Deck 11: Basic Concepts in Product Planning

Question 1

A product can be best defined as a(n)

A) physical good.
B) intangible form.
C) bundle of attributes.
D) tangible form.

Answer 1

bundle of attributes.

Question 2

A tangible product

A) is consistent with the definition of the marketing concept.
B) is offered under a given description or model number.
C) is the broadest possible definition of a product.
D) includes both image and service features.

Answer 2

is offered under a given description or model number.

Question 3

The broadest product definition (in terms of scope) is the ___ product.

A) extended
B) generic
C) tangible
D) augmented

Answer 3

generic

Question 4

Service marketing includes

A) the sale and rental of durable goods.
B) the sale and rental of nondurable goods.
C) only the sale or rental of owned-goods services.
D) the rental of goods, servicing goods owned by consumers, and personal services.

Question 5

The term "consumer products" refers to which classification of consumer?

A) Final consumer
B) Final or organizational consumer
C) Organizational consumer
D) General public

Question 6

A product's placement in the convenience, shopping, and specialty product classification system is based primarily on a

A) consumer's degree of search.
B) product's degree of tangibility.
C) consumer's degree of innovation.
D) product's degree of fashion.

Question 7

Which consumer product is generally purchased with the LEAST degree of information search?

A) Convenience products
B) Shopping products
C) Tangible products
D) Generic products

Question 8

Staples, impulse products, and emergency products are forms of which type of product?

A) Shopping products
B) Convenience products
C) Tangible products
D) Specialty products

Question 9

An impulse product can be best defined as a(n)

A) unplanned purchase.
B) purchase characterized by high brand loyalty.
C) low-involvement purchase.
D) novelty or escape purchase.

Question 10

Shopping products are characterized by

A) comparison shopping activity among consumers.
B) high brand loyalty among consumers.
C) minimal consumer effort expended prior to purchasing a product.
D) high product knowledge among consumers.

Question 11

Specialty products are generally characterized by

A) low information search prior to a purchase.
B) a high degree of comparison shopping.
C) low consumer awareness of product attributes prior to making a purchase decision.
D) brand insistence.

Question 12

Which statement concerning the consumer-products classification system is NOT correct?

A) Each type of product in the consumer-products classification system requires a different marketing mix.
B) The consumer-products classification system is an excellent market segmentation base.
C) The consumer-products classification system includes both final and industrial consumer products.
D) The consumer-products classification system recognizes that different consumers may classify the same product differently.

Question 13

Which industrial product is a capital good?

A) Accessory equipment
B) Semi-processed raw materials
C) Component materials
D) Fabricated parts

Question 14

Which industrial product is NOT consumed in production?

A) Fabricated parts
B) Component materials
C) Accessory equipment
D) Raw materials

Question 15

Industrial supplies can be further categorized as

A) maintenance and repair services.
B) maintenance and operating supplies.
C) staples and emergency supplies.
D) goods versus nongoods services.

Question 16

A product mix is best defined as

A) only those products that are sold in the global market.
B) all the different product lines a firm offers.
C) only those products that are sold through a single distribution channel.
D) only those products that appeal to a distinct market segment.

Question 17

A firm that is classified as a specialist is likely to have a product mix that is both

A) deep and narrow.
B) deep and wide.
C) shallow and wide.
D) shallow and narrow.

Question 18

What type of product mix is required by a firm that seeks to be the single source for all of its customers' needs?

A) Integrated
B) Consistent
C) Deep and wide
D) Deep and narrow

Question 19

An advantage of a consistent product mix to a marketer is the

A) encouragement of one-stop shopping.
B) ability to meet all of a customer's needs within a product segment.
C) ability to satisfy the needs of a diverse group of customers.
D) development and maintenance of a strong image.

Question 20

The product management system most appropriate for a smaller firm that wishes to centralize its marketing function is the

A) venture team.
B) product planning committee.
C) product (brand) manager system.
D) marketing manager system.

Question 21

A product (brand) manager system should be used when

A) several important market segments exist.
B) a firm seeks to reduce its overall administrative costs.
C) a firm desires input from managers from different functional areas.
D) a firm recognizes that different managerial attributes are needed once a product is commercialized.

Question 22

Team members disband after a new product is introduced in a

A) the semantic differential.
B) product portfolio analysis.
C) product positioning.
D) the product life cycle.

Question 23

A firm can map its products in terms of consumer perceptions and desires, competition, other company products, and environmental changes through

A) the semantic differential.
B) product portfolio analysis.
C) product positioning.
D) the product life cycle.

