Deck 10: Setting Product Strategy

Question 1

Marketers must see themselves as benefit providers.For example,when a shopper purchases new shoes,he/she expects the shoes to cover his/her feet and allow him/her to walk unobstructed.This is an example of what level in the consumer-value hierarchy?

A) pure tangible good
B) basic product
C) augmented product
D) potential product
E) generic product

Answer 1

B

Question 2

Because ________ are purchased frequently,marketers should make them available in many locations,charge only a small markup,and advertise heavily to induce trial and build preference.

A) nondurable goods
B) durable goods
C) services
D) unsought goods
E) specialty goods

Answer 2

A

Question 3

A customer judges a product offering by three basic elements: product features and quality,services mix and quality,and ________.

A) performance
B) utility
C) tangibility
D) price
E) availability

Answer 3

D

Question 4

Which of the following are tangible goods that normally survive many uses?

A) generic goods
B) durable goods
C) core benefits
D) convenience goods
E) unsought goods

Question 5

How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider.

A) value proposition
B) consumption system
C) value system
D) quality perception
E) value chain

Question 6

Products such as insurance,cemetery plots,and smoke detectors are examples of ________ that are products that the consumer does not know about or does not normally think of buying.

A) specialty goods
B) unsought goods
C) heterogeneous shopping goods
D) homogeneous shopping goods
E) convenience goods

Question 7

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds,and every Ford GT coming off the assembly line does this,the model is said to have high ________.

A) reliability
B) conformance quality
C) durability
D) compatibility
E) interoperability

Question 8

Industrial goods can be classified as ________,capital items,or suppliers and business services based on their relative cost and how they enter the production process.

A) service components
B) sub-assemblies
C) accessories
D) specialty goods
E) materials and parts

Question 9

Capital items are long-lasting goods that facilitate developing or managing the finished product.They include two groups: installations and ________.

A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials

Question 10

________ describes the product's look and feel to the buyer;it has an advantage of creating distinctiveness that is difficult to copy.

A) Design
B) Style
C) Durability
D) Conformance
E) Reliability

Question 11

The five product levels constitute a ________.At each level more customer value is added.

A) product line
B) business model
C) customer value-hierarchy
D) value grid
E) demand chain

Question 12

Marketers have traditionally classified products on the basis of three characteristics: ________,tangibility,and use.

A) availability
B) affordability
C) aesthetics
D) durability
E) necessity

Question 13

What types of goods are purchased frequently,immediately,and with minimum effort by the consumers?

A) specialty goods
B) shopping goods
C) unsought goods
D) durable goods
E) convenience goods

Question 14

When companies search for new ways to satisfy customers and distinguish their offering from others,they look at the ________ product,which encompasses all the possible augmentations and transformations of the product.

A) consumption
B) expected
C) potential
D) augmented
E) basic

Question 15

________ is the ability of a company to prepare on a large-scale basis individually designed products,services,programs,and communications.

A) Mass customization
B) Reverse engineering
C) Interoperability
D) Backward compatibility
E) Benchmarking

Question 16

Buyers expect products to have high ________,which is the degree to which all the produced units are identical and meet the promised specifications.

A) durability
B) compatibility
C) conformance quality
D) form
E) performance quality

Question 17

Most products can be offered with varying ________ that can supplement its basic function.

A) degrees of reliability
B) conformance qualities
C) features
D) forms
E) designs

Question 18

Most products are established at one of four performance levels: low,average,high,or superior.For example,mountain bikes come in a variety of sizes and physical attributes.When a consumer purchases a mountain bike costing $1,000,she/he expects the bike to perform to specifications and to have high ________ meeting the promised specifications.

A) features
B) conformance quality
C) durability
D) performance quality
E) reliability

Question 19

________ is the level at which the product's primary characteristics operate.

A) Design
B) Conformance quality
C) Reparability
D) Performance quality
E) Durability

Question 20

A ________ is anything that can be offered to a market to satisfy a want or need,including physical goods,services,experiences,events,persons,places,properties,organizations,information,and ideas.

A) function
B) product
C) benefit
D) process
E) structure

Question 21

Differentiating on ________ is important for companies with complex products and becomes an especially good selling point when targeting technology novices.

A) delivery
B) ordering ease
C) ease of installation
D) customer consulting
E) reparability

Question 22

Delivery refers to how well the product or service is brought to the customer.It includes speed,________,and care throughout the delivery process.

A) expedience
B) intensity
C) tangibility
D) performance
E) accuracy

Question 23

What occurs when any company lengthens its product line beyond its current range?

