Q&A Hero

Q: Xerox pioneered the first portable fax machine. In 1980, the price was $12,700. Xerox used a(n) __________ pricing strategy to help recover its research and development costs. A. penetration B. cost-plus C. skimming D. target ROI E. above-market

Q: Gatorade successfully used a __________ strategy when it introduced a group of lower calorie options called Gatorade G2. A. subbranding B. multibranding C. mixed branding D. generic branding E. family branding

Q: All of the following are true about a skimming pricing strategy when used during the introduction stage of the product life cycle EXCEPT: A. it capitalizes on the price insensitivity of early buyers. B. its profit margins may be high. C. it encourages competitive entrants into the market. D. it recovers the R&D costs of the new offering. E. it helps build unit volume.

Q: Subbranding involves __________. A. having one firm manufacture a product and a second firm distribute it all under the same name B. changing a brand name of a product line extension product by making it "New and Improved!" C. combining a corporate brand with a new brand to distinguish a part of its product line from others D. creating a knock-off version of a product and changing the spelling of the name (chicken to "chikin" as in the case with Chick-Fil-A) E. using the same name for the original product and all subsequent product line and brand extensions

Q: 3M 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." A. penetration B. cost-plus C. ROI D. market-oriented E. skimming

Q: Combining a corporate or family brand with a new brand to distinguish a part of its product line from others is referred to as __________. A. subbranding B. multibranding C. mixed branding D. private branding E. family branding

Q: A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and to __________. A. capitalize on the price insensitivity of early buyers B. discourage competition from other manufacturers C. ease the product into its maturity stage D. gain the largest unit sales possible E. gain more distribution outlets

Q: Bayer Aspirin is sold in the original strength, in a safety-coated version, in an extra-strength version, and in a version designed especially for women. Bayer is using a __________ strategy. A. product item expansion B. subbranding C. product line extension D. co-branding E. brand extension

Q: During the introduction stage of the product life cycle, a(n) __________ pricing strategy may be used. This pricing strategy charges a high initial price to recoup the costs of product development. A. penetration B. cost-plus C. target ROI D. skimming E. above-market

Q: All of the following are true about product line extensions EXCEPT: A. this strategy can result in lower advertising and promotion costs. B. a risk that comes with product line extensions is that sales of an extension may come at the expense of other items in the company's product line. C. a product line extension raises the level of brand awareness. D. line extensions work best when they do not cause cannibalization. E. product line extensions involve using a current brand name to enter a different product class.

Q: The two most common pricing alternatives for products in the introduction stage of the product life cycle are __________ and __________. A. skimming pricing; penetration pricing B. price lining; product line pricing C. markdown pricing; quantity discount pricing D. skimming pricing; bundle pricing E. penetration pricing; experience curve pricing

Q: Which of the following statements about product line extensions is most accurate? A. A product line extension strategy typically leads to increased advertising costs compared with creating a new brand name. B. There are no risks associated with a product line extension strategy. C. When the Clorox Company joins with Kroger supermarkets to advertise Clorox products in a local newspaper, it is engaged in a product line extension. D. A product line extension is a form of multiproduct branding. E. A product line extension is a form of multibranding.

Q: During the introduction stage of the product life cycle, the place (distribution) element of the marketing mix is highly involved with __________. A. increasing inventory levels at warehouses and distribution centers to meet potential demand B. gaining distribution, even though many channel intermediaries will be reluctant to carry a new product C. using an intermodal logistics system to get the products through the marketing channel as quickly as possible D. building storage warehouses and distribution centers to establish an efficient infrastructure for the new product E. obtaining contracts with independent sales agents and brokers instead of using the firm's salesforce

Q: When a company sells a new product with the current brand name to enter a new market segment in its product class, it is using a __________ strategy. A. mixed branding B. brand extension C. co-branding D. family branding E. product line extension

Q: For years, when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland cranberry juice came on the market, claiming that it was superior to the Ocean Spray brand. Northland was creating __________ demand for its cranberry products. A. primary B. derived C. generic D. selective E. secondary

Q: When a company uses a product line extension, it A. markets a product under a new brand name so that consumers will view it as an entirely new product line. B. markets a new product with the current brand name to enter a new market segment in its product class. C. speeds up the movement of a product through its product life cycle. D. contracts with another firm to manufacture modified versions of the original products. E. applies the current brand name to enter a completely different product class.

