Solomon Rprc4ce Mytest Ch08-TIF

Marketing: Real People, Real Choices
1) Which of the following is an accurate statement about product management?

a. It is also known as quality management.
b. It is rarely team-based.
c. It is a continual process.
d. It includes responsibility for the marketing mix tools of product and promotion, but not
of price and place.
e. It involves more strategic planning than tactical planning.
Answer: c
Diff: 2
Type: MC
Page Reference: 266
Topic: Product Planning
Skill: Concept
Objective: 8-1 Product Planning: Use Product objectives to decide on product strategies
2) When marketers develop ________ strategies, they make decisions about product
benefits, features, styling, branding, labeling, and packaging.
a. communication
b. product
c. equity
d. total quality management (TQM)
e. Six Sigma
Answer: b
Diff: 2
Type: MC
Page Reference: 266
Skill: Concept
3) Which of the following is NOT necessary for a product-related objective to be
effective?
a. It should focus on short-term implications.
b. It should be measurable.
c. It should be feasible.
d. It should indicate a specific time frame.
e. It should be clear.
Answer: a
Diff: 2
Type: MC
Page Reference: 266
Skill: Concept
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Copyright 2013 Pearson Canada Inc.
4) A ________ is a firm's total product offering designed to satisfy a group of target
customers.
a. brand
b. product line
c. product mix
d. positioning strategy
e. marketing mix
Answer: b
Diff: 1
Type: MC
Page Reference: 268
Topic: Objectives and strategies for multiple products
Skill: Concept
5) A firm's ________ is determined by the number of separate items within the same
category.
a. brand equity
b. product mix width
c. product line length
d. product quality
e. product mix
Answer: c
Diff: 1
Type: MC
Page Reference: 269
Skill: Concept
6) Procter & Gamble makes a variety of different cleaners, detergents, and polishes to
appeal to a variety of target markets and boost sales potential. Procter & Gamble uses
a(n)________.
a. full line strategy
b. undifferentiated strategy
c. limited-line strategy
d. contracting strategy
e. marketing mix orientation
Answer: a
Diff: 2
Type: MC
2
Page Reference: 269

Skill: Application
7) A firm that plans to use a(n)________ will add higher priced, higher quality items to
its product line.
a. upward line stretch
b. limited-line strategy
c. undifferentiated strategy
d. marketing mix contraction
e. cannibalization strategy
Answer: a
Diff: 2
Type: MC
Page Reference: 269
Skill: Concept
8) Which of the following is NOT an option for extending a product line?
a. cannibalization
b. downward line stretch
c. upward line stretch
d. two-way stretch
e. filling-out strategy
Answer: a
Diff: 2
Type: MC
Page Reference: 269
Skill: Concept
9) Whenever a product line or a product family is extended, there is a risk of ________,
which occurs when sales of an existing brand decline as the firm's current customers
switch to the new product.
a. product line contraction
b. disintermediation
c. cannibalization
d. brand inequity
e. a downward line stretch
Answer: c
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Diff: 1
Type: MC
Page Reference: 269
Skill: Concept
10) An alternative to a two-way stretch is ________, adding more items within the
present range of the line.
a. cobranding
b. family branding
c. a mixing strategy
d. a filling-out strategy
e. a contracting strategy
Answer: d
Diff: 2
Type: MC
Page Reference: 269
Skill: Concept
11) When Kraft Canada introduces 100 calorie Thinsations versions of its popular Oreo
and Chips Ahoy,it followed___________ to expand its product line?
a. a product mix strategy
b. a filling-out strategy
c. societal marketing
d. internal marketing
e. line mixing
Answer: b
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
12) Heinz stopped marketing its "Bite Me" brand of frozen pizza snacks due to
disappointing sales. This is an example of a ________.
a. filling-out strategy
c. product line contraction
d. value stretch
e. cannibalization strategy
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Answer: c
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
13) A firm's ________ is its entire range of products.
a. product line
b. product mix
c. marketing mix
d. promotional mix
e. positioning strategy
Answer: b
Diff: 1
Type: MC
Page Reference: 269
Topic: Product Mix Strategies
Skill: Concept
14) When a company begins marketing a new product line in addition to its existing
product lines, it has done which of the following?
a. expanded the length of the product line
b. expanded the width of the product mix
c. expanded the depth of the product mix
d. expanded the width of the marketing mix
e. used a filling-out strategy
Answer: b
Diff: 2
Type: MC
Page Reference: 270
Skill: Concept
15) Which of the following is the overall ability of a product to satisfy customers'
expectations?
a. value proposition
b. brand equity
c. product precision
d. brand meaning
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e. product quality
Answer: e
Diff: 1
Type: MC
Page Reference: 271
Topic: Quality as a Product Objective
Skill: Concept
16) Which of the following is a management philosophy that focuses on satisfying
customers through empowering employees to be an active part of continuous quality
improvement?
a. cannibalization
b. total quality management (TQM)
c. Six Sigma
d. ISO 8000
e. ISO 14000
Answer: b
Diff: 2
Type: MC
Page Reference: 271
Skill: Concept
17) ________ involves a five-step process called DMAIC (define, measure, analyze,
improve, and control) designed to improve quality.
a. Total quality management (TQM)
b. Cannibalization
c. ISO 8000
d. ISO 14000
e. Six Sigma
Answer: e
Diff: 2
Type: MC
Page Reference: 271
Skill: Concept
18) It is most accurate to say that total quality management firms believe that it is the
responsibility of ________ employees to serve the needs of customers.
a. marketing
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b. research and development

c. human resource
d. management
e. all
Answer: e
Diff: 3
Type: MC
Page Reference: 271
Skill: Concept
19) Which of the following was developed as a broad set of guidelines that establishes
voluntary standards for quality management?
a. Six Sigma
b. ISO 8000
c. ISO 9000
d. TQM
e. cannibalization
Answer: c
Diff: 2
Type: MC
Page Reference: 271
Skill: Concept
20) Which of the following helps an organization focus on minimizing any harmful
effects it may have on the environment?
a. Six Sigma
b. ISO 8000
c. ISO 14000
d. total quality management (TQM)
e. cannibalization
Answer: c
Diff: 2
Type: MC
Page Reference: 271
Skill: Concept
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21) An American company wanting to be competitive in the environmentally sensitive

