MARKETING MANAGEMENT

MCQ

1. Labeling, packaging are associated with:

Price mix
Product mix
Place mix
Promotion mix

2.______________ set(s) the floor for the price that the company can charge for its product.

Supply
Demand
Costs
Nonprofit factors

3. Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.

Market-level pricing
Market-competitive pricing
Market-skimming pricing
Market-price lining

4. In the maturity phase of the PLC, a marketing manager should consider:

dropping the product and moving on to the next product winner.

modifying the market, product, and marketing mix.
expanding R & D.
pricing to penetrate the market.

5. The stage of the PLC characterized by overcapacity, greater competition, and the eventual
elimination of weaker competitors is called the:

Decline stage.
Introduction stage.
Growth stage.
Maturity stage.
 6. Which of the product is in the decline stage of PLC?

HD TVs
Tata Salt
I- phone
Music CDs

7. Which of the following is not a type of decision usually made during the product development
stage?

Branding
Product positioning
Packaging
Product screening

8. All of the following are different ways a firm can obtain new products, except which one?

By acquiring a whole new company

A firm can obtain a new product through patents
A firm can obtain a new product by licensing someone else's new product
A firm can obtain a new product by using the R&D department of other firms in the
same industry.

9. Original products, product improvements, product modifications, and new brands that a firm
develops through its own research and development efforts are called:

new products.
concept products.
altered products.
supplemental products.

10. To create successful new products, a company must understand consumers, markets, &
competitors and:
develop a great advertising campaign.
have a strong Web site to push the product.
adopt a push rather than pull promotional concept.
develop products that deliver superior value to consumers.
11. ________________ is screening new-product ideas in order to spot good ideas and
Drop poor ones as soon as possible.
Idea generation
Concept development and testing
Idea screening
Brainstorming

12. A ___________________ is a detailed version of the idea stated in meaningful

Consumer terms.
Product idea
Product image
Product concept
Product feature

13. If a company wishes to test its positioning strategy, advertising, distribution, pricing,
branding and packaging, and budget levels, it can do so during which of the following stages of
the new-product development process?

Commercialization
Test marketing
Product development
Concept testing

14. Sterilization packaging systems have an impact on:

Instruments
Healthcare acquired infection
Healthcare costs
All of the above

15. All of the following are accurate descriptions of reasons why new products fail, except which
one?
Although the market size was correctly estimated, the product idea itself was not good.
The actual product was not designed as well as it should have been.
The new product was priced too high.
The new product was advertised poorly.

16. Which of the following is NOT a price adjustment strategy?

Segmented pricing
Promotional pricing
 Free samples
Geographical pricing

17. Differentiation in pricing for various geographical customer

Price skimming
Psychological pricing
Pricing variations
Geographical pricing

18. When Pepsi came out with Pepsi Blue and priced it at half price to attract buyers they were
using, Pepsi was using ________.

Market-skimming pricing
Market-penetration pricing
New-product pricing
Discount pricing
19. _____ is a period of market acceptance and increasing profits.

Product development
Maturity
Growth
Introduction

20. _____ begins when the company finds and develops a new-product idea. During product
development, sales are zero and the company's investment costs mount.

Introduction
Growth
Maturity
Product development

21. Technological advances, shifts in consumer tastes, and increased competition, all of which
reduce demand for a product, are typical of which stage in the PLC?

Decline stage
Introduction stage
Growth stage
Maturity stage

22. A penetration pricing strategy will set an initially high price to cream off as much revenue
as possible from the early purchasers.
True
False

23. Original products, product improvements, product modifications, and new brands that a firm
develops through its own research and development efforts are called:
New products.
Concept products.
Altered products.
Supplemental products.

24. As a product reaches its decline stage of the PLC, management may decide to __________
the product, which means reducing various costs and hoping that sales

hold up.
drop
harvest
cultivate

25. The stage in the product life cycle that focuses on using a cost-plus formula and creating
product awareness and trial is the:

decline stage.
introduction stage.
growth stage.
maturity stage.

26. The stage in the product life cycle where the strategic focus is on market penetration and
building intensive distribution is the:

decline stage.
introduction stage.
growth stage.
maturity stage

27. One of the challenges presented by the product life cycle for a product is that of new-product
development.

True

False
28. One study found that the number one success factor for new-product introduction is a unique,
superior product.

