Question: A biological metaphor that traces the stages of a product’s acceptance from its introduction to its decline is the:

Answers:

product germination cycle.

circadian merchandise rhythm.

product category cycle.

marketing mix.

product life cycle.

Answer: product life cycle.

Response Feedback:

Correct. The product life cycle (PLC) is one of the most familiar concepts in marketing, though some have challenged its theoretical basis and managerial value. See page 181.

Question: When you tell your friends about a great new restaurant you visited last week, you are aiding the diffusion process through:

Answers:

mass marketing.

commercialization.

word-of-mouth communication.

early adoption.

marketing myopia.

Answer: word-of-mouth communication.

Response Feedback:

Correct. Word-of-mouth communication within and among groups speeds diffusion. See page 180.

Question: The most rapid growth in sales of a new product occurs during the introductory stage of the product life cycle.

Answers:

True

False

Answer: False

Response Feedback:

Correct. The most rapid growth occurs in the growth stage.

Question:

Answer: repositioning

Response Feedback:

One way to create innovative products is to target new markets through repositioning. Repositioning is an attempt to change the market’s perception of a product.

Question:

Answer: test marketing.

Response Feedback:

Correct. Test marketing is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. See page 177.

Question: Pepsi-Cola is a brand that is over 100 years old and includes a series of line extensions. Despite its age, it still maintains a large market share. Pepsi is in the maturity stage of its life cycle.

Answers:

True

False

Answer: True

Question: The process by which the adoption of an innovation spreads is called the adoption process.

Answers:

True

False

Answer: False

Response Feedback:

Correct. This is known as the diffusion process.

Question:

Answer: laggard.

Response Feedback:

Correct. By the time laggards adopt an innovation, it has usually become outmoded and been replaced by something else. They have the longest adoption time of all consumers. See page 180.

Question: Which of the following typically occurs in a product’s growth phase?

Answers:

Competition intensifies.

Sales occur at a decreasing rate.

Marketing costs reach their peak.

Laggards finally begin purchasing the product.

The product is frequently modified.

Answer: Competition intensifies.

Response Feedback:

Correct. During a product’s growth phase, sales typically grow at an increasing rate, many competitors enter the market, large companies may acquire small pioneering firms, and profits are healthy. See page 182.

Question:

Answer: As a repositioned product.

Response Feedback:

Correct. The shift from general sales into novelty and gag gifts represents a repositioning of lava lamps. See pages 171-172.