LHM12e TB CH10 Edited

Chapter 10Product Decisions

MULTIPLE CHOICE

1.A _____ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be tangible, intangible, a service, an idea, or a combination of these things.a.brand equityb.qualityc.warrantyd.transactione.product

ANS:EThis is the definition of a product.

PTS:1REF:357OBJ:10-1TOP:AACSB Reflective ThinkingKEY:CB&E Model ProductMSC:BLOOMS Level I Knowledge

2.The _____ is the starting point in creating a marketing mix.a.priceb.productc.distribution channeld.promotional mediae.production line

ANS:BThe product must be specified before other marketing mix variables can be planned.

PTS:1REF:357OBJ:10-1TOP:AACSB Reflective ThinkingKEY:CB&E Model ProductMSC:BLOOMS Level II Comprehension

3.Why is creation of a product the starting point for the marketing mix?a.The production department must know what to produce first.b.Production strategy is the first of the four Ps listed in the marketing mix.c.Determination of the price, promotional campaign, and distribution network cannot begin until the product has been specified.d.Product development takes the longest amount of time to complete.e.Actually, the product does not have to be the starting point--promotional strategies are often the starting point.

ANS:CThe product is the first decision around which the others are based.

PTS:1REF:357OBJ:10-1TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model StrategyMSC:BLOOMS Level IV Analysis

4.All of the following are examples of products EXCEPT:a.carton of milkb.contact lensesc.haircutd.pair of shoese.All of the above are products.

ANS:EA product may be a tangible good, a service, an idea, or any combination of these three.

PTS:1REF:357OBJ:10-1TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model StrategyMSC:BLOOMS Level IV Analysis

5.Which of the following is NOT an example of a product's tangible feature?a.Brand equityb.Packagingc.Colord.Weighte.Size

ANS:ABrand equity is the value of company and brand names.

PTS:1REF:357 | 364OBJ:10-1TOP:AACSB Reflective ThinkingKEY:CB&E Model ProductMSC:BLOOMS Level IV Analysis

6.When a greenhouse plant grower sells plants to nursery retailers, is selling _____ products.a.specialtyb.consumerc.convenienced.businesse.unsought

ANS:DRetailers resell the plants, so they are considered a business product.

PTS:1REF:358OBJ:10-2TOP:AACSB Reflective ThinkingKEY:CB&E Model ProductMSC:BLOOMS Level III Application

7.Rock-Tenn produces cardboard cartons to be used by companies in the food industry. Rock-Tenn is selling _____ products.a.specialtyb.consumerc.businessd.conveniencee.unsought

ANS:CBusiness products are purchased for (1) use in the production of other goods or services, (2) use in an organization's operations, or (3) resale to other customers.


8.The consumer product classification system is based on:a.how the market is segmentedb.the way the products are manufacturedc.the way products are usedd.the physical attributes of the producte.the amount of effort consumers spend to acquire the product

ANS:EProducts are classified by the amount of effort that is normally expended in the acquisition process.


9.There are so many cell phones on the market, and they vary so much on price, quality, service, and features that consumers often have trouble comparing them. A cell phone would probably be considered a _____ product.a.convenienceb.specialtyc.heterogeneous shoppingd.homogeneous shoppinge.generic

ANS:CHeterogeneous shopping products are essentially different, and consumers often have trouble comparing them.


10._____ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution.a.Convenienceb.Specialtyc.Branded shoppingd.Unbranded shoppinge.Generic

ANS:AThis is the definition of convenience products.


11.The convenience product marketing strategy includes:a.wide distribution of the productb.higher than ordinary pricesc.few retail outlets other than convenience storesd.significantly lower promotion budgetse.products that are not easily substitutable

ANS:ATo sell large amounts of products that consumers are unwilling to search for, there must be a large number of retail outlets.


12.Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out she noticed that People Magazine had an interesting cover story about Scarlett Johansson. As Amy is a huge fan Scarlett, she had to buy a copy. In this example, the People Magazine is an example of a(n) _____ product.a.specialtyb.conveniencec.businessd.shoppinge.unsought

ANS:BConvenience products are usually relatively inexpensive items that receive little shopping effort, such as an item bought on an impulse off a grocery-store check-out lane shelf.


13.Compared to the other classifications of consumer products, shopping products are:a.widely available so they need little or no promotionb.usually less expensive than convenience productsc.purchased without significant planningd.usually more expensive than convenience products and are found in fewer storese.purchased immediately after the consumer realizes he or she needs them

ANS:DShopping products are typically items such as clothing, automobiles, and major appliances. Consumers usually compare items across brands or stores.


14.Kathy is driving Chaz, her young son, home from soccer practice when Chaz say, Mom, Im thirsty. Kathy immediately pulls the SUV into the nearest gas station and buys Chaz a Coke. For Kathy, the Coke is best described as an example of buying a _____ product.a.homogeneous shoppingb.heterogeneous shoppingc.convenienced.specialtye.component

ANS:CShe spent very little shopping effort in buying the Coke.


15.Which of the following is the best example of a convenience product?a.Concert ticketsb.Chewing gumc.Jeansd.Chemical for the swimming poole.A birthday present

ANS:BChewing gum is a relatively inexpensive purchase and requires very little, if any, comparison shopping.

PTS:1REF:359OBJ:10-2TOP:AACSB Reflective ThinkingKEY:CB&E Model ProductMSC:BLOOMS Level IV Analysis

16.Which type of consumer product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores?a.An unsought productb.A secondary productc.A unique productd.A shopping producte.A selective product

ANS:DThis is the definition of a shopping product.


17.Harrison wanted a gas water heater. He watched newspaper ads until he found one on sale. For Harrison the water heater is a(n) _____ product.a.shoppingb.conveniencec.componentd.unsoughte.specialty

ANS:AHarrison is comparing ads looking for a low price. This is shopping product behavior.


18.The two types of shopping products are:a.unsought and convenienceb.generic and familyc.exclusive and intensived.heterogeneous and homogeneouse.consumer and business

ANS:DConsumer perceive homogeneous shopping products as basically similar, but they perceive heterogeneous shopping products as essentially different.


19.Which of the following is the best example of a shopping product for most consumers?a.Washing detergentb.Crackersc.Soft drinkd.Digital camerae.Magazine

ANS:DShopping products are typically more expensive than convenience products and are found in fewer shops


20._____ are products consumers see as being basically the same, so consumers shop for the lowest price.a.Low-prestige specialty productsb.Product equivalentsc.Heterogeneous shopping productsd.Generic convenience productse.Homogeneous shopping products

ANS:EWith homogeneous shopping products, consumers typically look for the lowest-priced brand that has the desired features.


21.Andrea needs to find a kennel for boarding her sons dogs. There are several different kennels in her community, and Andrea believes all of them to be basically alike. The only feature she is genuinely concerned about is low price. For Andrea, the kennel for boarding dogs would be classified as a(n) _____ product.a.specialtyb.unsoughtc.heterogeneous shoppingd.basic conveniencee.homogeneous shopping

ANS:EHomogeneous products are products that consumers see as being basically the same, so consumers shop for the lowest price.


22._____ products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility. Comparisons between these products are often quite difficult because they may have unique features and different levels of quality and price.a.Product equivalentsb.Comparative convenience productsc.Homogeneous shopping productsd.Product counterpartse.Heterogeneous shopping products

ANS:EThis describes heterogeneous shopping products.


