Deck 8: Product Strategies

Question 1

The core product is the fundamental benefit, or problem solution, that consumers seek.

Answer 1

True

Question 2

The augmented product is the basic physical product, including styling, features, brand name, and packaging, that delivers the benefits that consumers seek.

Answer 2

False

Question 3

The expected (or actual) product is the product enhanced by the addition of extra or unsolicited services or benefits, such as a warranty, repair service, maintenance, and other services that enhance product use, in order to prompt a purchase.

Answer 3

False

Question 4

Durable goods are tangible products that have a prolonged use.

Question 5

Nondurable goods are tangible products that are consumed relatively quickly and purchased on a regular basis.

Question 6

Marketing managers have classified consumer products into five basic categories based on the level of risk attributed to the purchase and the amount of effort involved in purchasing the product.

Question 7

Relative to the other categories of consumer products, shopping goods are considered to have the lowest level of risk and purchase effort.

Question 8

A brand is defined as a name, design, symbol, or a combination thereof that identifies the product and/or the seller, and is used to differentiate the product from competitors' offerings.

Question 9

A brand serves as a guarantee to consumers that the product will be identical each time consumers purchase it, with the same features, design, and performance.

Question 10

Brand equity entails a strong brand identity and it allows firms to charge premium pricing for the product.

Question 11

The consumer perception of a particular brand is brand equity.

Question 12

The trademark is defined as a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product.

Question 13

The brand character is defined as the part of a brand that can be spoken; it may include words, letters, or numbers.

Question 14

The brand logo is defined as a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product.

Question 15

The brand mark is defined as words, symbols, marks, and signs that are legally registered for a single company's use.

Question 16

A patent is the grant of a property right to the inventor.

Question 17

Design counterfeiting includes copying designs or scents.

Question 18

Brand-name counterfeiting involves duplicating or counterfeiting a product, including its name.

Question 19

In the past, manufacturers' brands dominated retail shelves.

Question 20

Manufacturers' brands are much more profitable to retail stores, compared to private label brands.

Question 21

Generic brands are popular in the drug industry, where the cost of brand-name drugs is often prohibitive for many individuals.

Question 22

Private label brands, as well as manufacturers' brands, can be licensed.

Question 23

In terms of a brand strategy, multi-branding is using one brand name for more than one product.

Question 24

In terms of a brand strategy, a line extension involves extending the existing brand name by introducing new product offerings in an existing product category.

Question 25

In terms of a brand strategy, brand extension involves extending the existing brand name by introducing new product offerings in an existing product category.

Question 26

In terms of a brand strategy, family branding is using one brand name for more than one product.

Question 27

Information that cannot be communicated on the label of a package due to space restrictions can be included on an insert within the package.

Question 28

The product line is the number of different offerings for a product category.

Question 29

The product length is the related brands the company offers in the same product category.

Question 30

The product width is the total number of product lines the company offers.

Question 31

At each step of the new product development process, the process can be either terminated or restarted for each product idea.

Question 32

Radical or discontinuous innovations do not significantly alter consumer behavior, but they represent a change in consumption patterns.

Question 33

During the design and development stage of the new product development process, product prototypes are developed.

Question 34

Although test marketing can be a reliable predictor of market share, costs, and profitability it is frequently overlooked in marketing.

Question 35

An important decision in launching a new product is the timing of the new product launch. Being the first to launch a new product is always better than being a later entrant.

Question 36

During the introduction stage of the PLC, a firm markets its products in industrialized nations to consumers who can afford the higher prices needed to recover the R&D costs.

Question 37

While most products go through the traditional product lifecycle, fashion, fads, and styles, for instance, have a much shorter cycle.

Question 38

The assumption of the Boston Consulting Group growth-share matrix is that a company should have a portfolio of products with different growth rates and different market shares.

Question 39

An offering that can satisfy consumer needs and wants is the definition of a

A) product
B) good
C) service
D) durable good

Question 40

The core product is the

A) the tangible component of a product offering
B) fundamental benefit, or problem solution, that consumers seek
C) basic physical product, including styling, features, brand name, and packaging, that delivers the benefits that consumers seek
D) product enhanced by the addition of extra or unsolicited services or benefits, such as a warranty, repair service, maintenance, and other services that enhance product use, in order to prompt a purchase

Question 41

The expected (or actual) product is the

A) the tangible component of a product offering
B) fundamental benefit, or problem solution, that consumers seek
C) basic physical product, including styling, features, brand name, and packaging, that delivers the benefits that consumers seek
D) product enhanced by the addition of extra or unsolicited services or benefits, such as a warranty, repair service, maintenance, and other services that enhance product use, in order to prompt a purchase