European market would be most likely to seek which type of certification?
a. ISO 14000
b. DMAIC
c. total quality management (TQM)
d. Six Sigma
e. PLC
Answer: a
Diff: 2
Type: MC
Page Reference: 271
Skill: Application
22) Which of the following is designed to help a firm almost entirely reduce product and
service defects?
a. ISO 14000
b. ISO 18000
c. Six Sigma
d. TQM
e. PLC
Answer: c
Diff: 2
Type: MC
Page Reference: 271
Skill: Concept
23) The product life cycle concept can be applied by marketers as a useful framework for
describing how ________.
a. to forecast product performance
b. to develop marketing strategies
c. a market responds to a product over time
d. product ideas are developed
e. a brand gains a dominant position in the market
Answer: c
Diff: 2
Type: MC
Page Reference: 272
Topic: Product Life Cycle
Skill: Concept
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Objective: 8-2 Marketing through the Product Life Cycle

24) All of the following are stages in the product life cycle EXCEPT which one?
a. introduction
b. adoption
c. growth
d. maturity
e. decline
Answer: b
Diff: 2
Type: MC
Page Reference: 273
Skill: Concept
25) The marketing goal for a product in the growth stage of its product life cycle is to
________.
a. stabilize profit margins
b. encourage brand loyalty
c. reach peak sales levels
d. compete on the basis of price
e. maintain market share
Answer: b
Diff: 2
Type: MC
Page Reference: 275
Skill: Concept
26) The sales peak typically occurs during which stage of the product life cycle?
a. introduction
b. youth
c. development
d. maturity
e. leveling
Answer: d
Diff: 2
Type: MC
Page Reference: 275
Skill: Concept
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27) Which stage in the product life cycle is characterized by rapidly increasing sales and
increasing profits?
a. introduction
b. youth
c. growth
d. maturity
e. development
Answer: c
Diff: 1
Type: MC
Page Reference: 275
Skill: Concept
28) The final stage in the product life cycle is ________.
a. maturity
b. decline
c. phasing out
d. harvesting
e. divestment
Answer: b
Diff: 1
Type: MC
Page Reference: 275
Skill: Concept
29) In which stage of the product life cycle will promotional expenditures be especially
high in an attempt to create consumer awareness?
a. product development
b. introduction
c. decline
d. maturity
e. youth
Answer: b
Diff: 2
Type: MC
Page Reference: 273
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Skill: Concept
30) Which stage in the product life cycle normally lasts longest?
a. introduction
b. development
c. growth
d. maturity
e. decline
Answer: d
Diff: 1
Type: MC
Page Reference: 275
Skill: Concept
31) In which stage of the product life cycle would a firm most likely use price reductions
and reminder advertising to encourage customers to replace worn-out items?
a. growth
b. youth
c. maturity
d. adoption
e. leveling
Answer: c
Diff: 2
Type: MC
Page Reference: 275
Skill: Concept
32) A manufacturer of a product in the decline stage of its product life cycle would be
LEAST likely to do which of the following?
a. continue producing the product for loyal users
b. reduce the advertising budget for the product
c. phase out production of the product
d. advertise heavily without changing the product or its target market
e. withdraw most marketing support for the product and rely on e-commerce
Answer: d
Diff: 3
Type: MC
Page Reference: 275
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Skill: Concept
33) A manufacturer with a product in the decline stage of the product life cycle would
most likely decide to ________ if there is reason to believe that there will be a residual
demand for the product.
a. maintain the product without change
b. let existing stocks of the product run out
c. drop the product immediately
d. search for replacements
e. increase sales promotion efforts
Answer: a
Diff: 3
Type: MC
Page Reference: 275
Skill: Concept
34) ________ is the product life cycle period when sales fall off and profits drop.
a. Maturity
b. Decline
c. Development
d. Divestment
e. Leveling
Answer: b
Diff: 1
Type: MC
Page Reference: 275
Skill: Concept
35) A(n)________ is a name, term, symbol, or other unique element of a product that
identifies one firm's products and sets it apart from the competition.
a. patent
b. brand
c. license
d. position
e. value proposition
Answer: b
Diff: 1
12
Type: MC
Page Reference: 276
Topic: Whats in a name?
Skill: Concept
Objective: 8-3 Create product Identity:Branding Decisions
36) The triangular red Nabisco logo and the Jolly Green Giant are both examples of
________.
a. logos
b. brand marks
c. trade characters
d. brands
e. cobrands
Answer: d
Diff: 2
Type: MC
Page Reference: 276
Skill: Concept
37) According to your text, which of the following is probably the most used and most
recognized form of branding?
a. brand name
b. trade character
c. patent
d. logo
e. copyright
Answer: a
Diff: 2
Type: MC
Page Reference: 276
Skill: Concept
38) A good brand name should do all of the following EXCEPT fit ________.
a. the target market
b. the competition
c. the customer's culture
d. the product's benefits
e. legal requirements
Answer: b
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Diff: 2
Type: MC
Page Reference: 277
Skill: Concept
39) Which of the following is NOT a desirable quality for a brand name?
a. It should suggest something about the product's benefits.
b. It should be easy to pronounce and remember.
c. It should almost always be a long word to get attention.
d. It needs to fit legal requirements.
e. It should make sense in the customer's culture.
Answer: c
Diff: 2
Type: MC
Page Reference: 277
Skill: Concept
40) A ________ is the legal term for a brand name, brand mark, or trade character.
a. trademark
b. patent
c. copyright
d. logo
e. corporate mark
Answer: a
Diff: 1
Type: MC
Page Reference: 277
Skill: Concept
41) Which of the following statements about brand equity is NOT true?
a. Brand equity means a brand has customer loyalty.
b. Brand equity refers to the brand's value to an organization.
c. The highest level of brand equity involves establishing product benefits.
d. Brand equity gives a firm the power to capture and hold onto a larger share of the
