UNT MKTG 3650 - Exam 2 Concept Checks

The ad (below) suggests that the advertiser probably employed which of the following competitive positioning strategies? pepsidac.jpg 1. "Like, and better than." 2. "Different from competitors." 3. "Away from competitors." 4. "Like, but not necessarily better than."

1. "Like, and better than."

The battery-powered hand drill in the picture is best classified as: handdrill.jpg 1. Accessory equipment. 2. Operating supply. 3. A service. 4. An installation. 5. A manufactured or component part.

1. Accessory equipment.

The oil drilling platform depicted below is best classified as: oilrig.jpg 1. An installation. 2. Operating equipment. 3. A component part. 4. Operating supply. 5. Accessory equipment.

1. An installation.

Which of the following segmentation bases is most consistent with the tenets of the marketing concept? In other words, if you are a strong advocate of the marketing concept, which of the following segmentation bases will be most consistent with your "philosophy of doing business?" 1. Benefits. 2. Self-concept. 3. Age. 4. Lifestyle. 5. Income

1. Benefits

The following ad for Gillette suggests that the marketer probably employed which type of market segmentation base? (Gillette Mach 3 ad) GilletteMach3.jpg 1. Benefits or product attributes 2. Gender 3. Lifestyle 4. Age 5. Income

1. Benefits or product attributes

Normally geographic roll-out for a new product begins in geographic areas removed from the product's original test market locations in case further test marketing may be required for fine-tuning the marketing mix as commercialization progresses. 1. False 2. True

1. False

Cappio was the first canned ready-to-drink coffee on the market. It had to create the demand for the product category. As soon as demand for the product was shown to exist, Coke and Pepsi began promoting their own brands of canned, ready-to-drink coffee. During which stage of the product life cycle would you expect to see such activity occurring? 1. Growth. 2. Maturity. 3. Introduction. 4. Decline. 5. Development.

1. Growth.

During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands. 1. Growth. 2. Decline. 3. Introduction. 4. Development. 5. Maturity.

1. Growth.

Mazda is a car manufacturer that has known some highs and lows during recent years. 1989 was one of its highest years. In that year it introduced the Miata, a two-seat convertible. The recession of the early 1990s and some problems with its U.S. marketing programs caused the company's sales to slide downward. Mazda's sales in 1995 were 24 percent lower than they had been the preceding year. In January 1996, sales were 18 percent lower than they had been in January 1995. Mazda hopes this trend will be reversed by its MPV minivan. Mazda has positioned its van as a cross between a standard minivan and a sport utility vehicle. What differentiates the MPV from the competition is its rear-wheel drive. When Mazda was trying to decide what type of vehicle was most likely to bring it out of its slump, it knew that it needed to use a market segmentation strategy. The first thing Mazda had to do when it segmented the automobile-buyer market was to: 1. Identify the current and potential needs of the market (assuming that a benefit segmentation base is desirable). 2. Identify the characteristics that distinguish each segment 3. Develop several prototypes 4. Do test marketing to determine what customers in the segments really like. 5. Modify the company's mission statement to bring it in line with its new segmentation strategy

1. Identify the current and potential needs of the market (assuming that a benefit segmentation base is desirable).

Which of the following is an unlikely management strategy to use for a product in the decline stage of its product life cycle? 1. Increase the depth of the product line by adding new line extensions or flanker brands. 2. Prune out unprofitable models and sizes. 3. Cut all costs to the bare minimum. 4. Revitalize the product in some way in order to attract new users. 5. abandon the product.

1. Increase the depth of the product line by adding new line extensions or flanker brands.

Which of the following best explains why the Kroger supermarket chain markets its own line of canned fruits and vegetables under the Kroger private label? 1. Kroger can sell its brands at prices below those of producers' brands and still earn satisfactory profits 2. This strategy decreases Kroger s control over its own market. 3. This strategy encourages consumers to comparison shop. 4. Kroger s customers usually prefer producers' brands. 5. This strategy increases the likelihood that the producer will heavily advertise Kroger s canned products.

