Chap011-1
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Chap011-1

Course Number: PSY 1310, Spring 2011

College/University: Texas State

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Chapter 11 MANAGING PRODUCTS, SERVICES, AND BRANDS Test Item Table Major Section of the Chapter Level of Learning Level 1: Definition (Knows Basic Terms & Facts) Level 2: Conceptual (Understands Concepts & Principles) 1, 2 The Product Life Cycle (pp. 234-241) 3, 4, 12, 15, 16, 20, 24, 36, 52, 53, 55, 59, 64, 66, 69, 72, 73, 74, 75, 76, 202 7, 9, 10, 11, 13, 17, 19, 21, 23, 25, 28, 29, 30, 31, 35, 41,...

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11 MANAGING Chapter PRODUCTS, SERVICES, AND BRANDS Test Item Table Major Section of the Chapter Level of Learning Level 1: Definition (Knows Basic Terms & Facts) Level 2: Conceptual (Understands Concepts & Principles) 1, 2 The Product Life Cycle (pp. 234-241) 3, 4, 12, 15, 16, 20, 24, 36, 52, 53, 55, 59, 64, 66, 69, 72, 73, 74, 75, 76, 202 7, 9, 10, 11, 13, 17, 19, 21, 23, 25, 28, 29, 30, 31, 35, 41, 42, 46, 48, 49, 50, 51, 63, 65, 67, 77, 78, 79, 80, 81, 82 Managing the Product Life Cycle (pp. 241-243) 83, 87, 94, 104, 106, 107, 108 5, 6, 8, 14, 18, 22, 26, 27, 32, 33, 34, 37, 38, 39, 40, 43, 44, 45, 47, 54, 56, 57, 58, 60, 61, 62, 68, 70, 71, 201, 203, 204, 205, 206 93, 95, 103, 207, 209 Branding and Brand Management (pp. 244-249) 110, 111, 112, 114, 117, 136, 137, 138, 139, 140, 145, 150, 151, 153, 155, 157, 158, 161, 162, 211 163, 164, 169, 170, 171 116, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 147, 148, 149, 160, 210, 212, 213, 214, 215 165, 166, 167, 168, 172, 216 113, 115, 134, 135, 141, 142, 143, 144, 146, 152, 154, 156, 159 182, 187, 188, 196, 197 176, 177, 178, 179, 184, 185, 186, 191, 192, 194, 195, 198, 217, 218 180, 181, 183, 189, 190, 193 Gatorade: A Thirst for Competition (pp. 233-234) Creating Customer Value Through Packaging and Labeling (pp. 249-250) Managing the Marketing of Services (p. 250-252) Video Case: BMW: Newness and the Product Life Cycle (pp. 254-255) 199, 200 Note: Bold numbers indicate short essay questions. 653 Level 3: Application (Applies Principles) 84, 85, 86, 88, 89, 90, 91, 92, 96, 97, 98, 99, 100, 101, 102, 105, 109, 208 173, 174, 175 CHAPTER 11 MANAGING PRODUCTS, SERVICES, AND BRANDS MULTIPLE CHOICE QUESTIONS 11-1 CHAPTER OPENING EXAMPLE: GATORADE CONCEPTUAL Which of the following statements about Gatorade is true? a. b. c. d. e. Michael Jordan has been a Gatorade spokesperson. International opportunities were vigorously pursued. Distribution of Gatorade expanded first to include convenience stores and supermarkets. The original Gatorade was a liquid with a lemon-lime flavor. All of the above statements about Gatorade are true. Register to View AnswerPage: 233 Rationale: Stokely-Van Camp Co. bought the Gatorade formula in 1967. When Quaker Oats purchased Stokely-Van Camp in 1983, executives quickly grew sales through a variety of means including those mentioned above. 11-2 CHAPTER OPENING EXAMPLE: GATORADE CONCEPTUAL Which of the following statements about Gatorade is true? a. b. c. d. e. Gatorade began as a rehydration beverage for a football team. Gatorade has plans to expand to the Latin American market before the end of this decade. Gatorade was first only available through catalogs or mail order. The Federal Trade Commission protects the Gatorade brand name from becoming generic. All of the above statements about Gatorade are true. Register to View AnswerPage: 233 Rationale: Alternative a is true. The University of Florida football team physician concocted the beverage in 1965 as a rehydration beverage for the schools football team. Gatorade is sold in 47 countries including Latin America. Gatorade was first distributed through convenience stores and supermarkets. Companies, not the Federal Trade Commission, are responsible for protecting their own brand names. 11-3 PRODUCT LIFE CYCLE DEFINITION A concept that describes the stages a new product goes through in the marketplaceintroduction, growth, maturity, and decline is called: a. b. c. d. e. the retail life cycle. the product life cycle. the marketing mix. the product growth cycle. product commercialization. Register to View AnswerPage: 234; Figure 11-1 Rationale: Key term definitionproduct life cycle 654 11-4 INTRODUCTION STAGE DEFINITION The stage of the product life cycle when a product is first introduced to its intended target market is called the __________ stage. a. b. c. d. e. growth commercialization launch introduction awareness-trial Register to View AnswerPage: 234 Rationale: The product life cycle describes the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline. The introduction stage of the product life cycle occurs when a product is first introduced to its intended target market. 11-5 INTRODUCTION STAGE CONCEPTUAL Lack of profit in the introductory stage of the product life cycle is very often the result of: a. b. c. d. e. insufficient allocation of resources to the marketing mix. poor selection of distribution channels. high taxes. large investment costs in product development. ineffective execution of the marketing program. Register to View AnswerPage: 234 Other Location: web Rationale: The lack of profit is often a result of the large costs of product development. 11-6 INTRODUCTION STAGE CONCEPTUAL The marketing objective for a product in the __________ stage of the product life cycle is to promote consumer awareness and gain trial. a. b. c. d. e. introduction growth maturity decline product repositioning Register to View AnswerPage: 234 Other Location: web Rationale: The marketing objective for a company at the introduction stage is to promote consumer awareness and gain trial--the first purchase of a product by a consumer. 655 11-7 INTRODUCTION STAGE APPLICATION A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that we would watch the first episode. Which of the following statements about televised game shows is true? a. b. c. d. e. Who Wants to Be a Millionaire was in the introduction stage of the product life cycle of televised nighttime game shows when it premiered. Because television has been around for many years, all programs fall naturally into the maturity stage. Televised programs are either in the introduction stage or the growth stage and are discontinued when they move into the maturity stage. All televised programming uses a three-stage product life cycle--growth, maturity, and decline. The product life cycle is totally inapplicable to any television genre. Register to View AnswerPage: 234 Rationale: The televised game show was a new product category on television and as such was in the introduction stage. Because producers are always trying to gain and keep audiences, program types move in and out of favor, which means new products are introduced and others go into decline. There are program types today that can be said to be in their maturity such as news programs like Meet the Press. The four-stage product life cycle is applicable to television genres. 11-8 INTRODUCTION STAGE CONCEPTUAL A product in the introduction stage of the product life cycle should have which of the following marketing objectives? a. b. c. d. e. to gain awareness and stimulate trial to stress differentiation to maintain brand loyalty to gain as much distribution as possible to reveal a marketing niche Register to View AnswerPage: 234 Rationale: The marketing objective for a product at the introduction stage is to promote consumer awareness and gain trial--the first purchase of a product by consumer. 656 11-9 INTRODUCTION STAGE APPLICATION One of the newest types of television shows is the category called reality shows. According to the product life cycle, what was the objective of the marketers of these reality shows when they were in the introduction stage of the product life cycle? a. b. c. d. e. to gain awareness and stimulate trial to stress differentiation to maintain brand loyalty to gain as much distribution as possible to reveal a marketing niche Register to View AnswerPage: 234 Rationale: The marketing objective for a company at the introduction stage is to promote consumer awareness and gain trial--the initial watching of the TV show by viewers. 11-10 PRIMARY DEMAND APPLICATION Gillette spent $35 million in advertising to introduce the Sensor razor to consumers. Such expenditures are often made to stimulate __________, or desire for the product class, rather than for a specific brand, when there are no competitors with the same product. a. b. c. d. e. additional marketing research innovative sampling primary demand initial data gathering repeat purchase Register to View AnswerPage: 234 Rationale: Text term definitionprimary demand 11-11 PRIMARY DEMAND APPLICATION Scientists have discovered a new medical treatment but before they can market it, physicians and patients must be aware of its existence. In other words, its manufacturer must create __________ demand. a. b. c. d. e. selective primary derived generic secondary Register to View AnswerPage: 234 Rationale: Primary demand is the desire for the product class rather than for a specific brand since there are few competitors with the same product. In this case, the medical treatment is new so first the physicians and patients must be made aware of its existence. 657 11-12 PRIMARY DEMAND DEFINITION During the introduction stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for an entire product class rather than for a specific brand. The consumer desire that is stimulated is referred to as __________ demand. a. b. c. d. e. selective primary derived generic secondary Register to View AnswerPage: 234 Rationale: Text term definitionprimary demand 11-13 PRIMARY DEMAND APPLICATION The popular "Got Milk" advertising campaign was sponsored by the National Milk Board to encourage more people to drink milk. This ad campaign stimulated __________ demand. a. b. c. d. e. selective primary derived generic secondary Register to View AnswerPage: 234 Rationale: When expenditures are made to increase desire for a product class, such as milk, this is an example of stimulating primary demand. 11-14 PRIMARY DEMAND CONCEPTUAL Promotional expenditures at the introduction stage of the product life cycle are spent on: a. b. c. d. e. contests and sweepstakes. creating selective demand. creating primary demand. personal endorsements. maintaining brand loyalty. Register to View AnswerPage: 234 Rationale: Companies often spend heavily on advertising and other promotion tools to build awareness among consumers in the introduction stage. These expenditures are often made to stimulate primary demand, or desire for the product class rather than for a specific brand since there are few competitors with the same product. 658 11-15 SELECTIVE DEMAND DEFINITION During the growth stage of the product life cycle, promotional expenditures are made to stimulate consumer desire for a specific brand due to increased competition. The consumer desire that is stimulated is referred to as __________ demand. a. b. c. d. e. selective primary derived generic secondary Register to View AnswerPage: 235 Rationale: Text term definitionselective demand 11-16 SELECTIVE DEMAND DEFINITION As competitors introduce their own products, and the product progresses along its life cycle, company attention is focused on creating __________ demand, or demand for a specific brand. a. b. c. d. e. selective primary derived generic secondary Register to View AnswerPage: 235 Rationale: Text term definitionselective demand 11-17 SELECTIVE DEMAND APPLICATION 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. b. c. d. e. selective primary derived generic secondary Register to View AnswerPage: 235 Rationale: Northland was interested in creating awareness for its brandnot its product category so it was creating selective demand. 659 11-18 INTRODUCTION STAGE CONCEPTUAL During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with: a. b. c. d. e. reducing inventory costs. gaining distribution outlets. guaranteeing there is adequate demand if a skimming pricing strategy is used. building storage warehouses and distribution centers. using an intermodal logistics system. Register to View AnswerPage: 235; Figure 11-1 Rationale: Gaining distribution outlets for the product is important but often difficult because retailers may be hesitant to carry a new product. 11-19 PRODUCT LIFE CYCLE APPLICATION The music industry has changed dramatically over the years. In the 1970s, consumers purchased 8-track tapes. In the 1980s, cassette tapes caused the decline of 8-track tapes. In fact, today consumers would experience difficulty in purchasing a new artist on 8-track tape. Now in the 2000s, compact discs have become very popular and are being purchased by music lovers of every age and background. As sales of compact discs continue to grow at an increasing rate, sales of cassette tapes are weakening, the profits are declining, and the product may face a fate similar to that of 8-track tapes. Based upon this information, you can correctly conclude cassette tapes are in the __________stage, and compact discs are in the __________ stage of the product life cycle: a. b. c. d. e. decline; growth decline; introduction maturity; growth decline; maturity maturity; introduction Register to View AnswerPage: 235 Rationale: The decline stage of the product life cycle occurs when sales begin to drop. As presented in this question, cassette tapes are showing weaker sales and lower profits. Compact discs, on the other hand, are showing rapid increases in sales. The rapid increase in sales is characteristic of a product in the growth stage of the product life cycle. 660 11-20 SKIMMING PRICING DEFINITION During the introduction stage of the product life cycle, __________ may be used used. This pricing strategy charges a high price to recoup the costs of product development. a. b. c. d. e. penetration pricing cost-plus pricing ROI pricing. market-oriented pricing skimming pricing Register to View AnswerPage: 235; Figure 11-1 Rationale: Text term definitionskimming 11-21 SKIMMING PRICING APPLICATION INGenius ATG introduced the microware oven-sized battery recycler in 1999. It was intended for the business market. Companies could buy the recycler and use it to restore alkaline batteries that are not normally recharged. The recycling does not let a battery live forever; but it does give it a charge of about 80 percent of the energy it originally had. Depending on the size of the battery, the recycler can hold up to 96 batteries. It takes 13 hours to recharge any battery. The recycler was introduced at $3,000. When you consider that the R & D to develop this product was quite high, you should suspect that INGenius ATG was using a __________ strategy. a. b. c. d. e. penetration pricing cost-plus pricing ROI pricing. market-oriented pricing skimming pricing Register to View AnswerPage: 235; Figure 11-1 Other Location: web Rationale: Skimming pricing strategy charges a high price to recoup the costs of product development. 11-22 SKIMMING PRICING CONCEPTUAL A company follows a skimming strategy as part of introducing a new product to: a. b. c. d. e. help recover costs of development and to capitalize on the price insensitivity of early buyers. capitalize on the price sensitivity of early buyers and to postpone breakeven. discourage competitors and build unit volume. move the product into the maturity stage once primary demand has been created. do all of the above. Register to View AnswerPage: 235 Rationale: During introduction, a high initial price may be used as part of a skimming strategy to help the company recover the costs of development as well as take advantage of the price insensitivity of early buyers. However, high prices tend to attract competitors eager to enter the market because they see the opportunity for profit. 661 11-23 SKIMMING PRICING APPLICATION When Texas Instruments (TI) introduced its pocket calculator in the early 1970s, it was a tremendous product innovation, and TI set the mail order price at $495. What is the name of the pricing strategy Texas Instruments used? a. b. c. d. e. rip off chiseling opportunistic skimming caveat emptor Register to View AnswerPage: 235 Other Location: web Rationale: During introduction, a high initial price may be used as part of a skimming strategy to help the company recover the costs of development as well as take advantage of the price insensitivity of early buyers. However, high prices tend to attract competitors eager to enter the market because they see the opportunity for profit. 11-24 PENETRATION PRICING DEFINITION During the introduction stage of the product life cycle, the strategy that discourages competitive entry by charging a low price is referred to as: a. b. c. d. e. penetration pricing. cost-plus pricing. ROI pricing. market-oriented pricing. skimming pricing. Register to View AnswerPage: 236 Rationale: Text term definitionpenetration pricing 662 11-25 PENETRATION PRICING APPLICATION Consumers who are frequently on the Internet more than likely use either Netscape Explorer or Netscape as their Web browser. There is another option called Opera, which is faster and highly customizable, a feature that neither Internet Explorer nor Netscape have. For example, it can be set to suppress all pop-up ads and there are several mouse-controlled shortcuts available. Opera was initially offered on the market for $29 and this included tech support. It was hoped that this low price would build the volume of Opera users quickly. Opera used a __________ strategy. a. b. c. d. e. penetration pricing cost-plus pricing ROI pricing market-oriented pricing skimming pricing Register to View AnswerPage: 236 Rationale: Penetration pricing is pricing low to discourage competitive entry and help build unit volume, though the company must closely monitor costs. Opera charged a low price to build market share quickly for its new product. 11-26 PENETRATION PRICING CONCEPTUAL To discourage competitive entry, a company can price its new product low, using penetration pricing. This pricing strategy also helps to: a. b. c. d. e. reduce costs. increase profits. build customer loyalty. improve product quality. build unit volume. Register to View AnswerPage: 236 Rationale: Penetration pricing is pricing low to discourage competitive entry and help build unit volume, though the company must closely monitor costs. 11-27 INTRODUCTION STAGE CONCEPTUAL Which of the following statements about the introduction stage of the product life cycle is true? a. b. c. d. e. During the introduction stage, efforts are made to increase primary demand. During the introduction stage, firms may choose a skimming pricing strategy. During the introduction stage, firms may choose a penetration pricing strategy. Generally the promotional message is to inform and educate the consumer. All of the above statements about the introduction stage of the product life cycle are true. Register to View AnswerPage: 235; Figure 11-1 Rationale: As shown in Figure 11-1, during the introduction stage, the marketing objective is to gain awareness, to use either a skimming or penetration pricing strategy, to educate and inform with promotion and to increase primary demand for the product class. 663 11-28 INTRODUCTION STAGE APPLICATION Opera.com introduced a new Web browser that can be easily customized to do what you want it to dosuch as suppress all pop-up ads and retrieve previously visited websites quickly. Opera is spending a lot of money to make potential consumers aware of the existence of a Web browser that can be customized. Sales have been slow to rise over the past year, and profit has yet to be achieved. In what stage of the product life cycle is this product category? a. b. c. d. e. growth stage decline stage commercialization stage maturity stage introduction stage Register to View AnswerPage: 235; Figure 11-1 Rationale: As shown in Figure 11-1, during the introduction stage, the marketing objective is to gain awareness, to use either a skimming or penetration pricing strategy, to educate and inform with promotion and to increase primary demand for the product class. In the case of web browsers, primary demand has been stimulated; Opera.com is trying to stimulate selective demand. 