Q: 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. A. primary B. selective C. derived D. generic E. secondary

Q: Every product manufactured by the maker of Slim-Fast carries the Slim-Fast brand name. This company uses __________. A. multibranding B. uniform branding C. co-branding D. corporate branding E. agent licensing

Q: The preference for a specific brand is called __________ demand. A. selective B. secondary C. primary D. derived E. generic

Q: Another name for multiproduct branding is __________. A. mixed branding B. uniform branding C. corporate branding D. co-branding E. agent licensing

Q: When the National Cattlemen's Beef Association developed the "Beef, It's What's for Dinner" advertising campaign, it was trying to stimulate __________ demand. A. selective B. generic C. derived D. primary E. secondary

Q: The Toro Company makes Toro snow blowers, Toro lawn mowers, Toro yard tools, and Toro sprinkler systems. The Toro Company uses a __________ branding strategy. A. multibranding B. family branding C. co-branding D. uniform branding E. mixed branding

Q: 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. A. selective B. primary C. derived D. generic E. secondary

Q: Another name for multiproduct branding is __________. A. family branding B. mixed branding C. uniform branding D. co-branding E. multibranding

Q: When the Egg Farmers of Canada implemented its "Get Cracking" advertising campaign, the organization was trying to stimulate __________ demand. A. secondary B. selective C. derived D. generic E. primary

Q: Which of the following is a multiproduct branding strategy? A. mixed branding B. product line extensions C. multibranding D. brand licensing E. private branding

Q: 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. A. selective B. primary C. derived D. generic E. secondary

Q: Multiproduct branding refers to a branding strategy __________. A. that involves giving each product a distinct name when each brand is intended for a different market segment B. that uses different brand names for the same product across multiple countries C. in which a company uses one name for all its products in a product class D. in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer E. in which a company uses a contractual agreement to allow someone else to use its brand name for a fee

Q: Promotional expenditures at the introduction stage of the product life cycle are best spent on __________. A. contests and sweepstakes to stimulate selective demand B. product samples to create secondary demand C. advertising to cultivate primary demand D. personal endorsements to generate word of mouth demand E. coupons to maintain brand loyalty or static demand

Q: A branding strategy in which a company uses one name for all its products in a product class is referred to as __________. A. global branding B. public branding C. multibranding D. brand licensing E. multiproduct branding

Q: Gillette spent $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. A. class B. form C. item D. mix E. concept

Q: Figure 10-6 Companies can employ several different branding strategies. In Figure 10-6 above, D represents a __________ strategy. A. retailer branding B. multiproduct branding C. multibranding D. private branding E. mixed branding

Q: Gillette spent $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. A. secondary demand B. introductory demand C. primary demand D. discretionary demand E. selective demand

Q: Figure 10-6 Companies can employ several different branding strategies. In Figure 10-6 above, C represents a __________ strategy. A. retailer branding B. multiproduct branding C. multibranding D. private branding E. mixed branding

Q: The desire for a product class rather than for a specific brand is called __________ demand. A. selective B. primary C. derived D. generic E. secondary

Q: Figure 10-6 Companies can employ several different branding strategies. In Figure 10-6 above, B represents a __________ strategy. A. retailer branding B. multiproduct branding C. multibranding D. private branding E. mixed branding

Q: The initial purchase of a product by a consumer is referred to as a(n) __________. A. product sampling B. first buy C. trial D. assessment E. examination period

Q: Figure 10-6 Companies can employ several different branding strategies. In Figure 10-6 above, Box A represents a __________ strategy. A. retailer branding B. multiproduct branding C. multibranding D. private branding E. mixed branding

Q: Over a decade ago, Survivor premiered as a nighttime 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? A. introduction B. growth C. maturity D. decline E. accelerated development

Q: Companies can employ four general branding strategies, which include: (1) multiproduct branding; (2) multibranding; (3) private branding; and (4) __________. A. retailer branding B. intermediary branding C. brand licensing D. mixed branding E. co-branding

Q: One type of product that is new to the market is the smart watch, capable of tracking physiological functions and communicating with other devices. According to the product life cycle framework, what marketing objective(s) should producers of smart watches primarily focus on currently? A. stress differentiation from other available watches B. maintain customer loyalty C. allow viewers to purchase in alternative channels D. gain awareness and stimulate trial E. target those with active lifestyles

Q: Companies can employ four general branding strategies, which include: (1) multiproduct branding; (2) multibranding; (3) __________; and (4) mixed branding. A. retailer branding B. intermediary branding C. private branding D. brand licensing E. co-branding

Q: Marketing for a product in the introduction stage of its product life cycle should focus primarily on gaining awareness and which other marketing objective? A. stress differentiation B. stimulate trial C. foster brand loyalty D. maximize distribution E. target a marketing niche

Q: Companies can employ four general branding strategies, which include: (1) multiproduct branding; (2) __________; (3) private branding; and (4) mixed branding. A. multibranding B. retailer branding C. intermediary branding D. brand licensing E. co-branding

