Marketing - Chapter 7 - Practice PDF

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Marketing: An Introduction, 11e (Armstrong) Chapter 7 Product, Services, and Brands: Building Customer Value 1) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible. A) Co-brands B) Line extensions C) Services D) Pure products E) Horizontal extensions Answer: C 2) Which of the following is a pure tangible good? A) shampoo B) a spa treatment C) financial advice D) a meal at a restaurant E) a medical check-up Answer: A 3) Which of the following would be considered part of the augmented product rather than the actual product or core customer value? A) product quality B) warranty C) brand name D) design E) packaging Answer: B 4) Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make it easier to apply to the skin. Which of the following is the core product value for Silkskin's line of eye makeup? A) the natural ingredients B) the Silkskin brand C) the products' revolutionary packaging D) the hypoallergenic properties of the products E) the possibility of having beautiful eyes Answer: E

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5) Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make it easier to apply to the skin. Which of the following would be considered the augmented product for Silkskin's line of eye makeup? A) the natural ingredients B) after-sales beauty advice offered by Silkskin C) the products revolutionary packaging D) the hypoallergenic properties of the products E) the Silkskin brand Answer: B 6) Which of the following types of products is likely to the priced the lowest? A) shopping products B) convenience products C) specialty products D) industrial products E) capital products Answer: B 7) ________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. A) Shopping B) Specialty C) Transitory D) Convenience E) Unsought Answer: D 8) A laundry detergent is most likely to be an example of a(n) ________ product. A) unsought B) shopping C) convenience D) specialty E) industrial Answer: C 9) Which of the following statements is most likely to be true of convenience product? A) A convenience product is distributed exclusively in only one or a few outlets per market area. B) A convenience product is a product about which a consumer knows but does not normally consider buying it. C) A Lamborghini automobile is an example of a convenience product. D) A convenience product usually has a higher price than a specialty product. E) It is bought by consumers with minimal comparison and buying effort. Answer: E

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10) Which of the following is most likely to be an example of a convenience product? A) candy B) furniture C) life insurance D) car E) refrigerator Answer: A 11) ________ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. A) Convenience B) Transitory C) Unsought D) Shopping E) Secondary Answer: D 12) A refrigerator is most likely to be an example of a(n) ________ product. A) convenience B) shopping C) unsought D) specialty E) impulse Answer: B

13) Which of the following statements is most likely to be true regarding a shopping product? A) It tends to have a lower price than a convenience product. B) A toothpaste is an example of a shopping product. C) As compared to convenience products, shopping products are purchased less frequently. D) Consumers buy shopping products with minimal comparison and buying effort. E) A life insurance policy is an example of a shopping product. Answer: C 14) Which of the following is most likely to be an example of a shopping product? A) toothpaste B) life insurance C) laundry detergent D) television E) candy Answer: D

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15) ________ products are distributed exclusively in only one or a few outlets per market area and they have unique characteristics or brand identification. A) Unsought B) Tertiary C) Transactional D) Convenience E) Specialty Answer: E 16) Which of the following statements is true of specialty products? A) Specialty products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. B) Typically, specialty products are more frequently purchased than convenience products. C) Specialty products generally have lower prices than convenience products. D) Buyers normally do not compare specialty products. E) A life insurance policy is an example of a specialty product. Answer: D 17) ________ products are consumer products that the consumer either does not know about or knows about but does not normally consider buying. A) Convenience B) Unsought C) Transactional D) Shopping E) Peripheral Answer: B 18) Which of the following is an example of an unsought product? A) furniture B) laundry detergent C) refrigerator D) toothpaste E) life insurance Answer: E 19) Which of the following statements is true of unsought products? A) Unsought products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. B) A life insurance policy is an example of an unsought product. C) Unsought products have strong brand identification for which a significant group of buyers is willing to make a special purchase effort. D) As compared to convenience products, unsought products are purchased more frequently. E) Unsought products are those products purchased for further processing or for use in conducting a business. Answer: B

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20) ________ products are those products that are purchased for further processing or for use in conducting a business. A) Unsought B) Specialty C) Shopping D) Industrial E) Convenience Answer: D 21) Which of the following is an industrial product that falls under the category of materials and parts? A) factory B) cement C) generator D) lubricant E) coal Answer: B 22) Which of the following is an industrial product in the category of capital items? A) factory B) cement C) crude petroleum D) coal E) paint Answer: A 23) Which of the following is an industrial product in the category of supplies and services? A) coal B) computer C) fax machine D) elevator E) generator Answer: A 24) Iron ore is an example of an industrial product that is most likely to come in the category of ________. A) capital items B) augmented products C) supplies D) materials and parts E) shopping products Answer: D

