Q&A Hero

Q: In response to Duracell's introduction of the Duracell Ultra battery, Energizer introduced an Advanced Formula battery. But unlike Duracell, Energizer priced its batteries at a low initial price to attract the mass market. In this case, Energizer used A. penetration pricing. B. prestige pricing. C. skimming pricing. D. price lining. E. cost-plus fixed-fee pricing.

Q: Flexible Pricing Chart Consider the flexible pricing chart above, which shows the results of a National Bureau of Economic Research study of 750,000 car purchases. The data indicate that some groups of car buyers, on average, paid roughly $105, $423, and $483 respectively for a new car in the $21,000 range than the typical purchaser. Who are the car buyers in column A? A. women B. the elderly C. Hispanics D. African Americans E. Asian Americans

Q: A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world, costing over $1.75 million. This is an example of a __________ strategy. A. penetration pricing B. target pricing C. bundle pricing D. loss leader pricing E. prestige pricing

Q: When buying a car, __________ may result in discriminatory practices. A. dual pricing B. a one-price policy C. a flexible-price policy D. target return-on-sales pricing E. no-haggle pricing

Q: You can buy a General Electric dishwasher for $399 or you can buy a similar Bosch brand dishwasher for $989. Since Bosch uses its pricing strategy to project a high-quality product image, it is most likely using __________ pricing. A. bundle B. standard markup C. prestige D. penetration E. cost plus fixed-fee

Q: A brand name refers to __________. A. a product's identifier that only can be spoken B. a product's identifier that consists of only the symbol or design that cannot be spoken C. any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's products or services D. the commercial, legal name under which a company does business E. the identification of an organization's products based upon individual SKUs

Q: Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's products or services is referred to as a __________. A. brand name B. copyright C. trade name D. trade mark E. label

Q: The term branding refers to __________. A. the licensing of a name, phrase, design, symbol, or combination of these for a period of 17 years, at which time a firm may renew its intellectual property rights to them B. the value added to the product from the additional features given to a product beyond its functional attributes C. the identification of an organization's products based upon individual SKUs D. an organization's use of a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors E. the establishment of a commercial, legal name under which a company does business

Q: An organization's use of a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors is referred to as __________. A. a label B. branding C. a trademark D. a brand name E. a trade name

Q: Which of the following barriers does downsizing try to combat when consumers will adopt a new product or repurchase an existing one? A. risk barriers B. usage barriers C. feature bloat barriers D. psychological barriers E. value barriers

Q: Consumer advocates believe the practice of downsizing by consumer products firms has resulted in __________. A. lower product prices for consumers because of lower labor, raw material, and packaging costs B. a greener environment due to the reduction in the amount of packaging, thereby reducing the amount of waste disposed in landfills C. fewer product choices for consumers that led to rising prices D. keeping prices from rising in response to the psychological barriers consumers have developed for downsized products E. a subtle, deceptive, yet legal practice of disguising a price increase

Q: Georgia-Pacific reduced the content of its Brawny paper towel six-roll pack by 20 percent without lowering the price. Georgia-Pacific used a(n) __________ strategy. A. outsourcing B. trading up C. shrinkage D. downsizing E. product modification

Q: Downsizing reduces the __________. A. quality of materials without changing the price B. product's price along with the quality of the materials C. package content without changing its size while maintaining or increasing the package price D. number of product features E. number of product items in a product line

Q: Reducing the package content without changing package size while maintaining or increasing the package price is referred to as __________. A. outsourcing B. trading up C. shrinkage D. upsizing E. downsizing

Q: Trading down refers to __________ when repositioning a product. A. reducing the number of features, qualities, or price B. reducing the amount of product carried as inventory C. reducing the number of product items in a product line D. redirecting marketing resources from a cash cow target market to one that is not performing as well in the hopes of increasing sales and profits E. encouraging consumers through the use of coupons and deals to purchase a firm's lower-priced products

Q: Reducing the number of features, qualities, or price when repositioning a product is referred to as __________. A. product paring B. down trading C. product deflation D. trading down E. product simplification

Q: The strategy of trading down involves __________. A. adding product features but using lower quality product materials B. reducing product features and but using higher quality product materials or ingredients C. reducing the number of features, quality, or price of a product D. seeking a less price-sensitive target market E. changing to a mass merchandiser retailer like Walmart or Target

