MGT 103 EXAM 2 QUESTIONS AND
ANSWERS LATEST UPDATE
· Product Adoption Stages - Answer-1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
Types of Product Adopters - Answer-1. Innovators
2.Early Adopters
3.Early Majority
4.Late Majority
5.Laggards
· Product Life Cycle - Answer-introduction, growth, maturity, decline
Goods - Answer-tangible attributes that a consumer's five senses can perceive.
Idea - Answer-a thought that leads to a product or action
nondurable good - Answer-is an item consumed in one or a few uses, such as food
products and fuel.
durable good - Answer-is one that usually lasts over many uses, such as appliances,
cars, and smartphones. This classification method also provides direction for marketing
actions.
Services - Answer-are intangible activities or benefits that an organization provides to
satisfy consumers' needs in exchange for money or something else of value.
Consumer products - Answer-products purchased by the ultimate consumer;
Convenience,
Shopping,
Specialty,
Unsought
business products (also called B2B products or industrial products) - Answer-are
products organizations buy that assist in providing other products for resale. Some
products can be considered both consumer and business items. sales are often the
result of derived demand; that is, sales of business products frequently result (or are
derived) from the sale of consumer products; become part of final product, Support
products;
,Convenience products - Answer-are items that the consumer purchases frequently,
conveniently, and with a minimum of shopping effort. toothpaste
Shopping products - Answer-are items for which the consumer compares several
alternatives on criteria such as price, quality, or style. bed
Specialty products - Answer-are items that the consumer makes a special effort to
search out and buy. car
Unsought products - Answer-are items that the consumer does not know about or
knows about but does not initially want. fire extinguisher
. Product positioning - Answer-refers to the place a product occupies in consumers'
minds based on important attributes relative to competitive products
Packaging Functions - Answer--protect the product and maintain its functional form
-provide customer convenience
-promotes the product's features and uses
-communicates quality through symbols
· Branding - Answer-which an organization uses a name, phrase, design, symbols, or
combination of these to identify its products and distinguish them from those of
competitors; Your brand communicates to the market Who are you? What do you do?
Who do you do it for?
o Brand personality - Answer-a set of human characteristics associated with a brand
name
o Brand Equity - Answer-A brand's financial value to its organization, premium placed
on the company because of brand ownership; 1. develop positive brand awareness 2. a
marketer must establish a brand's meaning in the minds of consumers. 3.elicit the
proper consumer responses to a brand's identity and meaning. 4.The final, and most
difficult, step is to create a consumer-brand connection evident in an intense, active
loyalty relationship between consumers and the brand.
Individual Branding (multibranding) - Answer-Separate brands for each product or
product line; • Allows company to serves multiple segments without diluting the image of
the brands• Different people will buy Cadillac than will buy Chevrolet• The segment that
buys Toyota will be different from thosethat buy Lexus
Co-branding - Answer-pairing two or more strong brands to facilitate marketing of a joint
product or service for mutual benefit
risks:
Too many uses for one brand name can dilute meaning of a brand for consumers;
harms brand equity
, Brand dilution - consumers no longer associate brand with specific product or service or
start thinking less favorably about the brand
Price elasticity of demand (E) - Answer-percentage change in quantity demanded
relative to percentage change in price
Umbrella (Family) Branding (multiproduct branding) - Answer-A single brand for (nearly)
all of a company's products; • Leverages equity of existing brand, instant recognition,
avoid costs of building new brand risk: Awareness must be generated for each brand
without benefit of any previous impressions
Complexity and expenses of implementing
Legal and ethical considerations - Answer-Price fixing
Price discrimination
Deceptive pricing
Geographical price
Predatory pricing
Brand Extensions - Answer-• Strategy of using established brand in different context
(different product category or price tier)• Starbucks coffee - Starbucks ice cream•
Oakley sunglasses - Oakley watches, clothing
Unit volume - Answer-quantity produced or sold
Sell multiple products at different prices
Match unit volume demanded by customers with price and production capacity
Can be counterproductive if a volume objective is achieved by price cutting that drives
down profit
Horizontal Brand Extensions - Answer-applying the brand to a different product
category, typically within the same price tier
Market share - Answer-ratio of firm's sales revenues or unit sales to those of industry
Vertical Brand Extensions - Answer-extend the brand up into more premium market
segments or down into more value-conscious segments
Private branding/private labeling/reseller branding - Answer-manufactures products but
sells them under brand name of a wholesaler or retailer
Produces high profits for manufacturers and resellers
product item - Answer-is a specific product that has a unique brand, size, or price.
product line - Answer-is a group of product or service items that are closely related
because they satisfy a class of needs, are used together, are sold to the same customer
group, are distributed through the same outlets, or fall within a given price range.
