A ________ is anything that can be offered to a market to satisfy a
want or need, including physical goods, services, experiences, events,
persons, places, properties, organizations, information, and
ideas.
A) function
B) product
C) benefit
D)
process
E) structure
Page: 325
B
A customer judges a product offering by three basic elements: product
features and quality, services mix and quality, and ________.
A)
performance
B) utility
C) tangibility
D)
price
E) availability
Page: 325
D
The five product levels constitute a ________. At each level more
customer value is added.
A) product line
B) business
model
C) customer value-hierarchy
D) value grid
E)
demand chain
Page: 326
C
When companies search for new ways to satisfy customers and
distinguish their offering from others, they look at the ________
product, which encompasses all the possible augmentations and
transformations of the product.
A) consumption
B) expected
C) potential
D) augmented
E) basic
Page: 326
C
The way the user performs the tasks of getting and using products and
related services is the user's total ________.
A) consumption
system
B) consumable system
C) consistent use system
D) augmented system
E) potential system
Page: 326
A
Marketers must see themselves as benefit providers. For example, when
a shopper purchases new shoes, he/she expects the shoes to cover
his/her feet and allow him/her to walk unobstructed. This is an
example of what level in the consumer-value hierarchy?
A) pure
tangible good
B) basic product
C) augmented product
D)
potential product
E) generic product
Page: 326
B
How a consumer shops for organic foods and how he or she uses and
disposes of the product is part of the consumers' ________ that is
important for marketers to consider.
A) value proposition
B)
consumption system
C) value system
D) quality
perception
E) value chain
Page: 326
B
The sellers of ________ goods carry a wide assortment to satisfy
individual tastes and must have well-trained salespeople to inform and
advise customers.
A) unsought
B) specialty
C)
convenience
D) heterogeneous shopping
E) generic
Page: 327
D
Marketers have traditionally classified products on the basis of
three characteristics: ________, tangibility, and use.
A)
availability
B) affordability
C) aesthetics
D)
durability
E) necessity
Page: 327
D
Which of the following are tangible goods that normally survive many
uses?
A) generic goods
B) durable goods
C) core
benefits
D) convenience goods
E) unsought goods
Page: 327
B
Because ________ are purchased frequently, marketers should make them
available in many locations, charge only a small markup, and advertise
heavily to induce trial and build preference.
A) nondurable
goods
B) durable goods
C) services
D) unsought
goods
E) specialty goods
Page: 327
A
What types of goods are purchased frequently, immediately, and with
minimum effort by the consumers?
A) specialty goods
B)
shopping goods
C) unsought goods
D) durable goods
E)
convenience goods
Page: 327
E
It was sunny when Jenny went to class, but by the time class was over
it was raining heavily, so Jenny stopped by the student store to buy
an umbrella before she walked back to her dorm. In this case, the
umbrella is an example of a(n) ________.
A) impulse good
B) specialty good
C) homogeneous shopping good
D)
emergency good
E) heterogeneous shopping good
Page: 327
D
What goods are similar in quality but different enough in price to
justify shopping comparisons?
A) emergency goods
B)
homogeneous shopping goods
C) heterogeneous shopping goods
D) specialty goods
E) convenience goods
Page: 327
B
Products such as insurance, cemetery plots, and smoke detectors are
examples of ________ that are products that the consumer does not know
about or does not normally think of buying.
A) specialty goods
B) unsought goods
C) heterogeneous shopping goods
D)
homogeneous shopping goods
E) convenience goods
Page: 327
B
Industrial goods can be classified as ________, capital items, or
suppliers and business services based on their relative cost and how
they enter the production process.
A) service components
B)
sub-assemblies
C) accessories
D) specialty goods
E)
materials and parts
Page: 327
E
________ are the major factors influencing the selection of suppliers
for natural products.
A) Price and delivery reliability
B)
Product features and customization
C) Price and
customization
D) Delivery reliability and product
features
E) Customization and delivery reliability
Page: 328
A
Capital items are long-lasting goods that facilitate developing or
managing the finished product. They include two groups: installations
and ________.
A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials
Page: 328
D
The two kinds of supplies with respect to industrial goods
classification are maintenance and repair items, and ________.
A)
installations
B) operating supplies
C) processed
materials
D) component materials
E) equipment
Page: 328
B
________ are major purchases and are usually bought directly from the
producer with the typical sale preceded by long negotiation
periods.
A) Raw materials
B) Materials and parts
C)
Processed materials
D) Capital goods
E) Installations
Page: 328
E
Most products are established at one of four performance levels: low,
average, high, or superior. For example, mountain bikes come in a
variety of sizes and physical attributes. When a consumer purchases a
mountain bike costing $1,000, she/he expects the bike to perform to
specifications and to have a high ________ meeting the promised
specifications.
A) features
B) conformance quality
C)
durability
D) performance quality
E) reliability
Page: 329
D
Many products can be differentiated in terms of their ________, which
is its size, shape, or physical structure.
A) form
B)
prototype
C) architecture
D) model
E) blueprint
Page: 329
A
________ is the ability of a company to prepare on a large-scale
basis individually designed products, services, programs, and
communications.
