155) Which of the following quotes from a new-product adopter would signal the need for a firm
to counteract a psychological barrier?
A) “I feel self-conscious wearing this.”
B) “What if I can’t make the monthly payments?”
C) “I don’t want to try this if it means I have to swallow it with milk.”
D) “Big deal, the only difference is the shape of the package.”
E) “Sure I’ll try it; why not!”
156) All of the following marketing actions can be used by a firm to counteract barriers to
product adoption except which?
A) offering money-back guarantees
B) targeting new consumers
C) conducting demonstrations
D) offering free samples
E) providing extensive usage instructions
157) Warranties, money-back guarantees, extensive usage instructions, demonstrations, and free
samples are all ways in which companies attempt to ________ new product adoption.
A) accelerate satisfaction with
B) stabilize at maturity any
C) minimize growth in competition during
D) overcome barriers to
E) prevent the precipitous decline of
158) Manufacturers of all-electric-powered automobiles provide low-cost leasing options in part
to
A) increase profits during the introductory stage of a product’s life cycle.
B) convince laggards to try a new product.
C) recoup research and development costs.
D) influence the product life cycle of fashion products.
E) attempt to overcome barriers to adoption.
159) One of the most popular means to gain consumer trial is through
A) demonstrations.
B) free samples.
C) press releases.
D) celebrity endorsements.
E) product diffusion.
160) A manufacturer of a new all-natural-ingredient shampoo and conditioner puts free samples
of the product in Sunday newspapers to
A) stimulate laggard usage of the product.
B) inhibit the innovation diffusion process.
C) encourage product trial and adoption.
D) erect product adoption barriers against its competitors.
E) circumvent the typical adoption cycle.
161) A product manager is sometimes called a
A) chief marketing officer (CMO).
B) brand manager.
C) marketing manager.
D) category manager.
E) sales manager.
162) Consumer goods firms such as General Mills and PepsiCo as well as industrial firms such
as Intel and Hewlett-Packard employ a product manager to manage
A) all of an organization’s product items or brands.
B) all of an organization’s product classes.
C) all of an organization’s existing products through the stages of their life cycles.
D) all products or brands that require close fiscal scrutiny.
E) a close-knit family of products or brands.
163) All of the following are responsibilities of a product or brand manager except which?
A) engaging in extensive data analysis related to their products and brands
B) developing new products
C) managing existing products through the stages of their life cycles
D) developing and implementing strategies at the corporate level
E) developing and executing a marketing program described in an annual marketing plan for the
product line
164) Managers often use two special measures to help identify strong and weak market segments
in order to provide direction for marketing efforts. One of these is the CDI, or
A) category development index.
B) consumer development index.
C) competitive development index.
D) channel development index.
E) customization development index.
165) Managers often use two special measures to help identify strong and weak market segments
in order to provide direction for marketing efforts. One of these is the BDI, or
A) business development index.
B) brand development index.
C) business-portfolio development index.
D) buyer development index.
E) benchmark development index.
166) Managers often use two special measures to help identify strong and weak market segments
in order to provide direction for marketing efforts. The two measures are the CDI and the BDI,
which stand for
A) comprehensive demographic inventory and brand designation information.
B) consumer demographic index and buyer demographic inventory.
C) category development index and brand development index.
D) consumer development index and brand development inventory.
E) category development index and buyer development inventory.
167) If a firm’s marketing dashboard displays a CDI of 120 for a consumer packaged good like
Hawaiian Punch, this indicates which of the following?
A) a weak brand position in a segment
B) a strong brand position in a segment
C) above-average product category purchases by a market segment
D) below-average product category purchases by a market segment
E) There is not enough information to make any conclusions.
168) If a firm’s marketing dashboard displays a CDI of 80 for a consumer packaged good like
Hawaiian Punch, this indicates which of the following?
A) a weak brand position in a segment
B) a strong brand position in a segment
C) above-average product category purchases by a market segment
D) below-average product category purchases by a market segment
E) There is not enough information to make any conclusions.
169) If a firm’s marketing dashboard displays a BDI of 120 for a consumer packaged good like
Hawaiian Punch, this indicates which of the following?
A) a weak brand position in a segment
B) a strong brand position in a segment
C) above-average product category purchases by a market segment
D) below-average product category purchases by a market segment
E) There is not enough information to make any conclusions.
170) If a firm’s marketing dashboard displays a BDI of 80 for a consumer packaged good like
Hawaiian Punch, this indicates which of the following?
A) a weak brand position in a segment
B) a strong brand position in a segment
C) above-average product category purchases by a market segment
D) below-average product category purchases by a market segment
E) There is not enough information to make any conclusions.
171) The formula ________ is used to calculate CDI.
A) (Percent of the total U.S. population in a market segment ÷ Percent of a brand’s total U.S.
sales in a market segment) × 100
B) (Percent of a product category’s total U.S. sales in a market segment ÷ Percent of the total
U.S. population in a market segment) × 100
C) (Percent of a brand’s total U.S. sales in a market segment ÷ Percent of the total U.S.
population in a market segment) × 100
D) (Percent of the total U.S. population in a market segment ÷ Percent of a product category’s
total U.S. sales in a market segment) × 100
E) of the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,
including the firm itself.
172) The formula ________ is used to calculate BDI.
