Deck 9: Elements of Product Planning for Goods and Services

Question 1

Goods are intangible and services are tangible.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

The definition of quality focuses on the producer.

Question 11

Product means the need-satisfying offering of a firm.

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

A trademark explains what the seller promises about its product.

Question 19

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 20

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

Question 21

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

Question 22

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 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

A licensed brand can be used by only one company.

Question 30

Some nations require that a trademark be registered in its home country before it can be registered in a foreign country.

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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 40

Dealer brands are brands created by producers.

Question 41

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

Question 42

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

Question 43

There's usually less risk in offering a service guarantee than a warranty on a physical product.

Question 44

A universal product code (UPC) contains the manufacturer's suggested retail price for the product on which it appears.

Question 45

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

Question 46

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 47

It may be economically impossible for small firms to offer strong warranties.

Question 48

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

Question 49

The universal product code has been opposed by large supermarket chains because it slows down the checkout process.

Question 50

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

Question 51

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 52

A warranty explains what the seller promises about its product.

Question 53

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

Question 54

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

Question 55

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 56

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

Question 57

Most manufacturers would be wise to provide a strong warranty with their products, because customers like them and they are inexpensive to back up.

Question 58

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

Question 59

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

Question 60

Total distribution costs may increase because of packaging.

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

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

Question 67

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

Question 68

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

Question 69

Customers usually plan and shop for impulse products.

Question 70

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

Question 71

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

Question 72

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

Question 73

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 74

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

Question 75

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

Question 76

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

Question 77

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

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

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

Question 80

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