23.When Kyla wanted patio furniture, she visited stores that had outdoor furniture, including Home Depot, Lowe's, Target, and Howard Lumber Company to find the set that would look just right on her patio. If Kyla represents a typical patio furniture shopper, you know this product is a(n):a.homogeneous luxury productb.shopping specialty goodc.operating supply goodd.convenience iteme.heterogeneous shopping product

ANS:EPatio furniture would be considered heterogeneous shopping products because consumers perceive patio furniture to have distinctive qualities such as sizes, shapes, and levels of functionality that match the style of the customer.


24.Which of the following products is most likely to be considered an example of a heterogeneous shopping product?a.An apartmentb.Laundry detergentc.A blenderd.A package of pense.Dog food

ANS:AHeterogeneous shopping products are essentially different. Housing is one of the examples given in the text.


25._____ products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.a.Exclusive shoppingb.Homogeneous conveniencec.Branded shoppingd.Specialtye.Heterogeneous convenience

ANS:DThis is the definition of specialty products.


26.Bang & Olufsen make some of the best sound systems in the world. After years of development, Bang & Olufsen recently released its new BeoLab 5 speakers. For audiophiles who demand the best in audio equipment, the $19,950 Bang & Olufsen BeoLab 5 speakers represent an example of a(n) _____ product.a.heterogeneous shoppingb.specialtyc.homogeneous shoppingd.conveniencee.exclusive

ANS:BBang & Olufsen speakers are expensive, and no substitutes are acceptable to this consumer group.


27.Janet will only purchase Crate and Barrel products for her home. The products are expensive but Janet feels they have the highest quality and will last a very long time. These products represent _____ products.a.heterogeneous shoppingb.specialtyc.homogeneous shoppingd.conveniencee.business

ANS:BCrate and Barrel home furnishings are expensive and no substitutes are acceptable to this consumer.


28.Evan Zimmermann loves watches. He collects vintage Rolex sport models made between 1950 and 1960. He paid $1,500 for his first watch in 2000. Now, the watch is worth $15,000. For Evan, the vintage watches are an example of a(n) _____ product.a.specialtyb.consumerc.convenienced.businesse.unsought

ANS:AThe fact that Evan will only purchase the vintage Rolex sports watches made between 1950 and 1960 shows that the watches are a specialty product.


29.When deciding on distribution plans for specialty products, companies generally ensure that the items are:a.made available only as private brandsb.made available in a large number of stores in a geographic areac.made available only through the maild.distributed to a considerable number of stores in a geographic areae.distributed to only a few stores in the geographic area

ANS:ESpecialty products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.

PTS:1REF:359OBJ:10-2TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model DistributionMSC:BLOOMS Level II Comprehension

30._____ products are products that are not known about or not actively searched for by consumers. These products require aggressive personal selling and highly persuasive advertising.a.Hiddenb.Specialtyc.Equityd.Unsoughte.Shopping

ANS:DThis is the definition of unsought products.


31.Unsought products typically are products that:a.consumers purchase when they see them in a convenient locationb.consumers definitely don't wantc.only require reminder advertising to be successfuld.require little or no decision making by the buyere.consumers don't know about or don't actively look for

ANS:EThis is the definition of unsought products.


32.Every three months or so, Stanley cleans the lint out of the long vent to his clothes dryer. It is a messy job that Stanley hates. It is too bad that Stanley has never heard of the Casabella Bendable Dryer Vent Brush, a specially designed brush that would make his life a little easier. For Stanley, the dryer vent brush is a(n) _____ product because he doesnt know the product exists.a.heterogeneous shoppingb.specialtyc.unsoughtd.conveniencee.exclusive

ANS:CNew products are often examples of unsought products until promotion reveals their existence.


33.Freda was proud of her shiny new iPhone. But she was disappointed when she began to notice scratches on its display surface. If Freda had of known about the clear static cling protective films that were available to protect the iPhone display from scratches, she could have avoided this annoying problem. For Freda, the protective films are a(n) _____ product.a.heterogeneous shoppingb.specialtyc.unsoughtd.conveniencee.consumer

ANS:CNew products are often examples of unsought products until promotion reveals their existence.


34.Unsought products are often sold through:a.aggressive personal sellingb.highly persuasive advertisingc.direct maild.dirct-response advertisinge.All of the above.

ANS:EBecause buyers do not actively seek to buy unsought products, companies that sell these products must go directly to them through all of the methods listed here.


35.A product line is a group of products that are closely related because the:a.products share the same product managersb.products all function in a similar manner and provide similar benefitsc.same company developed the idea for each productd.products are all sold under the same brand namee.products are all priced about the same

ANS:BA product line is a group of closely related products offered by the organization that basically perform the same tasks and provide the same benefits.


36.A number of yogurts are marketed under the Dannon brand, including Dannon All Natural, Dannon Fruit on the Bottom, Dannon Light & Fit, DanActive, and Dan-o-nino. The large variety of yogurts under the Dannon brand in an example of a:a.marketing mixb.product linec.product mixd.product equitye.product modification

ANS:BA product line is a group of closely related products.


37.Which of the following is an example of a product item?a.Tarter Protection Crest toothpasteb.Campbells soupc.Chevrolet automobilesd.Ore-Ida frozen foodse.All of the above are product items.

ANS:AA product item is a specific version of a product that can be designated as a distinct offering among an organizations products.


38.Along with its Macintosh computer line, Apple markets its iPod, iPhone, and AppleTV products. This is an abbreviated listing of the company's:a.customer mixb.product linec.product mixd.line depthe.product modification

ANS:CAn organization's product mix includes all of the products that it sells.


39.Product mix width may be defined as:a.the number of different product categories found within an industryb.the average number of products within each product line in the companyc.the average number of products offered by the companyd.the number of different product lines an organization offers for salee.the extensiveness of the coverage of the line from high end (expensive) to low end (inexpensive)

ANS:DProduct mix width represents the number of product lines an organization offers.


40.All of the following are benefits from organizing related items into product lines EXCEPT:a.package uniformityb.varying qualityc.advertising economiesd.efficient sales and distributione.standardized components

ANS:BEquivalent qualitynot varying qualityis considered an advantage because purchasers usually expect and believe that all products in a line are about equal in quality.


41.Campbells can talk about its soups being Mm! Mm! Good! and promote its entire line. This is an example of:a.macroeconomicsb.package uniformityc.advertising economiesd.guerilla marketinge.economies of scale

ANS:CEquivalent quality is considered an advantage because purchasers usually expect and believe that all products in a line are about equal in quality.


42.ForeverLawn has recently added two new synthetic lawn products. One of the products includes fake brown grass that makes the synthetic lawn look more realistic as it appears to have some patches of brown thatch. The other product is K9Grass for consumers that have pet dogs. The addition of these two new synthetic grass products is a way for ForeverLawn to increase its:a.line widthb.breadth mixc.mix widthd.line depthe.mix depth

ANS:DProduct line depth is the number of product items in a product line.


43.Most people recognize Crayola as a brand of crayon, but Crayola also markets paints, chalk, pencils, markers, toys, coloring books, clothing, and even software. All these products are part of Crayolas:a.marketing equityb.product linec.product mixd.line depthe.product modification

ANS:CAn organization's product mix includes all of the products that it sells.


44.Procter & Gamble manufactures Tide laundry detergent, the best-selling brand in the United States. But is also offers Tide to Go, which is a stick product consumers can use to clean a spot on their clothing between washings, and small travel packets of Tide detergent. These other products are part of Tides product line:a.widthb.breadthc.mixd.depthe.synergy

ANS:DProduct line depth is the number of product items in a product line.


