Question 1

In 2003, Planters introduced Planters peanuts coated in chocolate, a snack food from the company that was the first to sell prepackaged, single-serving bags of peanuts. With this new product, Planters used a _____ strategy.
A) trading down
B) product alteration
C) line extension
D) repositioning
E) product-mix contraction

Accepted Answer

Line extension strategy involves adding new flavors, sizes, or types of products to an existing product line to attract new customers or to encourage more usage from current customers. Planters introducing chocolate-coated peanuts is an example of adding a new variety to their existing product line of peanuts.

Question 2

When Fruit of the Loom, the manufacturer of men's and boy's underwear, introduced sweatshirts, turtlenecks, and shorts, it exemplified a:
A) change in strategic marketing strategy.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) strategy of managing on the rise.

Accepted Answer

The answer of When Fruit of the Loom, the manufacturer...

Question 3

When Giorgio Armani, the Italian designer, added a home décor division under the Armani brand, it was an example of:
A) change in strategic marketing strategy.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) strategy of managing on the rise.

Accepted Answer

The answer of When Giorgio Armani, the Italian designer, added...

Question 4

For years Lenox had a reputation as a manufacturer of fine china for dining. When the company began manufacturing crystal sculptures for the collector's market, it was an example of a:
A) change in strategic marketing tactics.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) strategy of managing on the rise.

Accepted Answer

The answer of For years Lenox had a reputation as...

Question 5

Often the strategy of altering an existing product:
A) is more risky than developing a new product.
B) is more expensive than developing a new product.
C) does not allow a company to engage in market segmentation.
D) prevents a company from positioning its products.
E) is more profitable than developing a new product.

Accepted Answer

Altering an existing product often involves less risk and cost than developing a new product from scratch, as the existing product already has a market presence and customer base. This strategy can also allow for market segmentation and product positioning by targeting different customer needs or preferences with variations of the product. Therefore, it can be more profitable due to lower development costs and leveraging existing brand equity.

Question 6

The demographic group referred to as baby boomers is a large group that is quickly approaching a time in their lives where they become increasingly concerned about hiding signs of their own age. In response to this desire to stay young looking, Jergens lotion has added alpha hydroxy to its lotion to smooth out tiny wrinkles. This addition of alpha hydroxy to Jergens lotion is an example of:
A) trading up.
B) product alteration.
C) product mix contraction.
D) repositioning.
E) trading down.

Accepted Answer

Adding alpha hydroxy to Jergens lotion to smooth out wrinkles is an example of product alteration, as it involves modifying an existing product to meet new consumer needs or preferences.

Question 7

Carnation Instant Breakfast is an enriched powder that when mixed with milk makes a healthy breakfast. The product has been offered in a box that is shaped more like a cereal box. A new packaging design has been created, which is cube-shaped. The new shape with make the package easier to store. The new packaging is an example of:
A) trading up.
B) product alteration.
C) product mix contraction.
D) repositioning.
E) trading down.

Accepted Answer

The new packaging design represents a change in the physical aspect of the product, which is considered a product alteration. This does not necessarily change the product's quality or positioning but alters its presentation or functionality.

Question 8

To indicate to its consumers that Special K cereal is as good a source of calcium as milk is, Kellogg's began packaging the cereal in milk cartons instead of the usual packaging we associate with cereal. This is an example of:
A) trading up.
B) product alteration.
C) product augmenting.
D) trading down
E) trading down.

Accepted Answer

This is an example of product alteration, where the product's packaging is changed to convey a new message or appeal to consumers, in this case, emphasizing the cereal's calcium content by using milk carton packaging.

Question 9

The addition of lotion to Kleenex tissues to make them more soothing is an example of:
A) trading down.
B) product alteration.
C) product augmenting.
D) repositioning.
E) trading down

Accepted Answer

The addition of lotion to Kleenex tissues to make them more soothing is an example of product alteration, as it involves modifying an existing product's features to improve it or make it more appealing.

Question 10

Campbell's used a _____ strategy when it added 15 percent more rice to its Southwest Style Chicken Vegetable soup.
A) trading up
B) product alteration
C) product augmenting
D) trickle-up
E) trading down

Accepted Answer

Adding more rice to its soup is an example of product alteration, as the company made a change to the existing product's composition or formula to enhance its appeal or functionality.

Question 11

Concern about infants' overexposure to sun encouraged Coppertone to introduce Coppertone Water BABIES, a specially formulated sun protector for babies. This is an example of:
A) trading up.
B) product alteration.
C) product augmenting.
D) repositioning.
E) trading down.

Accepted Answer

This is an example of product alteration because Coppertone introduced a new version of their product specifically designed to meet the needs of a different segment of their market (babies) by addressing concerns about sun exposure for infants.

Question 12

For the most part smokers are relegated to outside and uncomfortable areas in public because so many non-smokers are offended by cigarette smoke. In response to what was viewed as a consumer need, RJR Nabisco Holdings Corp spent $425 million developing a smokeless cigarette called Eclipse, and many more dollars promoting and distributing the product. The product was a flop, and RJR Nabisco was forced to implement a _____ strategy by withdrawing the product from the market.
A) trading down
B) produce alteration
C) diversification
D) repositioning
E) product-mix contraction

Accepted Answer

RJR Nabisco's decision to withdraw the Eclipse smokeless cigarette from the market is an example of a product-mix contraction strategy. This strategy involves reducing the number of products offered, typically due to poor sales, changing market conditions, or strategic realignment.

Question 13

In the 1970s, Gillette introduced The Hot One, a self-heating can of shaving cream, but stopped making it when it found little demand for the product beyond well-groomed campers. Gillette used a _____ strategy with The Hot One.
A) trading down
B) produce alteration
C) diversification
D) repositioning
E) product-mix contraction

Accepted Answer

Product-mix contraction is the process of reducing the number of products in a company's product line. Gillette used this strategy with The Hot One because it found little demand for the product beyond well-groomed campers.

