Chapter 7
Product, Services, and Branding Strategy
GENERAL CONTENT: Multiple-Choice Questions
1. We define a _____ as anything that can be offered to a market for attention,
acquisition, use, or consumption and that might satisfy a want or need.
a. private brand
b. service variability
c. service
d. product
e. service encounter
(Answer: d; p. 199; Easy)
2. _____ 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. Line extensions
b. Services
c. Brands
d. Consumer products
e. Supplements
(Answer: b; p. 199; Easy)
3. Product is a key element in _____. At one extreme, it may consist of pure tangible
goods or at the other extreme, pure services.
a. market offering
b. brand equity
c. brand extension
d. co-branding
e. the value chain
(Answer: a; p. 199; Easy)
4. Many companies are moving to a new level in creating value for their customers.
They are developing and delivering total customer experiences. Whereas products are
tangible and services are intangible, experiences are _____.
a. product quality
b. memorable
c. unsought product
d. internal marketing
e. service encounters
(Answer: b; p. 199; Moderate)
192
5. Product planners need to think about 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 benefit
d. co-branding
e. exchange
(Answer: c; p. 200; Challenging)
6. Product planners need to think about products and services on three levels. The third
level is that the product planners must build on a(n) _____ around the core benefit
and actual product by offering additional consumer services and benefits.
a. augmented product
b. brand equity
c. brand extension
d. industrial product
e. image
(Answer: a; p. 200; Challenging)
7. Product planners must design the actual product and find ways to _____ it in order to
create the bundle of benefits that will provide the most satisfying customer
experience.
a. core benefit
b. package
c. brand
d. augment
e. present
(Answer: d; p. 200; Challenging)
8. Products and services fall into two broad classes based on the types of consumers that
use them. Which is one of these broad classes?
a. Industrial products.
b. Brand equity.
c. Co-branding.
d. Brand extension.
e. Cohesive.
(Answer: a; p. 200; Moderate)
193
9. _____ are products and services bought by final consumers for personal consumption.
These include convenience products, shopping products, specialty products, and
unsought products.
a. Services
b. Consumer products
c. Line extensions
d. Industrial products
e. Straight extensions
(Answer: b; pp. 200–201; Easy)
10. _____ are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style. Consumers spend much
time and effort in gathering information and making comparisons.
a. Shopping products
b. Brands
c. Services
d. Industrial products
e. Line extensions
(Answer: a; p. 201; Moderate)
11. _____ 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. Industrial products
e. Line extensions
(Answer: c; p. 201; Moderate)
12. _____ are consumer products that the consumer either does not know about or knows
about but does not normally think about buying. These products require a lot of
advertising, personal selling, and other marketing efforts.
a. Specialty products
b. Line extensions
c. Unsought products
d. Shopping products
e. Staples
(Answer: c; p. 202; Easy)
194
13. _____ 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. Accessories
(Answer: d; p. 202; Easy)
14. The three groups of industrial products and services include all of the following
except _____.
a. materials and parts
b. capital items
c. maintenance and operations
d. supplies and services
e. B and D
(Answer: c; p. 202; Moderate)
15. Most manufactured materials and parts are sold directly to _____. Price and service
are the major marketing factors; branding and advertising tend to be less important.
a. consumers
b. industrial users
c. brand extensions
d. co-branders
e. wholesalers
(Answer: b; p. 202; Challenging)
16. _____ are industrial products that aid in the buyer’s production or operations,
including installations and accessory equipment.
a. Materials
b. Parts
c. Capital items
d. Specialty items
e. Supplies
(Answer: c; p. 202; Moderate)
17. _____ consists of activities undertaken to create, maintain, or change the attitudes and
behavior of target consumers toward an organization.
a. Person marketing
b. Organization marketing
c. Internal marketing
d. Service variability
e. Intelligence marketing
(Answer: b; p. 202; Challenging)
195
18. _____ consists of activities undertaken to create, maintain, or change attitudes or
behavior toward particular people.
a. Corporate image advertising
b. Organization marketing
c. Person marketing
d. Social marketing
e. Intermarket marketing
(Answer: c; p. 202; Moderate)
19. _____ involves activities undertaken to create, maintain, or change attitudes toward
particular cities, states, and regions. Texas advertises “It’s like a whole other
country.”
a. Idea marketing
b. Place marketing
c. Social marketing
d. Interactive marketing
e. Regional marketing
(Answer: b; p. 203; Easy)
20. _____ is defined as the use of commercial marketing concepts and tools in programs
designed to influence individuals’ behavior to improve their well-being and that of
society.
a. Unsought product
b. Internal marketing
c. Social marketing
d. Product line
e. Interactive marketing
(Answer: c; p. 203; Easy)
21. Marketing efforts, which include public health campaigns to reduce smoking,
alcoholism, drug abuse, and overeating are called _____.