45.There are a number of toothpastes marketed under the Crest brand including Cavity-Protection Crest, Sensitive-Teeth Protection Crest, Baking Soda Crest, Tartar Protection Crest, and Crest for Kids. This is an example of Crests:a.product line widthb.product mixc.product line depthd.product mix inconsistencye.marketing mix

ANS:CProduct line depth is the number of product items in a product line.


46.Procter & Gamble (P&G) is a well-known producer of home and beauty products. Along with home and beauty products, P&G also markets pet products, prescription drugs, and small appliances. This range of products provides the company with product _____.a.line heightb.line consistencyc.mix widthd.line depthe.mix depth

ANS:CProduct mix width refers to the number of different product lines that an organization offers for sale.


47.Firms increase the depth of their product lines for all of the following reasons EXCEPT:a.to attract buyers with different preferencesb.to diversify riskc.to further segment the marketd.to capitalize on economies of scalee.to even out seasonal sales patterns

ANS:BFirms increase the width of their product mix to diversify risk.


48.Changing one or more of a products characteristics is called:a.product modificationb.product repositioningc.product adjustmentd.planned obsolescencee.product extension

ANS:AThis is the definition of product modification.


49.Which of the following is an example of a product modification?a.Lowering the price of textbooksb.Dropping a product from the product linec.Changing the color of a laundry detergentd.Changing the amount of management time spent overseeing productione.Increasing the number of distribution outlets

ANS:CProduct modification entails changing one or more of a product's characteristics.


50.Recently Apple updated its iPod Touch product, expanding its storage from 8 GB to 32 GB. Enlarging the iPod Touchs storage capacity is an example of a:a.product modificationb.brand mix extensionc.product diversificationd.brand repositioninge.demographic modification

ANS:AA product modification changes one of more of a products characteristics--in this example, its storage capacity.


51.Which type of product modification changes a products dependability or durability?a.Functionalb.Stylec.Aestheticd.Qualitye.Primary

ANS:DThis is a description of a quality modification.


52.A go-cart manufacturer recently added shock absorbers to make the ride in its go-carts smoother. It has not changed its prices. This is a(n) _____ modification.a.upsaleb.stylec.dysfunctionald.repositioninge.quality

ANS:EQuality modifications entail changing a product's dependability or durability.


53.When Honda automobiles first entered the U.S. market, they were small and not very durable. However, over the years, Honda has modified its automobiles to be one of the most dependable cars on the market. This change in dependability and durability is representative of which type of product modification?a.Style modificationb.Planned obsolescencec.Functional modificationd.Quality extensione.Quality modification

ANS:EQuality modifications involve a change in a products dependability or durability.


54.Which type of product modification changes a products versatility, effectiveness, convenience, or safety?a.Qualityb.Plannedc.Functionald.Stylee.Use

ANS:CThis is a description of functional product modification.


55.When Procter & Gamble removed potentially dangerous dyes and chemicals from its Tide detergent product and introduced Tide Free they were making a(n):a.product line contractionb.quality modificationc.aesthetics modificationd.obsolescence factore.functional modification

ANS:EFunctional modification is a change in a products versatility, safety, convenience, or effectiveness.


56.Which type of product modification is an aesthetic product change?a.Functionalb.Qualityc.Repositioningd.Stylee.Planned

ANS:DStyle modifications are aesthetic product changes rather than quality or functional changes.


57.A style modification is a(n):a.change in the product's durability or dependabilityb.safety improvementc.aesthetic product changed.way to add conveniencee.improvement in product versatility and effectiveness

ANS:CStyle modifications change the aesthetics of a product rather an its quality or functionality.


58.One of the leading manufacturers of choir robes has added different types of trim and fabric it uses in making the robes. The company has not changed its prices. This is a(n) _____ modification.a.styleb.obsolescencec.qualityd.repositioninge.upward extension

ANS:AStyle modifications are esthetic changes rather than a quality or functional change.


59.Which of the following statements about planned obsolescence is true?a.Environmentalists support planned obsolescence.b.A company that is interested in producing a quality product would never engage in planned obsolescence.c.Style modification creates planned obsolescence.d.Planned obsolescence is not an ethical issue.e.All of the statements about planned obsolescence are true.

ANS:CPlanned obsolescence is the practice of modifying products so that those that have already been sold become obsolete before they actually need replacement, and style modifications are commonly used to motivate customers to replace products before they are worn out.


60.A regional utility company needs to change consumers' perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal?a.Contraction of the number of services offered by the utility companyb.Adding new services to its product linec.Repositioningd.Disintermediatione.Use of product cannibalization

ANS:CRepositioning is a firm's attempt to change customer perceptions of a product.


61.Apple Computer Inc. recently dropped the Computer from their name to become Apple Inc. This was a part of the companys _____ away from simply being perceived a computer company.a.quality modificationb.aesthetic modificationc.demarketingd.repositioninge.functional extension

ANS:DRepositioning involves changing consumers perceptions of a product.


62.Over the years Cadillac has become to be thought of as your grandparents car. The new Cadillac ads showing a beautiful young woman driving a Cadillac along with the statement, When you turn your car on, does it turn you on? is an example of marketing designed to help _____ Cadillac as a car for todays younger driver.a.diversifyb.repositionc.developd.expande.display

ANS:BRepositioning is changing consumers' perceptions about a brand.


63.Adding additional products to an existing product line in order to compete more broadly in the industry is referred to as:a.product line extensionb.product modificationc.planned obsolescenced.repositioninge.cannibalization

ANS:AThis describes product line extension.


64.Over the years, Crest has added a variety of different toothpastes to its brand, such as Cavity-Protection Crest, Sensitive-Teeth Protection Crest, Baking Soda Crest, Tartar Protection Crest, and Crest for Kids. These additions are examples of:a.product line extensionsb.product portfolio width adjustmentsc.product item contractionsd.SBU expansionse.product mix widths

ANS:AProduct line extension occurs when a firm adds a product to an existing product line to compete more broadly in the industry.


65.When Coca-Cola introduced Coke Zero, this was an example of a _____ strategy.a.repositioningb.product line extensionc.cannibalizationd.disintermediatione.demarketing

ANS:BProduct line extension is the adding of additional products to an existing product line in order to compete more broadly in the industry.


66.Cover Girl and Revlon are both recognized as leading manufacturers of cosmetics. Both companies have recently introduced cosmetics for the over-50 woman who does not have the same concerns as a 20-year-old. The introductions of these cosmetics are examples of the implementation of a _____ strategy.a.portfolio breadth expansionb.product portfolio width adjustmentc.product item contractiond.product line extensione.repositioned marketing mix

ANS:DProduct line extension occurs when a firm adds a product to an existing product line to compete more broadly in the industry.


67.At one point Heinz made ketchup in multiple colors including red, green, purple, pink, orange, and teal. While they were popular for a few years, consumers stopped buying the unusual colors and Heinz has dropped back to just making red ketchup. This is an example of the implementation of a _____ strategy.a.repositioningb.cannibalizationc.product line extensiond.product line contractione.divestment

ANS:DProduct line contraction occurs when a company stops making a product.

PTS:1REF:363OBJ:10-3TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model StrategyMSC:BLOOMS Level III Application

68.Which of the following is a symptom of product line overextension?a.Overuse of standardized componentsb.Manufacturing or marketing resources are disproportionately allocated to slow-moving productsc.Strong economy of scaled.Planned obsolescence of certain productse.All of the above.

