Deck 8: Elements of Product Planning for Goods and Services

Question 1

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

Answer 1

True
Explanation: A service mark is a trademark used for a service offering.

Question 2

Product means the need-satisfying offering of a firm.

Answer 2

True
Explanation: Product means the need-satisfying offering of a firm. The idea of Product should be thought of as potential customer satisfaction or benefits.

Question 3

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

Answer 3

True
Explanation: An individual product is a particular product within a product line. It usually is differentiated by brand, level of service offered, price, or some other characteristic.

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

Goods are intangible and services are tangible.

Question 11

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 12

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

Question 13

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

Question 14

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

Question 15

The definition of quality focuses on the producer.

Question 16

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

Question 17

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

Question 18

A trademark explains what the seller promises about its product.

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

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

A licensed brand can be used by only one company.

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

Some nations require that a trademark be registered in its home country before it can be registered in a foreign country.

Question 36

Dealer brands are brands created by producers.

Question 37

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 38

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

Question 39

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 40

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

Question 41

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

Question 42

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

Question 43

A warranty explains what the seller promises about its product.

Question 44

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

Question 45

According to the text, the consumer product classes are based on why consumers use products.

Question 46

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

Question 47

A universal product code (UPC) contains the manufacturer's suggested retail price for the product on which it appears.

Question 48

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

Question 49

Total distribution costs may increase because of packaging.

Question 50

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 51

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

Question 52

There are two broad groups of product classes based on the type of customer that will use the product.

Question 53

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

Question 54

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

Question 55

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 56

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

Question 57

The universal product code has been opposed by large supermarket chains because it slows down the checkout process.

Question 58

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

Question 59

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 60

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

Question 61

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 62

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

Question 63

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 64

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

Question 65

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

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

Customers usually plan and shop for impulse products.

Question 70

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

Question 71

Without promotion, unsought products will probably stay unsold.

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

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