True

False

29. Idea screening is generally recognized to be the first step in the new-product development
process.

True

False

30. In terms of the PLC, the growth stage is a period of rapid market acceptance and increasing
profits.

True

False

31. If a company were to change characteristics of the product such as quality, features,or style, it
would most likely do this in the maturity phase of the product life cycle.

True

False

32. Introducing the new product into the market takes place in which stage of the new product
development process?

commercialization
test marketing
marketing strategy
product development

33. Looking at the sales history of similar products and surveying market opinion are tools used at
which stage in the new-product development process?

concept development and testing

commercialization
business analysis
marketing strategy development
34. Presenting new-product ideas to consumers in symbolic or physical ways to measure their
reactions occurs during which of the following stages?

idea generation
concept testing
marketing strategy
screening

35. A ___________________ is a detailed version of the idea stated in meaningful consumer

terms.

product idea
product image
product concept
product feature

36. One reason that idea screening is a critical stage in the new-product development process is
that:

Product-development costs rise greatly in later stages and the company only wants those
products that can succeed.
Competitors can quickly steal ideas so the company wants only those ideas that can be
protected with patents.
International competition and markets demand that all ideas be culturally sensitive.
The Federal government carefully monitors each companys idea screening process to make
sure no national security matters are at stake.

37. The systematic search for new-product ideas is characteristic of which stage in the new-
product development process?

idea screening
concept development and testing
idea generation
business analysis

38. To achieve the marketing objectives for the brand and satisfy the desires of consumers, the
________ and functional components of packaging must be chosen correctly.

characters
logo
 aesthetics
brand name

39. A label performs several functions for a product. These include all of the following EXCEPT
________.

grades
promotes
describes
classifies

40. To be branded, physical products must be differentiated.

True

False

41. Packaging is all the activities of designing and producing the container for a product.

True

False

42. Packaging has been called the fifth P by marketers because it can be an element of product
strategy.

True

False

43. Labels can identify the product and must contain legal statements that under various Federal
laws cannot be misleading, false, or deceptive.

True

False

44. _____ involves designing and producing the container or wrapper for a product.
Packaging
Product line
Service
Branding

45. Like New Products wants to improve its packaging after reading customer responses to its
customer opinion poll. Which is not a function of packaging?
Its purpose is to contain and protect the product.
It contains the brand mark.
It protects children.
It determines product quality.

46. At the very least, the _____ identifies the product or brand. It might also describe several
things about the product.

line extension
social marketing
label
specialty product

47. Some analysts see _____ as the major enduring asset of a company, outlasting the
companys specific products and facilities.

brands
convenience products
specialty products
unsought products

48. Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna even
though the Kroger tuna costs Rs.0.15 less per can. This is known as brand _____.

extension
equity
specialty
service

49. Branding assists buyers in numerous ways. Which of the following is not a direct
consumer benefit derived from branding?

Brand names raise awareness and increase consumer interest.

Brand names increase shopper efficiency.
Brand names convey product quality.
Branding enables suppliers to attract loyal and profitable set of customers.

50. What elements constitute a brand?

 Name, design, style, words or symbols, singly or collectively that distinguish one
product from another.
Design, style, or symbols, singly or collectively that distinguish one product from another.
Name, design, style, words or symbols that distinguish one product from another.
Name, words or symbols, singly or collectively that distinguish one product from another.

51. At the introduction stage of the Product Life Cycle (PLC), which of the following are the
marketers two main priorities?

Launch planning and creating shelf space.

Generating awareness and stimulating responses.
Launch planning and generating awareness.
Creating shelf space and generating awareness.

52. In the growth stage of a product life cycle which of the following statements are applicable?
1) There is a rapid increase in sales.
2) Effects of repeat purchasing are seen.
3) Increased competitor activity is found.
4) Profits begin to rise.
5) Good product management is required.

Options
1,2,3,4
1,3,4,5,
1,2,3,4,5,
1,2,3,5,

53. Which of the following is NOT a method of idea generation?

Morphological analysis.
Synthetics.
Synetics.

54. Launching a product in a small part of the market is called:

Competitive response.
Competitive analysis.
Test marketing
55. Starting with one or two areas and then adding new regions to the distribution area is called:

Rolling launch.
Sprinkler strategy.
Test marketing.

56. Which of the following is not a stage in the product life cycle?

Introduction.
Withdrawal.
Growth.
Maturity.

