intro to marketing: chapter 10 questions

steps for building brand equity in order -establish a brand's meaning in consumers' minds -create a consumer-brand connection -elicit proper consumer responses -develop positive brand awareness

1. develop positive brand awareness 2. establish a brand's meaning in consumers' minds 3. elicit proper consumer responses 4. create a consumer-brand connection

product life cycle stages

1. introduction 2. growth 3. maturity 4. decline

innovators a. 2.5 percent b. 13.5 percent c. 34 percent d. 16 percent

a. 2.5 percent

an example of a trading up repositioning strategy is... a. a tire manufacturer offering more value by adding "run-flat" technology b. a tire manufacturer merging with a car company c. a tire manufacturer increasing its prices d. a tire manufacturer moving its production facilities to a more affluent community

a. a tire manufacturer offering more value by adding "run-flat" technology

the diffusion of innovation refers to the rate at which consumers ____ a given product or service a. adopt b. recognize c. recommend d. purchase

a. adopt

important aspects of product life cycles include the length of the cycle, its shape, how it varies depending of the type of product, and... a. the rate of consumer adoption b. the strategy used c. the company's years in business d. the marketing investment level

a. the rate of consumer adoption

early adopters a. 2.5 percent b. 13.5 percent c. 34 percent d. 16 percent

b. 13.5 percent

in the ____ stage for the product life cycle, advertising and promotional spending is used to stimulate primary demand and build awareness a. growth b. introduction c. decline d. maturity

b. introduction

early adopters are... a. skeptical about innovations b. leaders in social settings c. deliberate in their purchasing d. fearful of debt

b. leaders in social settings

in brand equity development, both the functional. performance-related dimension and the abstract, imagery-related dimension are used to help a consumer form a ____ for the brand in her mind a. opinion b. meaning c. loyalty d. intent

b. meaning

the ____ factor for services includes not only "what" gets created by also "how" it is created a. productivity b. process c. place d. physical environment

b. process

a ____ manager is responsible for developing and executing a marketing program for a product line, and some may also develop new products

brand

early majority a. 2.5 percent b. 13.5 percent c. 34 percent d. 16 percent

c. 34 percent

late majority a. 2.5 percent b. 13.5 percent c. 34 percent d. 16 percent

c. 34 percent

the diffusion of innovation curve shows the time of adoption for different categories of consumers according to the curve, how many different categories of consumers are there? a. 6 b. 7 c. 5 d. 4

c. 5

the first step in creating a strong brand equity is to build strong brand... a. loyalists b. imagery c. awareness d. performance

c. awareness

the product life cycle is... a. the movement of a product from the point of manufacture to the point of purchase b. the process by which a product is given new features and benefits to improve it c. made up of the stages a product goes through in the marketplace, from introduction to decline d. the processes an item goes through from creation through disposal

c. made up of the stages a product goes through in the marketplace, from introduction to decline

maturity a. gain awareness b. stress differentiation c. maintain brand loyalty d. harvesting, deletion

c. maintain brand loyalty

at the ____ stage of the product life cycle, most consumers who would buy the product are either repeat purchaser of the item or have tried and abandoned it, making it more challenging to acquire new cutomers a. competition b. gwoth c. maturity d. introduction

c. maturity

private brands are also known as ____ brands a. premium b. manufacturer c. reseller d. luxury e. national

c. reseller

efforts to influence consumer demand for a service with changes in marketing mix elements is known as ____ management

capacity

while early adopters are crucial to the success of a new product, they still only make up a relatively small percentage of the total consumers in a given product market this percentage is approximately how big? a. 5 percent b. 30 percent c. 25 percent d. 13.6 percent

d. 13.5 percent

laggards a. 2.5 percent b. 13.5 percent c. 34 percent d. 16 percent

d. 16 percent

downsizing the content of a product's package is an example of a ____ strategy for repositioning a. trend exploitation b. competitive avoidance c. competitive matching d. trading down

d. trading down

when a product goes into the ____ stage of the product life-cycle, the company may eventually remove it from the market

decline

____ of ____ is the process by which the use of a product spreads throughout a market group over time and over various categories of adopters