Q: Ralston Purina advertises with the following slogan: "Your Pet, Our Passion - Premium Pet Food by Purina." The firm now offers high quality, super-premium cat and dog food based on formulations that promote life stage nutrition. This line is an example of __________. A. rebranding B. trading up C. trading down D. trend setting E. product branding

Q: Adding value to the product (or line) through additional features or higher-quality materials is referred to as __________. A. trading up B. trading down C. product enhancement D. product extension E. quality infusement

Q: Trading up refers to __________. A. adding product features but reducing the price B. changing the distribution channel members to higher-service-quality retailers C. adding value to the product (or line) through additional features or higher-quality materials D. reallocating marketing resources from a performing-poorly target market to one that demonstrates greater potential for future growth E. offering consumers a discount when they purchase a more expensive version of the product

Q: Pretzels were first introduced as a salty snack. Later, the product was repositioned as a low-fat snack in order to __________. A. respond to a competitor's head-to-head positioning strategy B. reach a new market C. catch a rising trend D. change the value offered E. change its target audience

Q: An aging baby boomer population has led to increased interest in developing and marketing products to satisfy the needs of this large market. As a result, moisturizing lotions and creams like Oil of Olay are now repositioned as age-defying products. This is an example of which product repositioning action? A. reaching a new market B. reacting to a competitor's position C. trading up D. changing the value offered E. product modification

Q: Proctor and Gamble repositioned its Old Spice anti-perspirant brand from a deodorant your grandfather might use to a strong, hip anti-perspirant through commercials that showed the target market of 18- to 30-year-old men advocating its use. P&G used this product repositioning strategy with its Old Spice brand anti-perspirant to __________. A. react to a competitor's position B. catch a rising trend C. change the value offered D. diversify its product portfolio E. reach a new market

Q: In its recent "You're not you when you're hungry - Snickers satisfies" TV ad campaign, Mars, the maker of the Snickers candy bar, attempted to reposition Snickers from a sugary dessert-like food to a snack food that can satisfy one's immediate feeling of hunger. Mars used this product repositioning strategy with its Snickers brand to __________. A. react to a competitor's position B. catch a rising trend C. reach a new target market segment D. change the value offered to its customers E. implement a global strategy

Q: Johnson & Johnson effectively repositioned St. Joseph Aspirin as a product for infants to an adult low-strength aspirin to reduce the risk of heart attacks or strokes. This is an example of a product repositioning by __________. A. reacting to a competitor's position B. reaching a new market C. catching a rising trend D. changing the value offered E. product modification

Q: Johnson & Johnson effectively __________ St. Joseph Aspirin from a product for infants to one targeted at adults who may need a low-strength aspirin designed to reduce the risk of heart attacks or strokes. A. reinvented B. resurrected C. reconfigured D. repositioned E. realigned

Q: New Coke was repositioned as a slightly sweeter, less filling soft drink because the Coca-Cola Company discovered that its 1984 market share in supermarkets was 2 percent behind Pepsi. This product repositioning strategy was designed to __________. A. reach a new market B. catch a rising trend C. change the value offered D. change its target audience E. react to a competitor's position

Q: New Balance, Inc. successfully repositioned its athletic shoes to focus on fit, durability, and comfort rather than on going head-on against Nike and Adidas on fashion and professional sports. This product repositioning strategy was designed to __________. A. react to a competitor's position B. reach a new target market segment C. catch a rising trend D. change the value offered to its customers E. accommodate its target audience preference for comfortable sneakers

Q: For many years, Kellogg's Frosted Flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product with Tony in competitive situations. Recently, in response to declining sales of Frosted Flakes, the cereal-maker has adopted a new series of advertisements that show adults admitting that they enjoy Frosted Flakes, too. Kellogg's is attempting to __________. A. develop a perceptual map for Frosted Flakes B. reposition Frosted Flakes C. complete the Frosted Flakes product life cycle D. introduce a new product line extension for Frosted Flakes E. position Frosted Flakes

Q: Sealy, the self-proclaimed largest manufacturer of mattresses in the U.S., recently set out to redefine its function in the bedrooms of America. No longer did it want to be known as simply a mattress company. It wanted Sealy to be known as the world's leading "sleep wellness provider." This is an example of __________. A. reverse marketing B. demarketing C. repositioning D. segmenting E. positioning

Q: All of the following are factors triggering the need for product repositioning EXCEPT: A. creating a new use situation. B. reaching a new market. C. catching a rising trend. D. changing the value offered. E. reacting to a competitor's position.