a. specialty products
b. social marketing
c. shopping products
d. consumer products
e. responsibility marketing
(Answer: b; p. 204; Moderate)
196
22. The Ad Council of America has developed dozens of _____ advertising campaigns,
including classics such as “Smokey the Bear,” “Keep America Beautiful,” and “Only
You Can Prevent Forest Fires.”
a. social
b. brand equity
c. service
d. product line
e. extensive
(Answer: a; p. 204; Moderate)
23. Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by _____ such as quality, features, and style
and design.
a. private brands
b. product attributes
c. consumer products
d. product mixes
e. none of the above
(Answer: b; p. 206; Challenging)
24. _____ is one of the marketer’s major positioning tools. It has a direct impact on
product or service performance; thus, it is closely linked to customer value and
satisfaction.
a. Packaging
b. Product quality
c. Social marketing
d. Specialty marketing
e. Position marketing
(Answer: b; p. 206; Easy)
25. _____ is an approach in which all the company’s people are involved in constantly
improving the products, services, and business processes.
a. Product quality
b. Brand equity
c. Total quality management
d. Specialty product
e. Positioning
(Answer: c; p. 206; Easy)
197
26. Beyond quality level, high quality also can mean high levels of quality consistency.
Here, product quality means _____—freedom from defects and consistency in
delivering a targeted level of performance.
a. private brand
b. product quality
c. total quality management
d. conformance quality
e. adherence quality
(Answer: d; p. 206; Challenging)
27. A product can be offered with varying _____. A stripped-down model, one without
any extras, is the starting point.
a. co-branding
b. features
c. product quality
d. service variability
e. extensions
(Answer: b; p. 206; Easy)
28. The company periodically surveys buyers who have used a product and asks
questions such as, “Which specific features of the product do you like the most?” The
company can then assess each feature’s _____ to customers versus its _____ to the
company.
a. cost; line extension
b. cost; service
c. value; cost
d. service; line extension
e. equity; cost
(Answer: c; p. 207; Challenging)
29. A sensational _____ may grab attention and produce pleasing aesthetics, but it does
not necessarily make the product perform better.
a. design
b. style
c. variable
d. service-profit chain
e. package
(Answer: b; p. 207; Moderate)
198
30. _____ is more than skin deep—it goes to the very heart of the product. It contributes
to a product’s usefulness as well as to its looks.
a. Style
b. Design
c. Package
d. Brand
e. Functionality
(Answer: b; p. 207; Easy)
31. Good style and design can do many things. What is one thing it cannot do?
a. Attract attention.
b. Improve product performance.
c. Cut production costs.
d. Cause unsought product reputation.
e. B and C
(Answer: d; p. 207; Easy)
32. A(n) _____ is a name, term, sign, symbol, design, or a combination of these, that
identifies that maker or seller of a product or service.
a. service
b. brand
c. co-branding
d. internal marketing
e. external marketing
(Answer: b; p. 208; Easy)
33. _____ involves designing and producing the container or wrapper for a product.
a. Packaging
b. Product line
c. Service
d. Branding
e. Labeling
(Answer: a; p. 209; Easy)
34. Like New Products wants to improve its packaging after reading customer responses
to its customer opinion poll. Which is not a function of packaging?
a. It contains and protects the product.
b. It contains the brand mark.
c. It protects children.
d. It determines product quality.
e. It may contain the brand symbol.
(Answer: d; p. 209; Moderate)
199
35. At the very least, the _____ identifies the product or brand. It might also describe
several things about the product.
a. line extension
b. social marketing
c. label
d. specialty product
e. A or B
(Answer: c; p. 210; Easy)
36. Labels may mislead customers, fail to describe important ingredients, or fail to
include needed safety warnings. As a result, several federal and state laws regulate
labeling. The most prominent is the _____.
a. Co-branding Act of 1972
b. Labeling Act of 1970
c. Packaging Act of 1968
d. Fair Packaging and Labeling Act of 1966
e. Fair Labor Standards Act of 1938
(Answer: d; p. 210; Easy)
37. The _____ requires sellers to provide detailed nutritional information on food
products.
a. Fair Packaging and Labeling Act of 1966
b. Nutritional Labeling and Educational Act of 1990
c. Labeling Act of 1970
d. Packaging Act of 1970
e. Norris-LaGuardia Act of 1932
(Answer: b; p. 210; Moderate)
38. Customer service is another element of product strategy. The first step is to survey
customers periodically to assess the value of current services and to obtain ideas for
new ones. From this careful monitoring, Cadillac has learned that buyers are very
upset by repairs that are not done correctly the first time. What is the name of these
types of services?
a. Brand equity services.
b. Product support services.
c. Social marketing services.
d. Unsought product services.
e. Customer service.
(Answer: b; p. 210; Challenging)
200
39. 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. convenience product
e. product bandwidth
(Answer: a; p. 211; Moderate)
40. Berkowitz Piano Company can lengthen its product line in one of two common ways.
Which is one of these ways that might prove productive?
a. Internal marketing.
b. Line filling.
c. Product mix.
d. Social marketing.
e. None of the above.
