Deck 6: Product and Brand Strategy

Question 1

Which of the following observations about a product is incorrect?

A) The service warranty is defined as part of the product.
B) The fact that a mattress offers back support is part of its extended product.
C) Generic products are the essential benefits the buyer expects to receive from the product.
D) Products can be solely defined in terms of the tangible product.

Answer 1

D
Explanation: The same product can be viewed at least three different ways. The physical entity or service that is offered to the buyer (tangible product), the tangible product along with the whole cluster of services that accompany it (extended product), and the essential benefits the buyer expects to receive from the product (generic product) are the ways in which the product variable is defined.

Question 2

Convenience goods, shopping goods, and specialty goods are the three classes of

A) agricultural goods.
B) raw materials.
C) organizational goods.
D) consumer goods.

Answer 2

D
Explanation: Conventional goods, shopping goods, and specialty goods are the three classes of consumer goods.

Question 3

Goods grown or extracted from the land or sea, such as iron ore, wheat, and sand are better known as

A) agricultural products and raw materials.
B) organizational goods.
C) convenience goods.
D) specialty goods and unsought materials.

Answer 3

A
Explanation: Agricultural products and raw materials: These are goods grown or extracted from the land or sea, such as iron ore, wheat, and sand.

Question 4

Cotton, coal, diamonds, and soybeans are examples of

A) organizational goods.
B) convenience goods.
C) raw materials.
D) specialty goods.

Question 5

Which of the following statements regarding organizational goods is true?

A) Organizational goods are usually purchased as an end in themselves.
B) The channels of distribution for these goods are longer than those for consumer goods.
C) Organizational goods include anything that businesses need for their day-to-day operation.
D) A primary purchasing motive for organizational goods is convenience.

Question 6

Major and minor equipment such as basic machinery, tools, and other processing facilities form a category under

A) specialty goods.
B) organizational goods.
C) semifinished goods.
D) maintenance goods.

Question 7

Products that are purchased by business firms for the purpose of producing other goods or services for running a business are called

A) convenience goods.
B) organizational goods.
C) specialty goods.
D) shopping goods.

Question 8

A product that is viewed in terms of providing essential benefits that the buyer expects to receive from it is referred to as a

A) tangible product.
B) generic product.
C) intangible product.
D) extended product.

Question 9

Which of the following best describes a horizontal market?

A) These markets offer only specialty goods so that consumers will make a special effort to buy them.
B) These markets offer certain products that have a limited number of buyers.
C) These markets offer goods that are purchased by all types of firms in many different industries.
D) These markets include only those convenience goods that are purchased frequently and with minimum effort.

Question 10

Which of the following observations is true?

A) Generic products are known as commodities or unbranded goods.
B) A generic product is defined as the tangible product along with the whole cluster of services that accompany it.
C) A product like a refrigerator does not have an extended product.
D) Products viewed too narrowly could suffer from a 'marketing myopia' condition.

Question 11

The way in which the product variable is defined can have important implications for all of the following except the

A) survival of a firm.
B) long-run growth of a firm.
C) production capacity of a firm.
D) profitability of a firm.

Question 12

Which of the following products would be classified as an organizational good?

A) An electric generator purchased by a home owner to use in the event of a power outage.
B) Curtains purchased by homeowner.
C) A pair of ear plugs brought by a man using his chain saw to remove a tree lying across his driveway.
D) Timber purchased by a furniture store owner to make chairs.

Question 13

Products having limited number of buyers are better known as a

A) limited market.
B) vertical market.
C) horizontal market.
D) non-segmented market.

Question 14

All of the following elements relate to agricultural products except that they

A) have low value per unit.
B) are fairly homogeneous.
C) are sold in large volume.
D) include basic machinery.

Question 15

One of the elements of product strategy is an audit of a firm's actual and potential resources. The audit examines all of the following, except

A) patents and licenses.
B) engineering and technical skills.
C) plant and equipment.
D) complementary goods.

Question 16

Which of the following is a basic assumption underlying product classification schemes?

