Deck 10: Products and Services Marketing

Question 1

Many service providers are seeking out self- service technologies such as information kiosks and automatic dispensing machines to reduce reliance on face- to- face encounters and extend the normal hours when services are delivered. These service providers are trying to address the service problem of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Answer 1

B

Question 2

In the 1980s, frozen, single- serve dinners were known as "TV dinners" and were widely perceived as products used by people who lived alone and were socially isolated. However, in the 1990s, these frozen meals were pitched as meals for busy, active people who still wanted a nutritious meal. Sales of frozen meals soared once they became associated with active, vibrant and socially capable people. This is an example of:

A) brand repositioning.
B) product development.
C) market development.
D) multibranding.
E) brand depositioning.

Answer 2

A

Question 3

Melbourne's suburban train service provider, The Metro, issued a statement about service quality for the month of March, 2012. Notable statistics from the statement are that 98.6 per cent of scheduled services actually ran and that 80.5 per cent of trains ran on time. Based on this statement, which of the following conclusions are reasonable?

A) Conformance quality exceeds performance quality.
B) Performance quality exceeds conformance quality.
C) Both conformance quality and performance quality are operating at acceptable levels.
D) Both conformance quality and performance quality are operating at unacceptable levels.
E) none of the above

Answer 3

B

Question 4

Which of the following is NOT one of the characteristics of services?

A) intangibility
B) inseparability
C) variability
D) perishability
E) autonomy

Question 5

Brenda is frustrated with the peaks and troughs in her business as a tailor and garment alteration service. Given that she is not producing a tangible product, she has to wait for customers to bring her work. Then, when customers do come along, they are usually in a hurry to receive their clothing. Because she cannot produce a product in slow times and inventory it for the busy seasons, she has to suffer through some extreme peak periods and slow periods. Brenda's business exemplifies the service characteristic of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Question 6

Melbourne band, The Cat Empire, started their musical journey as the "Jazz Cats" performing in Melbourne's jazz clubs and at interstate jazz festivals. As the band's popularity grew, the lads found the name, "Jazz Cats," was too restrictive as it only appealed to a relatively small market of jazz enthusiasts. Band members wanted to extend their musical repertoire beyond jazz to include other genres such as ska, funk, rock, fusion and Latin, hence the name change to Cat Empire, which the band members felt had a broader appeal. The change of name along with the new repertoire is an example of:

A) product development.
B) brand repositioning.
C) brand depositioning.
D) cobranding.
E) market development.

Question 7

Services now account for per cent of GDP in Australia and New Zealand.

A) 50
B) 65
C) 70
D) 55
E) 60

Question 8

Long lasting goods such as a kiln for firing bricks or ceramic pieces are known as:

A) capital items.
B) raw materials.
C) component parts.
D) component materials.
E) supplies.

Question 9

Which of the following is NOT a desirable quality for a brand name?

A) It should be easy to pronounce, recognise and remember.
B) It should suggest something about the product benefits or qualities.
C) It should be capable of registration and legal protection.
D) It should be distinctive.
E) All of the above are desirable qualities.

Question 10

A group of products, often at the retail level, which may be substituted for each other or which in some way supplement each other is known as a(n):

A) product class.
B) product line.
C) SKU.
D) product category.
E) product division.

Question 11

Which of the following is a risk attached to a downward stretch in the product line?

A) The company's dealers may not be willing or able to handle the lower- end products.
B) A low- end item might damage the company's quality high- end image and reputation.
C) A low- end item might provoke competitors to counteract by moving into the higher end.
D) all of the above
E) none of the above

Question 12

It has been said that Honda's core competency is its expertise in manufacturing highly reliable medium sized motors. This competency has allowed Honda to enter a variety of markets involving motorised products including; lawn- mowers, motor cars, sewing machines, outboard motors and motor bikes. For Honda's various corporate divisions, the medium- sized motor is BEST described as a(n):

A) component part.
B) installation.
C) raw material.
D) supply.
E) capital item.

Question 13

Products which are consumed in a single use or on a few usage occasions, such as grocery items, are most often referred to as:

A) durables.
B) shopping goods.
C) consumables.
D) fast moving consumer goods.
E) none of the above

Question 14

Which of the following is NOT one of the ways a company can increase its business?