Q: The marketing objective for a product in the __________ stage of the product life cycle is to create consumer awareness and stimulate trial. A. introduction B. growth C. maturity D. decline E. accelerated development

Q: Companies can employ four general branding strategies, which include: (1) __________; (2) multibranding; (3) private branding; or (4) and mixed branding. A. retailer branding B. intermediary branding C. brand licensing D. multiproduct branding E. co-branding

Q: The lack of profit in the introductory stage of the product life cycle is very often the result of __________. A. pricing the product too low in an attempt to quickly gain market share B. targeting the wrong target market segment C. a lack of wholesaler support D. the large investment costs in product development E. ineffective execution of the marketing program

Q: IKEA sells a portable workbench called the FAHRTFULL. The product has many positive features, and in German or Swedish markets, the name describes the product's features well (fahrt meaning travel). This brand name in the United States, however, may not be as effective due to __________. A. disappointment when the product fails to perform as the brand name implies B. the poor attempt at humor, which makes consumers question product quality C. governmental restrictions on brand names that read or sound like bodily functions D. its unfavorable phonetic and semantic associations in English E. difficulty in showing "fahrtfull" in German and Swedish advertising

Q: The __________ stage of the product life cycle occurs when a product is launched to its intended target market. A. concept B. introduction C. growth D. maturity E. decline

Q: 7Up is a lemon-lime carbonated soft drink that has been very successful in the United States. Dr. Pepper/Seven Up, Inc., the maker of 7Up, uses a family branding strategy to market 7Up worldwide. In China, sales have suffered since the brand name means "death through drinking." Which criterion for picking a good band name did Dr. Pepper/Seven Up, Inc. violate when it chose to use a family branding strategy to market 7Up in China? A. The name should have favorable phonetic and semantic associations in other languages. B. The name should be simple. C. The name should have no governmental restrictions. D. The name should suggest the product's benefits. E. The name should not be difficult to spell or pronounce.

Q: What is the marketing objective for the decline stage of the product life cycle? A. harvesting B. add outlets C. stress differentiation D. gain awareness E. maintain brand loyalty

Q: Kellogg's changed the name of its Heartwise cereal to Fiberwise most likely to __________. A. respond to a changing public interest from heart to intestinal health issues B. convey a stronger product image, since "heart" implied sentimentality and "fiber" implied strength C. comply with Food and Drug Administration guidelines on the use of the word "heart" in food brand names D. avoid a lawsuit by the makers of HeartPro Organic Cereal because they claimed the names and benefits were too similar E. complement its new line of breakfast fiber bars

Q: What is the marketing objective for the maturity stage of the product life cycle? A. begin deletion B. implement skimming C. stress differentiation D. gain awareness E. maintain brand loyalty

Q: A good brand name should suggest the product benefits; be memorable, distinctive and positive; fit the company or product image; be simple and emotional; __________; and have favorable phonetic and semantic associations in other languages. A. be humorous or mysterious B. have no legal or regulatory restrictions C. be easy to spell and pronounce D. contain no hidden meanings E. suggest an air of mystery

Q: What is the marketing objective for the growth stage of the product life cycle? A. minimize promotion B. increase market share C. stress differentiation D. gain awareness E. maintain brand loyalty

Q: When selecting a brand name, it should: (1) suggest product benefits; (2) be memorable, distinctive and positive; (3) fit the company or product image; (4) __________; (5) be simple and emotional; and (6) have favorable phonetic and semantic associations in other languages. A. never have a humorous connotation B. be easy to spell and pronounce C. be patented D. not be easily imitated E. have no legal or regulatory restrictions

Q: What is the marketing objective for the introduction stage of the product life cycle? A. harvesting B. market share C. stress differentiation D. maintain brand loyalty E. gain awareness

Q: In 1984, IBM launched the PCjr, its first low-priced, educational/home personal computer. Sales were poor because IBM most likely violated which criterion of picking a good brand name? A. The name was not distinctive nor memorable. B. The name did not fit the company image. C. The name had too many legal restrictions. D. The name was too confusing with both capital and lowercase letters. E. The name failed to suggest the product benefits.