ANS:BOther symptoms include products not contributing to profits, products cannibalizing sales of other items in the line, and products becoming obsolete.

PTS:1REF:363OBJ:10-3TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model StrategyMSC:BLOOMS Level II Comprehension

69.A _____ is a name, term, symbol, design, or combination thereof that identifies a sellers products and differentiates them from competitors products.a.brand markb.trademarkc.brand named.UPCe.brand

ANS:EThis is the definition of a brand.


70.A _____ is the part of the brand that can be spoken.a.brand equityb.service markc.trademarkd.brand namee.certification mark

ANS:DBrand names are the part of the brand that can be spoken, including letters, words, and numbers.


71.The _____ is the element of a brand that cannot be spoken.a.brand markb.trademarkc.brand equityd.quality marke.intangible product

ANS:AWell-known symbols for brands are called their brand marks, but these elements cannot be spoken.


72.The well-known Nike swoosh is an example of a:a.quality markb.product linec.brand named.brand marke.manufacturers brand

ANS:DWell-known symbols for brands are called their brand marks, but these elements cannot be spoken.


73.A Boston diamond distributor has developed the first branded diamond called Hearts on Fire to help smaller retailers counter the volume jewelers' aggressive price discounting. This move is meant to:a.take away trademark rightsb.build product identity and customer loyaltyc.create a catchy phrase to promote diamondsd.combat the quality appeal of generic productse.combat low-cost production of generic brands

ANS:BThis represents one purpose of branding.


74.The value of company and brand names is referred to as:a.brand equityb.brand loyaltyc.brand powerd.brand equivalencye.brand strength

ANS:AA brand that has high awareness, perceived quality, and brand loyalty among customers has high brand equity.


75.According to recent market research, Google is one of the most valuable brands in the world. According to this research, the company and its well-known name are worth over $100 billion. This research indicates that Google has high:a.brand loyalty hierarchyb.evoked setc.brand quality standardsd.perceptual expectationse.brand equity

ANS:EThe term brand equity refers to the tremendous value of company and brand names.


76.A(n) _____ refers to brands where at least one-third of the product is sold outside the home country.a.evoked setb.global brandc.equity brand named.master brande.ethnocentric trademark

ANS:BThis is the definition of a global brand.


77.Rexona, marketed by Unilever (a Dutch company), is the world's number-one deodorant brand. The brand is a leader in Europe, South America, Asia, Africa, and the Middle East. Rexona is an example of a:a.master brandb.global brandc.cannibalized brandd.standard brande.family brand

ANS:BAt least one-third of a global brand is sold outside its home country.


78.What is the best generator of repeat sales?a.Advertisingb.Sales promotionc.Brand equityd.Satisfied customerse.Global brand

ANS:DSatisfied customers are the best generator of repeat sales.

PTS:1REF:364OBJ:10-4TOP:AACSB Reflective ThinkingKEY:CB&E Model CustomerMSC:BLOOMS Level VI Evaluation

79.A consumer who consistently and repeatedly purchases the same brand is said to have:a.brand loyaltyb.product equityc.product loyaltyd.product repetitione.store loyalty

ANS:ABrand loyalty is the consistent preference of the same brand by the same consumer. Product loyalty could easily involve a variety of brands.

PTS:1REF:364OBJ:10-4TOP:AACSB Reflective ThinkingKEY:CB&E Model CustomerMSC:BLOOMS Level I Knowledge

80.Brand loyalty can:a.increase product diffusionb.encourage competitionc.shorten the amount of time a product spends in the maturity staged.help ensure repeat salese.sell a bad product

ANS:DBrand loyalty ensures repeat and regular sales.

PTS:1REF:364OBJ:10-4TOP:AACSB Reflective ThinkingKEY:CB&E Model CustomerMSC:BLOOMS Level II Comprehension

81.The brand name of a manufacturer is known as a(n) _____ brand.a.privateb.manufacturersc.individuald.captivee.family

ANS:BThis is the definition of a manufacturers brand, which is also referred to as a national brand.


82.Vicks, Nestl, Pepsi, and Toyota products are examples of _____ brands because of who owns them.a.manufacturers'b.privatec.familyd.individuale.master

ANS:AManufacturers brands are the brand name of a manufacturer.


83.A(n) _____ brand is one owned by the wholesaler or retailer.a.intermediateb.privatec.genericd.corporatee.primary

ANS:BA private brand, also known as a private label or store brand, is a brand name owned by a wholesaler or a retailer.


84.Target stores sell many premium foods under the name Archer Farms. This brand can only be purchased in Target stores and is an example of a(n) _____ brand.a.manufacturers'b.internationalc.familyd.privatee.corporate

ANS:DA private brand is one owned by the wholesaler or retailer.


85.Which type of private label brand carries no evidence of a retailers affiliation, is manufactured by a third party, and is sold exclusively at the retailer?a.A captive brandb.A complementary brandc.A cooperative brandd.An exclusive brande.A generic brand

ANS:AThis is the definition of a captive brand. This strategy allows the retailer to ask a price similar to manufacturers brands.


86.A small chain of supermarkets in the western United States sells only manufacturers brands. Which of the following is one of the arguments you could have used to dissuade the supermarket chain owner from selling only manufacturers brands?a.A well-known manufacturers brand will not enhance the chain's image.b.Manufacturers rarely spend money advertising the brand name to consumers.c.Manufacturers can decide to drop a brand or reseller at any time.d.Manufacturers force the chain to carry a large in-store inventory.e.Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic at best.

ANS:CManufacturers can decide to drop a brand or reseller at any time. See Exhibit 10.5.


87.Which of the following statements describes an advantage to retailers associated with developing their own brands?a.Dealers must market the brand, thus cutting into the gross margin.b.Higher profits are available on private brands.c.Private brands, particularly those owned by discounters, are perceived to be of a higher quality.d.Dealers often buy in large quantities and thus always have a ready supply.e.Private brands are normally delivered more promptly by the manufacturer.

ANS:BPrivate brands carry higher margins because manufacturers do not need to promote them. See Exhibit 10.5.


88.When a company uses different brand names for different products, it is using _____ branding.a.privateb.genericc.compoundd.familye.individual

ANS:EThis is the definition of individual branding.


89.Heinz is a leading global food manufacturer. It manufactures and markets Farleys (baby food), Jack Daniels Sauces, and Weight Watchers Foods (diet/slimming meals and supplements). The use of these brand names instead of the Heinz name is an example of a(n) _____ branding strategy.a.individualb.synergisticc.umbrellad.familye.piggyback

ANS:AIndividual branding is using different brand names for different products.


90.Procter & Gamble makes Gain laundry detergent for people who like a strong scent and Dreft for those who want a gentle detergent for their babys clothes. It is using a(n) _____ strategy.a.individual brandingb.family brandingc.combination brandingd.trademarked brandinge.private branding

ANS:AAn individual brand strategy allows for development of a unique brand image so as to distinguish the different products.


91.When a company markets several different products under the same brand name, it is referred to as a(n) _____ brand.a.familyb.genericc.bargaind.dealere.umbrella

ANS:AThis is the definition of family branding.


92.Most people recognize Butterball as a brand of turkey, but Butterball brand is also found on fresh turkey breast cuts, turkey sausages, ground turkey, lunchmeat cold cuts, fresh marinated bone-in, boneless, and whole chicken, frozen chicken products, and Butterball stuffing and gravy mixes. Butterball uses:a.dealer brandingb.brand groupingc.family brandingd.generic brandinge.cobranding

ANS:CFamily branding refers to the strategy of marketing several different products under the same brand name.