market and to sell at prices with higher profit margins.
e. Brand equity can provide a competitive advantage.
Answer: c
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Diff: 3
Type: MC
Page Reference: 277
Topic: Why Brands matter?
Skill: Concept
42) The concept of ________ encompasses the beliefs and associations that a
consumer has about a brand.
a. brand meaning
b. brand storytelling
c. brand equity
d. product quality
e. total quality
Answer: a
Diff: 1
Type: MC
Page Reference: 278
Skill: Concept
43) Which of the following most accurately describes a brand extension?
a. a new product that combines the power of two or more brand names
b. a new product sold under an established brand name
c. a new product added to the lower end of a product mix
d. a new product added to the higher end of a product mix
e. a new product line added to a product mix
Answer: b
Diff: 1
Type: MC
Page Reference: 279
Skill: Concept
44) A family brand strategy is also called a(n)________ strategy.
a. cobranding
b. licensing
c. umbrella brand
d. store brand
e. national brand
Answer: c
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Diff: 2
Type: MC
Page Reference: 280
Topic: Branding Strategies
Skill: Concept
45) Procter & Gamble makes Tide, Cheer, Ivory Snow, and Bold detergents as well as
PertPlus, Rejoice, and Vidal Sassoon shampoos. Through its use of a separate and unique
brand name for each of these products, Procter & Gamble is using a(n)________ strategy.
a. umbrella brand
b. family brand
c. individual brand
d. private-label brand
e. cobranding
Answer: c
Diff: 2
Type: MC
Page Reference: 280
Skill: Application
46) Oreos and Coke are both examples of ________.
a. store brands
b. cobrands
c. private-label brands
d. national brands
e. ingredient brands
Answer: d
Diff: 2
Type: MC
Page Reference: 281
Skill: Application
47) Toronto-based Loblaw supermarket chain developed President's Choice brand
products to sell exclusively in its stores. President's Choice is an example of a ________.
a. manufacturer brand
b. national brand
c. cobrand
d. generic brand
e. private-label brand
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Answer: e
Diff: 2
Type: MC
Page Reference: 281
Skill: Application
48) Another name for a store brand is a ________.
a. national brand
b. private-label brand
c. generic brand
d. manufacturer brand
e. licensed brand
Answer: b
Diff: 2
Type: MC
Page Reference: 281
Skill: Concept
49) What is the most logical explanation for why retailers carry private-label brands?
a. to eliminate the need for competitive advantages
b. to encourage transaction marketing
c. to support trade promotions
d. to earn more profit
e. to prevent sales cannibalization
Answer: d
Diff: 3
Type: MC
Page Reference: 281
Skill: Concept
50) In a competition between ________ and ________ brands, retailers have the
advantages of controlling what products will be stocked, where products will be stocked,
what prices will be charged, and which products will be featured in local print
promotions.
a. national; manufacturer
b. national; private-label
c. store; private-label
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d. national; licensed
e. manufacturer; licensed
Answer: b
Diff: 2
Type: MC
Page Reference: 281
Skill: Concept
51) Which of the following is true about generic brands ?
a. They are more popular today than ever before.
b. They were first developed during the last period of economic prosperity in the United
States.
c. They were designed to appeal to the price-conscious consumer.
d. They attract approximately 25 percent of all dollars spent in U.S. supermarkets.
e. They are manufacturer brands.
Answer: c
Diff: 2
Type: MC
Page Reference: 281
Skill: Concept
52) ________ is an agreement between two brands to work together in marketing a new
product.
a. Manufacturer branding
b. Cobranding
c. Franchising
d. Family branding
e. Aggregated branding
Answer: b
Diff: 2
Type: MC
Page Reference: 282
Skill: Concept
53) In ________, branded materials become component parts of other branded products.
a. family branding
b. aggregated branding
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c. umbrella branding
d. manufacturer branding
e. ingredient branding
Answer: e
Diff: 2
Type: MC
Page Reference: 282
Skill: Concept
54) Breyers and Reese's have worked together to create Breyers Ice Cream with Reese's
Peanut Butter Cups. This is an example of ________.
a. family branding
b. ingredient branding
c. private-label branding
d. individual branding
e. generic branding
Answer: b
Diff: 2
Type: MC
Page Reference: 282
Skill: Application
55) Which approach to measuring brand equity focuses on the ability of a brand to charge
a higher price than the price charged by an unbranded equivalent?
a. revenue premium metric
b. financial market metric
c. product-market outcomes metric
d. equity-identity metric
e. customer mind-set metric
Answer: c
Diff: 2
Type: MC
Page Reference: 283
Skill: Concept
56) Which of the following types of brand equity metrics would most likely be based on
information gathered through consumer surveys?
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a. revenue premium metric

b. financial market metric
c. brand venture metric
d. equity-identity metric
e. customer mind-set metric
Answer: e
Diff: 3
Type: MC
Page Reference: 283
Skill: Concept
57) Product packaging can do all of the following EXCEPT which one?
a. protect the product
b. provide service
c. communicate brand personality
d. make the product easier to store
e. create a competitive advantage
Answer: b
Diff: 2
Type: MC
Page Reference: 284
Topic: What packages do?
Skill: Concept
Objective: 8-4 Create Product Identity: The Package and Label
58) ________ involves designing and producing the container or cover for a product.
a. Labeling
b. Licensing
c. Packaging
d. Retailing
e. Service
Answer: c
Diff: 1
Type: MC
Page Reference: 284
Skill: Concept
59) Which of the following is true of the Universal Product Code (UPC)?
a. It is a five-digit number used to control inventory.
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b. It is a package communication element.