diffusion, innovation

when a brand extension confuses consumer perceptions about the core brand, it is known as... a. umbrella branding b. brand rejection c. copycat branding d. generic branding e. brand dilution

e. brand dilution

along the diffusion of innovation curve, ____ make up the second group of consumers to adopt an innovation, they tend to be leaders in a social setting a. early majority b. pioneers c. first movers d. innovators e. early adopters

e. early adopters

in the ____ stage of the product life cycle, the product gains acceptance, demand and sales increase, and there are more competitors

growth

rapid increases in sales and the appearance of competitors occurs during the ____ stage of the product life cycle

growth

the ____ stage of the product life cycle for a new product occurs when it is released for purchase by its intended target market

introduction

the ____ stage of the product life cycle is characterized by initial losses to the firm due to its high start-up costs and low levels of sales revenue

introduction

the early ____ represents the earlier half of the two largest categories of consumers on the diffusion of innovation curve

majority

product bundling is one approach that may be used in a product ____ strategy to increases a product's value to customers

modification

a ____ identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it

trademark

when harley-davidson adapted some of its motorcycles with features such as smaller hand grips, lower seats, and an easier-to-pull clutch lever, it attempted to... a. attract new users, women riders b. introduce a new product that would not cannibalize its existing ones c. caterer to existing customers after doing a focus group d. accommodate the customers' body change over the years

a. attract new users, women riders

which of the following are reasons that service marketers rely heavily on branding? a. branding helps convey an image of quality b. branding improves production capacity management c. strong branding makes introduction of new services easier d. branding is a means of differentiation

a. branding helps convey an image of quality c. strong branding makes introduction of new services easier d. branding is a means of differentiation

product packaging offers a variety of benefits to which of the following? a. consumers b. manufacturers c. raw material suppliers d. retailers

a. consumers b. manufacturers d. retailers

during the ____ stage of the product life cycle, a company often minimizes promotion a. decline b. growth c. maturity d. introduction

a. decline

which two options are possible for firms who have products in the decline stage of the product life cycle? a. deletion b. harvesting c. redesign d. reinvest

a. deletion b. harvesting

one advantage of a product line ____ is that the company can spend less money to develop brand awareness a. extension b. strategy c. equity d. development

a. extension

the chief purpose of a ____ brand is to counteract competition a. fighting b. private c. licensed d. extension

a. fighting

which of the following are strategies to modify the market? a. find new customers b. create a new product c. increase a product's use among existing customers d. create new use situations

a. find new customers c. increase a product's use among existing customers d. create new use situations

marketing attention in the maturity stage is often directed at holding market share through which two of the following? a. finding new buyers b. further product differentiation c. focusing on stimulating trial d. stimulating primary demand

a. finding new buyers b. further product differentiation

because brands are easily recognized by consumers and because they signify certain attributes, brands... a. help consumers make quick decisions b. provide their own legal protection c. encourage a more extensive external search d. help consumers pay less

a. help consumers make quick decisions

which of the following might be included on a product label? a. how the product is to be used b. wholesale information c. names of competitors d. ingredients

a. how the product is to be used d. ingredients

packaging refers to which two of the following? a. it has a label on which information is conveyed b. it is any container in which a product is offered for sale c. it is defined as the functional benefits of the container d. it is one of the 4ps of the marketing mix

a. it has a label on which information is conveyed b. it is any container in which a product is offered for sale

a ____ identifies the product or brand, the package contents, and other information like where the product was made, when, and by whom a. advertisement b. label c. warranty d. spokesperson

a. label

the growth stage of the product life cycle is characterized by increases in which of the following? a. locations for distribution b. total industry sales c. number of competitors d. prices, especially including taxes

a. locations for distribution b. total industry sales c. number of competitors

marriott international owns several brands of hotels at different price ranges, such as marriott, courtyard, and fairfield inn, in what is called a ____ strategy a. multibranding b. private labeling c. multiproduct d. mixed branding

a. multibranding

communication a. nutritional and dietary information b. refrigerator-compatible storage c. graphics to convey a brand's positioning