A) Each product is unique and should be marketed differently.
B) The same marketing strategy can be used for all product types.
C) Products with common attributes can be marketed in a similar fashion.
D) Products should be differentiated on the basis of profit margins.

Question 17

Many personal care products bring to the purchaser feelings of self-enhancement and security in addition to the essential benefits they offer. This is an illustration of

A) an extended product.
B) a generic product.
C) tangible product.
D) conventional product.

Question 18

Identify the scenario which best describes marketing myopia.

A) The refrigerator manufacturer who believed his product stored food in a cool environment.
B) The travel agency owner who thought of cruises as differing from boring, standard vacations.
C) The owner of a tutoring service who believed his company not only tutored but also gave confidence and increased self-esteem.
D) The landscape company owner who believed his company's duty was to enhance the beauty of nature.

Question 19

The physical entity that is offered to the buyer is known as a(n)

A) extended product.
B) value product.
C) tangible product.
D) generic product.

Question 20

The tangible product along with the whole cluster of services that accompany it is called a(n)

A) extended product.
B) intangible product.
C) generic product.
D) conventional product.

Question 21

Which is defined as the degree of excellence or superiority that an organization's product possesses?

A) Quality
B) Value
C) Product planning
D) Multi-branding

Question 22

Value refers to

A) the tangible aspects of a firm's products or services.
B) the physical traits such as serviceability and reliability of a product.
C) the full set of products offered for sale by the organization.
D) what the customer gets in exchange for what the customer gives.

Question 23

Pritchard's fine rum is the only rum that is actually distilled in the southeastern part of the United States. Cruzan and Myers, both made in the Caribbean, are its main competitors. Pritchard's fine rum has a more bourbon-like flavor than other brands of rum, which tend to taste more like cognac. In terms of the classification of consumer goods, the distiller of Pritchard's fine rum would want its rum to be categorized as a(n)

A) specialty good.
B) organizational good.
C) shopping good.
D) convenience good.

Question 24

Firearms Training Systems (FATS) is a leading worldwide producer of interactive simulation systems designed to provide training in the handling and use of small and supporting arms for law enforcement, military, and commercial applications. FATS are also ISO 9000-certified. The ISO 9000-certification means FATS

A) has low cost products and a relatively horizontal market.
B) meets standardized levels of product quality.
C) has valuable brand equality.
D) does periodic marketing audits.

Question 25

An integral component of product line planning revolves around the question of

A) how many product variants should be included in the line.
B) the type of location that the marketers need to target.
C) what the financial status of the target market is.
D) the promotional strategies associated with global brands.

Question 26

Which of the following is the best example of a specialty good?

A) Pair of athletic shoes
B) Fax machine
C) Waterford crystal artifact
D) Package of peanut butter cracker

Question 27

What does the depth of a product mix refer to?

A) The number of product lines handled by the organization.
B) The length of time a product has been in the market.
C) The average number of products in each product line.
D) The total number of products in each line.

Question 28

A firm's product mix is described by its

A) width and depth.
B) profit and loss.
C) sales and marketing strategies.
D) quality and quantity.

Question 29

What does it mean when you say the market for desktop computers is horizontal?

A) Market for desktop computers is deep, in that a large percentage of the producers in the market use the product.
B) Desktop computer market is narrow, because customers are restricted to a few industries.
C) The desktop computers market has numerous middlemen.
D) Desktop computers are purchased by all types of firms in many different industries.

Question 30

Which of the following is the best example of a shopping good?

A) Home security system
B) Bottle of Snapple pink lemonade
C) Pair of fingernail clippers
D) Truckload of bricks

Question 31

Mevelyn is very particular about the kind of blue jeans she wears. Her preference is the Levi 505 and she claims that anything other than that fit "funny". This scenario is an example of Levi 505 being a(n)

A) convenience good.
B) shopping good.
C) intangible good.
D) specialty good.

Question 32

Which of the following best fits the definition of total-quality management?

