Deck 8: Products, Services, and Brands: Building Customer Value

Question 1

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the ________, 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

Answer 1

C

Question 2

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

Answer 2

E

Question 3

________ are industrial products.

A) Major appliances
B) Laundry detergents
C) Life insurance policies
D) Office supplies
E) Legal services

Answer 3

D

Question 4

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.

Question 5

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

Question 6

________ 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

Question 7

Which of the following exemplifies a service?

A) candy
B) laptop
C) retail
D) car
E) laundry detergent

Question 8

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

Question 9

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) specialty product
D) service
E) product attribute

Question 10

________ 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

Question 11

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

Question 12

________ 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

Question 13

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

Question 14

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

Question 15

________ 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

Question 16

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

Question 17

________ 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

Question 18

________ 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

Question 19

Which of the following is an example of a convenience product?

A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator

Question 20

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.

Question 21

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
Convenience products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Question 22

________ 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

Question 23

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

Question 24

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

Question 25

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

Question 26

Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes in its ad campaigns to help sell its products. This is an example of ________ marketing.

A) person
B) place
C) social
D) organization
E) internal

Question 27

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

Question 28

________ 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

Question 29

________ 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

Question 30

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
A service refers to an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything.

Question 31

Lubricants, coal, paper, and pencils are examples of ________.

A) operating supplies
B) capital items
C) raw materials
D) specialty products
E) installations

Question 32

________ 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

Question 33

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

Question 34

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
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

Question 35

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

Question 36

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
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.

Question 37

________ 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

Question 38

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
Which type of product does Delgado manufacture?

A) industrial
B) convenience
C) specialty
D) shopping
E) unsought

Question 39

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

Question 40

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

Question 41

Explain the difference between a consumer product and an industrial product. Include an example.

Question 42

How do consumers perceive products?

Question 43

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

Question 44

________ contributes to a product's usefulness as well as to its looks.

A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging

Question 45

How are specialty products distributed?

Question 46

________ 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

Question 47

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

Question 48

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?

Question 49

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

Question 50

________ 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

Question 51

Give examples of pure tangible goods.

Question 52

What is a product?

Question 53

Products and services fall into two broad classes based on the types of consumers that use them. Name these two broad classes and describe how they are different from each other.

Question 54

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

Question 55

Style simply describes the ________ of a product.

A) quality
B) appearance
C) utility
D) durability
E) long-term benefits

Question 56

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

Question 57

Give three examples of shopping products.

Question 58

________ 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

Question 59

Name some common convenience products.

Question 60

________ involves designing and producing the container or wrapper for a product.

A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling

Question 61

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
Branding decisions include determining a product price.

Question 62

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

Question 63

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
A product line consists of unrelated products that are sold to diverse customer groups.

Question 64

________ 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

Question 65

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

Question 66

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

Question 67

Product mix ________ refers to the number of different product lines the company carries.

A) length
B) height
C) width
D) consistency
E) depth

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
For few companies, the package itself has become an important promotional medium.

Question 73

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

Question 74

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
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

Question 75

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
Style is a larger concept than design. Design simply describes the appearance of a product.

Question 76

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

Question 77

Refer to the scenario below to answer the following question(s).
Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Ruben built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Ruben Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Ruben's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Delgado representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Delgado representative, before the purchase and long after.
Labels range from simple tags attached to products to complex graphics that are part of the packaging.

Question 78

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

Question 79

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

Question 80

________ 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