Chapter 8 and 9

Question 1

in the case of individual sellers facing price competition, demand might be fairly ______

Answer 1

elastic

Question 2

the total cost of a(n) _____ item is considered a business expense in the year it’s purchased.

Answer 2

“expense”

Question 3

a product that can be used and depreciated over a long period is called a(n) ____ item.

Answer 3

capital

Question 4

the difference between consumer products and business products is ________ demand.

Answer 4

derived

Question 5

what are the consumer product classes based on?

Answer 5

the way people think about products.

Question 6

Because a company must buy the supplies it needs in order to produce its products, the industry demand for business products I considered fairly ________.

Answer 6

inelastic (insensitive to changes in price or income.)

Question 7

What are the names of consumer product classes?

Answer 7

Convenience, unsought, specialty, and shopping.

Question 8

in the case of individual sellers facing price competition, demand might be fairly _________.

Answer 8

elastic (goods that are elastic see their demand respond rapidly to changes in factors like price or supply.)

Question 9

New-product innovations go through a cycle of growth and _______, and marketing strategy typically evolves over that cycle.

Answer 9

“decline”

Question 10

the four stages that new-product ideas go through are known as ______.

Answer 10

the product life cycle

Question 11

in order what are the four stages of a product life cycle?

Answer 11

market introduction, market growth, market maturity, sales decline.

Question 12

the following occurs in the market growth stage of the product life cycle..

Answer 12

product variety increases, innovators profit, sales grow fast, new competitors enter.

Question 13

What two ideas occur in the market maturity stage of the product life cycle?

Answer 13

Industry profits decline and competition gets tougher.

Question 14

True or False: Industry profits begin to increase toward the end of the market growth stage.

Answer 14

False; recall that profits begin to decrease toward the end of the market growth stage due to competitors entering the market.

Question 15

Product life cycle patterns apply to the sales of a given product idea in a(n) _______.

Answer 15

specific product-market

Question 16

What ideas occur in the sales decline stage of a product life cycle?

Answer 16

new products replace old, price competition becomes vigorous, and strong brands can make profits.

Question 17

all of the following that occur in the market growth stage of the product life cycle are….

Answer 17

innovators profit, new competitors enter, sales grow fast, product variety increases.

Question 18

What two ideas occur in the market maturity stage of the product life cycle?

Answer 18

industry profits decline and competition gets tougher.

Question 19

a product idea can be in a different _______ in different markets.

Answer 19

life-cycle stage

Question 20

True or False: The sales and profits of an individual brand always follow the product life-cycle pattern.

Answer 20

False: Reason: The Sales and profits of an individual brand may not, and often do not, follow the product life-cycle pattern.

Question 21

In general, product life cycles, as a whole, are _________.

Answer 21

getting shorter

Question 22

What market situation is typical of the market growth stage of the product life cycle?

Answer 22

Monopolistic competition

Question 23

what characters help a new product move quickly through the early stages of the product life cycle?

Answer 23

comparative advantage, ease of use, and matches values of target customers.

Question 24

a product idea can be in a different _______ in different markets.

Answer 24

life-cycle stage

Question 25

True or False: Marketing managers should focus on informing customers about their brand during the market growth stage of the product life cycle.

Answer 25

False: During this stage, marketing managers should focus on persuading customers rather than informing them because the customers are already aware of the product.

Question 26

Products influenced by fashion typically have _______ life cycles.

Answer 26

short

Question 27

Competitive advantage is especially important in _______ product-markets.

Answer 27

mature

Question 28

A product idea that appeals to only a small group of enthusiastic consumers for a short period of time is known as a _______.

Answer 28

fad

Question 29

what are the choices that should impact marketing strategy planning;

Answer 29

how fast the product is moving to the next stage and where a product is in its life-cycle stage.

Question 30

Because introducing a new product is expensive, a marketing manager may try to ________ the market-that is, charge a relatively high price to help pay for the introductory costs.

Answer 30

skim

Question 31

What are some ideas that can provide a firm with a competitive advantage as a market moves into the market maturity stage?

Answer 31

lower production costs, a better product, successful promotion strategies.

Question 32

A phase-out strategy should be implanted ________.

Answer 32

gradually; due to the ongoing costs of some marketing strategies, losses may happen when ending a plan too quickly.

Question 33

the idea that competitive advantage is especially important in _______ product-markets.

Answer 33

mature

Question 34

the ideas that a marketing manager must consider when introducing a new product in the market introduction stage are…

Answer 34

how to promote the product, which distribution channels to select, the cost of product development.