(Answer: b; p. 212; Easy)
41. An alternative to product line stretching is _____—adding more items within the
present range of the line. There are several reasons for doing this; some are to reach
for extra points, satisfy dealers, use excess capacity, and to plug holes to keep out
competitors.
a. product mix
b. interactive marketing
c. product line filling
d. co-branding
e. service marketing
(Answer: c; p. 213; Easy)
42. An organization with several product lines has a _____. This consists of all the
product lines and items that a particular seller offers for sale.
a. product mix
b. brand line
c. consumer mix
d. packaging mix
e. line extension
(Answer: a; p. 213; Moderate)
201
43. Product mix _____ refers to the number of different product lines the company
carries. Procter & Gamble markets 250 brands organized into many product lines.
a. length
b. height
c. width
d. perimeter
e. depth
(Answer: c; p. 213; Moderate)
44. Product line _____ refers to the number of versions offered of each product in the
line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest
Baking Soda formulations.
a. length
b. depth
c. height
d. width
e. perimeter
(Answer: b; p. 213; Challenging)
45. 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. depth
b. length
c. width
d. consistency
e. perimeter
(Answer: d; p. 213; Moderate)
46. A company can increase its business in four ways. Which is not one of these ways?
a. It can add new product lines, thus widening its product mix.
b. It can lengthen its existing product lines.
c. It can add more versions of each product and thus deepen its product mix.
d. The company can discontinue some of its lines.
e. None of the above.
(Answer: d; p. 213; Easy)
47. Some analysts see _____ as the major enduring asset of a company, outlasting the
company’s specific products and facilities.
a. brands
b. convenience products
c. specialty products
d. unsought products
e. staples
(Answer: a; p. 214; Easy)
202
48. The fundamental asset underlying brand equity is _____—the value of the customer
relationships that the brand creates. A powerful brand is important, but what it really
represents is a set of loyal consumers.
a. customer mix
b. customer equity
c. line equity
d. service variability
e. the service encounter
(Answer: b; p. 215; Challenging)
49. Marketers need to position their brands clearly in target customers’ minds. They can
position brands at any of three levels. At the lowest level, they can position the brand
on _____.
a. interactive marketing
b. internal marketing
c. product attributes
d. strong beliefs and values
e. added service
(Answer: c; p. 215; Moderate)
50. Marketers need to position their brands clearly in target customers’ minds. The
strongest brands go beyond attributes or benefit positioning. They are positioned on
_____.
a. desirable benefit
b. good packaging
c. service inseparability
d. strong beliefs and values
e. customer image
(Answer: d; p. 215; Easy)
51. Desirable qualities for a brand name include all of the following except _____.
a. It should suggest something about the product’s benefits and qualities.
b. It should be easy to pronounce, recognize, and remember.
c. The brand should almost always be a long word to get attention.
d. The name should translate easily into foreign languages.
e. B and D
(Answer: c; p. 217; Challenging)
203
52. Manufacturers’ brands have long dominated the retail scene. In recent times,
however, an increasing number of retailers and wholesalers have created their own
_____ (or store brands).
a. slotting fees
b. private brands
c. specialty products
d. service variability
e. none of the above
(Answer: b; p. 218; Easy)
53. In the so-called battle of the brands between manufacturers’ and private brands,
_____ have many advantages. They control what products they stock, where they go
on the shelf, and which ones they will feature in local circulars.
a. unsought products
b. convenience products
c. specialty products
d. retailers
e. shopping products
(Answer: d; p. 218; Moderate)
54. Most retailers also charge manufacturers _____—payments demanded by retailers
before they will accept new products and find a place for them on the shelves.
a. slotting fees
b. private fees
c. line extension fees
d. product line fees
e. distribution charges
(Answer: a; p. 219; Easy)
55. Most manufacturers take years and spend millions to create their own brand names.
However, some companies _____ names or symbols previously created by other
manufacturers, names of well-known celebrities, and/or characters from popular
movies and books. For a fee, any of these can provide an instant and proven brand
name.
a. service
b. license
c. market
d. package
e. steal
(Answer: b; p. 219; Moderate)
204
56. _____ occurs when two established brand names of different companies are used on
the same product.
a. Brand extension
b. Brand equity
c. Co-branding
d. Internal marketing
e. Cannibalization
(Answer: c; p. 220; Moderate)
57. In most _____ situations, one company licenses another company’s well-known
brand to use in combination with its own.
a. brand extension
b. brand equity
c. co-branding
d. internal marketing
e. line extension
(Answer: c; p. 220; Easy)
58. As one Nabisco manager puts it, “Giving away your brand is a lot liking giving away
your _____—you want to make sure everything is perfect.”
