Deck 10: Product Concepts

Question 1

Greenwashing is the term used to describe industrial processes that cause pollution above the permissible limit set by the government.

Answer 1

False

Question 2

Specialty products normally require wide distribution in order to sell sufficient quantities to meet profit goals.

Answer 2

False

Question 3

Scanning universal product codes (UPCs) slows down the process of recording consumer purchases at high-volume outlets.

Answer 3

False

Question 4

Fournotts Corp. manufactures a special kind of filter that can purify water quickly, but the consumers in the market are not aware of the existence of the product. In this case, which of the following strategies will increase the sales of the filter?

A)Using status-conscious advertising
B)Using direct response advertising
C)Using selective advertising
D)Using customer-generated advertising

Question 5

Insurance, burial plots, and similar items fall under the convenience product category.

Question 6

Trademark rights come from registration rather than use.

Question 7

Salespeople actively seek leads to potential buyers to sell unsought products.

Question 8

Decrease in consumer demand for green products was directly responsible for the proliferation of green certifications.

Question 9

An implied warranty is a written guarantee that the good or service is fit for the purpose for which it was sold.

Question 10

The three aspects of packaging that are especially important in international marketing are product line extension, product mix width, and brand equity.

Question 11

Services and ideas are not considered products because they are intangible.

Question 12

The key distinction between consumer products and business products is their intended use.

Question 13

Eve Aura, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this information, which of the following is a characteristic of Eve Aura's products?

A)They are bought very rarely by consumers.
B)They require wide distribution in order to sell sufficient quantities.
C)They are purchased after more planning effort than specialty products.
D)They will be more expensive than shopping products.

Question 14

Consumers have trouble comparing homogenous shopping products because the prices, quality, and features of such products are similar.

Question 15

A service mark is the exclusive right to use a brand or part of a brand.

Question 16

Packaging of any product is done for the sole purpose of promoting that product.

Question 17

The universal product code (UPC) system and scanners are used in scanner-based research.

Question 18

An organization's product mix includes all the products it sells.

Question 19

Washers, dryers, refrigerators, and televisions are examples of unsought products.

Question 20

Each product item in the product mix may require a separate marketing strategy.

Question 21

Product line depth refers to the number of:

A)competitors present in the market for a particular product line.
B)product lines an organization offers.
C)market segments a firm is willing to target or serve.
D)product items in a product line.

Question 22

A _____ is not possible when a brand name has a negative or vulgar connotation in the local language.

A)adaptations and modifications strategy
B)one-brand-name strategy
C)different brand names in different market strategy
D)product line contraction strategy

Question 23

A difference between informational labeling and persuasive labeling is that informational labeling:

A)focuses on a promotional theme or logo rather than on consumer information.
B)increases a consumer's cognitive dissonance after a purchase.
C)helps a consumer make proper product selections when making a purchase.
D)gives an impression of environmental friendliness to a product.

Question 24

Which of the following statements is true of an unsought product?

A)Marketers of unsought products often use selective, status-conscious advertising to maintain a product's exclusive image.
B)Consumers buy unsought products regularly, usually without much planning and at inexpensive prices.
C)Companies dealing with unsought products must go directly to consumers through a salesperson, direct mail, or direct response advertising to create awareness about their products.
D)Consumers usually buy an unsought product only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.

Question 25

Universal product codes (UPCs) are also known as _____ because the numerical codes appear as a series of thick and thin vertical lines.

A)mnemonics
B)bar codes
C)serial codes
D)codicology

Question 26

Which of the following statements is true of greenwashing?

A)Consumer demand for green products helps abate proliferation of green certifications.
B)Certification of a product by the same company that produced it should be clearly stated.
C)The Federal Trade Commission does not interfere with the rules regarding green certifications.
D)Greenwashing is a highly reliant way of identifying environment-friendly products.

Question 27

Which of the following is a difference between individual branding and family branding?

A)In individual branding, different brand names are used for different products, whereas in family branding, several different products are marketed under the same brand name.
B)Companies use individual branding when products do not vary in use or performance, whereas companies use family branding when products vary greatly in use or performance.
C)Individual branding identifies the brand of a part that makes up a product, whereas family branding identifies the entire product.
D)Individual branding is used when two brands receive equal treatment, whereas family branding is used when two brands borrow from each other's brand equity.

Question 28

Dunchen Moo, a manufacturer of dairy products, sells milk powders, flavored whipped cream, and yogurts. It markets a number of yogurts, including Dunchen All Natural, Dunchen Fruit on the Bottom, Dunchen Light & Fit, DunActive, and Dun-o-nino. The large variety of yogurts sold by the Dunchen brand is collectively an example of a _____.

