MKTG Chapter 8

Style is a larger concept than design. Design simply describes the appearance of a product.

False; design switched with style

Line extension refers to extending an existing brand name to new product categories.

False; line stretching

Branding decisions include determining a product price.

False;

A good brand name should most likely be ________. A) trendy B) complex C) long D) conventional E) distinctive

E

Line extension refers to extending an existing brand name to new product categories.

False

At a hotel renowned for its superior service, one registration-desk employee may be cheerful and efficient, whereas another may be irritable and slow. This exemplifies service consistency.

False; service variability

A company's product mix has four important dimensions: width, length, depth, and consistency.

True

Good service recovery can turn angry customers into loyal ones.

True

Labels range from simple tags attached to products to complex graphics that are part of the packaging.

True

Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share.

True

A ________ consists of all the product lines and items that a particular seller offers for sale. A) product mix B) store brand C) supply chain D) value chain E) line extension

a

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Liabilities B) Services C) Brands D) Consumer products E) Specialty products

b

Which of the following exemplifies a service? A) candy B) laptop C) hair salon D) car E) laundry detergent

c

A company that uses well-known celebrities to help sell its products is using ________ marketing. A) interactive B) internal C) social D) person E) organization

d

A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand. A) line extension B) portfolio C) label D) design E) feature

c

A good design begins with ________. A) brainstorming new product ideas B) making prototypes of the planned product C) identifying the most suitable and aesthetic packaging D) brainstorming technical product specifications E) observing and understanding customers and shaping their product-use experience

e

A label can identify, promote, and ________ the product. A) sell B) assemble C) package D) brand E) describe

e

Brand ________ refers to how consumers feel if a brand meets their needs. A) differentiation B) equity C) dilution D) esteem E) relevance

e

Attributes are the most desirable level for brand positioning because competitors can easily copy attributes.

False

The strongest brands do not engage customers on a deep, emotional level.

False

Product mix width refers to the total number of items a company carries within its product lines.

False, it is all the lines and items that a seller offers

Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

False; convenience products

For few companies, the package itself has become an important promotional medium.

False; many companies, practically all

A product line consists of unrelated products that are sold to diverse customer groups.

False; related products sold to similar customer groups

Services are growing more slowly in the world economy as a percentage of gross world product than in the U.S. economy, as a percentage of gross domestic product.

False; services growing more quickly in the US than in the world

Convenience products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

False; shopping products

Specialty products are consumer products and services that customers evaluate on suitability, quality, price, and style, by gathering information and making comparisons.

False; shopping products

Co-branding occurs when retailers and wholesalers create their own store brands.

False; store-branding

A company should strive to build a brand name that becomes identified with the product category, as Scotch Tape did.

False; that is identified with benefits, beliefs, and values

Companies frequently try to offer the highest possible performance quality level.

False; they decide on a quality level and consistency

Companies stretch downward to add prestige to their current products.

False; upward

A company cannot stretch its product line downward.

False; upwards, downwards, or both

Product line filling is overdone if it results in cannibalization and customer confusion.

True

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A) product line B) line extension C) private brand D) multibrand E) new brand

a

Brand ________ refers to how highly consumers regard and respect the brand. A) esteem B) conformance C) differentiation D) relevance E) knowledge

a

If a consumer purchases a new flat-screen "smart" television which can connect to services like Netflix and Pandora, what is the core customer value involved? A) connection to entertainment and information B) state-of the art technology C) slick and attractive packaging D) brand name E) tech support and warranty

a

Industrial products and services include raw materials, buildings, fixed equipment, supplies, services, and ________. A) computers and desks B) electricity C) groceries D) insurance E) employees

a

Product mix ________ refers to the total number of items a company carries within its product lines. A) length B) depth C) height D) width E) consistency

a

A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service. A) feature B) brand C) line extension D) package E) value chain

b

Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem? A) intangibility B) perishability C) inconsistency D) variability E) inseparability

