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Marketing Final Exam

Products marketing mix c the efficiency of the test

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Unformatted text preview: owth c. Maturity d. Decline e. Saturation ANS: A These characteristics illustrate the introductory stage of the product life cycle. PTS: 1 REF: 181 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Application 84. The length of the introductory stage of the product life cycle for a new product is largely determined by: a. the size of the product b. the product’s marketing mix c. the efficiency of the test marketing d. product characteristics, such as advantages over substitute products e. the size of the market ANS: D The introductory stage of the product life cycle is affected by how customers perceive the characteristics of the product. Other factors that affect the length of the introductory stage are the educational effort required to use the item and management’s resource commitment to the item. PTS: 1 REF: 181-182 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 85. The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage. a. growth b. decline c. introductory d. maturity e. commercialization ANS: A Because losses often occur during the introductory stage, profits first appear in the growth stage. PTS: 1 REF: 182 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 86. During the growth stage of the product life cycle: a. there is little emphasis on the distribution strategy b. demand for the product is limited to highincome consumers c. prices increase due to economies of scale d. there is decreased direct competition e. profits peak ANS: E During the growth stage of the product life cycle, profits rise rapidly, reach their peak, and begin declining as competition intensifies. PTS: 1 REF: 182 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 87. At the beginning of the maturity stage of the product life cycle, sales typically: a. become flat and do not change b. increase at an increasing rate c. decrease at a decreasing rate d. decrease at an increasing rate e. increase at a decreasing rate ANS: E In the maturity stage, sales are still increasing, but the rate of increase has slowed down. PTS: 1 REF: 182 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 88. Normally, the longest stage of the product life cycle is the _____ stage. a. maturity b. growth c. introductory d. decline e. development ANS: A Many products, such as major household appliances, are in this stage of their life cycles and have been for years. PTS: 1 REF: 182 Thinking KEY: CB&E Model Product OBJ: 11-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 89. In which stage of the product life cycle do marginal competitors start dropping out of the market? a. Introduction b. Growth c. Maturity d. Decline e. Shake-out ANS: C In the maturity stage, sales increase at a decreasing rate, and as prices and profits continue to fall,...
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