93.Which of the following entails placing two or more brand names on a product or its package?a.Family brandingb.Private brandingc.Dual-code brandingd.Cobrandinge.Complimentary branding

ANS:DThis is the definition of cobranding.


94.Maureen purchased a package of Bounce fabric sheets with Febreeze citrus scent. Since both brands were prominently listed on the package, this would be an example of:a.equity brandingb.cobrandingc.conjunctive brandingd.private brandinge.complementary branding

ANS:BUsing two or more brand names in conjunction is co-branding.


95.Jennifer purchased Cascade 2in1 ActionPacs for her dishwasher. The packaging said the product combines the scrubbing power of Cascade with the grease fighting power of Dawn dishwashing detergent. What type of cobranding does this product represent?a.Cooperativeb.Complementaryc.Piggybackd.Ingrediente.Synergistic

ANS:DUsing two or more brand names in conjunction is cobranding. Ingredient branding identifies the additional brand that makes up part of the product.


96.Rosa's husband Phil has a cold. Rosa went to the store to buy something that would help Phil sleep. Rosa purchased Breathe Right nasal strips embedded with Vicks mentholated vapor rub. The package showed both the Breathe Right and the Vicks brand names. This is an example of _____ branding.a.equityb.ingredientc.familyd.privatee.functional

ANS:BUsing two or more brand names in conjunction is cobranding. Ingredient branding identifies the additional brand that makes up part of the product.


97.Which of the following describes cooperative branding?a.When advertising identifies a brand as a part that makes up another productb.When two brands receive equal treatment, borrowing from each others brand equityc.When products are advertised together to suggest usage togetherd.When advertising identifies a brand that should not be used with another producte.When advertising identifies a family of brands

ANS:BCooperative branding occurs when two brands receive equal treatment and borrow from each others brand equity.

PTS:1REF:366-367OBJ:10-4TOP:AACSB Reflective ThinkingKEY:CB&E Model ProductMSC:BLOOMS Level II Comprehension

98.Betty Crocker brand sells a Hersheys Ultimate Fudge cake mix that prominently features both the Betty Crocker and Hersheys names and logos on the box. This is an example of _____ cobranding.a.cooperativeb.ingredientc.umbrellad.complementarye.family

ANS:ACooperative branding occurs when two brands receive equal treatment and borrow from each others brand equity.

PTS:1REF:366-367OBJ:10-4TOP:AACSB Reflective ThinkingKEY:CB&E Model ProductMSC:BLOOMS Level III Application

99.Butterball, a well-known brand of turkey, advertised Ocean Spray cranberry sauce in its magazine ads and depicted suggested usage with its turkey. This is an example of which type of cobranding?a.ingredientb.complementaryc.familyd.captivee.product-use

ANS:BWith complementary branding, products are advertised or marketed together to suggest usage.


100.A _____ is a legal term indicating the owner's exclusive right to use a brand name or part of a brand.a.trademarkb.patentc.brandd.private brande.right of warranty

ANS:AThis is the definition of a trademark.


101.Which of the following may qualify for trademark protection?a.Shapes, such as the Coca-Cola bottleb.Catchy phrases, such as Every kiss begins with Kayc.Abbreviations, such as Budd.Sounds, such as Intels famous five-note jinglee.All of the above.

ANS:EParts of a brand or other product identification may qualify for trademark protection, including all of the examples listed.


102.When a product name becomes generic:a.the firm must use black-and-white packagingb.competitors are prohibited by law from using the trademarkc.the price will have to drop to appeal to lower-income consumersd.the product name is no longer recognized as the exclusive property of one firme.a firm can reapply for exclusive trademark protection at the U.S. Patent Office

ANS:DA generic product name can be used by any firm and is public property.


103.Kleenex is a brand name for a well-known brand of facial tissue. People often refer to Kleenex as if it were the product name. The company that makes Kleenex may someday find its brand name becoming a(n):a.equity brandb.certified namec.trademarkd.faux brande.generic product name

ANS:EIf a brand name becomes synonymous with the product category, it can become generic.


104.All of the following are functions of packaging EXCEPT:a.contain and protect the productb.guarantee product qualityc.facilitate recycling and reduce environmental damaged.promote the producte.facilitate product storage, use, and convenience

ANS:BMore than packaging is necessary to guarantee product quality.


105.Sherwin-Williams' Dutch Boy paint has packaging that is getting rave reviews. The new Twist & Pour paint is packaged in an all-plastic gallon container with an easy twist-off lid, comfortable side handle, and even a pouring spout. There's no other paint product like it on the market. This innovative packaging was most likely designed for which of the following functions?a.To facilitate product use and convenienceb.To contain and protect the productc.To reduce environmental damaged.To facilitate recyclinge.To promote the product

ANS:AThe other functions of packaging are containment and protection, promotion, the facilitation of recycling, and the reduction of environmental damage.


106.Labels that contain standard promotional claims like "new," "improved," and "super" are examples of _____ labels.a.descriptiveb.functionalc.repositioningd.informationale.persuasive

ANS:EPersuasive labels primarily focus on a promotional theme or logo and try to sell the customer on a new or changed feature.


107.The two types of package labeling in common usage today are:a.informational and persuasiveb.promotional and nonpromotionalc.functional and persuasived.government-mandated and seller-controllede.motivational and required

ANS:APersuasive labeling focuses on a promotional theme or logo, whereas information labeling is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.


108.Labeling that is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase is referred to as:a.informational labelingb.persuasive labelingc.cognitive labelingd.rational labelinge.restrictive labeling

ANS:AThis is the definition of informational labeling.


109.Statements on Kashi cereals and breakfast bars stating that the they have no artificial colors, flavors, or preservatives would most likely be an example of _____ labeling.a.primaryb.requiredc.informationald.functionale.environmental

ANS:CInformational labeling is designed to help consumers make proper product selections.


110.Mia's new raincoat contains a label that reads "Professional dry clean only." This is an example of a(n)_____label.a.datab.union mandatedc.persuasived.informationale.functional

ANS:DInformational labeling is designed to help consumers in making proper product selections and to lower cognitive dissonance after the purchase. These labels often include care and use information and an explanation of construction standards.


111.Which of the following statements about bar codes is true?a.Bar codes are also called universal pricing codes (UPCs).b.Bar codes were first used in 2000.c.Bar codes can be read by optical scanners.d.Bar codes cannot be used as a marketing research tool.e.All of these statements about bar codes is true.

ANS:CBar codes are the same as universal product codes. They were first developed in 1974. Also bar codes can be used in single-source research.


112.Universal product codes (UPC) can perform all of the following functions EXCEPT:a.allow scanners to match codes with brand names, package sizes, and pricesb.print product and price information on cash register tapesc.assist retailers in preparing records of customer purchasesd.allow retailers to accurately track sales and control inventoriese.provide the detailed nutritional information required by the FDA

ANS:EUniversal product codes do not contain nutritional information.


113.Advantages of this global branding strategy include greater identification of the product from market to market and ease of coordinating promotion from market to market.a.adaptationb.one brand name everywherec.piggybackingd.different brand names in different marketsee.product modification

ANS:BThis strategy is useful when the company markets mainly one product and the brand name does not have any negative connotations in the local market.