Question 24

In product positioning, a product's ideal points represent

A) products that have met both sales and profit objectives.
B) products that have similar images.
C) products that can be expanded from the firm's current offerings.
D) the attributes consumers would like products to have.

Question 25

Competitive product positioning for a floor covering manufacturer may reveal to a firm that

A) two of a firm's products have similar images.
B) consumers desire an easy-to-clean floor covering product.
C) foreign brands have different images than domestic brands.
D) home improvement centers have increased their sales of floor covering products relative to specialty stores.

Question 26

Company product positioning for a wool-based carpeting manufacturer may reveal to a firm that

A) home improvement centers have increased their sales of wool-based carpeting products relative to specialty stores.
B) two of a firm's products have similar images.
C) consumers desire an easy-to-clean wool-based carpeting.
D) the firm has lost market share to foreign competitors.

Question 27

Which of these best illustrates the definition of a brand name?

A) A word, letter (number), group of words, or letters (numbers) that can be spoken
B) A symbol, design, or distinctive coloring or lettering that cannot be spoken
C) A brand mark that is personified
D) A brand designation that is given legal protection

Question 28

Which of these best illustrates the definition of a trade character?

A) A word, letter, group of words, or letters that can be spoken
B) A symbol, design, or distinctive coloring or lettering that cannot be spoken
C) A brand mark that is personified
D) A brand designation that is given legal protection

Question 29

Which of these best illustrates the definition of a trademark?

A) A brand designation that is given legal protection
B) A symbol, design, or distinctive coloring or lettering that cannot be spoken
C) A brand mark that is personified
D) A word, letter, group of words, or letters that can be spoken

Question 30

Which of these does NOT illustrate the concept of brand equity?

A) A consumer being loyal to a brand of personal computer on the basis of the product's image
B) A consumer being brand insistent to a soda brand
C) A publishing firm being purchased for $10 million over its book value on the basis of its ownership of some real estate with high capital appreciation possibilities
D) A publishing firm being purchased for $10 million over its book value on the basis of its reputation

Question 31

A firm should evaluate and possibly change its corporate symbols when it

A) revises the nature of its business.
B) has been subject to adverse publicity.
C) develops a new product.
D) goes private through a leveraged buyout.

Question 32

Availability at competing retailers, high brand awareness, and high levels of advertising are strategies typically associated with

A) generic brands. .
B) manufacturer brands.
C) dealer brands
D) private brands.

Question 33

Which statement concerning private (dealer) brands is correct?

A) Private brands increase retailer and wholesaler control at the expense of the product's manufacturer.
B) Private brands are generally significantly lower in quality than manufacturer brands.
C) Promotion for private brands is the responsibility of the manufacturer.
D) Manufacturer brands always have more national advertising than private brands.

Question 34

Generic brands have the highest market share in which industry?

A) Pharmaceutical (drug)
B) Frozen foods
C) Dairy goods
D) Paper goods

Question 35

Which statement concerning generic brands is NOT correct?

A) Generics generally receive secondary shelf space positioning.
B) Generics comprise less than 1 percent of the total sales in supermarkets.
C) Generics started in the pharmaceutical industry.
D) Relatively few supermarkets currently sell generic products.

Question 36

Which of these is NOT a major issue in the battle of the brands?

A) The fight for shelf space among different types of brands
B) The fight for market share among competing manufacturer brands
C) The fight for high-traffic store locations among different types of brands
D) The fight for market share among different types of brands

Question 37

A major benefit of family branding is the

A) ability to capitalize on a uniform image.
B) ease in communicating a product's appeal to multiple market segments.
C) ease in communicating a product's appeal to domestic and foreign markets.
D) ability to effectively appeal to multiple product positions.

Question 38

A major difficulty associated with a brand extension strategy is that

A) promotion costs will increase.
B) brand recognition may be applied to the incorrect product.
C) consumers may not perceive a linkage between two disparate products.
D) a new product's risk of failure may increase.

Question 39

A major advantage of the use of individual branding is

A) reduced consumer confusion as to a brand's ownership.
B) lower promotional costs.
C) the ability to create separate product images for different market segments.
D) lower packaging costs due to mass production opportunities.

Question 40

In which form of branding does one firm pay a fee to use the trademark rights held by another firm?

A) A cooperative branding agreement
B) A licensing agreement
C) A brand extension agreement
D) Family branding

Question 41

For a new brand, the consumer's brand decision process begins with which of these stages?