a. nutritional and dietary information

a surgeon cannot perform two surgeries at once, a hairdresser cannot wash and style three clients' hair simultaneously, and an airline can't have two people sit in the same airplane seat on a flight which two of the following create challenges for service providers in terms of productivity? a. perishability b. irrationality c. intangibility d. inseperability

a. perishability d. inseparability

when harley-davidson advertises to reinforce the perception that the brand is masculine, rugged, and individualistic, it is building brand... a. personality b. value c. awareness d. conversation

a. personality

which of the following are ways to manage a product through its life cycle? a. repositioning the product b. repositioning the market c. modifying the product d. modifying the market

a. repositioning the product c. modifying the product d. modifying the market

warranties, guarantees, extensive usage instructions, demonstrations, and free samples are effectively used by firms to... a. stimulate initial trial of new products b. create risk barriers c. remind customers of tangible product attributes d. intimidate competitors

a. stimulate initial trial of new products

growth a. stress differentiation b. harvesting, deletion c. gain awareness d. maintain brand loyalty

a. stress differentiation

easy off, glass plus, cling free are good brand name because they... a. suggest the product benefits b. are easy to pronounce and spell c. easy to remember d. are made up of two words

a. suggest the product benefits

customer experience management is... a. the process of managing the entire customer experience of a service offering b. a focus on employees' attitudes, skills, and commitment needed to meet customer expectations c. determination of the most loyal customers for a service offering, and the factors critical to them d. the actual procedures, mechanisms, and flow of activities by which the service is created and delivered

a. the process of managing the entire customer experience of a service offering

usage barriers a. the product is not compatible with existing habits b. the consumer has fears regarding physical, economic, or social effects c. there are cultural differences or image problems d. the product provides no incentive to change

a. the product is not compatible with existing habits

which of the following are reasons that a company may wish to reposition its product? a. to change the value offered b. to react to a competitor's position c. to catch a rising trend d. to reduce the need for advertising

a. to change the value offered b. to react to a competitor's position c. to catch a rising trend

the label is used to do which two of the following? a. to convey information to the consumer b. to satisfy legal requirements c. to provide product protectoin d. to promote licensing opportunities

a. to convey information to the consumer b. to satisfy legal requirements

modifying the market a. trying to find new customers, increase a product's use among existing customers, or cease new use situations b. altering one or more of a product's characteristics to increase its value to customers and increase sales c. changing the place a product occupies in a customer's mind relative to competitive products, sometimes by changing marketing mix elements to bolster sales

a. trying to find new customers, increase a product's use among existing customers, or cease new use situations

the last step in building brand equity is creating... a. a repositioning strategy b. a consumer-brand connection c. brand awareness d. brand image

b. a consumer-brand connection

an example of increasing product use as a market modification strategy in the cereal category would be... a. increasing sales online with special web-only discounts b. advertising the use of cereal as a late-night snack c. growing awareness through the use of a contest d. developing an international campaign

b. advertising the use of cereal as a late-night snack

modifying the product a. trying to find new customers, increase a product's use among existing customers, or cease new use situations b. altering one or more of a product's characteristics to increase its value to customers and increase sales c. changing the place a product occupies in a customer's mind relative to competitive products, sometimes by changing marketing mix elements to bolster sales

b. altering one or more of a product's characteristics to increase its value to customers and increase sales

the use of the same brand name for new products being introduced into a different product class is known as... a. family branding b. brand extension c. cobranding d. product line extension

b. brand extension

due to the fact that services are intangible and more difficult to describe, ____ is very important because it is a means of differentiation and helps to convey an image of quality a. off-peak pricing b. branding c. distribution d. relationship marketing

b. branding

off-peak pricing is... a. pricing services lower to account for higher nonmonetary costs like physical and mental effort b. charging different prices during different times of the day or week to reflect variations in demand c. lowering prices in response to similar changes by closest competitors, sometimes leading to a price war d. eliminating intermediaries in the delivery of services in order to lower their costs for consumers

b. charging different prices during different times of the day or week to reflect variations in demand

the product class of prerecorded music includes which product form? a. the ipod b. compact disc c. jazz d. sony entertainment

b. compact disc

product repositioning means changing the product position in the... a. international market b. consumer's mind c. media d. retail store