Q: Figure 10-1 Figure 10-1 above represents the stages of the product life cycle. What does the curve labeled Y represent? A. total variable costs B. total fixed costs C. total industry profit D. total industry sales revenue E. total research and development costs

Q: A good brand name should: (1) suggest the product benefits; (2) be memorable, distinctive and positive; (3) __________; (4) have no legal or regulatory restrictions; (5) be simple and emotional; and (6) have favorable phonetic and semantic associations in other languages. A. never have a humorous connotation B. be easy to spell and pronounce C. fit the company or product image D. not be easily imitated E. be patented

Q: Figure 10-1 Figure 10-1 above represents the stages of the product life cycle. What does the curve labeled X represent? A. total variable costs B. total fixed costs C. total industry profit D. total industry sales revenue E. total research and development costs

Q: A good brand name should: (1) suggest the product benefits; (2) __________; (3) fit the company or product image; (4) have no legal or regulatory restrictions; (5) be simple and emotional; and (6) have favorable phonetic and semantic associations in other languages. A. never have a humorous connotation B. easy to spell and pronounce C. not be easily imitated D. be patented E. be memorable, distinctive, and positive

Q: Figure 10-1 Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled D represent? A. introduction B. deceleration C. maturity D. destabilization E. decline

Q: Which of the following products has the brand name that best suggests its benefit according to the six criteria for selecting a good brand name? A. Spam canned meat B. Ken's salad dressing C. Formula 409 cleaner D. Match Light charcoal E. Bayer aspirin

Q: Figure 10-1 Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled C represent? A. introduction B. maturity C. growth D. accelerated development E. decline

Q: The Make a Wish Foundation brand name is especially effective because it __________. A. is easy to spell and pronounce B. is not easily imitated C. suggests the service's benefits D. hints at a moral obligation E. is devoid of emotion

Q: Figure 10-1 Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled B represent? A. introduction B. accelerated development C. growth D. maturity E. progression

Q: A good brand name should: (1) __________; (2) be memorable, distinctive, and positive; (3) fit the company or product image; (4) have no legal or regulatory restrictions; (5) be simple and emotional; and (6) have favorable phonetic and semantic associations in other languages. A. never have a humorous connotation B. suggest the product benefits C. not be easily imitated D. be patented E. easy to spell and pronounce

Q: Figure 10-1 Figure 10-1 above represents the stages of the product life cycle. What does the portion of the curve labeled A represent? A. introduction B. maturity C. growth D. launch E. preparation

Q: Luxottica Photo Ralph Lauren has a long-term __________ agreement with Luxottica Group, S.p.A. of Milan for the design, production, and worldwide distribution of prescription frames and sunglasses under the Ralph Lauren brand. The agreement is an ideal fit for both companies. Ralph Lauren is a leader in the design, marketing, and distribution of premium lifestyle products, while Luxottica is the global leader in the premium and luxury eyewear sector. A. brand licensing B. generic branding C. multiproduct branding licensing D. mixed branding E. co-branding

Q: The product life cycle refers to __________. A. the average life span of a product B. a concept that describes the stages a new product goes through from product concept to commercialization C. a concept that describes the stages a product goes through in the marketplace - early growth, accelerated development, maturity, and decline D. a concept that describes the stages a product goes through in the marketplace - introduction, growth, maturity, and decline E. the amount of time it takes a product innovation to completely diffuse in the marketplace

Q: Kemps Dairy makes Life Savers Real Fruit Sherbet (with the flavors of a favorite childhood candy). Kemps Dairy pays Wrigley, the owner of the Life Savers brand name, a fee to market this product. This is an example of __________. A. generic branding B. reseller licensing C. mixed branding D. brand licensing E. co-branding

Q: A concept that describes the stages a product goes through in the marketplace - introduction, growth, maturity, and decline - is referred to as the __________. A. retail life cycle B. product life cycle C. marketing mix D. product growth cycle E. diffusion of product innovation

Q: Mattel has a contractual agreement to let Colgate use the Barbie name and image on kids' toothpaste and toothbrushes. Colgate pays Mattel a fee for the use of the Barbie name and image. This is an example of __________. A. brand licensing B. co-branding C. generic branding D. reseller licensing E. mixed branding

Q: The range of Gatorade offerings, from the traditional Gatorade Thirst Quencher to newly enhanced beverages conveying the attitude of a tough-love coach or personal trainer through in-your-face names on the label and nutrition benefits inside, are all examples of a company's commitment to __________ product improvement. A. dynamic B. discontinuous C. continuous D. symbiotic E. simultaneous

Q: Brand licensing refers to __________. 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 contractual agreement whereby a company allows another firm to use its brand name or trademark with its products or services for a royalty or fee E. a branding strategy in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer

Q: Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic bolt. According to the company, "G represents the heart, hustle, and soul of athleticism and will become a badge of pride for anyone who sweats, no matter where they're active." This is an example of __________ benefits of its packaging. A. perceptual B. functional C. communications D. physical E. tangible

Q: A contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee is referred to as __________. A. co-branding B. generic branding C. reseller licensing D. mixed branding E. brand licensing

Q: 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. A. multibranding B. family branding C. co-branding D. dual branding E. mixed branding

Q: Brand equity provides a financial advantage for a brand's owner because successful, established brand names have an economic value in the sense that they are __________. A. tangible assets B. intangible assets C. durable goods D. nondurable goods E. intangible equity