Question 1

Which type of retailer has the widest product mix?
A) Department store
B) Specialty store
C) Variety store
D) Supermarket

Accepted Answer

Department stores typically offer a wide range of product categories, making their product mix broader than specialty stores, variety stores, and supermarkets, which focus on more specific product lines or categories.

Question 2

A market analyst described a firm as having a poor organizational mission statement that has resulted in the firm's having a "cluttered plate" and a "blurry image." What type of product mix does the firm have?
A) Inconsistent
B) Consistent
C) Wide
D) Shallow

Accepted Answer

An inconsistent product mix means the firm offers products that do not align well with each other or the firm's mission, leading to a "cluttered plate" and "blurry image."

Question 3

The simplest product management organization is the
A) marketing manager system.
B) product planning committee.
C) venture team.
D) brand manager system.

Accepted Answer

The marketing manager system is the simplest product management organization because it is a one-person operation. The marketing manager is responsible for all aspects of product management, from product planning and development to marketing and sales. This system is often used in small companies or for products that are not complex.

Question 4

A firm facing clustered demand produces two lines of watches. The most appropriate product management organization for the firm is a
A) marketing manager system.
B) product planning committee.
C) product (brand) manager system.
D) venture team.

Accepted Answer

A product (brand) manager system is most appropriate for a firm with clustered demand producing multiple lines of products, like watches, because it allows for focused management on each product line, ensuring tailored strategies that cater to the specific needs and demands of each product category.

Question 5

A major criticism of the product (brand) manager system is
A) lack of authority for the product manager.
B) the irregular nature of meetings.
C) inter-functional rivalry within the organization.
D) the disbanding of the manager after a product is introduced.

Accepted Answer

Product managers often lack the authority to make significant decisions, leading to challenges in effectively managing the product.

Question 6

Which of the following product management organizations assure input from representatives of different functional areas within the firm?
A) Product planning committee and venture team
B) Marketing manager system and new-product manager system
C) Marketing manager system and venture team
D) Product planning committee and product (brand) manager system

Accepted Answer

Product planning committees and venture teams both assure input from representatives of different functional areas within a firm, as they are designed to bring together diverse perspectives to guide product development and management.

Question 7

A major advantage of the use of a venture team in a very large firm is the team's
A) autonomous structure.
B) lack of duplication with the overall firm.
C) low-cost structure.
D) ability to meet irregularly, on an as needed basis.

Accepted Answer

A venture team in a very large firm benefits from an autonomous structure, allowing it to operate independently and make decisions quickly without the need for constant approval from higher management. This autonomy is crucial for innovation and rapid development within large organizations.

Question 8

Among the brands of Ford Motor Company are Jaguar, Volvo, Lincoln, Ford, and Mercury. Jaguar is viewed by many as a fine, imported sports car. Volvo is seen as a brand especially concerned with safety, Lincoln as a luxury family car, Ford as a traditional family car, and Mercury as a more sporty family car. This illustrates
A) ideal point analysis.
B) the semantic differential.
C) company product positioning.
D) competitive product positioning.

Accepted Answer

This illustrates company product positioning, as it describes how Ford Motor Company positions its various brands (Jaguar, Volvo, Lincoln, Ford, and Mercury) in the market to appeal to different segments of consumers based on perceived brand characteristics and values.

Question 9

If a firm's brands are viewed as interchangeable by consumers, they will appear ___ on a company product positioning chart.
A) on opposite sides
B) in the same cluster
C) in separate clusters
D) near competitors' products

Accepted Answer

If a firm's brands are viewed as interchangeable by consumers, they will appear in the same cluster on a company product positioning chart because they are perceived to offer similar value and characteristics.

Question 10

If a firm has a blurred image among its two brand designations, these brands will appear ___ on a company product positioning chart.
A) on opposite sides
B) in overlapped clusters
C) in separate clusters
D) near competitors' products

Accepted Answer

When a firm has a blurred image among its two brand designations, it means the distinctions between these brands are not clear to consumers. As a result, on a company product positioning chart, these brands will appear in overlapped clusters because their market positions are not distinctly separated.

Question 11

The concept of brand equity in marketing is similar to which accounting concept?
A) Amortization
B) Book value
C) Leveraging equity
D) Good will

Accepted Answer

Brand equity in marketing, which refers to the value a brand adds to a product or service, is similar to the concept of goodwill in accounting. Goodwill represents the intangible value of a company, such as brand reputation and customer loyalty, that arises when a business is acquired for more than the fair value of its net assets.

