Deck 6: Product and Brand Strategy

Question 1

A product that is viewed in terms of the essential benefits that a buyer expects to receive from it is called a(n) _____.

A) tangible product
B) generic product
C) intangible product
D) meta product

Answer 1

B

Question 2

Major and minor equipment, such as basic machinery, tools, and other processing facilities, can be categorized as _____.

A) specialty goods
B) organizational goods
C) semifinished goods
D) convenience goods

Answer 2

B

Question 3

Goods grown or extracted from the land or sea, such as iron ore, wheat, and sand are better known as _____.

A) agricultural products and raw materials
B) consumer goods
C) convenience goods
D) specialty goods and intermediate products

Answer 3

A

Question 4

Which of the following products can be classified as an organizational good?

A) An electric generator purchased by an individual to use in the event of a power failure
B) Large amounts of fabric purchased by an individual to make upholstery for his or her house
C) Loaves of bread purchased by a store owner for the purpose of reselling them at his store
D) Timber purchased by the owner of a furniture store to make chairs

Question 5

Which of the following is a difference between convenience goods and shopping goods?

A) Shopping goods generally require broadcast promotion, while convenience goods generally require more targeted promotion.
B) Convenience goods are used to run a business, while shopping goods are used to produce other products.
C) Convenience goods are purchased frequently with minimum effort, while shopping goods are purchased after spending a considerable amount of time and energy.
D) Shopping goods generally require longer channels of distribution than convenience goods.

Question 6

Alcove Inc., a computer hardware manufacturer, provides post-installation technical support to its customers by issuing free newsletters that contain tips on enhancing the performance of a product and dealing with common performance-related issues. In this scenario, Alcove is marketing _____.

A) improvised products
B) meta products
C) intangible products
D) extended products

Question 7

Which of the following is a basic assumption underlying product classification schemes?

A) Many products are unique and cannot be categorized under any product class.
B) The same marketing strategy can be used for all product categories.
C) Products with common attributes can be marketed in a similar fashion.
D) Products should be differentiated on the basis of profit margins rather than product features.

Question 8

_____ are consumer goods that are purchased frequently with minimum effort.

A) Specialty goods
B) Convenience goods
C) Shopping goods
D) Luxury goods

Question 9

Which of the following statements regarding organizational goods is true?

A) Organizational goods are not purchased as means to an end, but rather as an end in themselves.
B) Buyers of organizational goods are generally ill-informed.
C) Organizational goods are often purchased directly from the original source with few middlemen.
D) The primary purchasing motive for organizational goods is convenience, even if the costs are high.

Question 10

Lumber, coal, and iron ore are examples of _____.

A) consumables
B) convenience goods
C) raw materials
D) specialty goods

Question 11

Products that are purchased by business firms for the purpose of producing other goods or for running a business are called _____.

A) convenience goods
B) organizational goods
C) specialty goods
D) shopping goods

Question 12

Which of the following is true of agricultural goods and raw materials?

A) These products have a high value per unit.
B) These products are fairly homogeneous.
C) These products are always sold in single units or in small volumes.
D) These products cannot be used to produce other goods.

Question 13

Executives commit the error of "marketing myopia" when they _____.

A) fail to focus on their company's needs
B) do not define a product solely in terms of the tangible product
C) define their company's product in accordance with their customers' needs and requirements
D) define their company's product too narrowly

Question 14

Personal care products that bring to the purchaser feelings of self-enhancement and security in addition to the essential benefits they offer are examples of _____.

A) meta products
B) generic products
C) tangible products
D) conventional products

Question 15

_____ fall under the category of convenience goods.

A) Impulse goods
B) Shopping goods
C) Luxury goods
D) Specialty goods

Question 16

Which of the following scenarios shows a person purchasing convenience goods?

A) Joshua buys a loaf of bread while shopping for provisions in a grocery store.
B) After a lot of consideration, Jenna orders a solitaire ring from an exclusive jeweler.
C) Aliyah and her husband finally pick a car after examining many models.
D) Alice purchases four kilograms of white sand for her Zen garden.

Question 17

Which of the following best defines tangible products?