A) Add more product versions to each product and thus deepen the product mix.
B) Provide additional layers of product augmentation.
C) Lengthen the existing product lines.
D) Add new product lines, thus widening its product mix.
E) Pursue more product line consistency.

Question 15

The interactions through which a customer comes to know a company or brand and understand its values come in a variety of modes. Whether it is advertising, personal experience with employees, telephone interactions, online interactions or virtual brand experiences, each interaction has the potential to shape the consumer's relationship with the company or brand. These interactions are sometimes known as:

A) touch points.
B) brand experiences.
C) personal encounters.
D) personal interactions.
E) none of the above

Question 16

Industrial supplies are BEST defined as:

A) goods and services that don't enter the finished product at all.
B) portable factory equipment and tools or office equipment.
C) goods or services that are used to maintain or repair the buyer's plant or equipment.
D) materials or parts that become part of the buyer's product.
E) goods and services that aid in the buyer's manufacturing or service operations.

Question 17

When Jim goes to Phu Vinh, his local Vietnamese restaurant, and orders his favourite dish, a chicken satay, he notices that sometimes the portion size is quite generous while at other times it is quite small. He also notices that the satay is often garnished differently and that the satay sauce often has a coarser texture and spicier taste. Jim is experiencing the service characteristic of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Question 18

You have just met a friend for coffee and a chat but are not planning to eat. The waiter brings over a cake trolley containing the most spectacular and elaborately decorated cakes and before you know it, both you and your friend have ordered a slice of cake to enjoy with your coffee. This is an example of a(n):

A) unsought purchase.
B) emergency purchase.
C) impulse purchase.
D) staple purchase.
E) speciality purchase.

Question 19

Consumer products or services that the consumer either doesn't know about or knows about but doesn't normally consider buying are known as:

A) emergency goods.
B) shopping goods.
C) unsought goods.
D) convenience goods.
E) sought goods.

Question 20

L'Oreal is one of the largest and fastest growing skincare and cosmetics brands. Innovation and product development are central to L'Oreal's success. In skincare, the company currently offers four brands addressing the specific skincare needs of women at different ages; Youth Code for women aged 30+; Revitalift for women aged 35+; Age Perfect for women aged 50+ and Age Re- Perfect for women aged 60+. Recently, L'Oreal launched L'Oreal for men with similar products pitched at different age groups. All L'Oreal products feature the L'Oreal brand name while the advertising tag line consistently used in all skincare is, "L'Oreal, because your worth it." L'Oreal's brand strategy is BEST described as:

A) brand repositioning.
B) category killers.
C) multibranding.
D) category branding.
E) cobranding.

Question 21

For service marketers, the most important activities to ensure customer satisfaction and long- term growth are:

A) interactive marketing.
B) internal marketing.
C) external marketing.
D) all of the above
E) none of the above

Question 22

The application of marketing to influence people's behaviour by encouraging favourable behaviours or discouraging undesirable behaviours such as drunk- driving and smoking is known as:

A) political marketing.
B) cause marketing.
C) philanthropic marketing.
D) advocacy marketing.
E) social marketing.

Question 23

That a service experience services cannot be stored for later sale or use refers to which characteristic of services?

A) intangibility
B) inseparability
C) variability
D) perishability
E) autonomy

Question 24

A cooperative marketing activity between a "for- profit" company and a "not- for profit" organisation which increases awareness and generally raises funds for a an issue is known as:

A) social marketing.
B) advocacy marketing.
C) political marketing.
D) philanthropic marketing.
E) cause marketing.

Question 25

A university library is increasing the number of e- books and e- journals in its collection in an effort to provide students with access 24 hours per day, 7 days per week from any location. This shift should also reduce the amount of time students must spend checking books in and out of the library. The library is addressing the service problem of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Question 26

An advertising campaign for a resort on the Whitsunday islands invited consumers to, "Come for the first time experience; Come again to prove that we are as great as you remember!" This message is attempting to address the service characteristics of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Question 27

That the quality of a service encounter often depends on who provides them as well as when, where and how they are provided refers to which characteristic of a service?

A) intangibility
B) inseparability
C) variability
D) perishability
E) autonomy

Question 28

Surrounding the inner layers of a product, are supporting services and benefits, known as:

A) facilitating goods and services.
B) augmented product.
C) supporting goods and services.
D) value proposition.
E) bundle of benefits.

Question 29

Which of the following functions does a product label perform?