Q: Changing the place a product occupies in a consumer's mind relative to competitive products is referred to as __________. A. market modification B. product modification C. product repositioning D. product positioning E. perceptual mapping

Q: Mott's applesauce promotes itself as a low-fat alternative to cooking oil for baked goods. Mott's is __________. A. finding new users through a product modification strategy B. increasing use by existing customers through a product modification strategy C. modifying the product characteristics D. creating new use situations through a market modification strategy E. demarketing the product

Q: Dockers, the U.S. market leader in casual pants, originally intended its product as a single pant for every situation. Dockers now promotes different looks for work, weekend, dress, and golf. Dockers' new strategy is designed to __________. A. create brand awareness B. create new use situations C. increase a product's use D. find new customers E. lower surplus inventory levels

Q: Florida Orange Growers Association advocates drinking orange juice throughout the day rather than for breakfast only, in a market modification strategy known as A. finding new users. B. personalizing the use situation. C. increasing a product's use by existing customers. D. modifying the product. E. reacting to competitors' positions.

Q: 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 a product's use by existing customers D. modifying the product E. reacting to competitors' positions

Q: Known for its popular line of construction toys for boys, LEGOS introduced a product line for young girls called LEGO Friends. This is an example of which market modification strategy? A. finding new users B. creating new use situations C. increasing a product's use by existing customers D. modifying the product E. reacting to competitors' positions

Q: When Coca-Cola promoted Coke as a morning beverage for those consumers who don't drink coffee, it used a __________ strategy. A. product modification B. brand modification C. market-product extension D. diversification E. market modification

Q: All of the following are market modification strategies EXCEPT: A. creating a new use situation. B. finding new customers. C. changing a product's appearance. D. targeting new market segments. E. increasing a product's use among existing customers.

Q: Market modification refers to a marketing strategy that __________. A. alters a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and to increase sales B. manages a product's life cycle to find new customers, increase a product's use among existing customers, or create new use situations C. tries to find new customers and convince users who abandoned the product to purchase again D. drops the lowest producing market segment and replaces it with an entirely new one E. combines the two lowest producing market segments to achieve marketing economies of scale

Q: A strategy for managing a product's life cycle that attempts to find new customers, increase a product's use among existing customers, or create new use situations is referred to as __________. A. market modification B. product modification C. product repositioning D. product extension E. diversification

Q: If Proctor and Gamble (P&G) were to package a Gillette Fusion ProGlide Razor with its Old Spice Pure Sport Anti-Perspirant & Deodorant, P&G would be engaged in __________. A. a BOGO deal B. product modification C. product bundling D. product repositioning E. product differentiation

Q: When Wendy's wants to increase the value of its Dave's Hot "u02dcN Juicy cheeseburger to its customers, it combines complementary items (French fries and a soft drink) to expedite the ordering process, and provide a complete meal. This product modification approach is called __________. A. a BOGO deal B. product modification C. product repositioning D. product differentiation E. product bundling

Q: The sale of two or more separate products in one package is referred to as A. a BOGO deal. B. product modification. C. product repositioning. D. product bundling. E. product differentiation.

Q: DiGiorno rising crust pizza has been available in the freezer sections of supermarkets for quite a while. The product's recent introduction of a DiGiorno cheese-stuffed crust to its line of pizzas is an example of __________. A. a market-product grid B. diversification C. market modification D. product class extension E. product modification

Q: Alka-Seltzer was originally made as a hangover remedy that cured a headache and settled the stomach. Today, you can purchase Original Alka-Seltzer, Extra Strength Alka-Seltzer, Alka-Seltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief, each of which has slightly different ingredients to solve the problem identified in its respective brand name. To broaden the product line to increase sales to new target market segments, the makers of Alka-Seltzer used a __________ strategy. A. product modification B. market-product grid C. diversification D. market modification E. product class extension

Q: Twenty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. With the addition of casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is an example of a __________ strategy. A. market-product grid B. diversification C. product modification D. market modification E. product repositioning

Q: When Proctor & Gamble revamped Pantene shampoo and conditioner with a new vitamin formula and relaunched the brand with a multimillion-dollar advertising and promotion campaign, what strategy did it use to manage the product through its life cycle? A. market modification B. product repositioning C. market-product synergy D. product positioning E. product modification

Q: All of the following are product modification strategies EXCEPT: A. product bundling. B. improving a product's quality. C. changing a product's appearance. D. creating a new use situation. E. altering a product's performance.