57. Of the following, which statement(s) would not support a market-skimming policy for a new
product?

The product's quality and image support their higher prices

Enough buyers want the products at that price
Competitors are not able to undercut the high price
Competitors can enter the market easily

58. Choosing a price based upon its short-term effect on current profit, cash flow, or return on
investment reflects which of the following pricing objectives?

current profit maximization

product quality leadership
market share leadership
survival

59. Pricing to cover variable costs and some fixed costs, as in the case of some automobile
distributorships that sell below total costs, is typical of which of the following pricing objectives?

current profit maximization

product quality leadership
market share leadership
survival

60. If a company believes that the company with the largest market share will enjoy the lowest
costs and highest long-run profits, that company will probably choose which of the following
pricing objectives as their primary course of action?
 current profit maximization
product quality leadership
market share leadership
survival

61. ________ pricing is the approach of setting a low initial price in order to attract a large
number of buyers quickly and win a large market share.

Market-skimming
Value-based
Market-penetration
Leader

62. Freight-absorption pricing is used for ________ and ________.

Services; installations
Market penetration; holding on to increasingly competitive markets
Market penetration; higher profit margins
holding on to increasingly competitive markets; higher profit margins

63. PoolPak produces climate-control systems for large swimming pools. The company's
customers are more concerned about service support for maintaining a system than its initial
price. PoolPak may use this knowledge to become more competitive through ________.

Value pricing
Target costing
Cost-plus pricing
Skimming pricing

64. Which of the following is not a price adjustment strategy?

Seasonal pricing
segmented pricing
Free samples
Geographical pricing

65. Which of the following statements about break-even analysis is true?

It is a technique marketers use to examine the relationship between supply and demand
It is a technique used to calculate fixed costs
It is calculated using variable costs, the unit price, and fixed costs
It determines the amount of retained earnings a company will have during an accounting period

66. Big Mike's Health Food Store sells nutritional energy-producing foods. The price of the
products sold varies according to individual customer accounts and situations. For example,
long-time customers receive discounts. This strategy is an example of ________.

Cost-plus pricing
Penetration pricing
Dynamic pricing
Everyday low pricing

67. Which of the following is not an effective action that a company can take to combat a
competitor's price cut on a product?

Launch a low-price "fighter brand"

Improve quality and increase price
Raise perceived value
Improve quality and decrease price

68. Magic Box Company wants to provide better customer service while trimming distribution
costs through teamwork, both inside the company and among all the marketing channel
organizations. Magic Box is thinking of ________.

Disintermediation
Integrated logistics management
Customer relationship management
Vendor-managed inventory

69. Company building its pricing strategy around the experience curve would be most likely to
________.

Engage in break-even pricing

Engage in value-added pricing
Price its products high
Price its products low

70. Low-interest financing and longer warranties are both examples of ________.

Allowances
Promotional pricing
Discounts
Segmented pricing

71. Typically producers who use captive-product pricing set the price of the main product
________ and set ________ on the supplies necessary to use the product.

High; low markups

High; high markups
Low; low markups
Low; high markups

72. A car maker's strategy of advertising a basic vehicle model with few conveniences and
comforts at a low price to entice buyers and then convincing customers to buy higher-priced
models with more amenities is an example of which of the following?

Captive product pricing

Optional product pricing
Product line pricing
Segmented pricing

73. While costs set the lower limit of prices, __________and__________ set the upper limit.

Price and value

Interest rates and inflation
Market and demand
Supply and demand

74. What is value-based pricing?

Companies base their prices on buyers' perceptions of value, not their own costs
Offering just the right combination of quality and good service at a fair price
Companies set prices to make a target profit and to get some value for their production and
marketing efforts
Companies set prices to break-even on production and marketing costs

75. Price is a major factor affecting buyer choice that goes by many names, such as __________.

Assessments, commissions, dues and fees

 Rent, salaries, tuition and wages
Honoraria, interest, income taxes and premiums
All of the above

76. Which of the following is not one of the general pricing approaches?

Competition-based
Cost-based
Relationship pricing
Penetration pricing
Value-based

77. If an abattoir sold offal to a pet food manufacturer and hence reduced the costs of the final
price of the meat to consumers, this would be an example of ________ pricing strategy.

Bundle
By-product
Optional
Captive

78. Pricing products that must be used together with a main product is called ________ product
pricing.

By-product
Optional
Bundle
Captive

79. Price elasticity of demand means __________.

How much demand will change in response to a price change?