A) It is a method used to minimize manufacturing costs through large-volume production units and thus lower distribution costs.
B) It encompasses high quality adherence only for consumer goods that generally require broadcast promotion and long channels of distribution.
C) It is the degree of excellence or superiority that an organization's product possesses.
D) It is a commitment to satisfy customers by continuously improving every business process involved in delivering products or services.

Question 33

The full set of products offered for sale by an organization is defined as a firm's

A) line extension.
B) product mix.
C) sales promotion.
D) product line.

Question 34

Drager is a company that manufactures a handheld device for continuous monitoring of the atmosphere in manufacturing plants where hazardous materials are routinely used as component materials. Since the number of industries that require such protective devices is limited, and Drager is the leading producer of these types of measurement devices, it can be said Drager operates in a

A) tailored market.
B) vertical market.
C) horizontal market.
D) custom market.

Question 35

What does TQM stand for?

A) Total Quality Management
B) Total Quantity Measurement
C) Total Quotient Management
D) Total Quality Measurement

Question 36

The width of a product mix refers to the

A) number of product lines handled by the organization.
B) maximum number of products in each line.
C) total number of products in each line marketed through personal selling.
D) average number of product lines handled by the organization.

Question 37

As Alan strolled through a shopping center, he tried to apply what he had learnt in a marketing class to what he saw at the mall. Which of Alan's interpretations do you believe to be most accurate?

A) The Tie Shop, which only sells ties, would have a wide product mix.
B) The Dollar Tree, which sells everything from baby rattles and potting soil to contact lens cleaning solution, would have a narrow product mix and a deep assortment.
C) The Christian Superstore, which sells hundreds of self-help books, novels, and music with a religious theme, has a narrow and deep product mix.
D) Louie's Bakery, which sells thirty-six different kinds of muffins, would have a deep product mix.

Question 38

Convenience goods generally require

A) broadcast promotion and long channels of distribution.
B) broadcast promotion and short channels of distribution.
C) targeted promotion and long channels of distribution.
D) targeted promotion and short channels of distribution.

Question 39

In a technical sense, quality can refer to all of the following physical traits except

A) durability.
B) reliability.
C) serviceability.
D) availability.

Question 40

_____ goods are purchased frequently with minimum effort.

A) Convenience
B) Specialty
C) Shopping
D) Organizational

Question 41

The responsibility for the advertising of convenience goods lies with the

A) producer.
B) distributor.
C) retailer.
D) wholesaler.

Question 42

When a corporate name is attached to a product to enter into an entirely new market segment, for example, Honda lawnmower and Toyota Lexus, it would be an example of a

A) multibranding strategy.
B) franchise extension.
C) dual branding strategy.
D) line extension.

Question 43

Products ranging from cranberries to grapefruits marketed by Ocean Spray are sold under the Ocean Spray corporate name. Ocean Spray uses

A) dual branding.
B) singular branding.
C) family branding.
D) associate branding.

Question 44

Arm & Hammer first introduced a line of toothpastes with the Arm & Hammer brand. The introduction of a mouthwash and a chewing gum using the Arm & Hammer brand name are examples of a(n)

A) line extension.
B) product mix addition.
C) brand extension.
D) franchise extension.

Question 45

Identify the correct statement about organizational products.

A) No middlemen are involved in the typically short channel for operating supplies.
B) Price competition is important when selling or buying raw material.
C) Brand preference is generally high when purchasing fabricating parts or materials.
D) Advance buying contracts are commonly used when purchasing accessory equipment.

Question 46

Which of the following observations about the classes of consumer goods is true?

A) Consumers compare both price and quality when buying shopping goods.
B) Time spent planning for the purchase of shopping goods is very little.
C) Importance of point-of-purchase display is very important when buying specialty goods.
D) The producer bears the responsibility for advertising shopping goods.

Question 47

An alternative to line extension is a(n) _____, where a current brand name is used to enter a completely different product class

A) line extension
B) brand extension
C) dual branding
D) franchise extension

Question 48

Which of the following is not a factor influencing the strength of a brand?