A) Persuasion
B) Recognition
C) Nonrecognition
D) Preference

Question 42

With a brand extension strategy, a consumer's brand decision process for a newly-introduced product begins with

A) recognition.
B) nonrecognition. .
C) purchase.
D) persuasion

Question 43

Which statement concerning trademark protection is NOT correct?

A) Trademark law covers goods, but not services.
B) Trademark registration is voluntary.
C) A multinational firm must register its trademarks in every country in which it operates.
D) A surname cannot be registered.

Question 44

A brand name that becomes descriptive of an entire product category

A) will still be considered a legal trademark in all states.
B) can still be registered as a trademark in other states.
C) must be licensed to other firms at a fair royalty rate.
D) will lose its legal protection as a trademark and be considered as public property.

Question 45

Which of these is NOT considered a part of a package?

A) Company logo
B) The physical container
C) Label
D) Inserts

Question 46

Which statement about basic packaging functions is NOT correct?

A) Packaging is particularly important for firms that sell specialty goods.
B) Multiple packaging and larger package sizes facilitate greater product usage.
C) A package can differentiate a product from its competitors.
D) Packaging can be a major element in new-product planning.

Question 47

A major advantage associated with a standardized package design for use by an international marketer is

A) greater involvement of foreign nationals in the marketing process.
B) higher worldwide recognition by traveling consumers.
C) greater ability to meet the unique needs of consumers in each country.
D) less concern that a package will offend groups of consumers.

Question 48

Which of these is NOT a major disadvantage associated with a standardized package design for use by an international marketer?

A) Inability to meet the unique packaging needs of consumers in at least one country
B) Lengthened time requirements to enter a new foreign market
C) Concern that a package will be offensive to consumers in a country
D) Higher packaging costs due to small production runs on labels

Question 49

A major goal of multiple packaging is to encourage

A) use of single servings for divisible products.
B) consumers to sample a new product.
C) meeting the needs of multiple market segments.
D) consumers to associate different images for different brand name designations.

Question 50

An industrywide classification system used for inventory management and marketing research is

A) BehaviorScan.
B) the Optical Scanning Character Recognition system.
C) the Nielsen Scanning System.
D) the Universal Product Code (UPC).

Question 51

The mail-order discounter of computer supplies currently sells its products on the basis of price. There is no technical service supplied, and handling and shipping charges are added to each order. The firm is marketing

A) extended products.
B) tangible products.
C) generic products.
D) augmented products.

Question 52

The mail-order retailer is considering changing its marketing strategy to include technical service, as well as special handling. Under this plan, the retailer would keep an up-to-date record of a customer's purchases and advise each customer as to updated versions of software, when available. It would also provide second-day shipping services with no additional charge. Under the planned strategy, the retailer is marketing

A) tangible products.
B) extended products.
C) generic products.
D) augmented products.

Question 53

The mail-order retailer has hired a marketing consultant. The consultant questioned the firm's lack of focus on software benefits. According to the consultant, "consumers are not buying software, they are purchasing solutions to business problems." The consultant is advocating that the retailer focus on what type of product?

A) Tangible
B) Extended
C) Generic
D) Augmented

Question 54

A student quickly decides to purchase extra disks at the bookstore located two blocks from his home. The student realizes that he has run out of disks to back up his term paper and that stores will be closing within a half-hour. The consumer views the disk purchase as a(n) ___ product.

A) specialty
B) convenience
C) shopping
D) impulse

Question 55

Compared with shopping products, convenience products involve

A) lower perceived risk.
B) greater information search by consumers.
C) brand insistence.
D) less consumer knowledge prior to purchase.

Question 56

Marketing researchers often determine the extent to which supermarket shoppers purchase ___ products by comparing the products purchased versus those listed on a shopping list prior to the respondent entering a store.

A) specialty
B) shopping
C) impulse
D) convenience

Question 57

Studies of shopping centers commonly find that they have more shoe stores than any other category of retailer. The studies further document the high degree of store interchange among shoppers for shoes. A high proportion of shoppers visit more than two shoe stores. Based upon this data, what type of consumer product are shoes?

A) Specialty products
B) Installations
C) Shopping products
D) Convenience products

Question 58

Competitive retailers may increase each firm's total sales in which merchandise category?

A) Impulse products
B) Convenience products
C) Emergency products
D) Shopping products

Question 59

The purchase of which industrial products typically require the highest degree of effort among consumers?

