Chapter 6

Question 1

Which of the following is a tangible good that can be purchased, sold, and owned? a) A haircut b) A product c) Customer Experience d) A flight

Answer 1

b) A product

Question 2

What determines what a product can do? a) Price b) Benefits c) Features d) Services

Answer 2

c) Features

Question 3

: What is exchanged by the buyer to receive the value offered by the product or service? a) Value b) Benefit c) Features d) Price

Answer 3

d) Price

Question 4

What does Customer Experience (CX) involve? a) Product features only b) Price and Tangibility c) Service provider interactions d) Every touchpoint a customer has with a brand or company

Answer 4

d) Every touchpoint a customer has with a brand or company

Question 5

In the RATER model, what does “Tangibility” refer to? a) The service provider’s empathy towards customers b) The service provider’s ability to respond to customers’ interests c) The reliability of the service provided d) Tangible characteristics that signal an appropriate level of quality for the service being provided

Answer 5

d) Tangible characteristics that signal an appropriate level of quality for the service being provided

Question 6

An approach to offerings that integrates the physical product, attendant services, and price into the total offering is known as what? a) The product-dominant approach b) The service-dominant approach c) The RATER model d) Customer experience

Answer 6

b) The service-dominant approach

Question 7

The core technology on which a product is built is known as what? a) Product line b) Product breadth c) Technology Platform d) Product Depth

Answer 7

c) Technology Platform

Question 8

What is a group of related offerings called? a) Technology platform b) Product mix c) Line depth d) Product line

Answer 8

d) Product line

Question 9

What is a low-priced, frequently purchased product or service that requires little shopping effort called? a) Shopping offering b) Specialty offering c) Unsought offering d) Convenience offering

Answer 9

d) Convenience offering

Question 10

Which type of offering is one for which the consumer will make an effort to compare various firms’ offerings and select a brand? a) Convenience offering b) Specialty offering c) Unsought offering d) Shopping offering

Answer 10

d) Shopping offering

Question 11

Which of the following is an offering that buyers do not generally want to shop for until they need them? a) Convenience offering b) Shopping offering c) Specialty offering d) Unsought offering

Answer 11

d) Unsought offering

Question 12

Machinery used in a manufacturing facility would be considered what kind of offering? a) Raw materials b) Facilitating offering c) MRO d) Capital equipment

Answer 12

d) Capital equipment

Question 13

What are materials firms offer other firms so they can make a product or provide a service called? a) Capital Equipment b) Raw materials offerings c) OEM offerings d) MRO offerings

Answer 13

b) Raw materials offerings

Question 14

What is the symbol associated with a brand called? a) Brand name b) Brand mark c) Brand extension d) Brand equity

Answer 14

b) Brand mark

Question 15

Utilizing an existing brand name or brand mark for a new product category is known as what? a) Brand extension b) Brand equity c) Brand name d) Cannibalization

Answer 15

a) Brand extension

Question 16

When a firm’s new offering eats into the sales of one of its older offerings, what is this called? a) Brand extension b) Brand equity c) Cannibalization d) Brand promise

Answer 16

c) Cannibalization

Question 17

What type of packaging holds a single retail unit of a product? a) Tertiary packaging b) Secondary packaging c) Primary packaging d) Connected Packaging

Answer 17

c) Primary packaging

Question 18

What is packaging with technology embedded that adds value to the consumer and/or producer called? a) Tertiary packaging b) Secondary packaging c) Primary packaging d) Smart packaging

Answer 18

d) Smart packaging

Question 19

The person responsible for all business decisions regarding offerings within one brand is known as what? a) Product Manager b) Category Manager c) Market Manager d) Brand manager

Answer 19

d) Brand manager

Question 20

Which type of manager has responsibility for business decisions within a broad grouping of offerings? a) Product Manager b) Category manager c) Market Manager d) Brand manager

Answer 20

b) Category manager

Question 21

A hotel wants to improve its customer service and overall customer experience. Utilising the RATER model, which of the following actions would best address the ‘Empathy’ dimension?
*
a) Providing high-quality shampoo and well-maintained furniture in every room
*
b) Ensuring quick and efficient handling of customer complaints
*
c) Training personnel to understand and respond to individual customer needs and desires

Answer 21

c) Training personnel to understand and respond to individual customer needs and desires
*

Question 22

.
A company that manufactures dishwashers is considering how to present its product line. Which of the following best describes a decision related to line depth?
*
a) Deciding whether to also offer refrigerators and ovens
*
b) Determining the different colours and finishes to offer for a particular dishwasher model
*
c) Choosing to sell directly to consumers or through retail partners
*
d) Setting a high initial price and gradually decreasing it over time

Answer 22

b) Determining the different colours and finishes to offer for a particular dishwasher model

Question 23

.
A consumer is looking to purchase a new smartphone. They compare different brands, read online reviews, and visit multiple stores before making a decision. For this consumer, a smartphone is an example of which type of consumer offering?
*
a) Convenience offering
*
b) Shopping offering
*
c) Specialty offering
*
d) Unsought offering

Answer 23

b) Shopping offering

Question 24

.
A company is launching a new line of organic coffee. Which of the following actions best demonstrates the use of smart packaging?
*
a) Using a resealable bag to keep the coffee fresh
*
b) Printing a QR code on the package that directs consumers to a website with brewing tips and information about the coffee’s origin
*
c) Packaging the coffee in a colourful and eye-catching bag
*
d) Including a scoop inside the bag for convenient measuring

Answer 24

b) Printing a QR code on the package that directs consumers to a website with brewing tips and information about the coffee’s origin
*

