Deck 12: Setting Product Strategy

Question 1

Marketers must see themselves as benefit providers. For example, when a shopper purchases new shoes, he/she expects the shoes to cover his/her feet and allow him/her to walk unobstructed. This is an example of what level in the consumer-value hierarchy?

A) pure tangible good
B) basic product
C) augmented product
D) potential product
E) generic product

Answer 1

B

Question 2

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product.

A) consumption
B) expected
C) potential
D) augmented
E) basic

Answer 2

C

Question 3

It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n)________.

A) impulse good
B) specialty good
C) homogeneous shopping good
D) emergency good
E) heterogeneous shopping good

Answer 3

D

Question 4

How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider.

A) value proposition
B) consumption system
C) value system
D) quality perception
E) value chain

Question 5

Because ________ are purchased frequently, marketers should make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference.

A) nondurable goods
B) durable goods
C) services
D) unsought goods
E) specialty goods

Question 6

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________.

A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials

Question 7

________ are the major factors influencing the selection of suppliers for natural products.

A) Price and delivery reliability
B) Product features and customization
C) Price and customization
D) Delivery reliability and product features
E) Customization and delivery reliability

Question 8

A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

A) function
B) product
C) benefit
D) process
E) structure

Question 9

What types of goods are purchased frequently, immediately, and with minimum effort by the consumers?

A) specialty goods
B) shopping goods
C) unsought goods
D) durable goods
E) convenience goods

Question 10

Products such as insurance, cemetery plots, and smoke detectors are examples of ________ that are products that the consumer does not know about or does not normally think of buying.

A) specialty goods
B) unsought goods
C) heterogeneous shopping goods
D) homogeneous shopping goods
E) convenience goods

Question 11

The five product levels constitute a ________. At each level more customer value is added.

A) product line
B) business model
C) customer value-hierarchy
D) value grid
E) demand chain

Question 12

________ are major purchases and are usually bought directly from the producer with the typical sale preceded by long negotiation periods.

A) Raw materials
B) Materials and parts
C) Processed materials
D) Capital goods
E) Installations

Question 13

The way the user performs the tasks of getting and using products and related services is the user's total ________.

A) consumption system
B) consumable system
C) consistent use system
D) augmented system
E) potential system

Question 14

Which of the following are tangible goods that normally survive many uses?

A) generic goods
B) durable goods
C) core benefits
D) convenience goods
E) unsought goods

Question 15

Industrial goods can be classified as ________, capital items, or suppliers and business services based on their relative cost and how they enter the production process.

A) service components
B) sub-assemblies
C) accessories
D) specialty goods
E) materials and parts

Question 16

Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use.

A) availability
B) affordability
C) aesthetics
D) durability
E) necessity

Question 17

The two kinds of supplies with respect to industrial goods classification are maintenance and repair items, and ________.

A) installations
B) operating supplies
C) processed materials
D) component materials
E) equipment

Question 18

What goods are similar in quality but different enough in price to justify shopping comparisons?

A) emergency goods
B) homogeneous shopping goods
C) heterogeneous shopping goods
D) specialty goods
E) convenience goods

Question 19

A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________.

A) performance
B) utility
C) tangibility
D) price
E) availability

Question 20

The sellers of ________ goods carry a wide assortment to satisfy individual tastes and must have well-trained salespeople to inform and advise customers.

A) unsought
B) specialty
C) convenience
D) heterogeneous shopping
E) generic

Question 21

Delivery refers to how well the product or service is brought to the customer. It includes speed, ________, and care throughout the delivery process.

A) expedience
B) intensity
C) tangibility
D) performance
E) accuracy

Question 22

Ideal ________ would exist if users could fix the product themselves with little cost in money or time.

A) durability
B) reliability
C) style
D) design
E) reparability

Question 23

________ is the ability of a company to prepare on a large-scale basis individually designed products, services, programs, and communications.

A) Mass customization
B) Reverse engineering
C) Interoperability
D) Backward compatibility
E) Benchmarking

Question 24

________ refers to educating the customer's employees to use the vendor's equipment properly and efficiently.

A) Customer training
B) Open innovation
C) Crowdsourcing
D) Co-development
E) Collaborative research

Question 25

________ refers to data, information systems, and advice services that the seller offers to their buyers.

A) Sales force relationships
B) Customer relationships
C) Open source technology
D) Customer training
E) Customer consulting

Question 26

Most products are established at one of four performance levels: low, average, high, or superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a consumer purchases a mountain bike costing $1,000, she/he expects the bike to perform to specifications and to have a high ________ meeting the promised specifications.

A) features
B) conformance quality
C) durability
D) performance quality
E) reliability

Question 27

Which of the following actions would result in the elimination of uncontrollable returns of products in the short run?

A) improved handling
B) better packaging
C) improved transportation
D) proper storage
E) cannot be eliminated

Question 28

Buyers expect products to have high ________, which is the degree to which all the produced units are identical and meet the promised specifications.