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25) The paint used to paint an office is an example of an industrial product that is most likely to fall in the category of ________. A) materials and parts B) augmented products C) capital items D) shopping products E) supplies and services Answer: E 26) Which of the following is true of convenience products? A) Convenience products are distributed extensively, in as many locations as possible. B) Convenience products are primarily sold through personal selling and direct marketing rather than advertising. C) Convenience products are generally more expensive than shopping or specialty products. D) Convenience products follow the exclusive distribution format. E) Convenience products include appliances such as computers or washing machines. Answer: A 27) IBM's Smarter Planet campaign markets IBM as a company that provides innovative solutions that improve the world's IQ. This is an example of ________ marketing. A) segmented B) vertical C) organization D) horizontal E) diversified Answer: C 28) The use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of their community is called ________ marketing. A) advocacy B) associative C) organizational D) social E) integrative Answer: D 29) A(n) ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. A) prototype B) paradigm C) framework D) attribute E) brand Answer: E

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30) Which of the following terms best describes the process of designing and producing the container or wrapper for a product? A) labeling B) branding C) licensing D) packaging E) schematizing Answer: D 31) Which of the following terms best describes a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges? A) product umbrella B) product assemblage C) product line D) product congregation E) product cluster Answer: C 32) A product line is considered to be too short if the manager can ________. A) increase profits by dropping items B) decrease costs by adding items C) increase market share by dropping items D) decrease costs by dropping items E) increase profits by adding items Answer: E 33) A product line is considered to be too long if the manager can ________. A) decrease costs by adding items B) increase market share by dropping items C) increase profits by dropping items D) decrease costs by dropping items E) increase profits by adding items Answer: C 34) Product line ________ involves adding more items within the present range of the line. A) stretching B) widening C) strengthening D) mixing E) filling Answer: E

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35) A company lengthening its product line by adding low-end products is an example of product line ________. A) filling B) strengthening C) mixing D) stretching E) widening Answer: D 36) A product mix is also known as a product ________. A) umbrella B) portfolio C) aggregation D) cluster E) assemblage Answer: B 37) Product mix length refers to ________. A) the number of versions offered for each product in the line B) how closely related the various product lines are in end use, production requirements, distribution channels, or some other way C) the number of different product lines the company carries D) the total number of items a company carries within its product lines E) the total market share captured by the entire product line Answer: D 38) Product mix width refers to ________. A) the number of versions offered for each product in the line B) how closely related the various product lines are in end use, production requirements, distribution channels, or some other way C) the number of different product lines the company carries D) the total number of items a company carries within its product lines E) the total market share captured by the entire product line Answer: C 39) Product mix depth refers to ________. A) the number of versions offered for each product in the line B) how closely related the various product lines are in end use, production requirements, distribution channels, or some other way C) the number of different product lines the company carries D) the total number of items a company carries within its product lines E) the total market share captured by the entire product line Answer: A

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40) The consistency of the product mix refers to ________. A) the number of versions offered for each product in the line B) how closely related the various product lines are in end use, production requirements, distribution channels, or some other way C) the number of different product lines the company carries D) the total number of items a company carries within its product lines E) the total market share captured by the entire product line Answer: B 41) Service intangibility means that ________. A) services cannot be separated from their providers, whether the providers are people or machines B) the quality of services depends on who provides them as well as when, where, and how they are provided C) services cannot be stored for later sale or use D) services cannot be seen, tasted, felt, heard, or smelled before they are bought E) evaluation of services is subjective and it changes from customer to customer Answer: D 42) Service inseparability means that ________. A) evaluation of services is subjective and it changes from customer to customer B) the quality of services depends on who provides them as well as when, where, and how they are provided C) services cannot be stored for later sale or use D) services cannot be seen, tasted, felt, heard, or smelled before they are bought E) services cannot be separated from their providers, whether the providers are people or machines Answer: E 43) Service variability means that ________. A) evaluation of services is subjective and it changes from customer to customer B) the quality of services depends on who provides them as well as when, where, and how they are provided C) services cannot be stored for later sale or use D) services cannot be seen, tasted, felt, heard, or smelled before they are bought E) services cannot be separated from their providers, whether the providers are people or machines Answer: B

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44) Service perishability means that ________. A) evaluation of services is subjective and it changes from customer to customer B) the quality of services depends on who provides them as well as when, where, and how they are provided C) services cannot be stored for later sale or use D) services cannot be seen, tasted, felt, heard, or smelled before they are bought E) services cannot be separated from their providers, whether the providers are people or machines Answer: C 45) The service profit chain consists of five links. Which of the following is one of these five links? A) increased service inseparability B) decreased cost C) broader service mix D) increased service variability E) satisfied and loyal customers Answer: E 46) Orienting and motivating customer-contact employees and service-support people to work as a team to provide customer satisfaction is known as ________ marketing. A) social B) organizational C) differentiated D) internal E) horizontal Answer: D 47) Training service employees in the fine art of communicating with customers to satisfy their needs is known as ________ marketing. A) horizontal B) interactive C) advocacy D) social E) internal Answer: B 48) Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. A) capital B) stake C) wealth D) credit E) equity Answer: E