The higher the price, the lower the demand
That demand changes greatly with a small increase in price
That demand hardly changes with a small increase in price

80. Which of the following is not one of the product mix and service mix pricing strategies?
Bundle
By-product
Product line
Complementary
82. ______________ costs do not vary with production levels or sales levels.

Total
Variable
Fixed
All of the above
None of the above

83. The objective of price can be:

Profit
Market share
Cash Flow
All the above
None of the above

82. Mark up pricing is a pricing _________ & geographical pricing is a ____________.

Method, strategy
Strategy, method
Process, policy
Policy, process
None of above

83. The three layers of packaging are:

Primary, Secondary & tertiary packaging

Primary, Secondary & shipping packaging
Shipping, inner & outer packaging
None of above

84. Sales are declining, profits are also declining & competition is increasing. These indicate
that the product may be in:

Introduction stage
Decline stage
Growth stage
Maturity stage
All of above
85. The term brand equity refers to:

The value attached to the brand

The financial value of a company's brand
It's level of popularity
All of above

86. Companies can create brand equity for their products by making them ______________.

Memorable,
Easily recognizable
Superior in quality
Reliability
All of above

87. A brand name is one of the elements of the:

Discounted product
Core benefit
Augmented product
Actual product

88. Identify the commercialization decision which includes decisions regarding locality, region,
nationally or even internationally launching the product.

Why to launch the product?

How to launch the product?
Where to launch the product?
When to launch the product?

89. Which of the following is the leak-proof packaging that provides additional protection for
the primary container?

Primary packaging
Secondary packaging
Transport packaging
Decorative
90. Gift baskets are the example of which one of the following types of packaging?

Decorative
Secondary
Shipping
Primary

91. The label on a pack of frozen peas says, 'packed within an hour of picking'. These words are
used:
To promote the product
To satisfy legal requirements
To provide information
To fulfill ethical requirement

92. Packaging used for the ice creams is an example of which of the following?

Decorative packaging
Transport packaging
Secondary packaging
Primary packaging

93. Which of the following is a name, term, sign, symbol, design, or a combination of these, that
identifies the product or service?

Label
Co-brand
Brand
Product

94. The concept of price is central to:

Administration
Management
Macroeconomics
Microeconomics

95. Which of the following marketing mix element generates revenue?

Promotion
 Price
Place
Product

96. ABC Company priced the product as of Rs. 19.99 instead of Rs.20. Which of the following
pricing techniques is ABC Company using?

Dodging pricing
Deceptive pricing
Premium pricing
Psychological pricing

97. To pay premium price for the product customers require:

Allowance
Flawless performance
Discounts
High promotion,

98. Which of the following is NOT an objective of discounts?

Reward valuable customers

Reward competitors
Move out-of-date stock
Increase short-term sales

99. 3/10 net 30 is an example of which of the following?

Seasonal discount
Trade discount
Quantity discount
Cash discount

100. A company is providing warehousing facility to its channel members. The company is
using which of the following?

Seasonal discount
Trade discount
Quantity discount
Cash discount

101. To attract customers into stores, the store advertises its milk at a price less than cost, hoping
that customers will purchase other groceries as well. Milk is acting as which of the following?

Premium item
On- sale item
Discounted item
Loss leader

102. Many companies try to set a price that will maximize current profit. This strategy assumes
that company has knowledge of its:

Cost and production function

Revenue and cost function
Demand and market function
Demand and cost function

103. Which one of the following 4Ps of marketing mix involves in decisions regarding list
prices, discounts, allowances and payment periods or credit terms?

Product
Price
Place
Promotion

104. Identify the stage of product life cycle in which sales are at peak.

Introduction
Growth
Maturity
Decline

105. Which of the followings are considered defensive in nature?

Maturity and growth stage

Maturity and decline stage
Introduction and maturity stage
Introduction and growth stage
106. Standard Cable cut back advertising expenditures to minimum level and reduced the
number of channel members for its industrial cable product. These actions are indicative of a
product in which of the following stage of its life cycle?