11-29 INTRODUCTION STAGE APPLICATION Technology that allows consumers to access information on the Internet from a cell phone is in the introductory stage of its product life cycle. The industry is composed of several small firms with state-of-the-art products that are neither standardized nor compatible with one another. Moreover, these small firms have limited marketing expertise and little money to spend on marketing; their common strength is engineering. This industry has welcomed the entry of a giant in the mobile phone industry like Nokia because: a. b. c. d. e. the small companies could leapfrog beyond Nokia's products. Nokia's entry would help segment the market, establishing targets for the smaller firms. Nokia set standards and is generating primary demand. Nokia could solve the remaining technological problems. Nokia could acquire the small, struggling firms. Register to View AnswerPage: 235 Rationale: Nokia has the marketing power to carry the industry through the introductory stage by establishing industry-wide standards and stimulating primary demand. 664 11-30 INTRODUCTION STAGE APPLICATION Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available) and can be recharged by sunlight up to 5 times, after which they are meant to be discarded. Unfortunately, the production process cannot be patented, and competitors could arrive within a few months. Eveready's marketing efforts should include all the following EXCEPT: a. b. c. d. e. skimming pricing. widespread distribution. high production capacity. advertising aimed at brand name awareness. introductory promotions to encourage trial. Register to View AnswerPage: 235; Figure 11-1 Rationale: Competition would be deterred if Eveready could create trial and brand loyalty for its product. The skimming price strategy would work against this, and its high per unit profits would likely attract competitors more quickly to the industry. Instead, Eveready would use penetration pricing along with widespread distribution, advertising aimed at brand name awareness, and introductory promotions to encourage trial and establish brand loyalty. 11-31 GROWTH STAGE APPLICATION A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. Once the show became a hit and televised several nights a week, other networks quickly created their own version of what they hoped to be a successful game show format. Greed and Twenty-One are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire. At this point in time the nighttime televised game show entered which stage of its product life cycle? a. b. c. d. e. growth stage decline stage commercialization stage maturity stage introduction stage Register to View AnswerPage: 236; Figure 11-1 Rationale: The growth stage of the product life cycle is characterized by rapid increases in sales as well as the appearance of competitors. As a result of more competitors and more aggressive pricing, profit usually peaks during the growth stage. 665 11-32 GROWTH STAGE CONCEPTUAL Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors? a. b. c. d. e. introduction growth maturity decline profit Register to View AnswerPage: 236; Figure 11-1 Rationale: The growth stage of the product life cycle is characterized by rapid increases in sales as well as the appearance of competitors. As a result of more competitors and more aggressive pricing, profit usually peaks during the growth stage. 11-33 GROWTH STAGE CONCEPTUAL At which stage in the product life cycle do industry profits usually peak? a. b. c. d. e. introduction growth maturity decline commercialization Register to View AnswerPage: 236; Figure 11-1 Rationale: The growth stage of the product life cycle is characterized by rapid increases in sales as well as the appearance of competitors. As a result of more competitors and more aggressive pricing, profit usually peaks during the growth stage. 11-34 GROWTH STAGE CONCEPTUAL Which of the following is a characteristic of the growth stage of the product life cycle? a. b. c. d. e. advertising emphasis switches to primary demand growing proportion of initial purchasers to repeat purchasers slow, steady sales competitors appear pricing is more aggressive Register to View AnswerPage: 236; Figure 11-1 Rationale: The growth stage of the product life cycle is characterized by rapid increases in sales as well as the appearance of competitors. As a result of more competitors and more aggressive pricing, profit usually peaks during the growth stage. 666 11-35 GROWTH STAGE APPLICATION A technology company has just begun to make a profit on its DVD-R discs (DVD discs in a recordable format). Its promotional expenditures are aimed at trying to persuade potential customers of the merits of its DVD-R discs. Even more money is being spent to develop the firm's distribution system for its DVD-R discs. Since Apple's iMac now comes with a DVD recorder as a standard part, several other companies have started producing DVD-R discs for the market. What stage of the product life cycle is the DVD-R in? a. b. c. d. e. commercialization stage maturity stage growth stage decline stage introduction stage Register to View AnswerPage: 236; Figure 11-1 Rationale: In this stage the competitors first appear, profitability becomes a reality, promotion tries to create selective demand, and expanding distribution outlets for the growth in product sales becomes important. 11-36 MATURITY STAGE DEFINITION Which stage in the product life cycle is characterized by a slowing of industry sales? a. b. c. d. e. introduction growth maturity decline comparability Register to View AnswerPage: 237; Figure 11-1 Rationale: The third stage, maturity, is characterized by a slowing of total industry sales revenue. Sales increase at a decreasing rate as fewer new buyers enter the market. Most consumers who would buy the product are either repeat purchasers of the product or have tried and abandoned it. Weaker competitors begin to leave the market. Profit declines because there is fierce price competition among many sellers. 667 11-37 MATURITY STAGE CONCEPTUAL During the maturity stage of the product life cycle, profit declines because: a. b. c. d. e. there are fewer and fewer competitors in the market. better products are only in the growth stage. production costs increase the more a firm has to manufacture the same product. there is fierce price competition among sellers. all of the above. Register to View AnswerPage: 238; Figure 11-1 Rationale: The third stage, maturity, is characterized by a slowing of total industry sales revenue. Sales increase at a decreasing rate as fewer new buyers enter the market. Most consumers who would buy the product are either repeat purchasers of the product or have tried and abandoned it. Weaker competitors begin to leave the market. Profit declines because there is fierce price competition among many sellers. 11-38 MATURITY STAGE CONCEPTUAL The marketing objective of a firm whose product is in the maturity stage of the product life cycle is to: a. b. c. d. e. actively search out new first time users. maintain existing buyers since new ones are hard to find. actively reinforce competitors' marketing efforts. maintain existing distributors and actively seek out new ones. shift to a skimming price strategy. Register to View AnswerPage: 238; Figure 11-1 Rationale: Marketing attention in the maturity stage is often directed toward holding market share through further product differentiation and finding new buyers. 11-39 MATURITY STAGE CONCEPTUAL Promotional expenses at the maturity stage of the product life cycle are often directed towards: a. b. c. d. e. creating demand for the product class. reminding the consumer to use the product. creating primary demand. gaining new distributors. eliminating distribution channels. Register to View AnswerPage: 238; Figure 11-1 Other Location: web Rationale: As shown in Figure 11-1, promotion is usually reminder oriented. 668 11-40 MATURITY STAGE CONCEPTUAL Which of the following statements is a characteristic of the maturity stage of the product life cycle? a. b. c. d. e. Often this stage is entered because of environmental or technological factors. During this stage companies attempt to eliminate distribution channels. Industry sales revenue peaks, which is one stage after industry profit peaks. Industry profits peak because production and distribution costs are declining. Industry profit peaks, which is one stage after industry sales revenue peaks. Register to View AnswerPage: 238; Figure 11-1 Rationale: At the maturity stage industry sales revenue peaks while industry profit (which peaked in the growth stage) is declining because of more competitors and more price competition. 11-41 MATURITY STAGE APPLICATION The videocassette recorder (VCR) was introduced to the market in the late 1970s. Ninety-one percent of American homes own at least one VCR. To maintain market share in the VCR market and to get customers to purchase additional VCRs, its manufacturers have continually provided for higher-quality recording capabilities and made the machines easier to watch and with different features that allowed for quicker location of recorded programs. Because the goal of VCR manufacturers is to maintain brand loyalty and market share, the product category is in the __________ stage of its product life cycle. a. b. c. d. e. introduction growth maturity decline harvesting Register to View AnswerPage: 238 Other Location: web Rationale: Product differentiation is a commonly used strategy for products in the maturity stage to maintain market share and brand loyalty. 669 11-42 MATURITY STAGE APPLICATION Hershey's chocolate bars have been marketed in the United States for more than 100 years, and are still a tremendous success, with a loyal following of consumers. The company began advertising several years ago to hold its market share, and it has introduced several distinctive new products. What stage of the product life cycle are Hershey's chocolate bars competing in? a. b. c. d. e. development introduction growth maturity decline Register to View AnswerPage: 238; Figure 11-1 Rationale: The third stage, maturity, is characterized by a slowing of total industry sales revenue. Sales increase at a decreasing rate as fewer new buyers enter the market. Most consumers who would buy the product are either repeat purchasers of the product ( in this case) or have tried and abandoned it. Weaker competitors begin to leave the market. Profit declines because there is fierce price competition among many sellers. There is a full product line, shown by the addition of several distinctive new products. 11-43 DECLINE STAGE CONCEPTUAL Sales and profits both exhibit a steady downward trend throughout which stage of the product life cycle? a. b. c. d. e. introduction growth maturity decay decline Register to View AnswerPage: 238 Rationale: In the decline stage, both sales and profits are steadily dropping. 11-44 DECLINE STAGE CONCEPTUAL All products are assumed to have a complete product life cycle. Which of the following is NOT a reason why products ultimately decline? a. b. c. d. e. poor marketing emergence of superior competitive products all consumers' wants and needs inevitably change non-marketing failures of firms all the above are reasons for decline Register to View AnswerPage: 238 Rationale: There is no evidence that all consumer wants and needs inevitably change; instead many tastes, especially those motivated by basic drives, appear unchanged throughout history. 670 11-45 DECLINE STAGE CONCEPTUAL All of the following occur during the decline stage of the product life cycle EXCEPT: a. b. c. d. e. sales decrease substantially. the firm chooses the wrong marketing strategy, which results in an inappropriate marketing program for the target market. the uncontrollable environment changes. promotional support for the product becomes minimal. the number of competitors is reduced. Register to View AnswerPage: 238; Figure 11-1 Rationale: Alternative b is the correct response because a firm may have had the appropriate marketing strategy that led to the development and execution of the appropriate marketing program for its product. However, this may have been insufficient to stimulate or maintain selective demand because environmental factors (changes in consumer preferences, new technologies, or other uncontrollable factor) may have caused a fundamental decline in sales for the product class. 11-46 DECLINE STAGE APPLICATION In the 1960s, television westerns were extremely popular. The shows were adventure shows with settings and costumes that were very unlike what really existed. There was Bonanza, Wagon Train, The Virginian, Laramie, etc. When viewers gradually stopped watching this category of programs, production companies found the networks no longer wanted to televise such shows. The television western as a product category entered the __________ stage. a. b. c. d. e. decay decommercialization decline maturity harvested Register to View AnswerPage: 238 Rationale: The programs entered the decline stage with declining viewership (or sales). 11-47 DECLINE STAGE CONCEPTUAL To handle products in the decline stage of the product life cycle, companies often use either: a. b. c. d. e. diversification or harvesting. harvesting or contracting. deletion or harvesting. diversification or harvesting. building or contracting. Register to View AnswerPage: 238 Rationale: To handle a declining product, a company often follows one of two strategies. Deletion is dropping the product from the line; harvesting is retaining the product but reducing support costs. 671 11-48 DECLINE STAGE APPLICATION Three years ago Pokmon was the hottest name in toys, but as other more high-tech toys appeared on the market, the popularity of Pokmon waned as did its sales. Some toy experts predict Pokmon will soon be only a memory for toy retailers. Pokmon is in the __________ stage of its product life cycle. a. b. c. d. e. decay decommercialization decline maturity harvested Register to View AnswerPage: 238 Rationale: The decline stage occurs when sales begin to drop. The market has abandoned Pokmon. 11-49 DECLINE STAGE APPLICATION Your product has been suffering from steadily eroding sales and profits. You have tried a number of options to revitalize the product's sales and profits, but after seven changes in your strategy, you have yet to find success. Which of the following actions would be the LEAST appropriate next step? a. b. c. d. e. Delete the product from the line. Retain the product, but reduce its support costs. Stimulate primary demand. Contract the production of the product. Contract the marketing of the product. Register to View AnswerPage: 238; Figure 11-1 Rationale: When its product reaches the decline stage company, it can follow one of two main optionsdeletion or harvesting. These are described in Alternatives a and b. It's much too late to try to stimulate primary demand for the product class, which normally occurs during the introduction stage of the product life cycle, so alternative c is the least appropriate next step. 672 11-50 DELETION APPLICATION During the 1990s, there was a backlash against artificial colors in food and other consumer products. As a result, a lot of companies issued products that were clear. One example was Crystal Pepsi. The product never really found a market and was __________, or dropped from the Pepsi product line soon after its introduction. a. b. c. d. e. diversified aggregated segmented deleted harvested Register to View AnswerPage: 238 Rationale: Dropping a product from a companys product line is called product deletion. 11-51 DELETION APPLICATION In the 1960s, television westerns were extremely popular. The shows were adventure shows with settings and costumes that were very unlike what really existed. There was Bonanza, Wagon Train, The Virginian, Laramie, etc. When viewers gradually stopped watching this category of programs, production companies found the networks no longer wanted to televise such shows. The production companies used a __________ strategy and stopped production on all television westerns when the networks stopped showing them. a. b. c. d. e. diversifying aggregation segmentation deletion harvesting Register to View AnswerPage: 238 Rationale: Dropping a product from a companys product line is called product deletion. 11-52 DELETION DEFINITION A strategy of dropping a product from the product line, usually in the decline stage of the product life cycle, is called: a. b. c. d. e. diversifying. aggregation. segmentation. deletion. harvesting. Register to View AnswerPage: 238; Figure 11-1 Rationale: Text term definitiondeletion 673 11-53 HARVESTING DEFINITION __________ occurs when a company retains a product but reduces marketing support costs. a. b. c. d. e. Skimming Harvesting Profiting Deletion Divesting Register to View AnswerPage: 238 Rationale: Text term definitionharvesting 11-54 HARVESTING CONCEPTUAL When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion, where a product is dropped from a firm's product line. Another less drastic choice is to retain the product in the product line, but to reduce marketing costs. When this option called __________ is selected, advertising expenditures for the product are reduced and salespeople do not devote their efforts to selling the product. a. b. c. d. e. decline maintenance customer need maintenance divestment maturity re-development harvesting Register to View AnswerPage: 238 Rationale: In essence, when a harvesting strategy is employed with products in the decline stage, the marketing firm reduces marketing efforts for the product and simply collects the revenues realized from ongoing customer needs and requests. The future of such products is limited to existing customer demand. 11-55 HARVESTING DEFINITION A strategy of harvesting may be employed in the decline stage of a products life to: a. maintain primary demand for a product category. b. get as many new customers as possible. c. maintain the ability to meet customers' requests. d. eliminate production and distribution costs. e. reposition the product. Register to View AnswerPage: 238 Rationale: Text term definitionharvesting 674 11-56 MARKETING NEWSNET CONCEPTUAL The growth of e-mail has: a. b. c. d. e. led to a significant increase in the amount of faxing because communication is easier. led to a significant decrease in the amount of faxing. not affected faxing. led to a significant increase in the amount of faxing because people don't trust just e-mail and want a hard copy fax. discouraged all forms of written communication. Register to View AnswerPage: 238 Rationale: The growth of e-mail has not affected faxing because the two technologies do not directly compete for the same messaging applications. E-mail is used for text messages, while faxing is used for formatted business documents. 11-57 LENGTH OF PRODUCT LIFE CYCLE CONCEPTUAL Generally, the average length of time it takes for a product category to move from the introduction stage of its product life cycle to the decline stage is: a. b. c. d. e. 18 months. 5-10 years. 20 years. 30 years. unpredictable. Register to View AnswerPage: 238 Rationale: There is no exact time that a product takes to move through its life cycle. 11-58 LENGTH OF PRODUCT LIFE CYCLE CONCEPTUAL There is no exact time that a product takes to move through its life cycle. As a rule: a. b. c. d. e. fad products have the longest lifecycle. consumer products have shorter life cycles than business products. packaged goods have a shorter life cycle than fads. installations have a shorter life cycle than consumer products. intangibility shortens the product life cycle. Register to View AnswerPage: 239 Other Location: web Rationale: As a rule, consumer products have shorter life cycles than business products. The availability of mass communication vehiclessuch as television and the Internetinforms consumers faster and shortens life cycles. Also, technological change tends to shorten product life cycles as new product innovation replaces existing products. 675 11-59 TYPES OF PRODUCT LIFE CYCLES DEFINITION Which of the following is a NOT a type of product life cycle? a. b. c. d. e. revolutionary low learning fashion high learning fad Register to View AnswerPage: 239 Rationale: The product life cycle curve shown in Figure 11-1 is the generalized life cycle, but not all products have the same shape to their curve. There are several different life-cycle curves, each type suggesting different marketing strategies: high-learning, low-learning, fashion, and fad. 11-60 HIGH LEARNING PRODUCT CONCEPTUAL An extended introduction stage of the product life cycle occurs for which type of product? a. b. c. d. e. high learning low learning fashion fad revolutionary Register to View AnswerPage: 239 Other Location: web Rationale: A high learning product is one for which significant education of the customer is required, and there is an extended introductory period. An example is a convection oven, which requires learning a new way of cooking and altering familiar recipes. 