Question 42

The augmented product is the

A) the tangible component of a product offering
B) fundamental benefit, or problem solution, that consumers seek
C) basic physical product, including styling, features, brand name, and packaging, that delivers the benefits that consumers seek
D) product enhanced by the addition of extra or unsolicited services or benefits, such as a warranty, repair service, maintenance, and other services that enhance product use, in order to prompt a purchase

Question 43

Durable goods are

A) tangible products that have a prolonged use
B) tangible products that are consumed relatively quickly and purchased on a regular basis
C) goods purchased to address urgent needs
D) goods that vary very little in terms of physical characteristics or functions

Question 44

Nondurable goods are

A) tangible products that have a prolonged use
B) tangible products that are consumed relatively quickly and purchased on a regular basis
C) goods purchased to address urgent needs
D) goods that vary very little in terms of physical characteristics or functions

Question 45

All of the following are examples of durable goods except

A) automobiles
B) furniture
C) clothing
D) boats

Question 46

All of the following are examples of nondurable goods except

A) food
B) batteries
C) clothing
D) furniture

Question 47

Convenience goods are

A) relatively inexpensive and frequently purchased products
B) perceived as higher risk products by consumers, but for which they are willing to spend a greater amount of purchase effort to find and evaluate
C) goods that vary very little in terms of physical characteristics or functions
D) goods that vary significantly in terms of function, physical characteristics, and quality, and that require a physical evaluation by the buyer

Question 48

Preference goods are

A) convenience goods that become differentiated through branding and achieve some degree of brand loyalty
B) perceived as higher risk products by consumers, but for which they are willing to spend a greater amount of purchase effort to find and evaluate
C) goods that vary very little in terms of physical characteristics or functions
D) goods that vary significantly in terms of function, physical characteristics, and quality, and that require a physical evaluation by the buyer

Question 49

Shopping goods are

A) convenience goods that become differentiated through branding and achieve some degree of brand loyalty
B) perceived as higher risk products by consumers, but for which they are willing to spend a greater amount of purchase effort to find and evaluate
C) goods that vary very little in terms of physical characteristics or functions
D) goods that vary significantly in terms of function, physical characteristics, and quality, and that require a physical evaluation by the buyer

Question 50

Homogeneous shopping goods are

A) convenience goods that become differentiated through branding and achieve some degree of brand loyalty
B) perceived as higher risk products by consumers, but for which they are willing to spend a greater amount of purchase effort to find and evaluate
C) goods that vary little in terms of physical characteristics or functions
D) goods that vary significantly in terms of function, physical characteristics, and quality, and that require a physical evaluation by the buyer

Question 51

Heterogeneous shopping goods are

A) convenience goods that become differentiated through branding and achieve some degree of brand loyalty
B) perceived as higher risk products by consumers, but for which they are willing to spend a greater amount of purchase effort to find and evaluate
C) goods that vary very little in terms of physical characteristics or functions
D) goods that vary significantly in terms of function, physical characteristics, and quality, and that require a physical evaluation by the buyer

Question 52

Specialty goods are

A) convenience goods that become differentiated through branding and achieve some degree of brand loyalty
B) goods that reach the ultimate in differentiation and brand loyalty in that only the chosen brand is acceptable to the consumer
C) goods that vary very little in terms of physical characteristics or functions
D) goods that vary significantly in terms of function, physical characteristics, and quality, and that require a physical evaluation by the buyer

Question 53

Impulse goods are

A) purchased to address urgent needs
B) high risk purchases, for which a consumer is willing to spend a greater amount of time
C) purchased without any earlier planning, such as candy, gum, and magazines
D) purchased routinely, such as milk, cheese, bread, and soap

Question 54

Staple goods are

A) purchased to address urgent needs
B) high risk purchases, for which a consumer is willing to spend a greater amount of time
C) purchased without any earlier planning, such as candy, gum, and magazines
D) purchased routinely, such as milk, cheese, bread, and soap

Question 55

Emergency goods are

A) purchased to address urgent needs
B) high risk purchases, for which a consumer is willing to spend a greater amount of time
C) purchased without any earlier planning, such as candy, gum, and magazines
D) purchased routinely, such as milk, cheese, bread, and soap

Question 56

The set of brand assets and liabilities linked to a brand and its name and symbol, adding or subtracting from the value provided by a product to the firm and/or to that firm's customers is

A) brand image
B) brand equity
C) brand parity
D) brand loyalty

Question 57

An essential asset of brand equity is

A) brand image
B) a brand mark
C) a brand logo
D) brand loyalty

Question 58

The important branding decisions involve deciding on the

A) brand name, mark, logo, and character
B) brand sponsor
C) brand strategy
D) all of the above