c. It is legally required for products with dual distribution channels.
d. It is used only by companies that have more than one retail outlet.
e. It prevents product cannibalization.
Answer: b
Diff: 2
Type: MC
Page Reference: 284
Skill: Concept
60) Which of the following is NOT true of the Universal Product Code (UPC)?
a. It is printed on the side or bottom of all non-perishable items sold in grocery stores and
other mass-merchandising outlets.
b. It supplies information about the type of item.
c. It identifies the manufacturer of the product.
d. It is read by an electronic scanner.
e. Retailers use information from UPC bars to track sales and control inventory.
Answer: a
Diff: 3
Type: MC
Page Reference: 284
Skill: Concept
61) Firms interested in using socially responsible packaging that is less harmful to the
environment are developing ________.
a. aesthetic packaging
b. green packaging
c. ingredient packaging
d. venture packaging
e. Kansei engineering
Answer: b
Diff: 2
Type: MC
Page Reference: 286
Skill: Concept
62) Which of the following controls package communications and labeling in Canada?
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a. the Food and Drug Administration (FDA)

b. The Consumer Packaging and Labeling Act
c. the Nutrition Facts Panel
d. the Federal Fair Packaging and Labeling Act
e. the Consumer Bill of Rights
Answer: b
Diff: 3
Type: MC
Page Reference: 287
Skill: Concept
63) Which of the following is NOT required by the Food and Drug Regulatins on the
labels of most foods sold in Canada?
a. amount of saturated fat in the product
b. sources of all ingredients in the product
c. amount of cholesterol in the product
d. number of calories in the product
e. amount of protein in the product
Answer: b
Diff: 3
Type: MC
Page Reference: 287
Skill: Concept
64) In small firms, the marketing function is usually handled by a ________ who is
responsible for new-product planning, advertising, working with the company's sales
representatives, and marketing research.
a. single marketing manager
b. brand manager
c. product category manager
d. market manager
e. venture team manager
Answer: a
Diff: 2
Type: MC
Page Reference: 287
Topic: Managing Existing Products
Skill: Concept
Objective: 8-5 Organize for effective product management
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65) ________ are responsible for the positioning of a brand and developing its brand
equity. They are likely to team with sales, finance, and logistics staff members as part of
customer business teams who work with major retail accounts.
a. Product category managers
b. Brand managers
c. Venture team managers
d. Market managers
e. Sales managers
Answer: b
Diff: 2
Type: MC
Page Reference: 287
Skill: Concept
66) Which of the following is a disadvantage of the brand management system?
a. a tendency to avoid price differentiation
b. too much focus on the supplementary and complementary roles of all product lines
c. a tendency to overemphasize short-term gains in sales
d. an interdependent structure that can undermine personal responsibility
e. too much focus on establishing brand equity
Answer: c
Diff: 3
Type: MC
Page Reference: 288
Skill: Concept
67) Which of the following is true about a brand manager and a product category
manager?
a. They are two titles for the same job.
b. They have the same functional responsibilities.
c. They probably work for large firms.
d. They are mainly responsible for financial decisions.
e. They do not consider new product lines.
Answer: c
Diff: 2
Type: MC
Page Reference: 288
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Skill: Concept
68) Which of the following accurately describes a product category manager?
a. A product category manager works for a company that relies solely on individual
branding.
b. A product category manager is responsible for moving a company's product mix from
generic to branded.
c. A product category manager coordinates the development of brand equity for a specific
brand name.
d. A product category manager is also called a sales manager.
e. A product category manager coordinates the mix of product lines within a general
product category and is responsible for the addition of new product lines.
Answer: e
Diff: 2
Type: MC
Page Reference: 288
Skill: Concept
69) Within the market manager structure, managers focus on ________.
a. specific customer groups rather than specific products
b. specific products rather than specific customer groups
c. one or two specific brands
d. all company brands and all company customers
e. new product development and marketing
Answer: a
Diff: 1
Type: MC
Page Reference: 288
Skill: Concept
70) Which of the following is most useful when a firm offers a variety of products that
serve the needs of a wide range of customers?
a. the single marketing manager structure
b. the independent brand manager structure
c. the sales manager structure
d. the product category manager structure
e. the market manager structure
Answer: e
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Diff: 3
Type: MC
Page Reference: 288
Skill: Concept
71) When large companies undertake new-product development, they typically enlist
specialists in different areas to create a ________ within the organization.
a. focus group
b. product category team
c. sales team
d. venture team
e. cross-functional brand team
Answer: d
Diff: 2
Type: MC
Page Reference: 288
Skill: Concept
72) Creative people with entrepreneurial skills are the best match for which of the
following?
a. sales management
b. a role on a venture team
c. market management
d. product management
e. information management
Answer: b
Diff: 2
Type: MC
Page Reference: 288
Skill: Concept
73) Venture teams focus exclusively on which of the following?
a. products in the maturity stage of the product life cycle
b. products in the growth stage of the product life cycle
c. relationships with large, important customers
d. the development of a new product
e. the promotional plan for a new product
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Answer: d
Diff: 1
Type: MC
Page Reference: 288
Skill: Concept
74) The term skunk works is associated with which of the following?
a. total quality management (TQM)
b. Six Sigma
c. product category teams
d. cross-functional teams
e. venture teams
Answer: e
Diff: 2
Type: MC
Page Reference: 288
Skill: Concept
75) A firm's skunk works department would most likely be located ________.
a. in a central part of the firm's main office building
b. in the most productive section of the company
c. away from the firm's traditional offices
d. at the headquarters of the firm's largest customer
e. as close as possible to the firm's communication specialists
Answer: c
Diff: 2
Type: MC
Page Reference: 288
Skill: Concept
76) Active Beverages targets the same people who watch the Gravity Games and enjoy
skateboarding, in-line skating, mountain biking, and other extreme sports. It makes highenergy drinks for this target market. It does not attempt to make any drinks that are not
targeted to this market. Active uses a(n) ________.
a. undifferentiated marketing strategy
b. filling-out strategy
c. cannibalization strategy
d. limited-line strategy
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e. brand extension strategy