PTS:1REF:372OBJ:10-6TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model International PerspectiveMSC:BLOOMS Level II Comprehension

114.Three aspects of packaging that are especially important in international marketing are labeling, aesthetics, and:a.priceb.length of distribution channelc.counterfeiting potentiald.warrantiese.climate considerations

ANS:EExtreme climates and long-distance shipping necessitate sturdier and more durable packages fro goods sold overseas.


115.Green is a sign of danger in some countries, so a U.S. firm that sells its goods in those countries would probably want to avoid using green on its packaging. Which aspect of packaging is addressed by this issue?a.convenienceb.safetyc.descriptive labelingd.aestheticse.informational labeling

ANS:DCultural traits in certain countries require attention to package aesthetics.


116.Which type of warranty is a written guarantee?a.Completeb.Expressc.Impliedd.Explicite.Primary

ANS:BThis is the definition of an express warranty.


117.Well-known retailer Lands' End offers a written satisfaction guarantee on all merchandise it sells. In other words, Lands' End gives its customers a(n) _____ warranty.a.impliedb.descriptivec.limitedd.fulle.express

ANS:EAn express warranty is a written guarantee.


118.The label on Darwin's new blazer that reads "Will Not Shrink" is an example of a(n) _____ warranty.a.descriptiveb.limitedc.impliedd.expresse.superfluous

ANS:DAn express warranty is any written guarantee.


119.The statement on the toothpaste box that brushing twice a day with this paste will remove 90 percent of all tartar from the user's teeth is an example of a(n):a.implied warrantyb.functional labelc.UPC disclaimerd.express warrantye.universal warranty

ANS:DAn express warranty is any written guarantee.


120.Shane had every reason to believe the antacid he purchased would relieve his stomach problems if he followed the directions on the box. This is an example of a(n):a.implied warrantyb.functional labelc.persuasive labeld.express warrantye.universal warranty

ANS:AAn implied warranty is an unwritten guarantee that the good or service is fit for the purpose for which it was sold. All sales have an implied warranty under the Uniform Commercial Code.


121.Under the _____, all sales have an implied warranty.a.Label Lawb.Lanham Actc.Bill of Rightsd.Good Housekeeping Seale.Uniform Commercial Code

ANS:EThe Uniform Commercial Code regulates all sales.


Most people recognize Campbells as a brand of soup, but Campbells also manufactures Pace Picante Sauce, Pepperidge Farms products, Prego Sauce, Swanson Broth, and V8 juice. Campbells International division offers more than 20 brands of soups, sauces, beverages, and baked snacks in the Asia Pacific region, Greater Europe and Latin America. Products such as Arnotts biscuits and crackers and Bi Band soups are well known overseas. Campbells products are sold in more than 120 countries.

122.Refer to Campbells. Marco likes to pack a V8 juice in his lunch bag every day. Based on its intended use, Marcos V8 juice could best be classified as _____ products.a.industrialb.consumerc.businessd.conveniencee.unsought

ANS:BA consumer product is purchased to satisfy an individual's personal wants.


123.Refer to Campbells. Campbells Creamy Chicken Soup could be called a:a.product mixb.product itemc.product depthd.product widthe.product consistency

ANS:BA product item is a specific version of a product that can be distinguished as a distinct offering among Campbells products


124.Refer to Campbells. All the products that Campbells sellsboth domestically and worldwideis the company's product:a.itemb.depthc.widthd.mixe.marketing consistency

ANS:DThe organization's product mix includes all the products it sells.


125.Refer to Campbells. The soups, juices, broths, sauces, and baked goods sold by Campbells compose the companys product mix:a.depthb.lengthc.widthd.reliabilitye.consistency

ANS:CProduct mix width refers to the number of product lines that an organization offers.


126.Refer to Campbells. If a marketer looks only at the canned soups produced by Campbells and notes the brands and items only within that category, he or she is analyzing the _____ of the product line.a.widthb.lengthc.depthd.levelse.consistency

ANS:CProduct line depth is the number of product items in a product line.


127.Refer to Campbells. Of the following what is probably Campbells biggest labeling concern in its international markets?a.printing accurate warranties on each labelb.correctly affixing the UPC code on each labelc.eliminating any persuasive labeling as such labels are not effective on the international marketd.making sure the labels are aesthetically pleasinge.translating ingredient, promotional, and instructional information

ANS:EPTS:1REF:373OBJ:10-6TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model International PerspectiveMSC:BLOOMS Level III Application

Choice Homes, Inc., based in Texas, built its reputation by building high-quality new homes, often at prices less than "used" ones. Choice Homes used mass-purchasing power, innovative high-tech communications among employees to coordinate the building process, and other entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the "American Dream" of home ownership for the same price as rent. Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes, especially for current Choice home owners who are ready to "move up" to a larger home. Recently, Choice Homes started a third line of homes called "Reflections," which are expensive, custom-designed homes located in exclusive, prestigious neighborhoods.

128.Refer to Choice Homes, Inc. Kurt McKinney has just received a large inheritance and wants to have his "dream" home built. He knows exactly the architectural design he wants. He wants a particular Reflections home. The type of consumer product he wishes to buy is best classified as a(n):a.shopping productb.convenience productc.nondurable goodd.specialty producte.unsought product

ANS:DMcKinney is searching for an expensive item for which he will not accept a substitute.


129.Refer to Choice Homes, Inc. The three different brands of homes (Choice, Choice Classic, and Reflections) represent the firm's:a.line portfoliob.mix depthc.line breadthd.product linee.product itemization

ANS:DA group of closely related product items is a product line.


130.Refer to Choice Homes, Inc. Choice Homes is considering acquiring a mortgage and title company to add to its marketing power in selling homes. This acquisition would expand the firm's:a.product mix widthb.line breadthc.product item widthd.product line lengthe.product breadth

ANS:ABy adding more product lines, Choice is expanding its product mix.


131.Refer to Choice Homes, Inc. Choice Homes is considering the development of a new category of small homes designed to replace low-income housing in the inner city. This strategy represents a:a.quality modificationb.product line extensionc.style modificationd.product line contractione.functional modification

ANS:BModifications are for existing product lines and items. A new line represents an extension.


132.Refer to Choice Homes, Inc. In a recent survey, Choice Homes' customers indicated that they thought their homes were high quality, made lots of referrals to friends, and planned to buy a Choice Classic or Reflections home in the future. The customers' reactions indicate that Choice Homes has achieved:a.generic statusb.private brand statusc.brand equityd.superficial skillse.brand superiority

ANS:CBrand equity indicates the brand has value because of its high awareness, perceived quality, and brand loyalty among customers.


James Hardie began selling fiber cement siding products in the United States in 1989 to leading builders, lumberyards, and home improvement centers. Even though ads guaranteed the product would not rot or crack for 50 years, many builders hated the product. It was heavy to install, and it showed every flaw in a bad framing job. In 1997, Hardie decided to run ads in traditional lifestyle magazines and emphasize the emotional appeal of houses made with strong, weather-resistant materials. Soon consumers began asking their builders or remodelers to use the product. Trade ads were used to explain how builders could take advantage of the interest created by the ads in lifestyle magazines. By 2000, the Hardieplank was the number one brand siding in North America. James Hardie is now the third most recognized brand of building material in the world.

133.Refer to Hardie Siding Products. Hardieplank siding is best described as a(n) _____ product.a.businessb.specialtyc.unsoughtd.shoppinge.convenience

ANS:AThis product is used to manufacture houses. Consumers are not purchasing it directly; contractors (businesses) purchase the siding to use on clients projects.