A) (Percent of the total U.S. population in a market segment ÷ Percent of a brand’s total U.S.
sales in a market segment) × 100
B) (Percent of a product category’s total U.S. sales in a market segment ÷ Percent of the total
U.S. population in a market segment) × 100
C) (Percent of a brand’s total U.S. sales in a market segment ÷ Percent of the total U.S.
population in a market segment) × 100
D) (Percent of the total U.S. population in a market segment ÷ Percent of a product category’s
total U.S. sales in a market segment) × 100
E) of the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,
including the firm itself.
173) As shown in the CDI/BDI Marketing Dashboard above, a BDI of 30 is determined by
A) finding the percent of the U.S. population in the “Households without children” segment
divided by the percent of Hawaiian Punch sold to households without children in the U.S.
multiplied by 100.
B) subtracting the total number of non-users from the total number of users of Hawaiian Punch
sold to households without children.
C) finding the difference in total sales of Hawaiian Punch between households who have
children and those who do not.
D) finding the percent of Hawaiian Punch sold to U.S. households without children divided by
the percent of the U.S. population in the “Households without children” segment multiplied by
100.
E) using the ratio of sales revenue of the firm to the total sales revenue of all firms in the
industry, including the firm itself.
174) If you were a marketing manager and were presented with the information in the CDI/BDI
Marketing Dashboard above, you would determine that the ________ segment has the most
opportunity for increasing Hawaiian Punch sales.
A) households without children
B) households with children 13 to 18 years old
C) households with children 6 years old or under
D) households with children 7 to 12 years old
E) According to the BDI, all segments show positive numbers, so there is opportunity for growth
in every segment.
175) In the CDI/BDI Marketing Dashboard above, which segment consumes the most fruit
drinks?
A) households without children
B) households with children 13 to 18 years old
C) households with children 6 years old or under
D) households with children 7 to 12 years old
E) Because the BDI and CDI show inconsistencies in their measurements, especially in the
segment of children under the age of six, it is impossible to answer the question.
176) In the CDI/BDI Marketing Dashboard above, which segment consumes the least amount of
Hawaiian Punch?
A) households without children
B) households with children 13 to 18 years old
C) households with children 6 years old or under
D) households with children 7 to 12 years old
E) Because the BDI and CDI show inconsistencies in their measurements, especially in the
segment of children under the age of six, it is impossible to answer the question.
177) A marketing strategy that alters a product’s characteristic, such as its quality, performance,
or appearance, to increase its value and sales to customers is referred to as
A) market modification.
B) product modification.
C) product repositioning.
D) market-product synergy.
E) product management.
178) Product modification refers to a marketing strategy that
A) alters a product’s characteristic, such as its quality, performance, or appearance, to increase its
value to customers and to increase sales.
B) manages a product’s life cycle to increase its use among existing customers, create new use
situations, or find new customers.
C) tries to find new customers and convince users who abandoned it to purchase again.
D) drops the lowest producing market segment and replaces it with an entirely new one.
E) combines the lowest producing market segment into others to achieve marketing economies
of scale.
179) Which of the following is a product modification strategy?
A) creating new advertising for a product
B) improving a product’s quality
C) finding a new target market for a product
D) creating a new use situation for a product
E) altering a product’s distribution
180) All of the following are product modification strategies except which?
A) product bundling
B) improving a product’s quality
C) changing a product’s appearance
D) creating a new use situation
E) altering a product’s performance
181) When Proctor & Gamble revamped Pantene shampoo and conditioner with a new vitamin
formula and relaunched the brand with a multimillion-dollar advertising and promotion
campaign, what strategy did it use to manage the product through its life cycle?
A) market modification
B) product redevelopment
C) market-product synergy
D) product positioning
E) product modification
182) Thirty years ago, the Mississippi Gulf Coast was a nice place to vacation with a white sandy
beach, golfing opportunities, resort hotels, and good seafood restaurants. With the addition of
casinos, the Gulf Coast improved its odds of being a tourist destination for more travelers. This is
an example of a ________ strategy.
A) market-product grid
B) diversification
C) product modification
D) market modification
E) product repositioning
183) The McDonald’s Corporation recently announced that it will begin phasing out the use of
eggs from hens housed in cages. The company uses about two billion eggs annually, or a little
more than 4 percent of the eggs produced in the United States. This change in McDonald’s egg-
containing products to appeal to healthy eating habits is a ________ strategy.
A) product modification
B) market-product grid
C) diversification
D) market modification
E) product class extension
184) DiGiorno rising crust pizza has been available in the freezer sections of supermarkets for
quite a while. The product’s recent introduction of a DiGiorno cheese-stuffed crust to its line of
pizzas is an example of
A) a market-product grid.
B) diversification.
C) market modification.
D) product class extension.
E) product modification.
185) The sale of two or more separate products in one package is referred to as
A) a BOGO deal.
B) product modification.
C) product repositioning.
D) product bundling.
E) product differentiation.
186) When Wendy’s wants to increase the value of its Dave’s Hot ‘N Juicy cheeseburger to its
customers, it combines complementary items (French fries and a soft drink) to expedite the
ordering process and provide a complete meal. This product modification approach is called
A) a BOGO deal.
B) product modification.
C) product repositioning.
D) product differentiation.
E) product bundling.
187) If Procter & Gamble (P&G) were to package a Gillette Fusion ProGlide Razor with its
Gillette Fusion Hydragel, P&G would be engaged in
A) a BOGO deal.
B) product modification.
C) product bundling.
D) product repositioning.
E) product differentiation.