Multiple Choice Quiz


1	The marketing objective for a product in the _____ stage of the product life cycle (PLC) is to promote consumer awareness and gain trial.
		A)	introduction
		B)	growth
		C)	maturity
		D)	decline
		E)	product repositioning


2	Consumers who are frequently on the Internet more than likely use either Internet Explorer or Netscape as their Web browser. Opera is another Web browser that is fast, highly customizable, and not widely used because its maker needs to create _____ demand.
		A)	secondary
		B)	primary
		C)	selective
		D)	derived
		E)	generic


3	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 a pair of alkaline batteries can be purchased for $2, you should suspect that INGenius ATG was using a _____ strategy.
		A)	penetration pricing
		B)	cost-plus pricing
		C)	ROI pricing.
		D)	market-oriented pricing
		E)	skimming pricing


4	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.
		A)	penetration pricing
		B)	cost-plus pricing
		C)	ROI pricing
		D)	market-oriented pricing
		E)	skimming pricing


5	Jell-O was invented in 1897. It is a widely recognized product. To keep customers buying the flavored gelatin, Jell-O has introduced a variety of different flavors. During the 1990s, it introduced Jigglers. Its use of product differentiation indicates that Jell-O is in the _____ stage of its product life cycle.
		A)	introduction
		B)	growth
		C)	maturity
		D)	decline
		E)	harvesting


6	Promotional activities during the maturity stage of the product life cycle are often designed to:
		A)	create demand for the product class.
		B)	remind repeat purchasers.
		C)	create primary demand.
		D)	gain new distributors.
		E)	eliminate distribution channels.


7	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.


8	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:
		A)	initiators.
		B)	early adopters.
		C)	early majority.
		D)	late majority.
		E)	laggards.


9	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:
		A)	product modification.
		B)	product repositioning.
		C)	consumer modification.
		D)	market-product extension.
		E)	divestment.


10	______ is a strategy for managing a product's life cycle that attempts to increase a product's use among existing customers, create new use situations, or find new customers.
		A)	Market modification
		B)	Product modification
		C)	Product repositioning
		D)	Market-product strategy
		E)	Diversification


11	Kmart stores 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:
		A)	top-down marketing.
		B)	trading up.
		C)	bottom-up marketing.
		D)	trading down.
		E)	game-playing.


12	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:
		A)	copyright.
		B)	express warranty.
		C)	functional benefits.
		D)	brand personality.
		E)	service mark.


13	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.


14	Licensing is:
		A)	the registration fee paid by a manufacturer to states, provinces, or countries in order to sell its products there.
		B)	a branding strategy in which the producer dictates the brand name to retailers for the products sold to their respective markets.
		C)	a branding strategy in which a company uses one name for all of its products.
		D)	a branding strategy in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer.
		E)	a contractual agreement whereby a company allows another firm to use its brand name, patent, trade secret, or other product for a royalty or fee.


15	Another name for multiproduct branding is:
		A)	co-branding.
		B)	dual branding.
		C)	mixed branding.
		D)	multibranding.
		E)	blanket branding.


16	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:
		A)	brand extension.
		B)	sub-branding.
		C)	line extension.
		D)	co-branding.
		E)	multibranding.


17	Combining a family brand with a new brand is called:
		A)	subbranding.
		B)	multiproduct branding.
		C)	mixed branding.
		D)	generic branding.
		E)	family branding.


18	Lay's potato chips flavored with KC Masterpiece barbecue sauce is an example of:
		A)	private branding.
		B)	generic branding.
		C)	co-branding.
		D)	mixed branding.
		E)	multiproduct branding.


19	A strategy where a product is given no identifying name, only a description of contents is called:
		A)	multibranding.
		B)	generic branding.
		C)	private branding.
		D)	mixed branding.
		E)	multiproduct branding.


20	Which of the following statements about packaging is true?
		A)	A recent trend is to emphasize the health and safety concerns of packaging.
		B)	A recent trend is to discover new ways packaging can be used to appeal to an aging population.
		C)	Packaging provides consumers, retailers and manufacturers with social, promotional, and trade benefits.
		D)	The impression that packaging creates in the consumer's mind is an example of a social benefit.
		E)	All of the above statements about packaging are true.

2003 McGraw-Hill Higher Education
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2003 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.