1. Kroger can sell its brands at prices below those of producers' brands and still earn satisfactory profits

When Excedrin introduced its new Excedrin Migraine into its product line of pain relievers, it is introducing what we call a: 1. Line extension. 2. Brand License. 3. Category extension. 4. Brand extension. 5. Flanker brand.

1. Line extension.

Industry sales are growing, but the rate of growth has slowed dramatically. The number of competitors is increasing and individual firms are spending large sums in order to buy market share from one another. As a result of increased marketing costs, profits are eroding. Which stage of the product life cycle seems to be indicated? 1. Maturity. 2. Introduction. 3. Growth. 4. Development. 5. Decline.

1. Maturity.

Products like Campbell's soups have been around for decades. Now Campbell spends much of its advertising dollars on publishing recipes that use Campbell's soups as one of their main ingredients. This strategy suggests that Campbell's soup is in the _____ stage of its product life cycle. 1. Maturity. 2. Introduction. 3. Growth. 4. Development. 5. Decline.

1. Maturity.

Sony Corporation conducted a series of consumer use tests in the 1990's in which consumers were given samples of its experimental digital camera. Participants were instructed to use the camera for all their picture-taking for the next 30 days. At the end of that time, participants were asked to a focus group session in which they were encouraged to elaborate on their usage experiences. Sony hoped that ideas for product modifications would emerge from the focus group that could be incorporated into the camera's final design. Sony was most likely employing which new product idea generation technique? 1. Problem analysis. 2. Attribute listing. 3. Test marketing. 4. Depth interviewing. 5. Brainstorming.

1. Problem analysis.

In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small regional soft drinks, such as Big Red, Cheerwine, and Vernors. What type of product strategy would you expect these small bottlers to use? 1. Product differentiation. 2. Product divestment. 3. Harvesting. 4. Product diversification. 5. Product line pruning.

1. Product differentiation.

A firm that wants to sustain its revenues should engage in new product development because: 1. Products inevitably pass through a life cycle that culminates in the demise of the product. 2. New products are always more profitable 3. Consumers do not buy products that are not new and innovative 4. Patent protection lasts for only 17 years and new products must be ready when patents expire. 5. Federal regulations require that a certain percentage of a company s products must be new

1. Products inevitably pass through a life cycle that culminates in the demise of the product.

The step(s) in the market segmentation process in which marketers employ a wide range of demographic traits, mediagraphics, psychographics, and attitudes typically is (are)(select all that apply): 1. Profiling market segments 2. Creating market segments 3. Evaluation of market segments 4. Targeting market segments. 5. Positioning to market segments.

1. Profiling market segments 2. Creating market segments

Which of the following are characteristic of installations (select all that apply)? 1. Tend to be 'expensed' over time. 2. Are relatively high cost items. 3. Tend to be capitalized on balance sheets. 4. Contribute significantly to the scale of operations. 5. Are 'used up' in daily operations.

1. Tend to be 'expensed' over time. 2. Are relatively high cost items. 3. Tend to be capitalized on balance sheets. 4. Contribute significantly to the scale of operations.

Which of the following statements is most correct when examining the diagram below? Restaurants.jpg 1. The distances between brands (dots on the diagram) represent subjects' judgments about how similar or dissimilar brands are to one another. 2. The distances between brands directly represent the degree to which brands are in competition with one another. 3. The distances between brands represent the relative sizes of the markets for each of the brands. 4. The distances between brands represent the relative profitability for each of the brands based on the dimensions indicated. 5. None of the above is correct.

1. The distances between brands (dots on the diagram) represent subjects' judgments about how similar or dissimilar brands are to one another.

The 'core' product is most closely associated with: 1. The fundamental benefits that the product delivers to buyers. 2. The 'total' product, including the actual physical product and the extra services provided. 3. The 'extra services' that provide added utility to customers, such as credit and delivery. 4. The actual physical product that delivers benefits to the buyer. 5. The product's brand name plus the actual physical attributes of the product.

