Deck 8: Elements of Product Planning for Goods and Services

Question 1

Brand familiarity means how well customers recognize and accept a company's brand.

Answer 1

True
Explanation: Brand familiarity means how well customers recognize and accept a company's brand. The degree of brand familiarity affects the planning for the rest of the marketing mix.

Question 2

A product assortment is the set of all product lines and individual products that a firm sells.

Answer 2

True
Explanation: A product assortment is the set of all product lines and individual products that a firm sells.

Question 3

A trademark can be a word, but cannot be a symbol.

Answer 3

False
Explanation: Trademark is a legal term. A trademark includes only those words, symbols, or marks that are legally registered for use by a single company.

Question 4

The "Product" area is concerned with what goods and services are produced, but not with decisions about installation, instructions on use, packaging, a brand name, a warranty, or after-sale service.

Question 5

Goods are intangible and services are tangible.

Question 6

The definition of quality focuses on the producer.

Question 7

A "Product" should be thought of as potential customer satisfaction or benefits.

Question 8

Branding is more likely to be successful if the product is the best value for the price, and quality can be consistently maintained.

Question 9

When comparing two similar products, the product with the most features is the higher quality product.

Question 10

It is usually more difficult to provide consistent quality for goods as opposed to services.

Question 11

A product line is a set of individual products that are closely related.

Question 12

A service is not a "Product" because services do not include any physical good.

Question 13

A service mark is the same as a trademark, except that it refers to a service offering.

Question 14

Branding would be more likely to be successful if dependable and widespread availability of a product is possible.

Question 15

A service logo refers to a type of trademark used for a service offering.

Question 16

A "Product" might involve a physical good, a service, or a combination of the two.

Question 17

Product means the need-satisfying offering of a firm.

Question 18

"Branding" includes the use of trademarks and brand names to identify a product.

Question 19

An individual product is a particular product within a product line.

Question 20

Goods are typically mass-produced in a factory far away from customers, while services are produced in their presence.

Question 21

A firm can lose all rights to a brand name if the name becomes a common descriptive term for that kind of product.

Question 22

A major advantage of dealer brands is that the intermediary usually earns a better margin than the intermediary would earn with manufacturer brands.

Question 23

A licensed brand can be used by only one company.

Question 24

Brand names that convey a positive image in one language may be meaningless in another.

Question 25

There is no real reason for a firm to use individual brands rather than a family brand-except to avoid confusion.

Question 26

If a trademark is to be used in foreign markets, it is wise to register it under the Lanham Act.

Question 27

The Lanham Act spells out the exact method for protecting registered trademarks, but does not force firms to register their trademarks.

Question 28

Manufacturer brands are always advertised and distributed more widely than dealer brands.

Question 29

Brand equity is the value of the brand's overall strength in the market.

Question 30

Brand insistence means that target customers usually choose one brand over other brands, perhaps because of habit or favorable past experience.

Question 31

A marketing manager should make sure the firm's brand names do not become so familiar that they become common descriptive terms for certain kinds of products.

Question 32

The "battle of the brands" hurts consumers by driving up prices.

Question 33

Generic products are popular in the U.S. and other developed nations, but not in less-developed nations.

Question 34

Brand equity is likely to be lower if customers insist on buying a product and retailers are eager to stock it.

Question 35

Brand preference means customers usually choose the brand over other brands, perhaps out of habit or past experience.

Question 36

It is usually necessary for a firm to use a family brand rather than individual brands if it plans to offer products at different quality and price levels to different target markets.

Question 37

Family brands may cut promotion costs because the goodwill attached to one or two products may help the others.

Question 38

The "battle of the brands" is the competition between dealer brands and manufacturer brands.

Question 39

A product which has no brand other than the identification of the contents is a generic product.

Question 40

Dealer brands are brands created by producers.

Question 41

The Federal Fair Packaging and Labeling Act of 1966 requires that firms in a product-market reduce the number of package sizes to three or fewer for any product.

Question 42

Magnuson-Moss Act says that producers must provide a clearly written warranty if they choose to offer any warranty.

Question 43

A warranty explains what the seller promises about its product.

Question 44

It is illegal for a firm to use a package that cannot be recycled.

Question 45

The four groups of consumer products are: convenience products, shopping products, specialty products, and unsought products.

Question 46

The Federal Fair Packaging and Labeling Act of 1966 requires that consumer products be clearly labeled in understandable terms.

Question 47

There are two broad groups of product classes based on the type of customer that will use the product.

Question 48

Business product classes are based on how buyers think about products and how the products will be used.

Question 49

Business product classes are based on the way that buyers shop for and buy products, because there is much more shopping for business products compared to consumer products.

Question 50

Examples of packaging's role of protecting include its link to promotion and its role in conveying product information.

Question 51

Federal Fair Packaging and Labeling Act requires that consumer goods be clearly labeled in easy-to-understand terms to give consumers more information.

Question 52

Packaging can add value to a market offering by promoting, protecting, or enhancing the product.

Question 53

Total distribution costs may increase because of packaging.

Question 54

Consumers in the U.S. generate more trash per person than anywhere else on the planet and packaging is a major contributor to this dilemma.

Question 55

A warranty must be available for inspection before a purchase is made.

Question 56

Good packaging can provide a product with an important competitive advantage.

Question 57

Spending money to improve protective packaging may be necessary, but it usually results in higher total distribution costs for a firm's product.

Question 58

Coke's logo greeting a consumer when they open the refrigerator and see the can is an example of enhancing the product.

Question 59

Because packaged products are regularly seen in retail stores, a good package may give a firm more promotion effect than it could possibly afford with advertising.

Question 60

Customer service guarantees are becoming less common because service companies can't live up to their promises.

Question 61

Products which a consumer needs but isn't willing to spend much time shopping for are convenience products.

Question 62

Specialty products are usually only purchased once-in-a-lifetime, so the customer must search extensively before buying.

Question 63

Shopping products that a customer sees as basically the same and wants at the lowest price are homogeneous shopping products.

Question 64

Consumer products that a customer really wants and is willing to make a special effort to shop for and compare different possibilities are specialty products.

Question 65

Without promotion, unsought products will probably stay unsold.

Question 66

Consumer products that are bought often, routinely, and without much thought are staples.

Question 67

Convenience products include staples, impulse products, and emergency products.

Question 68

Shopping products that a customer sees as basically the same and wants at the lowest price are heterogeneous shopping products.

Question 69

Shopping products that a customer sees as different and wants to inspect for quality and suitability are heterogeneous shopping products.

Question 70

Customers usually plan and shop for impulse products.

Question 71

Homogeneous shopping products are basically the same in the eyes of the customer and purchase decisions are often based on price.

Question 72

Shopping products are products that are purchased immediately when the need is great.

Question 73

According to the text, the consumer product classes are based on why consumers use products.

Question 74

Consumer products that a customer feels are worth the time and effort to compare with competing products are shopping products.

Question 75

Staples are consumer products that are sold in places like gourmet shops and health food stores, because convenience is not important to the customer.

Question 76

Consumer products that offer truly new ideas that potential customers don't know about yet are new unsought products.

Question 77

Shopping for a specialty product involves comparing the special features of different brands.

Question 78

Firms should try to show the value of unsought products through promotion because people do not want them or know that they are available.

Question 79

Emergency products are purchased only when the need is great and urgent, and therefore price is usually not very important.

Question 80

Consumer products that a customer buys on sight as unplanned purchases, may have bought the same way before, and wants "right now" are impulse products.