b. consumer's mind

this curve represents groupings of customers who adopt new products in a process known as... a. viral marketing b. diffusion of innovation c. the product life cycle d. distribution of product inventory

b. diffusion of innovation

identifying the consumer groups who are part of the diffusion of innovation curve a. idea generators b. early adopters c. early majority d. opinion leaders e. early laggards

b. early adopters c. early majority

when coca-cola continues to make tab for its loyal fans but does not promote the drink, it is known as... a. milking b. harvesting c. squeezing d. deletion

b. harvesing

the diffusion of innovation curve illustrates the typical rate of adoption for a product or service among consumers according to the diffusion of innovation curve, when would marketers expect to see highest frequency of adoption for a given product? a. toward the end of the curve b. in the middle of the curve c. at the beginning of the curve d. at either end of the curve

b. in the middle of the curve

key characteristics of the maturity stage are which two of the following? a. many new competitors enter the market b. intense competition on price occurs c. revenues increase rapidly d. marketing costs increase to gain new buyers

b. intense competition on price occurs d. marketing costs increase to gain new buyers

the ____ important to the marketing strategy because of the expense involved and because this is the first exposure a customer has to the product a. brand awareness is b. package and labeling are c. trademark protection is d. warranty is

b. package and labeling are

in addition to the traditional four p's, which of the following are factors that also require effective management within service organizations? a. planning b. people c. process d. physical environment

b. people c. process d. physical environment

because services are intangible and there may be few other available cues for the customer to judge, they frequently use ____ as an important indicator of a service's quality a. distribution b. price c. competitors d. productivity

b. price

a ____ extension is the practice of using a current brand name to enter a new market segment in its product class a. brand b. product line c. family d. labeling

b. product line

an example of creating a new use situation as a market modification strategy for avocados would be... a. developing a more easy-to-peel variety b. promoting their use as a facial cleanser c. advertising their use to hispanics d. promoting them in europe

b. promoting their use as a facial cleanser

product harvesting is when a company ____ a declining product a. reinvents and reinvests in b. reduces marketing for but retains c. eliminates d. increases marketing for

b. reduces marketing for but retains

functional a. nutritional and dietary information b. refrigerator-compatible storage c. graphics to convey a brand's positioning

b. refrigerator-compatible storage

which of the following is indicative of a low-learning product? a. an extended introductory period b. sales that begin immediately c. life cycle curve that continually goes up and down d. rapid sales and an equally rapid decline

b. sales that begin immediately

as a consumer, being an innovator in a given product category can mean engaging in a number of behaviors which behavior would best illustrate an innovator? a. buying a used car on ebay b. sleeping outside best buy for the latest game console c. being first in line outside starbucks for the first cup of coffee that morning d. collecting rare stamps from exotic locations

b. sleeping outside best buy for the latest game console

today, ____ is being used to deliver services beyond the provider's physical locations a. off-peak pricing b. technology c. capacity management d. customer experience management

b. technology

risk barriers a. the product is not compatible with existing habits b. the consumer has fears regarding physical, economic, or social effects c. there are cultural differences or image problems d. the product provides no incentive to change

b. the consumer has fears regarding physical, economic, or social effects

because of the inseparability of services, which of the following is true about the place (or distribution) of them? a. distribution involves a lengthy and expensive channel b. the value of convenient distribution is now recognized c. distribution is typically ignored in marketing management d. the distribution site becomes unimportant

b. the value of convenient distribution is now recognized

innovators on the diffusion of innovation curve are important to marketers because... a. they are fiercely loyal to products they already purchase b. they are the first to adopt a new product c. they create their own adoption barriers d. they use friends and neighbors as information sources

b. they are the first to adopt a new product

which two of the following are disadvantages of multibranding? a. the failure of another product can tarnish your brand b. brand dilution is likely c. awareness will have to be built from scratch d. advertising and promotion are typically more expensive

c. awareness will have to be built from scratch d. advertising and promotion are typically more expensive

repositioning the product a. trying to find new customers, increase a product's use among existing customers, or cease new use situations b. altering one or more of a product's characteristics to increase its value to customers and increase sales c. changing the place a product occupies in a customer's mind relative to competitive products, sometimes by changing marketing mix elements to bolster sales

