Deck 13: Setting Product Strategy

Question 1

What goods are similar in quality but different enough in price to justify shopping comparisons?

A) emergency goods
B) homogeneous shopping goods
C) heterogeneous shopping goods
D) specialty goods
E) convenience goods

Answer 1

B

Question 2

The sellers of ________ goods carry a wide assortment to satisfy individual tastes. They must have well-trained salespeople to inform and advise customers.

A) unsought
B) specialty
C) convenience
D) heterogeneous shopping
E) generic

Answer 2

D

Question 3

Because ________ are purchased frequently, marketers should make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference.

A) nondurable goods
B) durable goods
C) services
D) unsought goods
E) specialty goods

Answer 3

A

Question 4

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________.

A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials

Question 5

How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider.

A) value proposition
B) consumption system
C) value system
D) quality perception
E) value chain

Question 6

It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n) ________ good.

A) impulse
B) specialty
C) homogeneous shopping
D) emergency
E) heterogeneous shopping

Question 7

Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use.

A) availability
B) affordability
C) aesthetics
D) durability
E) necessity

Question 8

A product is anything that can be offered to a market to satisfy a want or need.

Question 9

Marketers must see themselves as benefit providers. For example, when a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy?

A) pure tangible good
B) basic product
C) augmented product
D) potential product
E) generic product

Question 10

Which of the following are tangible goods that normally survive many uses?

A) generic goods
B) durable goods
C) core benefits
D) convenience goods
E) unsought goods

Question 11

Products such as insurance, cemetery plots, and smoke detectors are examples of ________ goods that are products that the consumer does not know about or does not normally think of buying.

A) specialty
B) unsought
C) heterogeneous shopping
D) homogeneous shopping
E) convenience

Question 12

A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

A) function
B) product
C) benefit
D) process
E) structure

Question 13

________ are major purchases and are usually bought directly from the producer with the typical sale preceded by long negotiation periods.

A) Raw materials
B) Materials and parts
C) Processed materials
D) Capital goods
E) Installations

Question 14

Marketing planning begins with formulating an offering to meet target customers' needs or wants.

Question 15

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product.

A) consumption
B) expected
C) potential
D) augmented
E) basic

Question 16

In planning its market offering, the marketer needs to address five product levels, each of which reduces customer value.

Question 17

A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________.

A) performance
B) utility
C) tangibility
D) price
E) availability

Question 18

The way the user performs the tasks of getting and using products and related services is the user's total ________.

A) consumption system
B) consumable system
C) consistent use system
D) augmented system
E) potential system

Question 19

The five product levels constitute a ________. At each level more customer value is added.

A) product line
B) business model
C) customer value-hierarchy
D) value grid
E) demand chain

Question 20

What types of goods are purchased frequently, immediately, and with minimum effort by the consumers?

A) specialty goods
B) shopping goods
C) unsought goods
D) durable goods
E) convenience goods

Question 21

A manufacturer is contemplating introducing a product that is inferior to its competition in its performance, design, and functionality. However, the manufacturer believes that "good brand marketing" can overcome these shortfalls. Why is this thinking incorrect?

Question 22

Buyers expect products to have high ________, which is the degree to which all produced units are identical and meet promised specifications.

A) durability
B) compatibility
C) conformance quality
D) form
E) performance quality

Question 23

Because they are intangible, durable goods normally require more quality control, supplier credibility, and adaptability than either services or nondurable goods.

Question 24

The customer-value hierarchy consists of the basic product, core benefit, expected product, augmented product, and the consumption system.

Question 25

You know that marketers have traditionally classified products based on characteristics of durability, tangibility, and use. You also know that each product type has an appropriate marketing-mix strategy attached. In analyzing your company's products, you decide to list each of these products and the appropriate marketing-mix strategy to understand where your products "fit." List these products and their appropriate marketing-mix strategies.

Question 26

In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the "customer-value hierarchy" and identify the five levels of product contained within.

Question 27

The homogeneity of natural materials limits the amount of demand-creation activity that producers undertake.