134.Refer to Hardie Siding Products. Hardieplank siding is an example of a product:a.lineb.mixc.reference pointd.iteme.standardization

ANS:DHardieplank is a specific item made by the company.


135.Refer to Hardie Siding Products. Hardie now makes multiple types of fiber-cement siding products. There are different widths, textures, and profiles. The different types of siding the company makes are called its product:a.lineb.mixc.reference pointd.iteme.standardization

ANS:AThe siding is a group of closely related products.


136.Refer to Hardie Siding Products. By changing the focus of its promotion from the building industry to homeowners who saw their homes as sources of security, warmth, and stability, Hardie Siding used a _____ strategy.a.market penetrationb.repositioningc.product penetrationd.harvestinge.divestment

ANS:BThe company changed consumers' perceptions of the brand.


137.Refer to Hardie Siding Products. Since all of the siding products sold by Hardie are sold under the Hardie brand name, it is clear that the company uses a _____ strategy.a.family brandingb.private brandingc.business brandingd.cobrandinge.repositioning

ANS:AA company using family branding markets several different products under the same brand name.


138.Refer to Hardie Siding Products. What type of warranty is Hardie offering in its promotions?a.impliedb.responsivec.intangibled.expresse.valid

ANS:DThere is a written guarantee in the ads.

PTS:1REF:373OBJ:10-7TOP:AACSB Reflective ThinkingKEY:CB&E Model Product | CB&E Model PromotionMSC:BLOOMS Level III Application

When consumers think of Nestl, they probably think of chocolate. Historically, though, Nestls confectionary business is its weakest area. Based in Switzerland, it is the worlds largest food company, with a brand arsenal of Nescafe, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestl is hoping to become the worlds leading health, nutrition, and wellness firm by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestl wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining their product mix by selling underperforming items or lines that do not fit its new direction. Critics claim this new focus could hurt the companys existing brands if the new products fail. Additionally, it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company.

139.Refer to Nestl. Some of Nestls products include bottled water, candy, and coffee, which would be classified as what type of consumer products?a.heterogeneous shopping productsb.homogeneous shopping productsc.convenience productsd.specialty productse.unsought products

ANS:CConvenience products are relatively inexpensive items that merit little shopping effort.


140.Refer to Nestl. Nestls quest is to make some of its existing products more nutritious and provide a health benefit. This is an example of which type of product modification?a.style modificationb.extensive modificationc.brand modificationd.ingredient modificatione.functional modification

ANS:EFunctional modifications involve changes in a products versatility, effectiveness, convenience, or safety. Nestl is attempting to make its existing products more versatile and effective.


141.Refer to Nestl. After developing these new, functional products, Nestl will have to change consumers perceptions of its brands because it is known for indulgence, not wellness. Nestl will have to _____ itself.a.reinventb.repositionc.renamed.modifye.standardize

ANS:BRepositioning involves changing consumers perceptions of a brand.


142.Refer to Nestl. What adjustment to its product mix is Nestl doing when it removes underperforming items from the market?a.product line extensionb.product line contractionc.product pruningd.product line retractione.functional modification

ANS:BProduct line contractions involve removing items from the product mix.


143.Refer to Nestl. One new product Nestl intends to introduce includes fiber added to chocolate. The packages will include the fact that each chocolate bar contains 5 grams of fiber and the various health benefits of including more fiber in ones diet. Which form of labeling will this perform?a.persuasiveb.informationalc.regulatoryd.competitivee.perceptive

ANS:BThe two forms of labeling are persuasive and informational. This is an example of informational labeling, which is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.


ESSAY

1.How would a marketer define the term product?

ANS:A product is everything, both favorable and unfavorable, that a consumer receives in an exchange. A product may be a tangible good, a service, an idea, or any combination of these three.

PTS:1REF:357OBJ:10-1TOP:AACSB CommunicationKEY:CB&E Model ProductMSC:BLOOMS Level V Synthesis

2.Products can be classified as either business/industrial or consumer products. Explain what distinguishes business products from consumer products and why it is important to understand this distinction.

ANS:A product's classification depends on the buyer's intentions. Business products are purchased for (1) use in the production of other goods or services, (2) use in an organization's operations, or (3) resale to other customers. Consumer products are purchased to satisfy an individual's personal wants. The same item can be classified as either a business or a consumer product depending on the intended use.

It is important to know about these product classifications because business and consumer products are marketed differently. These two target markets require different distribution, promotion, and pricing strategies.


3.Name and briefly define the four categories of consumer products. For each category, list three specific examples of products that would most likely be classified in that category.

ANS:CONVENIENCE PRODUCTS are relatively inexpensive items that require little shopping effort. The products are bought regularly, usually without significant planning. Convenience products may include candy, soft drinks, combs, aspirin, small hardware items, dry cleaning, car wash services, and so on.

SHOPPING PRODUCTS are usually more expensive than convenience products and are found in fewer stores. Consumers spend some effort comparing brands and stores. Shopping products may include washers, dryers, refrigerators, televisions, furniture, clothing, housing, choice of university, and so on.

SPECIALTY PRODUCTS are those exclusive items for which consumers are willing to search extensively. Consumers are extremely reluctant to accept substitutes for specialty products. Brand names and service quality are important. Fine watches, luxury cars, expensive stereo equipment, gourmet restaurants, and specialized medical services could all be considered specialty products.

UNSOUGHT PRODUCTS are those that the buyer does not know about or does not actively seek to buy. These products include insurance, burial plots, encyclopedias, and so on.

PTS:1REF:358-360OBJ:10-2TOP:AACSB CommunicationKEY:CB&E Model ProductMSC:BLOOMS Level V Synthesis

4.What is the difference between a homogeneous shopping product and a heterogeneous shopping product? Give specific examples of products that fit into each category to help illustrate your answer.

ANS:Homogeneous shopping products are those that consumers see as being basically the same. The main purpose of shopping is to find the lowest-priced product that has the required features. Appliances and televisions are homogeneous shopping products for many people.

Heterogeneous shopping products are those that consumers see as different in terms of quality, style, suitability, and lifestyle compatibility. Comparisons among heterogeneous shopping products are difficult because the alternatives possess unique features as well as different prices and quality levels. These products may include furniture, clothing, housing, and the choice of a university.


5.The Crayola brand is currently placed on a wide variety of products, including crayons (standard and fluorescent colors packaged in a wide variety of box sizes), markers (regular and washable), paints (watercolor and acrylic), scissors, glue, and children's clothing. Using Crayola as an example, describe the concepts of product item, product line, and product mix.

ANS:A PRODUCT ITEM is a specific version of a product that can be designated as a distinct offering among an organization's products. Any single product identified in the Crayola example could be an item. For example, a crayon package with 64 colors and a sharpener, or an eight-pack of washable markers, and so on.

A PRODUCT LINE is a group of closely related products offered by the organization. One could identify two Crayola product lines: arts and crafts, and clothing. Alternatively, three product lines could be identified: clothing, drawing/painting items, and supplies. Finally, as many as six product lines could be interpreted: crayons, markers, paints, scissors, glue, and clothing.

A PRODUCT MIX includes all of the products and item varieties that the company offers for sale. All Crayola items and package variations identified above make up Crayola's product mix.


6.Discuss the benefits for organizations by organizing related items into product lines.

