Ch11 Managing Successful Products, Services, And Test Bank

1.

Which of the following statements is most accurate? 
 

2.

Gatorade is classified as a(n) __________ brand. 
 

3.

Products such as Gatorade Xtremo, Gatorade X-Factor, and Gatorade Endurance Formula were introduced to appeal to 
 

4.

Which of the following statements regarding Gatorade's branding is most accurate? 
 

5.

To ________________ of Gatorade offerings from the traditional Gatorade Thirst Quencher, newly enhanced beverages convey the attitude of a tough-love coach or personal trainer through in-your-face names on the label and nutrition benefits inside. 
 

6.

Gatorade offers a range of product offerings. The firm uses one name for all its products in a product class. Gatorade is using a __________ strategy. 
 

7.

The launch by Gatorade of Gatorade Endurance Carb Energy Chews is evidence of 
 

8.

Gatorade's enhanced beverages and the creation of the G Series of products illustrate ___________________________ and masterful brand management in a dynamic marketplace. 
 

9.

A concept that describes the stages a product goes through in the marketplace—introduction, growth, maturity, and decline—is referred to as the 
 

10.

Product life cycle refers to 
 

11.

There are four stages of the product life cycle. What does the first stage of the product life cycle represent? 
 

12.

There are four stages of the product life cycle. What does the second stage of the product life cycle represent? 
 

13.

There are four stages of the product life cycle. What does the third stage of the product life cycle represent? 
 

14.

There are four stages of the product life cycle. What does the fourth stage of the product life cycle represent? 
 

15.

Usually two curves are shown in a figure that represents the stages of the product life cycle. The two curves shown represent total industry sales revenue and total industry profit. Typically what does the higher of the two curves represent? 
 

16.

Usually two curves are shown in a figure that represents the stages of the product life cycle. The two curves shown represent total industry sales revenue and total industry profit. Typically what does the lower of the two curves represent? 
 

17.

What is the marketing objective for the introduction stage of the product life cycle? 
 

18.

What is the marketing objective for the growth stage of the product life cycle? 
 

19.

What is the marketing objective for the maturity stage of the product life cycle? 
 

20.

What is the marketing objective for the decline stage of the product life cycle? 
 

21.

The __________ stage of the product life cycle occurs when a product is launched to its intended target market. 
 

22.

The lack of profit in the introductory stage of the product life cycle is very often the result of 
 

23.

The marketing objective for a product in the __________ stage of the product life cycle is to create consumer awareness and stimulate trial. 
 

24.

A product in the introduction stage of its product life cycle should have which of the following marketing objective(s)? 
 

25.

Millions of dollars were spent by Gillette to develop the Gillette Fusion razor shaving system. What was the marketing objective for the company at this stage of the product life cycle? 
 

26.

Over a decade ago, Survivor premiered as a night-time reality TV show during the summer season when TV ratings are normally low and TV viewing options consisted primarily of reruns. The marketing goals for the first show included making television viewers aware of its existence and generating enough excitement about the show so that millions of viewers would watch the first episode. Based on this description, the TV show was in what stage of its product life cycle? 
 

27.

The initial purchase of a product by a consumer is referred to as 
 

28.

The desire for a product class rather than for a specific brand is called __________ demand. 
 

29.

Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate __________, the desire for the product class, rather than for a specific brand, when there are few competitors with the same product. 
 

30.

Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate primary demand, or desire for the product __________, rather than for a specific brand, when there are few competitors with the same product. 
 

31.

Promotional expenditures at the introduction stage of the product life cycle are best spent on 
 

32.

During the introduction stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for an entire product class rather than for a specific brand. The consumer demand that is stimulated is referred to as __________ demand. 
 

33.

When the Egg Farmers of Canada implemented its "Get Cracking" advertising campaign, the organization was trying to stimulate __________ demand. 
 

34.

When the Floral Council, a trade association of flower shop retailers, advertises that giving flowers is a thoughtful and appreciated gift for any occasion, it is trying to stimulate __________ demand. 
 

