Chapter 10 Questions w:soln PDF

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Chapter 10 questions and solutions...

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Chapter 10—Product Decisions TRUE/FALSE 1. Sebastian got a haircut this afternoon. His haircut cannot be called a product, however, because it is a service, not a tangible good. ANS: F To many people, the term product means a tangible good. But services and ideas are also products. A product is everything, both favorable and unfavorable, that a person receives in an exchange. PTS: 1 REF: 357 Thinking KEY: CB&E Model Product

OBJ: 10-1

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

2. An elementary school teacher purchased a ream of art paper, a box of crayons, and some modeling clay. The teacher intends to use these products in her classroom, so they would be classified as business products. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Level III Application

REF: 358 OBJ: 10-2 KEY: CB&E Model Product

3. Convenience products, though inexpensive, still require considerable shopping effort by buyers. ANS: F Convenience products are relatively inexpensive items that merit little shopping effort. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

4. Because there is not much difference between different brands of milk, milk would be classified as a homogeneous product. ANS: T PTS: 1 REF: 359 OBJ: 10-2 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level II Comprehension 5. Inez believes makeup is the most important part of her wardrobe. She spends considerable time comparing the prices, skin tones, and color options available at various cosmetics counters in department stores. For Inez, makeup is a convenience product. ANS: F For Inez, makeup is a shopping product. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

6. Rolex watches are very expensive, can only be purchased in high-end jewelry stores located in large metropolitan areas, and most buyers will accept no substitutes. Rolex watches are an example of a shopping product. ANS: F This is an example of a specialty product. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

7. A product unknown to the potential buyers or a known-product that the buyers does not actively seek is referred to as an undesirable product. ANS: F This is an unsought product. PTS: 1 REF: 360 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level I Knowledge

8. Coca-Cola is one of the world’s largest manufacturers of beverages. It makes over 2,800 different beverage products, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks, and energy drinks. The great variety of beverages made by Coca-Cola represents its product mix. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Level III Application

REF: 360 OBJ: 10-3 KEY: CB&E Model Product

9. Product modification occurs when changes are made in how the product functions, its quality, or some aesthetic characteristic of the product. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Level I Knowledge

REF: 362 OBJ: 10-3 KEY: CB&E Model Product

10. Procter & Gamble’s Olay line of skin products is very popular and profitable. P&G has launched an Olay body wash that is supposed to fight wrinkles. This is an example of a repositioning. ANS: F This would be an example of a product line extension. Repositioning involves changing consumers' perceptions of a brand. PTS: 1 REF: 362 Thinking KEY: CB&E Model Product 11.

OBJ: 10-3

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

The best generator of repeat sales is satisfied customers.

ANS: T PTS: 1 TOP: AACSB Reflective Thinking

REF: 364 OBJ: 10-4 KEY: CB&E Model Customer

MSC: BLOOMS Level II Comprehension 12. Isaac Golding, owner of a tutoring service, has developed a design for his firm that includes an owl wearing large spectacles and carrying a satchel crammed full of books and papers. He plans to use this design on all communications the firm sends out. This design is called the firm's brand name. ANS: F Such a design would be called the firm's brand mark, which is the elements of a brand that cannot be spoken. PTS: 1 REF: 364 Thinking KEY: CB&E Model Product 13. product sales.

OBJ: 10-4

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

Branding has three main purposes: product identification, repeat sales, and new-

ANS: T PTS: 1 REF: 364 OBJ: 10-4 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level II Comprehension 14. Devore loves southern-style cooking and always buys Glory Foods brand of collard greens, blackeyed peas, and hot sauces. In fact, she refuses to purchase any other brand because Glory Foods products taste just like her grandmother’s cooking. Devore is showing intense brand loyalty. ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Level III Application 15.

REF: 364 OBJ: 10-4 KEY: CB&E Model Customer

Kellogg’s, Hanes, and General Electric are examples of a manufacturer’s brand.

ANS: T PTS: 1 TOP: AACSB Reflective Thinking MSC: BLOOMS Level III Application

REF: 365 OBJ: 10-4 KEY: CB&E Model Product

16. Retailers love national brands because overhead is low and there are no marketing costs, and they bring higher margins than private brands. ANS: F Private brands, not national brands, bring these benefits to retailers. PTS: 1 REF: 365 Thinking KEY: CB&E Model Product

OBJ: 10-4

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

17. When the manufacturer of French's classic yellow mustard introduced French's Dijon mustard, French's Honey mustard, and French's Sweet Onion mustard, it was an example of cobranding. ANS: F It's an example of family branding. Cobranding is placing two or more brand names on a product

or its package. PTS: 1 REF: 366 Thinking KEY: CB&E Model Product 18.

