Marketing, 14e (Kerin)
1) Which of the following statements about Gatorade is most accurate?
A) The name Gatorade was chosen because as an energy drink it “got you out the gate—fast.”
B) The name Gatorade was coined by a team who lost to the University of Florida Gators,
attributing the Gator win to the “aid” they got from the rehydrating beverage.
C) The green color of the original lemon-lime Gatorade was based on the University of Florida’s
alligator mascot.
D) Gatorade was developed by PepsiCo as a cause-marketing project to provide resources for
women’s sports at the University of Florida as a result of the passage of Title IX in 1972.
E) Gatorade is the only sports drink marketer that doesn’t use sports celebrities to endorse its
products.
2) Gatorade is most likely in which stage of its product life cycle?
A) introduction
B) growth
C) maturity
D) decline
E) fad
3) Which of the following statements regarding Gatorade’s branding is most accurate?
A) Gatorade uses the same formula for all its products and simply changes the brand name when
introducing new flavors.
B) Gatorade’s success can be attributed to management’s decision to find and then stick with one
channel of distribution.
C) Gatorade changed its color, packaging, and size of items in the product line for the domestic
market so that they would not conflict with those marketed to foreign markets.
D) Gatorade has used the same packaging since the product debuted in 1965.
E) Gatorade has changed its product formulation, packaging, and advertising over the years in
response to changes in the marketplace.
4) Gatorade Thirst Quencher was concocted in 1965, but more recently its marketers introduced
Gatorade G Series in 2010. This introduction is an example of a
A) brand extension.
B) cobranding.
C) primary demand.
D) product line extension.
E) product class.
5) Gatorade offers a range of product offerings. The firm uses one name for all its products in a
product class. Gatorade is using a ________ strategy.
A) multibranding
B) family branding
C) co-branding
D) dual branding
E) mixed branding
6) The launch by Gatorade of Gatorade chews, bars, powders, shakes, and yogurt is evidence of
A) dynamic development.
B) discontinuous development.
C) product development.
D) symbiotic development.
E) simultaneous development.
7) Gatorade Thirst Quencher displays the letter G front and center along with the brand’s iconic
bolt. This is an example of ________ benefits of its packaging.
A) perceptual
B) functional
C) communications
D) physical
E) tangible
8) A concept that describes the stages a product goes through in the marketplace—introduction,
growth, maturity, and decline—is referred to as the
A) retail life cycle.
B) product life cycle.
C) marketing mix.
D) product growth cycle.
E) diffusion of product innovation.
9) Product life cycle is defined as
A) the average life span of a product.
B) a concept that describes the stages a new product goes through from product concept to
commercialization.
C) a concept that describes the stages a product goes through in the marketplace—early growth,
accelerated development, maturity, and decline.
D) a concept that describes the stages a product goes through in the marketplace—introduction,
growth, maturity, and decline.
E) the amount of time it takes a product innovation to completely diffuse in the marketplace.
10) Figure 11-1 above represents the stages of the product life cycle. What does the portion of
the curve labeled A represent?
A) introduction
B) launch
C) growth
D) inception
E) decline
11) Figure 11-1 above represents the stages of the product life cycle. What does the portion of
the curve labeled B represent?
A) progression
B) maturity
C) growth
D) accelerated development
E) decline
12) Figure 11-1 above represents the stages of the product life cycle. What does the portion of
the curve labeled C represent?
A) consolidation
B) maturity
C) growth
D) stabilization
E) decline
13) Figure 11-1 above represents the stages of the product life cycle. What does the portion of
the curve labeled D represent?
A) retrenching
B) maturity
C) growth
D) failure
E) decline
14) Figure 11-1 above represents the stages of the product life cycle. What does the curve
labeled X represent?
A) total variable costs
B) total fixed costs
C) total industry profit
D) total industry sales revenue
E) total research and development costs
15) Figure 11-1 above represents the stages of the product life cycle. What does the curve
labeled Y represent?
A) total variable costs
B) total fixed costs
C) total industry profit
D) total industry sales revenue
E) total research and development costs
16) What is the marketing objective for the introduction stage of the product life cycle?
A) harvesting
B) market share
C) stress differentiation
D) maintain brand loyalty
E) gain awareness
17) What is the marketing objective for the growth stage of the product life cycle?
A) minimize promotion
B) increase market share
C) stress differentiation
D) gain awareness
E) maintain brand loyalty
18) What is the marketing objective for the maturity stage of the product life cycle?
A) begin deletion
B) implement skimming
C) stress differentiation
D) gain awareness
E) maintain brand loyalty
19) What is the marketing objective for the decline stage of the product life cycle?
A) harvesting
B) add outlets
C) stress differentiation
D) gain awareness
E) maintain brand loyalty
20) The ________ stage of the product life cycle occurs when a product is launched to its
intended target market.
