Deck 7: Product

Question 1

Which of the following statements is incorrect?

A) A service is a product.
B) A physical good is a product.
C) A service usually involves transfer of ownership.
D) A physical good is tangible; a service is intangible.
E) None of the options listed.

Answer 1

A service usually involves transfer of ownership.

Question 2

Which of these is the definition of 'product'?

A) A physical, tangible offering, capable of being delivered to a customer.
B) A good offered to the market for exchange.
C) A good, service or idea offered to the market for exchange.
D) An intangible offering to the market.

Answer 2

A good, service or idea offered to the market for exchange.

Question 3

The total product concept broadly describes a product as a bundle of attributes, creating value for the customer. Specifically, a product can be defined as the core product, expected product, ____________ product and ____________ product.

A) associated, final
B) augmented, potential
C) augmented, serviced
D) associated, finished

Answer 3

augmented, potential

Question 4

Postcode Honey, is a raw honey vendor that identifies the source of its honey by postcodes across W.A., so consumers' are aware where their honey is sourced. Therefore, it differentiates its product from competing products using packaging; a fundamental characteristic. This approach could be best described as differentiating at which level of the total product concept?

A) Core product.
B) Expected product.
C) Augmented product.
D) Potential product.
E) Actual product.

Question 5

Brands like Louis Vuitton offer a range of products such as fragrance, clothing, jewellery, shoes and accessories for both men and women. This range is known as the company's:

A) product capacity.
B) product item.
C) product line.
D) product mix.

Question 6

AirAsia allows customers to customise their flight package pre-flight. You can select your choice of in-flight entertainment, luggage, in-flight dining; even whether you choose blankets/pillows during your flight. At which product level is Air Asia differentiating from its competitors' offerings?

A) Core.
B) Expected.
C) Augmented.
D) None of the options listed.
E) Both a and b.

Question 7

A dairy company manufactures a range of flavoured skim milks. This range is known as the company's:

A) product capacity.
B) product item.
C) product line.
D) product mix.

Question 8

RedBull advertisers its key benefit as "energy". They have maintained this across their product range and also introduced a sugar-free and limited edition flavoured options. What level/s of the total product concept does the above relate to?

A) Core.
B) Expected.
C) Augmented.
D) None of the options listed.
E) Both a and c.

Question 9

Stable products, impulse products and emergency products are all examples of:

A) convenience products.
B) specialty products.
C) unsought products.
D) shopping products.

Question 10

Which of the following statements is incorrect?

A) A product can be a consumer product or a business-to-business product, but not both.
B) A product mix is all of the products an organisation makes available to customers.
C) Business-to-business products include products that organisations use in the production of other products.
D) business-to-business products include products that organisations use in their daily operations.
E) None of the options listed.

Question 11

Bonds manufacture underwear, singlets, shorts, track suits, hoodies, socks and t-shirts for men, women and children. Bonds men's underwear is an example of a:

A) product item.
B) product line.
C) product mix.
D) specialty product.
E) staple product.

Question 12

Big Australian retail outlets such as Kmart, Big W and Target stock a wide range of consumer products. The consumer products stocked by these retailers can be best categorised as:

A) shopping, convenience and specialty products.
B) shopping, convenience and unsought products.
C) shopping, convenience, specialty and unsought products.
D) shopping, convenience, core and augmented products.
E) shopping, convenience, specialty and core products.

Question 13

David has decided to buy a new pair of work shoes, so he spends his afternoon shopping for a new pair. When classifying products, the category of 'shopping products', which includes shoes, also includes:

A) impulse products.
B) staple products.
C) emergency products.
D) none of the options listed.
E) both a and b.

Question 14

If a consumer is prepared to spend time comparing competing offerings before making a purchase decision, the product is most likely to be a(n):

A) unsought product.
B) specialty product.
C) convenience product.
D) shopping product.
E) core product.

Question 15

Personal shoppers in Australia, like Gabriel Waller has built her business (gabwaller.com) by helping clients source specific one-of-a- kind luxury fashion pieces. These include items from previous seasons that are no longer available to purchase through traditional channels, and also assist celebrities to secure hard-to-find and pre-release items. What type of products does Gabriel source?