Question 28

Durable products normally require less personal selling and service and less seller guarantees than nondurable goods.

Question 29

Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.

Question 30

Industrial-goods classifications based on terms of how the products enter the production process and their relative costs include such segments as materials and parts and capital items. Window cleaning services, consumable office supplies, personal computers, desks, paint, nails, and buckets are included in the classifications of industrial goods. List the other "classifications" including subclassifications for industrial goods.

Question 31

Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

Question 32

Most products are established at one of four performance levels: low, average, high, or superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a consumer purchases a mountain bike costing $1,000, he or she expects the bike to perform to specifications and to have a high ________, meeting the promised specifications.

A) features
B) conformance quality
C) durability
D) performance quality
E) reliability

Question 33

Supplies can be classified as two kinds: heterogeneous supplies and homogeneous supplies.

Question 34

Many products can be differentiated in terms of their ________, which is its size, shape, or physical structure.

A) form
B) prototype
C) architecture
D) model
E) blueprint

Question 35

Capital items are long-lasting goods that facilitate developing or managing the finished products.

Question 36

Industrial goods can be classified in terms of how they enter the production process and their relative costliness. Identify the three groups of industrial goods.

Question 37

Studying how consumers shop, how they use a particular product or service, and how they dispose of the product when consumed is important for marketers. This information forms the basis of product strategy. Define the consumption system and identify the two upcoming product strategies that are affected by this knowledge.

Question 38

The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas. List these four main classifications of consumer goods and explain what elements are included within.

Question 39

________ is the ability of a company to prepare on a large-scale basis individually designed products, services, programs, and communications.

A) Mass customization
B) Reverse engineering
C) Interoperability
D) Backward compatibility
E) Benchmarking

Question 40

A Maserati sports car is considered a convenience good because interested buyers will travel far to buy one.

Question 41

Firms should design the highest performance level possible for their products.

Question 42

For ________ to be valued for products like vehicles and kitchen appliances, it should not be associated with an excessive price premium and the product must not be subject to rapid technological obsolescence.

A) conformance quality
B) performance quality
C) reparability
D) durability
E) style

Question 43

The cost of processing a return can be significantly greater than that of an outbound shipment.

Question 44

________ describes the service program for helping customers keep purchased products in good working order.

A) Returns
B) Ordering ease
C) Installation
D) Maintenance and repair
E) Delivery

Question 45

Differentiating on ________ is important for companies with complex products and becomes an especially good selling point when targeting technology novices.

A) delivery
B) ordering ease
C) ease of installation
D) customer consulting
E) reparability

Question 46

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________.

A) reliability
B) conformance quality
C) durability
D) compatibility
E) interoperability

Question 47

Ideal ________ would exist if users could fix the product themselves with little cost in money or time.

A) durability
B) reliability
C) style
D) design
E) reparability

Question 48

________ refers to data, information systems, and advice services that the seller offers to their buyers.

A) Sales force relationships
B) Customer relationships
C) Open source technology
D) Customer training
E) Customer consulting

Question 49

To avoid "feature fatigue," companies must be careful to prioritize those features that are included and find unobtrusive ways to provide information about how consumers can use and benefit from the feature.

Question 50

Delivery refers to how well a product or service is brought to the customer. It includes speed, ________, and care throughout the delivery process.

A) expedience
B) intensity
C) tangibility
D) performance
E) accuracy

Question 51

Which of the following actions would result in the elimination of uncontrollable returns of products in the short run?

A) improved handling
B) better packaging
C) improved transportation
D) proper storage
E) cannot be eliminated

Question 52

To be branded, physical products need not be differentiated.

Question 53

Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

Question 54

Describe the six main service differentiators.

Question 55

As a selling point, durability commands a particularly high pricing premium, especially for products that are subject to rapid technological obsolescence, as are personal computers and video cameras.

Question 56

If the physical product cannot be easily differentiated, the key to competitive advantage lies in the pricing of the related "services" provided by the manufacturer.

Question 57

The ability to design custom jeans through Levi's and create merchandise with your own images through Zazzle are examples of mass customization.