b

________ are the major marketing factors in the sale of most manufactured materials and parts. A) Branding and advertising B) Price and service C) Sales promotion and advertising D) Branding and packaging E) Public relations and brand management

b

________ contributes to a product's usefulness as well as to its looks. A) Sensational style B) Good design C) Quality D) Consistency E) Packaging

b

An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) national brand B) support brand C) private brand D) generic brand E) manufacturer's brand

c

While advertising campaigns can help create name recognition, brand knowledge, and perhaps even some brand preference, brands are not maintained by advertising but by ________. A) brand differentiation B) line extensions C) brand experiences D) brand sponsorships E) brand awareness

c

Service companies can differentiate their service delivery by ________. A) using symbols and logos B) instituting a hierarchical organizational structure C) offering innovative product features D) de-emphasizing branding E) having more able and reliable customer-contact people

e

________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Capital items E) Convenience products

c

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. A) Unsought products B) Convenience products C) Capital items D) Specialty items E) Repair items

c

________ involves the use of a successful brand name for new or modified products in a new category. A) A line extension B) A product line C) A brand extension D) Co-branding E) Cannibalization

c

An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) national brand B) support brand C) private brand D) generic brand E) manufacturer's brand

B

Which of the following is true with regard to store brands? A) Store brands have been declining in popularity and strength for more than two decades. B) Store brands are also known as national brands. C) Store brands are created and owned by resellers of a product or service. D) Increasing consumer distrust toward store brands has led to a store-brand slump. E) Store brands are growing far slower than manufacturer's brands.

C

________ represent(s) consumers' perceptions and feelings about a product and its performance. A) Product lines B) Labeling C) Brands D) Design E) Product attributes

C

Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy, Kendell Associates. Gainville is most likely positioned on ________. A) basic product attributes B) short-term benefits C) service variability D) self-image enhancement E) strong beliefs and values

E

Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This process is known as ________. A) multibranding B) positioning C) segmenting D) co-branding E) licensing

E

Service productivity can be increased by hiring new employees who will work harder, by giving up some quality, or by ________. A) using technology more effectively B) outsourcing portions of the process to other firms C) creating more self-serve opportunities for customers D) reducing the number of products offered E) increasing the price on some of the product line

a

The new felt-tip pens, multiple-cartridge pens, and quills offered by Ruben Delgado are examples of ________. A) product line filling B) multibranding C) megabranding D) product line inconsistencies E) co-branding

a

Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of ________. A) line filling B) social marketing C) market diversification D) negative brand equity E) person marketing

a

Consumer products refer to ________. A) products purchased by consumers for further processing or for use in conducting a business B) products and services bought by final consumers for personal consumption C) primarily intangible offerings from marketers D) raw materials as well as manufactured materials and parts E) products that aid in the consumer's production or operations, including installations and accessory equipment

b

Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________. A) product labels B) product attributes C) support services D) product packaging E) branding

b

If a service employee provides the service, then the employee becomes a part of the service. This is an example of service ________. A) intangibility B) inseparability C) variability D) perishability E) heterogeneity

b

Product mix ________ refers to the number of versions offered for each product in the line. A) length B) depth C) height D) width E) consistency

b

Product planners need to consider products and services on three levels. At the third level, product planners must build ________. A) an actual product B) an augmented product C) core customer value D) a brand personality E) a basic product

b

Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________ marketing. A) internal B) social C) organization D) person E) place

b

Service ________ means that services cannot be stored for later sale or use. A) consistency B) perishability C) variability D) intangibility E) inseparability

b

Style simply describes the ________ of a product. A) quality B) appearance C) utility D) durability E) long-term benefits

b

Features are a competitive tool for differentiating a company's product from competitors' products. Which question are companies LEAST likely to ask in a survey of buyers regarding product features? A) Which features could we add to improve the product? B) Which specific features of the product do you like most? C) How much would (a certain new feature) be worth to you? D) Which features of the product do you like the least? E) How do you like the product?