a. package
b. product line
c. child
d. product quality
e. company image
(Answer: c; p. 220; Easy)
59. A company has four choices when it comes to developing brands. Which is not one of
those choices?
a. Line extension.
b. Brand extension.
c. Multibrands.
d. Width and depth extension.
e. B and C
(Answer: d; p. 220; Challenging)
60. _____ occur(s) when a company introduces additional items in a given product
category under the same brand name, such as new flavors, forms, colors, ingredients,
or package sizes.
a. Line extensions
b. Product mix
c. Interactive marketing
d. Service variability
e. Service intangibility
(Answer: a; p. 221; Moderate)
205
61. One risk of _____ is that sales may come at the expense of other items in the line. It
works best when it takes sales away from competing brands, not when it
“cannibalizes” the company’s other items.
a. brand extension
b. line extension
c. packaging
d. social marketing
e. Internet marketing
(Answer: b; p. 221; Moderate)
62. A _____ involves the use of a successful brand name to launch new or modified
products in a new category.
a. brand equity
b. product line
c. brand extension
d. private brand
e. brand symbol
(Answer: c; p. 221; Moderate)
63. _____ offer(s) a way to establish different features and appeal to different buying
motives. It also allows a company to lock up more reseller shelf space. Or the
company may want to protect its major brand by setting up flanker brands.
a. New brands
b. Interactive marketing
c. Product quality
d. Multibrands
e. Differentiation
(Answer: d; p. 222; Challenging)
64. Retailers have become concerned that there are already too many brands, with too
few differences between them. Thus, Procter & Gamble and other large consumerproduct marketers are now pursuing _____ strategies—weeding out weaker brands
and focusing their marketing dollars only on brands that can achieve the number-one
or number-two market share positions in their categories.
a. megabrand
b. service inseparability
c. social marketing
d. unsought product
e. undifferentiated
(Answer: a; p. 222; Moderate)
206
65. Companies must carefully manage their brands. First, the brand’s positioning must be
continuously communicated to consumers. Major brand marketers often spend huge
amounts on advertising to create brand _____ and to build preference and loyalty.
a. extension
b. awareness
c. packaging
d. internal marketing
e. preference
(Answer: b; p. 222; Easy)
66. Advertising campaigns can help to create name recognition, brand knowledge, and
maybe even some brand preference. However, the fact is that brands are not
maintained by advertising but by the _____.
a. marketing experience
b. line extensions
c. brand experience
d. product mix
e. word-of-mouth elements
(Answer: c; p. 222; Easy)
67. The brand’s positioning will not take hold fully unless everyone in the company lives
the brand. Therefore the company needs to train its people to be _____.
a. customer centered
b. specialty centered
c. convenience centered
d. line-extension centered
e. loyal
(Answer: a; p. 222; Moderate)
68. The brand’s positioning will not take hold fully unless everyone in the company lives
the brand. This suggests that managing a company’s brand assets can no longer be
left only to _____.
a. product line
b. product mix
c. brand extension
d. brand managers
e. marketing managers
(Answer: d; p. 223; Easy)
207
69. Canada Dry and Colgate-Palmolive have appointed _____ managers to maintain and
protect their brand’s images, associations, and quality, and to prevent short-term
actions by overeager brand managers from hurting the brand.
a. product line
b. service
c. brand equity
d. brand extension
e. marketing
(Answer: c; p. 223; Moderate)
70. Building a(n) _____ and re-educating customers can be a huge undertaking for a
company. It cost tens of millions of dollars just for a special four-week advertising
campaign to announce the new name, followed by considerable ongoing advertising
expenses to the Verizon Company.
a. product mix
b. service intangibility
c. new image
d. internal market
e. level of customer loyalty
(Answer: c; p. 222; Easy)
71. A company must consider four special service characteristics when designing
marketing programs. Which is not one of these characteristics?
a. Intangibility.
b. Inseparability.
c. Perishability.
d. Interactive marketing.
e. B and C
(Answer: d; p. 223; Challenging)
72. _____ 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
(Answer: c; p. 223; Moderate)
208
73. _____ means that services cannot be separated from their providers, whether the
providers are people or machines.
a. Service intangibility
b. Service inseparability
c. Service variability
d. Service perishability
e. Service heterogeneity
(Answer: b; p. 224; Moderate)
74. In a product business, products are fairly standardized and can sit on shelves waiting
for customers. But in a service business, front-line service employees and the support
processes backing these employees participate in _____.
a. interaction
b. co-branding
c. industrial marketing
d. internal marketing
e. external marketing
(Answer: a; p. 224; Challenging)
75. _____ means that the service firm must effectively train and motivate its customercontact employees and supporting service people to work as a team to provide
customer satisfaction.
a. Service inseparability
b. Service intangibility
c. Service variability
d. Internal marketing
e. External marketing
(Answer: d; p. 226; Moderate)
True/False
76. We define a service as anything that can be offered to a market for attention,
acquisition, use, or consumption and that might satisfy a want or need.