A) Mass customization
B) Reverse
engineering
C) Interoperability
D) Backward
compatibility
E) Benchmarking
Page: 329
A
________ is the level at which the product's primary characteristics
operate.
A) Design
B) Conformance quality
C)
Reparability
D) Performance quality
E) Durability
Page: 329
D
Buyers expect products to have high ________, which is the degree to
which all the produced units are identical and meet the promised
specifications.
A) durability
B) compatibility
C)
conformance quality
D) form
E) performance quality
Page: 329
C
Most products can be offered with varying ________ that can
supplement its basic function.
A) degrees of reliability
B)
conformance qualities
C) features
D) forms
E) designs
Page: 329
C
If the Ford GT is designed to accelerate to 50 miles per hour within
10 seconds, and every Ford GT coming off the assembly line does this,
the model is said to have high ________.
A) reliability
B)
conformance quality
C) durability
D) compatibility
E) interoperability
Page: 329-330
B
________ describes the product's look and feel to the buyer; it has
an advantage of creating distinctiveness that is difficult to
copy.
A) Design
B) Style
C) Durability
D)
Conformance
E) Reliability
Page: 330
B
Ideal ________ would exist if users could fix the product themselves
with little cost in money or time.
A) durability
B)
reliability
C) style
D) design
E) reparability
Page: 330
E
________ is a measure of the probability that a product will not
malfunction or fail within a specified time period.
A)
Reparability
B) Durability
C) Reliability
D)
Specialty
E) Compatibility
Page: 330
C
When the physical product cannot be easily differentiated, the key to
competitive success may lie in adding valued services and improving
their quality. The main service differentiators are ordering ease,
delivery, installation, ________, customer consulting, maintenance,
and repair.
A) technology intensity
B) responsivity
C)
ease of use
D) customer training
E) adaptability
Page: 331
D
Delivery refers to how well the product or service is brought to the
customer. It includes speed, ________, and care throughout the
delivery process.
A) expedience
B) intensity
C)
tangibility
D) performance
E) accuracy
Page: 331
E
________ refers to educating the customer's employees to use the
vendor's equipment properly and efficiently.
A) Customer
training
B) Open innovation
C) Crowdsourcing
D)
Co-development
E) Collaborative research
Page: 331
A
________ refers to data, information systems, and advice services
that the seller offers to their buyers.
A) Sales force
relationships
B) Customer relationships
C) Open source
technology
D) Customer training
E) Customer consulting
Page: 331
E
Differentiating on ________ is important for companies with complex
products and becomes an especially good selling point when targeting
technology novices.
A) delivery
B) ordering ease
C)
ease of installation
D) customer consulting
E) reparability
Page: 331
C
________ describes the service program for helping customers keep
purchased products in good working order.
A) Returns
B)
Ordering ease
C) Installation
D) Maintenance and repair
E) Delivery
Page: 331
D
Which of the following actions would result in the elimination of
uncontrollable returns of products in the short run?
A) improved
handling
B) better packaging
C) improved
transportation
D) proper storage
E) cannot be eliminated
Page: 331
E
Smith & Adams Poultry has recently upgraded its transactional
model such that its customers (restaurants and hotels) can communicate
with its central supply system to indicate purchase volumes, dates,
and receive confirmation, through their computer terminals. This is an
example of a company differentiating itself versus competition in
terms of ________.
A) customer relationships
B) customer
training
C) installation
D) delivery ease
E)
ordering ease
Page: 331
E
Realizing that although household products is a huge category, taking
up an entire supermarket aisle or more, it is an incredibly boring
one, the founders of Method Products designed a sleek, uncluttered
dish soap container that also carried functional advantages, such as
ease of dispensing soap and cleaning. Method is competing in the
crowded market for household products on the basis of superior
________.
A) design
B) durability
C) conformance
D) reliability
E) performance quality
Page: 332
A
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.
A) Conformance
B) Design
C)
Performance
D) Reliability
E) Style
Page: 332
B
A group of products within a product class that are closely related
because they perform a similar function, are sold to the same customer
groups, are marketed through the same outlets or channels, or fall
within given price ranges is known as a ________.
A) product
type
B) product class
C) need family
D) product
variant
E) product line
Page: 336
E
A(n) ________ is defined as a distinct unit within a brand or product
line distinguishable by size, price, appearance, or some other
attribute.
A) stockkeeping unit
B) inventory turn
C)
individual brand
D) product type
E) brand line
Page: 336
A
A ________ is the set of all products and items a particular seller
offers for sale.
A) product line
B) product mix
C)
product extension
D) product system
E) product class
Page: 336
B
Happy Home Products produces detergents, toothpaste, bar soap,
disposable diapers, and paper products. This company has a product
________ of five lines.
A) type
B) length
C)
class
D) mix
E) width
Page: 336
E
Using the ________ level of the product hierarchy to market its
soups, Campbell Soups feature the company name first, then the soup
variety on their packaging.
A) product class
B)
product-type
C) need-family
D) product-family
E)
product-line
Page: 336
E
A consumer products firm manufactures and sells over 200 different
sizes and varieties of jams and jellies. We can say that this
manufacturer's product mix has high ________.