A) durability
B) compatibility
C) conformance quality
D) form
E) performance quality

Question 29

Realizing that although household products is a huge category, taking up an entire supermarket aisle or more, it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________.

A) design
B) durability
C) conformance
D) reliability
E) performance quality

Question 30

When the physical product cannot be easily differentiated, the key to competitive success may lie in adding valued services and improving their quality. The main service differentiators are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair.

A) technology intensity
B) responsivity
C) ease of use
D) customer training
E) adaptability

Question 31

________ is the level at which the product's primary characteristics operate.

A) Design
B) Conformance quality
C) Reparability
D) Performance quality
E) Durability

Question 32

Most products can be offered with varying ________ that can supplement its basic function.

A) degrees of reliability
B) conformance qualities
C) features
D) forms
E) designs

Question 33

Smith & Adams Poultry has recently upgraded its transactional model such that its customers (restaurants and hotels)can communicate with its central supply system to indicate purchase volumes, dates, and receive confirmation, through their computer terminals. This is an example of a company differentiating itself versus competition in terms of ________.

A) customer relationships
B) customer training
C) installation
D) delivery ease
E) ordering ease

Question 34

________ describes the product's look and feel to the buyer; it has an advantage of creating distinctiveness that is difficult to copy.

A) Design
B) Style
C) Durability
D) Conformance
E) Reliability

Question 35

In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements.

A) Conformance
B) Design
C) Performance
D) Reliability
E) Style

Question 36

________ describes the service program for helping customers keep purchased products in good working order.

A) Returns
B) Ordering ease
C) Installation
D) Maintenance and repair
E) Delivery

Question 37

________ is a measure of the probability that a product will not malfunction or fail within a specified time period.

A) Reparability
B) Durability
C) Reliability
D) Specialty
E) Compatibility

Question 38

Differentiating on ________ is important for companies with complex products and becomes an especially good selling point when targeting technology novices.

A) delivery
B) ordering ease
C) ease of installation
D) customer consulting
E) reparability

Question 39

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________.

A) reliability
B) conformance quality
C) durability
D) compatibility
E) interoperability

Question 40

Many products can be differentiated in terms of their ________, which is its size, shape, or physical structure.

A) form
B) prototype
C) architecture
D) model
E) blueprint

Question 41

The ________ of a product mix refers to how many variants are offered of each product in the line.

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

Question 42

The ________ of the product mix refers to the total number of items in the mix.

A) width
B) length
C) depth
D) breadth
E) range

Question 43

Moving ________ carries risks. The new brand can cannibalize core brand sales and lower the core brand's quality image.

A) up-market
B) two ways
C) one way
D) down-market
E) out-market

Question 44

A company positioned in the "middle" market introduces a lower-priced product line. What type of line-stretching is this?

A) home stretch
B) up-market stretch
C) down-market stretch
D) maintenance stretch
E) two-way stretch

Question 45

Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines.

A) type
B) length
C) class
D) mix
E) width

Question 46

Which of the following is a benefit of product mapping?

A) studying market matrices
B) integrating target markets
C) identifying market segments
D) educating consumers
E) integrating target matrices

Question 47

In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements.

A) convenience item
B) flagship product
C) staple item
D) potential product
E) basic platform

Question 48

What occurs when any company lengthens its product line beyond its current range?

A) market overreach
B) brand dilution
C) product adaptations
D) cannibalization
E) line stretching

Question 49

Companies may wish to implement a(n)________ to achieve more growth, to realize higher margins, or simply to position themselves as full-line manufacturers.

A) up-market stretch
B) rebranding plan
C) outsourcing strategy
D) disintermediation policy
E) vertical integration strategy

Question 50

If line filling is overdone, it could result in ________ and customer confusion.

A) sales paralysis
B) manufacturing inefficiencies
C) self-cannibalization
D) disintermediation
E) ineffective management

Question 51

Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations. This is an example of a firm that successfully performed a ________ to reach more consumers and ventures that are more profitable.

A) upstream integration
B) two-way stretch
C) up-market stretch
D) down-market stretch
E) downstream integration

Question 52

A consumer products firm manufactures and sells over 200 different sizes and varieties of jams and jellies. We can say that this manufacturer's product mix has high ________.

A) consistency
B) depth
C) intensity
D) range
E) width

Question 53

A product line can also be lengthened by adding more items within the present range. There are several motives for line filling. Which of the following is one of them?

A) responding to senior management wishes
B) responding to consumer wishes
C) reaching for incremental profits
D) reaching for incremental capacity
E) responding to sales-force demands

Question 54

Using the ________ level of the product hierarchy to market its soups, Campbell Soups feature the company name first, then the soup variety on their packaging.

A) product class
B) product-type
C) need-family
D) product-family
E) product-line

Question 55

A(n)________ is defined as a distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute.

