86. Sales usually start to decline during the ____ stage of the product life cycle.
a.
beginning of the termination
b.
end of the growth
c.
beginning of the decline
d.
beginning of the growth
e.
end of the maturity
87. When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its
product being in the ____ stage of the product life cycle.
a.
introduction
b.
growth
c.
stabilization
d.
maturity
e.
decline
88. The makers of Tide Detergent recently created “pods” of the product, characterized by a small, square,
plastic-wrapped packet that was easier to use. Since it is packaged in these square pods, it requires no
measuring and can be transported more easily if one is carrying clothes to a laundromat. This change
in packaging is a strategy that can most likely help boost sales in the ____ stage of the product life
cycle.
a.
maturity
b.
growth
c.
introduction
d.
market reduction
e.
decline
89. Which of the following stages of the product life cycle is likely to see dealers offered promotional
assistance from the producer?
a.
Maturity
b.
Growth
c.
Introduction
d.
Market reduction
e.
Decline
90. One of Cole’s responsibilities as a marketing manager for a motorcycle parts manufacturer is to
maintain market share. Cole believes that the company’s products are most likely in the maturity stage
of the product life cycle. In order to maintain market share, Cole should suggest that the company
requires
a.
moderate to large advertising expenditures.
b.
moderate to large distribution expenditures.
c.
moderate production expenditures.
d.
moderate price increases.
e.
moderate price decreases.
91. The producers of Schick razor blades use a marketing strategy that includes large advertising
expenditures and more price flexibility for the various types of blades offered. Based on this example,
razor blades are in the ____ stage of the product life cycle.
a.
decline
b.
evaluation
c.
growth
d.
introduction
e.
maturity
92. Mercedes recognized it needed to revitalize its brand and attract different market segments. These are
indications that Mercedes’ products were primarily in the ____ stage of the product life cycle.
a.
maturity
b.
growth
c.
introduction
d.
market testing
e.
decline
93. Dish Network cut back advertising expenditures to minimum levels and reduced the number of
channel members for its industrial satellite product. These actions indicate that its product is in the
____ stage of its life cycle.
a.
introduction
b.
growth
c.
maturity
d.
early
e.
decline
94. During the decline stage of the product life cycle,
a.
sales rapidly decrease.
b.
market share is maintained.
c.
competition is at a peak.
d.
profits begin to fall.
e.
profits peak and then begin to decline.
95. The stage of the product life cycle when marketers consider eliminating products that are not
contributing to profitability or the overall effectiveness of a product mix is the ____ stage.
a.
maturity
b.
decline
c.
growth
d.
introduction
e.
reorganization
96. When are marketers least likely to change a product’s design, style, or other attributes?
a.
Introduction
b.
Maturity
c.
Decline
d.
Growth
e.
Removal
97. Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing
expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in
the ____ stage of the product life cycle as possibilities for elimination.
a.
not yet developed
b.
growth
c.
introduction
d.
maturity
e.
decline
98. Electronics Pro is a company that manufactures CD drives for laptop computers which are sold to
major computer producers. Electronics Pro realizes that CD drives are most likely in the decline stage
of the product life cycle. What are the two options this company has with regard to its CD drive
product?
a.
Reintroduce the product to new markets or stop sales immediately
b.
Speed up the product’s decline or increase advertising
c.
Attempt to postpone the decline or accept its inevitability
d.
Divesting the brand or reinvesting in the brand
e.
Accept the decline or phase the product out
99. A firm with a product in the decline stage of the product life cycle may decide to gradually reduce
marketing expenditures and realign its marketing mix to one that requires fewer resources. This
approach is called
a.
harvesting.
b.
investing.
c.
realigning.
d.
divesting.
e.
mixing.
100. When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of
its marketing support from these declining products, an approach known as
a.
harvesting.
b.
divesting.
c.
reinvesting.
d.
realigning.
e.
squashing.
101. Which of the following best defines the interest stage in the product adoption process?
a.