Q: Which of the following is a product modification strategy? A. creating new advertising for a product B. improving a product's quality C. finding a new target market for a product D. creating a new use situation for a product E. altering a product's distribution

Q: Product modification refers to a marketing strategy that __________. A. alters a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and to increase sales B. manages a product's life cycle to increase its use among existing customers, create new use situations, or find new customers C. tries to find new customers and convince users who abandoned it to purchase again D. drops the lowest producing market segment and replaces it with an entirely new one E. combines the lowest producing market segment into others to achieve marketing economies of scale

Q: A marketing strategy that alters a product's characteristic, such as its quality, performance, or appearance, to increase its value and sales to customers is referred to as __________. A. market modification B. product modification C. product repositioning D. market-product synergy E. product management

Q: CDI/BDI Marketing Dashboard In the CDI/BDI Marketing Dashboard above, which segment consumes the LEAST amount of Hawaiian Punch? A. households without children B. households with children 13 to 18 years old C. households with children 6 years old or under D. households with children 7 to 12 years old E. Because the BDI and CDI show inconsistencies in their measurements, especially in the segment of children under the age of six, it is impossible to answer the question.

Q: CDI/BDI Marketing Dashboard In the CDI/BDI Marketing Dashboard above, which segment consumes the MOST fruit drinks? A. households without children B. households with children 13 to 18 years old C. households with children 6 years old or under D. households with children 7 to 12 years old E. Because the BDI and CDI show inconsistencies in their measurements, especially in the segment of children under the age of six, it is impossible to answer the question.

Q: CDI/BDI Marketing Dashboard If you were a marketing manager and were presented with the information in the CDI/BDI Marketing Dashboard above, you would determine that the __________ segment has the most opportunity for increasing Hawaiian Punch sales. A. households without children B. households with children 13 to 18 years old C. households with children 6 years old or under D. households with children 7 to 12 years old E. According to the BDI, all though some segments measure above a 100, there is still great opportunity for growth in every segment

Q: CDI/BDI Marketing Dashboard As shown in the CDI/BDI Marketing Dashboard above, a BDI of 30 is determined by __________. A. finding the percent of the U.S. population in the "Households without children" segment divided by the percent of Hawaiian Punch sold to households without children in the U.S. multiplied by 100 B. subtracting the total number of non-users from the total number of users of Hawaiian Punch sold to households without children C. finding the difference in total sales of Hawaiian Punch between households who have children with those who do not D. finding the percent of Hawaiian Punch sold to U.S. households without children divided by the percent of the U.S. population in the "Households without children" segment multiplied by 100 E. using the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Q: The formula to calculate a BDI = __________. A. (Percent of the total U.S. population in a market segment Percent of a brand's total U.S. sales in a market segment) 100 B. (Percent of a product category's total U.S. sales in a market segment Percent of the total U.S. population in a market segment) 100 C. (Percent of a brand's total U.S. sales in a market segment Percent of the total U.S. population in a market segment) 100 D. (Percent of the total U.S. population in a market segment Percent of a product category's total U.S. sales in a market segment) 100 E. The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Q: The formula to calculate a CDI = __________. A. (Percent of the total U.S. population in a market segment Percent of a brand's total U.S. sales in a market segment) 100 B. (Percent of a product category's total U.S. sales in a market segment Percent of the total U.S. population in a market segment) 100 C. (Percent of a brand's total U.S. sales in a market segment Percent of the total U.S. population in a market segment) 100 D. (Percent of the total U.S. population in a market segment Percent of a product category's total U.S. sales in a market segment) 100 E. The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself

Q: If a firm's marketing dashboard displays a BDI under 100 for a consumer packaged good, such as General Mills' Warm Delights Minis, this indicates which of the following? A. a weak brand position in a segment B. a strong brand position in a segment C. above-average product category purchases by a market segment D. below-average product category purchases by a market segment E. There is not enough information to make any conclusions.

Q: If a firm's marketing dashboard displays a BDI over 100 for a consumer packaged good, such as General Mills' Warm Delights Minis, this indicates which of the following? A. a weak brand position in a segment B. a strong brand position in a segment C. above-average product category purchases by a market segment D. below-average product category purchases by a market segment E. There is not enough information to make any conclusions.

Q: If a firm's marketing dashboard displays a CDI under 100 for a consumer packaged good, such as General Mills' Warm Delights Minis, this indicates which of the following? A. a weak brand position in a segment B. a strong brand position in a segment C. above-average product category purchases by a market segment D. below-average product category purchases by a market segment E. There is not enough information to make any conclusions.