Question 58

When the physical product cannot be easily differentiated, the key to competitive success may lie in adding valued services and improving their quality. The main service differentiators are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair.

A) technology intensity
B) responsiveness
C) ease of use
D) customer training
E) adaptability

Question 59

Smith & Adams Poultry has recently upgraded its transactional model such that its customers (restaurants and hotels) can communicate with its central supply system to indicate purchase volumes, dates, and receive confirmation, through their computer terminals. This is an example of a company differentiating itself versus competition in terms of ________.

A) customer relationships
B) customer training
C) installation
D) delivery ease
E) ordering ease

Question 60

________ describes the product's look and feel to the buyer; it has an advantage of creating distinctiveness that is difficult to copy.

A) Design
B) Style
C) Durability
D) Conformance
E) Reliability

Question 61

Which of the following is NOT one of the guidelines for managing luxury brands?

A) Besides brand names, other brand elements - logos, symbols, packaging, signage - can be important drivers of brand equity for luxury products.
B) Secondary associations from linked personalities, events, countries, and other entities should be avoided.
C) Luxury brands must employ a premium pricing strategy, with strong quality cues and few discounts and markdowns.
D) All aspects of the marketing program for luxury brands must be aligned to ensure high-quality products and services and pleasurable purchase and consumption experiences.
E) Luxury brands must carefully control distribution via a selective channel strategy.

Question 62

In your position as a marketing manager for a small industrial company, you have been asked by the president to help differentiate the company's product from its competitors. In reviewing your marketing management notes, you note that the text stated that physical products could be differentiated in nine ways. These nine areas comprise the "meat" of the memo you are writing to the president of your firm. What are the nine ways that physical products can be differentiated?

Question 63

What are the key guidelines for managing luxury brands?

Question 64

________ has overtaken the United States as the world's largest luxury market; it's forecast that one-third of all high-end goods will be sold there in the coming years.

A) China
B) India
C) South Africa
D) Brazil
E) South Korea

Question 65

To be branded, products must be differentiated. List the possible ways that physical products can be differentiated.

Question 66

What is the significance of design for a company's products and services? What are the advantages of a good design?

Question 67

The brand promise for ________ is "the product you buy is of highest esteem, based on its timeliness, elegant design and the high quality, which is derived from the excellence of our craftsmen."

A) Hermés
B) Montblanc
C) Patrón
D) Sub-zero Refrigerators
E) Armani

Question 68

The common denominators of luxury brands are quality and ________.

A) uniqueness
B) practicality
C) global appeal
D) contemporary
E) goodwill

Question 69

Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its relentless focus on making beautiful and intuitive products that will be integrated into customers' lifestyles.

Question 70

________ found a highly creative way to address the problem of proliferating plastic bottles with its "Waste

A) Calvin Klein
B) Ralph Lauren
C) Ferragamo
D) Levi-Strauss
E) Roberto Cavalli

Question 71

Distinguish between controllable returns and uncontrollable returns.

Question 72

Competition for luxury brands must be defined narrowly.

Question 73

In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements.

A) Conformance
B) Design
C) Performance
D) Reliability
E) Style

Question 74

In the aftermath of a crippling recession, luxury for many has become more about style and substance, combining personal pleasure and self-expression.

Question 75

Realizing that although household products is a huge category - taking up an entire supermarket aisle or more - it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________.

A) design
B) durability
C) conformance
D) reliability
E) performance quality

Question 76

Design can shift consumer perceptions to make brand experiences more rewarding.

Question 77

Which company launched Eco-Fina packaging for its water?

A) PepsiCo
B) Coca-Cola
C) SodaStream
D) PURE
E) Sigg Switzerland

Question 78

When a physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving quality. Identify the six main service differentiators.

Question 79

Design thinking requires intensive ethnographic studies of consumers, creative brainstorming sessions, and collaborative teamwork to decide how to bring the design idea to reality.

Question 80

A winning formula for many ________ brands is craftsmanship, heritage, authenticity, and history, often critical to justifying a sometimes extravagant price.

A) design
B) nondurable
C) durable
D) ingredient
E) luxury