c. changing the place a product occupies in a customer's mind relative to competitive products, sometimes by changing marketing mix elements to bolster sales

which of the following is true regarding the length of the product life cycle? a. technological change will lengthen the cycle b. the length of the cycle is surprisingly consistent for almost all products c. consumer products often have shorter life cycles than business ones d. mass communication lengthens the cycle

c. consumer products often have shorter life cycles than business ones

a trip to a disney theme park reveals a careful integration of all service activities to connect with customers and engender customer loyalty, which is an example of... a. interaction management b. capacity management c. customer experience management d. internal marketing

c. customer experience management

product deletion is... a. changing the name of a product based on customer feedback b. elimination of features from a high-leaning product c. dropping a product from the company's product line d. the illusion of a product's success due to early trial

c. dropping a product from the company's product line

when a firm sells all its products under one ____, such as pepperidge farm, the individual brands benefit from the overall brand awareness associated with it a. exclusive co-brand b. individual brand c. family brand d. premium brand

c. family brand

men's and women's apparel often have which type of product life cycle curve? a. low-learning b. fad c. fashion d. high-learning

c. fashion

storage and protection of the product are considered which kind of benefits added by packaging and labels? a. perceptual b. communication c. functional d. utilitarian

c. functional

introduction a. stress differentiation b. harvesting, deletion c. gain awareness d. maintain brand loyalty

c. gain awareness

perceptual a. nutritional and dietary information b. refrigerator-compatible storage c. graphics to convey a brand's positioning

c. graphics to convey a brand's positioning

the product life cycle curve shown best illustrates a (long introductory period)... a. fashion product b. fad product c. high-learning product d. low-learning product

c. high-learning product

paul has an mba and seems to always know what new technology gadget is coming to the market he reads many online blogs, and magazines and is willing to be the first one to try the iphone, the ipad, and many other new products paul is most likely an... a. early exemplar b. laggard c. innovator d. early majority consumer

c. innovator

the physical environment is important in the delivery of services because... a. it is a large expense for these organizations, and it is best managed by concealing the production area from view b. service providers have the additional challenge of controlling physical space requirements for their distributors c. it provides physical evidence, and thus helps convey an image to the consumer d. contaminants in the environment can negatively affect the quality of the product

c. it provides physical evidence, and thus helps convey an image to the consumer

private-label branding is popular because... a. suppliers have better access to material inputs b. manufacturers benefit from selling products directly to consumers without any intermediaries c. it results in high profits for manufacturers and resellers d. consumers have grown to dislike generic options for products

c. it results in high profits for manufacturers and resellers

lucrative brand ____ opportunities arise from brand equity, when another company wishes to pay a royalty or fee to use your brand name or trademark a. personality b. strategy c. licensing d. restriction

c. licensing

during introduction, distribution is often... a. nonexistent since it is too expensive to focus on this part of the marketing mix yet b. maximized since this is the best way to reach new customers c. limited because of channel intermediaries' hesitancy to carry a new product d. growing rapidly since many customers demand the product during this stage

c. limited because of channel intermediaries' hesitancy to carry a new product

branding can include which of the following? a. safety labeling b. price c. packaging design d. unique symbols, like a logo e. a product name

c. packaging design d. unique symbols, like a logo e. a product name

one of the advantages of building strong brand equity is that often consumers are willing to ____ the product a. tell their friends about b. overpurchase and stockpile c. pay a higher price for d. become resellers for

c. pay a higher price for

emphasis on availability, location, quality, and service, as well as a physical representation of the service encounter should be included in an organization's... a. process strategy b. internal marketing c. promotional programs d. capacity management plan

c. promotional programs

during the growth stage, part of the growth in sales is attributed to ____ purchasers, people who tried the product, were satisfied, and bought again a. secondary b. durable c. repeat d. loyal

c. repeat

when the milk producers communicate the benefits of drinking milk including vitamin d, they attempt to capitalize on a trend by ____ milk a. changing b. advertising c. repositioning d. developing

