Unformatted text preview: al foods––foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestlé wants consumers to see chocolate as a pharmaceutical product
rather than just a treat. Part of this new focus includes streamlining the product mix by selling
underperforming items or lines that do not fit its new direction. Critics claim that this new focus
could hurt the company’s existing brands if the new products fail. Additionally, it may be an
uphill battle convincing consumers that a company known for indulgence is now a wellness
130. Refer to Nestlé. Some of Nestlé’s products include bottled water, candy, and coffee, which would
be classified as what type of consumer products?
Heterogeneous shopping products
Homogeneous shopping products
Convenience products are relatively inexpensive items that merit little shopping effort.
KEY: CB&E Model Product OBJ: 10-2 TOP: AACSB Reflective MSC: BLOOMS Application 131. Refer to Nestlé. Nestlé’s quest is to make some of its existing products more nutritious and
provide a health benefit. This is an example of which type of product modification?
Functional modifications involve changes in a product’s versatility, effectiveness, convenience, or
safety. Nestlé is attempting to make its existing products more versatile and effective.
KEY: CB&E Model Product OBJ: 10-3 TOP: AACSB Reflective MSC: BLOOMS Application 132. Refer to Nestlé. After developing these new, functional products, Nestlé will have to change
consumers’ perceptions of its brands because it is known for indulgence, not wellness. Nestlé will
have to _____ itself.
Repositioning involves changing consumers’ perceptions of a brand. PTS: 1
KEY: CB&E Model Product OBJ: 10-3 TOP: AACSB Reflective MSC: BLOOMS Application 133. Refer to Nestlé. What adjustment to its product mix is Nestlé doing when it sells underperforming
Product line extension
Product line contraction
Product line retraction
Product line contractions involve removing items from the product mix.
KEY: CB&E Model Product OBJ: 10-3 TOP: AACSB Reflective MSC: BLOOMS Application 134. Refer to Nestlé. One new product Nestlé intends to introduce includes fiber added to chocolate.
The packages will include the fact that each chocolate bar contains 5 grams of fiber and the
various health benefits of including more fiber in one’s diet. Which form of labeling will this
The two forms of labeling are persuasive and informational. This is an example of informat...
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- Fall '13
- Marketing, AACSB Reflective, CB&E Model Strategy, CB&E Model