OBJ: 10-4

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

Trademark protection only lasts for five years.

ANS: F Trademark protection lasts as long as the mark is being used. PTS: 1 REF: 368 Thinking KEY: CB&E Model Product

OBJ: 10-4

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

19. The most important functions of packaging are to contain and protect products, promote products, facilitate product storage, and facilitate recycling. ANS: T PTS: 1 REF: 369 OBJ: 10-5 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level II Comprehension 20.

The nutrition label on a package is an example of persuasive labeling.

ANS: F This is better described as informational labeling. PTS: 1 REF: 370 Thinking KEY: CB&E Model Product

OBJ: 10-5

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

21. Due to the time required to scan them, universal product codes (UPCs) are typically placed on merchandise that would be classified as shopping products. ANS: F UPCs appear on most items in supermarkets and other high-volume outlets. Bar codes also appear on shopping products such as clothing, appliances, high-end wines, etc. The UPC is essential in supply chain management for a wide variety of products, not just shopping products. PTS: 1 REF: 372 Thinking KEY: CB&E Model Product

OBJ: 10-5

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

22. A company that wants to market its product globally has only two branding strategies available: either use the brand name everywhere or develop a new brand name for each different market. ANS: F There is a third possible branding strategy—adapt and modify. PTS: 1 REF: 372 OBJ: 10-6 Thinking KEY: CB&E Model Product | CB&E Model Strategy

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension 23. in another.

Cultural traits can make a package design successful in one country and a failure

ANS: T PTS: 1 REF: 373 OBJ: 10-6 TOP: AACSB Reflective Thinking KEY: CB&E Model Product | CB&E Model Strategy MSC: BLOOMS Level II Comprehension 24.

A warranty does not confirm the quality or performance of a good or service.

ANS: F A warranty is a confirmation of the quality or performance of a good or service. PTS: 1 REF: 373 Thinking KEY: CB&E Model Product 25.

OBJ: 10-7

TOP: AACSB Reflective

MSC: BLOOMS Level I Knowledge

All sales have an implied warranty under the Uniform Commercial Code.

ANS: T PTS: 1 REF: 374 OBJ: 10-7 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level II Comprehension MULTIPLE CHOICE 1. A _____ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be tangible, intangible, a service, an idea, or a combination of these things. a. brand equity b. quality c. warranty d. transaction e. product ANS: E This is the definition of a product. PTS: 1 REF: 357 Thinking KEY: CB&E Model Product 2. a. b. c. d. e.

OBJ: 10-1

TOP: AACSB Reflective

MSC: BLOOMS Level I Knowledge

The _____ is the starting point in creating a marketing mix. price product distribution channel promotional media production line

ANS: B The product must be specified before other marketing mix variables can be planned.

PTS: 1 REF: 357 Thinking KEY: CB&E Model Product 3. a. b. c.

d. e.

OBJ: 10-1

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

Why is creation of a product the starting point for the marketing mix? The production department must know what to produce first. Production strategy is the first of the four Ps listed in the marketing mix. Determination of the price, promotional campaign, and distribution network cannot begin until the product has been specified. Product development takes the longest amount of time to complete. Actually, the product does not have to be the starting point--promotional strategies are often the starting point.

ANS: C The product is the first decision around which the others are based. PTS: 1 REF: 357 OBJ: 10-1 Thinking KEY: CB&E Model Product | CB&E Model Strategy MSC: BLOOMS Level IV Analysis 4. a. b. c. d. e.

TOP: AACSB Reflective

All of the following are examples of products EXCEPT: carton of milk contact lenses haircut pair of shoes All of the above are products.

ANS: E A product may be a tangible good, a service, an idea, or any combination of these three. PTS: 1 REF: 357 OBJ: 10-1 Thinking KEY: CB&E Model Product | CB&E Model Strategy MSC: BLOOMS Level IV Analysis 5. a. b. c. d. e.

TOP: AACSB Reflective

Which of the following is NOT an example of a product's tangible feature? Brand equity Packaging Color Weight Size

ANS: A Brand equity is the value of company and brand names. PTS: 1 Thinking

REF: 357 | 364

OBJ: 10-1

TOP: AACSB Reflective

KEY: CB&E Model Product 6. products. a. b. c. d. e.

MSC: BLOOMS Level IV Analysis

When a greenhouse plant grower sells plants to nursery retailers, is selling _____ specialty consumer convenience business unsought

ANS: D Retailers resell the plants, so they are considered a business product. PTS: 1 REF: 358 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

7. Rock-Tenn produces cardboard cartons to be used by companies in the food industry. Rock-Tenn is selling _____ products. a. specialty b. consumer c. business d. convenience e. unsought ANS: C Business products are purchased for (1) use in the production of other goods or services, (2) use in an organization's operations, or (3) resale to other customers. PTS: 1 REF: 358 Thinking KEY: CB&E Model Product 8. a. b. c. d. e.

