Question 1

Major North American car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit.Car manufacturers are using which of the following market modification strategies?

Accepted Answer

The strategy of offering buying incentives to newly graduated college students is an example of finding new users, as it targets a new demographic that traditionally has little or no credit.

Question 2

An aging baby boomer population has led to increased interest in developing and marketing products to satisfy the need of this potentially large market.As a result moisturizing creams like Oil of Olay are now positioned as "age-defying" creams.This is an example of which of the four factors that may trigger a repositioning action?

Accepted Answer

Catching a rising trend - the rising trend of an aging baby boomer population has led to a potential market for "age-defying" products, prompting companies like Oil of Olay to reposition their moisturizing creams as such.

Question 3

Snickers candy bar was repositioned from a candy bar to a snack food through commercials that showed the busy people satisfying their hunger with a Snickers bar.Mars,Inc.,used this strategy with its Snickers bar to:

Accepted Answer

Repositioning a product from a candy bar to a snack food indicates a shift in the target market. Mars, Inc. wanted to reach a new market by positioning Snickers as a snack food that caters to busy people who need a quick and satisfying snack to curb their hunger.

Question 4

Which of the following product life cycle management strategies requires a change in the physical product?

Accepted Answer

Changing the value offered requires a change in the physical product or the benefits it provides to consumers. The other strategies mentioned (increasing use, creating new use situations, finding new users) do not necessarily require a change in the physical product.

Question 5

Pretzels were first introduced as a salty snack.Later the product was repositioned as a low-fat snack to:

Accepted Answer

The correct answer is C because the product was repositioned as a low-fat snack to catch a rising trend.

Question 6

An established shoe company decided to refocus their shoes towards seniors who wanted a comfortable everyday shoe,as their current market was very competitive.This shoe company engaged in:

Accepted Answer

The shoe company engaged in product repositioning, as they shifted their target market towards seniors who wanted a comfortable everyday shoe.

Question 7

Harry & David is a catalogue retailer.At its inception,the company sold fruit baskets and popularized the "Fruit of the Month" concept.Since then the company has abandoned this restrictive definition of itself,expanded its product mix,and used its promotion to explain that it is the source of the perfect gift for every occasion.Harry & David used a _____ strategy.

Accepted Answer

Harry & David's change in product mix and promotion to no longer be restricted to selling fruit baskets and "Fruit of the Month" subscriptions aligns with a repositioning strategy, as they are redefining their brand and target audience. A reinvention strategy would entail a more drastic overhaul and potentially a new name or image, while reconfiguration and realignment strategies refer more specifically to organizational changes rather than branding and marketing changes.

Question 8

When Coca-Cola promoted Coke as a morning beverage when you didn't want coffee,it was using:

Accepted Answer

The answer of When Coca-Cola promoted Coke as a morning...

Question 9

Mass merchandisers,such as Sears Canada,Zellers,and The Bay,can _______ by adding designer clothes sections to their stores.

Accepted Answer

By adding designer clothes sections to their stores, mass merchandisers can trade up, meaning they can offer higher-end products to their customers and potentially increase their profits. This strategy makes sense for mass merchandisers who want to capture a portion of the market that values designer brands and is willing to pay a higher price for them. It would not necessarily increase use or create new use situations, and trading down would involve offering lower-priced products, which is not the goal of adding designer clothes sections.

Question 10

All of the following are factors that trigger product repositioning as a marketing action EXCEPT:

Accepted Answer

Copying competitors' sales promotion strategies may increase trial and repeat purchase behaviour, but it does not necessarily trigger product repositioning. A product repositioning involves changing the perception of the product in the market, which cannot be achieved solely through sales promotion strategies. Factors A, B, and C involve changes in the product's value proposition and its target market which can trigger product repositioning.