35.

When the National Cattlemen's Beef Association developed the "Beef, It's What's for Dinner" advertising campaign, it was trying to stimulate __________ demand. 
 

36.

The preference for a specific brand is called __________ demand. 
 

37.

As more competitors launch their own products and the product progresses along its life cycle, company attention is focused on creating __________ demand, or the preference for a specific brand. 
 

38.

For years, when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland-branded cranberry juice came on the market, claiming that it was superior to the Ocean Spray brand. Northland was creating __________ demand. 
 

39.

During the introduction stage of the product life cycle, the place (distribution) element of the marketing mix is highly involved with 
 

40.

The two most common pricing alternatives for products in the introduction stage of the product life cycle are 
 

41.

During the introduction stage of the product life cycle, __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development. 
 

42.

A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and/or to 
 

43.

The 3M Co. is a master of the __________ pricing strategy. According to a 3M manager, "We hit fast, price high, and get the heck out when the me-too products pour in." 
 

44.

All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle except 
 

45.

Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox used __________ pricing strategy to help recover its research and development costs. 
 

46.

During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price for a new product is referred to as __________ pricing. 
 

47.

Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases the components for the items, which are then sent to small assembly factories in Shenzhen, located in southern China. These smartphones retail for about $65, significantly less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Xunrui Communications most likely is using which pricing strategy in this example? 
 

48.

Which of the following statements about the introduction stage of the product life cycle is most accurate? 
 

49.

All electric-powered automobiles such as the Chevy Spark are in which stage of their product life cycle? 
 

50.

All electric-powered automobiles such as the Tesla Motors Model S are in which stage of its product life cycle? 
 

51.

The 3D OLED (organic light-emitting diode) HDTVs, such as the 55-inch model from LG Electronics that in 2015 cost about $10,000, were in which stage of their product life cycle? 
 

52.

LED (light-emitting diode) bulbs, such as the Cree LED bulb, have been available for only a few years in low lighting levels (lumens). They are designed to replace incandescent and compact fluorescent lightbulbs, in part because of a federal law that phases out incandescent lightbulbs in favor of more energy-efficient ones. LED bulbs will last up to 20 years. In what stage of the product life cycle is this product? 
 

53.

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they must be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of the following would be the least sound marketing program decision? 
 

54.

The __________ stage of the product life cycle is characterized by rapid increases in sales. 
 

55.

The __________ stage of the product life cycle is characterized by the appearance of competitors. 
 

56.

Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors? 
 

57.

At which stage in the product life cycle do industry profits usually peak? 
 

58.

Which of the following is a characteristic of the growth stage of the product life cycle? 
 

59.

People who tried a product, were satisfied, and bought it again are called __________ purchasers. 
 

60.

For the Gillette Fusion razor, over 60 percent of men who tried the razor adopted the product permanently. These men are known as __________ purchasers. 
 

61.

During the __________ stage of the product life cycle, product proliferation occurs to help differentiate a company's brand from competitors. 
 

62.

Changes in the product characteristically take place in the __________ stage of the product life cycle. 
 

63.

To help differentiate a company's brand from competitors, an improved version is created or new features are added to the original design, and product proliferation occurs in the __________ stage of the product life cycle. 
 

64.

In which stage of the product life cycle is it important to broaden distribution of the product? 
 

65.

Which of the following is a characteristic of the growth stage of the product life cycle? 
 

66.

Which of the following is a characteristic of the growth stage of the product life cycle? 
 

67.

Which of the following is an example of a product in the growth stage of the product life cycle? 
 

68.

Electric automobiles like the Chevrolet Spark made by General Motors are in the introductory stage of the product life cycle. By comparison, smartphones such as the Apple iPhone 6 are in the _____________ of the product life cycle. 
 

69.

The __________ stage of the product life cycle is characterized by the slowing of total industry sales or product class revenue, causing marginal competitors to begin leaving the market. 
 

70.

Which stage in the product life cycle is characterized by a slowing of total industry sales or product class revenue? 
 

