Deck 8: Products, Services, and Brands: Building Customer Value

Question 1

________ 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 1

B

Question 2

Product planners need to consider products and services on three levels. At the final 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 2

B

Question 3

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 3

E

Question 4

________ 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

Question 5

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

Question 6

________ are those products purchased for further processing or for use in conducting a business.

A) Unsought products
B) Specialty products
C) Shopping products
D) Industrial products
E) Convenience products

Question 7

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an example of a(n) ________.

A) convenience product
B) capital item
C) specialty product
D) service
E) product attribute

Question 8

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the ________, which addresses the question, "What is the buyer really buying?"

A) actual product
B) augmented product
C) core customer value
D) co-branding
E) exchange value

Question 9

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 ________ product.

A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive

Question 10

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.

Question 11

________ 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

Question 12

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

Question 13

Which of the following exemplifies a service?

A) candy
B) laptop
C) retail
D) car
E) laundry detergent

Question 14

________ 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

Question 15

Which of the following is an example of a convenience product?

A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator

Question 16

________ 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

Question 17

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

Question 18

________ are industrial products.

A) Capital items
B) Specialty products
C) Retail items
D) Shopping products
E) Convenience products

Question 19

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.

Question 20

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

Question 21

Refer to the scenario below to answer the following questions.
Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand on it.
Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts.
"We make an excellent product," Herb Marks stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool."
The Marks brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after.
Which type of product does Marks manufacture?

A) industrial
B) convenience
C) specialty
D) shopping
E) unsought

Question 22

Lubricants, coal, paper, and pencils are examples of ________.

A) operating supplies
B) capital items
C) raw materials
D) specialty products
E) installations

Question 23

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

Question 24

________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

A) Brand equity
B) Product quality
C) Product labeling
D) Brand image
E) Brand personality

Question 25

Refer to the scenario below to answer the following questions.
Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand on it.
Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts.
"We make an excellent product," Herb Marks stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool."
The Marks brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after.
An easier, more comfortable, more stylish transfer of thought onto paper refers to the ________ of Herb's offerings.

A) tangible element
B) core customer value
C) actual product
D) augmented product
E) service variability

Question 26

Refer to the scenario below to answer the following questions.
Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand on it.
Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts.
"We make an excellent product," Herb Marks stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool."
The Marks brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after.
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

Question 27

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

Question 28

________ 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

Question 29

Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________.

A) corporate image marketing
B) person marketing
C) organization marketing
D) internal marketing
E) place marketing

Question 30

Advertising campaigns involving issues ranging from health care, education, and environmental sustainability to human rights and personal safety can be classified under ________.

A) corporate image marketing
B) internal marketing
C) social marketing
D) place marketing
E) person marketing

Question 31

________ involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions.

A) Idea marketing
B) Place marketing
C) Organization marketing
D) Social marketing
E) Interactive marketing

Question 32

Refer to the scenario below to answer the following questions.
Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended.
Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand on it.
Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts.
"We make an excellent product," Herb Marks stated, "and we honor a good guarantee on everything we sell. But let's face it-we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool."
The Marks brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after.
The new felt-tip pens, multiple-cartridge pens, and quills are examples of ________.

A) product line filling
B) multibranding
C) megabranding
D) product line inconsistencies
E) co-branding

Question 33

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

Question 34

________ 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 marketing
B) Person marketing
C) Social marketing
D) Organization marketing
E) Place marketing

Question 35

________ 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

Question 36

The advertising slogan, "We bring good things to life," used by General Electrics to market themselves, is an example of ________ marketing.

A) person
B) corporate image
C) internal
D) place
E) niche

Question 37

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

Question 38

A company that uses well-known celebrities to help sell its products is using ________.

A) interactive marketing
B) internal marketing
C) social marketing
D) person marketing
E) organization marketing

Question 39

________ 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

Question 40

________ consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization.

A) Social networking
B) Organization marketing
C) Niche marketing
D) Puffery
E) Organizational learning

Question 41

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

Question 42

The major product line decision involve(s) ________, the number of items in the product line.

A) product features
B) product line depth
C) product line conformance
D) product line length
E) product packaging

Question 43

________ 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

Question 44

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

Question 45

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

Question 46

________ 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

Question 47

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

Question 48

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

Question 49

________ involves designing and producing the container or wrapper for a product.

A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling

Question 50

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?

Question 51

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

Question 52

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

Question 53

The first step in designing support services is to ________.

A) add new services that will both delight customers and yield profits to the company
B) closely observe the product and pricing strategies of consumers
C) survey customers to assess the value of current services and obtain ideas for new ones
D) prevent brand dilution
E) encourage customers to try new products

Question 54

________ 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

Question 55

Product mix ________ refers to the number of different product lines the company carries.

A) length
B) height
C) width
D) consistency
E) depth

Question 56

The ________ requires sellers to provide detailed nutritional information on food products.

A) Sherman Antitrust Act
B) Nutritional Labeling and Educational Act of 1990
C) Glass-Steagall Act
D) Commodity Futures Modernization Act of 2000
E) Federal Trade Commission Act of 1914

Question 57

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

Question 58

Style simply describes the ________ of a product.

A) quality
B) appearance
C) utility
D) durability
E) long-term benefits

Question 59

________ contribute(s) to a product's usefulness as well as to its looks.

A) Sensational style
B) Good design
C) Trait
D) Consistency
E) Multiple features

Question 60

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

Question 61

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. This has helped Apollo in winning customer loyalty to a great extent. In this instance, Apollo has benefitted from ________.

A) product differentiation
B) good service recovery
C) multibranding
D) place marketing
E) co-branding

Question 62

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

Question 63

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

Question 64

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 variability
D) service perishability
E) service distinction

Question 65

________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.

A) Service inseparability
B) Service variability
C) Service intangibility
D) Service perishability
E) Service heterogeneity

Question 66

________ refers to how consumers feel if a brand meets their needs.

A) Brand differentiation
B) Brand equity
C) Brand dilution
D) Brand esteem
E) Brand relevance

Question 67

________ means that services cannot be stored for later sale or use.

A) Service consistency
B) Service perishability
C) Service variability
D) Service intangibility
E) Service inseparability

Question 68

A reputed 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

Question 69

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

Question 70

________ represent(s) consumers' perceptions and feelings about a product and its performance.

A) Product lines
B) Labeling
C) Brands
D) Design
E) Product attributes

Question 71

According to the service profit chain, superior internal service quality results in ________.

A) lesser service value
B) increased word-of-mouth sales
C) reduced after-sale services
D) more satisfied, loyal, and hardworking employees
E) negative brand equity of newly launched products

Question 72

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

Question 73

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 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

Question 74

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

Question 75

Blue Fin 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

Question 76

Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength?

A) brand conformance
B) brand consistency
C) brand convenience
D) brand extension
E) brand relevance

Question 77

________ means that the quality of services depends on who provides them as well as when, where, and how they are provided.

A) Service intangibility
B) Service inseparability
C) Service variability
D) Service perishability
E) Service heterogeneity

Question 78

________ is the differential effect that knowing the brand name has on customer response to the product and its marketing.

A) Brand differentiation
B) Brand knowledge
C) Brand equity
D) Brand personality
E) Brand relevance

Question 79

Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

A) service inseparability
B) social marketing
C) service variability
D) internal marketing
E) corporate image marketing

Question 80

________ means that service quality depends on the quality of buyer-seller interaction during the service encounter.

A) Interactive marketing
B) Service differentiation
C) Service productivity
D) Corporate image marketing
E) Traditional external marketing