A)market segment
B)target market
C)product mix
D)product line

Question 29

Gypsy Foods Inc. is a multinational food and beverage company. Its product labels are colorful and project the words "new" and "improved" along with the product's name. The packages do not provide details about the product's ingredients. In this case, Gypsy Foods is using _____.

A)persuasive labeling
B)informational labeling
C)descriptive labeling
D)grade labeling

Question 30

Which of the following statements is true of convenience products?

A)A consumer is unwilling to shop extensively for convenience products.
B)They are shopping products that are perceived to be similar in features.
C)A consumer is unwilling to accept other substitutes for convenience products.
D)They are shopping products that are not actively sought after by consumers.

Question 31

Which of the following statements is true of product items?

A)They are the test products that are released by a company before starting a product line.
B)They include all the products that an organization manufactures and sells to its consumers.
C)They are never made part of any product lines and are sold only in select outlets.
D)They can be easily distinguished from other products produced by the same organization.

Question 32

Which of the following statements is true of product lines?

A)They limit the product choices offered to customers to one or two product items.
B)They provide economies of scale in advertising.
C)They require greater transportation and warehousing costs than product items.
D)They increase a firm's manufacturing and inventory costs.

Question 33

Compared with convenience products, shopping products are:

A)less expensive.
B)found in fewer stores.
C)purchased without significant planning.
D)new products unknown to a potential buyer.

Question 34

Which of the following is a reason why many retailers are creating and promoting their own captive brands?

A)Captive brands carry evidence of a store's affiliation and are available everywhere.
B)Captive brands are displayed separate from mainstream products in a store.
C)This strategy allows retailers to ask a price similar or equal to manufacturers' brands.
D)This strategy allows retailers to market private brands as inferior to manufacturers' brands.

Question 35

Paulette goes to an electronic store to purchase a refrigerator. After comparing the technical features, prices, and durability of the various brands of refrigerators available, she purchases the one that is cheaper and smaller in size than the rest. In this case, Paulette has purchased a _____.

A)shopping product
B)business product
C)specialty product
D)convenience product

Question 36

The most obvious function of packaging is to:

A)secure the right of a company to use a brand or part of a brand.
B)protect a brand name from being declared a generic product name.
C)even out seasonal sales patterns.
D)contain products that are liquid, granular, or otherwise divisible.

Question 37

Torque Roz, an automobile company, uses a unique tire design on its vehicles. A rival company was found copying the exact design in its automobiles. Torque Roz was able to file a case against the rival company about this issue and win the lawsuit. In this scenario, Torque Roz's unique tire design is a registered _____.

A)captive brand
B)trademark
C)private brand
D)service mark

Question 38

Identify a true statement about global branding strategies.

A)A one-brand-name strategy is useful when a company markets mainly one product.
B)Using different brand names in different markets leads to greater identification of the product from market to market.
C)A one-brand-name strategy reduces the ease of coordinating promotion from market to market.
D)Using different brand names in different markets means that a company does not follow localization.

Question 39

Three Arrows Inc. is a company that manufactures bags from recycled paper. Its marketers receive complaints that the bags get wet easily and tear after a few weeks of use. They decide to respond to their customers' complaints by using a thicker, waterproof paper. This is an example of _____.

A)product placement
B)functional modification
C)planned obsolescence
D)quality modification

Question 40

In the context of product modification, reducing a product's quality:

A)provides new opportunities for market segmentation.
B)lets a manufacturer lower the price of the product.
C)results in increased brand loyalty or new opportunities for market segmentation.
D)helps firms cater to the upper classes effectively.

Question 41

Elsem Foods Inc. is a company that manufactures packaged food. It sells several varieties of packaged food such as savories, cupcakes, candies, crackers, fruit juices, and carbonated drinks. It receives its largest profit from its newly introduced line of tropical fruit juices that are available in different flavors, such as orange, apple, litchi, and cranberry. Given this information, which of the following is a product item of Elsem Foods?

A)Savories
B)Candies
C)Orange juice
D)Carbonated drinks

Question 42

Yumé Nu, a battery manufacturing company, began marketing its products as environment friendly and biodegradable even though it was not scientifically verified. In this scenario, Yumé Nu has used _____ in order to sell its products.