The buyer tries to find the product in a retail store.
b.
The buyer considers the benefits and determines whether to try the product.
c.
The buyer tries the product to determine its usefulness.
d.
The buyer seeks information and is receptive to learning about the product.
e.
The buyer uses objective sources to learn about the product.
102. As Jessica enters Audio Jetz car electronics department, she is asked by the salesperson if she has seen
the new plug-in cell phones with coffee-warming app. She answers that she didn’t know that this type
of app for cars was available. Based on this information, she is now in what stage of the product
adoption process for this item?
a.
Awareness
b.
Interest
c.
Evaluation
d.
Trial
e.
Adoption
103. Which of the following is not a stage in the buyer’s product adoption process?
a.
Awareness
b.
Adoption
c.
Trial
d.
Exploration
e.
Interest
104. When Fiat offers to let qualified buyers test drive the new Fiat Doblo Van, the dealer is trying to
stimulate which stage of the product adoption process?
a.
Awareness
b.
Interest
c.
Evaluation
d.
Trial
e.
Adoption
105. When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move
prospective customers into the ____ stage of the product adoption process.
a.
awareness
b.
interest
c.
evaluation
d.
trial
e.
adoption
106. An individual knows that a product exists, but has little information regarding the product and does not
seek additional information. In what stage of the product adoption process is that person?
a.
Trial
b.
Adoption
c.
Interest
d.
Awareness
e.
Evaluation
107. When an individual considers whether a product will meet certain criteria that are critical for meeting
his or her needs, in what stage of the product adoption process is this individual?
a.
Interest
b.
Awareness
c.
Evaluation
d.
Trial
e.
Adoption
108. An individual moves into the adoption stage of the adoption process at the point when he or she
a.
is self-motivated to get information about the product.
b.
begins using that specific product.
c.
seriously considers whether the product will satisfy his or her needs.
d.
experiences the product for the first time.
e.
becomes aware that the product exists.
109. Depending on the length of time it takes them to adopt a new product, people can be divided into five
major adopter categories: early adopters, early majority, late majority, laggards, and
a.
late adopters.
b.
nonadopters.
c.
innovators.
d.
middle adopters.
e.
middle majority.
110. While Alec’s grandfather still prefers using a land line, he just bought his first cell phone. Alec’s
grandfather is most likely oriented toward the past and is a member of the ____ group.
a.
non-adopters
b.
laggards
c.
innovators
d.
late adopters
e.
late majority
111. When Jones’ Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the
short-lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had
already waned, and customers were no longer clamoring for these type of products. The reason this
product failed is
a.
poor timing.
b.
the company’s failure to match product offerings to customer needs.
c.
ineffective branding.
d.
design problems.
e.
overestimation of market size.
112. Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce
Frito-Lay lemonade. The reason this new product failed is likely because of
a.
poor timing.
b.
the failure to match product offerings to customer needs.
c.
technical problems.
d.
overestimation of market size.
e.
ineffective branding.
113. All of the following are reasons why new products fail except
a.
overestimated market size.
b.
followed a systematic plan.
c.
distributed insufficiently.
d.
had poor timing.
e.
promoted poorly.
114. The difference between absolute and relative product failure is
a.
absolute product failure can be fixed by repositioning or improving the product, whereas
relative product failure is permanent.
b.
relative product failure loses money on its investment, whereas absolute product failure
returns a small profit.
c.
relative product failure is the result of poor timing, whereas absolute product failure is the
result of the lack of the ability to provide benefits that satisfy customers’ desires.
d.
absolute product failure is caused by design problems, whereas relative product failure is
caused by poor promotion or distribution.
e.
absolute product failure results in a loss on the investment and is deleted from the product
mix, whereas relative product failure results in a small profit, and improvements or
repositioning can create success later.
Scenario 11.1
Use the following to answer the questions.
Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements
on their razors offering many “firsts” such as the Mach3, the Sensor, and the Fusion. For many years,
women were forced to use razors designed primarily for men, but often marketed to women by
offering them in different colors and with minimal modifications. In 1998 Gillette developed the
Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor
heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter
& Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has
additional blades and other modifications.