1. The fundamental benefits that the product delivers to buyers.

Samantha is the marketing manager for a large consumer goods firm. Based on the results of a survey-based market segmentation study, Samantha has decided to segment the firm's market into 'usage rate' or 'consumption rate' segments. The results of the study identified a sizable 'heavy half' that Samantha decided to target because she has always assumed that the most profit potential exists with this segment. Samantha may be guilty of committing __________________ . 1. The majority fallacy. 2. Marketing myopia. 3. The 80-20 principle. 4. Statistical sampling error. 5. None of the above.

1. The majority fallacy.

The first four steps in the new product development process are particularly critical because: 1. These stages deal with ideas or 'concepts on paper' and are the least expensive steps. 2. These steps provide the best information for projecting whether the product will succeed or fail. 3. These steps include actually developing the physical product so that we can see how it will really function before committing to commercialization. 4. These steps are mandated by federal law we must be able to demonstrate that for all new products introduced that these steps were adequately performed. 5. None of the above is true of the first three steps.

1. These stages deal with ideas or 'concepts on paper' and are the least expensive steps.

Mass marketing (as contrasted with market segmentation) is more likely to be a viable strategy when the firm anticipates that scale economies will lead to cost reductions and lower prices for customers. 1. True 2. False

1. True

A _____ is a brand that is given legal protection because, under the law, it has been appropriated by one seller. 1. trademark 2. grade label 3. generic name 4. family brand 5. private brand

1. trademark

Examine the image below. The image best illustrates which of the following? Mr.Whipple.jpg 1. The service mark. 2. A trade character. 3. The brand mark. 4. A brand name. 5. The logo.

2. A trade character.

Product usage tests are commonly employed during new product development because they provide knowledge concerning (select all that apply): 1. Customers' reactions to anticipated market promotions and other forms of communication. 2. Ability of the product to deliver the benefits envisioned by the maker. 3. How the product can be abused. 4. The basic functionality of the product -- will it work as envisioned? 5. Customers' reactions to anticipated prices and marketing communications.

2. Ability of the product to deliver the benefits envisioned by the maker. 3. How the product can be abused. 4. The basic functionality of the product -- will it work as envisioned? Response Feedback: The product usage tests are not intended to assess the affect of the marketing communications. They are intended solely to aid further product development and refinement

Which of the following segmentation bases best illustrates how market segments were created in the toothpaste and snack food studies presented in class? 1. Income. 2. Benefits. 3. Age. 4. Lifestyle. 5. Self-concept.

2. Benefits

Being too quick to criticize new product ideas is considered to be one the biggest pitfalls of _______________ . 1. Attribute listing. 2. Brainstorming. 3. Focus groups. 4. Problem analysis. 5. Test marketing.

2. Brainstorming.

Management is in the _____________ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product. 1. Prototype development 2. Business analysis 3. Environmental audit 4. Test market 5. Idea screening

2. Business analysis

Which of the following products is characterized by the requirement for 'intensive distribution.' 1. Specialty goods. 2. Convenience goods. 3. Accessory equipment. 4. Installations. 5. Shopping goods.

2. Convenience goods.

"Market positioning" as a component of the marketing management process involves: 1. Determining the best physical location for products on the retail shelf 2. Creating the desired image for the brand in the minds of the firm's customers 3. Identifying and satisfying the wants and needs of customers in identified target markets 4. Designing competitive marketing programs consisting of product, price, promotion, and distribution 5. None of the above.

2. Creating the desired image for the brand in the minds of the firm's customers

Because data are easily collected, readily available in secondary sources, and often are highly correlated with consumer wants and needs, __________________ is the most commonly employed segmentation base used in marketing applications. 1. Usage occasion. 2. Demographic. 3. Life style. 4. Geographic. 5. Benefit.

2. Demographic.

'Check sheets' and weighted point evaluation models are most likely to be employed in which stage of the new product development process? 1. Idea generation. 2. Idea screening. 3. Test market. 4. Prototype development. 5. Commercialization.

2. Idea screening.

As described by the product life cycle, the profit curve for most new products: 1. Is negative during all of the growth stage of the product life cycle. 2. Is negative through most (perhaps all) of the introductory stage of the product life cycle 3. Is unaffected by the product life cycle 4. Has exactly the same shape as the sales volume curve. 5. Will not vary from product to product.