A) concept
B) introduction
C) growth
D) maturity
E) decline
21) The lack of profit in the introductory stage of the product life cycle is very often the result of
A) pricing the product too low in an attempt to quickly gain market share.
B) targeting the wrong target market segment.
C) a lack of wholesaler support.
D) the large investment costs in product development.
E) ineffective execution of the marketing program.
22) The marketing objective for a product in the ________ stage of the product life cycle is to
create consumer awareness and stimulate trial.
A) introduction
B) growth
C) maturity
D) decline
E) accelerated development
23) Marketing for a product in the introduction stage of its product life cycle should focus
primarily on gaining awareness and which other marketing objective?
A) stress differentiation
B) stimulate trial
C) foster brand loyalty
D) gain as much distribution as possible
E) target a marketing niche
24) The GPS SmartSole is a discreet wearable insole that fits in the shoe and provides GPS
tracking of the wearer. This product is being marketed as an inexpensive solution for caregivers
whose charges are prone to wandering, like those with Alzheimer’s disease or autism. When the
insoles were first made available to consumers, what was the marketing objective for the
company at that early stage of the product life cycle?
A) stress differentiation from other saving products
B) maintain brand loyalty
C) allow users to spend time doing other things
D) create awareness and stimulate trial
E) target a whole new group of consumers
25) Almost two decades ago, Survivor premiered as a reality TV show during the summer season
when TV ratings are normally low and TV viewing options consisted primarily of reruns. The
marketing goals for the first show included making television viewers aware of its existence and
generating enough excitement about the show so that millions of viewers would watch the first
episode. At the airing of the first show, Survivor was in what stage of its product life cycle?
A) introduction
B) growth
C) maturity
D) decline
E) development
26) The initial purchase of a product by a consumer is referred to as a(n)
A) product sampling.
B) first buy.
C) trial.
D) assessment.
E) n examination period.
27) The desire for a product class rather than for a specific brand is called ________ demand.
A) selective
B) primary
C) derived
D) generic
E) secondary
28) Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers.
Such expenditures are often made to stimulate ________, the desire for the product class, rather
than for a specific brand, when there are few competitors with the same product.
A) secondary demand
B) introductory demand
C) primary demand
D) discretionary demand
E) selective demand
29) Primary demand is a desire for the ________ rather than for a ________; it might be the
focus of marketing when there are few competitors with the same product.
A) product class; specific brand
B) problem solution; product category
C) brand name; product category
D) novelty; problem solution
E) product concept; tangible product
30) Promotional expenditures at the introduction stage of the product life cycle are best spent on
A) contests and sweepstakes to stimulate selective demand.
B) product samples to create secondary demand.
C) advertising to stimulate primary demand.
D) personal endorsements to generate word-of-mouth demand.
E) coupons to maintain brand loyalty or static demand.
31) When the Egg Farmers of Canada implemented its “Get Cracking” advertising campaign, the
organization was trying to stimulate ________ demand.
A) secondary
B) selective
C) derived
D) generic
E) primary
32) Cotton Incorporated is funded by cotton growers in the United States. It developed the
“Cotton: The Fabric of Our Lives” advertising campaign as part of its mission “to ensure that
cotton remains the first choice among consumers in apparel and home products.” Because Cotton
Incorporated promotes all cotton producers, it is stimulating ________ demand.
A) selective
B) generic
C) derived
D) primary
E) secondary
33) The preference for a specific brand is called ________ demand.
A) selective
B) secondary
C) primary
D) derived
E) explicit
34) As more competitors launch their own products and the product progresses along its life
cycle, company attention is focused on creating ________ demand, or the preference for a
specific brand.
A) primary
B) selective
C) derived
D) generic
E) secondary
35) Northland Juices, a division of New York-based Apple & Eve, competes with Ocean Spray
in the cranberry juice category. To be successful, Northland must create ________ demand so it
will be selected over competitors.
A) primary
B) derived
C) generic
D) selective
E) secondary
36) During the introduction stage of the product life cycle, the place (distribution) element of the
marketing mix is highly involved with
A) increasing inventory levels at warehouses and distribution centers to meet potential demand.
B) gaining as many retail distribution outlets as possible, even though many will be reluctant to
carry the new product.
C) using an intermodal logistics system to get the products through the marketing channel as
quickly as possible.
D) building storage warehouses and distribution centers to establish an efficient infrastructure for
the new product.
E) obtaining contracts with independent sales agents and brokers instead of using the firm’s
salesforce.
37) The two most common pricing alternatives for products in the introduction stage of the
product life cycle are
A) skimming pricing and penetration pricing.
B) price lining and product line pricing.
C) markdown pricing and quantity discount pricing.
D) skimming pricing and bundle pricing.
E) penetration pricing and experience curve pricing.
38) During the introduction stage of the product life cycle, a(n) ________ pricing strategy may
be used. This pricing strategy charges a high initial price to recoup the costs of product
development.
A) penetration
B) cost-plus
C) target ROI
D) skimming
E) above-market