Deck 8: Elements of Product Planning for Goods and Services

Question 1

A "Product" might involve a physical good, a service, or a combination of the two.

Answer 1

True

Question 2

An individual product is a particular product within a product line.

Answer 2

True

Question 3

A service mark is the same as a trademark, except that it refers to a service offering.

Answer 3

True

Question 4

A product line is a set of individual products that are closely related.

Question 5

Goods are typically mass-produced in a factory far away from customers, while services are produced in their presence.

Question 6

A service is not a "Product" because services do not include any physical good.

Question 7

The "Product" area is concerned with what goods and services are produced, but not with decisions about installation, instructions on use, packaging, a brand name, a warranty, or after-sale service.

Question 8

It is usually more difficult to provide consistent quality for goods as opposed to services.

Question 9

Goods are intangible and services are tangible.

Question 10

A product assortment is the set of all product lines and individual products that a firm sells.

Question 11

Brand familiarity means how well customers recognize and accept a company's brand.

Question 12

The definition of quality focuses on the producer.

Question 13

Product means the need-satisfying offering of a firm.

Question 14

"Branding" includes the use of trademarks and brand names to identify a product.

Question 15

When comparing two similar products, the product with the most features is the higher quality product.

Question 16

A trademark can be a word, but cannot be a symbol.

Question 17

A "Product" should be thought of as potential customer satisfaction or benefits.

Question 18

Branding is more likely to be successful if the product is the best value for the price, and quality can be consistently maintained.

Question 19

A service logo refers to a type of trademark used for a service offering.

Question 20

Branding would be more likely to be successful if dependable and widespread availability of a product is possible.

Question 21

The "battle of the brands" is the competition between dealer brands and manufacturer brands.

Question 22

Manufacturer brands are always advertised and distributed more widely than dealer brands.

Question 23

A product which has no brand other than the identification of the contents is a generic product.

Question 24

Brand insistence means that target customers usually choose one brand over other brands, perhaps because of habit or favorable past experience.

Question 25

Brand equity is the value of the brand's overall strength in the market.

Question 26

There is no real reason for a firm to use individual brands rather than a family brand-except to avoid confusion.

Question 27

Family brands may cut promotion costs because the goodwill attached to one or two products may help the others.

Question 28

Brand names that convey a positive image in one language may be meaningless in another.

Question 29

Brand preference means customers usually choose the brand over other brands, perhaps out of habit or past experience.

Question 30

The "battle of the brands" hurts consumers by driving up prices.

Question 31

If a trademark is to be used in foreign markets, it is wise to register it under the Lanham Act.

Question 32

Dealer brands are brands created by producers.

Question 33

A marketing manager should make sure the firm's brand names do not become so familiar that they become common descriptive terms for certain kinds of products.

Question 34

A major advantage of dealer brands is that the intermediary usually earns a better margin than the intermediary would earn with manufacturer brands.

Question 35

A firm can lose all rights to a brand name if the name becomes a common descriptive term for that kind of product.

Question 36

Generic products are popular in the U.S. and other developed nations, but not in less-developed nations.

Question 37

It is usually necessary for a firm to use a family brand rather than individual brands if it plans to offer products at different quality and price levels to different target markets.

Question 38

A licensed brand can be used by only one company.

Question 39

Brand equity is likely to be lower if customers insist on buying a product and retailers are eager to stock it.

Question 40

The Lanham Act spells out the exact method for protecting registered trademarks, but does not force firms to register their trademarks.

Question 41

Because packaged products are regularly seen in retail stores, a good package may give a firm more promotion effect than it could possibly afford with advertising.

Question 42

Good packaging can provide a product with an important competitive advantage.

Question 43

Consumer products which are bought often, routinely, and without much thought are staples.

Question 44

Consumers in the U.S. generate more trash per person than anywhere else on the planet and packaging is a major contributor to this dilemma.

Question 45

The Federal Fair Packaging and Labeling Act of 1966 requires that consumer products be clearly labeled in understandable terms.

Question 46

Customer service guarantees are becoming less common because service companies can't live up to their promises.

Question 47

Spending money to improve protective packaging may be necessary, but it usually results in higher total distribution costs for a firm's product.

Question 48

Coke's logo greeting a consumer when they open the refrigerator and see the can is an example of enhancing the product.

Question 49

The four groups of consumer products are: convenience products, shopping products, specialty products, and unsought products.

Question 50

Examples of packaging's role of protecting include its link to promotion and its role in conveying product information.

Question 51

A warranty must be available for inspection before a purchase is made.

Question 52

Total distribution costs may increase because of packaging.

Question 53

A warranty explains what the seller promises about its product.

Question 54

It is illegal for a firm to use a package that cannot be recycled.

Question 55

Products which a consumer needs but isn't willing to spend much time shopping for are convenience products.

Question 56

Packaging can add value to a market offering by promoting, protecting, or enhancing the product.

Question 57

Convenience products include staples, impulse products, and emergency products.

Question 58

Magnuson-Moss Act says that producers must provide a clearly written warranty if they choose to offer any warranty.

Question 59

Federal Fair Packaging and Labeling Act requires that consumer goods be clearly labeled in easy-to-understand terms to give consumers more information.

Question 60

The Federal Fair Packaging and Labeling Act of 1966 requires that firms in a product-market reduce the number of package sizes to three or fewer for any product.

Question 61

Homogeneous shopping products are basically the same in the eyes of the customer and purchase decisions are often based on price.

Question 62

For different people, the same product might be a convenience product, a shopping product, or a specialty product.

Question 63

Consumer products that a customer feels are worth the time and effort to compare with competing products are shopping products.

Question 64

Personal selling is important for new unsought products, but it tends not to be important for regularly unsought products.

Question 65

Without promotion, unsought products will probably stay unsold.

Question 66

Firms should try to show the value of unsought products through promotion because people do not want them or know that they are available.

Question 67

Consumer products that a customer really wants and is willing to make a special effort to shop for and compare different possibilities are specialty products.

Question 68

Shopping products are products that are purchased immediately when the need is great.

Question 69

Consumer products which offer really new ideas that potential customers don't know about yet are new unsought products.

Question 70

Staples are consumer products which are sold in places like gourmet shops and health food stores, because convenience is not important to the customer.

Question 71

Shopping products that a customer sees as basically the same and wants at the lowest price are homogeneous shopping products.

Question 72

Emergency products are purchased only when the need is great and urgent, and therefore price is usually not very important.

Question 73

Shopping products that a customer sees as different and wants to inspect for quality and suitability are heterogeneous shopping products.

Question 74

Installations are long-lasting capital items such as buildings and land rights, custom-made equipment, and standard equipment.

Question 75

Installations are not bought very often, but the number of potential buyers at any particular time is usually quite large.

Question 76

Customers usually plan and shop for impulse products.

Question 77

Shopping products that a customer sees as basically the same and wants at the lowest price are heterogeneous shopping products.

Question 78

Shopping for a specialty product involves comparing the special features of different brands.

Question 79

Consumer products which a customer buys on sight as unplanned purchases, may have bought the same way before, and wants "right now" are impulse products.

Question 80

Specialty products are usually only purchased once-in-a-lifetime, so the customer must search extensively before buying.