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AS Business Studies MCQ QuestionBank 2005

3.6

Products and brands

349.

Most new products succeed in the marketplace: true or false?

a) True
b) False

350.

The use of a name, symbol or design to identify a particular product is known as:

a) Advertising
b) Promotion
c) Pricing
d) Branding

351.

The range of products sold by a business is known as the:

a) Product mix
b) Brand mixer
c) Product group
d) Product plan

352.

A business that sells products in several quite distinct markets is said to be:

a) Competitive
b) Diversified
c) Focused
d) Declining

353.

Which of the following terms is not used in the Boston Consulting Group's Matrix?

a) Dogs
b) Cash Cows
c) Sheep
d) Problem Children

354.
According to the Boston Consulting Group Matrix what category refers to products that
are potentially very profitable but which need large investment?
a) Stars
b) Problem Children
c) Dogs
d) Cash Cows

355.
According to the Boston Consulting Group Matrix what category refers to products that
are the main generators of cash and profit - and therefore support investment in new products?
a) Stars
b) Problem Children
c) Dogs
d) Cash Cows

356.

The PLC model describes how sales of a product change over time. PLC stands for:

a) Production Life Cycle

b) Product Learning Cycle
c) Product Lifetime Customers
d) Product Life Cycle
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AS Business Studies MCQ QuestionBank 2005

357.
Products at the introduction stage of the PLC are likely to require significant investment
and will often incur losses at first: true or false?
a) True
b) False

358.

Which of the following products can be said to be at the decline stage of its PLC?

a) VHS video cassettes

b) Third generation "picture" mobile phones
c) Digital televisions
d) Overseas holidays

359.
According to marketing theory, a product's life cycle can never last more than 25 years:
true or false?
a) True
b) False

360.
The length of a product's life cycle can be changed by altering factors such as the
packaging and price: true or false?
a) True
b) False

361.
Marketing managers often claim that their product has a "USP" which makes the
product attractive to customers. What does "USP" stand for?
a) Unified Selling Price
b) Unique Selling Point
c) Unfailing Sales Price
d) Unbeatable Selling Proposition

362.
The way in which firms try to create differences between their products and those of
competitors is know as:
a) Product branding
b) Product promotion
c) Product mixing
d) Product differentiation

363.

The four main stages in the product life cycle are:

a) Introduction: Growth: Maturity: Decline

b) Investment: Testing: Launch: Promotion
c) Introduction: Growth: Margins: Profits
d) Launch: Promotion: Maturity: Decline

364.
Kimberley Scott is a large business that makes the toilet tissue known as "Andrex".
What is "Andrex" for Kimberley Clark?
a) A market segment
b) A trade mark
c) A brand name
d) A service

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AS Business Studies MCQ QuestionBank 2005

365.

Own-label brands are owned by:

a) Manufacturers
b) Retailers
c) Distributors, including wholesalers and retailers
d) Manufacturers and retailers

366.

Which of the following is the best definition of a brand?

a) A logo that at least 50% of customers recognise

b) The product that is sold for the highest price in a market
c) A well-packaged product
d) A combination of name, symbol, design and other factors that identifies a seller's product

367.

George, the clothing brand of Asda, is an example of what kind of brand?

a) Global brand
b) Generic brand
c) Own-label brand
d) Declining brand

368.

Which of the following is not a characteristic of successful brands?

a) Higher profit margins

b) Higher selling prices
c) Higher customer loyalty
d) Higher distribution costs

369.
Toshiba manufacturer a range of laptop computers and accessories. This range is an
example of a:
a) Product line
b) Product packaging
c) Cash cow
d) Market segment

370.
The successful change by the Lucozade brand to achieve leadership of the sports drinks
market is an example of:
a) Price promotion
b) Brand extension
c) Market segmentation
d) Discount retailing

371.
Lastminute.com was one of the first businesses to successfully exploit the Internet to
sell travel and holidays. Their success is an example of:
a) Fast-moving consumer goods
b) Just-in-time production
c) First-mover advantage
d) First in the queue

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AS Business Studies MCQ QuestionBank 2005

372.

Brands that are positioned as having high quality and high prices are known as:

a) Premium brands
b) Cowboy brands
c) Economy brands
d) Bargain brands

373.

Which of the following is not a kind of product extension strategy?

a) Encouraging increased usage

b) Finding new users / customers
c) Finding new users for the product
d) Increasing the selling price

374.
Trialling a new product in a limited geographical area or with a small group of customers
is known as:
a) Brand extending
b) Product profiling
c) Test marketing
d) Geographical segmentation

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AS Business Studies MCQ QuestionBank 2005

Products and brands

Answers:
349.

(b)

350.

(d)

351.

(a)

352.

(b)

353.

(c)

354.

(a)

355.

(d)

356.

(d)

357.

(a)

358.

(a)

359.

(b)

360.

(a)

361.

(b)

362.

(d)

363.

(a)

364.

(c)

365.

(c)

366.

(d)

367.

(c)

368.

(d)

369.

(a)

370.

(b)

371.

(c)

372.

(a)

373.

(d)

374.

(c)

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