11-61 HIGH LEARNING PRODUCT CONCEPTUAL Interactive television with video on-demand capabilities will change how people watch television and how consumers access the Internet. What type of a product life cycle would be associated with this product? a. b. c. d. e. revolutionary high learning low learning fashion fad Register to View AnswerPage: 239 Rationale: A high learning product is one for which significant education of the customer is required, and there is an extended introductory period. Interactive television will require significant education of the consumer and therefore there will be an extended introductory period. 676 11-62 LOW LEARNING PRODUCT CONCEPTUAL An alternative product life cycle that results from products that are easily imitated by competitors, consumers who readily understand their benefits, and for which the appropriate marketing strategy is to gain strong distributor outlets is characteristic of __________ products. a. b. c. d. e. high learning low learning fashion fad substitute Register to View AnswerPage: 239 Rationale: Low-learning product sales begin immediately because little learning is required by the consumer, and the benefits of purchase are readily understood. This product often can be easily imitated by competitors, so the marketing strategy is to broaden distribution quickly. In this way, as competitors rapidly enter, most retail outlets already have the first product. It is also important to have the manufacturing capacity to meet this demand. 11-63 DIMENSIONS OF PRODUCT LIFE CYCLE APPLICATION Imagine Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available) and can be recharged by sunlight up to 5 times, after which they are meant to be discarded. Unfortunately, the production process cannot be patented, and competitors could arrive within a few months. Which of the following is the best description of the product life cycle of this product? a. b. c. d. e. rapid growth followed by rapid decline long, level beginning, and rapid ascent moderately slow introduction, followed by modest growth, gradually leveling off high introductory sales, with rapid decline high initial sales followed by slow decline Register to View AnswerPage: 238-239 Rationale: Consumers will need to be educated about the availability and benefits of the new type of battery. Therefore, a slow introductory period is likely. Growth will slow as competitors enter the market. Alternative a is a fad product. Alternative b shows no growth in the introduction stage so this is incorrect. Alternatives d and e don't reflect reasonable product life cycles ad both begin with high initial sales. 677 11-64 FASHION PRODUCT DEFINITION Products that are introduced, decline, and then seem to return are characteristic of the __________ type of product life cycle. a. b. c. d. e. high learning low learning fashion fad revolutionary Register to View AnswerPage: 239 Rationale: Text term definitionfashion product 11-65 FASHION PRODUCT APPLICATION Which of the following products is the best example of a product that might experience an introduction, a decline, and a reintroduction as part of its normal product life cycle? a. b. c. d. e. cat food veterinarian services cake mixes fishnet hose paperclips Register to View AnswerPage: 239 Rationale: A fashion product, such as hemline lengths on skirts, or lapel widths on sport jackets, is introduced, declines, and then seems to return. Life cycles for fashion products most often appear in womens and mens clothing styles. The length of the cycles may be years or decades. 11-66 FAD PRODUCT DEFINITION Which type of product has experiences rapid sales on introduction and then an equally rapid decline of the product life cycle? a. b. c. d. e. high learning products low learning products fashion products fad products abnormal products Register to View AnswerPage: 240 Rationale: A fad, such as wall walkers or toe socks, experiences rapid sales on introduction and then an equally rapid decline. These products are novelties and have a short life cycle. 678 11-67 FAD PRODUCT APPLICATION Some singers sing a great song that shoots to the top of the chart. The singers go on tour and have sold-out concerts everywhere they appear. Just as quickly (particularly if they are unable to follow their first hit song with a second one), they are singing to half-filled concerts and then to smaller clubs, and eventually no one wants to hear them perform. Such one-hit singers are most likely categorized as __________ products. a. b. c. d. e. high learning low learning fashion fad revolutionary Register to View AnswerPage: 240 Rationale: A fad, such as the singer mentioned, experiences rapid sales on introduction and then an equally rapid decline. This singer is a novelty and has a short life cycle because only one song was popular. 11-68 DIFFUSION OF INNOVATION CONCEPTUAL With diffusion of innovation, a. b. c. d. e. once a product enters the market, very similar products will enter within a very short period of time. one new product will produce ancillary product invention (e.g., video cassettes created a market for cassette holders). not all consumers accept a new product at the same time because adoption of a product spreads slowly throughout the population. product changes by one competitor lead to similar product changes by another competitor. unique efforts are made to create primary demand. Register to View AnswerPage: 240 Rationale: Not all consumers rush to buy a product in the introductory stage, and the shapes of the life cycle curves indicate that most sales occur after the product has been on the market for some time. In essence, a product diffuses, or spreads, through the population, a concept called the diffusion of innovation. 679 11-69 DIFFUSION OF INNOVATION DEFINITION The life cycle of a product depends on sales to customers. The shapes of life-cycle curves indicate that most sales occur after the product has been on the market for some time. The concept that some people are attracted to a product early while others buy it only after they see their friends with the product is called the: a. b. c. d. e. dissociation of sensibility. timed profiling. categories of adopters. diffusion of innovation. derivation of markets. Register to View AnswerPage: 240 Rationale: Text term definitiondiffusion of innovation 11-70 DIFFUSION OF INNOVATION CONCEPTUAL All of the following are categories of consumers based on when they purchase a new product, the information sources they use, and their risk-taking orientation EXCEPT: a. b. c. d. e. initiators. early adopters. early majority. late majority. laggards. Register to View AnswerPage: 240; Figure 11-4 Other Location: web Rationale: The first category of product adopters relative to the diffusion of innovation is innovators, not initiators. 11-71 DIFFUSION OF INNOVATION CONCEPTUAL The largest numbers of product adopters with respect to the diffusion of innovation are found among: a. b. c. d. e. early adopters and laggards. early majority and late majority. late majority laggards. innovators and early majority. innovators and early adopters. Register to View AnswerPage: 240; Figure 11-4 Rationale: Early majority adopters and late majority adopters make up about 68% of the total population that will adopt a new product at some point during a product life cycle. 680 11-72 INNOVATORS DEFINITION As product adopters, innovators typically: a. b. c. d. e. fear debt and use neighbors and friends as information sources. are skeptical and have below average social status. act with deliberation and use many informal social contacts. are leaders in social standing and have slightly above average education when compared to the other adopter classes. are venturesome, better educated than other product adopters, and use multiple information sources. Register to View AnswerPage: 241; Figure 11-4 Other Location: web Rationale: There are five categories of product adopters based on when they adopt, or choose to buy a new product. For any product to be successful it must be purchased by innovators and early adopters. The five categories are: (1)innovators are venturesome, better educated than other product adopters, and use multiple information sources; (2)early adopters are leaders in social settings, slightly above average education; (3) early majority are deliberate and have many informal social contacts; (4) late majority is skeptical and has below average social status; (5) laggards fear debt, neighbors and friends are information sources. 11-73 EARLY ADOPTERS DEFINITION As product adopters, early adopters typically: a. b. c. d. e. fear debt and use neighbors and friends as information sources. are skeptical and have below average social status. act with deliberation and use many informal social contacts. are leaders in social standing and have slightly above average education when compared to the other adopter classes. are venturesome, better educated than other product adopters, and use multiple information. Register to View AnswerPage: 241; Figure 11-4 Rationale: There are five categories of product adopters based on when they adopt, or choose to buy a new product. For any product to be successful it must be purchased by innovators and early adopters. The five categories are: (1)innovators are venturesome, better educated than other product adopters, and use multiple information sources; (2)early adopters are leaders in social settings, slightly above average education; (3) early majority are deliberate and have many informal social contacts; (4) late majority is skeptical and has below average social status; (5) laggards fear debt, neighbors and friends are information sources. 681 11-74 EARLY MAJORITY DEFINITION As product adopters, members of the early majority typically: a. b. c. d. e. fear debt and use neighbors and friends as information sources. are skeptical and have below average social status. act with deliberation and use many informal social contacts. are leaders in social standing and have slightly above average education when compared to the other adopter classes. are venturesome, better educated than other product adopters, and use multiple information. Register to View AnswerPage: 241; Figure 11-4 Rationale: There are five categories of product adopters based on when they adopt, or choose to buy a new product. For any product to be successful it must be purchased by innovators and early adopters. The five categories are: (1)innovators are venturesome, better educated than other product adopters, and use multiple information sources; (2)early adopters are leaders in social settings, slightly above average education; (3) early majority are deliberate and have many informal social contacts; (4) late majority is skeptical and has below average social status; (5) laggards fear debt, neighbors and friends are information sources. 11-75 LATE MAJORITY DEFINITION As product adopters, members of the late majority typically: a. b. c. d. e. fear debt and use neighbors and friends as information sources. are skeptical and have below average social status. act with deliberation and use many informal social contacts. are leaders in social standing and have slightly above average education when compared to the other adopter classes. are venturesome, better educated than other product adopters, and use multiple information. Register to View AnswerPage: 241; Figure 11-4 Rationale: There are five categories of product adopters based on when they adopt, or choose to buy a new product. For any product to be successful it must be purchased by innovators and early adopters. The five categories are: (1)innovators are venturesome, better educated than other product adopters, and use multiple information sources; (2)early adopters are leaders in social settings, slightly above average education; (3) early majority are deliberate and have many informal social contacts; (4) late majority is skeptical and has below average social status; (5) laggards fear debt, neighbors and friends are information sources. 682 11-76 LAGGARDS DEFINITION As product adopters, laggards typically: a. b. c. d. e. fear debt and use neighbors and friends as information sources. are skeptical and have below average social status. act with deliberation and use many informal social contacts. are leaders in social standing and have slightly above average education when compared to the other adopter classes. are venturesome, better educated than other product adopters, and use multiple information. Register to View AnswerPage: 241; Figure 11-4 Rationale: There are five categories of product adopters based on when they adopt, or choose to buy a new product. For any product to be successful it must be purchased by innovators and early adopters. The five categories are: (1)innovators are venturesome, better educated than other product adopters, and use multiple information sources; (2)early adopters are leaders in social settings, slightly above average education; (3) early majority are deliberate and have many informal social contacts; (4) late majority is skeptical and has below average social status; (5) laggards fear debt, neighbors and friends are information sources. 11-77 PRODUCT ADOPTION APPLICATION When the personal computer was first introduced, industry analysts predicted that very few would be sold. However, a short time after the product was made available, consumers who were young, highly educated, adventuresome, and who were well informed began buying personal computers. While those buyers were relatively few in number, the marketers of computers were encouraged because other, less adventuresome consumers would likely adopt personal computers later. According to the product adoption classification, those first buyers of personal computers were: a. b. c. d. e. early adopters. early majority. innovators. product leaders. diffusion leaders. Register to View AnswerPage: 241; Figure 11-4 Rationale: Innovators are characterized as being adventuresome, having a high level of education, and having access to multiple sources of information. 683 11-78 PRODUCT ADOPTION APPLICATION Imagine Post Cereal introduces a cereal bar just like the ones Kellogg's and Quaker already have on the market. Post has decided to promote the bars using ads without coupons and to price the bars at about the same price as the other brands. Post Cereal bars will also be distributed to the same stores as the Kellogg's and Quaker products. Which of the following barriers to new product adoption will most likely prevent the Post Cereal bars from being a successful product? a. b. c. d. e. value barrier psychological barrier economic barrier usage barrier social barrier Register to View AnswerPage: 240 Rationale: Several factors affect whether a consumer will adopt a new product or not. Common reasons for resisting a product in the introduction stage are usage barriers (the product is not compatible with existing habits), value barriers (the product provides no incentive to change), risk barriers (physical, economic, or social), and psychological barriers (cultural differences or image). 11-79 PRODUCT ADOPTION APPLICATION A new exercise video contends that with one day of fasting and one one-hour period of intense cardiovascular exercise, the average individual can lose five pounds a week and be in peak health within six months of starting the program. __________ barriers will doom the new product to failure because the product's claims are not consistent with what consumers do and how they think. a. b. c. d. e. Psychological Physical Risk Value Usage Register to View AnswerPage: 240 Rationale: Several factors affect whether a consumer will adopt a new product or not. Common reasons for resisting a product in the introduction stage are usage barriers (the product is not compatible with existing habits), value barriers (the product provides no incentive to change), risk barriers (physical, economic, or social), and psychological barriers (cultural differences or image). 684 11-80 PRODUCT ADOPTION APPLICATION When McDonalds began doing business in India, it had to change the meat in some of its meals from beef, considered sacred by many in India, to lamb and other meats. __________ barriers would have doomed McDonalds in India had they not changed their recipes because many Indian consumers would have refused to eat sandwiches made from an animal they consider to be sacred. a. b. c. d. e. Psychological Physical Risk Value Usage Register to View AnswerPage: 240 Rationale: Several factors affect whether a consumer will adopt a new product or not. Common reasons for resisting a product in the introduction stage are usage barriers (the product is not compatible with existing habits), value barriers (the product provides no incentive to change), risk barriers (physical, economic, or social), and psychological barriers (cultural differences or image). 11-81 PRODUCT ADOPTION APPLICATION Even an experienced and well trained hiker would not think of crossing Death Valley, where temperatures easily top 120 degrees, without plenty of water as part of their supplies. __________ barriers would doom any hiking trip across that area without the assurance that plenty of water would be available for the hiker. a. b. c. d. e. Psychological Physical Risk Value Usage Register to View AnswerPage: 240 Rationale: Several factors affect whether a consumer will adopt a new product or not. Common reasons for resisting a product in the introduction stage are usage barriers (the product is not compatible with existing habits), value barriers (the product provides no incentive to change), risk barriers (physical, economic, or social), and psychological barriers (cultural differences or image). 685 11-82 PRODUCT ADOPTION APPLICATION Why would the manufacturer of a new all-natural-ingredient shampoo and conditioner put free samples of the product in Sunday newspapers? a. b. c. d. e. to simulate laggard usage of the product to encourage product adoption to control innovation diffusion to avoid any possibility of litigation to circumvent the typical adoption cycle Register to View AnswerPage: 240 Rationale: Free samples are one of the most popular means to gain consumer trial, and it is logical that increased consumer trial will lead to increased adoption. 11-83 PRODUCT MODIFICATION DEFINITION __________ is a strategy that involves altering a product's characteristic such as its quality, performance, or appearance to try to increase and extend the products sales. a. b. c. d. e. Market modification Product modification Product repositioning Market-product strategy Diversification Register to View AnswerPage: 241 Rationale: Text term definitionproduct modification 11-84 PRODUCT MODIFICATION APPLICATION Twenty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy beach, golfing opportunities, resort hotels, and good seafood restaurants. With the addition of casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is an example of: a. b. c. d. e. a market-product strategy. diversification. market modification. product modification. harvesting. Register to View AnswerPage: 241 Rationale: Product modification is a strategy that involves altering a product's characteristic such as its quality, performance, or appearance, to try to increase and extend the product's sales. 686 11-85 PRODUCT MODIFICATION APPLICATION Alka-Seltzer was made originally as a hangover remedy that cured the headache and settled the stomach. Today, you can purchase Original Alka-Seltzer, Extra Strength Alka-Seltzer, AlkaSeltzer Morning Relief (for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. To extend the product's sales to new markets, the makers of Alka-Seltzer have used: a. b. c. d. e. a market-product strategy. diversification. market modification. product modification. harvesting. Register to View AnswerPage: 241 Rationale: Product modification is a strategy that involves altering a product's characteristic such as its quality, performance, or appearance to try to increase and extend a product's sales. In this case Alka-Seltzer manufactured additional types of the product to address different consumer needs or required product performance. 11-86 PRODUCT MODIFICATION APPLICATION DiGiorno rising crust pizza has been available in the freezer sections of supermarkets for quite awhile. The product's recent introduction of a DiGiorno cheese stuffed crust is an example of __________ and should attract new buyers. a. b. c. d. e. a market-product strategy. diversification. market modification. product modification. harvesting. Register to View AnswerPage: 241 Rationale: Product modification is a strategy that involves altering a product's characteristic such as its quality, performance, or appearance to try to increase and extend a product's sales. In this case, DiGiorno added a cheese stuffed crust to try to increase and extend their sales of pizza. 