2. Is negative through most (perhaps all) of the introductory stage of the product life cycle

To get our bodies into better physical condition, we know we need to exercise, but many of us worry about what we look like while we're exercising. We also may want to exercise at odd times of the day when most gyms are closed. Advertisers of home fitness equipment have taken particular advantage of these facts. They are, in part, probably using ________________ segmentation. Select all that apply. 1. Geographic. 2. Life-style. 3. Usage occasion. 4. Usage-rate. 5. Demographic.

2. Life-style.

The below ad (Marlboro) suggests that the advertiser probably employed which of the following positioning strategies? marlboro.jpg 1. Age. 2. Lifestyle. 3. Consumption or usage rate. 4. Income. 5. Usage Occasion.

2. Lifestyle.

Procter and Gamble makes extensive use of 'individual branding' for items in most of its product lines. Which of the following is least likely to be an advantage of this strategy? 1. Allows P&G to target somewhat different market segments with different brands. 2. Makes it easier and cheaper to launch new products due to the common image associated with all P&G brands. 3. Protects against possible 'repercussion' on the image / sales of existing product items when a new item is launched. 4. Encourages "variety seeking" for P&G products instead of competitors' products. 5. None of the above is correct -- all are distinct advantages of this strategy.

2. Makes it easier and cheaper to launch new products due to the common image associated with all P&G brands.

Manufacturers of national brands generally will also produce products under private labels. This is done because: 1. The Sherman Anti-Trust Act and other Federal laws require manufacturers to accept private label contracts in order to preserve industry competition and provide consumers with a better choice of products. 2. Manufacturers of national brands often cannot sell all their output under their own brands. 3. Most large retailers have backward integrated into manufacturing and use private labels as a way to expand the manufacturer s product mix. 4. Manufacturers find private labels to be more profitable than their own brands. 5. None of the above.

2. Manufacturers of national brands often cannot sell all their output under their own brands.

Brand product life cycles generally are more erratic in shape and duration than are product category life cycles because: 1. Brand life cycles are composites of various industry life cycles i.e. life cycles for several product categories or classes are averaged to yield the brand life cycle 2. Marketing managers are continually adjusting their marketing programs for brands as market and environmental conditions change 3. Life cycles for product categories are not affected by changing marketing environments 4. All of the above 5. None of a, b, c above.

2. Marketing managers are continually adjusting their marketing programs for brands as market and environmental conditions change

Ads and packaging for Vaseline always present the brand as Vaseline brand petroleum jelly because 1. Few people know about Vaseline and the manufacturer wants to inform consumers about the type of product 2. The manufacturer hopes that by linking the brand name with a name for the product category, the Vaseline brand will be protected from becoming generic in use 3. Federal legislation requires that information about the brand and the product type appear on the package an in all ads 4. The naming convention is standard in this industry 5. None of the above is correct.

2. The manufacturer hopes that by linking the brand name with a name for the product category, the Vaseline brand will be protected from becoming generic in use

"Mass marketing" is most consistent with the production concept. 1. False 2. True

2. True

Frito Lay test marketed a new flavored potato chip fundamentally identical to Procter & Gamble's Pringles line of chips. Sales were dissappointing as revenues were not even high enough to cover the product's costs. Frito Lay decided not to commercialize the product primarily because the were afraid the product would be a(n) _______________ ? 1. Marginal failure. 2. Miserable performer. 3. Absolute failure. 4. Market failure. 5. Relative failure.

3. Absolute failure.

The part of the brand that consists of words, letters, and/or numbers that can be vocalized is called the: 1. Trademark. 2. Generic brand name. 3. Brand name. 4. Copyright. 5. Brandmark.

3. Brand name.

From a customer-oriented perspective, the ideal basis for segmenting a market is with: 1. Where customers live. 2. When customers tend to use a product. 3. Customer's desired benefits or needs. 4. Customer demographics. 5. Product usage rates.

3. Customer's desired benefits or needs.

The _____ of a new product is the process by which an innovation is spread through a social system over time. 1. Differentiation. 2. Adoption. 3. Diffusion. 4. Diversification. 5. Osmosis.