A) market overreach
B) brand dilution
C) product adaptations
D) cannibalization
E) line stretching

Question 24

________ describes the service program for helping customers keep purchased products in good working order.

A) Returns
B) Ordering ease
C) Installation
D) Maintenance and repair
E) Delivery

Question 25

Moving ________ carries risks.The new brand can cannibalize core brand sales and lower the core brand's quality image.

A) up-market
B) two ways
C) one way
D) down-market
E) out-market

Question 26

________ is a measure of the probability that a product will not malfunction or fail within a specified time period.

A) Reparability
B) Durability
C) Reliability
D) Specialty
E) Compatibility

Question 27

A company positioned in the "middle" market introduces a lower-priced product line.What type of line-stretching is this?

A) home stretch
B) up-market stretch
C) down-market stretch
D) maintenance stretch
E) two-way stretch

Question 28

________ refers to educating the customer's employees to use the vendor's equipment properly and efficiently.

A) Customer training
B) Open innovation
C) Crowdsourcing
D) Co-development
E) Collaborative research

Question 29

The ________ of the product mix refers to how closely related the various product lines are in end use,production requirements,distribution channels,or some other way.

A) consistency
B) depth
C) width
D) length
E) composition

Question 30

Happy Home Products produces detergents,toothpaste,bar soap,disposable diapers,and paper products.This company has a product ________ of five lines.

A) type
B) length
C) class
D) mix
E) width

Question 31

A group of products within a product class that are closely related because they perform a similar function,are sold to the same customer groups,are marketed through the same outlets or channels,or fall within given price ranges is known as a ________.

A) product type
B) product class
C) need family
D) product variant
E) product line

Question 32

Realizing that although household products is a huge category,taking up an entire supermarket aisle or more,it is an incredibly boring one,the founders of Method Products designed a sleek,uncluttered dish soap container that also carried functional advantages,such as ease of dispensing soap and cleaning.Method is competing in the crowded market for household products on the basis of superior ________.

A) design
B) durability
C) conformance
D) reliability
E) performance quality

Question 33

The ________ of a product mix refers to how many variants are offered of each product in the line.

A) width
B) length
C) depth
D) consistency
E) height

Question 34

In increasingly fast-paced markets,price and technology are not enough.________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks,feels,and functions in terms of customer requirements.

A) Conformance
B) Design
C) Performance
D) Reliability
E) Style

Question 35

When the physical product cannot be easily differentiated,the key to competitive success may lie in adding valued services and improving their quality.The main service differentiators are ordering ease,delivery,installation,________,customer consulting,maintenance,and repair.

A) technology intensity
B) responsivity
C) ease of use
D) customer training
E) adaptability

Question 36

In offering a product line,companies normally develop a ________ and modules that can be added to meet different customer requirements.

A) convenience item
B) flagship product
C) staple item
D) potential product
E) basic platform

Question 37

Which of the following is a benefit of product mapping?

A) studying market matrices
B) integrating target markets
C) identifying market segments
D) educating consumers
E) integrating target matrices

Question 38

Smith & Adams Poultry has recently upgraded its transactional model such that its customers (restaurants and hotels)can communicate with its central supply system to indicate purchase volumes,dates,and receive confirmation,through their computer terminals.This is an example of a company differentiating itself versus competition in terms of ________.

A) customer relationships
B) customer training
C) installation
D) delivery ease
E) ordering ease

Question 39

A consumer products firm manufactures and sells over 200 different sizes and varieties of jams and jellies.We can say that this manufacturer's product mix has high ________.

A) consistency
B) depth
C) intensity
D) range
E) width

Question 40

The ________ of the product mix refers to the total number of items in the mix.

A) width
B) length
C) depth
D) breadth
E) range

Question 41

Marketers have traditionally classified products on the basis of characteristics such as durability,tangibility,and use.

Question 42

Many sellers offer either general or specific guarantees.Guarantees reduce the buyer's ________ risk.

A) actual
B) perceived
C) real
D) implied
E) stated

Question 43

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

A) Insurance
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets

Question 44

________ is a special case of co-branding involving creating brand equity for materials,components,or parts that are necessarily contained within other branded products.

A) Cross-branding
B) Ingredient branding
C) Equity branding
D) Family branding
E) Generic branding

Question 45

Some service firms often engage in ________,consisting of a fixed fee plus a variable usage fee.

A) pure bundling
B) pure pricing
C) mixed pricing
D) captive pricing
E) two-part pricing

Question 46

A product line can also be lengthened by adding more items within the present range.There are several motives for line filling.Which of the following is one of them?