11-87 MARKET MODIFICATION DEFINITION ___________ is a strategy used when a company tries to find new customers, increase a products use among existing customers, or create new use situations. a. b. c. d. e. Market modification Product modification Product repositioning Market-product strategy Diversification Register to View AnswerPage: 241 Other Location: web Rationale: Text term definitionmarket modification 687 11-88 MARKET MODIFICATION APPLICATION When Coca-Cola promoted Coke as a morning beverage when you didn't want coffee, it was using: a. b. c. d. e. product modification. repositioning the product. market modification. market-product extension. diversification. Register to View AnswerPage: 241 Rationale: Market modification is a strategy used when a company tries to find new customers, increase a products use among existing customers, or create new use situations. Coca-Cola was using market modification strategy because it was trying to increase product usage. 11-89 MARKET MODIFICATION APPLICATION Tums, which has long been used for reducing heartburn, is now being promoted as a source of calcium for the prevention of osteoporosis. Its manufacturer is using which of the following market modification strategies? a. b. c. d. e. finding new users creating new use situations increasing use by existing customers modifying the product characteristics doing none of the above Register to View AnswerPage: 241 Rationale: Market modification is a strategy used when a company tries to find new customers, increase a products use among existing customers, or create new use situations. In the case of Tums the manufacturer is trying to create a new use situation by suggesting it be used to prevent osteoporosis. 688 11-90 MARKET MODIFICATION APPLICATION Finding new uses for an existing product has been a major strategy in extending the life of Arm & Hammer Baking Soda. The product (unchanged from its original formula) is now being promoted as a dentifrice; a deodorizer for cat litter, carpeting, and refrigerators; and a fire extinguisher. Arm & Hammer is: a. b. c. d. e. finding new users through a product modification strategy. creating new use situations through a market modification strategy. increasing use by existing customers through a product modification strategy. modifying the product characteristics. demarketing the product. Register to View AnswerPage: 241 Rationale: Market modification is a strategy used when a company tries to find new customers, increase a products use among existing customers, or create new use situations. Arm & Hammers original formula is being used in additional situations. 11-91 MARKET MODIFICATION APPLICATION Major American car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit. Car manufacturers are using which of the following market modification strategies? a. b. c. d. e. finding new users creating new use situations increasing use by existing customers modifying the product reacting to competitors' position Register to View AnswerPage: 241 Other Location: web Rationale: Market modification is a strategy used when a company tries to find new customers, increase a products use among existing customers, or create new use situations. By offering buying incentives to college students (new customers), automobile manufacturers can tap a sizable market of new customers who might otherwise not buy a new car. 689 11-92 MARKET MODIFICATION APPLICATION The Upjohn Company first targeted men for its Rogaine topical solution, a drug to restore hair growth, but later marketed this product to women. The Upjohn Company is using which of the following market modification strategies? a. b. c. d. e. finding new users creating new use situations increasing use by existing customers modifying the product reacting to competitors' position Register to View AnswerPage: 241 Rationale: Market modification is a strategy used when a company tries to find new customers, increase a products use among existing customers, or create new use situations. By including women in their marketing efforts, Upjohn increased the number of potential customers. 11-93 ETHICS AND SOCIAL RESPONSIBILITY ALERT CONCEPTUAL Consumer advocates believe the practice of downsizing by consumer products firms has resulted in: a. b. c. d. e. lower product prices for consumers because of lower labor, raw material and packaging costs due to the recession and lower inflation in the United States. a greener environment due to the reduction in the amount of packaging used for promotional purposes (e.g. eliminating of the glossy cardboard that promoted the musical artist and contained the CD and its plastic protective box), thereby reducing the amount of waste disposed in landfills. fewer products and less product variability offered due to the corporate restructuring taking place worldwide. keeping prices from rising beyond the psychological barriers consumers have developed for products. a subtle, yet deceptive practice of taking advantage of consumers' buying habits by offering less product content in the same or larger package while maintaining or increasing the price. Register to View AnswerPage: 243 Rationale: Consumer advocates charge that downsizing the content of packages while maintaining prices is a subtle and unannounced way of taking advantage of consumer buying habits. They also say downsizing is a price increase in disguise and deceptive, but legal. Manufacturers argue that this practice is a way of keeping prices from rising beyond psychological barriers for their products. 690 11-94 PRODUCT REPOSITIONING DEFINITION Changing the place a product occupies in a consumer's mind relative to competitive products is called: a. b. c. d. e. market modification. product modification. product repositioning. product development. differentiation. Register to View AnswerPage: 242 Rationale: Text term definitionproduct repositioning 11-95 PRODUCT REPOSITIONING CONCEPTUAL All of the following are factors that trigger product repositioning as a marketing action EXCEPT: a. b. c. d. e. changing the value offered to consumers relative to competitive products by adding or deleting features. catching a rising trend due to changes in consumer preferences relative to competitive products. reaching a new market due to sluggish sales in the currently targeted market. reacting to a competitor's entrenched product position that is adversely affecting the firm's sales and market share. copying competitors' sales promotion strategies to increase the trial and repeat purchase behavior of consumers relative to the firm's product. Register to View AnswerPage: 242 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. 691 11-96 PRODUCT REPOSITIONING APPLICATION Sealy, the largest manufacturer of mattresses in the U.S., recently set out to redefine its place in the bedrooms of America. No longer was it going to be associated as a mattress company. Henceforth, the name Sealy was going to be known as the world's leading "sleep wellness provider." This is an example of: a. b. c. d. e. reverse marketing. demarketing. repositioning. resegmenting. reverse targeting. Register to View AnswerPage: 242 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. Sealy is changing the place a product occupies in a consumer's mind relative to competitive products. 11-97 PRODUCT REPOSITIONING APPLICATION New Coke was repositioned as a slightly sweeter, less filling soft drink because the Coca-Cola Company discovered that its 1984 market share in supermarkets was 2 percent behind Pepsi. This product repositioning strategy was: a. b. c. d. e. a reaction to a competitor's position. to reach a new market. to catch a rising trend. to change the value offered. to change its target audience. Register to View AnswerPage: 242 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. 692 11-98 PRODUCT REPOSITIONING APPLICATION Harry & David is a catalog retailer. At its inception, the company sold fruit baskets and popularized the Fruit of the Month concept. Since then the company has abandoned this restrictive definition of itself, expanded its product mix, and used its promotion to explain that it is the source of the perfect gift for every occasion. Harry & David used a __________ strategy. a. b. c. d. e. reinvention restoration reconfiguration realignment repositioning Register to View AnswerPage: 242 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. Harry & David changed the place a product occupies in a consumer's mind relative to competitive products by expanding its product mix and using promotion to explain that it is the source of the perfect gift for every occasion. 11-99 PRODUCT REPOSITIONING APPLICATION Snickers candy bar was repositioned from a candy bar to a snack food through commercials that showed busy people satisfying their hunger with a Snickers bar. Mars, Inc. used this strategy with its Snickers bar to: a. b. c. d. e. react to a competitor's position. reach a new market. catch a rising trend. change the value offered. do none of the above. Register to View AnswerPage: 242 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. Mars, Inc., makers of Snickers, saw that time pressures meant more consumers were looking for a quick snack. By positioning the peanut filled candy bar as an energy-filled snack, it was able to reach a much larger market. 693 11-100 PRODUCT REPOSITIONING APPLICATION For many years, Kellogg's Frosted Flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product in competitive situations. Recently, in response to declining sales of the Frosted Flakes, the cereal-maker has adopted a new series of advertisements that show adults admitting they enjoy Frosted Flakes, too. Kellogg's is attempting to: a. b. c. d. e. develop alternative product selection factors. reposition its product. complete the product life cycle of Frosted Flakes. introduce new uncontrollable elements into the marketing mix. introduce a new product. Register to View AnswerPage: 242 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. Kellogg's is attempting to change the place Frosted Flakes occupies in the minds of consumers in relation to alternative, competing breakfast food products by appealing to a new marketadults. 11-101 PRODUCT REPOSITIONING APPLICATION Pretzels were first introduced as a salty snack. Later the product was repositioned as a low-fat snack to: a. b. c. d. e. respond to a competitor's head-on positioning strategy. reach a new market. catch a rising trend. change the value offered. change its target audience. Register to View AnswerPage: 243 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. Pretzels capitalized on the "better-for-you trend in the food industry. 694 11-102 PRODUCT REPOSITIONING APPLICATION An aging baby boomer population has led to increased interest in developing and marketing products to satisfy the need of this potentially large market. As a result, moisturizing creams like Oil of Olay are now positioned as age-defying creams. This is an example of which of the four factors that may trigger a repositioning action? a. b. c. d. e. reacting to a competitor's position reaching a new market catching a rising trend changing the value offered product modification Register to View AnswerPage: 243 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. The aging baby boomers are waging a valiant fight against aging, and marketers are helping them by creating products that will appeal to this market. 11-103 PRODUCT REPOSITIONING CONCEPTUAL Which of the following product repositioning strategies requires a change in the physical product? a. b. c. d. e. increasing use creating new use situations finding new users reacting to a competitors position changing the value offered Register to View AnswerPage: 243 Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. Value is increased by adding features or higher quality materials. This is known as trading up. Value can also be decreased by reducing the number of features, quality, or content of the product, known as trading down. 695 11-104 TRADING UP DEFINITION Trading up involves adding value to a product (or line) through: a. b. c. d. e. adding product features but reducing the price. adding product features and using higher quality product materials. reducing product features and using lower quality product materials. decreasing the number of features and quality and lowering the price of a product. downsizing. Register to View AnswerPage: 243 Rationale: Text term definitiontrading up 11-105 TRADING UP APPLICATION Kmart stores hoped to add perceived value to the store's merchandise by adding the Martha Stewart product line, which is perceived as being of a higher quality. This product line addition was an example of: a. b. c. d. e. top-down marketing. trading up. bottom-up marketing. trading down. game-playing. Register to View AnswerPage: 243 Other Location: web Rationale: Often a company decides to reposition its product or product line in an attempt to increase sales. A firm can reposition a product by changing one or more of the four marketing mix elements. Four factors that trigger a repositioning action are: (1) reacting to a competitors position; (2) reaching a new market; (3) catching a rising consumer trend; and (4) changing the value offered by trading up or down. Trading up involves value adding to a product (or line) through adding product features and using higher quality product materials. The Martha Stewart product line is perceived as using higher quality product materials. 11-106 TRADING DOWN DEFINITION The strategy of trading down involves: a. b. c. d. e. adding product features and using lower quality product materials. adding product features and using higher quality product materials. reducing product features and using lower quality product materials. reducing the number of features, quality, or price of a product. seeking a less price sensitive target market. Register to View AnswerPage: 243 Rationale: Text term definitiontrading down 696 11-107 DOWNSIZING DEFINITION __________ refers to reducing the content of packages without changing package size and maintaining or increasing the package price. a. b. c. d. e. Top-down marketing Trading up Bottom-up marketing Game-playing Downsizing Register to View AnswerPage: 243 Rationale: Text term definitiondownsizing 11-108 DOWNSIZING DEFINITION Downsizing is reducing the: a. b. c. d. e. quality of materials used in a product line. product's price for a smaller package. content of a package without changing its size while maintaining or increasing the package price. number of product features offered to consumers. number of brands offered and the total number of products manufactured. Register to View AnswerPage: 243 Rationale: Text term definitiondownsizing 11-109 DOWNSIZING APPLICATION Since the creation of the Hershey candy bar over 100 years ago, the price of chocolate has fluctuated, but the price of the candy bar has slowly risen. In fact, when the price of chocolate had dramatic price fluctuations over a three-year period, the price of a Hershey's candy bar remained the same. When the price of chocolate was very high, Hershey's was able to maintain its profits by making the bars smaller. Hershey's engaged in: a. b. c. d. e. top-down marketing. trading up. bottom-up marketing. game-playing. downsizing. Register to View AnswerPage: 243 Other Location: web Rationale: Downsizing is reducing the content of packages without changing package size while maintaining or increasing the package price. 697 11-110 BRANDING DEFINITION The decision an organization makes to use a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors is called: a. b. c. d. e. product identification. branding. trademarking. copyrighting. licensing. Register to View AnswerPage: 244 Rationale: Key term definitionbranding 11-111 BRAND NAME DEFINITION A ___________ is any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services. a. b. c. d. e. copyright trade name brand mark brand name generic brand Register to View AnswerPage: 244 Rationale: Key term definitionbrand name 11-112 BRAND NAME DEFINITION A brand name is: a. b. c. d. e. any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's goods or services. the part of a brand name that can be spoken. the part of a brand that is a symbol or design and cannot be spoken. the commercial, legal name under which a company does business. legal identification of a company's exclusive rights to use a brand name, brand mark, or trade name. Register to View AnswerPage: 244 Rationale: Key term definitionbrand name 698 11-113 BRAND NAME APPLICATION The stylized blue and white waves in an oval shape that appear on every package of Ocean Spray brand products is an example of a: a. b. c. d. e. copyright. trade name. service market. brand name. generic brand. Register to View AnswerPage: 244 Rationale: A brand name is any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's goods or services. 11-114 BRAND PERSONALITY DEFINITION __________ is a set of human characteristics associated with a brand name. a. b. c. d. e. Brand personality A brand mannerism A symbolic brand Brand personification Product personification Register to View AnswerPage: 244 Rationale: Key term definitionbrand personality 11-115 BRAND PERSONALITY APPLICATION When consumers think of Harley-Davidson, the image of a masculine, non-conformist is the likely associated with that brand name. With the Vespa motorscooters, the image is more likely to be a brainy environmentalist that wears polyester and socks that don't match. Both Vespa and Harley-Davidson: a. b. c. d. e. have brand personalities. have created brand mannerisms. are symbolic brands. use brand personification. use product personification. Register to View AnswerPage: 244 Rationale: Brand personality is a set of human characteristics (masculine, non-conformist) associated with a brand name (Harley-Davidson). 699 11-116 VALUE OF BRANDING CONCEPTUAL The primary benefit of branding for consumers is branding makes: a. b. c. d. e. products higher in quality. products lower in price. consumers more efficient shoppers. products higher in value. advertising unnecessary. Register to View AnswerPage: 244 Rationale: Consumers may benefit most from branding. Recognizing competing products by brand names allows them to be more efficient shoppers. Consumers can recognize and avoid products with which they are dissatisfied, while becoming loyal to other, more satisfying brands. Brand loyalty often eases consumers decision making by eliminating the need for an external search. 11-117 BRAND EQUITY DEFINITION Brand equity is: a. b. c. d. e. the resources invested to create a name, phrase, design, symbol, or combination of these to identify a firm's products and distinguish them from those of its competitors. adding customer value to the product brand through additional features or higher-quality materials, or reducing its price. increasing the content contained within the brand's package without changing its size or increasing its price. the net present value of the royalties the firm receives as a result of licensing its brand to other firms to manufacture and/or market. the added value a given brand name gives to a product beyond the functional benefits provided. Register to View AnswerPage: 245 Rationale: Key term definitionbrand equity 700 11-118 CREATING BRAND EQUITY CONCEPTUAL Which of the following is true about the process of creating brand equity? a. b. c. d. e. Marketers have to develop positive brand awareness and an association of the brand in consumers minds with a product class or need to give the brand an identity. A marketer must establish a brands meaning in the minds of consumers. A marketer must get consumers to develop proper responses to a brands identity and meaning. A deep psychological bond characterizes consumerbrand connection and the personal identification consumers have with the brand. All of the above are true about the process of creating brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity arises from a sequential building process consisting of four steps: (1) develop positive brand awareness and an association of the brand in consumers minds with a product class or need to give the brand an identity; (2) establish a brands meaning in the minds of consumers which arises from what a brand stands for; (3) get consumers to develop proper responses to a brands identity and meaning; and (4) developing a deep psychological bond that characterizes consumerbrand connection and the personal identification consumers have with the brand. 