A) stockkeeping unit
B) inventory turn
C) individual brand
D) product type
E) brand line

Question 56

A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________.

A) product type
B) product class
C) need family
D) product variant
E) product line

Question 57

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market.

A) down-market stretch
B) up-market stretch
C) two-way stretch
D) marketing research
E) disintermediation

Question 58

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) consistency
B) depth
C) width
D) length
E) composition

Question 59

Product-line analysis provides information for two key decision areas product-line length and ________.

A) product-class composition
B) product-mix pricing
C) product pricing
D) popular pricing
E) product need family

Question 60

A ________ is the set of all products and items a particular seller offers for sale.

A) product line
B) product mix
C) product extension
D) product system
E) product class

Question 61

When shopping for tires for your automobile, you notice that the manufacturer you have selected has tires for your car priced low, average, and high, based upon performance and features. This is an example of what type of product-mix pricing?

A) two-part pricing
B) product-line pricing
C) captive product pricing
D) market pricing skimming
E) price discrimination

Question 62

Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix.

A) are ineffective on total
B) have no effect on total
C) maximizes
D) minimizes
E) capitalize upon

Question 63

In ________, the seller offers goods both individually and in bundles and often charges less for the "bundle" than for the individual products.

A) pirating pricing
B) captive pricing
C) two-part pricing
D) pure bundling
E) mixed bundling

Question 64

________ are formal statements of expected product performance by the manufacturer.

A) Insurance
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets

Question 65

Guarantees are most effective in two situations. The first is when the company or products are not well known and the second is when the product's quality is ________ to competition.

A) not known
B) different
C) inferior
D) equivalent
E) superior

Question 66

We define packaging as all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________.

A) retailer package
B) design package
C) shipping package
D) consumer package
E) supplier package

Question 67

Betty Crocker cake mixes using Hershey syrup in its cake mixes and "Lunchables" lunch combinations with Taco Bell tacos are examples of what special type of branding?

A) family branding
B) ingredient co-branding
C) co-branding
D) generic-branding
E) individual branding

Question 68

Which of the following factors is one of the contributors to the growing use of packaging as a marketing tool?

A) consumption aid
B) consumer affluence
C) consumer influence
D) conformance qualities
E) brand identification

Question 69

Companies normally develop ________ rather than single products and require sellers to establish perceived quality differences between price steps within it.

A) product mix
B) captive products
C) product lines
D) optional products
E) average products

Question 70

________ is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products.

A) Cross-branding
B) Ingredient branding
C) Equity branding
D) Family branding
E) Generic branding

Question 71

Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk.

A) actual
B) perceived
C) real
D) implied
E) stated

Question 72

Marketing planning begins with formulating an offering to meet target customers' needs or wants.

Question 73

McDonald's restaurants inside Wal-Marts and Starbucks inside Super Targets are examples of ________, whose main advantages are that the products can or may be convincingly positioned by virtue of the associated brands.

A) cooperative marketing
B) cross-promotion
C) retail co-branding
D) ingredient branding
E) feature promotion

Question 74

A product is anything that can be offered to a market to satisfy a want or need.

Question 75

A new product is advertised on the "infomercials" as being "the best cleaner money can buy" and "if not completely satisfied, return the product for a full refund, including shipping." The strategy of using a strong guarantee in this instance is sound because ________.

A) it is an example of a misleading or false advertising and is illegal
B) the product is so superior to competition that there will be no claims for refunds
C) it is just "advertising fluff" and the manufacturer has no intentions of refunding money
D) for a product that is not too well known, it is "good advertising" because the claims will be a small percentage of sales
E) for a product that is not too well known it reduces the buyer's risk in purchasing

Question 76

The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved.

A) branding synergy
B) increased advertising dollars
C) multiple brands
D) bundled package
E) pure bundling

Question 77

Purchasers of theatre tickets receive a 20% discount if they purchase and pay for the full season at one time. This is an example of what type of product-mix pricing?

A) mixed bundling
B) pure bundling
C) cross-promotion
D) captive pricing
E) two-part pricing

Question 78

Some service firms often engage in ________, consisting of a fixed fee plus a variable usage fee.

A) pure bundling
B) pure pricing
C) mixed pricing
D) captive pricing
E) two-part pricing

Question 79

Sales of luxury goods such as perfumes, colognes, and aftershaves depend heavily upon their initial response by the consumer. A well-designed package can create convenience and promotional value. It has been called the "silent salesman." Which of the three levels of packaging is this "silent salesman"?

A) retailer
B) consumer
C) shipping
D) secondary
E) primary

Question 80

The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind. Consumer expectations about the level of involvement and commitment are likely to be high, so unsatisfactory performance could be very negative for the brands involved.

A) co-branding
B) cannibalization
C) vertical integration
D) disintermediation
E) brand stretching