A) They refer to those goods that cannot be perceived by touch.
B) They refer to the physical entities or services that are offered to a buyer.
C) They refer to goods that cannot be resold by the buyer.
D) They refer to the essential benefits a buyer expects to receive from a service.

Question 18

Alcove Studio is a designer boutique that sells the most recent collections from top designers. Since it sells exclusive clothing, customers from all over the world are willing to pay exorbitant prices, and place orders months in advance. Alcove Studio's goods are examples of _____.

A) specialty goods
B) organizational goods
C) impulse goods
D) convenience goods

Question 19

A tangible product along with the whole cluster of services that accompany it is called a(n) _____.

A) extended product
B) improvised product
C) meta product
D) physical product

Question 20

Convenience goods, shopping goods, and specialty goods are the three classes of _____.

A) agricultural goods
B) complementary goods
C) organizational goods
D) consumer goods

Question 21

The depth of a product mix refers to the:

A) average number of products in each product line.
B) degree of similarity between product lines.
C) number of product lines handled by the organization.
D) total number of products or items in the company's product mix.

Question 22

Which of the following statements is true of product quality?

A) Quality encompasses only the tangible aspects of a firm's products or services.
B) The customer is the key perceiver of quality.
C) Quality is only evaluated from the perspective of the manufacturer.
D) Companies rarely formalize an interest in providing quality products.

Question 23

The width of a product mix refers to the:

A) number of product lines handled by the organization.
B) total number of items or products in the company's product mix.
C) average number of products in each line.
D) extent to which one product line differs from another.

Question 24

A vertical market is a market in which _____.

A) customers are restricted to a few industries
B) goods are purchased by specific firms in different industries
C) goods are purchased by all types of firms in many different industries
D) vendors offer a wide range of goods to a large number of customers

Question 25

Which of the following is the legal term for a brand?

A) Generic mark
B) Trade dress
C) Trademark
D) Watermark

Question 26

From the standpoint of a marketing manager, product classification is useful because it:

A) helps to understand that convenience goods generally require targeted promotion.
B) provides the knowledge that shopping goods typically need broadcast promotion.
C) helps in distinguishing the scope of vertical markets and horizontal markets.
D) assists in providing guidelines for developing an appropriate marketing mix.

Question 27

Shannon Cruz is very particular about the kind of blue jeans she wears. She refuses to buy anything other than Reeve's 201 and is very keen about finding that particular fit, since her local store does not have it. In this scenario, Reeve's 201 is an example of a(n) _____.

A) convenience good
B) intermediate good
C) intangible good
D) specialty good

Question 28

_____ can be defined as the degree of excellence or superiority that an organization's product possesses.

A) Quality
B) Width
C) Depth
D) Reach

Question 29

A _____ refers to a market that is typically characterized by a limited number of buyers.

A) horizontal market
B) matrix market
C) vertical market
D) parallel market

Question 30

The vertical market for a product is deep when:

A) the existing customer base is more likely to switch to substitutes.
B) a large percentage of producers in the market use the product.
C) the product is purchased by all types of firms in many different industries.
D) the product appeals to different social classes of consumers.

Question 31

In the context of product management, value refers to the:

A) tangible aspects of a firm's product or service.
B) quality of a product, and not its price.
C) amount of money spent in producing a product.
D) returns a customer gets in exchange for what the customer pays.

Question 32

Lystronia Inc. is a world-renowned manufacturer of culture media products. The company produces and supplies prepared media to laboratories all over the world for growing and testing microorganisms. Since Lystronia's customers are restricted to the healthcare industry, Lystronia typically operates in a _____.

A) parallel market
B) vertical market
C) horizontal market
D) high-demand market

Question 33

A _____ refers to a group of products that share common characteristics, distribution channels, customers, or uses.

A) product variant
B) product portfolio
C) product line
D) product matrix

Question 34

Which of the following serves as a unique identifier and is perhaps the single most important element on the package of a product?

A) The seal
B) The brand name
C) The price
D) The trade dress

Question 35

The demand for organizational goods is a(n) _____.