A) Specialty.
B) Unsought.
C) Convenience.
D) Shopping.
E) Both b and c.

Question 16

Shopping products include:

A) impulse products.
B) staple products.
C) emergency products.
D) none of the options listed.
E) both a and b.

Question 17

John is responsible for all the business-to-business buying that his company does. It is a small company but there is enough buying to keep John very busy. In his role as buyer, the products that John buys may include:

A) parts and materials.
B) equipment.
C) services and supplies.
D) all of the options listed.
E) only a and b.

Question 18

For certain categories, such as fashion, we see items like tie-dye and ripped jeans being on-trend and then losing favour. It could be said that the product life cycle for these type of category items would be___:

A) shorter
B) longer
C) consistent
D) none of the above

Question 19

The product life cycle has five stages: 1. ____________, 2. introduction, 3. growth, 4. ____________, 5. decline.

A) information search, maturity
B) new product development, advertising
C) market research, profitability
D) new product development, maturity

Question 20

Sales and profits of your company's product are falling. New products are entering the market and there seems to be little interest in your current product. Which stage of the product life cycle has your product now reached?

A) Maturity.
B) Decline.
C) Growth.
D) Free fall.

Question 21

Which of the following describes the awareness stage of the product adoption process?

A) The consumer knows little about the product, how it works or how it can benefit them.
B) The consumer seeks information to learn about the product.
C) The consumer decides whether or not they should try the product.
D) The consumer experiences interest in the product.

Question 22

You are adventurous, interested in new technologies, and a risk taker. With regard to the diffusion of innovations theory, you are a(n):

A) innovator.
B) early adopter.
C) early majority.
D) laggard.

Question 23

Which of the following statements is incorrect?

A) Products may be unprofitable in the introduction phase of the product life cycle.
B) The stage that a product is at in the product life cycle depends solely on how long the product has been in the market.
C) The new product development phase of the product life cycle can involve substantial costs for an organisation.
D) In the maturity phase of the product life cycle, sales will most likely peak or start to fall.
E) None of the options listed.

Question 24

Which of the following statements is correct?

A) Once a product has reached the maturity phase of the product life cycle, it is not possible to move back to the growth stage.
B) Promotional activities to build awareness of a product are most likely to be necessary in the introduction phase of the product life cycle.
C) Both a and b.
D) Conducting focus groups and market research can be a crucial component in the new product development phase.
E) Both b and d.

Question 25

Which of the following should be a part of the new product development process?

A) Test marketing.
B) Investment in promotional activities.
C) A product launch.
D) Evaluation of competitors.
E) None of the options listed.

Question 26

Which of the following depicts the stages of the product adoption process in the correct sequence?

A) Awareness, interest, trial, evaluation, adoption.
B) Awareness, evaluation, interest, trial, adoption.
C) Awareness, interest, evaluation, trial, adoption.
D) Awareness, interest, trial, adoption, evaluation.
E) Awareness, trial, interest, adoption, evaluation.

Question 27

A cricket bat manufacturer supplies its latest model bat to an Australian cricketer to use as part of a sponsorship arrangement. According to the diffusion of innovations theory, to which category would the Australian cricketer most likely belong in this instance?

A) Early majority.
B) Early adopters.
C) Laggards.
D) Late majority.
E) Growth.

Question 28

When it comes to innovative products such as smart phones, older generations have a tendency to be risk-averse; they prefer to stick to what they know. Many older consumers still look for phones that only make calls, are relatively large and have big keypad numbers. According to the diffusion of innovations theory, this most risk-averse group of consumers for new products are:

A) innovators.
B) laggards.
C) the late majority.
D) early adopters.
E) early majority.

Question 29

The creation of products and product attributes that distinguish one product from another is known as:

A) new product development.
B) the product mix.
C) the marketing mix.
D) product differentiation.

Question 30

A collection of symbols such as a name, logo, slogan and design intended to create an image in the customer's mind that differentiates a product from competitors' products is known as the:

A) brand image.
B) brand.
C) trace mark.
D) brand name.

