Question 1

What are the key guidelines for managing luxury brands?

Accepted Answer

• Maintaining a premium image for luxury brands is crucial; controlling that image is thus a priority.
• Luxury branding typically includes the creation of many intangible brand associations and an aspirational image.
• All aspects of the marketing program for luxury brands must be aligned to ensure high-quality products and services and pleasurable purchase and consumption experiences.
• Besides brand names, other brand elements - logos, symbols, packaging, signage - can be important drivers of brand equity for luxury products.
• Secondary associations from linked personalities, events, countries, and other entities can boost luxury-brand equity as well.
• Luxury brands must carefully control distribution via a selective channel strategy.
• Luxury brands must employ a premium pricing strategy, with strong quality cues and few discounts and markdowns.
• Brand architecture for luxury brands must be managed carefully.
• Competition for luxury brands must be defined broadly because it often comes from other categories.
• Luxury brands must legally protect all trademarks and aggressively combat counterfeits.

Question 2

In your position as a marketing manager for a small industrial company, you have been asked by the president to help differentiate the company's product from its competitors. In reviewing your marketing management notes, you note that the text stated that physical products could be differentiated in nine ways. These nine areas comprise the "meat" of the memo you are writing to the president of your firm. What are the nine ways that physical products can be differentiated?

Accepted Answer

The nine ways that physical products can be differentiated are form, features, customization, performance quality, conformance quality, durability, reliability, reparability, and style.

Question 3

Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use.

Accepted Answer

A)   availability
B)   affordability
C)   aesthetics
D)   durability
E)   necessity D

Question 4

The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved.

Accepted Answer

A)   branding synergy
B)   increased advertising dollars
C)   multiple brands
D)   bundled package
E)   pure bundling

Question 5

Buyers expect products to have high ________, which is the degree to which all produced units are identical and meet promised specifications.

Accepted Answer

A)   durability
B)   compatibility
C)   conformance quality
D)   form
E)   performance quality

Question 6

Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing": one price for the disposable products and another for the "hardware."

Accepted Answer

A) True 
 B)False

Question 7

A manufacturer is contemplating introducing a product that is inferior to its competition in its performance, design, and functionality. However, the manufacturer believes that "good brand marketing" can overcome these shortfalls. Why is this thinking incorrect?

Accepted Answer

The answer of A manufacturer is contemplating introducing a product...

Question 8

In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements.

Accepted Answer

A)   Conformance
B)   Design
C)   Performance
D)   Reliability
E)   Style

Question 9

Supplies can be classified as two kinds: heterogeneous supplies and homogeneous supplies.

Accepted Answer

A) True 
 B)False

Question 10

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item. What are some of the requirements for succeeding in ingredient branding?

Accepted Answer

The answer of As the marketing manager for your firm,...

Question 11

Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix.

Accepted Answer

A)   is ineffective on total
B)   has no effect on total
C)   maximizes
D)   minimizes
E)   capitalizes upon

Question 12

Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its relentless focus on making beautiful and intuitive products that will be integrated into customers' lifestyles.

Accepted Answer

A) True 
 B)False

Question 13

What types of goods are purchased frequently, immediately, and with minimum effort by the consumers?

Accepted Answer

A)   specialty goods
B)   shopping goods
C)   unsought goods
D)   durable goods
E)   convenience goods

Question 14

Line filling, if overdone, may result in self-cannibalization and increased customer loyalty.

Accepted Answer

A) True 
 B)False

Question 15

A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________.

Accepted Answer

A)   performance
B)   utility
C)   tangibility
D)   price
E)   availability

Question 16

When shopping for tires for your automobile, you notice that the manufacturer you have selected has tires for your car priced low, average, and high, based upon performance and features. This is an example of what type of product-mix pricing?

Accepted Answer

A)   two-part pricing
B)   product-line pricing
C)   captive product pricing
D)   market pricing skimming
E)   price discrimination

Question 17

If line filling is overdone, it could result in ________ and customer confusion.

Accepted Answer

A)   sales paralysis
B)   manufacturing inefficiencies
C)   cannibalization
D)   disintermediation
E)   ineffective management

Question 18

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market.

Accepted Answer

A)   down-market stretch
B)   up-market stretch
C)   two-way stretch
D)   marketing research
E)   disintermediation

Question 19

Colleges all over the country - from Western Washington University to Brown University, the University of Vermont, and the University of California at Berkeley - are encouraging the sale of plain bottled water.

Accepted Answer

A) True 
 B)False

Question 20

Describe the six main service differentiators.

Accepted Answer

The answer of Describe the six main service differentiators....

Exam 13: Setting Product Strategy

What are the key guidelines for managing luxury brands?

Marketers have traditionally classified products on the basis of three characteristics: ________, tangibility, and use.

The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved.

Buyers expect products to have high ________, which is the degree to which all produced units are identical and meet promised specifications.

Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing": one price for the disposable products and another for the "hardware."

A manufacturer is contemplating introducing a product that is inferior to its competition in its performance, design, and functionality. However, the manufacturer believes that "good brand marketing" can overcome these shortfalls. Why is this thinking incorrect?

In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements.

Supplies can be classified as two kinds: heterogeneous supplies and homogeneous supplies.

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item. What are some of the requirements for succeeding in ingredient branding?

Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix.

Apple has a clear design philosophy it calls "Design 3.0" and an internal design slogan, "Make it Meaningful," that reflects its relentless focus on making beautiful and intuitive products that will be integrated into customers' lifestyles.

What types of goods are purchased frequently, immediately, and with minimum effort by the consumers?

Line filling, if overdone, may result in self-cannibalization and increased customer loyalty.

A customer judges a product offering by three basic elements: product features and quality, services mix and quality, and ________.

When shopping for tires for your automobile, you notice that the manufacturer you have selected has tires for your car priced low, average, and high, based upon performance and features. This is an example of what type of product-mix pricing?

If line filling is overdone, it could result in ________ and customer confusion.

Colleges all over the country - from Western Washington University to Brown University, the University of Vermont, and the University of California at Berkeley - are encouraging the sale of plain bottled water.

Describe the six main service differentiators.