A) provide information about product grading
B) identify the product and its manufacturer
C) describe the product contents, when, where and how it was made
D) comply with local laws and regulations
E) all of the above

Question 30

Which of the following purchase situations BEST describes the core product?

A) Tatiana eats at McDonalds because she likes the value meal deals.
B) Deng buys a bicycle because he needs transportation.
C) James buys the Sunday newspaper because he likes the free TV guide that comes with the host paper.
D) Marla stays at Marriot Hotels because she likes the gym and sauna.
E) Alvin shops at The Limited chain because he likes the style of clothes on offer.

Question 31

The number of the versions offered for each product in the line is termed the product mix:

A) depth.
B) breadth.
C) length.
D) flexibility.
E) consistency.

Question 32

Every time the Coca- Cola Company introduces a new type of cola beverage, Coke Original loses sales. When Diet Coke was released it resulted in a loss of sales to the original. When Coke Zero was launched, it took sales away from both Coke Original and Diet Coke. This loss of sales, as a direct result of a line extension strategy, is known as:

A) derived demand.
B) flanking brand.
C) fighting brands.
D) brand cannibalization.
E) portfolio planning.

Question 33

A company might stretch its product line downward because it:

A) may wish to add a low- end product to plug a market hole that would otherwise attract a new competitor.
B) may have first entered the high end to establish a quality image which it wants to take to the lower end of the market.
C) may have been attacked at the high end and respond by invading the low end.
D) all of the above
E) none of the above

Question 34

Which of the following is NOT a brand sponsorship option?

A) public label
B) national brand
C) licensed brand
D) private label
E) co- brand

Question 35

Select the word that best completes the following sentence. Performance quality refers to the ability of a product to perform its functions: while conformance quality refers to the in delivering a targeted performance.

A) capability
B) competency
C) consistency
D) customer delight
E) excellence

Question 36

The actual product consists of a number of features. Which of the following is NOT part of the actual product?

A) styling
B) quality level
C) value proposition
D) product features
E) brand name

Question 37

Strong brand positioning is MOST likely to be positioned by:

A) product quality.
B) product attributes.
C) product benefits.
D) beliefs and values.
E) all of the above

Question 38

Which of the following elements is NOT part of the extended service mix?

A) process
B) physical evidence
C) people
D) productivity
E) All of the above are elements of the extended service mix.

Question 39

Processes and programmes designed to motivate customer- contact employees and supporting service people to work as a team to provide customer satisfaction is known as:

A) professional development.
B) human resource development.
C) internal marketing.
D) customer- managed interactions.
E) interactive marketing.

Question 40

The part of a product that addresses the question, "What is the customer really buying?" is known as:

A) facilitating goods or services.
B) the core product.
C) the value proposition.
D) the actual product.
E) the augmented product.

Question 41

A measure of a brand's ability to capture customer preference and loyalty is:

A) brand awareness.
B) brand audit.
C) brand equity.
D) brand relationships.
E) brand investment.

Question 42

Best Western Hotel group have developed an exclusive rewards programme for Harley- Davidson enthusiasts. Riders are issued with a club membership card, carrying the corporate logos of both Best Western and Harley and which when used entitles the bearer to special treatment and a clean towel issued at check- in. This is an example of which type of branding?

A) co- branding
B) private label
C) national branding
D) licensed branding
E) brand extension strategy

Question 43

A dietary meal replacement product with the brand name Quik Loss is a desirable brand name because it:

A) sounds like other weight loss products in the category.
B) emphasises product features.
C) suggests something about the product benefits.
D) promises success.
E) all of the above

Question 44

You find you have a blinding headache while driving home and pull into a service station to purchase some Panadol. This is an example of a(n):

A) impulse purchase.
B) emergency good.
C) speciality good.
D) staple good.
E) unsought good.

Question 45

Crystal Enterprises is a clothing company that, among other things, manufactures and markets kids' clothes bearing the logo of the singing team, Hi- 5. Crystal Enterprises engaged in lengthy negotiations with Hi- 5 for the right to manufacture garments with the Hi- 5 brand. In addition, Hi- 5 receives a royalty fee on each garment sold. This is an example of which type of branding?

A) cobranding
B) multibranding
C) licensed branding
D) flanking
E) none of the above

Question 46

Which type of convenience good is MOST likely to be placed near the cash register or checkout?