3. Diffusion.

Like many characters created for commercials, the chihuahua in the Taco Bell commercials has appeared on T-shirts, caps, cups, and posters--some licensed, many not. Soon some other commercials will capture the attention of the American consumer, and some other character(s) will appear on T-shirts, caps, cups, and posters. These commercial-derived products are examples of: 1. Forecasted trends. 2. Fashions. 3. Fads. 4. Product positioning. 5. Postponed obsolescence.

3. Fads.

Krups is famous for its state-of-the-art coffee maker, but the company also makes other small appliances, such as an ice cream maker. Each product bears the Krups name and carries on the Krups's reputation for high quality. Krups uses _____ branding. 1. Private. 2. Generic. 3. Family. 4. Multiple. 5. Individual.

3. Family.

Cannibalization is most likely to be a problem with which of the following branding strategies? 1. Brand extension. 2. Product category extension. 3. Flanker branding. 4. Brand licensing. 5. All of the above.

3. Flanker branding.

Since California has legislated that the state's drivers must begin using alternative fuel vehicles, Ford Motor Company has introduced just for that state a full-size truck that runs on natural gas. This is an example of ________________ segmentation. 1. Behavioral. 2. Demographic. 3. Geographic. 4. Psychographic. 5. Usage-rate.

3. Geographic.

You are the brand manager for Tide (P&G brand) and are considering ways to revive lagging sales. Recognizing that your brand and the product category as a whole are 'mature,' you are examining several strategic options. Which of the following is least likely to be a viable alternative to accomplish your sales goals? 1. Re-launch Tide using a new positioning strategy i.e. reposition the brand. 2. Introduce a 'brand extension' to capitalize on Tide's existing brand equity. 3. Harvest the brand. 4. Introduce a "feature improvement" via a change in packaging that adds a 'snap-top' lid. 5. Introduce a 'quality improvement' (e.g. "new and improved") under the same brand.

3. Harvest the brand.

The gasoline-electric vehicle marketed by Honda apparently is viewed negatively by many Texans because it doesn't fit their expectations of power and performance. Apparently, the new Honda may be slow to diffuse in the market because: 1. Lacks relative advantage. 2. Is too complex of a vehicle to operate. 3. It lacks value compatibility. 4. Is difficult to sample on a 'trial' basis. 5. Lacks aesthetic appeal.

3. It lacks value compatibility.

How might Whirlpool benefit if appliances it manufactured were sold at Sears under the Kenmore brand name? 1. It would allow Whirlpool to increase plant capacity. 2. It would allow Whirlpool to generate additional sales volume. 3. It would allow Whirlpool to do all of the above. 4. It would allow Whirlpool to use its production resources more effectively. 5. It would allow Whirlpool to utilize its working capital more effectively.

3. It would allow Whirlpool to do all of the above.

Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of the very last people in the small Western city in which he lives to buy a microwave oven. When it comes to the adoption of microwave ovens, Al is in the _____ category. 1. Late majority. 2. Innovators 3. Laggards. 4. Early adopters 5. Early majority.

3. Laggards.

One of the advantages of using family branding is that the strategy: 1. Limits the depth of the product line. 2. Limits the breadth of the product mix. 3. Makes it less expensive to introduce new, related products. 4. Guarantees the success of all new products. 5. Requires the development of a variety of channels of distribution for each product.

3. Makes it less expensive to introduce new, related products.

Ford motor company purchases anti-freeze in bulk from DuPont Corporation. This anti-freeze is placed in the radiators of its new cars prior to their being shipped to the dealers. The anti-freeze is: 1. Raw material. 2. Accessory equipment. 3. Manufactured or component part. 4. Manufactured or fabricating material. 5. Operating supply.

3. Manufactured or component part. Response Feedback: The product is considered to be a component part since it is part of the new car. It is not an operating supply.

According to the characteristics of a good brand name, is "Duncan Hines" a good name for cake mixes? Assume that you have never heard of this brand before. 1. No, because it cannot be protected under the Lanham Act. 2. Yes, because it is not regional sounding. 3. No, because it suggests nothing about the product. 4. Yes, because the name directly suggests the benefits to be derived from the product. 5. Yes, because it sounds like a the name of a brand of kitchen appliance.