11-119 CREATING BRAND EQUITY CONCEPTUAL Which of the following is true about the process of creating brand equity? a. b. c. d. e. Marketers have to develop positive brand awareness and an association of the brand in consumers minds with a product class or need to give the brand an identity. A marketer must establish a brands colors in the minds of consumers. A marketer must get consumers to develop proper responses to a brands distribution strategy. A deep physical bond characterizes consumerbrand connection. All of the above are true about the process of creating brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity arises from a sequential building process consisting of four steps: (1) develop positive brand awareness and an association of the brand in consumers minds with a product class or need to give the brand an identity; (2) establish a brands meaning in the minds of consumers which arises from what a brand stands for; (3) get consumers to develop proper responses to a brands identity and meaning; and (4) developing a deep psychological bond that characterizes consumerbrand connection and the personal identification consumers have with the brand. 701 11-120 CREATING BRAND EQUITY CONCEPTUAL Which of the following is true about the process of creating brand equity? a. b. c. d. e. Marketers have to develop positive brand awareness and an association of the brand in consumers minds with a product color. A marketer must establish a brands meaning in the minds of consumers. A marketer must get consumers to develop proper responses to a brands distribution strategy. A deep physical bond characterizes consumerbrand. All of the above are true about the process of creating brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity arises from a sequential building process consisting of four steps: (1) develop positive brand awareness and an association of the brand in consumers minds with a product class or need to give the brand an identity; (2) establish a brands meaning in the minds of consumers which arises from what a brand stands for; (3) get consumers to develop proper responses to a brands identity and meaning; and (4) developing a deep psychological bond that characterizes consumerbrand connection and the personal identification consumers have with the brand. 11-121 CREATING BRAND EQUITY CONCEPTUAL Which of the following is true about the process of creating brand equity? a. b. c. d. e. Marketers have to develop positive brand awareness and an association of the brand in consumers minds with a product color. A marketer must establish a brands meaning in the minds of competitors. A marketer must get consumers to develop proper responses to a brands identity and meaning. A deep physical bond characterizes consumerbrand connection. All of the above are true about the process of creating brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity arises from a sequential building process consisting of four steps: (1) develop positive brand awareness and an association of the brand in consumers minds with a product class or need to give the brand an identity; (2) establish a brands meaning in the minds of consumers which arises from what a brand stands for; (3) get consumers to develop proper responses to a brands identity and meaning; and (4) developing a deep psychological bond that characterizes consumerbrand connection and the personal identification consumers have with the brand. 702 11-122 CREATING BRAND EQUITY CONCEPTUAL Which of the following is true about the process of creating brand equity? a. b. c. d. e. Marketers have to develop positive brand awareness and an association of the brand in consumers minds with a product color. A marketer must establish a brands meaning in the minds of competitors. A marketer must get consumers to develop proper responses to a brands distribution strategy. A deep psychological bond characterizes consumerbrand connection and the personal identification consumers have with the brand. All of the above are true about the process of creating brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity arises from a sequential building process consisting of four steps: (1) develop positive brand awareness and an association of the brand in consumers minds with a product class or need to give the brand an identity; (2) establish a brands meaning in the minds of consumers which arises from what a brand stands for; (3) get consumers to develop proper responses to a brands identity and meaning; and (4) developing a deep psychological bond that characterizes consumerbrand connection and the personal identification consumers have with the brand. 11-123 VALUING BRAND EQUITY CONCEPTUAL Which of the following is true about the value of brand equity? a. b. c. d. e. Brand equity is an intangible asset. Brand equity has an economic value to the manufacturer. Brand equity can increase in value when effectively managed. Brand equity can lose value when ineffectively managed. All of the above are true about the value of brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity also provides a financial advantage for the brand owner. Successful, established brand names have an economic value. They are intangible assets. The recognition that brands are assets is apparent in the decision to buy and sell brands such as Hawaiian Punch. Brands can increase in value when effectively managed. They can lose value when they are not managed properly. 703 11-124 VALUING BRAND EQUITY CONCEPTUAL Which of the following is true about the value of brand equity? a. b. c. d. e. Brand equity is an intangible asset. Brand equity does not have an economic value to the manufacturer. Brand equity will not increase in value when effectively managed. Brand equity will not decrease in value when ineffectively managed. All of the above are true about the value of brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity also provides a financial advantage for the brand owner. Successful, established brand names have an economic value. They are intangible assets. The recognition that brands are assets is apparent in the decision to buy and sell brands such as Hawaiian Punch. Brands can increase in value when effectively managed. They can lose value when they are not managed properly. 11-125 VALUING BRAND EQUITY CONCEPTUAL Which of the following is true about the value of brand equity? a. b. c. d. e. Brand equity is a tangible asset. Brand equity has an economic value to the manufacturer. Brand equity will not increase in value when effectively managed. Brand equity will not lose value when ineffectively managed. All of the above are true about the value of brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity also provides a financial advantage for the brand owner. Successful, established brand names have an economic value. They are intangible assets. The recognition that brands are assets is apparent in the decision to buy and sell brands such as Hawaiian Punch. Brands can increase in value when effectively managed. They can lose value when they are not managed properly. 11-126 VALUING BRAND EQUITY CONCEPTUAL Which of the following is true about the value of brand equity? a. b. c. d. e. Brand equity is a tangible asset. Brand equity has no economic value to the manufacturer. Brand equity can increase in value when effectively managed. Brand equity cannot lose value when ineffectively managed. All of the above are true about the value of brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity also provides a financial advantage for the brand owner. Successful, established brand names have an economic value. They are intangible assets. The recognition that brands are assets is apparent in the decision to buy and sell brands such as Hawaiian Punch. Brands can increase in value when effectively managed. They can lose value when they are not managed properly. 704 11-127 VALUING BRAND EQUITY CONCEPTUAL Which of the following is true about the value of brand equity? a. b. c. d. e. Brand equity is a tangible asset. Brand equity has no economic value to the manufacturer. Brand equity cannot increase in value when effectively managed. Brand equity can lose value when ineffectively managed. All of the above are true about the value of brand equity. Register to View AnswerPage: 245-246; Figure 11-5 Rationale: Brand equity also provides a financial advantage for the brand owner. Successful, established brand names have an economic value. They are intangible assets. The recognition that brands are assets is apparent in the decision to buy and sell brands such as Hawaiian Punch. Brands can increase in value when effectively managed. They can lose value when they are not managed properly. 11-128 PICKING A GOOD BRAND NAME CONCEPTUAL All of the following are criteria for selecting a good brand name EXCEPT: a. b. c. d. e. suggests product features. suggests product benefits. fits the company or product image. is memorable, distinctive, and positive. is simple. Register to View AnswerPage: 246 Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. 705 11-129 PICKING A GOOD BRAND NAME CONCEPTUAL Which of the following are criteria for selecting a good brand name? a. b. c. d. e. should have no legal or regulatory restrictions suggests product benefits fits the company or product image is memorable, distinctive, and positive All of the above are criteria for selecting a good brand name. Register to View AnswerPage: 246 Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. 11-130 PICKING A GOOD BRAND NAME CONCEPTUAL Which of the following are criteria for selecting a good brand name? a. b. c. d. e. should have no legal or regulatory restrictions suggests product features fits the consumers image blends with the culture All of the above are criteria for selecting a good brand name. Register to View AnswerPage: 246 Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. 706 11-131 PICKING A GOOD BRAND NAME CONCEPTUAL Which of the following are criteria for selecting a good brand name? a. b. c. d. e. should be complex so it stands out suggests product benefits fits the consumers image blends with the culture All of the above are criteria for selecting a good brand name. Register to View AnswerPage: 246 Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. 11-132 PICKING A GOOD BRAND NAME CONCEPTUAL Which of the following are criteria for selecting a good brand name? a. b. c. d. e. should be complex so it stands out suggests product features fits the company or product image blends with the culture All of the above are criteria for selecting a good brand name. Register to View AnswerPage: 246 Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. 707 11-133 PICKING A GOOD BRAND NAME CONCEPTUAL Which of the following are criteria for selecting a good brand name? a. b. c. d. e. should be complex so it stands out suggests product features fits the consumers image is memorable, distinctive, and positive All of the above are criteria for selecting a good brand name. Register to View AnswerPage: 246 Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. 11-134 BRAND NAME APPLICATION Imagine the President of Black Stoves, Inc. is thinking about developing a new brand name for the company's line of wood stoves with catalytic converters. The stove because of its design also conserves wood because it burns slowly. The brand name he is considering is The Fast One. Why is this brand name choice NOT the best one? a. b. c. d. e. The name should be distinctive and memorable. The name should fit the company image. The name should have no legal restrictions. The name should be simple. The name should suggest the product benefits. Register to View AnswerPage: 246 Other Location: web Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. This brand name does not suggest the product's benefits. It meets the other criteria and guidelines reasonably well. 708 11-135 BRAND NAME APPLICATION Use the five criteria for selecting a good brand name to determine which of the following is the best choice. a. b. c. d. e. Spam canned meat Ken's salad dressing Formula 409 cleaner Match Light charcoal Bayer aspirin Register to View AnswerPage: 246 Rationale: It is often a difficult and expensive process to pick a good brand name. The five criteria mentioned most often when selecting a good brand name are: (1) the name should suggest the product benefits; (2) the name should be memorable, distinctive, and positive; (3) the name should fit the company or product image; (4) the name should have no legal or regulatory restrictions; and (5) the name should be simple and emotional. In the international arena, having a non-meaningful brand name has been considered a benefit. Only Match Light is simple and distinctive. The name suggests the product benefit, and it has no legal restrictions. The name is memorable and positive. 11-136 MANUFACTURER BRANDING DEFINITION With __________, the producer dictates the brand name using either a multiproduct or multibrand approach. a. b. c. d. e. retailer branding intermediary licensing manufacturer branding co-branding Register to View AnswerPage: 247 Rationale: Text term definitionmanufacturer branding 709 11-137 MANUFACTURER BRANDING DEFINITION Manufacturer branding is: a. b. c. d. e. a statement indicating the liability of the manufacturer for product deficiencies. a branding strategy in which the producer dictates the brand name, using either a multiproduct or multibrand approach. a branding strategy in which a company uses one name for all of its products. It is often referred to as a blanket or family branding strategy. a branding strategy in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer, also called private labeling or reseller branding. a contractual agreement whereby a company allows someone else to use its brand name and usually requires the product be made to its specifications. Register to View AnswerPage: 247 Rationale: Text term definitionmanufacturer branding 11-138 MANUFACTURER BRANDING DEFINITION With manufacturer branding the producer dictates the brand name using either a: a. b. c. d. e. regional or national approach. domestic or international strategy. multiproduct or multibrand approach. competitor-focused or consumer-oriented approach. tactical or strategic objective. Register to View AnswerPage: 247 Rationale: Text term definitionmanufacturer branding 11-139 MULTIPRODUCT BRANDING DEFINITION Multiproduct branding is: a. b. c. d. e. a statement indicating the liability of the manufacturer for product deficiencies. a strategy where products are given no identifying names other than a description of their contents. a branding strategy in which a company uses one name for all of its products. a branding strategy in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer, also called private labeling or reseller branding. a contractual agreement whereby a company allows someone else to use its brand name and usually requires that the product be made to its specifications. Register to View AnswerPage: 247 Rationale: Key term definitionmultiproduct branding 710 11-140 MULTIPRODUCT BRANDING DEFINITION A branding strategy in which a company uses one name for all of its products (often referred to as a blanket or family branding strategy) is called: a. b. c. d. e. co-branding. generic branding. reseller branding. mixed branding. multiproduct branding. Register to View AnswerPage: 247 Rationale: Key term definitionmultiproduct branding 11-141 MULTIPRODUCT BRANDING APPLICATION All products sold by the Tabasco Company are sold using the Tabasco brand. This is an example of: a. b. c. d. e. multiproduct licensing. multibranding. co-branding. generic branding. multiproduct branding. Register to View AnswerPage: 247 Rationale: With multiproduct branding, a company uses one name for all of its products, as Tabasco does. 11-142 BLANKET BRANDING APPLICATION Every product manufactured by the SlimFast Company carries the Slim-Fast brand name. The SlimFast Company uses: a. b. c. d. e. multibranding. single branding. co-branding. blanket branding. agent licensing. Register to View AnswerPage: 247 Rationale: With multiproduct branding (also known as blanket branding), a company uses one name for all of its products. 711 11-143 BLANKET BRANDING APPLICATION Every product manufactured by the Gap carries the Gap brand name. The Gap uses: a. b. c. d. e. multibranding. single branding. co-branding. blanket branding. agent licensing. Register to View AnswerPage: 247 Rationale: With multiproduct branding (also known as blanket branding), a company uses one name for all of its products. 11-144 FAMILY BRANDING APPLICATION Every product manufactured by Ben & Jerrys carries the Ben & Jerrys brand name. Ben & Jerrys uses: a. b. c. d. e. multibranding. single branding. co-branding. family branding. agent licensing. Register to View AnswerPage: 247 Rationale: With multiproduct branding (also known as family branding), a company uses one name for all of its products. 11-145 LINE EXTENSIONS DEFINITION When a company uses line extension it is: a. b. c. d. e. manufacturing a product under a new brand name that consumers will view as an entirely new product line. using a current brand name to enter a new market segment in its product class. speeding up the movement of a product category through its PLC. contracting with another firm to manufacture modified versions of the original products. applying the current brand name to enter a completely different product class. Register to View AnswerPage: 247 Rationale: Text term definitionline extensions 712 11-146 LINE EXTENSIONS APPLICATION 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. The manufacturer of Bayer aspirin is using: a. b. c. d. e. channel extension subbranding line extension co-branding multibranding Register to View AnswerPage: 247 Rationale: Bayer aspirin is using line extensions, the practice of using a current brand name to enter a new market segment in its product class. 11-147 LINE EXTENSIONS CONCEPTUAL Which of the following statements about line extensions is true? a. b. c. d. e. A line extension strategy typically leads to increased advertising costs. There are no risks associated with a line extension strategy. When the Clorox Company joins with Kroger supermarkets to advertise Clorox products, it is an example of a line extension. A line extension is used with multiproduct branding. A line extension is used with multibranding. Register to View AnswerPage: 247 Rationale: Line extensions, the practice of using a current brand name to enter a new market segment in its product class, is a multiproduct branding strategy that can reduce advertising costs because the same name is used on all products, thus raising the level of brand awareness. A risk with line extensions is that sales of an extension may come at the expense of other items in the company's product line. Alternative c describes cooperative advertising. Alternative e is the strategy of giving each product its own brand name. 713 11-148 LINE EXTENSIONS CONCEPTUAL Which of the following statements about line extensions is true? a. b. c. d. e. A line extension strategy typically leads to decreased advertising costs. There are no risks associated with a line extension strategy. When the Clorox Company joins with Kroger supermarkets to advertise Clorox products, it is an example of a line extension. A line extension is used with reseller branding. A line extension is used with multibranding. Register to View AnswerPage: 247 Rationale: Line extensions, the practice of using a current brand name to enter a new market segment in its product class, is a multiproduct branding strategy that can reduce advertising costs because the same name is used on all products, thus raising the level of brand awareness. A risk with line extensions is that sales of an extension may come at the expense of other items in the company's product line. Alternative c describes cooperative advertising. Alternative d is the strategy manufacturing products but selling them under the retailer or wholesaler brand name. Alternative e is the strategy of giving each product its own brand name. 11-149 LINE EXTENSIONS CONCEPTUAL Which of the following statements about line extensions is true? a. b. c. d. e. A line extension strategy typically leads to increased advertising costs. There are risks associated with a line extension strategy. When the Clorox Company joins with Kroger supermarkets to advertise Clorox products, it is an example of a line extension. A line extension is used with reseller branding. A line extension is used with multibranding. Register to View AnswerPage: 247 Rationale: Line extensions, the practice of using a current brand name to enter a new market segment in its product class, is a multiproduct branding strategy that can reduce advertising costs because the same name is used on all products, thus raising the level of brand awareness. A risk with line extensions is that sales of an extension may come at the expense of other items in the company's product line. Alternative c describes cooperative advertising. Alternative d is the strategy manufacturing products but selling them under the retailer or wholesaler brand name. Alternative e is the strategy of giving each product its own brand name. 714 11-150 SUBBRANDING DEFINITION Combining a family brand with a new brand is called: a. b. c. d. e. subbranding. multiproduct branding. mixed branding. generic branding. family branding. Register to View AnswerPage: 247 Other Location: web Rationale: Text term definitionsubbranding 11-151 BRAND EXTENSION DEFINITION Brand extensions require: a. b. c. d. e. manufacturing a product under a new name that consumers will view as an entirely new product line. manufacturing a new product with the same brand name for a new market segment in the same product class so consumers will view it as a logical addition to the original product line. manufacturing accessory products such as Barbie clothes for Barbie Dolls. licensing another firm to manufacture modified versions of the original products. applying the current brand name to enter a completely different product class. Register to View AnswerPage: 247 Rationale: Text term definitionbrand extension 11-152 BRAND EXTENSION APPLICATION Gerber had tremendous brand equity with its baby food. The use of a __________ strategy to use the Gerber name on a bibs, plastic baby bottles, and pacifiers seemed logical. a. b. c. d. e. brand extension family branding co-branding blanket branding mixed branding Register to View AnswerPage: 247 Rationale: A brand extension strategy applies the current brand name to enter a completely different product class. Gerber applied the brand name that had been used successfully for food to baby accessories. 