Principles of Marketing Chapter 10

A combination of increasing competition and the inseparability of services lead service businesses to focus on.

convenience.

Management of the physical environment for services is sometimes known as ________ management.

Impression

The diffusion of innovation curve has five categories of consumers. Match the consumer category with the approximate percentage that the group represents as a whole in the market.

Innovators - 2.5% Early adopters - 13.5 % Early or late majority - 34% Laggards - 16%

For a low-learning product, which stage of the life cycle differs most from the typical curve?

Introduction

Which two of the following are ways that a product life cycle curve can vary?

Its characteristic shape Its overall length

The product ________ of prerecorded music includes product ________ like cassette tapes, CDs, and digital music.

class; forms

Brand Personality

common among successful and established brands, is a set of human characteristics that are associated with the brand name.

The product class of prerecorded music includes which product form?

compact disc

In addition to the traditional four Ps, which of the following are factors that also require effective management within service organizations?

Process Physical environment People

The growth stage of product life cycle is characterized by more competition and a ________ in sales.

Rapid Increase

Branding provides a way for a firm to

distinguish its products from competitors.

When Nestle or McDonald's modify their packaging to use more recyclable material, they are responding to

environmental concerns.

Typically speaking, during the introduction stage sales are ______ and profit is ______.

grow slowly: minimal

The Product Life Cycle

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

Product Repositioning

means changing the product position in the customer's mind

Easy Off, Glass Plus, Cling Free are good brand name because they

suggest the product benefits.

Put the following steps for building brand equity in order, with the first step on top.

1.Develop positive brand awareness 2.Establish a brand's meaning in consumers' mind 3.Elicit proper consumer responses 4.Create a consumer-brand connection

The early majority represents approximately ______ of the total consumer market and is crucial to the profitability of a product or service. Without them, the market for the product or service will typically fail to ever become large enough.

34%

Which of the following are characteristics of the growth stage of a product life cycle? (Check all that apply.)

An increase in the total industry sales An increase in the number of locations for distribution An increase in the number of competitors

Multiproduct branding is also called which two of the following?

Corporate branding Family branding

product modifcation

When P&G added vitamins to its Pantene shampoo and conditioner formulas, it used _________ to revamp the brand.

Multiproduct Branding

a company uses one name for all its products in a product class.

Product modification consists of altering the product's quality, performance, or

appearance

Innovators

are buyers of a product or service who are the very first ones to adopt it.

Packaging

can create customer value by offering communication, functional, and perceptual benefits. refers to any container in which a product is offered for sale and on which label information is conveyed.

An example of a company connecting with customers in its package redesign strategy is

creating a resealable package in response to consumer habits.

Brand Equity (Brand Extension)

defined as the added VALUE a brand name gives to a product beyond the function benefits provided. can provide a competitive advantage and consumers are also often willing to pay a higher price for a product with it.. An example of brand extension is Cosmopolitan magazine and Cosmopolitan yogurt.

The physical environment is important in the delivery of services because

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

One of the advantages of building strong brand equity is that often consumers are willing to _________ the product.

pay a higher price for

The benefits packaging and labeling provides a product include which of the following?

perceptual functional communication

Merrill Lynch's use of the bull in its ________ contribute to its image and positioning with consumers.

promotional efforts

Emphasis on availability, location, quality, and service, as well as a physical representation of the service encounter should be included in an organization's

promotional programs.

Pricing is an important indicator of ________; customers may worry about a ________.

quality; $100 surgery

Which of the following is indicative of a low-learning product?

sales that begin immediately

Both mass communication and technological change affect the product life cycle by _____.

shortening it

Product Line Extension

the practice of using a current brand name to enter a new market segment in its product class. BENEFITS: the brand equity of the multiproduct brand.

Mix

A firm can reposition its product by changing one or more of the marketing ________ elements.

Which two of the following criteria are often used in naming successful brands?

Emotional names Names without legal restrictions

When Harley-Davidson advertises to reinforce the perception that the brand is masculine, rugged, and individualistic, it is building brand

Personality

Private Branding (Reseller Branding)

Awareness will have to be built from scratch. Advertising and promotion are typically more expensive. When Rayovac manufactures batteries that are sold under the RadioShack brand, it is an example of _____________branding.

Which of the following are reasons that service marketers rely heavily on branding?

Branding helps convey an image of quality. Strong branding makes introduction of new services easier. Branding is a means of differentiation

Which of the following is true regarding the length of the product life cycle?

Consumer products often have shorter life cycles than business ones.