A) end-user demand
B) direct demand
C) derived demand
D) low-value demand

Question 36

Alan visits a shopping mall in his neighborhood. He recollects his lessons from a marketing class and attempts to relate them to his observations at the mall. Which of Alan's interpretations is most accurate?

A) Alan believes that Tie World, a shop that exclusively sells ties, has a wide product mix.
B) Alan believes that The Corner Store, a shop that sells everything from baby rattles and potting soil to contact lens cleaning solution, has a narrow product mix and deep product lines.
C) Alan believes that The Giga-store, a shop that sells hundreds of self-help books, novels, and religious-themed music CDs, has a narrow and shallow product mix.
D) Alan believes that Ming's Corner, a shop that sells thirty-six different kinds of muffins, has a narrow and deep product mix.

Question 37

Remus Co., a pharmaceutical company that is involved in drug discovery and development, is ISO 9000-certified. The ISO 9000-certification indicates that Remus:

A) provides subsidized products in a relatively horizontal market.
B) meets standardized levels of product quality.
C) follows a traditional marketing approach focused primarily on product features.
D) competes in a purely vertical market.

Question 38

Which of the following statements is true about product quality and value?

A) The terms quality and value are synonymous in the context of product management.
B) Quality encompasses the tangible aspects of a product while value encompasses the intangible aspects of a product.
C) The level of quality and value a firm's products have cannot be measured against external standards.
D) The value of a product encompasses not only the quality of the product but also its price.

Question 39

The full set of products offered for sale by an organization is called a firm's ____.

A) product family
B) product mix
C) product line
D) product category

Question 40

Which of the following is true of horizontal markets?

A) These markets offer only specialty goods so that consumers will make a special effort to buy them.
B) These markets offer certain products that have a limited number of buyers.
C) These markets offer goods that are purchased by all types of firms in many different industries.
D) These markets include only those convenience goods that are purchased frequently and with minimum effort.

Question 41

A producer of alcoholic beverages produces four different brands of beer: BlackStar, BlueStar, Grandeur, and Holmes. BlackStar is a standard brew, while BlueStar has low alcohol content. Grandeur is low in calories, and Holmes has high alcohol content. In this case, the manufacturer uses different brand names for each of its products to:

A) associate the image of one product with that of another.
B) increase consumer brand awareness.
C) enter a new product class.
D) target specific market segments more efficiently.

Question 42

Products that are equivalent to national brands but are priced much lower are called _____.

A) prestige brands
B) private label brands
C) generic product brands
D) dual brands

Question 43

Fresh-Cola Inc. is a manufacturer of carbonated drinks that packages its products in bottles, cans, and 12-pack cartons. A standard 12-pack carton of these drinks can neither fit conveniently in the standard-size refrigerator shelf, nor can the drinks be easily dispensed from the carton. Fresh-Cola introduces a new design called "the refrigerator pack." The refrigerator pack is designed to fit easily on a standard refrigerator shelf and dispenses one can at a time. With its new refrigerator pack, Fresh-Cola:

A) has failed to consider its consumers' needs in making its packaging decisions.
B) is using packaging as a part of its product differentiation strategy.
C) is using a brand extension strategy for market development.
D) implementing a cost leadership strategy in the market for carbonated drinks.

Question 44

In _____, a current brand name is used to enter a completely different product class.

A) line extension
B) brand extension
C) brand dilution
D) generic branding

Question 45

One of the advantages of using _____ is that a firm can distance products from other offerings it markets.

A) dual branding
B) multibranding
C) franchise extension
D) brand extension

Question 46

Duncan Corp. introduces four modified versions of its popular brand of Maxims morning cereal. The four new variants of cereal include "Maxims Corn Flakes," "Maxims Raisin Bran," "Maxims Honey Clusters," and "Maxims Brown Sugar and Oats." In doing so, Duncan has used a _____ approach with its Maxim cereal brand.

A) line extension
B) multibranding
C) brand extension
D) franchise extension

Question 47

Which of the following is true of the different stages in a product life cycle?

A) Profits increase and are positively correlated with sales during the growth stage of the product life cycle.
B) The production and marketing costs are generally low during the introduction phase of the product life cycle.
C) The growth stage is the last stage of the product life cycle.
D) The amount of time and money spent on promoting products is highest in the decline stage of the product life cycle.

