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188) A strategy for managing a product's life cycle that attempts to find new customers, increase
a product's use among existing customers, or create new use situations is referred to as
A) market modification.
B) product modification.
C) product repositioning.
D) product extension.
E) diversification.
189) Market 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 by finding new customers, increasing a product's use among
existing customers, or creating new use situations.
C) tries to find new customers and convince users who abandoned the product to purchase again.
D) drops the lowest producing market segment and replaces it with an entirely new one.
E) combines the two lowest producing market segments to achieve marketing economies of
scale.
190) All of the following are market modification strategies except which?
A) creating a new use situation
B) finding new customers
C) changing a product's appearance
D) targeting new market segments
E) increasing a product's use among existing customers
191) When Coca-Cola promoted Coke as a morning beverage for those consumers who don't
drink coffee, it used a ________ strategy.
A) product modification
B) brand modification
C) market-product extension
D) diversification
E) market modification
192) Known for its popular line of construction toys for boys, LEGO Group introduced a product
line for young girls called LEGO Friends. This is an example of which market modification
strategy?
A) finding new users
B) creating new use situations
C) increasing a product's use by existing customers
D) modifying the product
E) reacting to competitors' positions
193) Major American car manufacturers are offering buying incentives to newly graduated
college students who traditionally have little or no credit. Car manufacturers are using which of
the following market modification strategies?
A) finding new users
B) creating new use situations
C) increasing a product's use by existing customers
D) modifying the product
E) reacting to competitors' positions
194) Starbucks sometimes offers a promotion known as the "treat receipt." Patrons purchase a
drink of their choice in the morning and then will receive a receipt to turn in after 2:00 p.m. that
same day. With the receipt the customer can choose from any grande iced beverage for just
$2.50. Which is the most likely market modification strategy for Starbucks here?
A) finding new users
B) creating new use situations
C) increasing a product's use by existing customers
D) modifying the product
E) reacting to competitors' positions
195) Mott's applesauce promotes itself as a low-fat alternative to cooking oil for baked goods.
Mott's is
A) finding new users through a product modification strategy.
B) increasing use by existing customers through a product modification strategy.
C) modifying the product characteristics.
D) creating new use situations through a market modification strategy.
E) demarketing the product.
196) Changing the place a product occupies in a consumer's mind relative to competitive
products is referred to as
A) market modification.
B) product modification.
C) product repositioning.
D) product positioning.
E) perceptual mapping.
197) All of the following are factors triggering the need for product repositioning except which?
A) creating a new use situation
B) reaching a new market
C) catching a rising trend
D) changing the value offered
E) reacting to a competitor's position
198) Sealy, the self-proclaimed largest manufacturer of mattresses in the United States, recently
set out to redefine its place in the bedrooms of America. No longer was it going to be known as
simply a mattress company. Now the name Sealy was going to be known as the world's leading
"sleep wellness provider." This is an example of
A) reverse marketing.
B) demarketing.
C) repositioning.
D) resegmenting.
E) positioning.
199) Kellogg's Frosted Flakes, a ready-to-eat breakfast cereal, has been perceived as a cereal for
children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements
depicted children enjoying the product with Tony. Recently, in response to declining sales of
Frosted Flakes, the cereal maker has adopted a new series of advertisements that show adults
admitting that they enjoy Frosted Flakes, too. Kellogg's is attempting to
A) develop a perceptual map for Frosted Flakes.
B) reposition Frosted Flakes.
C) complete the Frosted Flakes product life cycle.
D) introduce a new product line extension for Frosted Flakes.
E) harvest Frosted Flakes.
200) New Balance, Inc., successfully repositioned its athletic shoes to focus on fit, durability,
and comfort rather than going head-on against Nike and Adidas on professional sports and
fashion, respectively. This product repositioning strategy was designed to
A) react to a competitor's position.
B) reach a new target market segment.
C) catch a rising trend.
D) change the value offered to its customers.
E) accommodate its target audience preference for comfortable sneakers.
201) Johnson & Johnson effectively repositioned St. Joseph Aspirin from a product for infants to
an adult low-strength aspirin to reduce the risk of heart attacks or strokes. This is an example of a
product repositioning for
A) reacting to a competitor's position.
B) reaching a new market.
C) catching a rising trend.
D) changing the value offered.
E) product modification.
202) Procter & Gamble repositioned its Old Spice antiperspirant brand from a deodorant your
grandfather might use to a strong, hip antiperspirant through commercials that showed the target
market of 18- to 30-year-old men advocating its use. P&G used this product repositioning
strategy with its Old Spice brand antiperspirant to
A) react to a competitor's position.
B) catch a rising trend.
C) change the value offered.
D) diversify its product portfolio.
E) reach a new market.
203) An aging baby boomer population has led to increased interest in developing and marketing
products to satisfy the needs of this large market. As a result, moisturizing lotions and creams
such as Oil of Olay are now repositioned as "age-defying" products. This is an example of which
product repositioning action?
A) reaching a new market
B) reacting to a competitor's position
C) trading up
D) changing the value offered
E) product modification
204) Pretzels were first introduced as a salty snack. Later, the product was repositioned as a low-
fat snack in order to
A) respond to a competitor's head-to-head positioning strategy.
B) reach a new market.
C) catch a rising trend.
