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MM51 Unit 2 Review

Total questions: 19

Worksheet time: 10mins

Name
Class
Date
1.
Why does a company need to know what stage of the product life cycle its products are in?
a)
To prevent imitators from entering the market
b)
To find new uses for the product
c)
To predict the length of the life cycle
d)
To adapt its marketing strategies
2.
Why might profits sometimes decline for the company that first introducted the product during the growth stage ofa product's life cycle?
a)
Because sales decline in the growth stage
b)
Because marketing strategies are adjusted
c)
Because competitors have entered the market
d)
Because production is more efficient
3.
Which of the following is a way that a business can extend the life cycle of an established product?
a)
promoting the product to current users
b)
finding new uses for the product
c)
restricting distribution
d)
attracting customers who are innovators
4.
Five years after a new product has been introduced, sales begin to level off because customers are purchasingthe competitor's brand. What strategy would be most appropriate to use in this situation?
a)
take the product off the market
b)
do nothing, fluctuations in sales are common
c)
modify or update the product to renew customer interest
d)
triple the advertising budget for the product
5.
Where would Coca Cola (original) likely be placed?
a)
Introduction
b)
Growth
c)
Maturity
d)
Decline
6.
Where would Iphone 4 likely be placed?
a)
Introduction
b)
Growth
c)
Maturity
d)
Decline
7.
The product life cycle shows the different stages that a product passes through and sales that can be expected at each stage
a)
True
b)
False
8.

Which is the product life cycle?

a)
b)
c)
d)
9.

In this stage:

•Low sales

•High cost per customer acquired

•Negative profits

•Innovators are targeted

•Little competition

a)

Product development

b)

Introduction

c)

Growth

d)

Maturity

e)

Decline

10.

In this stage:

•Rapidly rising sales

•Average cost per customer

•Rising profits

•Early adopters are targeted

•Growing competition

a)

Product development

b)

Introduction

c)

Growth

d)

Maturity

e)

Decline

11.

In this stage:

•Sales peak

•Low cost per customer

•High profits

•Middle majority are targeted

•Competition begins to decline

a)

Product development

b)

Introduction

c)

Growth

d)

Maturity

e)

Decline

12.

In this stage:

•Declining sales

•Low cost per customer

•Declining profits

•Laggards are targeted

•Declining competition

a)

Product development

b)

Introduction

c)

Growth

d)

Maturity

e)

Decline

13.

Why would a business use a broad product mix?

a)

To assure that the product lines are related

b)

To decrease legal liabilities

c)

To promote one-stop shopping

d)

To relate the products to the target market

14.

Why should a business continue to monitor an established product?

a)

To evaluate how a product might fit the firm's product mix

b)

To determine the acceptance of a product by a limited market

c)

To make sure that a marketing plan is firmly in place

d)

To make changes in order to extend a product's life cycle

15.

Why is the quality level of a product an important product or service management decision?

a)

It identifies a product's brand

b)

It reflects the image of the business

c)

It protects the consumer

d)

It refers to the way the product works

16.

Which is one way businesses use computer technology to obtain information to improve their product or service mix?

a)

By tracking visitors to their websites

b)

By compiling detailed databases

c)

By mailing questionnaires

d)

By preparing interactive software programs

17.

What activity is addressed in the product or service management function?

a)

Eliminating products that are slow sellers

b)

Focusing promotional activities on a new product's release

c)

Determining where products will be offered for sale

d)

Setting discounts to clear products from inventory

18.

A business is behaving unethically if its product's label contains what component?

a)

Recyclable materials

b)

Mandatory requirements

c)

Misleading information

d)

Nutritional values

19.

Which is a reason that a business would make changes to its products?

a)

To make room for other products

b)

To predict success of the changed products

c)

To spread risk over a wider area

d)

To keep up with changing consumer preferences