Q&A Hero

Q: The central element of the marketing strategy for Pez Candy, Inc., is the __________. A. price B. breath mint C. availability D. container E. fulfillment

Q: When most consumers who would buy a product are either repeat purchasers of the item or have tried and abandoned it, in what stage of the product life cycle is the product? A. introduction B. growth C. maturity D. decline E. harvest

Q: Pez was originally sold in Europe as an adult __________. A. breath mint B. chewing gum C. pain reliever D. stop smoking patch E. antacid

Q: In which stage of the product life cycle do marginal competitors begin to leave the market? A. introduction B. growth C. decline D. maturity E. harvest

Q: Customer value can assume numerous forms. For Pez Candy, Inc., customer value manifests itself in the form of __________. A. an upbeat jingle B. character candy dispensers C. a stylish logotype D. sour taste E. sugar coating

Q: Which stage in the product life cycle is characterized by a slowing of total industry sales or product class revenue? A. introduction B. growth C. maturity D. decline E. decelerated implementation

Q: Which of the following statements regarding labels is most accurate?A. Although labels are can carry useful information, the less information communicated, the better.B. The brand logo or brand name should always be the largest image on a label.C. Labels can be very expensive, but they are important because they often are the first contact the consumer has with the product.D. The best labels to use on food products are those that can be easily removed to promote recycling of the package.E. One penny for every dollar consumers spend on products goes towards packaging and labeling costs.

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

Q: An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients is referred to as a(n) __________. A. SKU B. product information panel C. UPC D. RFID E. label

Q: Apple launched its iPad in 2010 and it, along with its companion iPad mini, have become the world's bestselling tablet devices with their multitouch user interfaces and the availability of hundreds of thousands of apps. The product class has experienced tremendous growth in terms of sales and the addition of formidable competitors such as Samsung Galaxy, Google Nexus, Sony Xperia, etc. - all vying for market share. In which stage of the product life cycle are the iPad and other tablets? A. decline stage B. commercialization stage C. accelerated development stage D. growth stage E. introduction stage

Q: Packaging is defined as __________. A. any box, bottle, jar, can, carton, or bag that can be used for transporting services B. any container in which a product is offered for sale and on which label information is communicated C. that part of a product that is not recycled D. the part of the product that identifies the product or brand, who made it, where and when it was made, how it is to be used, and the contents and ingredients E. any container used in the preservation of ideas

Q: Apple launched its iPhone in 2007, the first smartphone that used a multi-touch user interface. iPhone unit sales then skyrocketed for several years. Recently, growth in smartphone sales have slowed and profits have declined due to fierce competition from Samsung, Motorola, Nokia and others. In which stage of the product life cycle are smartphones like the iPhone? A. decline stage B. commercialization stage C. growth stage D. accelerated development stage E. introduction stage

Q: Any container in which a product is offered for sale and on which information is communicated is referred to as __________. A. a point of purchase display B. merchandising C. packaging D. a label E. a product bundle

Q: Amazon Kindle Photo Consider the Amazon Kindle photo above. According to the textbook, in what stage of the product life cycle are e-book readers like the Kindle? A. harvest B. decline C. maturity D. growth E. introduction

Q: A manufacturer can successfully use mixed branding because __________. A. it involves giving each product a distinct brand name B. the segment attracted to the reseller product is different from its own targeted market segment C. the company uses one name for all of its products for the sake of simplicity D. it is easy to do E. it produces lower profits for the reseller and higher profits for the manufacturer

Q: Which of the following is an example of a product in the growth stage of the product life cycle? A. tablet devices B. electric cars C. fax machines D. soft drinks E. analog TVs

Q: A branding strategy in which a firm markets some products under its own name(s) and other products under the name of a reseller because the segment attracted to the reseller is different from its own market is referred to as __________. A. multibranding B. generic branding C. private branding D. mixed branding E. multiproduct branding

Q: Which of the following is a characteristic of the growth stage of the product life cycle? A. advertising emphasis switches to primary demand B. a growing proportion of initial purchasers to repeat purchasers C. addition of new or modified product features D. profit margins increase as sales increase E. there are a limited number of retail outlets for greater quality control

Q: Mixed branding refers to a branding strategy in which a firm __________. A. gives each product a distinct name when each brand is intended for a different market segment B. uses different brand names for the same product across multiple countries C. uses one name for all its products in a product class D. produces products but sell them under the brand name of a wholesaler or retailer E. markets some products under its own name(s) and other products under the name of a reseller because the segment attracted to the reseller is different from its own market

Q: Which of the following is a characteristic of the growth stage of the product life cycle? A. advertising emphasis switches to primary demand B. a growing proportion of repeat purchasers to initial purchasers C. the number of distribution outlets shrinks due to growing inefficiencies D. profit margins increase as sales increase E. no new product features are added to maximize profits