Question 14

In 1990s, Gekkeikan introduced sake in self-heating cans to the Japanese market. By 2002, it was obvious that design flaws in the can had led to low sales and high production costs. Gekkeikan then used a _____ strategy and stopped manufacturing the product.
A) trading down
B) produce alteration
C) diversification
D) repositioning
E) product-mix contraction

Accepted Answer

Gekkeikan used a product-mix contraction strategy by reducing the number of products they offered, in this case, discontinuing the self-heating sake cans due to their design flaws, low sales, and high production costs.

Question 15

Which of the following is most likely the goal of a company that eliminates a product line?
A) to get rid of low- or no-profit products
B) to increase the depth of the product mix
C) to adapt strategies as necessary during the growth stage in the product life cycle
D) to engage in product differentiation
E) to enter new markets

Accepted Answer

Eliminating a product line is often a strategic decision to remove products that are not profitable or are underperforming. This action allows the company to focus resources on more profitable areas, streamline operations, and potentially increase overall profitability.

Question 16

_____ means adding a higher-priced, prestige product to a line to attract a higher-income market.
A) Trading up
B) Revamping
C) Product line augmentation
D) Repositioning
E) Trading down

Accepted Answer

Trading up involves adding a higher-priced, prestige product to a line to attract a higher-income market, enhancing the brand's prestige and attracting consumers willing to pay more for perceived higher quality or status.

Question 17

Trading up m
A) consumers stop patronizing lower-priced stores and start patronizing higher-priced, more exclusive shops.
B) serving the upper and upper-middle classes exclusively.
C) raising the price of every product in the product line.
D) consumers stop buying lower-priced products and buy higher-priced ones.
E) adding a higher-priced, prestige product to a line to attract a higher-income market.

Accepted Answer

Trading up means adding a higher-priced, prestige product to a line to attract a higher-income market.

Question 18

Which of the following is an example of trading up?
A) Trident introduces a chewing gum that replenishes the calcium in teeth.
B) Armstrong Flooring introduces a line of flooring based on designs from nature.
C) A prescription-only sinus medication runs an ad in Better Homes & Gardens magazine.
D) A car repair shop hires a mechanic who can work on Ferraris, Porsches, and other luxury sports cars.
E) A children's clothing store adds a line of inexpensive toddler sandals to its mix.

Accepted Answer

Trading up involves offering a product or service that is of higher quality or prestige than what was previously available. Hiring a mechanic skilled in luxury sports cars allows the car repair shop to offer higher-end services, appealing to owners of more expensive vehicles.

Question 19

Which of the following is an example of trading up?
A) Celestial Seasonings, a company known for its herbal teas, has introduced a caffeinated line of tea called Fast Lane.
B) Larry's Furniture Store has changed its name to Nouveau Style and started selling reproductions of . antique pieces from colonial America.
C) The Little Theater expanded its facilities so it now has space to offer dinner along with its show.
D) WPTY, a local radio station, added a lunchtime traffic report.
E) Gwen's House of Brides now rents tuxedos, too.

Accepted Answer

Trading up refers to a strategy where a company moves its product or service to a higher market segment, often by improving quality, adding features, or shifting to a more upscale or sophisticated brand image. In choice B, Larry's Furniture Store is moving to a higher market segment by selling reproductions of antique pieces from colonial America, which implies a shift to more upscale, higher-quality products.

Question 20

Trading down m
A) the process in which consumers stop buying overpriced products and become more price conscious.
B) serving the lower and lower-middle classes exclusively.
C) adding a lower-priced item to a line of products.
D) lowering the price of every product in the product line.
E) none of the above.

Accepted Answer

Trading down refers to adding a lower-priced item to a line of products to attract more price-sensitive customers.

Quiz 9: Product-Mix Strategies

In 2003, Planters introduced Planters peanuts coated in chocolate, a snack food from the company that was the first to sell prepackaged, single-serving bags of peanuts. With this new product, Planters used a _____ strategy.

When Fruit of the Loom, the manufacturer of men's and boy's underwear, introduced sweatshirts, turtlenecks, and shorts, it exemplified a:

When Giorgio Armani, the Italian designer, added a home décor division under the Armani brand, it was an example of:

For years Lenox had a reputation as a manufacturer of fine china for dining. When the company began manufacturing crystal sculptures for the collector's market, it was an example of a:

Often the strategy of altering an existing product:

To indicate to its consumers that Special K cereal is as good a source of calcium as milk is, Kellogg's began packaging the cereal in milk cartons instead of the usual packaging we associate with cereal. This is an example of:

The addition of lotion to Kleenex tissues to make them more soothing is an example of:

Campbell's used a _____ strategy when it added 15 percent more rice to its Southwest Style Chicken Vegetable soup.

Concern about infants' overexposure to sun encouraged Coppertone to introduce Coppertone Water BABIES, a specially formulated sun protector for babies. This is an example of:

In the 1970s, Gillette introduced The Hot One, a self-heating can of shaving cream, but stopped making it when it found little demand for the product beyond well-groomed campers. Gillette used a _____ strategy with The Hot One.

In 1990s, Gekkeikan introduced sake in self-heating cans to the Japanese market. By 2002, it was obvious that design flaws in the can had led to low sales and high production costs. Gekkeikan then used a _____ strategy and stopped manufacturing the product.

Which of the following is most likely the goal of a company that eliminates a product line?

_____ means adding a higher-priced, prestige product to a line to attract a higher-income market.

Trading up m

Which of the following is an example of trading up?

Which of the following is an example of trading up?

Trading down m