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Multiple Choice Quiz
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1
The stage of the product life cycle when a product is first commercialized to its intended target market is called the __________stage.
A)growth
B)commercialization
C)launch
D)introduction
E)awareness-trial
2
The popular "Got Milk" advertising campaign is sponsored by the National Milk Board to encourage more people to drink milk. This ad campaign stimulates __________demand.
A)selective
B)primary
C)derived
D)generic
E)secondary
3
The growth stage of the product life cycle is characterized by:
A)rapid increases in sales and the appearance of competitors.
B)a gradual increase in sales and the largest single appearance of competitors.
C)a gradual leveling off of sales and the appearance of a few strong competitors.
D)a rapid decline in profits and product units as competition becomes fiercer.
E)a leveling off of sales and a gradual loss of competitors as products get positioned in consumers' minds.
4
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)primary
5
Tums, which has long been used for reducing heartburn, is now being promoted as a source of calcium for the prevention of osteoporosis. Its manufacturer is primarily 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 characteristics
E)making no real changes at all.
6
Which of the following statements is most accurate?
A)Repositioning a product by reducing or eliminating product value is counter intuitive.
B)It is important to avoid the urge to reposition a product just to "catch a rising trend" or react to changes competitors suddenly make to their products.
C)In repositioning the goal is to increase usage within your original target market rather than incurring additional expenses trying to find a new market segment.
D)The most common strategy of repositioning is to rebrand the same product to a younger audience.
E)Product repositioning may change the value offered to consumers relative to competitive products by adding or deleting features.
7
Michelin, Bridgestone, and Goodyear have developed a "run-flat" tire that can travel up to 50 miles at 55 miles per hour after suffering total air loss. This is an example of:
A)adding product features but reducing the price.
B)adding product features and using higher quality product materials.
C)reducing product features and using lower quality product materials.
D)decreasing the number of features and quality and lowering the price of a product.
E)downsizing.
8
The swoosh that appears on every Nike product is an example of a:
A)copyright.
B)trade name.
C)service mark.
D)brand name.
E)generic brand.
9
Packaging that provides convenience, product quality, protection, or storage offers what kind of benefits?
A)communication benefits
B)physiological benefits
C)functional benefits
D)perceptual benefits
E)financial benefits
10
Many service businesses use off-peak pricing, which consists of charging different prices during different times of the day or days of the week to reflect:
A)variations in costs of delivering service.
B)variations in demand for the service.
C)deviations from standard profit policies.
D)holidays and other special promotional events.
E)government regulations that may apply.







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