ANSWERS LATEST UPDATE
· Product Adoption Stages - Answer-1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
Types of Product Adopters - Answer-1. Innovators
2.Early Adopters
3.Early Majority
4.Late Majority
5.Laggards
· Product Life Cycle - Answer-introduction, growth, maturity, decline
Goods - Answer-tangible attributes that a consumer's five senses can perceive.
Idea - Answer-a thought that leads to a product or action
nondurable good - Answer-is an item consumed in one or a few uses, such as food
products and fuel.
durable good - Answer-is one that usually lasts over many uses, such as appliances,
cars, and smartphones. This classification method also provides direction for marketing
actions.
Services - Answer-are intangible activities or benefits that an organization provides to
satisfy consumers' needs in exchange for money or something else of value.
Consumer products - Answer-products purchased by the ultimate consumer;
Convenience,
Shopping,
Specialty,
Unsought
business products (also called B2B products or industrial products) - Answer-are
products organizations buy that assist in providing other products for resale. Some
products can be considered both consumer and business items. sales are often the
result of derived demand; that is, sales of business products frequently result (or are
derived) from the sale of consumer products; become part of final product, Support
products;
,Convenience products - Answer-are items that the consumer purchases frequently,
conveniently, and with a minimum of shopping effort. toothpaste
Shopping products - Answer-are items for which the consumer compares several
alternatives on criteria such as price, quality, or style. bed
Specialty products - Answer-are items that the consumer makes a special effort to
search out and buy. car
Unsought products - Answer-are items that the consumer does not know about or
knows about but does not initially want. fire extinguisher
. Product positioning - Answer-refers to the place a product occupies in consumers'
minds based on important attributes relative to competitive products
Packaging Functions - Answer--protect the product and maintain its functional form
-provide customer convenience
-promotes the product's features and uses
-communicates quality through symbols
· Branding - Answer-which an organization uses a name, phrase, design, symbols, or
combination of these to identify its products and distinguish them from those of
competitors; Your brand communicates to the market Who are you? What do you do?
Who do you do it for?
o Brand personality - Answer-a set of human characteristics associated with a brand
name
o Brand Equity - Answer-A brand's financial value to its organization, premium placed
on the company because of brand ownership; 1. develop positive brand awareness 2. a
marketer must establish a brand's meaning in the minds of consumers. 3.elicit the
proper consumer responses to a brand's identity and meaning. 4.The final, and most
difficult, step is to create a consumer-brand connection evident in an intense, active
loyalty relationship between consumers and the brand.
Individual Branding (multibranding) - Answer-Separate brands for each product or
product line; • Allows company to serves multiple segments without diluting the image of
the brands• Different people will buy Cadillac than will buy Chevrolet• The segment that
buys Toyota will be different from thosethat buy Lexus
Co-branding - Answer-pairing two or more strong brands to facilitate marketing of a joint
product or service for mutual benefit
risks:
Too many uses for one brand name can dilute meaning of a brand for consumers;
harms brand equity
, Brand dilution - consumers no longer associate brand with specific product or service or
start thinking less favorably about the brand
Price elasticity of demand (E) - Answer-percentage change in quantity demanded
relative to percentage change in price
Umbrella (Family) Branding (multiproduct branding) - Answer-A single brand for (nearly)
all of a company's products; • Leverages equity of existing brand, instant recognition,
avoid costs of building new brand risk: Awareness must be generated for each brand
without benefit of any previous impressions
Complexity and expenses of implementing
Legal and ethical considerations - Answer-Price fixing
Price discrimination
Deceptive pricing
Geographical price
Predatory pricing
Brand Extensions - Answer-• Strategy of using established brand in different context
(different product category or price tier)• Starbucks coffee - Starbucks ice cream•
Oakley sunglasses - Oakley watches, clothing
Unit volume - Answer-quantity produced or sold
Sell multiple products at different prices
Match unit volume demanded by customers with price and production capacity
Can be counterproductive if a volume objective is achieved by price cutting that drives
down profit
Horizontal Brand Extensions - Answer-applying the brand to a different product
category, typically within the same price tier
Market share - Answer-ratio of firm's sales revenues or unit sales to those of industry
Vertical Brand Extensions - Answer-extend the brand up into more premium market
segments or down into more value-conscious segments
Private branding/private labeling/reseller branding - Answer-manufactures products but
sells them under brand name of a wholesaler or retailer
Produces high profits for manufacturers and resellers
product item - Answer-is a specific product that has a unique brand, size, or price.
product line - Answer-is a group of product or service items that are closely related
because they satisfy a class of needs, are used together, are sold to the same customer
group, are distributed through the same outlets, or fall within a given price range.