Answer: d
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
77) In addition to regular Alka-Seltzer, there is an Alka Seltzer product for each of the
followingcold sufferers, people with upset stomachs, people who can't sleep, people with
allergies, and people who have a severe headache. The manufacturer of Alka- Seltzer is
using a(n) ________ to reach as many different target markets as possible.
a. full line strategy
d. undifferentiated strategy
e. upward line stretch
Answer: a
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
78) Mercedes was able to successfully introduce its C-Class car at $30,000 without
injuring its ability to sell other Mercedes cars for $100,000 or more. Mercedes
implemented a(n)________.
a. downward line stretch
b. product line contraction
d. upward line stretch
e. value stretch
Answer: a
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
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79) John Deere, Inc. introduced a lower-priced line of lawn-tractors called Senber while
still selling its more expensive tractors under the John Deere, Inc. brand. This is an
example of ________.
a. a filling-out strategy
b. a downward line stretch
c. an upward line stretch
d. a two-way stretch
e. a contraction strategy
Answer: b
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
80) A winery introduced a brand wine that it priced twice as high as its other wine. This
is an example of product extension by a(n)________.
b. product mix
e. prestige stretch
Answer: d
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
81) A company makes several different kinds of shampoo, but it did not have a dandruff
shampoo designed for women until it added Pro-Women antidandruff shampoo. This is
an example of a(n)________.
b. upward line stretch
d. filling-out strategy
e. product line contraction
Answer: d
Diff: 2
Type: MC
Page Reference: 269
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Skill: Application
82) A company introduced the Funday film to compete with lower-priced brands, but it
found many of its regular customers buying Funday instead of its usual, higher-priced
film. The company experienced ________.
a. an upward line stretch
b. a product line contraction
c. disintermediation
d. cannibalization
e. filling in
Answer: d
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
83) A company has only one product lineall the company manufactures is
supercomputers. This one product line is also the company's ________.
a. branding strategy
b. marketing mix
c. product mix
d. promotional mix
e. brand equity
Answer: c
Diff: 2
Type: MC
Page Reference: 269
Skill: Concept
84) Practically every brand of soft drink ever made is available at Mom's Soda Shop;
regional beverages from around the world can be purchased at the retailer's Web site. The
retailer targets people who have developed a fondness for a particular soft drink and can
no longer find it. The retailer's ________ is all types of soft drinks.
a. branding strategy
b. product objective
c. positioning strategy
d. marketing mix
e. product mix
29
Answer: e
Diff: 2
Type: MC
Page Reference: 269
Skill: Application
85) Kitchen dishcloths are often difficult to rinse clean and typically dry slowly. A
company developed a disposable kitchen cloth that rinses easily and dries quickly.
Because this is a brand new product to the market, it can be said to be in the ________
stage of its product life cycle.
a. competitive
b. trial
c. introduction
d. growth
e. youth
Answer: c
Diff: 2
Type: MC
Page Reference: 273
Topic: Product Life cycle
Skill: Application
Objective: 8-2 Marketing throughout the product life cycle
86) There are numerous kinds of shampoo, including vitamin-enriched, fruit-enhanced,
color-sensitive, therapeutic, and so on. Shampoo that simply promises to clean hair,
however, has seen declining sales, has little or no advertising, and has been phased out by
most manufacturers. Shampoo that makes no other promise than to clean hair is in the
________ stage of its product life cycle.
a. maturity
b. leveling
c. repositioning
d. withdrawal
e. decline
Answer: e
Diff: 2
Type: MC
Page Reference: 275
Skill: Application
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87) A few years ago, a company brought a miniature version of its cereal bars to market.
The nugget-sized product was very successful because it was not messy. Another
company recently introduced a similar product under its own brand. Mini-cereal bars are
most likely in the ________ stage of their product life cycle.
a. introduction
b. youth
c. growth
d. maturity
e. extension
Answer: c
Diff: 3
Type: MC
Page Reference: 273
Skill: Application
88) Over the past 100 years or so, Binney and Smith's Crayola crayons have become a
household staple in more than 80 countries around the world. The company occasionally
tinkers with the product's marketing mix to maintain market share. Crayola crayons are in
the ________ stage of the product life cycle.
a. growth
b. extension
c. development
d. maturity
e. decline
Answer: d
Diff: 3
Type: MC
Page Reference: 273
Skill: Application
89) Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even
though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand ________.
a. extension
b. equity
c. service
d. valuation
e. specialization
Answer: b
Diff: 2
31
Type: MC
Page Reference: 277
Topic: Why brands matter
Skill: Application
Objective: 8-3 Create Product Identity:Branding decisions
90) A manager of a Holiday Inn said, "We have power and value in the market and people
are willing to pay for it." This manager is referring to ________.
a. the value proposition
b. societal marketing
c. total quality management (TQM)
d. the PLC
e. brand equity
Answer: e
Diff: 2
Type: MC
Page Reference: 277
Skill: Application
91) Arm & Hammer began as a producer of baking soda. Now the company
manufactures detergents, deodorants, and fabric softeners under the Arm & Hammer
brand name. Arm & Hammer uses a ________ strategy.
a. brand extension
b. product line contraction
c. downward line stretch
d. cannibalization
e. cobranding
Answer: a
Diff: 3
Type: MC
Page Reference: 279
Skill: Application
92) Kellogg's has marketed Special K cereal for a number of years to a loyal customer
base. Its introduction of a new cereal called Special K with Red Berries is an example of
a(n)________ strategy.
a. cannibalization
b. cobranding
c. brand extension
32
e. downward line stretch