Question 12

A firm can leverage its brand equity through use of which of these strategies?
A) Brand extension
B) Individual branding
C) Brand decision process
D) Use of generic brands

Accepted Answer

Brand extension leverages a firm's existing brand equity by using an established brand name for new products, thereby transferring the goodwill and recognition of the original brand to new products in different categories or markets.

Question 13

The broadest concept in branding is a firm's
A) trade characters.
B) corporate symbols.
C) trademarks.
D) brand marks.

Accepted Answer

Corporate symbols represent the broadest concept in branding as they encompass the overall identity and image of a company, reflecting its values, culture, and reputation in the market.

Question 14

In comparison with dealer brands, manufacturer brands
A) attract loyalty to the manufacturer.
B) provide retailers with higher profit margins.
C) are available in fewer outlets.
D) account for a small percentage of supermarket sales.

Accepted Answer

Manufacturer brands often attract loyalty to the manufacturer because consumers trust the quality and consistency of products produced by known companies.

Question 15

In comparison with manufacturer brands, dealer brands allow retailers to
A) utilize vendor promotional materials.
B) utilize cooperative advertising programs.
C) decrease consumer perceived risk.
D) establish store loyalty.

Accepted Answer

Dealer brands, also known as private labels or store brands, allow retailers to create unique products that are only available in their stores, which can help establish store loyalty among consumers.

Question 16

A wholesaler or retailer has the greatest degree of channel control with which type of branding philosophy?
A) Manufacturer
B) Generic
C) Multiple
D) Private

Accepted Answer

Private branding allows a wholesaler or retailer to have the greatest degree of channel control because they own the brand, giving them the ability to dictate all aspects of its marketing and distribution.

Question 17

The battle of the brands occurs within a major retailer's stores. The retailer is using which of the following branding strategies?
A) Brand extension
B) Mixed-brand strategy
C) Family branding
D) Multiple branding

Accepted Answer

A mixed-brand strategy allows a retailer to offer products from competing brands within the same store, leading to a "battle of the brands" scenario where different brands compete for consumer attention and sales within the same retail environment.

Question 18

A drug chain increases the retail selling price of a manufacturer's brand of shaving cream to show a better price comparison with its own private brand. This practice illustrates
A) the battle of the brands.
B) differentiated marketing.
C) individual branding.
D) multiple branding.

Accepted Answer

This practice is an example of "the battle of the brands," where a retailer manipulates pricing to make its own brand appear more attractive in price comparison to a manufacturer's brand.

Question 19

Which pair of branding strategies is most similar?
A) Dealer branding and manufacturer branding
B) The battle of the brands and generic branding
C) Family branding and brand extension
D) Mixed branding and individual branding

Accepted Answer

Family branding and brand extension both involve leveraging an existing brand's reputation to market new products. Family branding uses the same brand name across a range of products, while brand extension uses the brand's reputation to move into new markets or product categories.

Question 20

Compared with multiple branding, an advantage of family branding to a manufacturer is that
A) separate brands are sold to different market segments.
B) retail shelf space can be maximized.
C) a firm's promotional costs can be lowered.
D) differentiated marketing opportunities exist.

Accepted Answer

Family branding allows a company to market multiple products under the same brand name, which can significantly reduce promotional and advertising costs since the brand equity and recognition are leveraged across various products.

Quiz 11: Basic Concepts in Product Planning

Which type of retailer has the widest product mix?

A market analyst described a firm as having a poor organizational mission statement that has resulted in the firm's having a "cluttered plate" and a "blurry image." What type of product mix does the firm have?

The simplest product management organization is the

A firm facing clustered demand produces two lines of watches. The most appropriate product management organization for the firm is a

A major criticism of the product (brand) manager system is

Which of the following product management organizations assure input from representatives of different functional areas within the firm?

A major advantage of the use of a venture team in a very large firm is the team's

If a firm's brands are viewed as interchangeable by consumers, they will appear ___ on a company product positioning chart.

If a firm has a blurred image among its two brand designations, these brands will appear ___ on a company product positioning chart.

The concept of brand equity in marketing is similar to which accounting concept?

A firm can leverage its brand equity through use of which of these strategies?

The broadest concept in branding is a firm's

In comparison with dealer brands, manufacturer brands

In comparison with manufacturer brands, dealer brands allow retailers to

A wholesaler or retailer has the greatest degree of channel control with which type of branding philosophy?

The battle of the brands occurs within a major retailer's stores. The retailer is using which of the following branding strategies?

A drug chain increases the retail selling price of a manufacturer's brand of shaving cream to show a better price comparison with its own private brand. This practice illustrates

Which pair of branding strategies is most similar?

Compared with multiple branding, an advantage of family branding to a manufacturer is that