Question 25

A business is purchasing new machinery for its manufacturing plant. This machinery is expected to last for several years and will be depreciated over its useful life. This is an example of what type of B2B offering? * a) Raw material * b) Manufactured material * c) Capital equipment * d) Maintenance, repair, and operating (MRO) supplies

Answer 25

c) Capital equipment

Question 26

A well-known athletic apparel company decides to introduce a line of healthy snacks, using its existing brand name and logo. This is an example of: * a) Cannibalization * b) Brand extension * c) Market management * d) Product depth

Answer 26

b) Brand extension

Question 27

. In which of the following scenarios would a vertical market manager be most effective? * a) A company that sells a wide range of products to consumers through various retail channels * b) A company that focuses on selling the same type of product to different industries, each with unique needs and buying processes * c) A company that manages its product lines based on different geographic regions * d) A company that wants to create marketing strategies that will be efficient

Answer 27

b) A company that focuses on selling the same type of product to different industries, each with unique needs and buying processes

Question 28

A small, local bakery is known for its unique packaging that communicates the brand's commitment to sustainability and quality. This is an example of which function of packaging? * a) Protecting the product * b) Preventing leakage * c) Communicating the brand and its benefits * d) Presenting government-required warning and information labels

Answer 28

c) Communicating the brand and its benefits

Question 29

. A customer is considering purchasing a new car. They are not only evaluating the initial purchase price but also factors such as fuel efficiency, insurance costs, and maintenance expenses over the car's lifespan. This approach is best described as considering the: * a) Feature set * b) Augmented product * c) Total cost of ownership (TCO) * d) Service-dominant approach

Answer 29

c) Total cost of ownership (TCO)

Question 30

A business-to-business (B2B) company discovers that a small change in consumer demand is having a large effect throughout its supply chain. This is an example of: * a) Derived demand * b) Fluctuating demand * c) Joint demand * d) Capital equipment

Answer 30

b) Fluctuating demand

Question 31

A consumer is looking for a quick and easy breakfast option before work and purchases a granola bar at the checkout counter of a convenience store. This is an example of: * a) A shopping offering * b) A specialty offering * c) An impulse offering * d) An unsought offering

Answer 31

c) An impulse offering

Question 32

. A local coffee shop decides to introduce a new loyalty program where customers earn points for every purchase, leading to discounts and exclusive offers. This initiative primarily aims to enhance which aspect of the offering? * a) Product features * b) Price * c) Service * d) Tangibility

Answer 32

c) Service

Question 33

. A company that manufactures printers is considering expanding its product line. Which of the following decisions would best represent an increase in line breadth? * a) Introducing a new line of office furniture * b) Offering different colours and finishes for its existing printer models * c) Developing a high-end printer specifically for professional photographers * d) Creating a subscription service for printer ink and maintenance

Answer 33

a) Introducing a new line of office furniture

Question 34

A luxury car manufacturer prides itself on providing a highly personalised buying experience, with dedicated consultants assisting customers in customising their vehicles to meet their exact needs. This approach primarily focuses on which element of the RATER model? * a) Reliability * b) Assurance * c) Empathy * d) Responsiveness

Answer 34

c) Empathy

Question 35

A business is evaluating different suppliers for the raw materials used in its manufacturing process. Which of the following factors would be most important if the raw materials are considered commodities? * a) Brand reputation * b) Unique features * c) Price and availability * d) Customisation options

Answer 35

c) Price and availability

Question 36

An electronics company launches a new advertising campaign highlighting the durability and long lifespan of its products, aiming to build trust and confidence among potential buyers. This campaign primarily focuses on which aspect of building assurance? * a) Offering warranties and guarantees * b) Setting expectations for service quality * c) Providing remedies in the event of failure * d) Compensating passengers

Answer 36

b) Setting expectations for service quality

Question 37

. A software company decides to offer a free version of its product with limited features, hoping to attract new users who will eventually upgrade to the paid version. This strategy is primarily aimed at: * a) Increasing product depth * b) Expanding market reach * c) Reducing cannibalization * d) Enhancing brand image

Answer 37

b) Expanding market reach

Question 38

. A company implements a new packaging design that not only protects the product but also includes a QR code linking to a video demonstrating how to use the product effectively. This initiative primarily aims to: * a) Reduce shipping costs * b) Communicate the brand and its benefits * c) Prevent leakage and tampering * d) Comply with government regulations

Answer 38

b) Communicate the brand and its benefits

Question 39

A technology company uses components from other manufacturers to build its final product. These components are integrated into the final product without further modification. This is an example of: * a) Raw materials offerings * b) MRO offerings * c) Facilitating offerings * d) OEM offerings

Answer 39

d) OEM offerings

Question 40

A marketing manager is tasked with developing a strategy for a new product line. Which of the following steps should be prioritised first, according to the text? * a) Determining the pricing strategy * b) Understanding the target customer's needs and goals * c) Selecting the appropriate distribution channels * d) Designing the promotional campaign

Answer 40

b) Understanding the target customer's needs and goals *

Question 41

A dental practice invests in new equipment and training to offer a highly specialised treatment for TMJ disorders, setting itself apart from general dentists. This investment represents a focus on building a unique: * a) Product line * b) Technology platform * c) Service Level Agreement (SLA) * d) Brand extension

Answer 41

b) Technology platform

Question 42

A subscription box service curates and delivers a selection of products to customers on a recurring basis. This business model best exemplifies which trend? * a) The sharing economy * b) Product-oriented marketing * c) Everything as a service * d) Mass customisation

Answer 42

c) Everything as a service