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

The consumer product classification system is based on: how the market is segmented the way the products are manufactured the way products are used the physical attributes of the product the amount of effort consumers spend to acquire the product

ANS: E Products are classified by the amount of effort that is normally expended in the acquisition process. PTS: 1 REF: 358 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

9. There are so many cell phones on the market, and they vary so much on price, quality, service, and features that consumers often have trouble comparing them. A cell phone would probably be considered a _____ product. a. convenience

b. c. d. e.

specialty heterogeneous shopping homogeneous shopping generic

ANS: C Heterogeneous shopping products are essentially different, and consumers often have trouble comparing them. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

10. _____ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution. a. Convenience b. Specialty c. Branded shopping d. Unbranded shopping e. Generic ANS: A This is the definition of convenience products. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product 11. a. b. c. d. e.

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level I Knowledge

The convenience product marketing strategy includes: wide distribution of the product higher than ordinary prices few retail outlets other than convenience stores significantly lower promotion budgets products that are not easily substitutable

ANS: A To sell large amounts of products that consumers are unwilling to search for, there must be a large number of retail outlets. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

12. Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out she noticed that People Magazine had an interesting cover story about Scarlett Johansson. As Amy is a huge fan Scarlett, she had to buy a copy. In this example, the People Magazine is an example of a(n) _____ product. a. specialty b. convenience c. business d. shopping e. unsought

ANS: B Convenience products are usually relatively inexpensive items that receive little shopping effort, such as an item bought on an impulse off a grocery-store check-out lane shelf. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product 13.

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

Compared to the other classifications of consumer products, shopping products

are: a.

widely available so they need little or no promotion usually less expensive than convenience products purchased without significant planning usually more expensive than convenience products and are found in fewer stores purchased immediately after the consumer realizes he or she needs them

b. c. d. e.

ANS: D Shopping products are typically items such as clothing, automobiles, and major appliances. Consumers usually compare items across brands or stores. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

14. Kathy is driving Chaz, her young son, home from soccer practice when Chaz say, “Mom, I’m thirsty.” Kathy immediately pulls the SUV into the nearest gas station and buys Chaz a Coke. For Kathy, the Coke is best described as an example of buying a _____ product. a. homogeneous shopping b. heterogeneous shopping c. convenience d. specialty e. component ANS: C She spent very little shopping effort in buying the Coke. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product 15. a. b. c. d. e. ANS: B

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

Which of the following is the best example of a convenience product? Concert tickets Chewing gum Jeans Chemical for the swimming pool A birthday present

Chewing gum is a relatively inexpensive purchase and requires very little, if any, comparison shopping. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level IV Analysis

16. Which type of consumer product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores? a. An unsought product b. A secondary product c. A unique product d. A shopping product e. A selective product ANS: D This is the definition of a shopping product. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level I Knowledge

17. Harrison wanted a gas water heater. He watched newspaper ads until he found one on sale. For Harrison the water heater is a(n) _____ product. a. shopping b. convenience c. component d. unsought e. specialty ANS: A Harrison is comparing ads looking for a low price. This is shopping product behavior. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product 18. a. b. c. d. e.

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

The two types of shopping products are: unsought and convenience generic and family exclusive and intensive heterogeneous and homogeneous consumer and business

ANS: D Consumer perceive homogeneous shopping products as basically similar, but they perceive heterogeneous shopping products as essentially different. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product 19.

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level II Comprehension

Which of the following is the best example of a shopping product for most

consumers? a. b. c. d. e.

Washing detergent Crackers Soft drink Digital camera Magazine

ANS: D Shopping products are typically more expensive than convenience products and are found in fewer shops PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level III Application

20. _____ are products consumers see as being basically the same, so consumers shop for the lowest price. a. Low-prestige specialty products b. Product equivalents c. Heterogeneous shopping products d. Generic convenience products e. Homogeneous shopping products ANS: E With homogeneous shopping products, consumers typically look for the lowest-priced brand that has the desired features. PTS: 1 REF: 359 Thinking KEY: CB&E Model Product

OBJ: 10-2

TOP: AACSB Reflective

MSC: BLOOMS Level I Knowledge

21. Andrea needs to find a kennel for boarding her son’s dogs. There are several different kennels in her community, and Andrea believes all of them to be basically alike. The only feature she is genuinely concerned about is low price. For Andrea, the kennel for boarding dogs would be classified as a(n) _____ product. a. specialt...