(False; p. 199; Easy)
77. Co-branding is 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. Examples are banking, hotel, airline, retail, tax preparation, and home
repair.
(False; p. 220; Moderate)
78. Sony must offer more than just a camcorder. It must provide consumers with a
complete solution to their picture-taking problems. This is called an augmented
product.
(True; p. 200; Challenging)
209
79. Unsought products are products and services that the customer usually buys
frequently, immediately, and with a minimum of comparison and buying effort.
(False; p. 202; Easy)
80. Shopping products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style.
(True; p. 201; Moderate)
81. Programs that include public health campaigns to reduce smoking, alcoholism, drug
abuse, and overeating are examples of the social idea known as social marketing.
(True; p. 204; Easy)
82. Style is a larger concept than design. Design describes the appearance of a product.
(False; p. 207; Moderate)
83. The brand of a product can determine its consumer value.
(True; p. 208; Moderate)
84. Packaging does not include the material necessary to ship a product.
(False; p. 209; Easy)
85. Product support services identify the product or brand, describe several things about
the product, and promote the product through attractive graphics.
(False; p. 211; Moderate)
86. Quaker produces a variety of cereals. This variety is called its product line.
(True; p. 211; Moderate)
87. A company’s product mix has four important dimensions: width, length, depth, and
consistency.
(True; p. 213; Easy)
88. Dove marketers can go beyond the brand’s cleansing cream attributes and talk about
the resulting benefit of softer skin. This is known as product attributes in brand
positioning.
(False; p. 215; Challenging)
89. One important quality for a brand name is that it should translate easily into foreign
languages.
(True; p. 217; Easy)
90. An increasing number of retailers and wholesalers have created their own brands—
such as Wal-Mart offering Sam’s Choice beverages and food products. This is called
co-branding.
(False; p. 218; Challenging)
210
91. When a company introduces a new brand name in the same product category, it is
called line extension.
(False; p. 221; Challenging)
92. Customers come to know a brand through a wide range of contacts and touch points.
These include word of mouth, personal interactions with company people, telephone
interactions, and company Web pages. Many brands are not maintained by
advertising but by brand experience.
(True; p. 222; Easy)
93. An example of service variability is that within a given Marriott hotel, one
registration-desk employee may be cheerful and efficient, whereas another may be
unpleasant and slow.
(True; p. 224; Challenging)
94. Service inseparability means that the quality of services depends on who provides
them, as well as when, where, and how they are provided.
(False; p. 224; Challenging)
95. In a product business, products are fairly standardized and can sit on shelves waiting
for customers. In a service business, the customer and front-line service employee
interact to create the service.
(True; p. 225; Easy)
96. The service-profit chain means the set of all product lines and items that a particular
seller offers for sale.
(False; p. 225; Challenging)
97. An aspect of managing service differentiation is in the company’s service delivery.
(True; p. 228; Moderate)
98. Customer retention is perhaps the best measure of quality—a service firm’s ability to
hang on to its customers depends on how consistently it delivers value to them.
(True; p. 229; Easy)
99. Managing service productivity can take place when a company increases the quality
of its service by giving up some of its output.
(True; p. 229; Moderate)
100. The government cannot prevent companies from adding products through
acquisitions if the effect threatens to lessen competition.
(False; p. 230; Moderate)
101. Internal marketers face special challenges. They must figure out what products to
introduce to other countries.
(False; p. 226; Moderate)
211
102. In international product and service marketing, it is important to know what different
colors mean to different countries.
(True; p. 231; Easy)
103. In international product and service marketing, many banks were afraid to go global
and held off for quite a while.
(False; p. 231; Moderate)
104. Retailers such as Wal-Mart, Kmart, Toys “R” Us, Office Depot, and Disney are
among the first businesses to go global.
(False; p. 231; Challenging)
105. Service companies wanting to operate in other countries are usually welcomed with
open arms. Manufacturers usually face restrictions when attempting to sell their
products in other countries.
(False; p. 231; Challenging)
Essay
106. Products and services fall into two broad classes based on the types of consumers that
use them. Name these two broad classes and describe how they are different from
each other.
Consumer products—those bought by final consumers—are usually classified
according to consumer shopping habits. Industrial products—purchased for further
processing or for use in conducting a business—include materials and parts.
(p. 201; Moderate)
107. Name and describe three decisions that companies make regarding their individual
products and services, product lines, and product mixes.
Product attribute decisions involve product quality, features, and style and design.
Branding decisions include selecting a brand name and developing a brand strategy.
Packaging provides many key benefits, such as protection, economy, convenience,
and promotion. There are additional answers to this question also.
(p. 205; Easy)
108. A manufacturer has four brand sponsorship options. Describe what they are.
It can launch a manufacturer’s brand. It can sell to resellers who use a private brand.
It can market licensed brands. It can join forces with another company to co-brand a
product.