A)quality modification
B)product line extension
C)repositioning
D)greenwashing

Question 43

Remnants Perfumes is a premium, exotic women's fragrance. The manufacturers of Remnants Perfumes want to establish their products as specialty products. In this case, which of the following will be an objective of the manufacturers of Remnants Perfumes?

A)To employ mass advertising strategies
B)To increase the distribution network
C)To focus on establishing a brand name
D)To decrease the prices of the products

Question 44

Which of the following statements is true of an implied warranty?

A)It prohibits other firms from using a brand or part of a brand without permission.
B)It gives the impression of environmental friendliness to a product.
C)It ranges from simple statements to extensive documents written in technical language.
D)It comes with the sale of every product under the Uniform Commercial Code.

Question 45

Which of the following statements is true of an express warranty?

A)It gives the impression of environmental friendliness to a product.
B)It is an unwritten guarantee that a good or service is fit for the purpose for which it is sold.
C)It prohibits other firms from using a brand or part of a brand without permission.
D)It ranges from simple statements to extensive documents written in technical language.

Question 46

Consumers usually buy a(n) _____ only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.

A)unsought product
B)specialty product
C)convenience product
D)shopping product

Question 47

Which of the following statements is true of a specialty product?

A)It is widely distributed in a geographic area so that sufficient quantities can be sold.
B)It is marketed using selective, status-conscious advertising to maintain its exclusive image.
C)It is easily substituted with products that have the same features.
D)It is unknown to a potential buyer or a known product that the buyer does not actively seek.

Question 48

Which of the following statements is true of trademarks?

A)Trademark rights are effective from the date of registration.
B)Rights to trademarks are also given to generic product names.
C)Trademark protection must be renewed every year.
D)Rights to trademarks last as long as the mark is used.

Question 49

Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its products in all European countries under the same brand name. In this scenario, Yater's Inc. has decided to use a(n) _____.

A)transactional marketing strategy
B)co-branding strategy
C)one-brand-name strategy
D)individual branding strategy

Question 50

Remonet, a smartphone manufacturer, has launched its new products-HY15, HY20, and HY50. These smartphone models are part of its HY series. HY15, being the most budget friendly, attracts more consumers and achieves better sales figure. In this scenario, Remonet's HY15 smartphone model is an example of a(n) _____.

A)convenience product
B)product item
C)unsought product
D)product line

Question 51

A cell phone manufacturing company is said to functionally modify one of its products if it:

A)introduces a sleek and stylish version of the cell phone with the same specifications.
B)reduces the price of the cell phone ahead of a sale.
C)introduces stylish headphones for the cell phone.
D)releases a software update to fix the cell phone's heating problem.

Question 52

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.

A)product line reeling
B)product line extension
C)product line classification
D)product line contraction

Question 53

Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.

A)informational labeling
B)persuasive labeling
C)grade labeling
D)promotional labeling

Question 54

One of the functions of universal product codes (UPCs) is to:

A)allow products to be modified for improved sales.
B)help customers resell products that have no market value.
C)increase customer loyalty and brand value of a product.
D)help retailers prepare records of customer purchases.

Question 55

Which of the following statements is true of an organization's product mix?

A)Firms widen their product mix to capitalize on established reputations.
B)A wide product mix decreases sales and profit-making potential.
C)A wide product mix means that the product line is deep.
D)All product items in a product mix follow a standard marketing strategy.

Question 56

Compared with convenience products, shopping products are:

A)less expensive.
B)found in fewer stores.
C)purchased without significant planning.
D)new products unknown to a potential buyer.

Question 57

Nestor's Nesties, a confectionery company, sells a variety of dark chocolates, milk chocolates, gummies, fruit juices, biscuits, cereals, and even cheese. These products together constitute the company's _____.

A)brand symbol
B)product line
C)brand mark
D)product mix

Question 58

Identify a true statement about specialty products.

A)They are made directly available to a consumer through direct mail.
B)They are relatively inexpensive and merit little shopping effort.
C)They are easily substituted with other products.
D)They are distributed to only a few outlets in a geographic area.

Question 59

Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.

A)informational labeling
B)persuasive labeling
C)grade labeling
D)promotional labeling

Question 60

_____ occurs when two brands receiving equal treatment borrow from each other's brand equity.

A)Ingredient branding
B)Cooperative branding
C)Complementary branding
D)Family branding

Question 61

Compare the four categories of consumer products with examples of each category.

Question 62

Define express warranty and implied warranty.

Question 63

Discuss the significance of product mix width and product line depth in marketing.

Question 64

Discuss the concept of planned obsolescence.

Question 65

Explain the importance of product offerings in creating a marketing mix.