115. Refer to Scenario 11.1. Shaving razors fall into which of the following classification of consumer
products?
a.
Convenience products
b.
Shopping products
c.
Substitute products
d.
Specialty products
e.
Accessory equipment
116. Refer to Scenario 11.1. When Gillette developed the Venus razor in 1998, it was considered to be in
the ___ stage of the product life cycle. Today, the Venus razor has several competitors and has
increasing profits, most likely an example of the ___ stage.
a.
Introduction; Growth
b.
Introduction; Maturity
c.
Growth; Maturity
d.
Growth; Decline
e.
Maturity; Growth
117. Refer to Scenario 11.1. Molly has been using a Bic disposable razor for her shaving needs for the last
ten years. She doesn’t really see the need to spend more money on razors, but she sees that it is
becoming more difficult to find the Bic, and so she is considering the Venus Embrace. Molly is
definitely not a(n) ____ in the product adopter categories, and is more likely to be ____.
a.
innovator; an early adopter
b.
early adopter; an innovator
c.
early majority; an early adopter
d.
innovator; an early majority
e.
innovator; a late majority
118. Refer to Scenario 11.1. Tasha is shopping for personal care items at her local Target. She walks by one
aisle and sees a floor-standing display for the new Venus Embrace. She hadn’t thought about buying a
new razor, but the display has caught her attention. Which stage of the product adoption process is
Tasha most likely in at the present time?
a.
awareness
b.
attention
c.
evaluation
d.
trial
e.
adoption
Scenario 11.2
Use the following to answer the questions.
Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It
offers travelers a cheap alternative to driving and flying between large cities, keeping the fares
extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is
an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses
also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities
rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some
fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York,
Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus
lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from
Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound’s
traditional bus line costs $92.00. The benefit of Greyhound’s traditional line is that there are more
departure times and more stops in smaller towns along the way.
119. Refer to Scenario 11.2. What product(s) is Megabus marketing?
a.
Megabus is a service and therefore is not marketing a product.
b.
The ride between cities is a service product and is the only one Megabus is marketing.
c.
The ride between the cities, which is the core product, plus the supplemental features of
Wi-Fi, video screens, and other technology.
d.
The ride between cities, which is a convenience product.
e.
The ride between cities, which is a shopping product.
120. Refer to Scenario 11.2. When Greyhound launched the BoltBus and NeOn bus lines, this is an example
of
a.
a branding extension.
b.
co-branding.
c.
an extension in the width of the product mix.
d.
an extension in the depth of the product mix.
e.
family branding.
121. Refer to Scenario 11.2. Casey is searching the website of Megabus.com for the schedule and fares of a
trip between Buffalo, NY and New York City. Casey is most likely in which of the following stages of
the product adoption process?
a.
adoption
b.
trial
c.
evaluation
d.
interest
e.
awareness
122. .Refer to Scenario 11.2. The closest competitor for Megabus is Greyhound Lines. Greyhound Lines
has been n business for many years, offering basic transportation services until the introduction of their
new BoldBus and NeOn. Even though both companies are in the bus transportation business,
Greyhound Lines is most likely in the ____ stage of the product life cycle, while Megabus is in the
_____ stage.
a.
Maturity; Introduction
b.
Maturity; Growth
c.
Growth; Maturity
d.
Growth; Decline
e.
Decline; Growth
TRUE/FALSE
123. A product need not be a physical product.
124. A service is intangible and is the result of the application of human or mechanical efforts to people or
objects.
125. Supporting services, such as installation and guarantees, are part of a product.
126. The core product element of the total product can include installation, delivery, training, and financing.
127. The atmosphere and décor of a retail store, the variety and depth of product choices, the customer
support, even the sounds and smells all contribute to the experiential element of its total product.
128. The buyer’s intent can determine whether an item is classified as a consumer or a business product.
129. Use of the product is the most important means of distinguishing consumer products from business
products.