A) Industrial supplies
B) Industrial services
C) Accessory equipment
D) Specialty products

Question 60

Which industrial products typically are low-involvement purchases?

A) Raw materials
B) Component materials
C) Fabricated parts
D) Industrial supplies

Question 61

Which type of retailer has the widest product mix?

A) Department store
B) Specialty store
C) Variety store
D) Supermarket

Question 62

A market analyst described a firm as having a poor organizational mission statement that has resulted in the firm's having a "cluttered plate" and a "blurry image." What type of product mix does the firm have?

A) Inconsistent
B) Consistent
C) Wide
D) Shallow

Question 63

The simplest product management organization is the

A) marketing manager system.
B) product planning committee.
C) venture team.
D) brand manager system.

Question 64

A firm facing clustered demand produces two lines of watches. The most appropriate product management organization for the firm is a

A) marketing manager system.
B) product planning committee.
C) product (brand) manager system.
D) venture team.

Question 65

A major criticism of the product (brand) manager system is

A) lack of authority for the product manager.
B) the irregular nature of meetings.
C) inter-functional rivalry within the organization.
D) the disbanding of the manager after a product is introduced.

Question 66

Which of the following product management organizations assure input from representatives of different functional areas within the firm?

A) Product planning committee and venture team
B) Marketing manager system and new-product manager system
C) Marketing manager system and venture team
D) Product planning committee and product (brand) manager system

Question 67

A major advantage of the use of a venture team in a very large firm is the team's

A) autonomous structure.
B) lack of duplication with the overall firm.
C) low-cost structure.
D) ability to meet irregularly, on an as needed basis.

Question 68

Among the brands of Ford Motor Company are Jaguar, Volvo, Lincoln, Ford, and Mercury. Jaguar is viewed by many as a fine, imported sports car. Volvo is seen as a brand especially concerned with safety, Lincoln as a luxury family car, Ford as a traditional family car, and Mercury as a more sporty family car. This illustrates

A) ideal point analysis.
B) the semantic differential.
C) company product positioning.
D) competitive product positioning.

Question 69

If a firm's brands are viewed as interchangeable by consumers, they will appear ___ on a company product positioning chart.

A) on opposite sides
B) in the same cluster
C) in separate clusters
D) near competitors' products

Question 70

If a firm has a blurred image among its two brand designations, these brands will appear ___ on a company product positioning chart.

A) on opposite sides
B) in overlapped clusters
C) in separate clusters
D) near competitors' products

Question 71

The concept of brand equity in marketing is similar to which accounting concept?

A) Amortization
B) Book value
C) Leveraging equity
D) Good will

Question 72

A firm can leverage its brand equity through use of which of these strategies?

A) Brand extension
B) Individual branding
C) Brand decision process
D) Use of generic brands

Question 73

The broadest concept in branding is a firm's

A) trade characters.
B) corporate symbols.
C) trademarks.
D) brand marks.

Question 74

In comparison with dealer brands, manufacturer brands

A) attract loyalty to the manufacturer.
B) provide retailers with higher profit margins.
C) are available in fewer outlets.
D) account for a small percentage of supermarket sales.

Question 75

In comparison with manufacturer brands, dealer brands allow retailers to

A) utilize vendor promotional materials.
B) utilize cooperative advertising programs.
C) decrease consumer perceived risk.
D) establish store loyalty.

Question 76

A wholesaler or retailer has the greatest degree of channel control with which type of branding philosophy?

A) Manufacturer
B) Generic
C) Multiple
D) Private

Question 77

The battle of the brands occurs within a major retailer's stores. The retailer is using which of the following branding strategies?

A) Brand extension
B) Mixed-brand strategy
C) Family branding
D) Multiple branding

Question 78

A drug chain increases the retail selling price of a manufacturer's brand of shaving cream to show a better price comparison with its own private brand. This practice illustrates

A) the battle of the brands.
B) differentiated marketing.
C) individual branding.
D) multiple branding.

Question 79

Which pair of branding strategies is most similar?

A) Dealer branding and manufacturer branding
B) The battle of the brands and generic branding
C) Family branding and brand extension
D) Mixed branding and individual branding

Question 80

Compared with multiple branding, an advantage of family branding to a manufacturer is that

A) separate brands are sold to different market segments.
B) retail shelf space can be maximized.
C) a firm's promotional costs can be lowered.
D) differentiated marketing opportunities exist.