Test Bank CH 8

Question 1

1) Which of the following is true with regard to products?
A) The quality of products is far more difficult to measure than that of services.
B) Products do not include experiences, organizations, persons, places, and ideas.
C) Products are not meant for sale in the market.
D) Products include services, events, persons, places, organizations, ideas, or a mixture of these.
E) Products refer to only those activities that are essentially intangible.

Answer 1

D

Question 2

2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
A) Liabilities
B) Services
C) Brands
D) Consumer products
E) Specialty products

Answer 2

B

Question 3

3) Which of the following exemplifies a service?
A) candy
B) laptop
C) hair salon
D) car
E) laundry detergent

Answer 3

C

Question 4

4) Marketing mix planning begins with ________.
A) building an offering that brings value to target customers
B) finding a suitable promotion strategy for the product
C) setting a reasonable price for the product
D) selecting the right channel for distribution of the product
E) calculating the total costs involved in manufacturing the product

Answer 4

A

Question 5

5) Market offering includes everything from pure tangible goods to pure services, as well as combinations of goods and services. Which of the following is NOT a product or service?
A) breakfast cereal
B) rental car
C) free concert
D) shoes
E) haircut

Answer 5

C

Question 6

6) Which of the following is true with regard to services?
A) Services refer to purely tangible products.
B) Services are a form of product that consists of activities, benefits, or satisfactions offered for sale.
C) Services can be stored for later use.
D) Services can be easily separated from their providers.
E) Services are tangible product offerings whose quality can be easily measured.

Answer 6

B

Question 7

7) Which of the following is an example of a pure tangible good?
A) a laptop with a comprehensive warranty for three years
B) an online shoe retailer that provides free home delivery
C) an agency that offers free legal advice
D) a credit card
E) a bag of potato chips

Answer 7

E

Question 8

8) Which of the following product offerings is intangible?
A) a package of laundry detergent
B) an ink cartridge for a printer
C) a wool jacket
D) a gold ring
E) a taxi ride

Answer 8

E

Question 9

9) Which of the following is a goods-and-services combination?
A) a bicycle
B) a milk shake at an ice cream store
C) chocolate chips
D) a train ride
E) a music lesson

Answer 9

B

Question 10

10) Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is ________, which addresses the question, “What is the buyer really buying?”
A) an actual product
B) an augmented product
C) core customer value
D) co-branding
E) exchange value

Answer 10

C

Question 11

11) Product planners need to consider products and services on three levels. At the second level, product planners must ________.
A) offer additional product support and after-sale services
B) identify the core customer value that consumers seek from the product
C) turn the core benefit into an actual product
D) find out how they can create the most satisfying brand experience
E) define the problem-solving benefits or services that consumers seek

Answer 11

C

Question 12

12) If a consumer purchases a new flat-screen “smart” television which can connect to services like Netflix and Pandora, what is the core customer value involved?
A) connection to entertainment and information
B) state-of the art technology
C) slick and attractive packaging
D) brand name
E) tech support and warranty

Answer 12

A

Question 13

13) If a consumer purchases a new flat-screen “smart” television, what is the augmented product involved?
A) connection to the world of entertainment
B) state-of the art technology
C) slick and attractive packaging
D) brand name
E) tech support and warranty

Answer 13

E

Question 14

14) Product planners need to consider products and services on three levels. At the third level, product planners must build ________.
A) an actual product
B) an augmented product
C) core customer value
D) a brand personality
E) a basic product

Answer 14

B

Question 15

15) What is the core customer value a customer might purchase when buying Urban Decay cosmetics?
A) variety of collections
B) unique packaging
C) unusual colors
D) sense of adventure
E) long-lasting makeup

Answer 15

D

Question 16

16) ________ are industrial products.
A) Major appliances
B) Laundry detergents
C) Life insurance policies
D) Office supplies
E) Legal services

Answer 16

D

Question 17

17) Consumer products refer to ________.
A) products purchased by consumers for further processing or for use in conducting a business B) products and services bought by final consumers for personal consumption
C) primarily intangible offerings from marketers
D) raw materials as well as manufactured materials and parts
E) products that aid in the consumer’s production or operations, including installations and accessory equipment