A) impulse goods
B) staples
C) emergency goods
D) all of the above
E) none of the above

Question 47

When a new line extension takes sales away from one of the company's established products, this is known as:

A) brand dilution.
B) brand devaluation.
C) brand repositioning.
D) cannibalisation.
E) none of the above

Question 48

Following a period of unusually wet weather in far North Queensland, a group of holiday resorts banned together with assistance from the Queensland Tourist Bureau to offer prospective tourists a holiday guarantee. The terms of the guarantee stipulated that if more than 10mm of rain fell over three consecutive days, tourists would be given five nights free accommodation from their choice of any of the participating resort hotels. This promotion was attempting to address the service characteristic of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Question 49

The addition of a chilli and sour cream flavoured corn chip to the existing range of Dorito corn chip products is an example of:

A) upward stretch.
B) two- way stretch.
C) line filling.
D) downward stretch.
E) product augmentation.

Question 50

Chocolate manufacturer, Parle, has introduced a new chocolate bar, branded simply as Chox. This is a good brand name since it satisfies the desirable qualities of:

A) it is short, easy to remember and suggests something of the product qualities.
B) it satisfies all the desirable qualities for a brand name.
C) it would be easy to translate into foreign languages and would readily travel into foreign markets.
D) it is capable of being registered and is difficult for competitors to imitate.
E) it is distinctive and could be protected legally.

Question 51

Liquid diet foods fell from favour as consumers preferred a chewier, better tasting low- calorie, snack bar. Manufacturers think they still have a good concept in the liquid product; one that has nutritional benefits for consumers on the go. Their best branding strategy would be:

A) multibranding.
B) brand extension.
C) repositioning.
D) co- branding.
E) line extension.

Question 52

An increasing number of retailers and wholesalers have created their own , also called store brands.

A) unsought products
B) shopping products
C) private labels
D) public labels
E) service variability

Question 53

Products that consist of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything are known as:

A) products.
B) consumables.
C) experiences.
D) shopping goods.
E) services.

Question 54

A name, term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors is known as a:

A) logo.
B) service mark.
C) brand.
D) trade mark.
E) packaging.

Question 55

Marketers consider products as having several levels. Which of the following is the most basic level?

A) augmented product
B) core product
C) actual product
D) facilitating goods or services
E) value proposition

Question 56

A product line is BEST defined by which of the following statements?

A) a group of products on a store rack that are all priced similarly such as "Everything Under $20"
B) the act of offering several products for sale as a single unit with a single price
C) the set of all products that a company offers
D) a group of products that are closely related because they have similar functions and are sold to the same customers through the same types of outlets

Question 57

The of the product mix refers to how closely related the various products are in terms of end use, production requirements or distribution channels.

A) depth
B) breadth
C) length
D) flexibility
E) consistency

Question 58

For Holden motor vehicle company, the Commodore has been a major selling product line for many years. Within the Commodore product line are a number of versions including: the Calais, Omega, Sports and Redline models. Collectively these versions are known as Holden's product mix:

A) depth.
B) breadth.
C) length.
D) flexibility.
E) consistency.

Question 59

When a company plans to take a brand into international markets, it may need to consider which of the following?

A) product adaptation
B) modified labelling
C) modified packaging
D) all of the above
E) none of the above

Question 60

A major newspaper publishing company has just learned that the cost of paper is set to increase substantially. Management feel they have little choice but to raise the price of a daily newspaper because this price rise will place significant pressure on the cost of which of the following?

A) raw materials and supplies
B) raw materials and capital items
C) component parts and component materials
D) manufactured parts and raw materials
E) accessory equipment and installations

Question 61

Which of the following BEST describes brand dilution?

A) Lack of promotional activity causes consumers to forget the brand.
B) Overuse of a brand name causes consumers to cease associating a brand with a specific product.
C) When sales of a line extension take sales away from an established brand.
D) A poorly positioned brand becomes associated with attributes and benefits that are not relevant.
E) Aggressive competitive activity contributes to weakening of the brand and loss of market share.

Question 62

Maureen considers that she has difficult hair; it is thick, curly and is very difficult to manage unless she has a good style cut. Of all the stylists at her local salon, Maureen has found that Lauren gives her a superior cut. Whenever Maureen makes a salon appointment, she always requests Lauren. In the event that Lauren is unavailable, Maureen prefers to reschedule her appointment for a day when Lauren is available rather than settle for one of the other stylists. Maureen is trying to manage the service problem of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Question 63

The total number of items a company carries with its product lines is termed the product mix:

A) depth.
B) breadth.
C) length.
D) flexibility.
E) consistency.