71.

In which stage of the product life cycle do marginal competitors begin to leave the market? 
 

72.

When most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it, what stage of the product life cycle is the product in? 
 

73.

During the maturity stage of the product life cycle, profit declines primarily because 
 

74.

Promotional expenses at the maturity stage of the product life cycle are often designed to 
 

75.

Which of the following statements regarding the maturity stage of the product life cycle is most accurate? 
 

76.

Which of the following statements regarding the maturity stage of the product life cycle is most accurate? 
 

77.

At which stage of the product life cycle is a company likely to have its most complete product line? 
 

78.

Which of the following is an example of a product in the maturity stage of the product life cycle? 
 

79.

Sales exhibit a downward trend throughout which stage of the product life cycle? 
 

80.

Which of the following occurs during the decline stage of the product life cycle? 
 

81.

Which of the following statements about the decline stage of the product life cycle is most accurate? 
 

82.

Industry analysts estimate that the number of e-mail mailboxes worldwide will grow to __________ by 2018. 
 

83.

In terms of its effect on faxing, e-mail has 
 

84.

Products tend to consume a disproportionate share of management and financial resources relative to their future worth throughout which stage of the product life cycle? 
 

85.

Which of the following is an example of a product in the decline stage of the product life cycle? 
 

86.

Analog televisions are in which stage of their product life cycle according to the textbook? 
 

87.

In the late 1950s and 1960s, television westerns were extremely popular. These adventure shows had settings and costumes that were very unlike other shows of that time (comedy, variety, crime, etc.). Popular programs included Gunsmoke, Bonanza, Wagon Train, The Big Valley, etc. When ratings declined as viewers gradually stopped watching this TV genre, production companies found the networks no longer wanted to produce and televise such shows. The television western was a product category that had entered the __________ stage of its product life cycle. 
 

88.

Your product has been suffering from steadily eroding sales. You have tried a number of options to revitalize the product's sales and profits, but after seven changes in your strategy, you have yet to find success. Which of the following actions would be the least appropriate next step? 
 

89.

To handle products in the decline stage of the product life cycle, companies often use either a __________ strategy or a __________ strategy. 
 

90.

A strategy of dropping a product from the product line during the decline stage of the product life cycle is referred to as 
 

91.

Even though Liquid Paper correction fluid is in the __________ stage of its product life cycle, Sanford, its manufacturer, has not deleted it from its line because there is still a residual core of consumers who use the product. 
 

92.

In the late 1950s and 1960s, television westerns were extremely popular. These adventure shows had settings and costumes that were very unlike other shows of that time (comedy, variety, crime, etc.). Popular programs included Gunsmoke, Bonanza, Wagon Train, The Big Valley etc. When ratings declined as viewers gradually stopped watching this TV genre, production companies found the networks no longer wanted to buy and televise such shows. The production companies used a(n) __________ strategy and stopped production on all television westerns when the networks stopped showing them. 
 

93.

When a company retains a product but reduces marketing costs, it is referred to as 
 

94.

When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion—dropping it from a firm's product line. The other is called __________, which retains the product in the product line but reduces marketing costs. 
 

95.

A strategy of harvesting may be employed in the decline stage of a product life to 
 

96.

Three important aspects of product life cycles are: (1) their length, (2) the shape of their sales curves, and (3) the rate at which 
 

97.

Generally, the average length of time it takes for a product category to move from the introduction stage to the decline stage of its product life cycle is 
 

98.

There is no set time that a product takes to move through its life cycle. But, as a rule, 
 

99.

All of the following are true about the length of product life cycles except 
 

100.

A product life cycle for which significant customer education is required and there is an extended introductory period is an example of a __________ product. 
 

101.

A product life cycle for which little customer education is required and there is a very short introductory period is an example of a __________ product. 
 

102.

A ____________ product is a style of the times. 
 

103.

A product life cycle for which the product experiences rapid sales on introduction and then an equally rapid decline is an example of a __________ product. 
 