Answer 17

B

Question 18

18) ________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services

Answer 18

D

Question 19

19) Which of the following is an example of a convenience product?
A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator

Answer 19

A

Question 20

20) ________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.
A) Shopping products
B) Convenience products
C) Unsought products
D) Capital items
E) Supplies and repair services

Answer 20

A

Question 21

21) Which of the following is NOT a category of consumer products?
A) unsought
B) specialty
C) convenience
D) luxury
E) shopping

Answer 21

D

Question 22

22) Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product.
A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive

Answer 22

D

Question 23

23) ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
A) Shopping products
B) Unsought products
C) Specialty products
D) Capital items
E) Convenience products

Answer 23

C

Question 24

24) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________.
A) convenience product
B) capital item
C) service
D) specialty product
E) product attribute

Answer 24

D

Question 25

25) ________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying.
A) Specialty products
B) Convenience products
C) Unsought products
D) Shopping products
E) Capital items

Answer 25

C

Question 26

26) ________ products are those products purchased for further processing or for use in conducting a business.
A) Unsought
B) Specialty
C) Shopping
D) Industrial
E) Convenience

Answer 26

D

Question 27

27) ________ are the major marketing factors in the sale of most manufactured materials and
parts.
A) Branding and advertising
B) Price and service
C) Sales promotion and advertising
D) Branding and packaging
E) Public relations and brand management

Answer 27

B

Question 28

28) ________ are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment.
A) Unsought products
B) Convenience products
C) Capital items
D) Specialty items
E) Repair items

Answer 28

C

Question 29

29) Installations consist of ________.
A) highly priced luxury goods such as Rolex watches
B) portable office equipment such as computers
C) major purchases such as elevators
D) portable factory equipment such as hand tools
E) products such as insurance

Answer 29

C

Question 30

30) Lubricants, coal, paper, and pencils are examples of ________.
A) operating supplies
B) capital items
C) raw materials
D) specialty products
E) installations

Answer 30

A

Question 31

31) Industrial products and services include raw materials, buildings, fixed equipment, supplies, services, and ________.
A) computers and desks
B) electricity
C) groceries
D) insurance
E) Employees

Answer 31

A

Question 32

32) ________ marketing consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization.
A) Social network
B) Organization
C) Niche
D) Location
E) Concentrated

Answer 32

B

Question 33

33) The advertising slogan, “We bring good things to life,” used by General Electric to market itself, is an example of ________ marketing.
A) person
B) corporate image
C) internal
D) place
E) niche

Answer 33

B

Question 34

34) ________ marketing consists of activities undertaken to create, maintain, or change attitudes toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use it to build their reputations. A) Corporate image
B) Person
C) Social
D) Organization
E) Place

Answer 34

B

Question 35

35) A company that uses well-known celebrities to help sell its products is using ________ marketing.
A) interactive
B) internal
C) social
D) person
E) organization

Answer 35

D

Question 36

36) ________ marketing involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions.
A) Idea
B) Place
C) Organization
D) Social
E) Interactive

Answer 36

B

Question 37

37) Tourism Australia’s global marketing campaign, “There’s nothing like Australia” is an example of ________ marketing.
A) corporate image
B) person
C) organization
D) internal
E) place

Answer 37

E

Question 38

38) Advertising campaigns involving issues ranging from health care, education, and environmental sustainability to human rights and personal safety can be classified under ________ marketing.
A) corporate image
B) internal
C) social
D) place
E) person

Answer 38

C

Question 39

39) Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes in its ad campaigns to help sell its products. This is an example of ________ marketing.
A) person
B) place
C) social
D) organization
E) internal

Answer 39

A

Question 40

40) Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________ marketing.
A) internal
B) social
C) organization
D) person
E) place

Answer 40

B

Question 41

41) Rhodia invites tourists from all over the world to experience its pristine nature, clear skies, and beautiful summertime climate. This exemplifies ________.
A) corporate image marketing
B) social marketing
C) place marketing
D) social engineering
E) negative brand equity