The _______ __________ represents the earlier half of the two largest categories of consumers on the diffusion of innovation curve

Early Majority

The Life Cycle

The different stages a product goes through during its existence is known as the product curve can vary in its shape and length and by the rate at which consumers adopt products. Besides sometimes developing new products, the product manager also manages an existing product through its Modifying the product, modifying the market, and repositioning the product are three ways to manage a product through

According to the diffusion of innovation curve, _______________ adopt a new product first and ___________ adopt it last.

innovators laggards

A basic decision in marketing products is _________ , Correct Unavailable, in which an organization uses a name, phrase, design, symbols, or combination of these to identify its products and distinguish them from those of competitors. 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.

Branding

Diffusion of Innovation

the process by which the use of a product spreads throughout a market group over time and over various categories of adopters. The way a product spreads through the population is known as A curve representing groupings of customers who adopt new products over a period of time illustrates the

The Maturity Stage

the product life cycle is characterized by a slowing of growth in total industry sales or product class revenue. 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 customers.

The diffusion of innovation curve shows the typical distribution of adoption for five different categories of consumers. Rank the order of these consumers, starting with the first group on the top and ending with the last adopter group on the bottom.

1. Innovators 2. Early Adopters 3. Early Majority 4. Late Majority 5. Laggards

For the effective management of services, the ________ are often supplemented by the additional components of people, the physical environment, and the process. Multiple choice question.

4P's

Fashion Product

A product life cycle curve that has a moderate introductory period, followed by popularity, decline, and repeated popularity best illustrates A ________ product's life cycle does not have the characteristic shape, but instead shows growth, decline, and then reemergence months, years, or even decades later.

Which of the following are strategies to modify the market?

Create new use situations Increase a product's use among existing customers Find new customers

The innovators and ________ belong to the critical groups of consumer that act as social leaders and influence others to adopt a new innovation. 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. The group of consumers who begin to use a product or service immediately after it has been adopted by the innovators are called the __________ ____________ .

Early Adopters

Creating brand ________ begins with establishing brand awareness and also includes establishing brand meaning and eliciting consumer judgments and feelings, and culminates with a consumer-brand connection

Equity

A product life cycle curve with rapid sales upon introduction followed by a rapid decline best illustrates a Novelty products with a short life cycle are which type of product?

Fad Product

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?

In the middle of the curve

Identify a correct statement about the life cycle of a product.

It depends on sales to consumers.

Finding new customers Increasing a Product's Use Creating a new use situation

LEGO is appealing to consumers outside its traditional market (boys) with a new product line for young girls called LEGO Friends. The Florida Orange Growers Association advocates drinking orange juice throughout the day rather than for breakfast only. Originally intended as a single pant for every activity, Dockers now promotes different looks for different occasions: work, weekend, dress, and golf.

When a brand name is already well established, as in the case of multiproduct branding, a firm typically spends _______ to develop consumer brand awareness when introducing a product line extension.

Less

Multibranding

Marriott International owns several brands of hotels at different price ranges, such as Marriott, Courtyard, and Fairfield Inn, in what is called a ________ strategy. When a firm uses a distinct name for each of its products, it is called a ________ strategy. ADVANTAGE: The failure of another product will not affect this brand. DISADVANTAGES: Awareness will have to be built from scratch. Advertising and promotion are typically more expensive.

Which of the following are the primary ways to manage a product through its life cycle?

Modifying the market Repositioning the product Modifying the product

The Decline Stage

Once sales and profits decrease for a product (the product drops) stage of the product life cycle, the company may eventually remove it from the market.

A trip to a Disney theme park reveals a careful integration of all service activities to connect with customers at each opportunity, which is an example of which P in services? The online retailer Zappos.com requires employees to complete a four-week customer loyalty program in delivering its "WOW" service, which is an example of which P in services?

People

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.

Price

A fad product's life cycle curve has a different shape than most products; it typically has which two of the following?

Rapid sales at introduction A rapid decline

If a product line extension is very similar to the original product, it could _______ sales for the core brand.

Reduce

Capacity Management.

The integration of the marketing mix with efforts to influence consumer demand efforts to influence consumer demand, since services are both inseparable and perishable.

Brand Extension

The practice of using a current brand name to enter a new market segment in its product class. Honda's established name for motor vehicles has allowed it to employ brand _________________, using its brand to sell products in other categories like snowblowers and marine engines.

Because of the inseparability of services, which of the following is true about the place (or distribution) of them?

The value of convenient distribution is now recognized.

Innovators on the diffusion of innovation curve are important to marketers because

They're the first to adopt a new product

A product life cycle curve with a long introductory period and extensive customer education requirements best illustrates a

high-learning product.

Product Manager

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

The Introduction Stage

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