Question 1

Jenny traded in her old car for her heart's desire,a new Lexus sedan.The Lexus is considered a specialty product.

Accepted Answer

A specialty product is a unique or highly differentiated product that targets a specific group of consumers, typically with higher prices and limited distribution. The Lexus sedan fits this description as it is a luxury car brand and not widely available or affordable for everyone.

Question 2

Private-label brands are imitations often sold by street vendors.

Accepted Answer

Private-label brands are actually products manufactured by one company and sold under another company's brand name. They are not necessarily imitation products and are often sold in supermarkets or retail chains, rather than by street vendors.

Question 3

Harold is a loyal Coca-Cola customer.Loyal customers like Harold require lower marketing expenditures,benefiting businesses like Coca-Cola.

Accepted Answer

Loyal customers like Harold do not require heavy marketing efforts as they are already loyal to the brand, which benefits Coca-Cola by reducing their marketing expenditures.

Question 4

Brand equity is calculated by subtracting sales of generic brands from the sales of branded items in a category.

Accepted Answer

Brand equity is a measure of the value of a brand, taking into account various factors such as consumer perception, brand recognition, and brand loyalty. It is not calculated by subtracting sales of generic brands from the sales of branded items. There are various methods used to measure brand equity, such as brand valuation, customer-based brand equity, or financial performance measures.

Question 5

Nike sells shoes,clothing,and athletic gear.These represent the breadth of Nike's products.

Accepted Answer

Nike does indeed sell shoes, clothing, and athletic gear, which represents the breadth of its products.

Question 6

For a company like PepsiCo,brand dilution occurs when it sells more product than the competition.

Accepted Answer

Brand dilution occurs when a company's brand loses its uniqueness and value due to excessive expansion into different product categories or when its products become too similar to the competition. It has nothing to do with selling more products than the competition.

Question 7

When purchasing a mobile phone,the product you are buying is more than just the phone.

Accepted Answer

When purchasing a mobile phone, you are also buying the accompanying accessories, software, and services offered by the manufacturer and network provider. Additionally, the brand, design, and features of the phone contribute to the overall value of the product.

Question 8

Kellogg's sells many different breakfast cereals,including Corn Flakes,Rice Krispies,Frosted Flakes,Raisin Bran,and Special K.This is an example of the breadth of the Kellogg's product mix.

Accepted Answer

The answer of Kellogg's sells many different breakfast cereals,including Corn...

Question 9

A customized carved cedar wood sign for your house is an example of a convenience product.

Accepted Answer

A customized carved cedar wood sign is considered a specialty product because it is unique and customers are willing to make a special effort to purchase it. Convenience products are items that consumers purchase frequently and with minimal effort, like groceries or household items.

Question 10

A product label is just a required sticker on a package.

Accepted Answer

A product label serves multiple purposes beyond being a required sticker on a package. It provides important information about the product, such as the ingredients, nutritional information, and potential allergens. It also serves as a marketing tool, with branding and design elements that help to differentiate the product from others on the shelf.

Question 11

For the average college student,a retirement account would be a shopping product.

Accepted Answer

A retirement account is an investment product, not a shopping product. It is intended for long-term savings and is not something that can be purchased and consumed like a physical item.

Question 12

Brands enable customers to quickly differentiate one firm or product from another.

Accepted Answer

Brands are designed to create a unique identity and image for a company or product that sets it apart from competitors, making it easier for customers to differentiate between options available in the market.

Question 13

When Jaclyn selects a case of Sprite at the grocery store for her party,she is attracted by the holiday-themed box featuring green and white bells.What Jaclyn is seeing is referred to as the secondary package.

Accepted Answer

The secondary package is the outer packaging or wrapping that contains the primary package (in this case, the individual Sprite bottles). The holiday-themed box in which the case of Sprite is packaged is an example of a secondary package.

Question 14

If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its gaming systems),this would be an example of a line extension.

Accepted Answer

This would be an example of brand extension, as it involves taking an existing brand name (Xbox) and applying it to a new product category (mobile phones) outside of its current gaming systems category.

Question 15

A product is anything that is of value to a consumer and can be offered through a voluntary exchange.

Accepted Answer

A product is defined as something that has value to a consumer and can be exchanged voluntarily. This includes physical goods, services, and even ideas.

Question 16

The more familiar customers are with a brand,the harder their decision-making process will be.

Accepted Answer

The more familiar customers are with a brand, the easier their decision-making process will be because they already have a level of trust and familiarity with the brand.

Question 17

Sales of private-label brands continue to decline in the United States,particularly in big-box stores such as Costco.

Accepted Answer

This statement is incorrect. Sales of private-label brands in the United States have actually been increasing in recent years, with growth outpacing that of national brands. According to Nielsen data, private-label sales grew 4.4% in 2019, while national brand sales only grew 1.1%. Additionally, big-box retailers such as Costco have been successful in selling their own private-label brands, which account for a significant portion of their sales.

Question 18

In entertainment licensing,the major risk to licensees is that the brand will become overexposed.

Accepted Answer

The answer of In entertainment licensing,the major risk to licensees...

Question 19

A company's product line consists of its various product mixes.

Accepted Answer

A company's product line refers to a group of related products under a single brand sold by the same company, while product mix (or product assortment) refers to the total variety of products that the company offers.

Question 20

Effective packaging and labels send consumers the signal "Buy me."

Accepted Answer

Effective packaging and labels are designed to catch the consumer's attention and persuade them to purchase the product. Therefore, they send a clear message of "Buy me."

Quiz 11: Product, Branding, and Packaging Decisions