Answer 41

C

Question 42

57) Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________.
A) product labels
B) product attributes
C) support services
D) product packaging
E) branding

Answer 42

B

Question 43

58) Product attributes include all of the following EXCEPT ________.
A) style
B) design
C) price
D) features
E) quality

Answer 43

C

Question 44

60) ________ is an approach in which all the company’s people are involved in constantly improving the quality of products, services, and business processes.
A) Business intelligence
B) Quality function deployment
C) Total quality management
D) Brand equity management
E) Product positioning

Answer 44

C

Question 45

61) What are the two dimensions of product quality?
A) consistency and level
B) performance and conformance
C) design and innovation
D) conformance and style
E) feature and design

Answer 45

A

Question 46

62) ________ refers to freedom from defects and consistency in delivering a targeted level of performance.
A) Performance quality
B) Product style
C) Branding
D) Conformance quality
E) Product design

Answer 46

D

Question 47

63) Features are a competitive tool for differentiating a company’s product from competitors’ products. Which question are companies LEAST likely to ask in a survey of buyers regarding product features?
A) Which features could we add to improve the product?
B) Which specific features of the product do you like most?
C) How much would (a certain new feature) be worth to you?
D) Which features of the product do you like the least?
E) How do you like the product?

Answer 47

C

Question 48

64) Style simply describes the ________ of a product. A) quality
B) appearance
C) utility
D) durability
E) long-term benefits

Answer 48

B

Question 49

65) ________ contributes to a product’s usefulness as well as to its looks.
A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging

Answer 49

B

Question 50

66) A good design begins with ________.
A) brainstorming new product ideas
B) making prototypes of the planned product
C) identifying the most suitable and aesthetic packaging
D) brainstorming technical product specifications
E) observing and understanding customers and shaping their product-use experience

Answer 50

E

Question 51

67) Which of the following questions is most important for product designers to consider while developing a product?
A) Which specific features of the product do customers like most?
B) How does the product appear to buyers?
C) What are the product’s technical specifications?
D) How would customers use and benefit from the product?
E) How can the product be packaged to stimulate instant purchase?

Answer 51

D

Question 52

68) A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service.
A) feature
B) brand
C) line extension
D) package
E) value chain

Answer 52

B

Question 53

69) ________ involves designing and producing the container or wrapper for a product.
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling

Answer 53

A

Question 54

70) A product’s ________ identifies the product or brand, describes several things about the product, and promotes the brand.
A) line extension
B) portfolio
C) label
D) design
E) feature

Answer 54

C

Question 55

71) Which of the following has become a major packaging concern in recent years?
A) underpackaging
B) legibility of print
C) colors used
D) product safety
E) durability

Answer 55

D

Question 56

72) A label can identify, promote, and ________ the product.
A) sell
B) assemble
C) package
D) brand
E) describe

Answer 56

E

Question 57

75) A ________ is 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 type of outlets, or fall within given price ranges.
A) product line
B) line extension
C) private brand
D) multibrand
E) new brand

Answer 57

A

Question 58

76) The major product line decision involves product ________, the number of items in the product line.
A) features
B) line depth
C) line conformance
D) line length
E) packaging

Answer 58

D

Question 59

77) ________ involves adding more items within the present range of the product line. A) Market diversification
B) Brand extension
C) Product line filling
D) Upward product line stretching
E) Downward product line stretching

Answer 59

C

Question 60

78) Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in order to increase profits and satisfy dealers. This is an example of .________
A) line filling
B) social marketing
C) market diversification
D) negative brand equity
E) person marketing

Answer 60

A

Question 61

79) ________ occurs when a company lengthens its product line beyond its current range. A) Product line filling
B) Product line stretching
C) Co-branding
D) Niche marketing
E) Market diversification

Answer 61

B

Question 62

80) Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars. This is an example of ________. A) social marketing
B) product line filling
C) product line stretching
D) internal marketing
E) cannibalization

Answer 62

C

Question 63

81) A ________ consists of all the product lines and items that a particular seller offers for sale.
A) product mix
B) store brand
C) supply chain
D) value chain
E) line extension