Q: Over 50% of the dollars spent in the United States on disposable cups and plates go towards the purchase of store brands of these products that are manufacturer by others. __________ has been very successful in this disposables category. A. Generic branding B. Multibranding C. Co-branding D. Multiproduct branding E. Private branding

Q: In which stage of the product life cycle is it important to broaden distribution of the product? A. introduction B. growth C. maturity D. decline E. harvest

Q: Private branding is also referred to as private labeling or __________. A. reseller branding B. generic branding C. multibranding D. co-branding E. multiproduct branding

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

Q: Private branding refers to a branding strategy in which a firm __________. A. gives each product a distinct name when each brand is intended for a different market segment B. uses different brand names for the same product across multiple countries C. uses one name for all its products in a product class D. produces products but sell them under the brand name of a wholesaler or retailer E. contractually, and for a fee, allows other firms to use its brand name, requiring that the product be made to its specifications

Q: Changes in a company's product characteristically are made in the __________ stage of the product life cycle. A. introduction B. maturity C. decline D. harvest E. growth

Q: A company uses __________ when it manufactures products but sells them under the brand name of a wholesaler or retailer. A. manufacturer branding B. private branding C. generic branding D. co-branding E. brand licensing

Q: During the __________ stage of the product life cycle, product proliferation occurs as a results of each company's efforts to differentiate its product from competitors'. A. introduction B. growth C. maturity D. decline E. harvest

Q: Which of the following is FALSE about a multibranding strategy? A. A multibranding strategy, there is no risk that a product failure will affect other products in the line. B. Some large firms have found that the complexity and expense of implementing a multibranding strategy outweigh its benefits. C. With a multibranding strategy, each brand is unique to each market segment. D. A multibranding strategy is used when a firm produces products and sells them under the brand name of a wholesaler or retailer. E. Some multibrands are introduced to confront competitors' brands.

Q: Men who tried the Gillette Fusion razor were so satisfied with it that 60 percent of them adopted the product permanently. Men who bought again are known as __________ purchasers. A. repeat B. preference C. replicate D. recurring E. selective

Q: Advertising and promotion costs tend to be higher with a __________ strategy because the company must generate awareness among consumers and retailers for each new brand name without the benefit of any previous impressions. A. co-branding B. private branding C. multibranding D. multiproduct branding E. mixed branding

Q: People who tried a product, were satisfied, and bought it again are called __________ purchasers. A. replicate B. dedicated C. recurring D. loyal E. repeat

Q: Despite the success of its Pentium chips, Intel faced a major threat from competitors like AMD's K6 chips that were cheaper and better placed to serve the emerging low-cost PC market. Intel wanted to protect the brand equity and price premium of its Pentium microprocessors, but it also wanted to avoid AMD gaining a foothold into the lower end of the market. So it created Celeron as a cheaper, less powerful version of its Pentium chips to serve this market. This is a notable example of a __________. A. private brand B. brand extension C. subbrand D. co-brand E. fighting brand

Q: Which of the following is a characteristic of the growth stage of the product life cycle? A. advertising emphasis switches to selective demand B. a growing proportion of trial purchases come from brand loyal users C. product features remain unchanged D. profit margins increase as sales increase E. the product is sold in a narrowly selected number of retail outlets

Q: A __________ is a brand strategy designed to counteract or confront competitors' brands. A. co-brand B. private brand C. fighting brand D. brand extension E. subbrand

Q: At which stage in the product life cycle do industry profits usually peak? A. introduction B. growth C. maturity D. decline E. accelerated development

Q: New product brands introduced as defensive moves to counteract and confront a firm's competition are referred to as __________. A. co-brands B. private brands C. fighting brands D. brand extensions E. subbrands

Q: Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors? A. maturity B. decline C. growth D. accelerated development E. introduction

Q: Seiko makes watches. It markets its higher quality watches under the Seiko or LaSalle brand name and its lower-priced watches are sold under the Pulsar brand. Seiko uses a __________ strategy. A. multibranding B. product differentiation branding C. multiproduct branding D. segmentation branding E. private branding

Q: The __________ stage of the product life cycle is characterized by the appearance of competitors. A. decline B. maturity C. introduction D. growth E. harvest

Q: Mars, Inc. sells Snickers, Milky Way, Twix, Skittles, Dove, Starburst, M&Ms, and Three Musketeer candy. This variety of brand names is typical of a __________ strategy. A. co-branding B. multibranding C. multiproduct D. mixed brand E. private branding

Q: The __________ stage of the product life cycle is characterized by rapid increases in sales. A. introduction B. growth C. maturity D. decline E. harvest

Q: Black & Decker uses a __________ strategy to reach the do-it-yourself market with the Black & Decker brand name and the professional construction market with the DeWalt brand name. A. product differentiation branding B. multiproduct branding C. multibranding D. segmentation branding E. private branding

Q: 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 5 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? A. Select a skimming pricing strategy to position the product as premium. B. Seek widespread distribution to gain a foothold in what might be a potentially huge market. C. Limit production capacity until you are certain consumers will actually want the product. D. Avoid a connection to the Eveready brand until the product has proven itself. E. Use multiple brand names to discourage other competitors from entering the market.