104.

A __________ product is one for which significant customer education is required and there is an extended introductory period. 
 

105.

Which of the following products would have a high-learning product life cycle curve? 
 

106.

Interactive television with video-on-demand capabilities changes how people watch television and how consumers access the Internet. This technology requires significant customer education for most people. What type of product life cycle curve would be associated with this product? 
 

107.

A __________ product requires little learning by the consumer, and the benefits of the purchase are readily understood. 
 

108.

Which of the following products would have a low-learning product life cycle curve? 
 

109.

A product life cycle that results from products that are easily imitated by competitors, whose benefits are readily understood by consumers, and for which the appropriate marketing strategy is to broaden distribution quickly is typical for __________ products. 
 

110.

A __________ product is a style of the times. 
 

111.

Which of the following products would have a fashion product life cycle curve? 
 

112.

Products that are introduced, decline, and seem to return are characteristic of the __________ type of product life cycle. 
 

113.

Products that experience rapid sales on introduction and then an equally rapid decline are called __________ products. 
 

114.

Which type of product has equally rapid introduction and decline stages of the product life cycle? 
 

115.

Which of the following products would have a fad product life-cycle curve? 
 

116.

Some singers sing a great song that shoots to the top of the charts. The singers then go on tour and have sold-out concerts everywhere they appear. Just as quickly (particularly if they are unable to follow their first hit song with a second one), they are singing in half-filled concert halls, then smaller clubs, and eventually no one wants to hear them perform. Such "one-hit wonder" singers are best categorized as being __________ products (or services). 
 

117.

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than the rechargeable batteries currently available. These solar batteries can be recharged by sunlight up to five times, after which they are to be discarded. Unfortunately, the production process cannot be patented, so competitors could enter the market within a year. Which of the following is the best description of the product life cycle of this product? 
 

118.

The entire product category or industry is referred to as 
 

119.

Product form refers to 
 

120.

Product form refers to 
 

121.

Prerecorded music an example of a __________, and digital music downloading and streaming are an example of a __________. 
 

122.

Greeting cards are an example of a __________ while Valentine cards are an example of a __________. 
 

123.

Vinyl records, cassette tapes, CDs, and music downloads (MP3 files) are all members of the same 
 

124.

If a figure that depicts years and retail sales of digital music shows from 2007 to 2015 the sales were rising rapidly, this indicates that in 2007 digital music was in which stage of the product life cycle? 
 

125.

The life cycle of a product depends on sales to 
 

126.

When a product spreads through the population, it is called the 
 

127.

The key idea behind diffusion of innovation is that 
 

128.

The classifications of innovators, early adopters, early majority, late majority, and laggards are all based upon 
 

129.

The largest numbers of product adopters with respect to the diffusion of innovation are found among 
 

130.

The consumers represented in the early stage of a product life cycle are called 
 

131.

For any product to be successful, it must be purchased by 
 

132.

In terms of the diffusion of innovation, innovators account for __________ percent of product adopters. 
 

133.

As product adopters, innovators 
 

134.

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are venturesome, higher educated, and use multiple information sources are called __________ product adopters. 
 

135.

When Apple introduced the Apple II personal computer in 1977, industry analysts predicted that very few would be sold. However, a short time after the product was made available, consumers who were young, highly educated, adventuresome, and well-informed began buying them. While those buyers were relatively few in number, marketers such as IBM and Compaq were encouraged because other, less adventuresome consumers, like businesspeople, would likely adopt personal computers later. Based on the diffusion of innovation concept, those first buyers of personal computers were 
 

136.

In terms of the diffusion of innovation, early adopters account for __________ percent of product adopters. 
 

137.

In terms of new product purchases, early adopters 
 

138.

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are leaders in social settings and have slightly above average education are called 
 

139.

In terms of the diffusion of innovation, early majority accounts for __________ percent of product adopters. 
 

140.

As product adopters, members of the early majority 
 

141.

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are deliberate adopters with many informal social contacts are called 
 

142.