c

Installations consist of ________. A) highly priced luxury goods such as Rolex watches B) portable office equipment such as computers C) major purchases such as elevators D) portable factory equipment such as hand tools E) products such as insurance

c

Market offering includes everything from pure tangible goods to pure services, as well as combinations of goods and services. Which of the following is NOT a product or service? A) breakfast cereal B) rental car C) free concert D) shoes E) haircut

c

Product attributes include all of the following EXCEPT ________. A) style B) design C) price D) features E) quality

c

Product mix ________ refers to the number of different product lines the company carries. A) length B) height C) width D) consistency E) depth

c

According to the service profit chain, superior internal service quality results in ________. A) lesser service value B) increased word-of-mouth sales C) reduced after-sale services D) more satisfied, loyal, and hardworking employees E) negative brand equity of newly launched products

d

Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product. A) convenience B) unsought C) specialty D) shopping E) exclusive

d

Service companies can differentiate their offering by ________. A) having a lower price than their competitors B) designing a superior delivery process C) offering a stellar physical environment in which the product is delivered D) developing innovative features E) adopting a recognizable image

d

The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance? A) service intangibility B) service inseparability C) service perishability D) service variability E) service distinction

d

The major product line decision involves product ________, the number of items in the product line. A) features B) line depth C) line conformance D) line length E) packaging

d

________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. A) Unsought products B) Capital items C) Shopping products D) Convenience products E) Supplies and repair services

d

________ are industrial products. A) Major appliances B) Laundry detergents C) Life insurance policies D) Office supplies E) Legal services

d

________ products are those products purchased for further processing or for use in conducting a business. A) Unsought B) Specialty C) Shopping D) Industrial E) Convenience

d

________ refers to freedom from defects and consistency in delivering a targeted level of performance. A) Performance quality B) Product style C) Branding D) Conformance quality E) Product design

d

Which of the following is an example of a pure tangible good? A) a laptop with a comprehensive warranty for three years B) an online shoe retailer that provides free home delivery C) an agency that offers free legal advice D) a credit card E) a bag of potato chips

e

Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? A) brand conformance B) brand consistency C) brand convenience D) brand extension E) brand relevance

e

Which of the following product offerings is intangible? A) a package of laundry detergent B) an ink cartridge for a printer C) a wool jacket D) a gold ring E) a taxi ride

e

The strongest brands are positioned on ________. A) desirable benefit B) good packaging C) service inseparability D) strong beliefs and values E) product attributes

D

Product quality is harder to define and judge than service quality.

False; opposite

Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.

False; the supply of the service cannot be separated from the consumption, ie: haircuts, car servicing

Service companies can differentiate their service delivery by having more able and reliable customer-contact people.

True

The augmented product is the actual product plus the various services and benefits offered with it, such as a warranty, free delivery, installation, and maintenance.

True

The total financial value of a brand is brand value.

True

Lubricants, coal, paper, and pencils are examples of ________. A) operating supplies B) capital items C) raw materials D) specialty products E) installations

a

Marketing mix planning begins with ________. A) building an offering that brings value to target customers B) finding a suitable promotion strategy for the product C) setting a reasonable price for the product D) selecting the right channel for distribution of the product E) calculating the total costs involved in manufacturing the product

a

Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance? A) service intangibility B) service inseparability C) service variability D) service perishability E) service distinction

a

What are the two dimensions of product quality? A) consistency and level B) performance and conformance C) design and innovation D) conformance and style E) feature and design

a

Which of the following is an example of a convenience product? A) fast food B) diamond ring C) furniture D) life insurance E) refrigerator

a

Which of the following strategies involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number one or number two market share positions with good growth prospects in their categories? A) megabrand strategies B) niche marketing strategies C) social marketing strategies D) co-branding E) licensing

a

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. A) Shopping products B) Convenience products C) Unsought products D) Capital items E) Supplies and repair services

a

________ involves designing and producing the container or wrapper for a product. A) Packaging B) Patenting C) Servicing D) Co-branding E) Labeling

a

________ means that service quality depends on the quality of buyer-seller interaction during the service encounter. A) Interactive marketing B) Service differentiation C) Service productivity D) Corporate image marketing E) Traditional external marketing

