MKT 3401 Exam 2 Questions with Correct Answers Latest Update 2025/2026
What are the 5 stages of the Product Life Cycle? - Answers Introduction, Growth, Maturity,
Decline, and Extension
What is extension? - Answers when a brand continues on just when you think it's over
What is an example of a brand extension? - Answers The Volkswagen Beetle returning
What is the growth stage in the product life cycle? - Answers Focuses on price and promotion
changes along the product life cycle.
What are some questions asked in the growth phase of the product life cycle? - Answers How
are we going to advertise? How are we going to price it?
What is the maturity phase? - Answers When the product is sustained, but price and promotion
change along the way
What is the decline phase? - Answers When the product disappears and dissolves
What is involvement? - Answers the time and effort spent searching for a product
What are the categories of products? - Answers Convenience, Shopping, Specialty, and
Unsought
What is a convenience product? - Answers things that don't cost a lot of money or time and are
low risk. (example: candy bar from a gas station)
What is a shopping product? - Answers a product that you have to spend more time and money
with a little more risk (example: computer or phone)
What is a specialty product? - Answers product with a bigger risk on the product and it can cost
more (example: william sonoma cooking gear)
What is an unsought product? - Answers a type of product you don't think about needing, but all
of the sudden it is needed. Can be hard to shop for, so companies that present the clearest
message get the buyer (Example: Health Insurance)
What are the components that make up products? - Answers Packaging and warranty
What is product packaging? - Answers The way a product is packaged and what that portrays
about it
What is a warranty? - Answers statement explaining what the company will give if your product
break/malfunctions within a certain amount of time
What is the importance behind a warranty? - Answers it serves as a point of differentiation and
shows the company trusts their product
, What is the story about the creation of the warranty? - Answers Chrysler is struggling; several
years ago, they hired a whiz kid named Lee Iacoca, a charismatic leader with Ford who helped
design the Mustang. He leaves Ford and goes to Chrysler who had nothing. Lee saw the van that
Chrysler had and saw a segment of the market emerging that the van would play well in. He also
saw that they had this car called the "K" that was very old-fashioned and plain and there was a
segment out there that needed this car. Going through all the data, Lee realized that the working
class needed an inexpensive means of reliable transportation. They needed to get from point A
to B then from B to A consistently. The problem that Chrysler had was that their products were
not reliable, so Lee made sure that they were more reliable. How do you prove that something is
reliable? He came up with a warranty. Lee came up with the 10-year, 100,000-mile bumper-to-
bumper warranty. The warranty made Chrysler look like it was a better company.
What are the 3 objectives of branding? - Answers Identification, repeat sales, and introduction of
new products
What are the components of packaging? - Answers Contain the product, facilitate recycling,
prevent theft, and promote the product
What are the components of promoting the product? - Answers Color, Shape, Smell, Sound, and
the label
What is the color component of packaging? - Answers serves as a source identifier (Example:
Pepsi hating Coca-Cola's red)
What is the shape component of packaging? - Answers the shape the package is (examples:
Red Bull can shape, mints being in a tin because of altoids)
What is the smell component of packaging? - Answers How the product smells (Example: New
car smell can make you want a new car, smell of tiger stadium can remind you of college, nice
hotels identifying as smells)
What is the sound component of packaging? - Answers the audio logo, what you think of when
you hear the product sound. (Example: Bell sound on a Taco Bell Commercial)
What are the components of a packages label? - Answers Instruction, Construction, Nutrition,
and Reducing Cognitive Dissonance
What is the instruction component of the label? - Answers explains how the product is used
(Example: Harvard Business School found that Monopoly was so successful because it had
instructions that were easy to read )
What is the construction component of the label? - Answers what makes up the product
(Example: when Egyptian cotton is included in anything you know it is the best it can be)
What is the nutrition component of the label? - Answers if the product is good for you or not, this
What are the 5 stages of the Product Life Cycle? - Answers Introduction, Growth, Maturity,
Decline, and Extension
What is extension? - Answers when a brand continues on just when you think it's over
What is an example of a brand extension? - Answers The Volkswagen Beetle returning
What is the growth stage in the product life cycle? - Answers Focuses on price and promotion
changes along the product life cycle.
What are some questions asked in the growth phase of the product life cycle? - Answers How
are we going to advertise? How are we going to price it?
What is the maturity phase? - Answers When the product is sustained, but price and promotion
change along the way
What is the decline phase? - Answers When the product disappears and dissolves
What is involvement? - Answers the time and effort spent searching for a product
What are the categories of products? - Answers Convenience, Shopping, Specialty, and
Unsought
What is a convenience product? - Answers things that don't cost a lot of money or time and are
low risk. (example: candy bar from a gas station)
What is a shopping product? - Answers a product that you have to spend more time and money
with a little more risk (example: computer or phone)
What is a specialty product? - Answers product with a bigger risk on the product and it can cost
more (example: william sonoma cooking gear)
What is an unsought product? - Answers a type of product you don't think about needing, but all
of the sudden it is needed. Can be hard to shop for, so companies that present the clearest
message get the buyer (Example: Health Insurance)
What are the components that make up products? - Answers Packaging and warranty
What is product packaging? - Answers The way a product is packaged and what that portrays
about it
What is a warranty? - Answers statement explaining what the company will give if your product
break/malfunctions within a certain amount of time
What is the importance behind a warranty? - Answers it serves as a point of differentiation and
shows the company trusts their product
, What is the story about the creation of the warranty? - Answers Chrysler is struggling; several
years ago, they hired a whiz kid named Lee Iacoca, a charismatic leader with Ford who helped
design the Mustang. He leaves Ford and goes to Chrysler who had nothing. Lee saw the van that
Chrysler had and saw a segment of the market emerging that the van would play well in. He also
saw that they had this car called the "K" that was very old-fashioned and plain and there was a
segment out there that needed this car. Going through all the data, Lee realized that the working
class needed an inexpensive means of reliable transportation. They needed to get from point A
to B then from B to A consistently. The problem that Chrysler had was that their products were
not reliable, so Lee made sure that they were more reliable. How do you prove that something is
reliable? He came up with a warranty. Lee came up with the 10-year, 100,000-mile bumper-to-
bumper warranty. The warranty made Chrysler look like it was a better company.
What are the 3 objectives of branding? - Answers Identification, repeat sales, and introduction of
new products
What are the components of packaging? - Answers Contain the product, facilitate recycling,
prevent theft, and promote the product
What are the components of promoting the product? - Answers Color, Shape, Smell, Sound, and
the label
What is the color component of packaging? - Answers serves as a source identifier (Example:
Pepsi hating Coca-Cola's red)
What is the shape component of packaging? - Answers the shape the package is (examples:
Red Bull can shape, mints being in a tin because of altoids)
What is the smell component of packaging? - Answers How the product smells (Example: New
car smell can make you want a new car, smell of tiger stadium can remind you of college, nice
hotels identifying as smells)
What is the sound component of packaging? - Answers the audio logo, what you think of when
you hear the product sound. (Example: Bell sound on a Taco Bell Commercial)
What are the components of a packages label? - Answers Instruction, Construction, Nutrition,
and Reducing Cognitive Dissonance
What is the instruction component of the label? - Answers explains how the product is used
(Example: Harvard Business School found that Monopoly was so successful because it had
instructions that were easy to read )
What is the construction component of the label? - Answers what makes up the product
(Example: when Egyptian cotton is included in anything you know it is the best it can be)
What is the nutrition component of the label? - Answers if the product is good for you or not, this