Question 59

The brand name is defined as

A) the part of a brand that can be spoken; it may include words, letters, or numbers
B) the part of a brand that can be seen, but not spoken
C) a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product
D) a character that personifies the brand

Question 60

The brand mark is defined as

A) the part of a brand that can be spoken; it may include words, letters, or numbers
B) the part of a brand that can be seen, but not spoken
C) a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product
D) a character that personifies the brand

Question 61

The brand logo is defined as

A) the part of a brand that can be spoken; it may include words, letters, or numbers
B) the part of a brand that can be seen, but not spoken
C) a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product
D) a character that personifies the brand

Question 62

The brand character is defined as

A) the part of a brand that can be spoken; it may include words, letters, or numbers
B) words, symbols, marks, and signs that are legally registered for a single company' use
C) a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product
D) a character that personifies the brand

Question 63

The trademark is defined as

A) the part of a brand that can be spoken; it may include words, letters, or numbers
B) words, symbols, marks, and signs that are legally registered for a single company's use for a particular good
C) a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product
D) a character that personifies the brand

Question 64

The servicemark is defined as

A) the part of a brand that can be spoken; it may include words, letters, or numbers
B) words, symbols, marks, and signs that are legally registered for a single company's use for a particular good
C) a distinctive mark, sign, symbol, or graphic version of a company's name that is used to identify and promote the company's product
D) words, symbols, marks, and signs that are legally registered for a single company' use for a particular service

Question 65

The golden arches of McDonald's is a

A) trademark
B) brand mark
C) brand logo
D) brand character

Question 66

The Nike swoosh is a

A) trademark
B) brand mark
C) brand logo
D) brand character

Question 67

Rights for federally-registered trademarks and servicemarks

A) last for 13 years
B) last for 20 years
C) last for only 3 renewals, or up to 30 years
D) can last indefinitely, as long as the owner continues to use it and continues to apply for renewal

Question 68

Rights for federally-registered patents

A) last for 13 years
B) last for 20 years, but can be extended under special circumstances
C) last for only 3 renewals, or up to 30 years
D) can last indefinitely, as long as the owner continues to use it and continues to apply for renewal

Question 69

Illegal copying designs and scents is

A) design counterfeiting
B) brand-name counterfeiting
C) private counterfeiting
D) product counterfeiting

Question 70

Creating a duplicate or fake product, including the name, is

A) design counterfeiting
B) brand-name counterfeiting
C) private counterfeiting
D) product counterfeiting

Question 71

Manufacturers' brands are

A) brands that emphasize the product, rather than the brand of the manufacturer or retailer
B) two or more different company brand names on one single product
C) brands owned by a manufacturer
D) resellers' (wholesalers or retailers) brands

Question 72

Private label brands are

A) brands that emphasize the product, rather than the brand of the manufacturer or retailer
B) two or more different companies on one single product
C) brands owned by a manufacturer
D) resellers' (wholesalers or retailers) brands

Question 73

Generic brands are

A) brands that emphasize the product, rather than the brand of the manufacturer or retailer
B) two or more different companies on one single product
C) brands owned by a manufacturer
D) resellers' (wholesalers or retailers) brands

Question 74

A co-brand is

A) a brand that emphasize the product, rather than the brand of the manufacturer or retailer
B) two or more different companies on one single product
C) a brand owned by a manufacturer
D) a reseller's (wholesaler or retailer) brand

Question 75

The brand sponsor decision involves determining if the brand should be sold in one of the following ways except

A) manufacturer's brand
B) private label brand
C) equity brand
D) generic brand

Question 76

According to the textbook, the battle of the brands is the conflict between

A) retail brands
B) manufacturers' brands
C) leading industry brands, such as Coke and Pepsi
D) manufacturers and resellers to promote their own brands

Question 77

For manufacturers to build consumer preference for manufacturers' brands, manufacturers must

A) invest heavily in advertising of their brands
B) rely on retailers to stock their brand
C) rely on trade promotions to push their brands through the channel
D) invest heavily in sales promotions and deals for consumers

Question 78

All of the following statements are true concerning generic brands except the fact that they

A) are rarely, if at all, advertised
B) are licensed by manufacturers so they can be sold under various retail names
C) involve minimal expenses in manufacturing, packaging, and distribution
D) are priced significantly lower than brand product alternatives

Question 79

In terms of a brand strategy, a line extension is

A) using one brand name for more than one product
B) extending the existing brand name by introducing new product offerings in an existing product category
C) using different brand names for products that the firm sells in the same product category
D) using an existing brand name to introduce products in a new product category

Question 80

In terms of a brand strategy, a brand extension is

A) using one brand name for more than one product
B) extending the existing brand name by introducing new product offerings in an existing product category
C) using different brand names for products that the firm sells in the same product category
D) using an existing brand name to introduce products in a new product category