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Core: Marketing, 8e (Kerin)
Chapter 10 Managing Successful Products, Services, and Brands
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" it got from the rehydrating beverage.
C) The green color of the original lemon-lime Gatorade was based on Florida's state animal, the
alligator.
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 classified as a(n) ________ brand.
A) domestic
B) regional
C) international
D) global
E) nationwide
3) Gatorade is most likely in which stage of its product life cycle?
A) introduction
B) growth
C) maturity
D) decline
E) fad
4) 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.
5) Gatorade Thirst Quencher was concocted in 1965, but more recently its marketers introduced
Gatorade Flow, a hydrating drink with fewer calories, in 2017. This introduction is an examples
of a
A) brand extension.
B) cobranding.
C) primary demand.
D) product line extension.
E) product class.
6) 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
7) The launch by Gatorade of chews, bars, powders, shakes, and yogurt is evidence of
A) dynamic development.
B) discontinuous development.
C) product development.
D) symbiotic development.
E) simultaneous development.
8) Gatorade Thirst Quencher displays the letter G front and center along with the brand's iconic
bolt. According to the company, "G represents the heart, hustle, and soul of athleticism and will
become a badge of pride for anyone who sweats, no matter where they're active." This is an
example of ________ benefits of its packaging.
A) perceptual
B) functional
C) communications
D) physical
E) tangible
9) 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.
10) The product life cycle refers to
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.
Figure 10-1
11) Figure 10-1 above represents the stages of the product life cycle. What does the section of
the graph labeled A represent?
A) introduction
B) maturity
C) growth
D) stability
E) decline
12) Figure 10-1 above represents the stages of the product life cycle. What does the section of
the graph labeled B represent?
A) introduction
B) maturity
C) growth
D) accelerated development
E) decline
13) Figure 10-1 above represents the stages of the product life cycle. What does the section of
the graph labeled C represent?
A) consolidation
B) maturity
C) growth
D) stabilization
E) decline
14) Figure 10-1 above represents the stages of the product life cycle. What does the section of
the graph labeled D represent?
A) retrenching
B) maturity
C) growth
D) failure
E) decline
15) Figure 10-1 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
16) Figure 10-1 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
17) 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
18) 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
19) 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
20) 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
21) 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
22) 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.
23) 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
24) 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
25) 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 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
26) American Ninja Warrior began airing in 2012 on NBC during the summer season when TV
ratings are normally low and network TV viewing options consisted primarily of reruns. The
marketing goals for the first season on that network included making television viewers aware of
the program's existence and generating enough excitement about the show so that millions of
viewers would watch the athletic competition. At the airing of the first episode that year,
American Ninja Warrior was in what stage of its product life cycle?
A) introduction
B) growth
C) maturity
D) decline
E) development
27) The initial purchase of a product by a consumer is referred to as
A) a product sampling.
B) a first buy.
C) a trial.
D) an assessment.
E) an examination period.
28) 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
29) 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
30) Primary demand is a desire for the ________ rather than for a ________; it is often 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
31) 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.
32) During the introduction stage of the product life cycle, promotional expenditures are made to
stimulate consumer desire for an entire product class rather than for a specific brand. The
consumer demand that is stimulated is referred to as ________ demand.
A) selective
B) primary
C) derived
D) generic
E) secondary
33) 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
34) 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
35) The preference for a specific brand is called ________ demand.
A) selective
B) secondary
C) primary
D) derived
E) explicit
36) As more competitors launch their own products in a product class and the product progresses
along its life cycle, company attention is focused on creating ________ demand, rather than just
demand for the product class.
A) primary
B) selective
C) derived
D) generic
E) secondary
37) 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 in
order to be selected over competitors.
A) primary
B) derived
C) generic
D) selective
E) secondary
38) 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 sales
force.
39) 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.
