Question 1

It's important that brand managers focus on defining competition narrowly, as when we compute market shares.

Accepted Answer

Focusing on narrowly defined competition can lead to a limited understanding of the market and potential threats. It's important for brand managers to consider a broader competitive landscape to identify all relevant competitors and market dynamics.

Question 2

The definition of a company's core business is like asking for its mission statement.

Accepted Answer

The definition of a company's core business is often closely aligned with its mission statement, as it describes the primary activities and products or services that the company focuses on.

Question 3

Company A offers a line of products to a single segment.Company B offers multiple products to multiple segments.Company B will most likely outperform company A.

Accepted Answer

Performance depends on various factors such as market demand, competition, and execution, not just the number of segments or products offered.

Question 4

Supervising product line manager's responsibilities are to focus, and brand managers' responsibilities are to oversee entire portfolios.

Accepted Answer

Brand managers focus on specific brands within a product line, while product line managers oversee the entire product line, which may include multiple brands.

Question 5

Product lines can be pruned or supplemented depending on market opportunities; however, the overall marketing mix should not be altered as this will confuse loyal customers.

Accepted Answer

The overall marketing mix can be adjusted to better align with market opportunities and customer needs, as long as changes are communicated effectively to avoid confusion.

Question 6

For sports, the core service is the game itself, and the value-addeds are the experience the consumer has.

Accepted Answer

The core service in sports is the game, while value-added services include the overall experience, such as entertainment, amenities, and atmosphere, which enhance consumer satisfaction.

Question 7

Many purchases have elements of both goods and services.

Accepted Answer

Many purchases involve a combination of tangible goods and intangible services, such as buying a car (good) that comes with a warranty or maintenance plan (service).

Question 8

The central element of what is purchased is called the "core," and anything bought on top of that is called the "value-addeds."

Accepted Answer

The "core" refers to the essential product or service being purchased, while "value-addeds" are additional features or services that enhance the core offering.

Question 9

If a company recognizes an opportunity for producing something that customers will value, it should supplement its product line, especially if it can make the new products better than competitors.

Accepted Answer

Recognizing and capitalizing on opportunities to produce valuable products can enhance a company's competitive edge and market share, especially if it can outperform competitors in quality or innovation.

Question 10

As chief marketing officer (CMO), Frank has seen the core competencies of his company change over the past five years.During this time, the core business of the company should not have shifted as the firm's competencies changed.

Accepted Answer

A company's core business may shift as its core competencies evolve to adapt to market changes, technological advancements, or strategic goals.

Question 11

Product-related issues are more complicated when our scope includes the company's full portfolio.

Accepted Answer

When considering a company's full portfolio, product-related issues become more complex due to the increased variety of products, markets, and customer needs that must be managed and aligned with the company's overall strategy.

Question 12

Good variability involves the customization and tailoring of the service delivery for the customer's unique needs.

Accepted Answer

Good variability refers to the positive aspect of adapting services to meet individual customer needs, enhancing satisfaction and experience.

Question 13

A marketer can affect a customer's level of satisfaction (or dissatisfaction) through good (or bad) value-addeds.

Accepted Answer

Marketers can influence customer satisfaction by enhancing the perceived value of a product or service through additional features, benefits, or services, which can positively or negatively impact the customer's experience.

Question 14

In a service-oriented business such as a bowling alley, services are simultaneously produced and consumed.

Accepted Answer

In service-oriented businesses, services are typically produced and consumed at the same time, as there is no tangible product to separate production from consumption.

Question 15

The inseparability of service production and consumption inevitably results in less perishable services.

Accepted Answer

The inseparability of service production and consumption does not affect the perishability of services. Services are inherently perishable because they cannot be stored for later use, regardless of when they are produced or consumed.

Question 16

The service marketing exchange happens between a customer and a service provider representing the company.

Accepted Answer

In service marketing, the exchange typically involves a customer interacting with a service provider who acts on behalf of the company to deliver the service.

Question 17

A brand is an investment.

Accepted Answer

A brand is considered an investment because it can increase a company's value, customer loyalty, and competitive advantage over time.

Question 18

The interaction between the crowd and the actors during a Broadway show is due to the inseparability between service provider and customer.

Accepted Answer

Inseparability in services means that the service is produced and consumed simultaneously, leading to direct interaction between the service provider (actors) and the customer (audience) during a live performance.

Question 19

Companies can be myopic when they define their core business, focusing on their product offerings instead of recognizing that their true goal is offering benefits and value to their customers.

Accepted Answer

Companies often fall into the trap of focusing narrowly on their products rather than understanding and delivering the broader benefits and value that customers seek, which can limit their growth and adaptability.

Question 20

Services are said to be less variable than products.

Accepted Answer

Services are generally more variable than products because they are often customized to individual customer needs and can be influenced by human factors, leading to variations in service delivery.

Quiz 6: Products Goods and Services