A) Distribution intensity
B) High pricing
C) Consistent advertising
D) Brand personality

Question 49

What does the line extension approach use?

A) Attaching a corporate name to enter a new market segment.
B) A brand name to facilitate entry into a new market product.
C) An expansion of business links.
D) Attaching the corporate name to a product to enter a different product class.

Question 50

Identify the correct statement regarding the classes of consumer goods.

A) Packaging is extremely important for specialty goods.
B) Length of the channel is typically long for specialty goods.
C) Brand name is more important than store name for shopping goods.
D) Convenience goods have a high stock turnover rate.

Question 51

Spending significant amounts of money to familiarize customers with new brands is a disadvantage associated with

A) family branding.
B) multibranding.
C) dual branding.
D) associate branding.

Question 52

What is the legal term for a brand?

A) Symbol
B) Style
C) Trademark
D) Watermark

Question 53

Chunk's favorite cereal is General Mills Reese's Peanut Butter Puffs. This cereal with a combination of peanut butter and chocolate taste is an example of

A) a product mix addition.
B) a brand extension.
C) family branding.
D) dual branding.

Question 54

General Mills makes four different varieties of Total cereal. They are Total corn flakes, Total raisin bran, Total Honey Clusters, Total brown sugar, and oats cereal. With its Total cereal brand, General Mills has used a(n)

A) line extension.
B) product mix addition.
C) brand extension.
D) franchise extension.

Question 55

Identify the correct statement from the following.

A) The number of outlets is few for convenience goods.
B) The time spent planning for a shopping good is very little.
C) The price and quality are compared in the case of shopping goods.
D) The stock turnover is reasonably high for specialty goods.

Question 56

Procter & Gamble makes Camay soap for those concerned about soft skin, and Safeguard soap for those who want deodorant protection. What is the strategy used by P&G?

A) Multibranding
B) Joint branding
C) Product extension
D) Brand extension

Question 57

Land O'Lakes began by manufacturing butter. Today this company also produces Land O'Lakes honey butter. This scenario is an example of a

A) line extension.
B) product mix addition.
C) brand extension.
D) franchise extension.

Question 58

Mama Moo's began by manufacturing butter. Today this company also produces Mama Moo's cream cheese, which is an example of

A) a brand extension.
B) a product mix addition.
C) a franchise extension.
D) dual branding.

Question 59

What is multibranding strategy?

A) Companies marketing their brand jointly with that of their competitors.
B) Companies assigning different brand names to each of their products.
C) Companies attaching corporate name to a product to enter a different product class.
D) Companies assigning different brand names to the same products in different outlets.

Question 60

Which of the following observations about branding is true?

A) No matter how hard advertisers try, brands do not develop personalities.
B) Brand image is unaffected by distribution intensity.
C) Brand building activities are limited in nature.
D) The legal name for brand is trademark.

Question 61

This is true of the different stages in the product life cycle.

A) Sales of a product is highest in the maturation stage.
B) Sales begin to increase in the continued expansion stage.
C) Profits are highest during the growth stage.
D) Profits are nonexistent in the decline stage.

Question 62

Identify a method of differentiating a relatively homogeneous product.

A) Using a corporate identity.
B) Using a line extension strategy.
C) Using a distinctive packaging.
D) Using a private label branding.

Question 63

Which of the following observations about marketing strategies used during various stages of the product life cycle is true?

A) Sales promotion is not used in the maturity stage.
B) Limited number of channels are used during the growth stage.
C) Communication is always high during the decline stage.
D) A defensive strategy is adopted during the maturity stage.

Question 64

Products that are equivalent to national brands but are priced much lower are called

A) premium brands.
B) value brands.
C) quality brands.
D) deluxe brands.

Question 65

All of the following statements relate to the life cycle of fashions except

A) this life cycle resembles the basic product life cycle but in a very compressed form.
B) it involves a distinctiveness stage in which trendsetters adopt a style.
C) the style becomes widely available at mass-market prices in the economic stage.
D) this life cycle is clearly visible in clothing, cosmetics, tattoos, and body piercing.

