Marketing Final Exam

This new focus could hurt the companys existing

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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 company. 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? a. Heterogeneous shopping products b. Homogeneous shopping products c. Convenience products d. Specialty products e. Unsought products ANS: C Convenience products are relatively inexpensive items that merit little shopping effort. PTS: 1 REF: 158 Thinking 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? a. Style b. Extensive c. Brand d. Ingredient e. Functional ANS: E 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. PTS: 1 REF: 160 Thinking 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. a. reinvent b. reposition c. rename d. modify e. standardize ANS: B Repositioning involves changing consumers’ perceptions of a brand. PTS: 1 REF: 161 Thinking 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 items? a. Product line extension b. Product line contraction c. Product pruning d. Product line retraction e. Functional modification ANS: B Product line contractions involve removing items from the product mix. PTS: 1 REF: 161 Thinking 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 perform? a. Persuasive b. Informational c. Regulatory d. Competitive e. Perceptive ANS: B The two forms of labeling are persuasive and informational. This is an example of informat...
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