130. The two major product categories are business and institutional.
131. A product’s classification can influence its price, distribution, and promotion.
132. Bread is usually a convenience product.
133. Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is
unattainable.
134. Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.
135. Per-unit gross margins on convenience products are relatively high.
136. The gross margin percentage on convenience goods is usually fairly high because they are low-priced
items.
137. Buyers want to exert only minimal effort to obtain shopping products.
138. Service, repair work, and accessories may be important considerations in a consumer’s decision to
purchase a particular shopping product.
139. Obtaining a specialty product involves a considerable amount of comparison activity.
140. Accessory equipment becomes a part of the finished product.
141. Component parts usually need to be processed significantly before they are used in production.
142. Process materials are used directly in the production of products.
143. “Business Services” is not a category or type of business product.
144. A product line is a particular version of a product that can be designated as a distinct offering on the
organization’s list of products.
145. A product line includes a group of closely related product items that are considered to be a unit
because of marketing, technical, or end-use considerations.
146. Product mix refers to a related group of products in the product line.
147. The depth of a product mix is measured by the average number of product types in a product line.
148. The width of a product mix refers to the number of generic products offered by a company.
149. A product mix is the composite or total group of products that an organization makes available to
customers.
150. Procter & Gamble has a wider product mix than does Baskin Robbins.
151. The original marketing strategy should not be altered in any way as a product travels through the
stages of the product life cycle because consumers can become confused.
152. Many products never get beyond the introduction stage.
153. Communicating product benefits to consumers is very important in the introduction stage.
154. New products seldom generate enough sales to bring immediate profits.
155. Price cuts are typical in a product’s growth stage.
156. During the growth stage, promotion costs rise as a percentage of total sales.
157. Intensive competition causes price increases during the growth stage of the product life cycle.
158. Distribution outlets become more difficult to secure during the growth stage of a product’s life cycle
because of aggressive competition.
159. Intense price wars are likely to occur during the growth stage of the product life cycle as competitors
attempt to gain market share.
160. Profits decline in the maturity stage, largely because of increased competition.
161. A seller’s profits peak in the maturity stage of a product’s life cycle.
162. Sales peak in a product’s maturity stage.
163. Many products are in the maturity stage of the product life cycle.
164. Changing the product’s quality is a distinct alternative in the maturity stage of the product life cycle.
165. The marketing mix should be left alone during the maturity stage of the product life cycle; tampering
with it may bring an early death to the product.
166. During a product’s maturity stage, all sales promotion efforts are focused on consumers.
167. Strategies relating to price become more mixed during a product’s maturity stage.
168. A business can justify keeping a product as long as it contributes to profits or enhances the
effectiveness of a product mix.
169. Sometimes new marketing channels open up in the decline stage.
170. Promotion decreases in importance during a product’s decline stage.
171. Advertising used in the decline stage may prolong the life of the product.
172. Sellers can sometimes prolong a product’s life cycle.
173. When an organization introduces a new product, people do not all begin the adoption process at the
same time, nor do they move through the process at the same speed.
174. Trial is the first stage of the product adoption process.
175. A buyer becomes aware of the product during the evaluation phase of the product adoption process.
176. In the awareness stage of the product adoption process, the buyer seeks information about the product.
177. “The people to check with” are the early adopters.
178. The first adopters of a product are the innovators.
179. Early adopters are the first group of consumers to adopt a new product.
180. Laggards are the last to adopt a new product and usually distrust new products.
181. One of the most common reasons new products fail is because of a company’s failure to match product
offerings to customer needs.
182. Being a product pioneer guarantees a product’s success.
183. The success of launching a new product is based primarily on luck.
184. When a successful brand such as Frito-Lay develops a new product, it will always succeed.
185. Failure of a new product is always absolute.
186. If a company repositions a relative product failure, that product might become a successful member of
the product line.
187. Following a consistent customer-focused plan does not help new products become successful.