Marketing Final Exam

And other tire manufacturers from this information

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Unformatted text preview: marginal competitors start dropping out of the market. PTS: 1 Thinking REF: 182 OBJ: 11-5 TOP: AACSB Reflective KEY: CB&E Model Product MSC: BLOOMS Comprehension 90. BFGoodrich has been manufacturing and marketing automotive tires for over one hundred years. It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear, Dunlop, and other tire manufacturers. From this information, you should know that tires are in the _____ stage of their product life cycle. a. maturity b. growth c. saturation d. decline e. development ANS: A During the maturity stage, heavy consumer promotion by the manufacturer is required to maintain market share. PTS: 1 REF: 182-183 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Application 91. A long-run drop in sales signals the beginning of which stage in the product life cycle? a. Laggard b. Saturation c. Deterioration d. Decline e. Decay ANS: D This is a characteristic of the decline stage of the product life cycle. PTS: 1 REF: 183 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 92. Which of the following products is most likely to be in the decline stage of its product life cycle? a. Cookie mixes b. Wireless mobile phones c. Programmable CD-ROMs d. Funeral caskets e. Prerecorded audiocassette tapes ANS: E Sales are falling, and the product is not being supported by marketing efforts even though there are still some cassette tape players in use. PTS: 1 REF: 183 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Application 93. The rate of sales decline during the decline stage of the product life cycle is largely governed by: a. b. c. d. e. the amount of money spent on advertising the number of competitors in the market the intensity of the competition’s marketing efforts the amount of shelf space allotted to the product how rapidly consumer tastes change or substitute products are adopted ANS: E Changing consumer tastes can force a product into decline, particularly if an alternative is available. PTS: 1 REF: 183 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 94. You are a product manager for a manufacturer of trampolines. You have determined that the trampoline is in the maturity stage of the product life cycle. To keep your product from entering the decline stage, you should: a. use promotion to increase primary demand for trampolines b. abandon peripheral target markets for trampolines c. raise the price of your trampolines because customers are not price sensitive in this stage d. eliminate all unnecessary marketing expense e. promote trampolines heavily to dealers and customers ANS: E Review Learning Outcome 5. PTS: 1 REF: 180-183 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Application 95. Which of the following statements about the product life cycle (PLC) is true? a. The...
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This document was uploaded on 09/29/2013.

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