Answer 63

A

Question 64

82) Product mix ________ refers to the number of different product lines the company carries. A) length
B) height
C) width
D) consistency
E) depth

Answer 64

C

Question 65

83) Product mix ________ refers to the total number of items a company carries within its product lines.
A) length
B) depth
C) height
D) width
E) consistency

Answer 65

A

Question 66

84) Product mix ________ refers to the number of versions offered for each product in the line. A) length
B) depth
C) height
D) width
E) consistency

Answer 66

B

Question 67

85) The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.
A) length
B) depth
C) consistency
D) width
E) height

Answer 67

C

Question 68

86) A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.
A) lengthened its existing product line
B) decreased its product line consistency
C) widened its product mix
D) engaged in market diversification
E) engaged in social marketing

Answer 68

C

Question 69

106) Service ________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.
A) inseparability
B) variability
C) intangibility
D) perishability
E) heterogeneity

Answer 69

C

Question 70

107) Which of the following actions is a restaurant owner most likely to take in order to reduce problems associated with service intangibility?
A) increase entree prices after 6:00 p.m.
B) provide clean tablecloths and fresh napkins for each new customer
C) empower employees to handle customer complaints
D) offer discounted prices for appetizers ordered during happy hour
E) hold regular employee workshops focusing on customer service

Answer 70

B

Question 71

108) Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were largely dependent on other customers’ feedback and signals for service quality. Which of the following characteristics of service is highlighted in this instance?
A) service intangibility
B) service inseparability
C) service variability
D) service perishability
E) service distinction

Answer 71

A

Question 72

109) If a service employee provides the service, then the employee becomes a part of the service. This is an example of service ________.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity

Answer 72

B

Question 73

110) Service ________ means that the quality of services depends on who provides them as well as when, where, and how they are provided.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity

Answer 73

C

Question 74

111) The customers of Parry’s Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when, where, and how the service is provided. Which of the following characteristics of service is evident in this instance?
A) service intangibility
B) service inseparability
C) service perishability
D) service variability
E) service distinction

Answer 74

D

Question 75

112) Service ________ means that services cannot be stored for later sale or use.
A) consistency
B) perishability
C) variability
D) intangibility
E) inseparability

Answer 75

B

Question 76

113) Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex’s problem?
A) intangibility
B) perishability
C) inconsistency
D) variability
E) inseparability

Answer 76

B

Question 77

115) The service profit chain includes internal service quality, satisfied and productive service employees, greater service value, healthy service profits and growth, and ________.
A) higher market share
B) better paid employees
C) satisfied and loyal customers
D) increased manufacturing efficiency
E) higher morale

Answer 77

C

Question 78

118) Service companies can differentiate their offering by ________.
A) having a lower price than their competitors
B) designing a superior delivery process
C) offering a stellar physical environment in which the product is delivered
D) developing innovative features
E) adopting a recognizable image

Answer 78

D

Question 79

119) Service companies can differentiate their service delivery by ________.
A) using symbols and logos
B) instituting a hierarchical organizational structure
C) offering innovative product features
D) de-emphasizing branding
E) having more able and reliable customer-contact people

Answer 79

E

Question 80

120) Apollo Couriers, a company providing international express mail services, has a proactive customer communications team. The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick remedies to fix the problems. To a great extent, this has helped Apollo in winning customer loyalty. In this instance, Apollo has benefitted from ________.
A) product differentiation
B) good service recovery
C) multibranding
D) place marketing
E) co-branding

Answer 80

B

Question 81

134) ________ represent(s) consumers’ perceptions and feelings about a product and its performance.
A) Product lines
B) Labeling
C) Brands
D) Design
E) Product attributes

Answer 81

C

Question 82

135) Brand ________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.
A) differentiation
B) knowledge
C) equity
D) personality
E) relevance

Answer 82

C

Question 83

136) BlueFin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can than BlueFin tuna. BlueFin most likely has ________.
A) an aggressive brand personality
B) high brand equity
C) no brand commitment
D) negative brand equity
E) low brand relevance