Question 31

By legally registering "XXXX" with IP Australia, the brewing company gained legally enforceable rights to the exclusive use of the name. Registration officially makes the name a:

A) brand.
B) brand name.
C) brand mark.
D) trade mark.

Question 32

Brand assets (e.g. trademarks and patents), stock price analysis, replacement cost, brand attributes, brand loyalty and willingness-to-pay analysis, are all metrics to measure:

A) product value.
B) brand loyalty.
C) brand equity.
D) company value.

Question 33

The Smith's snack food company has a number of brands in addition to Smith's in its product mix, including Doritos, Twisties, Parker's, Nobby's, Red Rock Deli, Cheetos and Burger Rings, yet these are all known by their individual brand and not by the parent company name of Smith's. The branding approach that Smith's is taking is an example of:

A) co-branding.
B) brand extension.
C) family branding.
D) individual branding.

Question 34

Products that only indicate the product category, and do not promote a specific brand name are known as:

A) generic brands.
B) private label brands.
C) manufacturer brands.
D) home brands.

Question 35

Recently, many major retailers such as David Jones have teamed up with financial institutions such as American Express, to launch credit cards. This is known as:

A) co-branding.
B) franchising.
C) licensing.
D) a partnership.

Question 36

Choose the best answer to complete the following sentence. Product differentiation should:

A) make a product more affordable.
B) make a product more exclusive.
C) aim to create a competitive advantage for the organisation.
D) provide ideas for future products.
E) correlate with the organisation's promotional campaign.

Question 37

Which of the following would be classed as a product differentiator?

A) Features.
B) Quality.
C) Design.
D) Brand.
E) All of the options listed.

Question 38

Which of the following could not potentially be an example of product differentiation?

A) An organisation offering a product warranty.
B) A car manufacturer offering a model with a built in global positioning system (GPS).
C) An organisation offering a 24 hour product help desk.
D) Both a and c.
E) All of the options listed are potentially product differentiators.

Question 39

Which of the following best describes the concept of product differentiation?

A) How a product evolves as it moves from one phase of the product life cycle to the next.
B) The creation of products and product attributes that distinguish one product from another.
C) The creation of physical goods that are distinguished from competitor's physical goods.
D) The creation of services that are distinguished from competitor's services.
E) None of the options listed.

Question 40

A brand:

A) is a collection of symbols.
B) is a name.
C) is a slogan.
D) is a design.
E) can be all of the options listed.

Question 41

Which of the following statements is correct?

A) A brand can identify all of a seller's product items.
B) A brand can identify one product item only.
C) A brand can be important in high-involvement purchases.
D) All of the options listed statements are correct.
E) Both a and c.

Question 42

McDonald's 'golden arches', Qantas's 'flying kangaroo' and the International Olympic Committee's 'Olympic rings' are examples of:

A) brand names.
B) brand marks.
C) brand image.
D) brand equity.
E) None of the options listed.

Question 43

Which of the following statements is incorrect?

A) A trade mark legally registers a brand name or brand mark in order that an organisation may exclusively use it in the market.
B) Brand equity is the added value that a brand gives a product.
C) Brand equity is determined by the organisation rather than the consumer.
D) Brand loyalty can be a brand equity metric.
E) A customer's brand loyalty, once established, will never change.

Question 44

Smith's Snackfood Company has a number of brands in its product mix, including Doritos, Twisties and Burger Rings. This is an example of:

A) family branding.
B) brand extension.
C) individual branding.
D) brand equity.
E) None of the options listed.

Question 45

Which of the following could be a benefit of a family branding strategy?

A) It may be an effective way of introducing new products via trading off the established reputation of a brand.
B) It may assist in reducing the cost of promoting the new product.
C) Both a and b could be benefits of a family branding strategy.
D) Neither a nor b could be benefits of a family branding strategy.
E) Only one product will be associated with the brand.

Question 46

The Virgin Group's forays into music, air travel, mobile phones and credit cards could be best described as a(n):

A) family branding strategy.
B) brand extension strategy.
C) individual branding strategy.
D) co-branding strategy.
E) None of the options listed.