Question 11

Finding new uses for an existing product has been a major strategy in extending the life of Arm & Hammer Baking Soda.The product (unchanged from its original formula)is now being promoted as a dentifrice; a deodorizer for cat litter,carpeting,and refrigerators; and a fire extinguisher.Arm & Hammer is:

Accepted Answer

Arm & Hammer is promoting the product for new uses, which falls under the market modification strategy. They are not changing the product or targeting new users, but rather finding new use situations for existing customers.

Question 12

The Upjohn Company first targeted men for its Rogaine topical solution,a drug to restore hair growth,but later marketed this product to women.The Upjohn Company is using which of the following market modification strategies?

Accepted Answer

The Upjohn Company is using the strategy of finding new users by expanding its target market from men to include women for its Rogaine product.

Question 13

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in:

Accepted Answer

Downsizing by consumer products firms involves offering less content in the same or larger package while maintaining or increasing the price. This subtle, yet deceptive practice takes advantage of consumers' buying habits and results in consumers paying the same price for less product. Consumer advocates believe this practice is unfair and deceptive.

Question 14

New Coke was repositioned as a slightly sweeter,less filling soft drink because the Coca-Cola Company discovered that its 1984 market share in supermarkets was 2 percent behind Pepsi.This product repositioning strategy was:

Accepted Answer

The repositioning strategy was a reaction to Pepsi's position, as Coca-Cola discovered that it was 2 percent behind Pepsi in supermarket market share.

Question 15

Sealy,the largest manufacturer of mattresses in North America,recently set out to redefine its place in the bedrooms of consumers.No longer was it going to be associated as a mattress company.Henceforth,the name Sealy was going to be known as the world's leading "sleep wellness provider." This is an example of:

Accepted Answer

This is an example of repositioning, as Sealy is changing the way it is known in the market and shifting its brand identity from just a mattress company to a provider of overall sleep wellness.

Question 16

Tums,which has long been used for reducing heartburn,is now being promoted as a source of calcium for the prevention of osteoporosis.Its manufacturer is using which of the following market modification strategies?

Accepted Answer

The manufacturer is promoting Tums for a new use situation, i.e. as a source of calcium for the prevention of osteoporosis. This is an example of creating a new use situation, which is a market modification strategy.

Question 17

Campbell's Soup ran an advertisement that read: "Our Soups: No Longer Just For Colds and Sick-Days!" Campbell's was attempting:

Accepted Answer

The answer of Campbell's Soup ran an advertisement that read:...

Question 18

Airlines have added more seats,thus reducing leg room,and eliminated extras,such as snack service and food portions.This is an example of:

Accepted Answer

Trading down refers to reducing the quality or quantity of a product or service to lower its price and appeal to a cost-conscious market. The airlines' decision to add more seats and eliminate extras is an example of trading down. The reduction in legroom and elimination of snacks and food portions are cost-cutting measures aimed at reducing the price of air travel and appealing to budget-conscious travelers.

Question 19

For many years,Kellogg's Frosted Flakes,a ready-to-eat breakfast cereal,was perceived as a cereal for children.Tony the Tiger,a cartoon character,extolled Frosted Flakes,and advertisements depicted children enjoying the product in competitive situations.Recently,in response to declining sales of the Frosted Flakes,the cereal-maker has adopted a new series of advertisements that show adults admitting they enjoy Frosted Flakes,too.Kellogg's is attempting to:

Accepted Answer

Kellogg's is attempting to reposition its product by changing the perception of Frosted Flakes from being solely for children to a product enjoyed by adults as well. This is evident through the new series of advertisements showing adults admitting they enjoy the product.

Question 20

A car manufacturer revealed a type of gas tank,that,even though,you gauge says 'empty' you still have an additional 50km left in the tank to get you to the nearest gas station.This is an example of:

Accepted Answer

The car manufacturer is adding additional features to their product (gas tank) by allowing the driver to go an extra 50km even when their gauge says 'empty'. This shows a focus on using higher quality materials or technology to enhance the product.

Quiz 11: Managing Products and Brands