Q: A manufacturer's branding strategy in which a distinct brand name is given to each of its products is referred to as __________. A. multiproduct branding B. generic branding C. product differentiation branding D. mixed branding E. multibranding

Q: The $150 Pebble Smartwatch was one of the first smart watches released to the public in 2013 after a revolutionary crowdfunding program managed by Kickstarter.com that raised over $10 million from over 68,000 backers. Smartwatches can collect physiological data from the wearer and transmit it wirelessly to smartphones, tablets, and PCs. Samsung recently launched its Galaxy Gear smart watch and Apple is set to launch such a device in 2015. In what stage of the product life cycle is this product? A. growth stage B. decline stage C. accelerated development stage D. introduction stage E. maturity stage

Q: A branding strategy that involves giving each product a distinct name when each brand is intended for a different market segment is referred to as __________. A. product differentiation branding B. multibranding C. mixed branding D. segmentation branding E. multiproduct branding

Q: LED (light-emitting diode) light bulbs have been available for only a few years in low lighting levels (lumens). LEDs are designed to replace incandescent and even compact fluorescent light bulbs, in part because of a federal law that phases out incandescent light bulbs in favor of more energy efficient ones. LED bulbs, which today can cost about $10 to $15 for a 60-watt bulb, will last up to 20 years. In what stage of the product life cycle is this product? A. growth stage B. decline stage C. accelerated development stage D. introduction stage E. maturity stage

Q: Multibranding refers to a branding strategy in which a firm __________. A. gives each product a distinct name when each brand is intended for a different market segment B. uses different brand names for the same product across multiple countries C. uses one name for all its products in a product class D. produces products but sell them under the brand name of a wholesaler or retailer E. contractually, and for a fee, allows other firms to use its brand name, requiring that the product be made to its specifications

Q: 3D OLED (organic light-emitting diode) HDTVs, such as the 55" model from LG Electronics that costs about $10,000, which offers a significantly different viewing experience than any television previously available, are in which stage of their product life cycle? A. introduction B. growth C. maturity D. decline E. harvest

Q: Huggies Photo Consider the Huggies photo above. Kimberley-Clark has successfully leveraged the strong Huggies brand image among mothers in its use of __________ when it introduced a full line of baby and toddler toiletries. A. product line branding B. subbranding C. multiproduct branding D. mixed branding E. brand extensions

Q: Chevy Spark Photo All electric-powered automobiles such as the Chevy Spark shown in the photo above are in which stage of their product life cycle? A. growth B. maturity C. decline D. accelerated development E. introduction

Q: A risk with __________ is that too many uses for one brand name can dilute the meaning of a brand for consumers. A. brand extensions B. product line extensions C. co-branding D. private branding E. mixed branding

Q: Which of the following statements about the introduction stage of the product life cycle is most accurate? A. It is preferable stimulate selective demand rather than focus on primary demand. B. During the introduction stage, it is best to avoid a skimming pricing strategy. C. During the introduction stage, it is best to avoid a penetration pricing strategy. D. A firm should introduce the identical product at several different price points in order to gauge customer price sensitivity. E. Because of large initial investment costs, industry profits often are initially negative.

Q: Brand extensions is the practice of A. manufacturing a product under a new name that consumers will view as an entirely new product line. B. manufacturing a new product with the same brand name for a new market segment in the same product class. C. manufacturing accessory products for the base offering, such as Barbie clothes for Barbie Dolls. D. licensing another firm to manufacture modified versions of the original product. E. applying the current brand name to enter a completely different product class.

Q: Xunrui Communications is an upstart maker of inexpensive smartphones for the Chinese market. Xunrui purchases components and uses small assembly factories in Shenzhen, in southern China. These smartphones retail for about $65 in U.S. dollars, much less than the $250 to $600 for smartphones marketed by Apple or Samsung, the top two marketers of these items. Here, Xunrui Communications most likely is using which pricing strategy? A. penetration pricing B. cost-plus pricing C. target ROI pricing D. above-market pricing E. skimming pricing

Q: Tylenol successfully used __________ with the introduction of groups of products, each with their own name and dedicated to particular symptoms, such as Tylenol Arthritis, Tylenol Sinus and Allergy, Tylenol Cold and Flu, and Tylenol Pain and Sleeplessness. A. multibranding B. private branding C. subbranding D. mixed branding E. brand extensions

Q: 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. A. penetration B. cost-plus C. target ROI D. below-market E. skimming

Q: Nike has successfully used __________ with its lines Air Jordan and Air Lebron. A. family branding B. subbranding C. multiproduct branding D. mixed branding E. generic branding

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