Answer 83

B

Question 84

138) Brand ________ refers to how consumers feel if a brand meets their needs. A) differentiation
B) equity
C) dilution
D) esteem
E) relevance

Answer 84

E

Question 85

139) Brand ________ refers to how highly consumers regard and respect the brand.
A) esteem
B) conformance
C) differentiation
D) relevance
E) knowledge

Answer 85

A

Question 86

141) Which of the following is true with regard to brand equity?
A) Brand equity refers to how much consumers know about the brand.
B) High brand equity provides a company with many competitive advantages.
C) A brand has positive brand equity if consumers react less favorably to it than to an unbranded version.
D) Positive brand equity derives from low brand esteem.
E) The total financial value of a brand can be easily measured

Answer 86

B

Question 87

142) The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates.
A) the customer mix
B) customer equity
C) the product experience
D) service variability
E) the service encounter

Answer 87

B

Question 88

143) Which of the following is the lowest level on which marketers can position their brands in target customers’ minds?
A) beliefs and values
B) product benefits
C) product attributes
D) after-sale services
E) brand equity

Answer 88

C

Question 89

144) The strongest brands are positioned on ________.
A) desirable benefit
B) good packaging
C) service inseparability
D) strong beliefs and values
E) product attributes

Answer 89

D

Question 90

145) Gainville Inc. manufactures Android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy, Kendell Associates. Gainville is most likely positioned on .________
A) basic product attributes
B) short-term benefits
C) service variability
D) self-image enhancement
E) strong beliefs and values

Answer 90

E

Question 91

146) A good brand name should most likely be ________.
A) trendy
B) complex
C) long
D) conventional
E) distinctive

Answer 91

E

Question 92

147) An increasing number of retailers and wholesalers have created their own ________, also called store brands.
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer’s brand

Answer 92

B

Question 93

148) Costco’s Kirkland Signature products are an example of a ________.
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer’s brand

Answer 93

C

Question 94

149) Which of the following is true with regard to store brands?
A) Store brands have been declining in popularity and strength for more than two decades.
B) Store brands are also known as national brands.
C) Store brands are created and owned by resellers of a product or service.
D) Increasing consumer distrust toward store brands has led to a store-brand slump.
E) Store brands are growing far slower than manufacturer’s brands.

Answer 94

C

Question 95

150) Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This process is known as ________.
A) multibranding
B) positioning
C) segmenting
D) co-branding
E) licensing

Answer 95

E

Question 96

151) ________ occurs when two established brand names of different companies are used on the same product.
A) Market diversification
B) Niche marketing
C) Co-branding
D) Licensing
E) Cannibalization

Answer 96

C

Question 97

152) Which of the following is an advantage offered by co-branding?
A) Manufacturers do not have to invest in creating their own brand names with co-branding.
B) Co-branding allows retailers to sell exclusive products that cannot be purchased from competitors.
C) Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone.
D) Co-branding dilutes brand equity and increases the appeal of store brands.
E) Co-branding does not involve complex legal contracts and licenses.

Answer 97

C

Question 98

153) ________ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.
A) Line extension
B) Megabranding
C) Interactive marketing
D) Internal marketing
E) Co-branding

Answer 98

A

Question 99

154) ________ involves the use of a successful brand name for new or modified products in a new category.
A) A line extension
B) A product line
C) A brand extension
D) Co-branding
E) Cannibalization

Answer 99

C

Question 100

155) Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________.
A) line extension
B) brand extension
C) licensing
D) co-branding
E) cannibalization

Answer 100

B

Question 101

156) Which of the following is a potential drawback of multibranding?
A) Multibranding tends to decrease brand loyalty.
B) Company resources are likely to be concentrated on a single brand.
C) Multibranding curbs the growth opportunities of established brands.
D) Each brand might obtain only a small market share, and none may be very profitable.
E) Multibranding causes companies to refrain from product diversification.

Answer 101

D

Question 102

158) While advertising campaigns can help create name recognition, brand knowledge, and perhaps even some brand preference, brands are not maintained by advertising but by .________
A) brand differentiation
B) line extensions
C) brand experiences
D) brand sponsorships
E) brand awareness

Answer 102

C