Introduction
Growth
Maturity
Decline

107. Highest percentage of ideas for new products originates with/from which of the following
sources?
Top management
Customers
Competitors
Employees

108. Which of the following are the people who purchase new products almost as soon as the
products reach the market?

Innovators
Late majority
Early majority
Late adopters

109. Which of the following is NOT one of the stages that customers go through in the process
of adopting a new product?

Desire
Awareness
Evaluation
Interest

110. Using one brand name for several related products is known as which of the following?

Family branding
Group branding
Combination branding
Premium branding

111. Which of the following price is quoted to a potential buyer, usually in written form?
 Wholesale price
Market price
List price
Retail price

112. Mr. A, marketer of XYZ Co. is selling his ice-cream in the market at Rs.20, 20% more than
his competitors price. Still his sales are increasing. Now his aim is to maintain same pricing.
He enjoys which type of leadership?

Promotion leadership
Price leadership
Cost leadership
Product leadership

113. Market-penetration pricing will likely to be used most in selling which of the following
items?

Specialty
Convenience
Unsought
Pharmaceuticals

114. Customer cost will be considered as which of the following Ps of marketing mix?

Product
Price
Place
Promotion

115. Suppose Nestle wants to expand its line of food products. The managers conduct surveys
from customers to determine which food items would appeal to customers. Nestle is currently in
which of the following phase of new product development?

Idea generation
Idea screening
Test marketing
Business analysis

116. Which of the following stage of product life cycle is most expensive?
 Introduction
Growth
Maturity
Decline

117. All of the following are true about price EXCEPT:

Price is independent of the other elements of the marketing mix

Price is the monetary value of a product
Price is most flexible tool in the marketing mix
Price is marketing mix element which produces revenue

118. Which of the following is price reduction offered when an order is placed in slack/drooping
period?
Cash discount
Trade discount
Quantity discount
Seasonal discount

119. Surf Excel was named to take the benefit of the existing brand value of Surf. This strategy
can be classified as _______________ strategy.

Brand growth
Brand extension
Branding
Brand level

120. Though Pizza Huts are located in posh, air- conditioning premises, they continue to call
themselves as Pizza Huts. This is to take advantage of

Local sentiment of wanting to eat in huts

Brand value
Brand recognition
Brand extension

121. A ________ is an elaborated version of the idea expressed in consumer terms.

test brand
product concept
product idea
new idea

122. Gillette Venus Embrace can best be described as ________, rather than either a
repositioning or a new-to-the-world product.

Improvements and revisions of existing products

new product lines
additions to existing product lines
cost reductions
product adaptations

123. In _____, consumers who initially try the product at no cost are reoffered the product, or a
competitors' product, at slightly reduced prices.

simulated test marketing

commercialization
sales-wave research
controlled test marketing

124. ________________ calls for finding 30 to 40 qualified shoppers and questioning them
about brand familiarity and preferences in a specific product category.

Sales-wave research
Focus group research
Controlled test marketing
Simulated test marketing

125. The ultimate way to test a new consumer product is to put it into full-blown ___________.

test markets
screening
sales-wave research
controlled test marketing

126. Your firm has chosen a few representative cities, and the sales force tries to sell the trade on
carrying the product and giving it good shelf exposure. The company puts on a full advertising
and promotion campaign. Total costs exceed Rs.1 million. Your firm has decided to conduct a
___________________.
business analysis.
commercialization.
test market
controlled test market.

127. NPD stands for:

New Product Department.

National Production Division.
New Product Development.

128. Providing a description of a product and its attributes and inviting comment from
consumers is called:

Attribute testing.
Market testing
Concept testing.

129. What are the two ways that a company can obtain new products?

new-product development and acquisition

market mix modification and research and development
internal development and merger
line extension and brand management
service development and product extension

130. Which of the following is not a potential cause of the failure of a new product?

an incorrectly positioned product

an underestimated market size
ineffective advertising
higher than anticipated costs of product development
a poorly designed product

131. The creation of a successful new product depends on a company's understanding of its
________ and its ability to deliver ________ to customers.
product life cycle, legal responsibilities, and social responsibilities; innovations
competitors, distributors, and employees; new styles
product, marketing mix, and marketing strategy; functional features
customers, brands, products; product images
customers, competitors, and markets; superior value

132. Executives, manufacturing employees, and salespeople are all examples of ________.

core members of innovation management systems

internal sources for new-product ideas
research and development team members
external sources for new-product ideas

133. Your firm wants to use external sources for new product ideas. After consulting with a
friend you learn that all of the following are common external sources except ________.

competitors
suppliers
trade shows and magazines
the firm's executives
customers

134. ABC has just brainstormed a large number of ideas for adding new products and services
after visiting several buying fairs. The owners will begin the first idea-reducing stage, called
________ , to arrive at a realistic number to adopt.

