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114) A style is best defined as a ________.
A) currently popular trend in retail goods
B) popular consumer taste at a given time
C) temporary period of unusually high sales
D) short-term component of the marketing mix
E) basic and distinctive mode of expression
115) The more formal "business attire" look of corporate dress of the 1980s and 1990s gave
way to the "business casual" look of the 2000s and 2010s. This is an example of a ________.
A) style
B) fashion
C) fad
D) subculture
E) norm
116) Apple's iPod has been called "one of the greatest consumer electronics hits of all time."
iPods have been sold in huge numbers, and Apple captures a large share of the music player
market. This success has attracted many large, resourceful competitors. The iPod is in the
________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
117) Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with
customers, is an example of a ________.
A) style
B) fashion
C) fad
D) norm
E) subculture
118) The PLC concept can be applied by marketers as a useful framework for describing how
________.
A) competitors' moves are predicted
B) marketing strategies are developed
C) products and markets work
D) concept testing is conducted
E) product ideas are developed
119) According to the PLC, the ________ stage is reached when sales plunge to zero, or when
they drop to a low level where they continue for many years.
A) laggard
B) decline
C) maturity
D) growth
E) incubation
120) Which of the following stages of the PLC is characterized with high promotional
expenditures that result from an effort to create consumer awareness?
A) growth
B) product development
C) maturity
D) introduction
E) decline
121) A(n) ________ chooses a strategy consistent with the intended product positioning. To
gain market leadership requires correct decisions from the beginning.
A) brand evangelist
B) market pioneer
C) early adopter
D) laggard
E) harvester
122) Which of the following stages of the PLC is characterized with the same level or slightly
higher level of promotional expenditures in an attempt to respond to increasing competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption
123) Kellogg's begins to sell its cereals in new markets after conducting extensive marketing
research. After the cereal begins to appear in these new markets, the company increases its
promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage
of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption
124) Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a
character from an animated television series originally broadcast in the '50s and '60s. The
company's version of Sandy the Flying Squirrel, a character from the show targeted to baby
boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new
launch strategy for Bubble the Moose consistent with the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad
125) Which stage in the PLC normally lasts longest and poses strong challenges to marketing
managers?
A) growth
B) decline
C) maturity
D) introduction
E) adoption
126) At which stage in the PLC do profits increase as promotion costs are spread over a large
volume, and as the firm enters new market segments?
A) maturity
B) introduction
C) decline
D) growth
E) harvest
127) Which of the following would lead to greater competition in the maturity stage of the
PLC?
A) overcapacity
B) market pioneers
C) poor management
D) inadequate promotion
E) diminishing budgets
128) Most products in the marketplace are in the ________ stage of the product life cycle.
A) growth
B) decline
C) maturity
D) introduction
E) development
129) Over the past few years, Binney and Smith's Crayola crayons has expanded to more than
80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
A) introduction
B) laggard
C) maturity
D) decline
E) incubation
130) When a product is in the maturity stage, the company should most likely consider
________.
A) harvesting the product or market
B) modifying the product, market, or marketing mix
C) divesting the product line
D) liquidating the firm's assets
E) dropping the product from its market offerings
131) When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and
Awesome Orange to revitalize consumer buying, the company was modifying the ________.
A) market
B) pricing strategy
C) distribution
D) product
E) competition
132) P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover
Girl cosmetics. In these examples, management decided to ________ the products.
A) modify
B) maintain
C) drop
D) harvest
E) franchise
133) Due to dropping sales, a company that manufactures soaps begins to sell them to
restaurants and hotels to extend their product's life. The soap manufacturer is in the ________
stage of PLC.
A) introduction
B) growth
C) maturity
D) decline
E) development
134) When Kraft focused on cost cutting with its older, established brands, leaving them to
wither without much investment or modification, Kraft decided to ________ the older products.
A) extend
B) modify
C) drop
D) harvest
E) analyze
Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum
cleaner. But the concept was practical and the technology used in the vacuum was the same as
that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago
suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed
receptive and offered helpful pieces of advice, such as how much they would pay for the
vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes
along the edges. After being charged in the sunlight, the vacuum could run for 7 hours,
covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs,
and so on, the sensory nodes allowed the vacuum to move around the objects in various
directions. This is the same type of technology used in the manufacture of children's racecars
and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly
consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who
lead busy lives. The price would be above average but would likely be reduced after Evelyn
recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a
multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several
other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even
if they don't buy it right away."
135) Evelyn's vacuum is at the ________ stage of the product life cycle.
A) product development
B) introduction
C) growth
D) decline
E) maturity
136) Using the PLC concept to develop marketing strategy can be problematic because strategy
is both a cause and a result of the product's life cycle.
137) Most successful products are immediately accepted, and quickly move to the growth stage
of the PLC.
138) Profits drop during the growth stage of the PLC because per customer promotion costs are
high.
139) Although products that remain in the maturity stage of the PLC seem unchanged, the most
successful ones actually evolve to meet changing consumer needs.
140) When sales of a product drop during the decline stage of the PLC, a company typically
modifies the marketing mix, the product, or the market.
141) Sales of products decline because of technological advances, shifts in consumer tastes, and
increased competition.
142) Harvesting the product involves reducing various costs such as maintenance, R&D, and
advertising to increase profits.
143) The distribution strategy during the decline stage of PLC involves building more intensive
distribution networks.
144) Explain how the PLC applies differently to a product class than to a product form.
145) Why are ad expenditures high for products in the introduction stage of the PLC?
146) Why do ad expenditures remain high in the growth stage of the PLC?
147) Marketers can prolong the lives of many products in the maturity or decline stages of the
PLC, sometimes even moving these products back into the growth stage. How is this
undertaken?
148) Each product will have a life cycle, although its exact shape and length is not known in
advance. Briefly explain each phase of the product life cycle.
149) Explain why the PLC can be applied to more than just brands.
150) Manufacturers must comply with specific laws regarding ________.
A) profit margins
B) product quality and safety
C) product harvesting
D) distribution channel length
E) product life cycles
151) Because of ________, a company cannot make its product illegally similar to a
competitor's already established product.
A) anti-monopoly laws
B) patent laws
C) the Consumer Product Safety Act
D) product warranties
E) product liability
152) CellTones, a new company selling several types of cellular phones, has closely modeled
its products after successful products that are already in the marketplace. As it prepares to enter
the market with its new products and services, which of the following should concern
CellTones the most?
A) legal obligations to suppliers and dealers
B) patent laws
C) distribution requirements
D) product liability suits
E) limited warranties
153) Which of the following best describes the role of a product steward?
A) to protect employees and laborers from harm
B) to evaluate new product ideas against a set of general criteria
C) to develop a new product concept into a physical product
D) to protect consumers from harm and the company from liability
E) to decide whether to maintain, harvest, or drop the product in the decline stage of the PLC
154) Which of the following is a consequence of standardizing an international product?
A) image consistency
B) regional design flexibility
C) decreased product demand
D) increased manufacturing costs
E) higher marketing costs
155) The federal government may prevent a company from adding products through
acquisitions if acquisition threatens to lessen competition.
156) As long as a product is not identical to a competitor's product offering, a company can
introduce, market and sell it without penalty.
157) The international growth of many professional and business services such as accounting,
consulting, and advertising led to the globalization of the client companies they served.
158) Why has the cost of product liability insurance risen so dramatically?
159) Describe three public policy issues or regulations that marketers should carefully consider
as they make decisions about adding or dropping products.