Question 48

_____ is a method of differentiating a relatively homogeneous product.

A) Mass marketing
B) Product line extension
C) Distinctive packaging
D) Family branding

Question 49

In the context of branding, brand equity:

A) is the set of assets or liabilities linked to a brand that adds or subtracts value.
B) is not determined by the consumer.
C) can only be possessed by consumer goods and not by organizational goods.
D) is independent of the results of the marketplace's relationship with a brand.

Question 50

Sapphire Corp., a manufacturer of perfumes, decides to use its well-established corporate image to enter a new product class. It does so by attaching the Sapphire corporate name to its new line of clothing and accessories. From the information provided in the scenario, it is evident that Sapphire is using a _____ strategy to market its products.

A) multibranding
B) line extension
C) family branding
D) cobranding

Question 51

_____ is a form of branding, whereby a company attaches the corporate name to a product to enter either a new market segment or a different product class.

A) Multibranding
B) Franchise extension
C) Generic branding
D) Line extension

Question 52

One of the basic objectives of the maturity stage of a product's life cycle is to:

A) establish a market for the product type.
B) persuade early adopters to buy the product.
C) develop a high degree of brand preference among consumers.
D) seek growth by luring customers from competitors.

Question 53

Spending significant amounts of money to familiarize customers with new brands is a disadvantage primarily associated with _____.

A) franchise extension
B) multibranding
C) dual branding
D) line extension

Question 54

_____ is the culmination of a consumer's assessment of the product, the company that manufactures and markets the product, and all other variables that affect the product between manufacture and consumer consumption.

A) Brand positioning
B) Brand equity
C) Brand dilution
D) Brand extension

Question 55

Which of the following is true of brand equity?

A) Organizational products cannot have brand equity.
B) Brand equity is a company's evaluation of its products and sales figures.
C) Advertising does not have any effect on brand equity.
D) Brand equity is determined by the consumer.

Question 56

Soffia Inc. manufactures a moisturizing soap with anti-ultraviolet properties, which is sold under the brand name DewMist. The company also manufactures Safechoice, a non-abrasive, antibacterial brand of soap, which is a different brand. Which of the following strategies has Soffia used in this scenario?

A) Multibranding strategy
B) Dual branding strategy
C) Cobranding strategy
D) Family branding strategy

Question 57

Whizzle Corp. first introduced a line of toothpastes under the Whizzle brand name. A few years later, it introduced two different products, a mouthwash and a chewing gum, using the same brand name. Whizzle is using a _____ strategy to market its products.

A) line extension
B) multibranding
C) brand extension
D) joint branding

Question 58

Which of the following statements is true with regard to brand equity for organizational products?

A) Unlike consumer products, organizational products do not possess brand equity.
B) The success or failure of brand names for organizational products is local in nature and does not affect its global reputation.
C) It is relatively easier to position new organizational products in a manner differing from existing products.
D) Attempts to establish or change brand image must take into account distributor channel members employed to distribute the product.

Question 59

The use of a brand name to facilitate entry into a new market segment is called _____.

A) franchise extension
B) line extension
C) myopic marketing
D) multibranding

Question 60

Which of the following does a multibranding strategy involve?

A) Companies marketing their brand jointly with that of their competitors
B) Companies assigning different brand names to each of their products
C) Companies attaching their corporate name to a product to enter a different product class
D) Companies assigning different brand names to the same products in different outlets

Question 61

Which of the following scenarios shows how a product was improved by modifying its marketing dimensions?

A) The Caribbean cruise was improved by adding two more stops in Mexico.
B) The 800-page history of chiropody was modified by including an extensive index.
C) Liz Claiborne increased the number of retail outlets that carries its sportswear.
D) The Dillard House restaurant added three new vegetarian dishes to its menu.

Question 62

According to the process of product adoption and diffusion, which of the following adoptive categories first begins to buy a product if the experience of innovators has been favorable?

A) Laggards
B) Early majority
C) Late majority
D) Early adopters

Question 63

Which of the following scenarios shows how a product is improved by modifying a product attribute?