Answer: c
Diff: 3
Type: MC
Page Reference: 279
Skill: Application
93) The J. M. Smuckers Company makes jams, jellies, fruit spreads, and ice cream
toppings. All of these products are sold using the Smuckers brand name. This company
uses a(n)________ strategy.
a. store brand
b. private-label brand
c. cobranding
d. ingredient branding
e. family brand
Answer: e
Diff: 2
Type: MC
Page Reference: 280
Topic: Branding strategies
Skill: Application
94) Disney allowed a paint manufacturer to produce paint using the Disney brand name
for a specific period of time. Disney paint is an example of ________.
a. licensing
b. cobranding
c. family branding
d. ingredient branding
e. private-label branding
Answer: a
Diff: 2
Type: MC
Page Reference: 281
Skill: Application
95) Mattel teamed with Coca-Cola to market Soda Fountain Sweetheart Barbie. This is an
example of ________.
a. generic branding
33
b. family branding
c. franchising
d. cobranding
e. ingredient branding
Answer: d
Diff: 2
Type: MC
Page Reference: 282
Topic: Cobranding
Skill: Application
96) Which of the following is an advantage offered by cobranding?
a. Manufacturers do not have to invest in creating their own brand names.
b. Retailers have exclusive products that cannot be purchased from competitors.
c. Advertising, sales, promotion, and marketing must be carefully coordinated.
d. Brand equity is stabilized.
e. A company can expand its existing brand into a category it otherwise might have
difficulty entering alone.
Answer: e
Diff: 3
Type: MC
Page Reference: 282
Topic: Cobranding
Skill: Application
97) General Foods produces many different brands of coffee, including Brim, Maxim,
Maxwell House, International Coffees, Sanka, and Yuban. Each brand is likely to have its
own ________.
a. venture team
b. market manager
c. product category manager
d. communication manager
e. brand manager
Answer: e
Diff: 2
Type: MC
Page Reference: 287
Topic: Manage existing products
Skill: Application
34
98) Kodak markets cameras, film, X-ray film and equipment, printers, motion picture
film, and batteries. Kodak is likely to have ________ who coordinate the mix of the
product lines.
a. brand managers
b. product category managers
c. venture teams
d. communication teams
e. market managers
Answer: b
Diff: 2
Type: MC
Page Reference: 288
Skill: Application
99) Colgate-Palmolive replaced its brand management structure with a product category
management structure. A manager who had once managed Colgate toothpaste now
manages all of the company's dental products. Under Colgate's new system, a product
category manager would have ________.
a. profit and loss responsibility for all dental products
b. completely different duties than the brand manager had
c. to use persuasion as opposed to direct authority to achieve goals
d. no authority over functions, other than marketing, that affect dental products
e. no authority over international dental product sales
Answer: a
Diff: 3
Type: MC
Page Reference: 288
Skill: Application
100) A manufacturer of acrylic, latex, and nitrile gloves sells to medical laboratories,
factories where employees handle chemicals, companies that manufacture micro-tech
equipment, and cleaning services. The company is organized to better satisfy the specific
needs of each of its four target markets, so it uses a ________ structure.
a. product category
b. market manager
c. brand manager
d. venture team
e. family brand
Answer: b
35
Diff: 2
Type: MC
Page Reference: 288
Skill: Application
101) In creating product objectives, marketers should consider the long-term implication
of product decisions.
a. True
b. False
Answer: a
Diff: 1
Type: TF
Page Reference: 266
Skill: Concept
102) A company can stretch its product line either upward or downward, but not both
directions.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 269
Skill: Concept
103) Product quality is related to how customers think a product will perform.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 271
Topic: Quality as a product objective
Skill: Concept
36
104) The poor quality of American products in comparison to Japanese products in the
1880s led to the ISO quality revolution in American industry.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 271
Skill: Concept
105) Total quality management involves all employees, regardless of their function, in
continual quality improvement efforts.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 271
Skill: Concept
106) The Six Sigma process is applied to products but not services.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 271
Skill: Concept
107) The length of the introduction stage of the product life cycle is typically the same
for all products.
a. True
b. False
Answer: b
Diff: 2
Type: TF
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Page Reference: 273

