Exam 10: Product Concepts

Under the _____,all sales have an implied warranty.

A consumer who consistently and repeatedly purchases the same brand is said to have:

A _____ is a legal term indicating the owner's exclusive right to use a brand name or other identifying mark.

Maureen purchased a package of Bounce fabric sheets with Febreeze citrus scent.Since both brands were prominently listed on the package,this would be an example of:

Brand names such as Kleenex,UPS,Sony,Chevrolet,and Kellogg's are likely to have less brand equity than brand names like Viking,Zojirishi,Schimano,and Thule.

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.

The consumer product classification system is based on:

Hardie Siding Products James Hardie began selling fiber cement siding products in the United States in 1989 to leading builders, lumberyards, and home improvement centers. Even though ads guaranteed the product would not rot or crack for 50 years, many builders hated the product. It was heavy to install, and it showed every flaw in a bad framing job. In 1997, Hardie decided to run ads in traditional lifestyle magazines and emphasize the emotional appeal of houses made with strong, weather-resistant materials. Soon consumers began asking their builders or remodelers to use the product. Trade ads were used to explain how builders could take advantage of the interest created by the ads in lifestyle magazines. By 2000, the Hardieplank was the number one brand siding in North America. James Hardie is now the third most recognized brand of building material in the world. -Refer to Hardie Siding Products.By changing the focus of its promotion from the building industry to homeowners who saw their homes as sources of security,warmth,and stability,Hardie Siding used a _____ strategy.

Mia's new raincoat contains a label that reads "Professional dry clean only." This is an example of a(n)_____label.

Chef's Catalog built its reputation on selling the highest-quality baking ingredients.The catalog retailer has added a line of fine kitchen tools and wants its customers to think of the retailer as a place to buy everything needed to bake the finest breads and desserts--not just for buying the ingredients.The marketing term for changing consumers' perceptions of the Chef's Catalog is segmentation.

Which of the following products is most likely to be considered an example of a heterogeneous shopping product?

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

Choice Homes, Inc. Choice Homes, Inc., based in Texas, built its reputation by building high-quality new homes, often at prices less than "used" ones. Choice Homes used mass-purchasing power, innovative high-tech communications among employees to coordinate the building process, and other entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the "American Dream" of home ownership for the same price as rent. Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes, especially for current Choice home owners who are ready to "move up" to a larger home. Recently, Choice Homes started a third line of homes called "Reflections," which are expensive, custom-designed homes located in exclusive, prestigious neighborhoods. -Refer to Choice Homes,Inc.In a recent survey,Choice Homes' customers indicated that they thought their homes were high quality,made lots of referrals to friends,and planned to buy a Choice Classic or Reflections home in the future.The customers' reactions indicate that Choice Homes has achieved:

The statement on the toothpaste box that brushing twice a day with this paste will remove 90 percent of all tartar from the user's teeth is an example of a(n):

Choice Homes, Inc. Choice Homes, Inc., based in Texas, built its reputation by building high-quality new homes, often at prices less than "used" ones. Choice Homes used mass-purchasing power, innovative high-tech communications among employees to coordinate the building process, and other entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the "American Dream" of home ownership for the same price as rent. Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes, especially for current Choice home owners who are ready to "move up" to a larger home. Recently, Choice Homes started a third line of homes called "Reflections," which are expensive, custom-designed homes located in exclusive, prestigious neighborhoods. -Refer to Choice Homes,Inc.Choice Homes is considering the development of a new category of small homes designed to replace low-income housing in the inner city.This strategy represents a:

Nestle When consumers think of Nestle, they probably think of chocolate. Historically, though, Nestle's confectionary business is its weakest area. Based in Switzerland, it is the world's largest food company, with a brand arsenal of Nescafe, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestle is hoping to become the "world's leading health, nutrition, and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health. Nestle wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining their product mix by selling underperforming items or lines that do not fit its new direction. Critics claim this new focus could hurt the company's existing brands if the new products fail. Additionally, it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company. -Refer to Nestle.After developing these new,functional products,Nestle will have to change consumers' perceptions of its brands because it is known for indulgence,not wellness. Nestle will have to _____ itself.

Choice Homes, Inc. Choice Homes, Inc., based in Texas, built its reputation by building high-quality new homes, often at prices less than "used" ones. Choice Homes used mass-purchasing power, innovative high-tech communications among employees to coordinate the building process, and other entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the "American Dream" of home ownership for the same price as rent. Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes, especially for current Choice home owners who are ready to "move up" to a larger home. Recently, Choice Homes started a third line of homes called "Reflections," which are expensive, custom-designed homes located in exclusive, prestigious neighborhoods. -Refer to Choice Homes,Inc.The three different brands of homes (Choice,Choice Classic,and Reflections)represent the firm's:

Lands' End,a catalog retailer,offers a written satisfaction guarantee on all merchandise it sells.In other words,Lands' End gives its customers a(n)_____ warranty.

When a greenhouse plant grower sells plants to nursery retailers,is selling _____ products.

Retailers love national brands because overhead is low and there are no marketing costs,and they bring higher margins than private brands.