market evolution

1. As market growth slows during the maturity stage of market evolution, the market splits into finer segments and high ________ occurs.

a. market ideation

b. market consolidation

c. market fragmentation

d. market deflation

e. market escalation


2. Market fragmentation in the market evolution process is often followed by ________ caused by the emergence of a new attribute that has strong appeal.

a. a market consolidation

b. a market dissolution

c. a market expansion

d. a market abandonment

e. a market harvesting

111. “It’s not delivery, it’s DiGiorno!” This ad campaign helped DiGiorno’s pizza become the frozen pizza leader. Which of the following terms is most associated with the company’s promotional success strategy?

a. Price leader

b. Value relationships

c. Vertical integration

d. Superior quality control

e. Clever positioning

112. ________ may be based on virtually any type of attribute or benefit. For example, FedEx uses “guaranteed overnight delivery” and Nike uses “performance.”

a. Points-of-parity

b. Points-of-difference

c. Points of conflict

d. Points of defensibility

e. Points of service


113. Consumers might not consider a travel agency truly a travel agency unless it is able to make air and hotel reservations, provide advice about leisure packages, and offer various ticket payment and delivery options. These service elements are considered ________.

a. competitive points-of-difference

b. competitive points-of-parity

c. category points-of-difference

d. category points-of-parity

e. conceptual points-of-parity

114. As a marketing manager, which of the following would be the best purpose for your organization’s competitive points-of-parity?

a. To point out competitive points-of-difference

b. To emphasize competitive points-of-difference

c. To rationalize competitive points-of-difference

d. To globalize competitive points-of-difference

e. To negate competitive points-of-difference

115. If your task was to construct a positioning statement for a new product that your company was considering as an addition to your product portfolio, what would be the best first step for you to take?

a. State the product’s cost

b. State the product’s membership in a category

c. State who manufactured the product

d. State the image of the product

e. State who would distribute the product

116. Tums claims to have the most acid-reducing components of any antacid. In what way is the brand’s category membership being conveyed?

a. Comparing to exemplars

b. Relying on the product descriptor

c. Announcing category benefits

d. Focusing on reliability

e. Persuasion based on believability


117. A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following?

a. The soap is one-quarter cleansing cream.

b. Dove products include bar soaps and shampoos.

c. Dove soap helps users have softer skin.

d. The Dove brand is widely available.

e. None of the above.

118. Assume that you are in a position to develop your organization’s points-of-difference for an upcoming promotional campaign. Which of the following sets of consumer desirability criteria would best fit your promotional task?

a. Value, location, service

b. Loyalty, customization, status

c. Value, reliability, dependability

d. Relevance, distinctiveness, believability

e. Licensing opportunities, promotional protection, and believability

119. Equal sugar substitute became a category leader by differentiating itself on its authenticity as a product derived from sugar. This POD demonstrates ________ because target consumers found it to be unique and superior.

a. believability

b. relevance

c. feasibility

d. communicability

e. distinctiveness

120. A marketing manager asks a subordinate, “Can the favorability of the new brand association we just created in our recent ad campaign be reinforced and strengthened over time?” Which of the following delivery criteria used for choosing points-of-difference would be most appropriate to the question asked?

a. Relevance

b. Communicability

c. Sustainability

d. Feasibility

e. Comparisons

121. A ________ should follow the form: To (target group and need), our (brand) is (the concept) that (what the point-of-difference is or does).

a. feasibility statement

b. positioning statement

c. breakaway branding campaign

d. brand specification

e. category membership mechanism

122. Which of the following is NOT a negatively correlated attribute and benefit?

a. Efficacious versus mild

b. Varied versus simple

c. Powerful versus safe

d. Nutritious versus good tasting

e. Low price versus low quality

123. Your product’s profit curve is in the negative. Which of the following stages of the product life cycle is your product most likely in?

f. Introduction

g. Growth

h. Maturity

i. Decline

j. Abandonment

124. While looking a series of special-case product life cycles, you observe that one of the life cycles has had a rapid growth in sales resulting in a severe peak of the sales curve followed by a rapid decline. Which of the following product life-cycle curves is most likely represented by the above illustration?

a. Style life cycle

b. Fashion life cycle

c. Fad life cycle

d. Niche life cycle

e. Techno life cycle


125. The pioneer advantage does not always ensure success in the marketplace. All of the following are reasons cited by the text that a market pioneer’s product might not be successful EXCEPT ________.

a. the new product was too crude

b. the new product was improperly positioned

c. the new product appeared when there was strong demand

d. the product-development costs exhausted the innovator’s resources

e. managerial incompetence

126. While Wikipedia has ridden its pioneer advantage to become as familiar as eBay and Google, Citizendium believes it can overtake Wikipedia as the most popular online collaborative Internet encyclopedia because its ________ includes significantly reduced R&D time.

a. product life cycle

b. leverageable advantage

c. core competency

d. channel differentiation

e. second mover advantag

127. Markets often need modification to be able to grow and flourish. When AARP began to recruit members that were 50–55 years of age instead of pursuing their normal target market of 65+ seniors, it was using a market modification strategy called ________.

a. converting nonusers

b. entering new market segments

c. winning competitors’ customers

d. value vision

e. age discounting

128. A firm in the growth stage faces a trade-off between ________ and ________.

a. high market share; high current profit

b. high valuation; high current profit

c. high growth potential; high market share

d. high current profit; high growth potential

e. high market share; high valuation


129. As an entrepreneur you have decided to launch two products simultaneously to capture two different parts of the market. You are employing a(n) ________.

a. single-niche strategy

b. multiple-niche strategy

c. standardization strategy

d. mass-market strategy

e. adaptive strategy

130. The energy-bar market created by PowerBar ultimately split into a variety of subcategories, including those directed at specific segments and some possessing specific attributes. This is an example of ________.

a. market consolidation

b. consumer determinism

c. breakaway marketing

d. market fragmentation

e. channel differentiation