends as information sources. |
| | B) | are skeptical 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. |
|
|
7 | |
Major American car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit. Car manufacturers are using which of the following market modification strategies? |
| | A) | finding new users |
| | B) | creating new use situations |
| | C) | increasing use by existing customers |
| | D) | modifying the product |
| | E) | reacting to competitors' position |
|
|
8 | |
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 Georgia Guy, Girl Guides' manager of 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? |
| | A) | deletion |
| | B) | repositioning |
| | C) | market penetration |
| | D) | market development |
| | E) | harvesting |
|
|
9 | |
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) | top-down marketing. |
| | B) | trading up. |
| | C) | bottom-up marketing. |
| | D) | game-playing. |
| | E) | downsizing. |
|
|
10 | |
Brand equity: |
| | 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. |
|
|
11 | |
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. |
|
|
12 | |
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 product benefits. |
|
|
13 | |
If both sales and profits are declining for a product, the manufacturer has two choices of appropriate 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 |
|
|
14 | |
Anne and Bob Stevens want to package mixes for bean soups and rice pilafs 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. |
|
|
15 | |
The Clorox Company manufactures and markets bleaches, bathroom cleaners, disinfecting wipes, and stain removers under the Clorox brand. This is an example of: |
| | A) | umbrella branding. |
| | B) | co-branding. |
| | C) | family branding. |
| | D) | subbranding. |
| | E) | branding duality. |
|
|
16 | |
The Clorox Company also sells three different brands of charcoal. Kingsford is a well-established brand that has strong brand loyalty. BBQ Bag was specifically designed for today's grilling. Match Light appeals to those who want coals that are easy to light. For its charcoal line, Clorox uses a __________ strategy. |
| | A) | family branding |
| | B) | blanket branding |
| | C) | co-branding |
| | D) | multiproduct branding |
| | E) | multibranding |
|
|
17 | |
Ritz crackers also makes Ritz bits, and several other flavors of crackers, all under the Ritz name. This is an example of: |
| | A) | generic branding. |
| | B) | co-branding. |
| | C) | mixed branding. |
| | D) | multiproduct branding. |
| | E) | none of the above strategies |
|
|
18 | |
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 give the idea 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. |
|
|
19 | |
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. |
|
|
20 | |
Setting different prices during different times of the day or days of the week to reflect variations in demand for the service is called: |
| | A) | off-peak pricing. |
| | B) | idle production capacity pricing. |
| | C) | customer contact audit pricing. |
| | D) | differential value pricing. |
| | E) | capacity inventory pricing. |
|