MGT 103 FINAL LECTURE 11-16 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MGT 103 FINAL LECTURE 11-16 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 Stages of the Product Life Cycle - Answers introduction, growth, maturity, decline introduction stage of product life cycle - Answers Stimulate Trial Primary Demand Selective Demand Skimming - intro Penetration - Intro low price, raise later growth stage of product life cycle - Answers - want to stay in this stage as long as possible! More competitors Profits peak Advert shifts to selective demand New features and broad distribution maturity stage of product life cycle - Answers Sales slow with fewer new buyers and profit declines Product differentiation Fewer competitors decline stage of product life cycle - Answers Sales and price drop Harvesting → Printers! Deletion Five Categories and Profiles of Product Adopters - Answers innovators, early adopters, early majority, late majority, laggards Innovators - Answers those buyers who want to be the first to have the new product or service Higher educated, multiple info sources early adopters - Answers People who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters Leaders in social setting, slightly above avg education early majority - Answers individuals who adopt a new product just prior to the average person Most important to capture this profile for prolonged success late majority - Answers skeptics who adopt new products when they feel it is necessary Below avg social status Laggards - Answers consumers who like to avoid change and rely on traditional products until they are no longer available Fear of debt Neighbours and friends are info sources, not internet Barriers to Adoption - Answers usage, value, risk, psychological Product/Brand Manager Responsibilities - Answers •Product Life Cycle •New Product Development •Marketing Program Implementation •Data Analysis •Category Development Index (CDI) •Brand Development Index (BDI) Repositioning - Answers - Reacts to a competitor's position - Reaching a new market - Changing the value offered - Downsizing: Reducing content in package (get less pay more → Chips!) US Econ Connection - Answers Services are a larger part of the U.S economy than goods. Developed countries tend to be service economy What countries tend to be goods economy? - Answers developing companies like Vietnam explain customer satisfaction trend - Answers Most customers don't complain, instead they immediately switch or leave negative reviews Responding to Service Failures - Answers - Commitment to Good Service - Promise to Compensate if Service Poor - Must exceed expectations to maintain loyalty - immediately react to negative complaints 7 P's - Answers Product Price Place Promotion People Physical Environment Process Marketing Objective: Gain Awareness - Answers Competition: Few Product: One Price: Skimming or penetration Promotion: inform, educate Place: limited Marketing objective: stress differentiation - Answers competition: More product: More Versions Price: Gain market share, deal Promotion: stress points of difference Place: more outlets Marketing objective: Maintain brand loyalty - Answers Competition: Many Product: Full product line Price: Defend market share, profits Promotion: reminder oriented Place: maximum outlets Marketing objective: Harvesting, deletion - Answers Competition: reduced Product: best sellers Price: stay profitable Promotion: minimal promotion Place: few outlets high learning product - Answers significant customer education is required and there is an extended introductory period graph: initial slow adoption, sales peak, decline low learning product - Answers sales begin immediately because little learning is required by the consumer and the benefits of purchase are readily understood graph: rapid adoption & decline fad product - Answers experiences rapid sales on introduction and then an equally rapid decline fashion product - Answers a product that comes in and out of favor with consumers recycling, ex. things from the 90s are coming back now Value = - Answers perceived benefits/price Steps in Setting Price - Answers 1. Identify pricing objectives and constraints 2. Estimate demand and revenue 3. Determine cost, volume, and profit relationships 4. Select an approximate price level 5. Set list or quoted price 6. Make special adjustments to list or quoted price Pricing Constraints - Answers Single Product vs Product Line Example: Apple unveiled product line with 3 phones, had to consider features and benefits of all 3 and provide corresponding pricing fixed pricing - Answers One price for the product to all purchasers at any given time Dynamic Pricing - Answers the practice of changing prices for products and services in real time in response to supply and demand conditions Price changes day to day → Airlines! Demand Curve - Answers a graph of the relationship between the price of a good and the quantity demanded Marketers want a shift to the RIGHT of the demand curve Price Elasticity - Answers a measure of the sensitivity of demand to changes in price Demand is sensitive to changes in price (ex. jacket, if it goes on sale, people might buy more) Shopping products Inelastic Demand - Answers A situation in which an increase or a decrease in price will not significantly affect demand for the product insensitive to changes in price Commodities and Necessities ex. water on sale, people aren't likely to buy more Price Elasticity of Demand = - Answers percentage change in quantity demanded/percentage change in price Total Revenue = - Answers Price x Quantity Price Premium % = - Answers (Dollar Sales Market Share for a Brand / Unit Volume ) - 1 Approaches for Selecting an Approximate Price Level Demand Oriented - Answers Skimming Penetration Prestige Price Lining Odd-even Target Bundle Yield Management skimming price strategy - Answers strategy in which a new product is priced high to make optimum profit while there's little competition penetration strategy - Answers strategy in which a product is priced low to attract many customers and discourage competition prestige pricing - Answers charging a high price to help promote a high-quality image price lining strategy - Answers A technique that sets a range of several distinct merchandise price levels odd-even pricing - Answers setting prices a few dollars or cents under an even number Target pricing strategy - Answers results in the manufacturer deliberately adjusting the composition and features of a product to achieve the target price to consumers