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49) Which of the following brands is positioned based on product attributes? A) Trowbridge Homestays: Where you feel at home B) Berglee's Breakfast Cereals: Blending nutrition and great taste C) DMX Bikes: All performance, all the time D) McAdams Financial Services: Accuracy and Integrity E) Reed Watches: When it's Time for Business Answer: B 50) Electronics company Sony sells its products under its own brand name. Thus, Sony is a ________ brand. A) licensed B) private C) store D) national E) distributor Answer: D 51) Which of the following is a desirable quality for a brand name? A) The name should be difficult to pronounce. B) The name should be a word used in day-to-day life rather than being distinctive. C) The name should not suggest anything about the product quality. D) The name should translate easily into foreign languages. E) The name should not be extendable. Answer: D 52) Store brands are also known as ________ brands. A) national B) manufacturer's C) private D) extended E) licensed Answer: C 53) Which of the following is an example of licensing? A) Electronics company DMX acquires a smaller company and begins to sell all its products under the DMX brand. B) Fruit juice company BerryBerry uses a cartoon character to market its line of children's products, paying the creator of the character a fee. C) Sporting goods company XLC sponsors a number of top athletes in various sports, and also hosts the XLC Sporting Achievement Awards. D) Bicycle manufacturer ZetaBike teams up with sports drink producer VitaWater to introduce ZetaVita, an energy drink. E) Retail chain Mason's sells a number of different products from different manufacturers under its store brand, Mason's. Answer: B

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54) ________ occurs when two established brand names of different companies are used on the same product. A) Aggregated branding B) Co-branding C) Private branding D) Multibranding E) Clustered branding Answer: B 55) BerryBerry is a fruit juice company that has traditionally sold five varieties of mixed-fruit juices: DazzleBerry, AquaBerry, MangoBerry, FuschiaBerry, and GloBerry. The company wants to add more products to its lineup. Which of the following is an example of co-branding? A) The company introduces BerryBliss, a dried berry snack mix for kids. B) BerryBerry adds a new fruit juice flavor: TangyBerry. C) The company introduces a line of flavored milk and yoghurt under the Goodness brand. D) The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. E) BerryBerry teams up with sporting goods company SFX to introduce a line of energy bars called BerryBerry SFX. Answer: E 56) ________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category. A) Line extension B) Co-branding C) Private labeling D) Brand extension E) Clustered branding Answer: A 57) BerryBerry is a fruit juice company that has traditionally sold five varieties of mixed-fruit juices: DazzleBerry, AquaBerry, MangoBerry, FuschiaBerry, and GloBerry. The company wants to add more products to its lineup. Which of the following would be a line extension for BerryBerry? A) The company introduces BerryBliss, a dried berry snack mix for kids. B) BerryBerry adds a new fruit juice flavor: TangyBerry. C) The company introduces a line of flavored milk and yoghurt under the Goodness brand. D) The company creates a new brand for a line of cosmetics based on fruit flavors and colors. E) BerryBerry teams up with sporting goods company SFX to introduce a line of energy bars called BerryBerry SFX. Answer: B

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58) ________ involves using an existing brand name for a new product category. A) Line extension B) Co-branding C) Private labeling D) Brand extension E) Clustered branding Answer: D 59) BerryBerry is a fruit juice company that has traditionally sold five varieties of mixed-fruit juices: DazzleBerry, AquaBerry, MangoBerry, FuschiaBerry, and GloBerry. The company wants to add more products to its lineup. Which of the following would be a brand extension for BerryBerry? A) The company introduces BerryBliss, a dried berry snack mix for kids. B) BerryBerry adds a new fruit juice flavor: TangyBerry. C) The company introduces a line of flavored milk and yoghurt under the Goodness brand. D) The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. E) BerryBerry teams up with sporting goods company SFX to introduce a line of energy bars called BerryBerry SFX. Answer: A 60) BerryBerry is a fruit juice company that has traditionally sold five varieties of mixed-fruit juices: DazzleBerry, AquaBerry, MangoBerry, FuschiaBerry, and GloBerry. The company wants to add more products to its lineup. Which of the following would indicate that BerryBerry follows a multibranding strategy? A) The company introduces BerryBliss, a dried berry snack mix for kids. B) BerryBerry adds a new fruit juice flavor: TangyBerry. C) The company introduces a line of flavored milk and yoghurt under the Goodness brand. D) The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. E) BerryBerry teams up with sporting goods company SFX to introduce a line of energy bars called BerryBerry SFX. Answer: C 1) What is a product? What are the three levels of a product? Answer: A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Products include more than just tangible objects, such as cars, computers, or cell phones. Broadly defined, products also include services, events, persons, places, organizations, id...