c. repositioning

psychological barriers a. the product is not compatible with existing habits b. the consumer has fears regarding physical, economic, or social effects c. there are cultural differences or image problems d. the product provides no incentive to change

c. there are cultural differences or image problems

while innovators are crucial to the success of a new product or service, this category of consumers is actually very small approximately what percentage of a total market does this category of consumers represent? a. 5 percent b. 1 percent c. 10 percent d. 2.5 percent

d. 2.5 percent

brand equity is defined as the added value a brand name gives to a product... a. as it reaches the maturity stage of the product life cycle b. compared to others in the same product line, all of which are produced by the same firm c. based upon the difference in prices among competitors d. beyond the functional benefits provided

d. beyond the functional benefits provided

the word "nike" and the "swoosh" are both part of nike's... a. trademark b. corporate image c. equity d. brand name

d. brand name

branding is particularly useful to help establish... a. mission statements b. product modification strategies c. competitive responses d. customer loyalty

d. customer loyalty

much more than when marketing products, service providers such as seaside hotels and restaurants have a dilemma of matching... a. employees and clients b. workloads and schedules c. self-service buyers and the internet d. demand and capacity

d. demand and capacity

branding provides a way for a firm to... a. influence public policy regarding safety issues b. copy other firms' brands c. reduce costs, mainly in production d. differentiate its products from competitors

d. differentiate its products from competitors

which group of consumers is crucial to the success of new products because of its social influence over later categories of adopters? a. late majority b. laggards c. early majority d. early adopters

d. early adopters

when nestle or mcdonald's modify their packaging to use more recyclable material, they are responding to... a. investor concerns b. consumer safety and security issues c. government pressures d. environmental concerns

d. environmental concerns

the product life cycle curve shown best illustrates a (rapid sales on introduction and equally rapid decline)... a. low-learning product b. high-learning product c. fashion product d. fad product

d. fad product

during the decline stage of the product life cycle, firms will typically have lower sales as well as... a. new product versions b. more distribution outlets c. increasing promotion d. fewer competitors

d. fewer competitors

which of the following is a marketing objective when a product is in the introductory stage of the product life cycle? a. harvesting b. stress differentiation c. maintain brand loyalty d. gain awareness

d. gain awareness

decline a. gain awareness b. stress differentiation c. maintain brand loyalty d. harvesting, deletion

d. harvesting, deletion

soft drinks and presweetened breakfast cereals are at the ____ stage of the product life cycle a. introduction b. decline c. growth d. maturity

d. maturity

when a firm markets products under its own name and that of a reseller because each attracts different segments, it is called a ____ strategy a. multibranding b. multiproduct c. private labeling d. mixed branding

d. mixed branding

for firms competing in the global marketplace, "country of origin" advertised on product is an example of which kind of benefit added by packaging and labels? a. functional b. aesthetic c. communication d. perceptual

d. perceptual

one of the traits of service marketing is the quality of ____, in which the service must delivered at a specific time or it is lost a. variability b. intangibility c. self-service d. perishability

d. perishability

nonprofits like public schools and hospitals often use ____ in the form of public service announcements to disseminate their messages a. sales promotion b. personal selling c. advertising d. publicity

d. publicity

if a product line extension is very similar to the original product, it could ____ sales for the core brand a. increase b. negate c. equal d. reduce

d. reduce

sometimes in order to reach a new market, a product must be... a. declining b. unavailable c. downsized d. repositioned

d. repositioned

some firms use ____ for each of their products, in addition to the family brand, to distinguish different parts of the product line a. private brands b. copycat brands c. cobrands d. subbrands

d. subbrands

primary demand, often stimulated during the introduction stage, is... a. the preference for a specific brand b. a preference for an inexpensive brand c. a desire for a product because of limited availability d. the desire for the product class

d. the desire for the product class

value barriers a. the product is not compatible with existing habits b. the consumer has fears regarding physical, economic, or social effects c. there are cultural differences or image problems d. the product provides no incentive to change

d. the product provides no incentive to change

brand licensing is most common for... a. dental hygiene products b. rugs c. cars d. toys

d. toys

not every ____ follows the same life cycle curve, a high-learning one may stay in the ____ stage for a very long time

product, introductory