A) An aerated drinks manufacturer reduces the price of one of its drinks due to low sales.
B) A large spa in Reno begins advertising its services on the Internet.
C) A dairy products manufacturer changes the promotion strategy of its line of processed cheese.
D) A company that sells packaged seafood adds an eco-friendly label to its packaging.

Question 64

Which of the following is a marketing management technique in which a company's current product offerings are reviewed to ascertain whether each product should be continued as is, improved, modified, or deleted?

A) Product generation
B) Product audit
C) Product definition
D) Product creation

Question 65

Which of the following adoptive categories involved in the diffusion of innovation is the most reluctant to make changes and is comfortable with traditional products?

A) Early majority
B) Laggards
C) Early adopters
D) Innovators

Question 66

Which of the following statements about product deletion is true?

A) Product deletions are necessary because the number of new products introduced keeps decreasing each year.
B) The deletion plan should keep consumers supplied with replacement parts and repair service.
C) The deletion plan is not required to provide for clearing out of stock in question.
D) The deletion plan should allow the retailer or distributor to decide which products should be deleted.

Question 67

In the context of the adopter categories of product diffusion, the biggest category of buyers is divided into two groups called the:

A) innovators and the laggards.
B) laggards and the early adopters.
C) early majority and the late majority.
D) early majority and the innovators.

Question 68

In the context of product purchasing, the diffusion of innovation is:

A) used to describe an audit task.
B) the spread of a product through the population.
C) applied to products at the introductory stage of the product life cycle.
D) used to describe the ability of an organization to create entirely new products.

Question 69

In the context of the diffusion of innovation, _____ refer to the buyers who are the first to purchase a product.

A) innovators
B) early adopters
C) laggards
D) late adopters

Question 70

When contemplating a product deletion, a firm studies customer migration patterns to determine:

A) the profit contribution of the product to the firm.
B) whether the product has outgrown its usefulness.
C) whether the product has reached a level of maturity and saturation in the market.
D) whether customers of the product would switch to other substitute products marketed by the same firm.

Question 71

Which of the following is an attribute that can be changed to alter a product?

A) Product price
B) Promotion strategy
C) Distribution channel
D) Product packaging

Question 72

A fad can be best described as a(n):

A) accepted and popular product that goes through repetitive cycles of popularity.
B) product that has a lengthy period of popularity which gives competitors the chance to capitalize on the product.
C) product that experiences an intense but brief period of popularity.
D) specialty product that has retained its popularity for a long time.

Question 73

A company changes the packaging of one of its existing products to make it more attractive to consumers. The company has improved its product by modifying its _____.

A) marketing dimensions
B) attributes
C) channels of distribution
D) promotion strategy

Question 74

In which of the following stages of the product life cycle are promotion efforts minimal?

A) The introduction stage
B) The decline stage
C) The maturity stage
D) The growth stage

Question 75

_____ are accepted and popular product styles that go through a repetitive cycle of popularity.

A) Fashions
B) Impulse goods
C) Specialty products
D) Fads

Question 76

With regard to product improvement, _____ refer mainly to product features, design, package, and so forth.

A) marketing dimensions
B) attributes
C) extensions
D) fads

Question 77

With regard to the adopter categories of the diffusion of innovation, laggards are:

A) fearful of debt, but may eventually purchase a well-established brand.
B) the first to purchase a product through early-bird promotional offers.
C) venturesome and are willing to take risks.
D) most likely to begin buying new goods if the experience of innovators is favorable.

Question 78

Price, promotion strategy, and channels of distribution are examples of _____.

A) marketing dimensions
B) marketing trends
C) product features
D) product attributes

Question 79

Identify the primary reason for conducting a product audit.

A) To develop a marketing plan for new products
B) To detect sick products and bury them
C) To earn the estimated profits without introducing new products
D) To implement cost cutting strategies without altering the product mix

Question 80

Which of the following is a characteristic of an early adopter?

A) They are extremely cautious and skeptical about new ideas.
B) They are generally respected social leaders.
C) They are usually below average in education.
D) They do not exert any influence on the early majority.