Q: 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? A. a weak brand position in a segment B. a strong brand position in a segment C. above-average product category purchases by a market segment D. below-average product category purchases by a market segment E. There is not enough information to make any conclusions.

Q: 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 __________. A. marketing efficiency and production efficiency B. dollar market share and unit market share C. monthly dollar sales by channel and monthly number of units sold by channel D. sales per square foot and same-store sales growth E. category development and brand development

Q: 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 __________. A. comprehensive demographic inventory and brand designation information B. consumer demographic index and buyer demographic inventory C. category development index and brand development index D. consumer development index and brand development inventory E. category development index and buyer development inventory

Q: 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 __________. A. business development index B. brand development index C. business-portfolio development index D. buyers development index E. benchmark development index

Q: 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 __________. A. category development index B. consumer development index C. competitive development index D. channel development index E. customization development index

Q: All of the following are responsibilities of a product or brand manager EXCEPT: A. engaging in extensive data analysis related to their products and brands. B. developing new products. C. managing existing products through the stages of their life cycles. D. developing and implementing strategies at the corporate level. E. developing and executing a marketing program described in an annual marketing plan for the product line.

Q: Consumer packaged goods firms like General Mills and PepsiCo and as well as industrial firms such as Intel and Hewlett-Packard employ a product manager to manage __________. A. all of an organization's product items or brands B. all of an organization's product classes C. all of an organization's existing products through the stages of their life cycles D. all products or brands that require close fiscal scrutiny E. a close-knit family of products or brands

Q: A product manager is sometimes called a __________. A. chief marketing officer (CMO) B. brand manager C. marketing manager D. category manager E. sales manager

Q: A manufacturer of a new all-natural-ingredient shampoo and conditioner puts free samples of the product in Sunday newspapers to __________. A. simulate laggard usage of the product B. inhibit the innovation diffusion process C. encourage product trial and adoption D. erect product adoption barriers against its competitors E. circumvent the typical adoption cycle

Q: Free samples are one of the most popular means to gain consumer trial. In fact, most consumers consider a sample to __________. A. simulate laggard usage of the product B. be the best way to evaluate a new product C. be faster than purchasing a product D. be safer than purchasing a product E. circumvent the typical adoption cycle

Q: One of the most popular means to gain consumer trial is through A. demonstrations. B. free samples. C. press releases. D. celebrity endorsements. E. product diffusion.

Q: Seventy-one percent of consumers consider __________ to be the best way to evaluate a new product. A. demonstrations B. free samples C. press releases D. celebrity endorsements E. product diffusion

Q: Warranties, money-back guarantees, extensive usage instructions, demonstrations, and free samples are all ways in which companies __________. A. lose money during the introductory stage of a product's life cycle B. convince laggards to try a new product C. recoup research and development costs D. influence the product life cycle of fashion products E. attempt to overcome barriers to adoption

Q: 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. A. accelerated development B. maturity C. growth D. introduction E. decline

Q: All of the following marketing actions can be used by a firm to counteract barriers to product adoption EXCEPT: A. offering money-back guarantees. B. targeting new consumers. C. conducting demonstrations. D. offering free samples. E. providing extensive usage instructions.

Q: There are several reasons why a consumer would be reluctant to adopt a new product, including a psychological barrier, which occurs when __________. A. there is no incentive to change B. there are physical, economic, or social risks C. there are cultural differences or image problems D. the financial commitment is too great E. the product is not consistent with existing habits

Q: There are several reasons why a consumer would be reluctant to adopt a new product, including a risk barrier, which occurs when __________. A. there is no incentive to change B. there are physical, economic, or social fears C. there are cultural differences D. the financial commitment is too great E. the product is not consistent with existing habits

Q: If a customer is reluctant to try a new product because she is afraid it might make her ill, the company is most likely facing a(n) __________ barrier. A. usage B. risk C. value D. emotional E. psychological

Q: Imagine that Post Cereal introduces a cereal bar, Trail Mix Crunch, just like the ones 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 Cereal Trail Mix Crunch cereal bars will also be distributed to the same stores as the products from Kellogg's and General Mills' bars. Which of the following barriers to new product adoption will most likely prevent the success of Post Trail Mix Crunch cereal bars? A. value barrier B. psychological barrier C. risk barrier D. usage barrier E. social barrier