a

________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. A) Line extension B) Megabranding C) Interactive marketing D) Internal marketing E) Co-branding

a

An easier, more comfortable, more stylish transfer of thought onto paper refers to the ________ of Ruben's offerings. A) tangible element B) core customer value C) actual product D) augmented product E) service variability

b

Apollo Couriers, a company providing international express mail services, has a proactive customer communications team. The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick remedies to fix the problems. To a great extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has benefitted from ________. A) product differentiation B) good service recovery C) multibranding D) place marketing E) co-branding

b

BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________. A) an aggressive brand personality B) high brand equity C) no brand commitment D) negative brand equity E) low brand relevance

b

Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________. A) line extension B) brand extension C) licensing D) co-branding E) cannibalization

b

The ________ requires sellers to provide detailed nutritional information on food products. A) Fair Packaging and Labeling Act of 1966 B) Nutritional Labeling and Educational Act of 1990 C) Glass-Steagall Act D) Commodity Futures Modernization Act of 2000 E) Federal Trade Commission Act of 1914

b

The advertising slogan, "We bring good things to life," used by General Electric to market itself, is an example of ________ marketing. A) person B) corporate image C) internal D) place E) niche

b

The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates. A) the customer mix B) customer equity C) the product experience D) service variability E) the service encounter

b

Which of the following actions is a restaurant owner most likely to take in order to reduce problems associated with service intangibility? A) increase entree prices after 6:00 p.m. B) provide clean tablecloths and fresh napkins for each new customer C) empower employees to handle customer complaints D) offer discounted prices for appetizers ordered during happy hour E) hold regular employee workshops focusing on customer service

b

Which of the following is a goods-and-services combination? A) a bicycle B) a milk shake at an ice cream store C) chocolate chips D) a train ride E) a music lesson

b

Which of the following is true with regard to brand equity? A) Brand equity refers to how much consumers know about the brand. B) High brand equity provides a company with many competitive advantages. C) A brand has positive brand equity if consumers react less favorably to it than to an unbranded version. D) Positive brand equity derives from low brand esteem. E) The total financial value of a brand can be easily measured.

b

Which of the following is true with regard to services? A) Services refer to purely tangible products. B) Services are a form of product that consists of activities, benefits, or satisfactions offered for sale. C) Services can be stored for later use. D) Services can be easily separated from their providers. E) Services are tangible product offerings whose quality can be easily measured.

b

________ marketing consists of activities undertaken to create, maintain, or change attitudes toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use it to build their reputations. A) Corporate image B) Person C) Social D) Organization E) Place

b

________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization. A) Social network B) Organization C) Niche D) Location E) Concentrated

b

________ marketing involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions. A) Idea B) Place C) Organization D) Social E) Interactive

b

________ occurs when a company lengthens its product line beyond its current range. A) Product line filling B) Product line stretching C) Co-branding D) Niche marketing E) Market diversification

b

________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. A) Brand equity B) Product quality C) Product labeling D) Brand image E) Brand personality

b

A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________. A) lengthened its existing product line B) decreased its product line consistency C) widened its product mix D) engaged in market diversification E) engaged in social marketing

c

Advertising campaigns involving issues ranging from health care, education, and environmental sustainability to human rights and personal safety can be classified under ________ marketing. A) corporate image B) internal C) social D) place E) person

c

Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. A) differentiation B) knowledge C) equity D) personality E) relevance

c

Product planners need to consider products and services on three levels. At the second level, product planners must ________. A) offer additional product support and after-sale services B) identify the core customer value that consumers seek from the product C) turn the core benefit into an actual product D) find out how they can create the most satisfying brand experience E) define the problem-solving benefits or services that consumers seek

c

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, "What is the buyer really buying?" A) an actual product B) an augmented product C) core customer value D) co-branding E) exchange value

c

Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________. A) social marketing B) product line filling C) product line stretching D) internal marketing E) cannibalization