715 11-153 MULTIBRANDING DEFINITION Multibranding is: a. b. c. d. e. a branding strategy that involves giving each product a distinct name. a branding strategy that uses different brand names for the same product across multiple countries. a branding strategy in which a company uses one name for multiple products. a branding strategy in which manufacturers produce products but sell them under the brand name of a wholesaler or retailer. a contractual agreement whereby a company allows someone else to use its brand name and usually requires that the product be made to its specifications. Register to View AnswerPage: 248 Rationale: Key term definitionmultibranding 11-154 MULTIBRANDING APPLICATION Mars, Inc. sells Snickers, Milky Way, Twix, Skittles, Dove, Starburst, M&Ms, and Three Musketeer candy. This variety of names is typical of a __________ strategy a. b. c. d. e. co-branding multibranding multiproduct mixed brand private branding Register to View AnswerPage: 248 Rationale: A multibranding strategy involves giving each product a distinct name. Mars uses a branding strategy that gives each of its products a distinct name. 11-155 MULTIBRANDING DEFINITION A manufacturer's branding strategy in which a distinct name is given to each of its products is called: a. b. c. d. e. multibranding. generic branding. cobranding. mixed branding. multiproduct branding. Register to View AnswerPage: 248 Rationale: Key term definitionmultibranding 716 11-156 MULTIBRANDING APPLICATION Seiko makes watches. It markets its higher quality watches under the Sieko or Lasalle name, and its lower-priced watches are sold under the Pulsar brand. Seiko uses a __________ strategy. a. b. c. d. e. multibranding generic branding multiproduct branding trademarked branding private branding Register to View AnswerPage: 248 Rationale: A multibranding strategy involves giving each product a distinct name. Sieko is making a new line of goods with a different set of product characteristics, and targeted to different markets so they are using the multibranding strategy avoid confusion between the image developed for the high quality line of products and that developed for the lower quality lines. 11-157 PRIVATE BRANDING DEFINITION A company uses __________ when it manufactures products but sells them under the brand name of a wholesaler or retailer. a. b. c. d. e. manufacturer branding private branding generic branding proprietary rights riparian rights Register to View AnswerPage: 248 Rationale: Text term definitionprivate branding 11-158 PRIVATE BRANDING DEFINITION Private branding is: a. b. c. d. e. a branding strategy that involves giving each product a distinct name. a strategy where products are given no identifying names other than a description of its contents. a branding strategy in which a company uses one name for all of its products. a branding strategy in which manufacturers produce products that are sold under the brand name of a wholesaler or retailer. a contractual agreement whereby a company allows someone else to use its brand name and usually requires that the product be made to its specifications. Register to View AnswerPage: 248 Rationale: Text term definitionprivate branding 717 11-159 PRIVATE BRANDING APPLICATION Thirty-six percent of sales at supermarkets in the United Kingdom carry the stores' own brand names. Eighteen percent of all supermarket sales in France and Germany carry the stores' own brand names; and in the US, 14 percent do. These supermarkets are using a __________ strategy to sell consumer food. a. b. c. d. e. private branding generic branding multibranding co-branding multiproduct branding Register to View AnswerPage: 248 Rationale: Private branding involbes manufacturing a product but selling them under the brand name of a wholesaler or retailer. In this case each grocery chain is selling products manufactured by others under their own brand name. 11-160 MARKETING NEWSNET CONCEPTUAL Which of the following statements about Pez is true? a. b. c. d. e. Pez comes from the German word for peppermint, pfefferminz. Pez was successfully sold in Europe as an adult breath mint. Pez was originally packaged in a headless dispenser. Pez first appeared in the United States in 1953. All of the above statements about Pez are true. Register to View AnswerPage: 249 Rationale: The Marketing NewsNet describes how Pez creates customer value through packaging. The package was changed from a hygienic headless container to one with a licensed character head on it to increase sales to the preteen and teenage target markets. 11-161 MIXED BRANDING DEFINITION Mixed branding is a branding strategy: a. b. c. d. e. that involves giving each product a distinct name. that uses different brand names for the same product across multiple countries. in which a company uses one name for all of its products. in which a company markets products under their own name and that of a reseller. in which a company follows both manufacturer and generic branding approaches for products in its mix. Register to View AnswerPage: 249 Rationale: Text term definitionmixed branding 718 11-162 MIXED BRANDING DEFINITION A branding strategy in which a company markets products under its own name and that of a reseller is called: a. b. c. d. e. multibranding. generic branding. private branding. mixed branding. multiproduct branding. Register to View AnswerPage: 249 Rationale: Text term definitionmixed branding 11-163 PACKAGING DEFINITION Packaging is: a. b. c. d. e. any box, bottle, jar, can, carton or bag that can be used for transporting durable or nondurable goods. any container in which a product is offered for sale and on which information is communicated. that part of a product that is not consumed. any container used for storage of consumer or industrial goods. accurately described by none of the above. Register to View AnswerPage: 249 Rationale: Key term definitionpackaging 11-164 LABEL DEFINITION A label: a. b. c. d. e. is an integral part of the package. typically identifies the product or brand. is typically an expensive part of the marketing strategy for a product. provides important benefits for manufacturers, retailers, and consumers. is accurately described by all of the above. Register to View AnswerPage: 249 Rationale: Text term definitionlabel 719 11-165 PACKAGING CONCEPTUAL Which of the following can be conveyed through packaging? a. b. c. d. e. communication benefits storage benefits perceptual benefits protection benefits all of the above Register to View AnswerPage: 250 Rationale: Packaging and labeling cost companies about $100 billion annually and account for about 15 cents of every dollar spent by consumers for products. Despite the cost, packaging and labeling are essential because both provide important benefits for the manufacturer, retailer, and ultimate consumer. They include: (1) communication benefits, (2) functional benefits including storage, and (3) perceptual benefits. 11-166 PACKAGING CONCEPTUAL Which of the following statements about packaging is true? a. b. c. d. e. Packaging can have brand equity benefits for the company. Consumer protection is an important function of packaging. Packaging can give the idea of status, economy, and product quality. Packaging can be used to extend shelf life. All of the above statements about packaging are true. Register to View AnswerPage: 250 Other Location: web Rationale: Packaging and labeling cost companies about $100 billion annually and account for about 15 cents of every dollar spent by consumers for products. Despite the cost, packaging and labeling are essential because both provide important benefits for the manufacturer, retailer, and ultimate consumer. They include: (1) communication benefits, (2) functional benefits including storage, and (3) perceptual benefits. Specific benefits include brand equity benefits for the company, consumer protection, image benefits for the company and customer, and extending the shelf life of the product. 720 11-167 PACKAGING CONCEPTUAL Which of the following statements does NOT describe a benefit associated with packaging? a. b. c. d. e. Packaging provides consumers with valuable and necessary information about directions regarding product usage and its composition. Packaging extends a product's shelf life. Packaging is an inexpensive product strategy to implement. Packaging potentially increases product sales. Packaging connotes product benefits or enhances psychographic attributes of the product. Register to View AnswerPage: 250 Rationale: Packaging and labeling cost companies about $100 billion annually and account for about 15 cents of every dollar spent by consumers for products. Despite the cost, packaging and labeling are essential because both provide important benefits for the manufacturer, retailer, and ultimate consumer. They include: (1) communication benefits, (2) functional benefits including storage, and (3) perceptual benefits. 11-168 PACKAGING CONCEPTUAL Packages create customer value by providing: a. b. c. d. e. legal disclaimers. psychographic attributes about the product. communication, functional, and perceptual benefits. environmental impact statements. all of the above. Register to View AnswerPage: 250 Rationale: Major benefits of packaging are the information communicated to consumers, its functional benefits such as protection or storage, and the perception created in the consumers' minds. 11-169 COMMUNICATION BENEFITS OF PACKAGING DEFINITION Directions on how to use a product and the composition of a product that appear on packaging are what kind of benefits? a. b. c. d. e. communication benefits storage benefits perceptual benefits protection benefits all of the above Register to View AnswerPage: 250 Rationale: A major benefit of packaging is the label information on it that is communicated to consumers. 721 11-170 FUNCTIONAL BENEFITS OF PACKAGING DEFINITION Packaging that provides convenience, protection, or storage offers what kind of benefits? a. b. c. d. e. communication benefits functional benefits perceptual benefits physiological benefits all of the above types of benefits Register to View AnswerPage: 250 Other Location: web Rationale: Packaging often plays an important functional role such as convenience, protection, or storage. 11-171 PERCEPTUAL BENEFITS OF PACKAGING DEFINITION The ideas of status, economy, and product quality that packaging creates in the consumer's mind relates to what kind of benefits? a. b. c. d. e. communication benefits functional benefits perceptual benefits physical benefits all of the above types of benefit Register to View AnswerPage: 250 Rationale: Packaging plays an important perceptual role in helping to position the product in the consumers mind in terms of status, economy, and product quality. 11-172 PERCEPTUAL BENEFITS OF PACKAGING CONCEPTUAL A package can connote: a. b. c. d. e. status, economy, and product quality. economy, barter price, and distribution strategy. all of the elements of the marketing mix. product quality, company size, and industry growth rate. consumerism, environmentalism, and industry ethical standards. Register to View AnswerPage: 250 Rationale: A component of packaging and labeling is the perception created in the consumers mind. Characteristics such as shape and color can connote status, economy, and product quality. 722 11-173 PACKAGING APPLICATION How does General Mills Gold Medal flour brand provide functional benefits through its packaging? a. b. c. d. e. By including company contact information on the bag By including the Betty Crocker seal of approval on the bag By using a fancier, gold-embellished label than the one currently used By using a resealable plastic bag instead of a paper bag All of the above would provide functional benefits through packaging. Register to View AnswerPage: 250 Rationale: Alternative a provides a communication benefit. Alternative b provides a perceptual benefit as the Betty Crocker seal connotes quality to many consumers. Alternative c might be a perceptual benefit, however the price for the additional seal would be unacceptable for this type of product and would not be seen by most consumers as a benefit. Alternative d is a functional benefit, as it allows storage of the flour in the original packaging, whereas the paper bag package does not. 11-174 PACKAGING APPLICATION How does General Mills Gold Medal flour brand provide perceptual benefits through its packaging? a. b. c. d. e. By including company contact information on the bag By including the Betty Crocker seal of approval on the bag By using a fancier, gold-embellished label than the one currently used By using a resealable plastic bag instead of a paper bag All of the above would provide functional benefits through packaging. Register to View AnswerPage: 250 Rationale: Alternative a provides a communication benefit. Alternative b provides a perceptual benefit as the Betty Crocker seal connotes quality to many consumers. Alternative c might be a perceptual benefit, however the price for the additional seal would be unacceptable for this type of product and would not be seen by most consumers as a benefit. Alternative d is a functional benefit, as it allows storage of the flour in the original packaging, whereas the paper bag package does not. 723 11-175 PACKAGING APPLICATION How does General Mills Gold Medal flour brand provide communication benefits through its packaging? a. b. c. d. e. By including company contact information on the bag By including the Betty Crocker seal of approval on the bag By using a fancier, gold-embellished label than the one currently used By using a resealable plastic bag instead of a paper bag All of the above would provide functional benefits through packaging. Register to View AnswerPage: 250 Rationale: Alternative a provides a communication benefit. Alternative b provides a perceptual benefit as the Betty Crocker seal connotes quality to many consumers. Alternative c might be a perceptual benefit, however the price for the additional seal would be unacceptable for this type of product and would not be seen by most consumers as a benefit. Alternative d is a functional benefit, as it allows storage of the flour in the original packaging, whereas the paper bag package does not. 11-176 MANAGING THE MARKETING OF SERVICES CONCEPTUAL The concepts of the product part of the marketing mix usually apply well to service with three exceptions. They are: a. b. c. d. e. exclusivity, branding, and capacity management exclusivity, pricing, and branding branding, capacity management, and promotion capacity management, pricing, and promotion pricing, promotion, and place Register to View AnswerPage: 251 Rationale: Only alternative a lists product elements of the marketing mix. Alternative b includes pricing, not a product element. Alternative c includes promotion, not a product element. Alternative d includes both pricing and promotion. Alternative c includes all the other elements of the marketing mix except product elements. 724 11-177 MARKETING MIX FOR SERVICES CONCEPTUAL When designing the product element of the marketing mix for services marketing managers should give special attention to: a. b. c. d. e. exclusivity, advertising, and capacity management. exclusivity, branding, and capacity management. advertising, packaging, and exclusivity. capacity management, packaging and advertising. brand name, packaging, and exclusivity. Register to View AnswerPage: 251 Rationale: There are three aspects of the product/service element of the mix that warrant special attention; exclusivity, branding, and capacity management. 11-178 PATENTS CONCEPTUAL A patent gives a manufacturer of goods exclusive rights for 17 years. A major difference between goods and services is that: a. b. c. d. e. services can be patented for the life of the creator. services can be patented for 21 years. services can be patented only for 10 years. services cannot be patented. there is no need to patent services. Register to View AnswerPage: 251 Rationale: Because services are intangibles, and normally based on an idea rather than a process, they cannot be patented under current law. Such aspects of a service business as its name, corporate colors, and slogans, however, can be copyrighted. 11-179 BRANDING SERVICES CONCEPTUAL The use of brand names is especially important for services because of which unique characteristic of services? a. b. c. d. e. inventory costs inseparability inconsistency invisibility intangibility Register to View AnswerPage: 251 Rationale: Because services are intangible and, therefore, more difficult to describe, the brand name or identifying logo of the service organization is particularly important in consumer decisions. 725 11-180 BRANDING APPLICATION Cracker Barrel is a leader in the market of family restaurants located alongside major highways. Its marketing mix includes a down-home atmosphere, a shop through which customers pass on the way to and from the restaurant, a menu of American home cooking, and a friendly staff. Which aspect of the product component of the marketing mix will be particularly helpful to travelers looking for a place to eat lunch? a. b. c. d. e. capacity management pricing strategy brand name and identifying logo exclusivity all of the above Register to View AnswerPage: 251 Other Location: web Rationale: Because services are intangible, and there are many competing places to eat at major stops along the highway, brand name or identifying logo of the service organization is particularly important in consumer decisions. 11-181 BRANDING APPLICATION Andrea Arena is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts themselves. This is a strong service brand name because it suggests: a. b. c. d. e. the company has international experience. the benefits provided by the service. the company is employee-owned. the company is a nonprofit organization. the service concept is patented. Register to View AnswerPage: 251 Rationale: Because services are intangible, and therefore, more difficult to describe, the brand name is particularly important. A strong brand name will suggest or describe the benefit of the service. 