BUSML 3250 Final Exam Questions with
Latest Update
Product Life Cycle - Answer-describes the stages a new product goes through in the
marketplace: introduction, growth, maturity, and decline
trial - Answer-the initial purchase of a product by a consumer
introduction stage - Answer-The initial stage of a product's life cycle; its first appearance
in the marketplace, when sales grow slowly and profit is minimal
primary demand - Answer-demand for a product category rather than for a specific
brand
selective demand - Answer-demand for a specific brand
price skimming - Answer-Charging the highest possible price that buyers who most
desire the product will pay
penetration pricing - Answer-setting a low initial price on a new product to appeal
immediately to the mass market
Growth Stage - Answer-the second stage of the product life cycle when sales typically
grow at an increasing rate, many competitors enter the market, large companies may
start to acquire small pioneering firms, and profits are healthy
repeat purchasers - Answer-people who tried the product, were satisfied, and bought
again
maturity stage - Answer-a period during which sales decelerate and firms start to divest
from product. Attention is spent holding on to market share
decline stage - Answer-stage of the product life cycle when sales decline and the
product eventually exits the market
product deletion - Answer-eliminating a product from the product mix when it no longer
satisfies a sufficient number of customers
product harvesting - Answer-when a company retains the product but reduces
marketing costs
high learning product - Answer-one for which significant customer education is required
and there is an extended introductory period
, low learning product - Answer-sales begin immediately because little learning is
required by the consumer and the benefits of purchase are readily understood
fashion product - Answer-a product that comes in and out of favor with consumer taste
fad product - Answer-experiences rapid sales on introduction and then an equally rapid
decline
product class - Answer-refers to the entire product category or industry
product form - Answer-pertains to variations of a product within the product class
diffusion of innovation - Answer-a product diffuses, or spreads, through the population
brand manager - Answer-a manager who has direct responsibility for one brand or one
product line; called a product manager in some firms
product modification - Answer-involves altering one or more of a product's
characteristics, such as its quality, performance, or appearance, to increase the
product's value to customers and increase sales
Product Bundling - Answer-the sale of two or more separate products in one package
market modification - Answer-strategies by which a company tries to find new
customers, increase a product's use among existing customers, or create new use
situations
trading up - Answer-adding value to the product (or line) through additional features or
higher-quality materials
trading down - Answer-reducing a product's number of features, quality, or price
branding - Answer-A marketing decision in which an organization uses a name, phrase,
design, symbols, or combination of these to identify its products and distinguish them
from those of competitors.
brand name - Answer-any word, device (design, shape, sound, or color), or combination
of these used to distinguish a seller's goods or services
brand personality - Answer-a set of human characteristics associated with a brand
name
brand equity - Answer-the added value a brand name gives to a product beyond the
functional benefits provided
Latest Update
Product Life Cycle - Answer-describes the stages a new product goes through in the
marketplace: introduction, growth, maturity, and decline
trial - Answer-the initial purchase of a product by a consumer
introduction stage - Answer-The initial stage of a product's life cycle; its first appearance
in the marketplace, when sales grow slowly and profit is minimal
primary demand - Answer-demand for a product category rather than for a specific
brand
selective demand - Answer-demand for a specific brand
price skimming - Answer-Charging the highest possible price that buyers who most
desire the product will pay
penetration pricing - Answer-setting a low initial price on a new product to appeal
immediately to the mass market
Growth Stage - Answer-the second stage of the product life cycle when sales typically
grow at an increasing rate, many competitors enter the market, large companies may
start to acquire small pioneering firms, and profits are healthy
repeat purchasers - Answer-people who tried the product, were satisfied, and bought
again
maturity stage - Answer-a period during which sales decelerate and firms start to divest
from product. Attention is spent holding on to market share
decline stage - Answer-stage of the product life cycle when sales decline and the
product eventually exits the market
product deletion - Answer-eliminating a product from the product mix when it no longer
satisfies a sufficient number of customers
product harvesting - Answer-when a company retains the product but reduces
marketing costs
high learning product - Answer-one for which significant customer education is required
and there is an extended introductory period
, low learning product - Answer-sales begin immediately because little learning is
required by the consumer and the benefits of purchase are readily understood
fashion product - Answer-a product that comes in and out of favor with consumer taste
fad product - Answer-experiences rapid sales on introduction and then an equally rapid
decline
product class - Answer-refers to the entire product category or industry
product form - Answer-pertains to variations of a product within the product class
diffusion of innovation - Answer-a product diffuses, or spreads, through the population
brand manager - Answer-a manager who has direct responsibility for one brand or one
product line; called a product manager in some firms
product modification - Answer-involves altering one or more of a product's
characteristics, such as its quality, performance, or appearance, to increase the
product's value to customers and increase sales
Product Bundling - Answer-the sale of two or more separate products in one package
market modification - Answer-strategies by which a company tries to find new
customers, increase a product's use among existing customers, or create new use
situations
trading up - Answer-adding value to the product (or line) through additional features or
higher-quality materials
trading down - Answer-reducing a product's number of features, quality, or price
branding - Answer-A marketing decision in which an organization uses a name, phrase,
design, symbols, or combination of these to identify its products and distinguish them
from those of competitors.
brand name - Answer-any word, device (design, shape, sound, or color), or combination
of these used to distinguish a seller's goods or services
brand personality - Answer-a set of human characteristics associated with a brand
name
brand equity - Answer-the added value a brand name gives to a product beyond the
functional benefits provided