c

Rhodia invites tourists from all over the world to experience its pristine nature, clear skies, and beautiful summertime climate. This exemplifies ________. A) corporate image marketing B) social marketing C) place marketing D) social engineering E) negative brand equity

c

Service ________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. A) inseparability B) variability C) intangibility D) perishability E) heterogeneity

c

Service ________ means that the quality of services depends on who provides them as well as when, where, and how they are provided. A) intangibility B) inseparability C) variability D) perishability E) heterogeneity

c

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. A) length B) depth C) consistency D) width E) height

c

The first step in designing support services is to ________. A) add new services that will both delight customers and yield profits to the company B) closely observe the product and pricing strategies of consumers C) survey customers to assess the value of current services and obtain ideas for new ones D) prevent brand dilution E) encourage customers to try new products

c

The service profit chain includes internal service quality, satisfied and productive service employees, greater service value, healthy service profits and growth, and ________. A) higher market share B) better paid employees C) satisfied and loyal customers D) increased manufacturing efficiency E) higher morale

c

Which of the following is an advantage offered by co-branding? A) Manufacturers do not have to invest in creating their own brand names with co-branding. B) Co-branding allows retailers to sell exclusive products that cannot be purchased from competitors. C) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone. D) Co-branding dilutes brand equity and increases the appeal of store brands. E) Co-branding does not involve complex legal contracts and licenses.

c

Which of the following is the lowest level on which marketers can position their brands in target customers' minds? A) beliefs and values B) product benefits C) product attributes D) after-sale services E) brand equity

c

Which type of product does Delgado manufacture? A) industrial B) convenience C) specialty D) shopping E) unsought

c

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. A) Specialty products B) Convenience products C) Unsought products D) Shopping products E) Capital items

c

________ involves adding more items within the present range of the product line. A) Market diversification B) Brand extension C) Product line filling D) Upward product line stretching E) Downward product line stretching

c

________ is an approach in which all the company's people are involved in constantly improving the quality of products, services, and business processes. A) Business intelligence B) Quality function deployment C) Total quality management D) Brand equity management E) Product positioning

c

________ occurs when two established brand names of different companies are used on the same product. A) Market diversification B) Niche marketing C) Co-branding D) Licensing E) Cannibalization

c

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________. A) convenience product B) capital item C) service D) specialty product E) product attribute

d

Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. A) service inseparability B) social marketing C) service variability D) internal marketing E) corporate image marketing

d

What is the core customer value a customer might purchase when buying Urban Decay cosmetics? A) variety of collections B) unique packaging C) unusual colors D) sense of adventure E) long-lasting makeup

d

Which of the following has become a major packaging concern in recent years? A) underpackaging B) legibility of print C) colors used D) product safety E) durability

d

Which of the following is NOT a category of consumer products? A) unsought B) specialty C) convenience D) luxury E) shopping

d

Which of the following is a potential drawback of multibranding? A) Multibranding tends to decrease brand loyalty. B) Company resources are likely to be concentrated on a single brand. C) Multibranding curbs the growth opportunities of established brands. D) Each brand might obtain only a small market share, and none may be very profitable. E) Multibranding causes companies to refrain from product diversification.

d

Which of the following is true with regard to products? A) The quality of products is far more difficult to measure than that of services. B) Products do not include experiences, organizations, persons, places, and ideas. C) Products are not meant for sale in the market. D) Products include services, events, persons, places, organizations, ideas, or a mixture of these. E) Products refer to only those activities that are essentially intangible.

d

Which of the following questions is most important for product designers to consider while developing a product? A) Which specific features of the product do customers like most? B) How does the product appear to buyers? C) What are the product's technical specifications? D) How would customers use and benefit from the product? E) How can the product be packaged to stimulate instant purchase?

d

If a consumer purchases a new flat-screen "smart" television, what is the augmented product involved? A) connection to the world of entertainment B) state-of the art technology C) slick and attractive packaging D) brand name E) tech support and warranty

e

Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing. A) corporate image B) person C) organization D) internal E) place

e