(p. 218; Challenging)
212
109. A company has four choices when it comes to developing brands. Describe what they
are.
The company can introduce line extensions; it can introduce brand extension; it can
introduce multibrands; and it can begin new brands.
(p. 220; Moderate)
110. Services are characterized by four key characteristics. Name and describe these four
characteristics.
Intangible: they cannot be seen, tasted, felt, heard, or smelled before they are bought.
Inseparable: they are produced and consumed at the same time and cannot be
separated from their providers, whether the providers are people or machines.
Variable: their quality may vary greatly, depending on who provides them and when,
where, and how they are provided. Perishable: they cannot be stored for later sale or
use.
(p. 223; Challenging)
111. Good service companies focus attention on both customers and employees. Describe
what the service-profit chain and internal marketing are, and how they differ from
each other.
The service-profit chain links service firm profits with employee and customer
satisfaction. Internal marketing by a service firm refers to training and effectively
motivating its customer-contact employees and all the supporting service people to
work as a team to provide customer satisfaction. The first deals with employees and
customers. The second deals with training employees.
(p. 225; Challenging)
112. Describe two special challenges that international marketers must consider to be
successful in marketing to other countries.
First, they must figure out what products and services to introduce and in which
countries. Then, they must decide how much to standardize or adapt their products
and services for world markets.
(p. 230; Challenging)
113. Describe the role of packaging.
Packaging involves designing and producing the container or wrapper for a product.
Packaging contains and protects the product, but it also is used to attract customer
attention, to describe the product, and to make the sale.
(p. 209; Easy)
213
114. Explain the history of legal concerns about packaging and labels.
The Federal Trade Commission Act of 1914 held that false, misleading, or deceptive
labels or packages constitute unfair competition. Labels can mislead consumers, fail
to describe important ingredients, or fail to include needed safety warnings. As a
result, several federal and state laws regulate labeling. The Fair Packaging and
Labeling Act of 1966, for example, set mandatory labeling requirements, encouraged
volunteer industry packaging standards, and allowed federal agencies to set
packaging regulations in specific industries. The Nutritional Labeling and Education
Act of 1990 requires sellers to provide detailed nutritional information on food
products; the Food and Drug Administration regulates the use of health-related terms
such as low-fat, light, and high-fiber.
(p. 210; Challenging)
115. Explain product mix width, length, consistency, and depth.
Product mix width refers to the number of different product lines the company
carries; whereas, product length refers to the total number of products carried in a
company’s product lines. Consistency refers to how closely related the various
product lines are in end use. Product depth refers to the number of versions offered of
each product in the line.
(p. 213; Easy)
APPLICATION CONTENT: Multiple-Choice Questions
116. One of the three groups of industrial products includes materials and parts. Which is
not one of the material parts?
a. Farm products such as wheat.
b. Natural products such as iron ore.
c. Nonraw materials.
d. Petroleum.
e. B and D
(Answer: c; p. 202; Easy)
117. Which of the following capital items is not considered an accessory part of
equipment? The finance department needs to know so they can be classified correctly.
a. Buildings.
b. Hand tools.
c. Lift trucks.
d. Desks.
e. Chairs.
(Answer: a; p. 202; Moderate)
214
118. Paper, pencils, lubricants, paint, nails, and brooms are examples of _____.
a. supplies
b. capitals
c. raw materials
d. specialty products
e. installations
(Answer: a; p. 202; Easy)
119. What is a major tool companies use to market themselves to various publics—such as
General Electric states, “We bring good things to life”?
a. Personal marketing.
b. Corporate image marketing.
c. Product quality.
d. Product line.
e. Reminder ads.
(Answer: b; p. 202; Challenging)
120. _____ can also be marketed. In one sense, all marketing is the marketing of this. It
can be specific, such as Crest toothpaste’s “create smiles every day.”
a. Co-branding
b. Internal marketing
c. Ideas
d. Unsought products
e. Marketing intelligence
(Answer: c; p. 203; Moderate)
121. You have just read an article on the latest research about product quality. You want to
tell your supervisor that product quality has two dimensions. What is one of these
dimensions?
a. Consistency.
b. Brand.
c. Convenience product.
d. Specialty product.
e. Image.
(Answer: a; p. 213; Easy)
122. Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna even
though the Kroger tuna costs $0.15 less per can. This is known as brand _____.
a. extension
b. equity
c. specialty
d. service
e. switching
(Answer: b; p. 214; Moderate)
215
123. An apparel marketer is planning to launch an existing brand name into a new product
category. Which brand development strategy is being implemented?
a. Line extension.
b. Brand extension.
c. Multibrands.
d. New brands.
e. Rebranding.
(Answer: b; p. 221; Easy)
124. JB Auto Detailing’s customers have noticed that the quality of services depends on
who provides them as well as when, where, and how they are provided. What have
the customers noticed?
a. Service intangibility.
b. Service inseparability.
c. Service variability.
d. Service perishability.
e. Service distinction.