Question 47

Which of the following statements is/are correct?

A) Manufacturer brands are owned by producers and clearly identified at the point of sale.
B) Private label brands are owned by resellers (such as wholesalers and retailers).
C) Manufacturer brands are the most common type of brand.
D) Private label brands are becoming more common.
E) All of the options listed.

Question 48

When Woolworths Supermarkets introduces brands such as Woolworths Fresh, Woolworths HomeBrand, and Woolworths Select onto its shelves, these are examples of:

A) generic brands.
B) private label brands.
C) manufacturer brands.
D) co-branding.
E) None of the options listed.

Question 49

A toy manufacturer who enters into an agreement with the owners of 'The Simpsons' brand name to sell Simpsons toys and associated merchandise would most likely be in a __________ agreement with the Simpson's brand owner.

A) franchise
B) licensing
C) brand equity
D) brand loyalty
E) None of the options listed.

Question 50

There are three main types of packaging: primary packaging, secondary packaging and ____________ packaging.

A) shipping
B) inner
C) outer
D) product

Question 51

Which one of the following would not be a potential function or role of product packaging?

A) To make a product easier to store.
B) To make a product more convenient to use.
C) To protect a product from waste, damage, or spoilage.
D) To differentiate a product from competitor's offerings.
E) To increase the price of the product.

Question 52

A protective seal on the nozzle of a liquid container, designed to stop a product's contents from leaking is an example of:

A) primary packaging.
B) secondary packaging.
C) shipping packaging.
D) both a and c.
E) None of the options listed.

Question 53

How could an organisation demonstrate its environmental credentials via product packaging?

A) By reducing the amount of secondary packaging that has to be thrown away.
B) By using recyclable bottles or containers for its products.
C) By donating a percentage of profits from product sales to an environmental cause.
D) Both a and b.
E) Options a, b and c.

Question 54

Which of the following statements is incorrect?

A) As a marketing tool, packaging cannot be changed.
B) Packaging helps to promote the product.
C) Labelling identifies the product.
D) Labelling provides promotional and legal information.
E) Packaging can be more expensive that producing the product.

Question 55

Sometimes a variation or derivative of an existing product can be added to the product line rather than superseding the original product. This is known as a:

A) modification.
B) line extension.
C) repositioned item.
D) brand extension.

Question 56

As products approach the decline phase of the product life cycle, which of the following will not help the product to possibly enjoy a new phase of growth?

A) Product upgrades.
B) Line extensions.
C) Product deletion.
D) Product repositioning.

Question 57

A new gaming console from Sony or Nintendo that supersedes a previous model could best be described as:
Learning objective 7.6: explain key aspects of product management and positioning through the product life cycle. Product modifications are changes in one or more characteristics of a product that allow the resultant product to supersede the earlier one. This is frequently seen in high technology products; for example, each generation of game consoles from Nintendo and Sony tend to supersede the previous ones.

A) a line extension.
B) a product modification.
C) repositioning.
D) a core product.
E) None of the options listed.

Question 58

Foster's Group has for many years been very successful with its VB (Victoria Bitter) beer brand. When it launched its VB mid-strength lager, which was aimed at a different segment of the market, this could be best described as:

A) a line extension.
B) a product modification.
C) repositioning.
D) an expected product.
E) None of the options listed.

Question 59

Which of the following statements is correct?

A) Adjusting the marketing mix for a product may allow an organisation to reposition it in the minds of consumers.
B) Repositioning may enable a product to move back from the maturity phase into the growth phase of the product life cycle.
C) Product obsolescence may be planned.
D) Product obsolescence may be unplanned.
E) All of the options listed.

Question 60

Which of the following statements is correct?

A) A product manager is a person who is responsible for managing an organisation's marketing activities that are aimed at a particular market segment.
B) A marketer cannot influence how a product is positioned in a consumer's mind.
C) Even though a product category may be in the decline phase of the product life cycle, it is possible that a brand within that product category may be in the growth phase.
D) A marketer may be able to reposition a product in a consumer's mind by adjusting the marketing mix.
E) Both c and d are correct.