3. No, because it suggests nothing about the product.

Which of the following best describes the primary distinction between component parts and fabricating materials? 1. Parts undergo additional extensive processing as they are combined to make the larger product. 2. Materials undergo very little added processing as they are combined to make the larger product. The materials are always uniquely identifiable. 3. Parts undergo little or no additional processing as they are combined into the larger product. The parts are always uniquely identifiable. 4. The only processing that materials receive is to make them easier to ship, or to preserve them until they can be used. Parts undergo much more extensive processing. 5. None of the above is correct.

3. Parts undergo little or no additional processing as they are combined into the larger product. The parts are always uniquely identifiable.

The company that is the first to introduce a new type of product to market often achieves a: 1. Diversification advantage. 2. Market development benefit. 3. Pioneer advantage. 4. Market penetration advantage. 5. Product development feature.

3. Pioneer advantage.

The Clorox Company, a manufacturer of bleach, has added a line of bleach-free disinfectant wipes for cleaning up spills and sticky fingers. With the addition of the Clorox disinfecting wipes, the firm has changed its: 1. Product line depth. 2. Position in the product life cycle. 3. Product mix width or breadth. 4. Market position. 5. Market segmentation strategy.

3. Product mix width or breadth.

Hismanal is a drug that will eliminate all of your seasonal allergy complaints without making you drowsy. In terms of currently available allergy remedies that do make many people drowsy, Hismanal has greater ______ for allergy sufferers, which should speed its diffusion rate. 1. Aesthetics. 2. Compatibility. 3. Relative Advantage. 4. Complexity. 5. Trialability.

3. Relative Advantage.

One of the difficulties with using family branding is that the strategy: 1. Is useful only with consumer goods. 2. Requires the development of a variety of channels of distribution for each product. 3. Requires a great emphasis on consistent quality. 4. Makes it more difficult to introduce new, related products. 5. Works only with edible products.

3. Requires a great emphasis on consistent quality.

Which of the following is least likely to contribute to the general increase in profits experienced by products that have entered the growth phase of the PLC? 1. Revenues are increasing due to the increased popularity and sales of the product 2. Unit costs are declining due to scale economies in production 3. Spending on advertising and other forms of promotion tends to be drastically reduced during this stage. 4. Unit costs are declining due to decreases in variable costs per unit resulting from experience curve gains 5. None of the above is correct they all are likely to occur!

3. Spending on advertising and other forms of promotion tends to be drastically reduced during this stage.

The breadth or width of a firm's product mix refers to: 1. The number of different models available in a given product line. 2. Sales volume in each product line. 3. The number of product lines carried. 4. The market share for each product item in the mix. 5. The assortment of sizes and colors within each product line.

3. The number of product lines carried.

Mass marketing (as contrasted with market segmentation) is most likely to be a viable strategy when: 1. The market contains a large number of competitors, all of whom target one or more specific market segments within the overall product/market. 2. The product is in the decline stage of its life cycle and competitors are systematically leaving the market. 3. The product is in the introductory stage of the life cycle. Few competitors exist, the product is rather undifferentiated, and consumers' wants & needs are rather basic or simple with respect to the product in question. 4. The product is highly differentiated, with characteristics and benefits that appeal to a limited number of people in the overall product/market. 5. None of the above.

3. The product is in the introductory stage of the life cycle. Few competitors exist, the product is rather undifferentiated, and consumers' wants & needs are rather basic or simple with respect to the product in question.

With respect to the PLC, the x-axis most closely represents: 1. Sales 2. Costs 3. Time 4. Product Type 5. None of the above.

3. Time

Last week Janet purchased her first bottle of Excedrin Migraine. She wanted to see if the product's pain-relieving benefits were any better than the brand she was using. Janet is most likely in the ___________ stage of the new product adoption process. 1. Awareness. 2. Information. 3. Trial. 4. Evaluation. 5. Adoption.