(Answer: c; p. 224; Moderate)
125. Because a barber cannot inventory haircuts, which one of the following applies?
a. Service intangibility.
b. Service inseparability.
c. Service variability.
d. Service perishability.
e. Low-context services.
(Answer: d; p. 224; Easy)
126. Krispy Kreme provides _____ to customers.
a. tangible products
b. services
c. experiences
d. none of the above
e. A and C
(Answer: e; p. 199; Moderate)
127. When the Twin Six Cafe provides gourmet menu options to its customers, as well as
impeccable service—which even allows the customer to hand-select his or her own
cut of meat—_____ is(are) are evident.
a. only an actual product
b. only an augmented product
c. only a core benefit
d. both a core benefit and an actual product
e. a core benefit, an actual product, and an augmented product
(Answer: e; p. 200; Challenging)
216
128. A hickory rocking chair, handmade by an Amish woodcarver in northern Indiana
from locally grown wood is an example of a(n) _____.
a. convenience product
b. shopping product
c. specialty product
d. service
e. augmented product
(Answer: c; p. 201; Easy)
129. You have an upset stomach. Your spouse rushes to the corner convenience store for a
bottle of Pepto-Bismol. This product is a(n) _____ product.
a. unsought
b. convenience
c. augmented
d. shopping
e. specialty
(Answer: b; p. 201; Easy)
130. Mabel Lu is planning to buy a new washing machine. She notices that they come in
numerous price ranges. She wants to make sure she gets the most for her money. This
product is a(n) _____ product.
a. augmented
b. specialty
c. convenience
d. shopping
e. unsought
(Answer: d; p. 201; Moderate)
131. The American Dairy Association has announced, “Milk—It Does a Body Good.”
This is an example of _____.
a. corporate image advertising
b. person marketing
c. image marketing
d. deceptive advertising
e. social marketing
(Answer: a; p. 202; Moderate)
132. To achieve its social change objectives, social marketing _____.
a. utilizes only the promotional P of the marketing mix
b. utilizes only the promotional and product Ps of the marketing mix
c. works to influence individuals’ behavior to improve their well-being
d. utilizes all of the Ps in the marketing mix
e. C and D
(Answer: e; p. 204; Challenging)
217
133. Which of the following is(are) examples of product line depth?
a. Hamburger and cheeseburger.
b. Hamburger and fries.
c. Coke and Diet Coke.
d. A and C
e. All of the above.
(Answer: d; p. 213; Challenging)
134. Helene Curtis began to market shampoo for normal hair. In an attempt to increase
profits and use excess market capacity, Helene Curtis then marketed shampoo for oily
hair and color-treated hair. This is an example of _____.
a. line filling
b. social marketing
c. line stretching
d. an unsought product
e. people marketing
(Answer: a; p. 213; Challenging)
135. A manager of a Holiday Inn said, “We have power and value in the market and
people are willing to pay for it.” This manager is referring to _____.
a. social marketing
b. brand equity
c. specialty products
d. line filling
e. product length
(Answer: b; p. 214; Moderate)
Short Answer
136. What does the term product include?
Products include physical objects, services, events, persons, places, organizations,
ideas, or mixes of these entities.
(p. 199; Easy)
137. Give an example of the most basic level of product, the core benefit.
Examples are numerous. A salon owner, providing similar services of a day spa, may
focus on “pampering yourself in total relaxation.”
(p. 200; Moderate)
218
138. Using your response in question #137, give examples of the second level of product,
the actual product.
In this situation, the salon owner may market hair- and nail-care products and
services, full- and partial-body massages, workout equipment and training, and social
activities, and so forth.
(p. 200; Easy)
139. Using your response in question #138, give an example of an augmented product.
Examples will vary. In this situation, an augmented product may include the customer
option of having most of the services performed in the privacy and solitude of his or
her home.
(p. 200; Challenging)
140. Give three examples of convenience products.
Examples may include soft drinks, milk, and candy.
(p. 201; Easy)
141. How do you know your examples in question #140 are convenience goods?
They are low-priced and require very little customer thought or shopping effort.
(p. 201; Easy)
142. Give three examples of shopping products.
Examples may include washing machines, lawn mowers, and furniture.
(p. 201; Easy)
143. How do you know the examples in question #142 are shopping products?
Shopping products often require a comparison of brands and are distributed in fewer
outlets; they require more planning and shopping effort than do convenience
products.
(p. 201; Easy)
144. Give three examples of specialty products.
Examples may include a Rolex watch, a Jaguar sports car, and an around-the-world
cruise.
(p. 201; Easy)
219
145. How do you know the examples in question #145 are specialty products?
Such specialty products carry extremely high prices; purchase frequency is usually
low. Buyers typically care little about price level and carry with them a strong brand
preference.
(p. 201; Easy)
146. Give an example of place marketing.
Examples may include activities undertaken to create, maintain, or change attitudes or
behavior toward a particular place.