D) change the value offered.
E) change its target audience.
205) Trading up refers to
A) adding product features but reducing the price.
B) changing the distribution channel members to higher-service-quality retailers.
C) adding value to the product (or line) through additional features or higher-quality materials.
D) reallocating marketing resources from a poor-performing target market to one that
demonstrates greater potential for future growth.
E) offering consumers a discount when they purchase a more expensive version of the product.
206) Adding value to the product (or line) through additional features or higher-quality materials
is referred to as
A) trading up.
B) trading down.
C) product enhancement.
D) product extension.
E) quality infusement.
207) Ralston Purina advertises with the following slogan: "Your Pet, Our Passion—Premium Pet
Food by Purina." The firm now offers high-quality, super-premium cat and dog food based on
formulations that promote "life-stage nutrition." This line is an example of
A) rebranding.
B) trading up.
C) trading down.
D) trend setting.
E) product branding.
208) Reducing the number of features, qualities, or price when repositioning a product is referred
to as
A) product paring.
B) down trading.
C) product deflation.
D) trading down.
E) product simplification.
209) Trading down refers to ________ when repositioning a product.
A) reducing the number of features, qualities, or price
B) reducing the amount of product carried as inventory
C) reducing the number of product items in a product line
D) redirecting marketing resources from a "cash cow" target market to one that is not performing
as well in the hopes of increasing sales and profits
E) encouraging consumers through the use of coupons and deals to purchase a firm's lower-
priced products
210) Reducing the package content without changing package size while maintaining or
increasing the package price is referred to as
A) outsourcing.
B) trading up.
C) shrinkage.
D) upsizing.
E) downsizing.
211) Downsizing reduces the
A) quality of materials without changing the price.
B) product's price along with the quality of the materials.
C) package content without changing its size while maintaining or increasing the package price.
D) number of product features.
E) number of product items in a product line.
212) Georgia-Pacific reduced the content of its Brawny paper towel six-roll pack by 20 percent
without lowering the price. Georgia-Pacific used a(n) ________ strategy.
A) outsourcing
B) trading up
C) shrinkage
D) downsizing
E) product modification
213) Consumer advocates believe the practice of downsizing by consumer products firms has
resulted in
A) lower product prices for consumers because of lower labor, raw material, and packaging
costs.
B) a greener environment due to the reduction in the amount of packaging, thereby reducing the
amount of waste disposed in landfills.
C) fewer product choices for consumers that led to rising prices.
D) keeping prices from rising in response to the psychological barriers consumers have
developed for downsized products.
E) a subtle, deceptive, yet legal practice of disguising a price increase.
214) Which of the following barriers does downsizing try to combat when consumers could
either adopt a new product or repurchase an existing one?
A) risk barriers
B) usage barriers
C) feature bloat barriers
D) psychological barriers
E) value barriers
215) An organization's use of a name, phrase, design, symbol, or combination of these to identify
its products and distinguish them from those of competitors is referred to as
A) a label.
B) branding.
C) a trademark.
D) a brand name.
E) a trade name.
216) Branding refers to
A) the licensing of a name, phrase, design, symbol, or combination of these for a period of 17
years, at which time a firm may renew its intellectual property rights to them.
B) the value added to the product from the additional features given to a product beyond its
functional attributes.
C) the identification of an organization's products based upon individual SKUs.
D) an organization's use of a name, phrase, design, symbol, or combination of these to identify
its products and distinguish them from those of competitors.
E) the establishment of a commercial, legal name under which a company does business.
217) Any word, device (design, sound, shape, or color), or combination of these used to
distinguish a seller's products or services is referred to as a
218) A brand name refers to
A) a product's identifier that only can be spoken.
B) a product's identifier that consists of only the symbol or design that cannot be spoken.
C) any word, device (design, sound, shape or color), or combination of these used to distinguish
a seller's products or services.
D) the commercial, legal name under which a company does business.
E) the identification of an organization's products based upon individual SKUs.
219) The stylized blue and white waves that appear in an oval shape on every package of Ocean
220) The swoosh that appears on every Nike product is an example of a
221) A brand name that cannot be spoken is referred to as a
222) Twitter uses a stylized blue or white bird with no text as its
223) The white apple used by Apple in advertising and on its products is an example of a
224) A trade name refers to
A) any word, device (design, sound, shape or color), or combination of these used to distinguish
a seller's products or services.
B) the part of a brand name that can be spoken.
C) the legally registered brand name of a firm's product or service that give it exclusive use,
thereby preventing competitors from using it.
D) the commercial, legal name under which a company does business.
E) a logotype plus the brand name.
225) The commercial, legal name under which a company does business is referred to as a
226) The Coca-Cola Co. is the ________ of that firm.
A) logo
B) patent
C) trade name
D) brand identity
E) trademark
227) The main difference between a trade name and a trademark is
A) trade names are licensed while trademarks are not.
B) trade names are commercial legal names under which a company does business, while a
trademark identifies that a firm has legally registered its brand name.
C) a trade name is only the word that is spoken to distinguish a seller's products or services, but a
trademark consists of both the spoken and unspoken word or mark that distinguishes a seller's
products or services.
D) a trade name can cover an array of company product items while a trademark can only apply
to a single SKU for a product item.
E) brand names are protected by law, but trademarks are not.