Skill: Concept
108) The growth stage of the product life cycle is usually the longest.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 275
Skill: Concept
109) Existing brand equity can hamper the success of a brand extension strategy.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 277
Skill: Concept
Objective: 8-3 Create product identity: Branding decisions
110) Discount retailers such as Walmart do not sell private-label brands.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 281
Skill: Application
111) Packaging plays an important role in communicating brand personality.
a. True
b. False
Answer: a
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Diff: 1
Type: TF
Page Reference: 284
Topic: What packages do
Skill: Concept
Objective: 8-4 Create product Identity: The Package and Label
112) Marketers should consider the packaging of other brands within the category when
designing their brand's packaging.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 284
Skill: Concept
113) The UPC is a global system of product identification.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 284
Skill: Concept
114) The Consumer Packaging and Labelling Act controls all package communications
and labeling in Canada.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 287
Skill: Concept
39
115) The Food and Drug Regulations requires most food labels in Canada to have
nutritional labeling mandatory on all prepackaged food.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 287
Skill: Concept
116) The effectiveness of product strategies depends on the managers who carry them
out.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 287
Skill: Concept
117) Depending upon the organization, product management may include brand
managers, product category managers, and market managers.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 287
Skill: Concept
118) Brand managers may push too hard with coupons or other price incentives to the
point that customers will refuse to buy the product without these promotions.
a. True
b. False
Answer: a
Diff: 2
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Type: TF
Page Reference: 287
Skill: Concept
119) Long-term profitability will not be affected if the brand managers offer an excess of
coupons or cents-off packages to customers.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 287
Skill: Concept
120) The market manager structure would probably not be useful when firms offer a
variety of products that serve the needs of a wide range of customers.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 288
Skill: Concept
121) A watch manufacturer added a watch to its product line that was higher priced than
the models it already carried. The company used a two-way stretch strategy.
a. True
b. False
Answer: b
Diff: 2
Type: TF
Page Reference: 269
Skill: Application
41
122) A buttery spread designed to help lower cholesterol levels is a product with a
number of new competitors entering the market. This product is most likely in the
introduction stage of its product life cycle.
a. True
b. False
Answer: b
Diff: 3
Type: TF
Page Reference: 273
Skill: Application
123) The Clorox Company marketed a new product called Clorox Oxygen Action
multipurpose stain reliever. This is an example of a brand extension.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 277
Skill: Application
124) Heinz and Jack Daniels worked together to produce Jack Daniels grilling sauce.
This is an example of cobranding.
a. True
b. False
Answer: a
Diff: 2
Type: TF
Page Reference: 282
Topic: Cobranding
Skill: Application
125) A brand manager serves essentially the same function as a product category
manager.
a. True
b. False
Answer: b
42
Diff: 2
Type: TF
Page Reference: 287
Skill: Concept
126) Explain cannibalization. How does a line extension strategy increase the risk of
cannibalization?
Answer:
Organizations often decide to extend their product lines by adding more brands or
models. Any time a new or similar product is introduced, there is a risk of cannibalization
of existing products. Cannibalization is the loss of sales of an existing product to a new
item in a product line or product family that the company has introduced. Instead of
reaching new customers, the new product may just cause current customers to switch
brands. Marketers must consider whether a new brand or model will significantly detract
from their existing brands.
Diff: 2
Type: ES
Page Reference: 269
Skill: Concept
127) How can marketers use elements of the marketing mix to improve product quality?
Answer:
Product, place, price, and promotion are the elements of the marketing mix. Improving
quality through the product element might mean improving customer service support,
making it quicker and easier for customers to interact with the company and get the
results they desire. Improving quality through place could involve improving on-time
delivery to customers by reevaluating and modifying purchasing and delivery strategies.
Improving quality through price involves offering a lower price, which means reducing
the firm's costs. Finally, improving quality through promotion can mean making more
information available to customers when and where they want it.
Diff: 3
Type: ES
Page Reference: 271
Skill: Concept
43
128) Why do so many products fail to make it past the introduction stage of the product
life cycle?
Answer:
For a new product to be successful, consumers must first know about it. Then they must
believe it is something they want or need. The intense promotional costs of this stage, as
well as the firm's need to recoup its investment in developing the product, put a lot of
pressure on the firm to quickly establish and then increase sales. If marketers cannot
successfully do this, then the new product is unlikely to leave the introduction stage.
Diff: 2
Type: ES
Page Reference: 273
Skill: Concept
129) Each product will have a life cycle, although its exact shape and length is not known
in advance. Briefly explain each step in the product life cycle.
Answer:
Introduction is a period of slow sales growth as the product is introduced in the market.
Profits are nonexistent in this stage because of the heavy expenses of product
introduction. Growth is a period of rapid market acceptance and increasing profits.
Maturity is a period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers. Profits level off or decline because of increased
marketing outlays to defend the product against competition. Decline is the period when
sales fall off and profits drop. A company may seek to maintain a product hoping
competition will diminish or drop it.
Diff: 3
Type: ES
Page Reference: 273-276
Skill: Concept
130) Discuss the concept of escalating levels of commitment to a brand. How do
consumers progress in loyalty to a brand?
Answer:
At the lowest level, consumers really have no loyalty to a brand and will switch brands
for any reason. Moving up, though, consumers look at brand performance and imagery,
focusing on what it does for them. The next level is more emotional, with consumers
forming beliefs about the brand and having emotional reactions to it. The highest level of
brand loyalty occurs when consumers bond with the brand and feel they have a real
44
relationship with it. This relationship may be based on one of many different kinds of
attachment, such as self-concept, nostalgia, interdependence, or even love.
Diff: 3
Type: ES
Skill: Concept
131) Why might a retailer increase the number of private-label brands it sells?
Answer:
Private-label or store brands are the retailer's exclusive trade name. Retailers choose a
private-label branding strategy because they generally make more profit on store brands
than on national or manufacturer brands. Private-label branding is also important when
retailers seek to maintain a consistent store image and build brand equity that belongs to
their store rather than a manufacturer.
Diff: 3
Type: ES
Skill: Concept
132) What is ingredient branding? Why would manufacturers want to engage in
ingredient branding?
Answer:
Ingredient branding is a form of cobranding in which branded materials are used as
ingredients or component parts of other branded products. The practice of ingredient
branding has two primary benefits. First, it attracts customers to the host brand because
the ingredient brand is familiar and has a strong brand reputation for quality. Second, the
ingredient brand's firm can sell more of its product, not to mention the additional
revenues it gets from the licensing agreement.
Diff: 2
Type: ES
Topic: Cobranding
Skill: Concept
133) How can a marketer use a package to communicate with consumers?
45
Answer:
A marketer can use a package to communicate brand personality through effective use of
colors, words, shapes, and images. In addition to brand identity, the package can provide
facts and important consumer tips, as well as warranty information and ways to contact
the company. The choice of packaging can make an aesthetic statement about the brand