3. Trial.

The Bayer PM ad (below) suggests that the advertiser probably employed which of the following positioning strategies? bayerpm.jpg 1. Income. 2. Consumption or usage rate. 3. Usage Occasion. 4. Age. 5. Lifestyle.

3. Usage Occasion.

Procter & Gamble markets Zest, Safeguard, Camay, and Lava brand bar soaps. Zest is a "get-you-started in the morning" soap. Safeguard is marketed as a germ-fighter. Camay cleans without drying or injuring the skin. Lava is for tough cleaning jobs. This illustrates the use of: 1. a family branding strategy. 2. single-segment marketing. 3. a multiple-brand strategy. 4. a market aggregation strategy. 5. mass marketing.

3. a multiple-brand strategy.

Tarzan dolls, bookbags, sweatshirts and posters seemed to become popular overnight. After about six months, you were able to buy Tarzan products at flea markets and garage sales for less than 25 percent of their original cost. Tarzan-related products exemplify: Selected Answer: 1. A fashion. 2. Technological obsolescence. 3. A style. 4. A fad. 5. Product positioning.

4. A fad.

Assume Kellogg's is planning to market a line of CD-ROM disks. Which of the following brand strategies would Kellogg's be LEAST likely to use? 1. An individual or multiple branding strategy. 2. A distributor's brand (private label). 3. A wholesaler's brand. 4. A family brand with the Kellogg's name.

4. A family brand with the Kellogg's name.

The 'level of product' that most closely represents the 'extra utility' provided by services such as credit, warrantees, delivery, post-sale service, etc. is called the: 1. In-tangible product 2. Actual or tangible product 3. Core product 4. Augmented product 5. Total Product

4. Augmented product

Which of the following is the most likely reason the advertiser ran the Rollerblade ad below? RollerBlad.jpg 1. To differentiate the brand from its competitors. 2. The brand is in the decline stage of the PLC and this is an attempt to rejuvenate sales. 3. They are probably trying to pave the way to begin licensing the brand. 4. Because the brand is in danger of becoming 'generic' and the ad emphasizes the equity associated with brand ownership 5. None of the above seems plausible.

4. Because the brand is in danger of becoming 'generic' and the ad emphasizes the equity associated with brand ownership

Mazda is a car manufacturer that has known some highs and lows during recent years. 1989 was one of its highest years. In that year it introduced the Miata, a two-seat convertible. The recession of the early 1990s and some problems with its U.S. marketing programs caused the company's sales to slide downward. Mazda's sales in 1995 were 24 percent lower than they had been the preceding year. In January 1996, sales were 18 percent lower than they had been in January 1995. Mazda hopes this trend will be reversed by its MPV minivan. Mazda has positioned its van as a cross between a standard minivan and a sport utility vehicle. What differentiates the MPV from the competition is its rear-wheel drive. One of the segments of the market that Mazda targeted was the group of automobile owners who want to be able to tow their boats and campers behind their minivans. Which segmentation base is implied? 1. Product 2. Geographic 3. Psychological 4. Benefit 5. Demographic

4. Benefit

When video games were first introduced, they were played on 16-bit game computers. As soon as the 32-bit machines were introduced, sales for the 16-bit games and players quickly fell. The 16-bit product category entered the _____ stage of its product life cycle. 1. Introduction. 2. Development. 3. Maturity. 4. Decline. 5. Growth.

4. Decline.

In which of the adopter categories will opinion leaders most likely be found? 1. Early majority. 2. Innovators. 3. Late majority. 4. Early adopters. 5. Laggards.

4. Early adopters.

Suppose a chain of hair salons which targets children decides to locate its stores only in the suburbs. This would be an example of the use of a _________ segmentation base. 1. Usage-rate. 2. Demographic. 3. Behavioral. 4. Geographic. 5. Psychographic

4. Geographic.

The French prefer to buy top-loading clothes washers. The rest of Europe uses front-loaders. In developing its strategy for marketing to these nations, Whirlpool had to use ____________ segmentation to make sure that its washers suited the tastes of the consumers in each of the European countries. 1. Behavioral. 2. Demographic. 3. Usage-rate. 4. Geographic. 5. Psychographic.