11-182 CAPACITY MANAGEMENT DEFINITION Integrating the service component of the marketing mix with efforts to influence consumer demand is called: a. b. c. d. e. off-peak pricing. idle production capacity. gap analysis. capacity management. inventory management. Register to View AnswerPage: 251 Rationale: Key term definitioncapacity management 726 11-183 CAPACITY MANAGEMENT APPLICATION An airport limousine service will meet people at their homes and deliver them to or bring them home from their local airport. Because demand is much higher before 9 a.m. and after 5 p.m. during weekdays, it must be concerned with: a. b. c. d. e. exclusivity. image management. branding. inconsistency. capacity management. Register to View AnswerPage: 251 Rationale: Most services have a limited capacity due to the inseparability of the service from the service provider and the perishable nature of the service. So the service component of the mix must be integrated with efforts to influence consumer demand. Service organizations must manage the availability of the offer to smooth demand over time so that the demand matches capacity and ensures a maximum ROI. 11-184 CAPACITY MANAGEMENT CONCEPTUAL A patient must be in a hospital to "buy" an appendectomy, and a guest must be in a hotel to "buy" an accommodation. To make the product/service component of the marketing mix available to the consumer, the service component of the mix must be integrated with efforts to influence consumer demand. What is this called? a. b. c. d. e. allocation of resources timing capacity management customized service facilities analysis Register to View AnswerPage: 251 Rationale: The service component of the marketing mix must be integrated with efforts to influence consumer demand. This is referred to as capacity management. 11-185 MARKETING MIX FOR SERVICES CONCEPTUAL Pricing plays two essential roles in the managing of services. They are: a. b. c. d. e. profit and capacity management. profit and indicator of customer value. influencing consumer perceptions and profit management. influencing consumer perceptions and capacity management. capacity management and cost recovery. Register to View AnswerPage: 251 Rationale: Price can (1) affect consumer perceptions of services (such as eye surgery), and (2) be used in capacity management at services with variations in demand (such as airlines and hotels). 727 11-186 MARKETING MIX FOR SERVICES CONCEPTUAL Which unique characteristic of service has the most influence on pricing? a. b. c. d. e. inventory costs inseparability inconsistency invisibility intangibility Register to View AnswerPage: 251 Rationale: The intangible nature of services makes price an important cue to indicate service quality to the consumer. 11-187 OFF-PEAK PRICING DEFINITION Many service businesses use off-peak pricing, which consists of charging different prices during different times of the day or days of the week to reflect: a. b. c. d. e. variations in costs of delivering service. variations in demand for the service. deviations from standard profit policies. holidays and other special promotional events. government regulations that may apply. Register to View AnswerPage: 251 Rationale: Key term definitionoff-peak pricing 11-188 OFF-PEAK PRICING DEFINITION Setting prices during different times of the day or days of the week to reflect variations in demand for the service is called: a. b. c. d. e. off-peak pricing. idle production capacity pricing. customer contact audit pricing. differential value pricing. capacity inventory pricing. Register to View AnswerPage: 251 Other Location: web Rationale: Key term definitionoff-peak pricing 728 11-189 OFF-PEAK PRICING APPLICATION The headline in a newspaper advertisement for American Airlines proclaimed, "Florida: $199 Round Trip!" A closer examination of the advertisement revealed the special low price airfare applied only to specific travel dates. That is, the $199 price applied to tickets to Florida during the months of July and August. If a consumer wished to travel to Florida during the peak travel times of October through May, the price of the ticket was $499. The airline was engaging in __________ by offering lower prices for tickets during less desirable travel times. a. b. c. d. e. price gouging price differentiation off-peak pricing bait-and-switch pricing package pricing Register to View AnswerPage: 251 Rationale: The capacity management role of price for services is illustrated by off-peak pricing. Off-peak pricing means service providers charge different prices during different times of the day, on weekends, or at different times of the year. The differences in price reflect differences in demand for the service. 11-190 OFF-PEAK PRICING APPLICATION Commuters in New York often have often installed devices on their cars that can be read automatically as they approach a tollbooth. This saves time, improves traffic flow, and means drivers don't need to keep suitable change in the car. It also offers New York authorities the opportunity to manage traffic flow by charging different toll amounts for different times of day. Commuters in New York are experiencing: a. b. c. d. e. price gouging. competitive pricing. off-peak pricing. internal marketing. external marketing. Register to View AnswerPage: 251 Rationale: Off-peak pricing consists of charging different prices during different times of day or days of the week to reflect variations in demand and for service. New York wants to try to reduce traffic during the rush hour. 729 11-191 MARKETING MIX FOR SERVICES CONCEPTUAL Place or distribution is extremely important to the managing services because of which unique characteristic of services? a. b. c. d. e. inventory costs inconsistency inseparability intangibility invisibility Register to View AnswerPage: 252 Rationale: Place or distribution is a major factor in developing service marketing strategy because of the inseparability of services from the producer. 11-192 MARKETING MIX FOR SERVICES CONCEPTUAL Historically in services marketing, little attention has been paid to: a. b. c. d. e. product. price. place (distribution). positioning. promotion. Register to View AnswerPage: 252 Rationale: Historically, in services marketing, little attention has been paid to distribution. But as competition grows, the value of convenient distribution is being recognized. 11-193 MARKETING MIX FOR SERVICES APPLICATION Which of the 4 P's is a variable that health care providers could employ to reach their market segments? a. b. c. d. e. promotion distribution pricing product all of the above Register to View AnswerPage: 251-252 Rationale: Image advertising (promotion), mobile units (distribution), toll-free information lines, specialized treatment centers (product), luxury packages (pricing), and no-frills services are all examples of marketing mix changes for a health care provider. 730 11-194 MARKETING MIX FOR SERVICES CONCEPTUAL Which of the following should be communicated to consumers when promoting services? a. b. c. d. e. courteous service availability location quality all of the above Register to View AnswerPage: 252 Rationale: The value of promotion, specifically advertising, for many services is to show the benefits of purchasing the service. Availability, location, quality and courteous service are benefits to consumers. 11-195 MARKETING MIX FOR SERVICES CONCEPTUAL Which component of the promotional mix is particularly important for nonprofit services? a. b. c. d. e. advertising sales promotion personal selling publicity packaging Register to View AnswerPage: 252 Rationale: Nonprofit organizations often rely on publicity and public service announcements as the foundation of their media plans because publicity and public service announcements are free. 11-196 PUBLIC SERVICE ANNOUNCEMENT DEFINITION A publicity tool frequently used by nonprofit services, which uses free space or time donated by the media is called a(n): a. b. c. d. e. promotion. advertisement. public service announcement. free standing insert. publicity stunt. Register to View AnswerPage: 252 Rationale: Because public service announcements are free, nonprofit groups have tended to rely on them as the foundation for their media plans. 731 11-197 PUBLIC SERVICE ANNOUNCEMENT DEFINITION Many nonprofit organizations have used what are called PSAs in their media planning. What does the abbreviation PSA stand for? a. b. c. d. e. public service announcement publicity savings allocation publicly served audience pluralistic society allotment promotional service allocation Register to View AnswerPage: 252 Rationale: Many services use public service announcements (PSAs), and because PSAs are free, nonprofit organizations have tended to rely on them as a foundation of their media plan. 11-198 PUBLIC SERVICE ANNOUNCEMENT CONCEPTUAL Nonprofit services cannot control who sees a public service announcement or when the message is given because: a. b. c. d. e. PSAs tie up too large a percentage of the service's advertising budget. PSAs are traditionally boring and not well designed. timing and location of the PSA are under the control of the medium, not the organization. PSAs have a very limited reach or scope. PSAs are a form of two-way communication. Register to View AnswerPage: 252 Rationale: The timing and location of a PSA are under the control of the medium, not the organization. 11-199 VIDEO CASE: BMW CONCEPTUAL BMW's strategy is to keep its products in the: a. b. c. d. e. introduction and growth stages. growth and maturity stages. introduction stage. growth stage. growth and maturity stages. Register to View AnswerPage: 254 Rationale: BMW's strategy is to keep its products in the introduction and growth stages by periodically introducing new models in each of its product lines. 732 11-200 VIDEO CASE: BMW CONCEPTUAL Which of the following statements about BMW is true? a. b. c. d. e. BMW cars typically have a product life cycle of seven years. BMW has a trademark naming system for its cars. Pierce Bronson drove a BMW in the James Bond film, Goldeneye. BMW's website is an integrated part of the overall marketing strategy for BMW. All of the above statements about BMW are true. Register to View AnswerPage: 255 Rationale: In the BMW video case the following are discussed: BMW cars typically have a product life cycle of seven years. BMW names its cars with the series number and size of engine, a trademark naming system for its cars. Pierce Bronson drove a BMW in the James Bond film, Goldeneye, thus giving the brand high-visibility promotion. BMWs website is an integrated part of the overall marketing strategy for BMW. On the website you can design your own car, transfer that information to your local dealership and even negotiate prices via the web. 733 CHAPTER 11 MANAGING PRODUCTS, SERVICES, AND BRANDS SHORT ESSAY QUESTIONS 11-201 PRODUCT LIFE CYCLE CONCEPTUAL Identify and describe the stages of the generalized product life cycle. For each stage, specify the marketing objective a firm should attempt to achieve. Answer: 1) Introduction Stage: occurs when new products are first commercialized to their intended target markets. The marketing objective at this stage is to create consumer awareness and stimulate trial (primary demand). 2) Growth Stage: is characterized by rapid increases in product sales as both trials and repeat purchases increase. Because the number of competitors increases, the marketing objective is to differentiate the firm's brand from its competitors through the addition of features or improved product quality (selective demand). 3) Maturity Stage: is characterized by the leveling off of product sales within the total industry or product class. The marketing objective is to maintain brand loyalty and hold market share through further product differentiation, increased promotion and distribution efficiency, and price reductions though rebates and discounts. 4) Decline Stage: occurs when both sales and profits decline due to environmental changes (new technologies appear, consumer preferences change, etc.). The marketing objective is to reduce product support. Page: 234-238;Figure 11-1 11-202 PRIMARY AND SELECTIVE DEMAND DEFINITION Explain the difference between primary demand and selective demand. Answer: Primary demand is a desire for the product class (such as food processors or potatoes) rather than for a specific brand. Demand for a specific brand is referred to as selective demand. Page: 234-235 734 11-203 DECLINE STAGE CONCEPTUAL Describe the decline stage of the product life cycle. Explain the two strategies a company might employ if its product were in the decline stage of the product life cycle. Answer: The decline stage occurs when sales and profits are steadily dropping. Frequently, a product enters this stage not because of any wrong strategy on the part of the company but because of environmental changes. To handle a declining product, a company follows one of two strategies. Deletion is dropping the product from the companys product line and is the most drastic action. Harvesting is when a company keeps the product but reduces marketing costs. Page: 238 11-204 LENGTH OF THE PRODUCT LIFE CYCLE CONCEPTUAL How long is a product life cycle? What determines its length? Answer: There is no exact time that a product takes to move through its life cycle. As a rule, consumer products have shorter life cycles than business products. The availability of mass communication devices such as television and the Internet, informs consumers faster and shortens life cycles. Also, technological change tends to shorten product life cycles as new product innovation replaces existing products. Page: 238-239 11-205 FIVE PRODUCT LIFE CYCLE TYPES CONCEPTUAL What are the five product life cycle types described in the text? For each type, describe (and as an option, draw) its characteristics. Answer: The five product life cycles are: 1) Generalized is the type that is generally discussed in the textit starts at introduction, climbs through growth, plateaus during maturity, and starts to decline during the decline stage. 2) With High-learning PLC significant product education is required by consumers, resulting in an extended introduction stage. 3) With Low-learning PLC significant sales occur during the introduction stage because consumers require little information regarding the product's use or benefits. 4) The Fashion life cycle can repeat as consumer preferences change and then revert back, thus creating several life cycles over many years. Occurs with mens and womens fashion clothing. 5) The Fad life cycle experiences a rapid increase followed by a rapid decrease in sales during a relatively short period of time. Thus, the life cycle primarily consists of an introduction and a decline stage, with highly compressed growth and maturity stages. Page: 239-240 735 11-206 DIFFUSION OF INNOVATION CONCEPTUAL Define diffusion of innovation. Identify and describe the categories and profiles of each product adopter. Answer: The diffusion of innovation is the extent to which a new product or technology spreads or "diffuses" through a population in terms of initial purchases. The five categories of product adopters are: 1) Innovators: These adopters tend to be venturesome, possess higher education, and use multiple information sources before making product purchases. 2) Early Adopters: These adopters are leaders in social settings, and have above average education. 3) Early Majority: These consumers are deliberate when making product purchases and use many informal social contracts as information sources. 4) Late Majority: These consumers are skeptical about new products and possess a lower than average social status. 5) Laggards: These consumers have a fear of debt and rely on neighbors and friends for information regarding new products. Page: 241; Figure 11-4 11-207 MANAGING THE PRODUCT LIFE CYCLE CONCEPTUAL Compare the three ways to manage a product through its product life cycle. Answer: The three ways to manage a product through its life cycle include modifying the product, modifying the market, and repositioning the product. Product modification strategies involve altering a product characteristic, such as quality, performance, or appearance to try to increase and extend its sales and life cycle. With market modification strategies, a company tries to increase a product's use among existing customers, to create new use situations, or to find new customers. Product repositioning is changing the place a product occupies in a consumer's mind relative to competitive products. A firm can reposition a product by changing one or more of the four marketing mix elements. Page: 241-242 736 11-208 ETHICS AND SOCIAL RESPONSIBILITY ALERT APPLICATION For more than 30 years, Starkist put 6.5 ounces of tuna into its regular-sized can. Today, Starkist puts 6.1255 ounces of tuna into its can but charges the same price. Colgate-Palmolive's Ajax king-size laundry detergent package has remained the same size, but the contents have been cut from 61 ounces to 55 ounces and the package price increased from $2.59 to $2.79. There are two sides to the ethical argument about this practice: that of consumer advocates, and that of manufacturers. What is the practice called, and what are the basic positions of the two sides? Answer: The practice is called "downsizing." Consumer advocates charge that downsizing packages while maintaining or increasing prices is a subtle and unannounced way of taking advantage of consumers' buying habits. Manufacturers argue that this practice is a way of keeping prices from rising beyond psychological barriers for their products. Students may or may not believe it is ethical for manufacturers to reduce the contents of their packages without informing consumers. Page: 243 11-209 TRADING UP/TRADING DOWN CONCEPTUAL Explain the difference between trading up and trading down in repositioning a product. Answer: Trading up involves adding value to the product (or line) through additional features or high quality materials. For example, BMW traded up with a new model, 750 sci, which costs $67,000. Trading down involves reducing the number of features, quality, or price. For example, Mercedes traded down its line with the introduction of the Mercedes 190 Sedan. Page: 243 11-210 BRAND NAME AND BRAND PERSONALITY CONCEPTUAL What is the difference between a brand name and a brand personality? Give an example of each. Register to View Answerbrand name is any word, device (design, sound, shape, or color), or combination of these, used to distinguish a seller's goods or services. Some brand names can be spoken, such as Big Mac hamburger. Other brand names cannot be spoken, such as the logo (the rainbow-colored apple) that Apple Computer puts on its machines and in its ads. A brand personality is a set of human characteristics associated with a brand name. Research shows that consumers often assign personality traits to productstraditional, romantic, rugged, sophisticated, rebelliousand choose brands that are consistent with their own or desired self-image. Marketers provide a brand with a personality through advertising that depicts a certain user or usage situation and conveys certain emotions or feelings to be associated with the brand. Coca-Cola personality traits are American, real, and cool. Dr. Peppers are nonconforming, unique, and fun. Page: 244-245 737 11-211 BRAND EQUITY DEFINITION List the four sequential steps used to develop brand equity. Which step is the most difficult? Answer: 1) The first is to develop a positive brand awareness and an association of the brand in consumers' minds with a product class or need to give the brand an identity. 2) Next, a marketer must establish a brand's meaning in the minds of consumers. 3) The third step is to get consumers to develop proper responses to a brand's identify and meaning. 4) The final and most difficult step results in an intense, active loyalty relationship between consumer and the brand. Page: 245-246 11-212 CRITERIA FOR GOOD BRAND NAME CONCEPTUAL What five criteria are mentioned most often in selecting a good brand name? Give an example of a brand name that illustrates each of the criteria. Answer: Five criteria are mentioned most often in selecting a good brand name: 1) The name should suggest the product benefits (e.g. Accutron, Easy-Off). 2) The name should be memorable, distinctive, and positive (e.g., Mustang). 3) The name should fit the company or product image (e.g. Sharp, Snackwell). 4) The name should have no legal restrictions (e.g. Heartwise-using heart is discouraged by FDA). 5) The name should be simple (e.g., Bold, Sure). Internationally, the name should not have any prior impressions or undesirable images among a diverse world population of different languages and cultures. Page: 246-247 738 11-213 BRANDING STRATEGIES CONCEPTUAL Identify and describe the three branding strategies used by product marketers. Answer: Product managers use the following branding strategies: 1) Manufacturer branding: the producer dictates the brand name used. This strategy may use one of two approaches: a) multibranding: occurs when a firm gives each product a distinct name b) multiproduct (family or blanket) branding: occurs when a firm uses one brand name for all of its products. 