or convey a brand's commitment to social responsibility. For instance, many brands are
now marketed in green packaging that is less harmful to the environment than other
materials.
Diff: 2
Type: ES
Page Reference: 284
Skill: Concept
134) Briefly explain the history of regulations concerning packaging and labels.
Answer:
The Consumer Packaging and Labelling Act controls package communications and
labeling. The law aims to make labels provide information that is useful to consumers.
The Food and Drug Regulations requires sellers to provide detailed nutritional
information on food products. In addition, the Food and Drug Regulations requires labels
to provide information about calories, fat, carbohydrates, protein, and vitamin content.
Diff: 3
Type: ES
Page Reference: 287
Topic: Labelling Regulations
Skill: Concept
135) How does a product category manager differ from a market manager?
Answer:
The focus of each position is different. A product category manager is responsible for
developing and implementing the marketing plan for all of the brands and products
within a product category. A market manager is responsible for developing and
implementing the marketing plans for all products sold to a particular customer group. A
product category manager will have more expertise in a particular product line, while a
market manager will have more expertise in serving a particular market segment.
Diff: 2
Type: ES
46
Skill: Concept
136) Why is successful product management increasingly important as technology moves
forward and the marketplace becomes more globalized?
Answer:
As more competitors enter the global marketplace and as technology moves forward at an
increasing pace, more and more products are created, grow, reach maturity, and decline
faster. This means that good product decisions are more critical than ever. Marketers don't
have the time to try one thing, find out if does not work, and then try something else.
Diff: 2
Type: ES
Page Reference: 266
Skill: Concept
137) A car company is marketing a new car model that is larger and more luxurious than
any of the models currently in the product line. It is also significantly more expensive.
Explain the strategy this car company is using with its product line.
Answer:
This car company is using an upward line stretch with this new car, adding a product that
is higher quality or has added features to the product line.
Diff: 2
Type: ES
Page Reference: 269
Skill: Application
138) What is the difference between a product line and a product mix?
Answer:
A product line is a firm's total product offering designed to satisfy a single need or desire
of a group of target customers. A firm's product mix is its entire range of products,
encompassing all of the firm's product lines.
Diff: 2
Type: ES
Skill: Concept
47
139) What is the difference between ISO 9000 and ISO 14000?
Answer:
Both are quality guidelines set forth by the International Organization for
Standardization; the ISO 9000 is a broad set of guidelines that establishes voluntary
standards for quality management, while the ISO 14000 focuses on an organization's
environmental management.
Diff: 3
Type: ES
Page Reference: 271
Topic: Quality Guidelines
Skill: Concept
140) What is the difference between total quality management (TQM) and the Six Sigma
process?
Answer:
Six Sigma sets a specific goal for product and service quality, with a specific five-step
process to achieve that goal, while total quality management sets a goal of continuous
improvement of all of the company's operations.
Diff: 3
Type: ES
Page Reference: 271
Skill: Concept
141) Identify four different possible meanings of product quality.
Answer:
Answers will vary, but should reflect the different meanings of quality: durability,
reliability, versatility, consistency, precision, ease of use, safety, and aesthetics.
Diff: 3
Type: ES
Page Reference: 272
Skill: Concept
48
142) Why might ad expenditures be high for products in the introductory stage of the
product life cycle?
Answer:
Consumers have very little awareness about such products; promotional spending can
enhance customer awareness.
Diff: 2
Type: ES
Page Reference: 273
Skill: Concept
143) Why might ad expenditures remain high in the growth stage of the product life
cycle?
Answer:
Though sales are increasing for such products, competition becomes fierce as competitors
attempt to enter the market; therefore, ad dollars remain high in an effort to offset
competitive threats.
Diff: 2
Type: ES
Page Reference: 275
Skill: Concept
144) What are the four "easy" tests brand designers use in selecting a good brand name?
Choose a brand and explain how it passes these tests.
Answer:
The four "easy" tests brand designers use to judge a brand name are whether the name is
easy to say, easy to spell, easy to read, and easy to remember. Specific brand answers will
vary.
Diff: 3
Type: ES
Page Reference: 277
Skill: Concept
145) How is it possible for a company in Canada to have protection for a brand even if it
has not legally registered it?
49
Answer:
In Canada, common-law protection exists if the firm has used the name and established it
over a period of time.
Diff: 3
Type: ES
Page Reference: 277
Skill: Concept
146) Panasonic markets a line of digital cameras that use Leica lenses. Leica lenses are
legendary for their superb image quality. Panasonic is known for its consumer
electronics. What marketing strategy are Panasonic and Leica implementing? Support
your answer.
Answer:
Panasonic and Leica are implementing cobranding. Cobranding benefits both partners
when the combination of the two brands provides more customer recognition power than
either brand on its own.
Diff: 3
Type: ES
Page Reference: 282
Topic: Cobranding
Skill: Application
147) Why might a firm want to use green packaging? Describe one type of green
packaging in your answer.
Answer:
A firm might want to use green packaging, such as a smaller package of concentrated
laundry detergent or fabric softener, to reduce the environmental impact of the package.
The firm can show customers its commitment to act in a socially responsible manner
through its packaging choices.
Diff: 2
Type: ES
Page Reference: 286
Topic: Effective package design
Skill: Concept
50
148) Briefly explain what the Food and Drug Regulations requires on food labels and
why.
Answer:
The FDR requires marketers to provide a great deal of information on food labels,
including the amount of fat, saturated fat, calories, cholesterol, carbohydrates, protein,
vitamins, and trans fat. These regulations are designed to force firms to be accurate in
describing their products so that consumers can know exactly what they are buying.
Diff: 3
Type: ES
Page Reference: 287
Topic: Labelling Regulations
Skill: Concept
149) What are some of the potential responsibilities of brand managers employed at
Procter & Gamble?
Answer:
Procter & Gamble brand managers function like internal consultants. They are
responsible for positioning brands and developing brand equity. They are likely to work
with sales and finance as well as logistic staff members as a part of cross-functional
teams.
Diff: 2
Type: ES
Page Reference: 287
Skill: Application
150) Explain the potential problems associated with the brand management system.
Answer:
Because brand managers within one firm may be in competition against each other, they
may push too hard for short-term sales with coupons and other sales promotions for their
own brand that damage other brands and, in the long run, hurt brand equity.
Diff: 2
Type: ES
Page Reference: 288
Skill: Concept
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Marketing: Real People, Real Choices

1) Which of the following is an accurate statement about product management?

Marketing: Real People, Real Choices

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b. research and development

Marketing: Real People, Real Choices

21) An American company wanting to be competitive in the environmentally sensitive

Marketing: Real People, Real Choices

Objective: 8-2 Marketing through the Product Life Cycle

Marketing: Real People, Real Choices

Objective: 8-2 Marketing through the Product Life Cycle

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Topic: Product Life Cycle

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

a. revenue premium metric

Marketing: Real People, Real Choices

b. It is a package communication element.

Marketing: Real People, Real Choices

a. the Food and Drug Administration (FDA)

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

e. brand extension strategy

Marketing: Real People, Real Choices

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Topic: Objectives and strategies for multiple products

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

e. downward line stretch

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Marketing: Real People, Real Choices

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Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices

Marketing: Real People, Real Choices