Quiz 4 Practice

Question 1

What does the width of the product mix refer to?
a) The total number of products in the mix
b) The number of product lines the company offers
c) The depth of each product line
d) The diversity of product features

Answer 1

b) The number of product lines the company offers

Question 2

How is the length of the product mix defined?
a) The number of product lines in the mix
b) The total number of products within a product line
c) The total number of products in the mix
d) The variety of product features

Answer 2

c) The total number of products in the mix

Question 3

What does the depth of the product mix indicate?
a) The number of product lines offered by the company
b) The diversity of product features within a product line
c) The total number of products in the mix
d) The total number of products within a product line

Answer 3

b) The diversity of product features within a product line

Question 4

What stage of the product life cycle typically sees high competition as companies try to establish their brand and gain market share?
a) Introduction
b) Growth
c) Maturity
d) Decline

Answer 4

b) Growth

Question 5

Which stage of the product life cycle is characterized by a rapid increase in sales and profit as consumer awareness grows?
a) Introduction
b) Growth
c) Maturity
d) Decline

Answer 5

b) Growth

Question 6

During which stage of the product life cycle do companies focus on promotional efforts to differentiate their product from competitors?
a) Introduction
b) Growth
c) Maturity
d) Decline

Answer 6

c) Maturity

Question 7

In which stage of the product life cycle do companies often reduce costs and may consider discontinuing the product if sales decline significantly?
a) Introduction
b) Growth
c) Maturity
d) Decline

Answer 7

c) Maturity

Question 8

What strategy might a company employ during the maturity stage of the product life cycle to extend the product’s life and maintain market share?
a) Increase promotional efforts
b) Lower prices to attract new customers
c) Introduce product variations or improvements
d) Reduce distribution channels

Answer 8

c) Introduce product variations or improvements

Question 9

What is the primary objective of skimming pricing strategy?
a) To quickly penetrate the market
b) To gain a large market share
c) To maximize profits from early adopters
d) To minimize production costs

Answer 9

c) To maximize profits from early adopters

Question 10

Skimming pricing is typically employed during which stage of the product life cycle?
a) Introduction
b) Growth
c) Maturity
d) Decline

Answer 10

a) Introduction

Question 11

Which of the following best describes the pricing approach in skimming strategy?
a) Setting prices low to attract a broad customer base
b) Setting prices high initially and gradually lowering them
c) Setting prices equal to competitors’ prices
d) Setting prices based on production costs

Answer 11

b) Setting prices high initially and gradually lowering them

Question 12

What type of customers is skimming pricing strategy most effective for?
a) Loyal customers
b) Early adopters
c) Late majority
d) Competitors’ customers

Answer 12

b) Early adopters

Question 13

Which of the following is a potential disadvantage of skimming pricing?
a) Difficulty in covering production costs
b) Limited profit margins
c) Reduced brand image and perceived value
d) Inability to attract early adopters

Answer 13

c) Reduced brand image and perceived value

Question 14

What is the first step in the new-product development process?
a) Market research
b) Idea generation
c) Concept development and testing
d) Commercialization

Answer 14

b) Idea generation

Question 15

Which phase of the new-product development process involves evaluating the feasibility and potential success of a product idea?
a) Concept development and testing
b) Idea generation
c) Commercialization
d) Business analysis

Answer 15

d) Business analysis

Question 16

During which step of the new-product development process are prototypes often developed and tested with potential consumers?
a) Business analysis
b) Idea generation
c) Development
d) Concept development and testing

Answer 16

c) Development

Question 17

What is the final step in the new-product development process?
a) Market research
b) Commercialization
c) Idea generation
d) Concept development and testing

Answer 17

b) Commercialization

Question 18

Which phase of the new-product development process involves determining how to bring the product to market, including decisions on pricing, distribution, and promotion?
a) Concept development and testing
b) Business analysis
c) Commercialization
d) Development

Answer 18

c) Commercialization

Question 19

What term refers to the process by which the acceptance of an innovation spreads throughout a market group over time?
a) Market penetration
b) Market segmentation
c) Product positioning
d) Diffusion process

Answer 19

d) Diffusion process

Question 20

Which of the following is NOT one of the stages in the diffusion process?
a) Awareness
b) Trial
c) Rejection
d) Adoption

Answer 20

c) Rejection

Question 21

Which category of adopters represents the first 2.5% of consumers to adopt a new product and are characterized by their willingness to take risks?
a) Innovators
b) Early adopters
c) Early majority
d) Late majority

Answer 21

a) Innovators

Question 22

In which stage of the diffusion process do potential customers become aware of the new product but lack information about it?
a) Awareness
b) Interest
c) Evaluation
d) Trial

Answer 22

a) Awareness

Question 23

What percentage of the total market adopts a new product during the early majority stage of the diffusion process?
a) 2.5%
b) 13.5%
c) 34%
d) 16%

Answer 23

c) 34%

Question 23

Which of the following brand strategies involves offering a variety of products under the same brand name, such as Procter & Gamble’s use of the Tide brand for laundry detergent, fabric softener, and other related products?
a) Brand extension
b) Multi-branding
c) Private branding
d) Co-branding

Answer 23

a) Brand extension

Question 24

What type of branding strategy involves creating a new brand name for a new product in the same product line, such as Toyota introducing the Lexus brand for luxury vehicles? a) Brand extension b) Multi-branding c) Private branding d) Line extension

Answer 24

d) Line extension

Question 25

When a company sells its products under the brand name of a wholesaler or retailer, what type of branding strategy is being used? a) Brand extension b) Multi-branding c) Private branding d) Co-branding

Answer 25

c) Private branding

Question 26

What brand strategy involves marketing two or more brands together on the same package or promotion, leveraging the equity of multiple brands to create a unique offering? a) Brand extension b) Multi-branding c) Private branding d) Co-branding

Answer 26

d) Co-branding

Question 27

Which branding strategy involves using the same brand name for new products introduced in the same category or market segment, such as introducing new flavors or variations of an existing product? a) Brand extension b) Multi-branding c) Private branding d) Line extension

Answer 27

d) Line extension

Question 28

Which of the following pricing strategies focuses on achieving a cost advantage by leveraging economies of scale or advanced technology? a) Markup pricing b) Cost-plus pricing c) Cost advantage pricing d) Benchmark pricing

Answer 28

c) Cost advantage pricing

Question 29

What pricing strategy involves adjusting prices in response to competitors' price cuts in the market? a) Cost advantage pricing b) Price cut reaction c) Benchmark pricing d) Economic value pricing

Answer 29

b) Price cut reaction

Question 30

In pricing strategy, what does EVC stand for? a) Estimated Value Calculation b) Economic Value Creation c) Economic Value to the Customer d) Efficient Value Control

Answer 30

c) Economic Value to the Customer

Question 31

Which of the following pricing strategies is based on setting prices by adding a predetermined markup percentage to the product's cost? a) Cost advantage pricing b) Price cut reaction c) Markup pricing d) Benchmark pricing

Answer 31

c) Markup pricing

Question 32

What pricing strategy is based on setting prices based on the relative position of the product in the market compared to competitors? a) Cost advantage pricing b) Economic value pricing c) Benchmark pricing d) Markup pricing

Answer 32

c) Benchmark pricing