2) Private branding: the producer manufactures the product but sells them under the brand name of a wholesaler or retailer. 3) Mixed branding: the producer markets products under its own name and also under that of a reseller because the target segment which is attracted to the reseller is different than the target segment of the producer. Page: 247-249 11-214 MANUFACTURER BRANDING CONCEPTUAL What is manufacturer branding strategy? What are the two approaches associated with manufacturer branding strategy. What advantages are offered by each of these two approaches? Answer: Manufacturer branding is a naming strategy in which the producer dictates the brand name. The manufacturer may use either a multiproduct or multibrand approach. Multiproduct branding is when a company uses one name for all its products. This approach is often referred to as a "blanket" or "family" branding strategy. Consumers who have a good experience with one product will transfer this favorable attitude to other products in the product class with the same name. This strategy can also result in lower advertising and promotion costs because the same name is used on all products, thus raising the level of brand awareness. The multibrand approach, or multibranding, involves giving each product a distinct name. Sometimes the same product is sold under different names, especially internationally. Advertising and promotion costs for multibranded products tend to be higher, because the manufacturer must generate awareness among consumers and retailers for each new brand name without the benefit of any previous impressions. However, each brand is unique to each market segment and there is no risk that a product failure will affect other products in the line. Page: 247-248 739 11-215 MULTIPRODUCT BRANDING CONCEPTUAL What is multiproduct branding? What are its advantages? Disadvantages? Answer: Multiproduct branding is when a company uses one brand name for all its products. This approach is often referred to as a blanket or family branding strategy. There are several advantages. Consumers who have had a good experience with one product in the line may also carry a favorable attitude toward other products in the line. This approach can result in lower advertising and promotion costs because the same brand name is used on all products within the line, raising the level of brand awareness. A new product is viewed as an extension of an existing line rather than a totally new item. A blanket branding approach can also facilitate getting the product accepted by retail stores. The disadvantages of multiproduct branding are that: a) poor performance of one item may have a negative impact on similarly named items in the line b) too many uses for one brand name can dilute the image of a product line. Page: 248 11-216 BENEFITS OF PACKAGING CONCEPTUAL Explain the following statement: Packaging provides communication, functional and perceptual benefits for manufacturers, retailers, and consumers. Answer: Packages provide important benefits for the manufacturer, retailer, and ultimate consumer. These benefits include: 1) Communication benefits. A major benefit of packaging is the information on it is conveyed to the consumer, such as directions on how to use the product and what the product is made of, which is needed to satisfy legal requirements of product disclosure. 2) Functional benefits. Packaging often plays an important functional role, such as convenience, protection, or storage. Another functional value of packaging is in extending storage and shelf life (the time a product can be stored before it spoils). 3) Perceptual benefits. Packaging can create a perception in the consumer's mind. For example, in the past the color of packages was selected subjectively. Today, there is greater recognition that color affects a consumer's perceptions. A package can also connote status, economy, or product quality. Page: 250 740 11-217 MANAGING THE MARKETING OF SERVICES CONCEPTUAL What are the three aspects of the product/service element of the marketing mix that warrant special attention by service marketers? Answer: 1) Exclusivity: services are not patentable like goods, which gives manufacturers of goods a 17-year exclusive right to a product's production and marketing. 2) Branding: since services are intangible, the brand name or identifying logo is extremely important in helping potential customers decide to purchase the service because of the difficulty in differentiating a service from its competitors. 3) Capacity management: services possess the attribute of inseparability, which means that the customer must be present to simultaneously buy and use the service at the service delivery site. So the service component of the mix must be integrated with efforts to influence consumer demand. Page: 251 11-218 PRICING SERVICES CONCEPTUAL What role does pricing play in the managing of services? Answer: There are two roles pricing plays in managing services: Consumer perception: Because of the intangible nature of services, consumers have few clues by which to judge their quality. In such cases, consumers use price as an indicator of quality. Therefore, the price of a service can change the perceptions of the value of what is offered. Capacity management: Since it can affect the level of demand for a service, organizations use price to help keep demand within capacity. For example, a movie theater might offer matinee prices or a restaurant might offer luncheon specials to increase demand for the service at that time of day. Prices often are changed as a function of demand according to the time of day or the day of the week. Page: 251 741

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Texas State - PSY - 1310
Chapter 12PRICING PRODUCTS AND SERVICESTest Item TableMajor Section of theChapterLevel of LearningLevel 1: Definition(Knows BasicTerms & Facts)Where Dot-Coms StillThrive(pp. 257-258)Nature andImportance of Price(pp. 258-260)General Pricing
Texas State - PSY - 1310
CHAPTER 13BUILDING THE PRICE FOUNDATIONMULTIPLE CHOICE QUESTIONS13-1 CHAPTER OPENING EXAMPLECONCEPTUALWhat do Expedia, Travelocity, and Priceline have in common?a. They are three websites that use the same Internet service provider (ISP).b. They ar
Texas State - PSY - 1310
1.Suppose that after graduation you find a job that pays you an annual salary of $60,000.After paying taxes of $25,000, you have $35,000 left to pay for basic household expenses(food, shelter, clothing, and transportation), which totals $30,000 or $2,5
Texas State - PSY - 1310
Chapter Two1. The American Red Cross is an entity whose goal is to have its funds received fromoperations exceed its expenses. This entity is an example of a(n)nonprofit organization.offering.for profit cooperative.community action corporation.busi
Texas State - PSY - 1310
MKT301 Kerin book Testbank Pricing, Channels, SCM, MarcomCHAPTER 13BUILDING THE PRICE FOUNDATIONMULTIPLE CHOICE QUESTIONS13-1 CHAPTER OPENING EXAMPLECONCEPTUALWhat do Expedia, Travelocity, and Priceline have in common?a. They are three websites tha
Texas State - PSY - 1310
Chapter1:IntroductiontoManagementMGT3303,Sec.7Tues.8/30/11WhatisManagement?Mgtisgettingworkdonethroughotherpeople.Doyouhavetoknowthespecifics/skillsofthepeopleyoumanage?PatCarrigan,eg(?)EricSchmidt&LarryPageatGoogle?Efficiency:Gettingworkdonewi
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter2HistoryofManagement1OutlineoflectureChangingjobs&theindustrialage Typicalfactoryjob100yearsago ChildLabor NoWeekends Managementcontributorstotherescue! Highlightsfrommajorcontributors2Jobschangedinthein
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter4Ethics&SocialResponsibility1Outlineoflecture Ethicsimpactbusiness Encouragingethicalbehaviors Workplacedeviance Influencesonethicaldecisionmaking Hiringethicalemployees Codeofethics Corporatesocialrespon
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter5Planning&DecisionMaking1Outlineoflecture Planning Goals Planning&decisionmaking Rationaldecisionmaking Groupdecisionmaking2Planning:AdefinitionChoosingagoalanddevelopingastrategytoachievethatgoal!3P
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter6OrganizationalStrategy1Outlineoflecture Sustainablecompetitiveadvantage Stagesofstrategydevelopment Corporatelevelportfoliostrategies Industrylevelstrategies Firmlevelstrategies2Goal:HowtoAchieveSustaina
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter7InnovationandChange1Outlineoflecture Innovation Creativeworkenvironments Typesofinnovation Organizationaldecline Organizationalchangetools/techniques2InnovationMatters19001910 airplane,airconditioners
Texas State - PSY - 1310
Chapter8GlobalManagementOutline1.Thenecessityofglobaltradeandbusiness2.Tradebarriers,protectionism,andtradeagreements3.Someformsofglobalbusiness4.CulturalissuesandchallengesGlobalBusiness&GlobalMgt.Over60%oftherevenueatbothGEandP&Garenowderivedi
Texas State - PSY - 1310
Chapter9DesigningAdaptiveOrganizationsOutlineoflecture DepartmentalizationFunctionalProductCustomerGeographicMatrix Authorityinorganizations Jobdesignapproaches2IntroductionOrganizational StructureThe vertical and horizontal configurationo
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter10ManagingTeams1Outlineoflecture Introductiontoteams Autonomyin&typesofworkgroups WorkteamcharacteristicsNorms,cohesiveness,size,conflict&development Teamdevelopment,training&compensation2Getreadyfortea
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter11ManagingHumanResourceSystemsPartI1Outlineoflecture IntroductiontoHRM Modernchallenges HRMprocess HRPlanning HRInformationSystems LawsthatimpactHRM2HumanResourceManagement(HRM)definedTheprocessoffind
Texas State - PSY - 1310
MGT3303ManagementofOrganizationsChapter11ManagingHumanResourceSystemsPartII1Outlineoflecture Recruitment Selection Training Measuringperformance Compensation2OverviewofrecruitingJob AnalysisInternalRecruitingExternalRecruiting3Jobanaly
CSU San Marcos - MIS - mis430
MIS 430Assignment #21. (10 points) Answer the following questions related to security in 802.11.a. What is WEP? Why do we need WEP?WEP know as Wired Equivalent privacy WEP provides data confidentiality services byencrypting the data sent between wire
CSU San Marcos - MIS - mis430
Consumer ApplicationsToday there are a variety of devices that use GPS. From GPS specific devices, to converged GPSdevices, they all serve the same purpose: that is to determine where the devices current locationis. As far as converged devices go, ther
South Carolina - BIOL - 243
South Carolina - BIOL - 243
South Carolina - BIOL - 243
South Carolina - BIOL - 243
South Carolina - BIOL - 243
Wofford - PHIL - 120
Philosophy Notes (9-25-09)Essential attributes - permanent, if you take away one of them, you no longer have thething. If u state all the essential attributes, you have stated the definition of the thing.Making (Production) - oriented towards beautyDo
Wofford - PHIL - 120
The Stranger NotesPage 1The StrangerLEtranger (1942)The outsiderIn Africa - AlgiersMid to late 1930sMeursault - (indifferent)Doesnt understand social normsDoesnt seem to careNO PHYSICAL DESCRIPTIONDoesnt talk muchStruggle with relationshipsLi
Wofford - PHIL - 120
9-28-09Psychology NotesIf you are making something, you need a skill to make itMaking presents us with a model of understanding human action (perhaps)Boat building and archery are specific activities.all these activities have some sort ofgoal and whe
Wofford - PHIL - 120
9-30-09 Philosophy NotesFirst assignment is going to be on Aristotles view of happinessDefiner - reaching most of your goalsSkeptic - happiness cant be defined at allHappiness following Aristotle and Adler as an activityActivity is better than passiv
Wofford - PHIL - 120
10-6-09 Philosophy NotesConnections between the last chapters of the book and paper on happiness:(heavens) Quint-essence = 5th elementTerrestrial Sphere - 4 elements: earth, air, fire, waterAnything that moves in some sense moves from potential actual
Wofford - PHIL - 120
Page 1Philosophy Notes: 10-5-09Shift our focus away from the human beingThings in motion/changing = substancesIn order for a thing to change or move, we have to understand 2 different states of beingPotential/matterActual/formActual - exists in pre
Wofford - PHIL - 120
Philosophy Notes 10-14-09Page 1Descartes was motivated to know what is true (or real)First Meditation (pg.12):Its not only these few ideas that may be wrong, but its also everything I have built uponthemThe goal of demolishing all of his beliefs was
Wofford - PHIL - 120
Philosophy Notes (10-16-09)Skepticism:Everything can be doubtedNothing can be known with certaintySuspend judgment; stop philosophizingOld Physics/Science:AristotleSubjective vs. Objective view of natureThis diagram is considered to be a basic fra
Wofford - PHIL - 120
Philosophy Notes (Page 1)10-19-09Meditation II: Wax Experiment corporealBottom of page 19-20Any thought that occurs is real, regardless of anything in the external world.He can trust that his consciousness is real and exists, and as long as he is ref
Wofford - PHIL - 120
Philosophy Notes (Page 1)Meditation 3Why does he say I exist as a thinking thingHe only knows with certainty that he has a mindHow he perceives the sunBefore he begins, he wants to erode our faith that our senses accurately reports what isthereI ex
Wofford - PHIL - 120
10-26-09 Philosophy NotesPage 1Empiricism: all knowledge derives from sense experience, emotions (fear, what otherpeople say, and what i see, like a movie about polar bears) (Aristotle is not a clear-cuteempiricist, but for our case, he can be put her
Wofford - PHIL - 120
10-28-09 Philosophy Notes (Page 1)Clear and distinct idea/perceptionWhat my understanding clearly and distinctly revealsClear and distinct = optimum conditions of understanding; a test for the truth of any ideaClear = its negation produces a contradic
Wofford - PHIL - 120
Philosophy Notes 10 -30-09Page 1in addition to Washburn 421-434Moodle Hobbs - click on link to a website that is an electronic version of the book.Hobbs is an empiricistRead chapter 1The next paper will be based on an objection to Descartes philosop
Wofford - PHIL - 120
11-4-09 Philosophy NotesPage 1Washburn:Pages 421-431 (Is experience the source of all knowledge?)Pages 320 - 331 (Is the mind nothing but the brain?)MaterialismThe world is a physical world, and nothing but a physical worldEverything is physical (m
Wofford - PHIL - 120
Philosophy Notes 11-13-09Page 1Existentialism:Existence:Traditional Meaning- what is real, actual, vs. unreal, potential, fictionalHuman existence: my life as I experience it is the starting point for philosophy.> subjectivity not equal to objectivi
Wofford - PHIL - 120
11-16-09 Philosophy NotesPage 1 Jean-Paul Sartre (1905-1981) Lecture given in October 1945 German occupation of France 1940-1944 Catholics and communists object to existentialism: Quietism Pessimism Individualism Immortality/Relativism3 slogans:
Wofford - PHIL - 120
11-18-09 Philosophy NotesPage 1Sartre Statements:1. Existence precedes essence2. I am responsible not only for myself but also for all others3. The human being is condemned to be free (I didnt choose to be free)forlornness = thrownness:facts about
Wofford - PHIL - 120
11-11-09 Philosphy NotesPage 1Free will and freedom in WashburnWhen we say freedom we most often think rights.political sideBut political freedom is not the same as metaphysical freedom.although they maybe similarMetaphysical:The individual has a c
Wofford - PHIL - 120
Guide for Argument QuizArgumentA set of reasons and evidence offered in support of a conclusion. Arguments in this sense mustbe distinguished from verbal disputes or disagreements.ConclusionStatement or claim supported by the premises of an argument.
Wofford - PHIL - 120
Take Home Message from Monday:focused on categories reading from Moodle we talked about a substance and its attributes.Substances are the most basis bc without them we wouldnt have qualities or attributes.Difference between man-made and artificial is v
Wofford - PHIL - 120
Does God Exist? (Pg. 16-28)GOD:Not about Aristotle's god, but Judeo-Christian conceptions of GodSENSE EXPERIENCEWe experience things, and through experience we gain knowledgeFirst mover = non-physicalCausal Theist:Causal - God makes everything happ
Wofford - PHIL - 120
Inductive - Deductive - Logical FallaciesInductionDeductionConsists of: Making generalizations Coming to conclusions on thebasis of specific observations Apply a general principle to a specificcaseWeakened by: Insufficient sample Come to a conc
Wofford - ARTH - 201
Quiz #2 ImagesPage 15-2Artist:Title: Geometric KraterLocation: Athens, GreeceStyle Period: GeometricQuiz #2 ImagesPage 25-4Artist:Title: Mantiklos ApolloLocation: Thebes, GreeceStyle Period: OrientalizingQuiz #2 ImagesPage 35-5Artist:Tit
South Carolina - ACCT - 211
JOURNALDateDescriptionPost. RefDebitCreditDateDescriptionPost. RefDebitCredit
South Carolina - ACCT - 211
Ch. 3 Notes (Page 1)THE ROLE OF ACCOUNTING RECORDS:1. establishes accountability for assets and transactions2. keeps track of routine business transactions3. obtains detailed information about a particular transaction4. evaluates efficiency and perfo
South Carolina - ACCT - 211
Ch. 1 Notes (Page 1)ACCOUNTING INFORMATION: accounting links decision makers with economic activities - and with the results of theirdecisions Decision makers:- people who have money to invest- creditors (banks loaning the money)- stockholders/inve
South Carolina - ACCT - 211
Ch. 2 Notes (Page 1)Business Activities:1. service business = architect, lawn service, etc2. merchandising business = retailer3. manufacturing business = make something out of raw materialsOWNERSHIP STRUCTURES:Sole Proprietorship: one owner owner
South Carolina - ACCT - 211
Ch. 4 Notes (Page 1)ACCRUAL BASIS OF ACCOUNTING (ACCRUAL ACCOUNTING):all revenues are recorded in accounting records when earnedall expenses are recorded when incurredMATCHING CONCEPT:to calculate a profit: must compare the revenues earned from provi
South Carolina - ACCT - 211
TRIAL BALANCEAccountDEBITCREDITCASHACCOUNTS RECEIVABLEOFFICE SUPPLIESOFFICE EQUIPMENTVEHICLESNOTES PAYABLEACCOUNTS PAYABLEDIVIDENDS PAYABLEDIVIDENDSCAPITAL STOCKCLIENT REVENUEOFFICE RENT EXPENSESALARY EXPENSEUTILITIES EXPENSETOTAL: _
South Carolina - ACCT - 211
TRIAL BALANCEAccountDEBITCREDITCASHACCOUNTS RECEIVABLEOFFICE SUPPLIESOFFICE EQUIPMENTLANDNOTES PAYABLEACCOUNTS PAYABLEBUILDINGCAPITAL STOCKCLIENT SERVICE REVENUEADVERTISING EXPENSESALARY EXPENSETOTAL: _
South Carolina - ENVIRO - 101
Section 12-6: SUPPLIES OF MINERAL RESOURCESScience and Economics: Supplies of Nonrenewable Mineral ResourcesThe future supply of a nonrenewable mineral depends on: the actual or potential supplyof the mineral and the rate at which we consume it.We nev
South Carolina - ENVIRO - 101
Environmental Science MillerLesson #3Chapter 1 Environmental Problems Their Causes, and SustainabilityReviewSustainabilitythe ability of the earths various systems, including human and cultural systems and cconomies, tosurvivie and adpt to changing
South Carolina - ENVIRO - 101
Ch. 7 Human Population Study Guide4 principles of Sustainability:1.2.3.4.Reliance on Solar Energy:Biodiversity (F,G,S,P):Population Control:Nutrient Cycling:5 steps of Pathway to Sustainability:1.2.3.4.5.There is natural capitalWe degrade
South Carolina - ENVIRO - 101
Chapter 1: NotesPage 1Environmental Worldviews:Planetary ManagementWe are the planets most important and dominant speciesWe can and should manage the earth for our own benefitOther species have value based on how useful they are to usNature belongs
South Carolina - ENVIRO - 101
Chapter 1: Environmental Problems, Their Causes, and Sustainability1.2.3.4.5.What are the six major themes of this book? Natural Capital Natural Capital Degradation Solutions Trade-offs Individuals Matter Sound ScienceWhat keeps us alive? Na
South Carolina - ENVIRO - 101
Environmental Science Test Study GuidePre-Text material and Chapter 1Page 1In book:make sure you understand The Path to Environmental Sustainability - page 7sound sciencepg 14 - causes of environmental problems (5)pg 16 - difference between develop
South Carolina - ENVIRO - 101
Ch. 3 NotesPage 1Ecologystudy of organisms and how they interact with each other and their non-living environment(rocks, water, soil, air, energy)Cells are the basic unit of life. ( other microbes / small things: bacteria, fungi, viruses)MicrobesBr
South Carolina - ENVIRO - 101
Chapter 3 (35-63): Study GuidePage 1What is the definition of ecology?Study of organisms and how they interact with each other and their non-living environmentWhat are examples of Microbes and what important roles dothey play in the ecosystem?Exampl