ANS:ADVERTISING ECONOMIES. Product lines provide economies of scale, because several products can be advertised under the umbrella of the line. Additionally, advertising a product line can enhance the corporate name.

PACKAGE UNIFORMITIES. All packages in the line may have a common look without causing any product item to lose its individual identity. Thus, one item in a line can advertise another.

STANDARDIZED COMPONENTS. Product lines provide an opportunity to standardize components, thus reducing manufacturing and inventory costs.

EFFICIENT SALES AND DISTRIBUTION. Product lines enable sales personnel to provide a full range of product alternatives to their customers. Distributors and retailers are often more willing to stock the company's products if a full line is offered. Transportation and warehousing costs are also likely to be less for product lines than for a collection of individual items.

EQUIVALENT QUALITY. A brand name symbolizes a certain quality level to buyers. Purchasers expect all products in a line to be of comparable quality, so further evaluation of individual product items need not take place.


7.Smith-Binney's Crayola makes various products, all targeted toward elementary school children. Drawing, painting, and supply items are sold at convenience stores, toy stores, and grocery stores. Clothing is sold in department stores. Crayola might arrange its product items in the following way:

Drawing/PaintingSuppliesTextilesCrayons, regular waxCrayon sharpenersBoys' clothingCrayons, fluorescentPaint brushesGirls' clothingMarkers, regularScissorsBed and bath linensMarkers, washableGlue

Watercolor paintsStorage cases

Acrylic paints

Chalk

What is the product mix width for Crayola? What is its product line depth?

ANS:Product mix width refers to the number of product lines that an organization offers. In this case, the width of the product mix is three. Product line depth is the number of product items in a product line. There are seven items in the drawing/painting line, five items in the supplies line, and three items in the clothing line.


8.Compare and contrast the three types of product modifications and give an example of how each could be implemented.

ANS:QUALITY MODIFICATIONS entail changing the product's dependability or durability. A company could reduce the product quality of some of its offerings to enable a lower price, which would appeal to a broader or price-sensitive target market. It could also increase quality, which would give the corporation a competitive advantage, encourage brand loyalty, allow higher prices, or provide new market segmentation opportunities.

FUNCTIONAL MODIFICATIONS are changes in a product's versatility, effectiveness, convenience, or safety. A company could add further capabilities to its patio furniture such as making it mildew-resistant, designing it to fold and store easily, and adding wider seats for greater comfort. The furniture could also add a safety feature to prevent unfolded furniture from collapsing when someone sits in it.

STYLE MODIFICATIONS are aesthetic product changes. A company could make its product more fashionable.


9.What is planned obsolescence? Give at least two examples. Is planned obsolescence ethical, or does it serve a function? Explain your answer.

ANS:Planned obsolescence is the practice of modifying products so those that have already been sold become obsolete before they actually need replacement. Examples include products such as printers, computers, and cell phones, which often become outdated before they stop working and need to be replaced.

Students arguments about the ethics of planned obsolescence will vary. Arguments could be made that the practice is unethical because it uses up resources to make changes to a product that are not of great value to the customer. Arguments could also be made that planned obsolescence simply gives customers what they want (e.g., changes the appearance of goods such as autos) and that it drives technological advances and speeds innovation.


10.Explain the differences among the terms brand, brand name, brand mark, trademark, and service mark.

ANS:A brand is a name, term, symbol, design, or combination of these that identifies a seller's products and differentiates them from competitors' products. A brand name is that part of a brand that can be spoken. The brand mark is the part of the brand that cannot be spoken--a picture, logo, special decoration, or design.

A trademark is a legal term indicating the owner has the exclusive right to use the brand name or other identifying mark; others are prohibited from using the brand without permission. A service mark performs the same functions as a trademark but for services.

PTS:1REF:364 | 367OBJ:10-4TOP:AACSB CommunicationKEY:CB&E Model ProductMSC:BLOOMS Level V Synthesis

11.What purposes does branding serve?

ANS:Branding has three main purposes: identification, repeat sales, and new-product sales.

In terms of identification, branding allows marketers to distinguish their products from all others. Brands become familiar to consumers as indicators of quality. Brand equity refers to the value of a well-recognized brand name.

Repeat sales come from satisfied customers who recognize which brands to purchase again and which brands to avoid. Branding also helps word-of-mouth and mass media promotion. Brand loyalty occurs when a consumer consistently prefers one brand over all others.

The third main purpose of branding is to facilitate new-product sales. Brands with high equity are extremely useful when introducing new products.


12.Distinguish between manufacturers brands and private brands. From the resellers perspective, what are they key advantages of carrying each type of brand?

ANS:A manufacturers brand (also sometimes called a national brand) is the brand name of a manufacturer. A private brand (also sometimes called a private label or store brand) is a brand name owned by a wholesaler or retailer.

The key advantages of carrying manufacturers brands include:Heavy advertising to the consumer by manufacturers helps develop strong consumer loyalties.Well-known manufacturers brands can attract new customers and enhance the dealers prestige.Many manufacturers offer rapid delivery, allowing the dealer to carry less inventory.If a dealer sells a manufacturers brand that is of poor quality, the customer may simply switch brands but remain loyal to the dealer.

The key advantages of carrying private brands include:A dealer can usually earn higher profits on its own brand, and there is less pressure to mark prices down to meet competition.Manufacturers can decide to drop a brand or reseller at any time or even to become a direct competitor to its dealers.Private brands tie the customer to the reseller.Resellers have no control over the intensity of distribution of manufacturers brands.


13.Packaging is an important component of the product strategy. List and briefly describe the four major functions of packaging.

ANS:CONTAIN AND PROTECT PRODUCTS. Packaging contains products in liquid, granular, or other divisible forms. Packaging allows firms to market products in specific quantities. Physical protection of the product is also necessary because most products are handled often between manufacture and final consumption. Packages protect products from breakage, light, heat, cold, infestation, spoilage, and so on.

PROMOTE PRODUCTS. A key role of packaging is promotion. Labels not only provide brand identification, ingredient listings, feature specifications, and directions, but also use designs, colors, shapes, and materials to influence consumers' perceptions and buying behavior. A package differentiates a product from competing products and may associate a new product with a family of other products from the same manufacturer. Packages are the last opportunity marketers have to influence buyers before they make purchase decisions. This promotional role differentiates the product from competitors' products and establishes the brand's image.

FACILITATE STORAGE, USE, AND CONVENIENCE. Packages can make products easier to ship, store, and stock on shelves. Additionally, package features or designs can make packages convenient. Features such as disposable packages, easy opening devices, and reusability are a plus. Package size can also be used to segment markets.

FACILITATE RECYCLING AND REDUCE ENVIRONMENTAL DAMAGE. Environmental compatibility is preferred, if not demanded, by consumers. Packages should be recyclable, biodegradable, and reusable.


14.Name and describe the two labeling forms.

ANS:PERSUASIVE LABELING focuses on a promotional theme or logo, with information for the consumer of secondary importance. The promotional theme may contain the words "new," "improved," or "super."

INFORMATIONAL LABELING is designed to help consumers make proper product selections and lower postpurchase cognitive dissonance. These labels may explain construction standards, color selection, cleaning instructions, or other use information.


15.What is a universal product code (UPC)? How does the use of UPCs benefit retailers?

ANS:A universal product codeoften called a bar codeis a series of thick and thin vertical lines, readable by computerized optical scanners, that represent numbers used to track products. They print information on cash register tapes and help retailers rapidly and accurately prepare records

LHM12e TB CH10 Edited

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