In terms of the diffusion of innovation, late majority accounts for __________ percent of product adopters. 
 

143.

As product adopters, members of the late majority 
 

144.

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are skeptical and with below average social status are called 
 

145.

In terms of the diffusion of innovation, laggards account for __________ percent of product adopters. 
 

146.

As product adopters, laggards 
 

147.

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who have a fear of debt and depend on neighbors and friends as their information sources are called __________ product adopters. 
 

148.

All of the following are barriers to the adoption of new products except 
 

149.

There are several reasons a consumer might be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a usage barrier, which occurs when 
 

150.

If a customer is reluctant to try a new product because he'd have to change his normal everyday behaviors, the company is most likely facing a __________ barrier. 
 

151.

Which of the following quotes from a new-product adopter would signal the need for a firm to counteract a usage barrier? 
 

152.

A new exercise video contends that with one day of fasting and a one-hour period of intense cardiovascular exercise, the average individual can lose five pounds a week and be in peak health within six months of starting the program. __________ barriers could doom the new product to failure because the product's claims are not consistent with how consumers think and behave. 
 

153.

Several factors explain why a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a value barrier, which occurs when 
 

154.

Imagine that Post Foods introduces a cereal bar—Trail Mix Crunch—just like those Kellogg's and General Mills already have on the market. Post has decided to promote the bars using ads without coupons and to price the bars at about the same price as these other brands. Post Trail Mix Crunch cereal bars will also be distributed to the same stores as the products from Kellogg's and General Mills. Which of the following barriers to new-product adoption will most likely prevent the Post Trail Mix Crunch cereal bars from being a successful product? 
 

155.

Which of the following quotes from a new-product adopter would signal the need for a firm to counteract a value barrier? 
 

156.

If a customer is reluctant to try a new product because she's afraid it might make her ill, the company is most likely facing __________ barrier. 
 

157.

There are several reasons a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a risk barrier, which occurs when 
 

158.

Which of the following quotes from a new-product adopter would signal the need for a firm to counteract a risk barrier? 
 

159.

There are several reasons a consumer would be reluctant to adopt a new product. For example, a consumer might be reluctant to adopt a new product because of a psychological barrier, which occurs when 
 

160.

There are several reasons a consumer would be reluctant to purchase a new product. For example, a consumer might be reluctant to adopt a new product because of a psychological barrier, which occurs when 
 

161.

Which of the following quotes from a new-product adopter would signal the need for a firm to counteract a psychological barrier? 
 

162.

All of the following marketing actions can be used by a firm to counteract barriers to product adoption except 
 

163.

Warranties, money-back guarantees, extensive usage instructions, demonstrations, and free samples are all ways in which companies attempt to overcome barriers to product adoption during the __________ stage of a product's life cycle. 
 

164.

Warranties, money-back guarantees, extensive usage instructions, demonstrations, and free samples are all ways in which companies 
 

165.

Seventy-one percent of consumers consider __________ to be the best way to evaluate a new product. 
 

166.

One of the most popular means to gain consumer trial is through 
 

167.

Free samples are one of the most popular means to gain consumer trial. In fact, most consumers consider a sample to 
 

168.

A manufacturer of a new all-natural-ingredient shampoo and conditioner puts free samples of the product in Sunday newspapers to 
 

169.

A product manager is sometimes called a 
 

170.

Consumer packaged goods firms such as General Mills and PepsiCo as well as industrial firms such as Intel and Hewlett-Packard employ a product manager to manage 
 

171.

All of the following are responsibilities of a product or brand manager except 
 

172.

Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. One of these indexes is the CDI, or 
 

173.

Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. One of these indexes is the BDI, or 
 

174.

Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. The two indexes, CDI and BDI, stand for 
 

175.

Managers often use two special indexes to help identify strong and weak market segments in order to provide direction for marketing efforts. The two indexes focus on 
 

176.

If a firm's marketing dashboard displays a CDI over 100 for a consumer packaged good, such as General Mills' Warm Delights Minis, this indicates which of the following?