Question 64

A fundamental asset underlying brand equity is:

A) customer relationships.
B) customer loyalty.
C) share of customer relationships.
D) customer satisfaction.
E) customer equity.

Question 65

Wood pulp, aluminium, glass tubing and mortar are all examples of:

A) capital items.
B) supplies.
C) component parts.
D) raw materials.
E) manufactured materials.

Question 66

A consumer product or service where the customer characteristically engages in a careful process of election by comparing on such attributes as suitability, quality, price and style is known as a(n):

A) convenience good.
B) shopping good.
C) emergency good.
D) speciality good.
E) sought good.

Question 67

Convenience goods can be classified into types, based on typical purchasing patterns. Which of the following is NOT one of the standard types of convenience good?

A) emergency goods
B) staples
C) impulse goods
D) shopping goods
E) none of the above

Question 68

That services cannot be seen, tasted, felt, heard or smelled prior to purchase and consumption refers to which characteristic of services?

A) intangibility
B) inseparability
C) variability
D) perishability
E) autonomy

Question 69

The number of different product lines offered by a company is termed the product mix's:

A) depth.
B) breadth.
C) length.
D) flexibility.
E) consistency.

Question 70

Which of the following techniques can be used by service firms to enhance productivity?

A) Invest in recruitment and training to ensure that the employers work harder or smarter.
B) "Industrialise the service" by adding equipment and standardising production.
C) Invest in technology to replace expensive labour.
D) Increase the quantity of their service by sacrificing some quality.
E) all of the above

Question 71

The fact that service quality depends on the buyer- seller interaction during the service encounter is often termed:

A) interactive marketing.
B) simultaneity of delivery.
C) experiential marketing.
D) encounter marketing.
E) total quality management.

Question 72

Many ski resorts are selling summer vacation packages promoting fishing, hiking, bush- walking, rock- climbing, wildflowers and other natural resources. This is an example of a strategy designed to address the problem of:

A) intangibility.
B) inseparability.
C) variability.
D) perishability.
E) autonomy.

Question 73

Which of the following is NOT an alternative term for private labels?

A) generics
B) manufacturer
C) house brands
D) all of the above
E) none of the above

Question 74

To celebrate the Barbie Doll's 50th birthday, Fiat motor vehicles joined with toy manufacturer, Mattel, to market the 500 Barbie, a pink coloured motor car. The 500 Barbie is only available in nail polish pink colour and features a free lipstick in the glove compartment. This is an example of which type of branding?

A) private label
B) brand extension strategy
C) co- branding
D) national branding
E) licensed branding

Question 75

Holden manufactures and markets many different makes and models of motor vehicles, including: Barina, Volt, Commodore, Cruze, Combo, Captiva, Sportswagon and Ute. Collectively, these makes and models are known as Holden's:

A) product fill.
B) product variety.
C) product line.
D) product assortment.
E) product depth.

Question 76

Wood, raw cotton, bauxite and industrial grade diamonds are all examples of:

A) capital items.
B) component parts.
C) raw materials.
D) manufactured materials and parts.
E) supplies.

Question 77

That services are produced at the same time as they are consumed refers to which characteristic of services?

A) intangibility
B) inseparability
C) variability
D) perishability
E) autonomy

Question 78

Products that are purchased frequently with minimal comparison and little purchasing effort are known as:

A) shopping goods.
B) convenience goods.
C) sought goods.
D) consumer durables.
E) speciality goods.

Question 79

The Electric company manufactures and sells washing machines. Convinced that consumers are really purchasing a cleaning system, Electric offers a complete line of accessories, special detergents and cleaning/dying solutions, a toll- free trouble hotline, and a comprehensive service plan. Electric is concentrating on the:

A) augmented product.
B) core product.
C) tangible product.
D) actual product.
E) conformance quality.

Question 80

One technique that service providers can use to address the problem of perishability is to:

A) offer incentives to encourage customers to use the service during non- peak periods.
B) use a consistent pricing policy.
C) eliminate complementary services so that employees can focus on the core.
D) provide tangible cues through the physical environment, communications and staff uniforms.
E) standardise the service process.