Question 1

What is the importance of guarantees?

Accepted Answer

The answer of What is the importance of guarantees?...

Question 2

Labels can identify the product and must contain legal statements that under various Federal laws cannot be misleading, false, or deceptive.

Accepted Answer

This statement is true. Labels are required to accurately identify the product and contain legal statements that comply with Federal laws regarding truth in advertising.

Question 3

Warranties are formal statements of expected product performance by the manufacturer.

Accepted Answer

Warranties are formal statements made by the manufacturer about the expected performance and quality of a product, which provide customers with confidence in their purchase by offering protection against any faults or defects in the product.

Question 4

Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk.
A) actual
B) perceived
C) real
D) implied
E) stated

Accepted Answer

Guarantees reduce the buyer's perceived risk, which is the risk that a buyer perceives or believes to exist when they purchase a product or service. This can include concerns about product quality, reliability, or effectiveness, as well as worries about the seller's trustworthiness or honesty. By offering a guarantee, the seller is essentially providing reassurance to the buyer that their purchase will meet their expectations and that they will be able to obtain a refund or replacement if they are not satisfied.

Question 5

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item. What are some of the requirements for succeeding in ingredient branding?

Accepted Answer

The answer of As the marketing manager for your firm,...

Question 6

Product line analysis provides information for two key decision areas - product line length and product mix pricing.

Accepted Answer

Product line analysis can inform decisions regarding the length of a product line (i.e. how many products should be offered within a line) and the pricing of the products within the product mix.

Question 7

Various factors have contributed to the increased importance of packaging as a marketing tool. List and briefly describe these factors.

Accepted Answer

The answer of Various factors have contributed to the increased...

Question 8

Packaging includes the activities of designing and producing a container for a product.

Accepted Answer

This statement is true. Packaging involves creating a container or wrapper for a product that will protect it during handling and shipping, as well as communicate important information to consumers. The packaging design can also play a role in attracting customers and promoting sales.

Question 9

________ are formal statements of expected product performance by the manufacturer.
A) Insurance
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets

Accepted Answer

Warranties are formal statements made by the manufacturer related to the product's performance, which assures the customer that the product is of good quality and will meet the expected performance standards.

Question 10

A guarantee's greatest contribution to a product's success is that it decreases the buyer's perceived risk in the purchase of the product.

Accepted Answer

A guarantee can help reassure buyers that they will not be out of pocket if the product does not meet their expectations or needs, reducing the perceived risk of buying the product. This can increase buyer confidence and lead to sales, contributing to the product's success.

Question 11

Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition.
A) not known
B) different
C) inferior
D) equivalent
E) superior

Accepted Answer

Guarantees are most effective when the product's quality is superior to competition because it provides reassurance to customers that if they are not satisfied with the product, they can receive a refund or replacement. This can lead to increased sales and customer loyalty.

Question 12

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

Accepted Answer

The answer of Sellers must label their products. Labels serve...

Question 13

What are the situations in which guarantees are most effective?

Accepted Answer

The answer of What are the situations in which guarantees...

Question 14

Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

Accepted Answer

Guarantees are most effective when the product is new or unknown, as they help reduce the perceived risk for consumers and encourage them to try the product.

Question 15

Your research shows that over 53 percent of all purchases are made on impulse. As you sit down with your packaging design team, you tell them that the package must communicate many of the sales tasks. List the sales tasks that packaging must now incorporate due to the increase in self-service sales.

Accepted Answer

The answer of Your research shows that over 53 percent...

Question 16

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer oriented) that you wish to see implemented by the design team.

Accepted Answer

The answer of In discussions with the packaging design team,...

Question 17

The Robinson-Patman Act, passed by Congress in 1967, set mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries.

Accepted Answer

The Robinson-Patman Act was actually passed in 1936 and dealt primarily with price discrimination and anti-trust issues in the sale of goods. It did not address labeling, packaging, or regulation of specific industries.

Question 18

We define packaging as all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package.
A) retailer
B) design
C) shipping
D) consumer
E) supplier

Accepted Answer

The three levels of packaging are primary package (the container that directly holds the product), secondary package (the packaging that holds the primary package, such as a box), and shipping package (the packaging used to transport the product). Option A, retailer package, is not a standard level of packaging. Option B, design package, does not make sense as a level of packaging. Option D, consumer package, refers to the primary package which is already mentioned. Option E, supplier package, is not a standard level of packaging.

Question 19

Which of the following factors is one of the contributors to the growing use of packaging as a marketing tool?
A) consumption aid
B) consumer affluence
C) consumer influence
D) conformance qualities
E) brand identification

Accepted Answer

Consumer affluence refers to the increase in wealth of consumers which enables them to buy more products. As a result, companies use packaging as a way to differentiate their products from competitors and to attract consumers to purchase their products. With consumers having more disposable income, companies recognize that they can capitalize on this by investing in packaging as a marketing tool.

Quiz 13: Setting Product Strategy