4. Geographic.

The classification scheme for consumer products divides these products into three basic categories defined by: 1. The types of benefits the product delivers 2. The general intensity of distribution for the products 3. How the product is used by the consumer 4. How much effort is expended in the purchase process 5. None of the above.

4. How much effort is expended in the purchase process

Dial Company introduced liquid soap in 1988. Today competition in the industry is intense. The manufacturers of liquid soap are adopting a defensive positioning strategy and intensive product distribution. Their promotions appeal to brand loyalty. From this information, you know that liquid soap is in the _____ stage of its product life cycle. 1. Development. 2. Growth. 3. Decline. 4. Maturity. 5. Introduction.

4. Maturity.

All of the products offered for sale by a firm characterize its: 1. Brand set. 2. Product item set. 3. Product portfolio. 4. Product mix. 5. Product line.

4. Product mix.

The distinct lettering that identifies a brand is generally referred to as: 1. The brand mark 2. The service mark 3. The trademark 4. The logo or logotype 5. None of the above.

4. The logo or logotype

That aspect of a 'product' that is most responsible for creating 'brand image' is: 1. Tangible or physical product. 2. Augmented product. 3. Core product. 4. Total product. 5. Customer service.

4. Total product.

The biggest potential drawback to co-branding is: 1. an inability to participate in any other licensing agreements 2. lower revenue to both participants 3. the creation of a differential advantage over competitors 4. the risk of damaging a brand name if the cooperative endeavor fails 5. the fact that this arrangement can sometimes be legally defined as a tying contract

4. the risk of damaging a brand name if the cooperative endeavor fails

During the introductory stage of a product's life cycle: 1. The promotional program is designed to stimulate demand for the product category. 2. There is very little direct competition. 3. Costs are high. 4. The profit curve is negative through most (perhaps all) of this stage. 5. All of the above are true.

5. All of the above are true.

The ad (below) suggests that the advertiser probably employed which of the following positioning strategies? dietcoke.jpg 1. Consumption or usage rate. 2. Lifestyle. 3. Benefit. 4. Usage Occasion. 5. Attribute.

5. Attribute.

Campbell's recently ran a series of ads on TV in which a variety of new recipes for its soups were featured. This strategy generally is employed for products that are at the ______ stages of the PLC. 1. Maturity only. 2. Introduction only 3. Introduction & growth 4. Decline only. 5. Growth & maturity.

5. Growth & maturity.

The transition of a product into the decline stage of its PLC is most likely a result of: 1. Decision by the early and late majority to adopt the product. 2. Inability of the producer to find additional uses for the product that can be promoted to existing markets. 3. Entry of competitive brands into the market. 4. Transition of the product from exclusive or selective distribution to intensive distribution. 5. Introduction of a new, substitute technology.

5. Introduction of a new, substitute technology.

From a consumer's point of view, branding: 1. Makes it easier for a consumer to compare prices for different brands. 2. Makes it difficult for the seller to introduce new products to a company's line. 3. Substantially reduces a seller's promotional costs. 4. Increases price competition. 5. Means getting comparable quality with each purchase.

5. Means getting comparable quality with each purchase.

The 'convenience goods of the industrial market' are: 1. Component parts. 2. Fabricating materials. 3. Raw materials. 4. Services. 5. Operating supplies.

5. Operating supplies.

Candice insists on buying only Revlon cosmetics. Rather than purchasing other brands when Revlon is not available, Candice will postpone her purchase or drive substantial distances to find her preferred brand. To Candice, Revlon is what marketers refer to as a (select the best answer): 1. Convenience good or product 2. Consumer good or product 3. Shopping good or product 4. Status good or product 5. Specialty good or product

5. Specialty good or product

The following ad (Bayer PM) suggests that the advertiser probably employed which of the following segmentation bases? bayerpm.jpg 1. Lifestyle. 2. Consumption or usage rate. 3. Age. 4. Income. 5. Usage occasion.

5. Usage occasion.

The image below best illustrates a: perceptualmap.jpg a. Perceptual Map b. Positioning Map c. Brand Map d. Brand-Attribute Map e. None of the above.

a. Perceptual Map