A) responding to senior management wishes
B) responding to consumer wishes
C) reaching for incremental profits
D) reaching for incremental capacity
E) responding to sales-force demands

Question 47

Betty Crocker cake mixes using Hershey syrup in its cake mixes and "Lunchables" lunch combinations with Taco Bell tacos are examples of what special type of branding?

A) family branding
B) ingredient co-branding
C) co-branding
D) generic-branding
E) individual branding

Question 48

Guarantees are most effective in two situations.The first is when the company or products are not well known and the second is when the product's quality is ________ to competition.

A) not known
B) different
C) inferior
D) equivalent
E) superior

Question 49

In ________,the seller offers goods both individually and in bundles and often charges less for the "bundle" than for the individual products.

A) pirating pricing
B) captive pricing
C) two-part pricing
D) pure bundling
E) mixed bundling

Question 50

McDonald's restaurants inside Wal-Marts and Starbucks inside Super Targets are examples of ________,whose main advantages are that the products can or may be convincingly positioned by virtue of the associated brands.

A) cooperative marketing
B) cross-promotion
C) retail co-branding
D) ingredient branding
E) feature promotion

Question 51

Companies may wish to implement a(n)________ to achieve more growth,to realize higher margins,or simply to position themselves as full-line manufacturers.

A) up-market stretch
B) rebranding plan
C) outsourcing strategy
D) disintermediation policy
E) vertical integration strategy

Question 52

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 ________.

A) retailer package
B) design package
C) shipping package
D) consumer package
E) supplier package

Question 53

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future.The firm decides to enter the "low-price" segment with its new items.This is an example of a firm's ________ to reach a new market.

A) down-market stretch
B) up-market stretch
C) two-way stretch
D) marketing research
E) disintermediation

Question 54

Companies normally develop ________ rather than single products and require sellers to establish perceived quality differences between price steps within it.

A) product mix
B) captive products
C) product lines
D) optional products
E) average products

Question 55

A product is anything that can be offered to a market to satisfy a want or need.

Question 56

Capital items are long-lasting goods that facilitate developing or managing the finished products.

Question 57

Price-setting logic must be modified when the product is part of a product mix.In that case,the firm searches for a set of prices that ________ profits on the total mix.

A) are ineffective on total
B) have no effect on total
C) maximizes
D) minimizes
E) capitalize upon

Question 58

The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind.Consumer expectations about the level of involvement and commitment are likely to be high,so unsatisfactory performance could be very negative for the brands involved.

A) co-branding
B) cannibalization
C) vertical integration
D) disintermediation
E) brand stretching

Question 59

The customer-value hierarchy consists of the basic product,core benefit,expected product,augmented product,and the consumption system.

Question 60

Durable products normally require less personal selling and service and less seller guarantees than nondurable goods.

Question 61

Studying how consumers shop,how they use a particular product or service,and how they dispose of the product when consumed is important for marketers.This information forms the basis of product strategy.Define the consumption system and identify the two upcoming product strategies that are affected by this knowledge.

Question 62

Co-branding is when two or more well-known existing brands are combined into a joint product and/or marketed together in some fashion.

Question 63

You have been asked to prepare a product-line analysis for your company's stable of products.Why is it important for product-line mangers to do a product-line analysis?

Question 64

To be branded,physical products need not be differentiated.

Question 65

What are the situations in which guarantees are most effective?

Question 66

A product system is a group of diverse and unrelated items that does not function in a compatible manner and includes the product mix and product assortment.

Question 67

Pure bundling occurs when a firm offers goods both individually and in bundles.

Question 68

Explain the concept of line stretching and the three uses for it.

Question 69

Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

Question 70

In the rapidly changing market of today's world,product lines must be continuously updated or modernized.

Question 71

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

Question 72

Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing"?one price for the disposable products and another for the "hardware."

Question 73

Firms should design the highest performance level possible for their products.

Question 74

Explain the concepts of product-mix width,length,depth,and consistency.

Question 75

Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

Question 76

A pricing system in which there is a "fixed" fee and then a variable "usage" fee is called bundling.

Question 77

Companies in the "middle market" should never attempt to stretch their line in both directions.

Question 78

The four product-mix dimensions (length,width,depth,consistency)permit the company to expand its business.

Question 79

To avoid "feature fatigue," companies must be careful to prioritize those features that are included and find unobtrusive ways to provide information about how consumers can use and benefit from the feature.

Question 80

As a selling point,durability commands a particularly high pricing premium,especially for products that are subject to rapid technological obsolescence,as are personal computers and video cameras.