(p. 203; Moderate)
147. As subjective as it may be, attempting to convince a bald man that joining The Hair
Club will improve his looks and attract more dates is an example of what kind of
marketing?
Idea marketing is being used in this situation.
(p. 203; Challenging)
148. How might measuring service quality be more difficult than measuring product
quality?
Products are tangible; therefore, measuring quality across several dimensions—such
as durability, functionality, and so on—may be easier or performed more consistently
than when measuring service quality.
(p. 206; Challenging)
149. Consumers form relationships with products via brands. What might happen that
allows a consumer to move from merely recognizing a brand to preferring a brand?
A consumer has likely tried the brand at least once in order to prefer it over others; or,
perhaps the consumer prefers a brand merely because he or she has been exposed to a
catchy ad or promotional gimmick.
(p. 215; Challenging)
150. How might a flower shop, for example, engage in line stretching?
A flower shop may offer single-stem, fresh-cut flowers, sold individually, small
arrangements, bouquets, or large ceremonial sprays; with line stretching, the flower
shop will offer a wide array of products geared toward all types of flower buyers.
(p. 212; Challenging)
220
151. Give an example of product depth in the soft drink industry.
Examples include Coke, Diet Coke, Caffeine-free Coke, and Cherry Coke.
(p. 213; Easy)
152. Consider such brand names as A1 Steak Sauce, 409, A & D Ointment, A & W Root
Beer, and Super 8. How might such names with alphanumeric characters aid in brand
name selection?
Such brands are easy to pronounce, easy to recognize, and easy to remember.
(p. 217; Easy)
153. Consider a massage. What service characteristics definitely define the massage as a
service?
Intangibility, variability, inseparability, and perishability all define the massage as a
service.
(p. 223; Easy)
154. You have just flown first-class from Chicago to Boston. Last month you flew
economy-class from Chicago to Boston. When assessing the quality of service you
received on both flights, you admit that you preferred the economy-class flight. List
three possible factors that may have led to that variability.
The first-class flight may have been bumpy due to windy weather or the plane, for
whatever reason, may have left Chicago late. The flight attendants in the first-class
section may not have been as attentive as you expected. The price difference may
have been extremely drastic, given the equivalent service received.
(p. 224; Challenging)
155. As a service provider, why might you perceive the buyer-seller relationship in the
service encounter to be especially critical?
Customers’ perceptions are established during the service encounter. At this time,
based on these perceptions, customers can become loyal, long-term buyers. It is
critical that service sellers establish sound relationships from the beginning.
(p. 225; Challenging)
221
Scenario
Herb Marks had 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 two-year contract with
Elmore ended.
Herb had built a company reputation on the manufacture 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 had established a brand name, known merely as Marks,
and decided to expound 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 so 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.
156. Explain Herb’s market offering?
Herb’s wide array of specialty writing utensils is the key element in the offering;
however, the Marks brand is also built upon the customer relationships established
early on and nurtured in the long run.
(p. 199; Easy)
157. Describe the core benefit surrounding Herb’s offerings.
The core benefit can be described as an easier transfer of a thought onto paper with
the variety of specialty writing tools by Marks.
(p. 200; Moderate)
158. Explain the augmented product surrounding the core benefit and actual product in this
scenario.
The augmented product is the determined effort by Marks representatives to build
lasting relationships with customers.
(p. 200; Challenging)
222
159. What type of consumer products does Marks manufacture? Explain.
The Marks brand is associated with specialty products; these products are probably
higher priced and need to be perceived as different and superior from competitors’
offerings.
(p. 201; Moderate)
160. Does organization marketing occur in this scenario? Explain.
Herb Marks does attempt to carry out activities to “sell” the organization itself. The
Marks products should speak for themselves; the representatives’ customer visits may
serve as powerful, image-building mechanisms.
(p. 202; Challenging)
161. Why is it critical that these products have the Marks name attached?
With the Marks brand name, the products offered can be better positioned in the
market as they are identified with the Marks name and all that it stands for.
(p. 208; Challenging)
162. Is line filling evident in this scenario? Explain.
Yes. Examples of line filling include the new felt-tip pens, multiple-cartridge pens,
and quills added to the existing line of pens and pencils.
(p. 213; Moderate)
163. Are examples of product depth evident in this scenario? Explain.
Yes. There are apparently numerous versions of the same product types in this
scenario; Herb Marks can vary the materials, style, and engravings used for each
product.
(p. 213; Moderate)
164. What factors are critical in positioning the Marks brand in the marketplace?
The success of the Marks brand depends on the products’ attributes, the perceived
benefits of the brand, and the beliefs and values that the Marks products deliver more
than just certain attributes and benefits.
(p. 215; Challenging)
165. Are brand extensions evident in this scenario? Explain.
Yes. The Marks brand now includes stationery and business cards.
(p. 221; Easy)
223