Question 66

Which of the following observations concerning the product life cycle is true?

A) Length of time a product will remain in each stage can be predicted with accuracy.
B) Marketers can forecast when one stage will end and another will begin.
C) Product life cycle should dictate strategy development.
D) Not all products go through the product life cycle in the same way.

Question 67

Identify the incorrect statement.

A) Organizational products along with consumer products can also possess brand equity.
B) Brand quality is viewed as the set of assets or liabilities linked to the brand that add or subtract value.
C) Successful extensions of an existing brand can lead to additional loyalty and associated profits.
D) Brand equity is determined by the company that manufactures and markets the product along with other variables.

Question 68

Who ultimately determines brand equity?

A) Advertisers
B) Employees
C) Consumers
D) Management

Question 69

According to the adopter categories, consumers who are first to purchase a product are known as

A) innovators.
B) early adopters.
C) laggards.
D) early majority.

Question 70

A standard 12-pack carton of soft drinks cannot fit conveniently on the standard-size refrigerator shelf, nor can drinks be efficiently dispensed from the carton. In 2002, Coca-Cola introduced a new design it calls the refrigerator pack. The refrigerator pack is designed to fit easily on a standard refrigerator shelf and dispense one can at a time. With its new refrigerator pack, Coke is

A) implementing a private branding strategy.
B) using packaging as a part of its product differentiation strategy.
C) using a brand extension strategy for market development.
D) implementing a consolidation strategy.

Question 71

The diffusion of innovation is

A) used to describe an audit task that is carried out at regular intervals.
B) described using five adopter categories.
C) the term used for the introductory stage of the life-cycle.
D) used to emphasize the effect of sales after the product has been introduced.

Question 72

This is the culmination of the consumer's assessment of the product, the company that manufactures and markets the product, and all other variables that impact on the product between manufacture and consumer consumption.

A) Quality
B) Brand equity
C) Value
D) Cash flow

Question 73

A current brand name is used to enter a completely different product class. This is an example of

A) brand extension.
B) line extension.
C) franchise extension.
D) multibranding.

Question 74

Which of the following statement about brand equity is true?

A) Brand equity is what the customer gets in exchange for what the customer gives.
B) Organizational products cannot have brand equity.
C) Brand equity is not impacted by advertising.
D) Brand equity is determined by the consumer.

Question 75

Why does a beer manufacturer like Heileman Distilleries produce Old Style, Colt 45, Lone Star, Rainier and Samuel Adams brand beers?

A) To minimize the importance of brand equity.
B) To enjoy the benefits associated with franchise extension.
C) To create a competitive advantage that is not easily imitated.
D) To target specific market segments more efficiently.

Question 76

All of the following are advantages of using multiple brand names except

A) the firm can distance products from other offerings it markets.
B) the image of one product is not associated with other products the company markets.
C) the products can be targeted at a specific market segment.
D) the probability of a product failure impacting on other company products is maximized.

Question 77

Victor Boudolf has developed a new product called The Insider. It offers fans attending baseball games instant replays from various camera angles so they can see if their favorite player was really out. Boudolf is hoping he can sell The Insider to venue owners who can rent them to fans attending a baseball game for $20. Since this product is in the introductory stage of its product life cycle, Boudolf's primary marketing objective should be to

A) build sales and market share for the product.
B) limit costs and persuasion strategies to highlight product.
C) establish a market for the product.
D) defend the brand's share of market.

Question 78

Brand equity is

A) the set of assets or liabilities linked to the brand that add or subtract value.
B) not the culmination of the consumer's assessment of the product.
C) the extension of an existing brand that can lead to additional profits.
D) not dependent upon the results of the marketplace's relationship with a brand.

Question 79

The firm can distance products from other offerings it markets. This is one of the advantages of using

A) dual brands.
B) multiple brands.
C) family branding.
D) associate branding.

Question 80

Arizona jeans, which is a store brand of J.C. Penney Company, is an example of a

A) national brand.
B) private label brand.
C) dual quality brand.
D) deluxe brand.