idea generation
concept development
product concept
idea screening

135. In the concept testing stage of new-product development, a product concept in ________
form is presented to groups of target consumers.

final
commercial
prototype
physical or symbolic
market-tested
136. After concept testing, a firm would engage in which stage in developing and marketing a
new product?

marketing strategy development

idea screening
product development
test marketing
business analysis

137. During which stage of new-product development is management most likely to estimate
minimum and maximum sales to assess the range of risk in launching a new product?

marketing strategy development

business analysis
test marketing
concept testing

138. In the ________ stage of new-product development, products often undergo rigorous tests
to make sure that they perform safely and effectively or that consumers will find value in them.

concept development and testing

product development
business analysis
idea generation
marketing mix

139. Under what circumstances might it be wise for a company to do little or no test marketing?

When management is not sure of the marketing program.

When the costs of developing and introducing the product are low.
When the product has no substitutes and is new in its category.
When management is not sure of the product.

140. The major purpose of test marketing is to provide management with the information needed
to make a final decision about ________.
whether to launch the new product
which market to compete in
how to develop a market strategy
how long to compete in the market

141. Which of the following costs is most likely associated with the commercialization stage of
new-product development?

paying groups of target consumers for product feedback

developing a prototype of the product
identifying target markets
building or renting a manufacturing facility
142. Which of the following is necessary for successful new-product development?

a market pioneer mindset and a holistic approach

a customer-centered, team-based, systematic approach
an innovation management system and sequential product development
a team-based, innovation-management approach
a holistic and sequential product development approach

143. Increasing profits will most likely occur at which stage of the PLC?

Introduction
Growth
Maturity
Decline

145. Which of the following cannot be described by the PLC concept?

product form
style
product image
brand

146. The PLC concept can be applied by marketers as a useful framework for describing how
________.

Product ideas are developed

Products and markets work
To develop marketing strategies
Concept testing is conducted

147. In the ________ stage, the firm faces a trade-off between high market share and high
current profit.

maturity
Introduction
Growth
Decline

148. In which stage of the PLC will promotional expenditures be high in an attempt to react to
increasing competition?

decline
maturity
Introduction
Growth

149.. Which stage in the PLC normally lasts longer and poses strong challenges to the marketing
managers?
decline
maturity
Introduction
Growth

150. Most products in the marketplace are in the ________ stage of the product life cycle.

maturity
decline
Introduction
Growth

151. Sales decline in the decline stage of the PLC because of technological advances, increased
competition, and ________.

shifts in the economy

shifts in consumer tastes and preferences
new market pioneers
shifts in unemployment
marketing mix modifications

152. A manufacturer with a product in the decline stage of the product life cycle might decide to
________ if it has reason to hope that competitors will leave the industry.

harvest the product

maintain the product without change
drop the product
search for replacements

153. Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless

and trendy, is in the ________ stage of the PLC.

Growth
Introduction
Maturity
Decline

154. Schmidt Steel Corporation lacks the confidence, capital, and capacity to launch its new
steel product into full national or international distribution. Even though test market results look
promising, what will be management's next step?

seek the help of a nationally known consultant

retest the product in additional markets
secure a loan to provide confidence, capital, and capacity
develop a prototype
develop a planned market rollout over time

155. A company getting ready to launch a new product must make several decisions. However,
the company must first decide on _____.

whether to launch the product in a single location

whether to launch the product in a region
whether to launch the product into full national or international distribution
timing of the new product introduction
156. Marketers need to position their brands clearly in target customers minds. The strongest
brands go beyond attributes or benefit positioning. On which of the following basis the products
are positioned?

Desirable benefit
Good packaging
Strong beliefs and values
Customer image

157. The purpose of idea generation is to create a _____ of ideas. The purpose of succeeding
stages is to _____ that number.
Small number; reduce
Small number; increase
Large number; increase
Large number; reduce

158. During which phases of the product life cycle are costs thought to be low on a per customer
basis?

Maturity and Decline.

Growth and Maturity.
Product Development and Introduction.
Introduction and Growth.

159. During which stage of the product life cycle does the company attempt to maximize market
share?

Introduction
Decline
Growth
Maturity

160. During which stage of the product life cycle does a company seek to build selective
distribution?

Introduction
Decline
Growth
Maturity