A) consistency
B) depth
C) intensity
D) range
E) width
Page: 337
B
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) consistency
B) depth
C) width
D) length
E) composition
Page: 337
A
The ________ of the product mix refers to the total number of items
in the mix.
A) width
B) length
C) depth
D)
breadth
E) range
Page: 337
B
In offering a product line, companies normally develop a ________ and
modules that can be added to meet different customer requirements.
A) convenience item
B) flagship product
C) staple
item
D) potential product
E) basic platform
Page: 337
E
The ________ of a product mix refers to how many variants are offered
of each product in the line.
A) width
B) length
C)
depth
D) consistency
E) height
Page: 337
C
Which of the following is a benefit of product mapping?
A)
studying market matrices
B) integrating target markets
C)
identifying market segments
D) educating consumers
E)
integrating target matrices
Page: 338
C
Product-line analysis provides information for two key decision
areasproduct-line length and ________.
A) product-class
composition
B) product-mix pricing
C) product pricing
D) popular pricing
E) product need family
Page: 338
B
What occurs when any company lengthens its product line beyond its
current range?
A) market overreach
B) brand
dilution
C) product adaptations
D) cannibalization
E)
line stretching
Page: 339
E
A company positioned in the "middle" market introduces a
lower-priced product line. What type of line-stretching is
this?
A) home stretch
B) up-market stretch
C)
down-market stretch
D) maintenance stretch
E) two-way stretch
Page: 340
C
Moving ________ carries risks. The new brand can cannibalize core
brand sales and lower the core brand's quality image.
A)
up-market
B) two ways
C) one way
D) down-market
E) out-market
Page: 340
D
Companies may wish to implement a(n) ________ to achieve more growth,
to realize higher margins, or simply to position themselves as
full-line manufacturers.
A) up-market stretch
B)
rebranding plan
C) outsourcing strategy
D) disintermediation
policy
E) vertical integration strategy
Page: 340
A
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.
A)
down-market stretch
B) up-market stretch
C) two-way
stretch
D) marketing research
E) disintermediation
Page: 340
A
Marriott Corporation now contains hotels and motels from the
"budget" end of the consumer spectrum to the
"premium" end with their JD Marriott flagship locations.
This is an example of a firm that successfully performed a ________ to
reach more consumers and ventures that are more profitable.
A)
upstream integration
B) two-way stretch
C) up-market
stretch
D) down-market stretch
E) downstream integration
Page: 340
B
A product line can also be lengthened by adding more items within the
present range. There are several motives for line filling. Which of
the following is one of them?
A) responding to senior management
wishes
B) responding to consumer wishes
C) reaching for
incremental profits
D) reaching for incremental capacity
E) responding to sales-force demands
Page: 341
C
If line filling is overdone, it could result in ________ and customer
confusion.
A) sales paralysis
B) manufacturing
inefficiencies
C) self-cannibalization
D)
disintermediation
E) ineffective management
Page: 341
C
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.
A) are ineffective on total
B) have no effect on total
C) maximizes
D)
minimizes
E) capitalize upon
Page: 342
C
Companies normally develop ________ rather than single products and
require sellers to establish perceived quality differences between
price steps within it.
A) product mix
B) captive
products
C) product lines
D) optional products
E)
average products
Page: 342
C
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?
A) two-part
pricing
B) product-line pricing
C) captive product
pricing
D) market pricing skimming
E) price discrimination
Page: 342
B
Some service firms often engage in ________, consisting of a fixed
fee plus a variable usage fee.
A) pure bundling
B) pure
pricing
C) mixed pricing
D) captive pricing
E)
two-part pricing
Page: 343
E
In ________, the seller offers goods both individually and in bundles
and often charges less for the "bundle" than for the
individual products.
A) pirating pricing
B) captive
pricing
C) two-part pricing
D) pure bundling
E)
mixed bundling
Page: 344
E
Purchasers of theatre tickets receive a 20% discount if they purchase
and pay for the full season at one time. This is an example of what
type of product-mix pricing?
A) mixed bundling
B) pure
bundling
C) cross-promotion
D) captive pricing
E)
two-part pricing
Page: 344
A
McDonald's restaurants inside Wal-Marts and Starbucks inside Super
Targets are examples of ________, whose main advantages are that the
products can or may be convincingly positioned by virtue of the
associated brands.
A) cooperative marketing
B)
cross-promotion
C) retail co-branding
D) ingredient
branding
E) feature promotion
Page: 344
C
Betty Crocker cake mixes using Hershey syrup in its cake mixes and
"Lunchables" lunch combinations with Taco Bell tacos are
examples of what special type of branding?
A) family branding
B) ingredient co-branding
C) co-branding
D)
generic-branding
E) individual branding
Page: 345
B
The main advantage of co-branding is that a product may be
convincingly positioned by virtue of the ________ involved.
A)
branding synergy
B) increased advertising dollars
C)
multiple brands
D) bundled package
E) pure bundling
Page: 345
C
The potential disadvantages of ________ are the risks and lack of
control from becoming aligned with another brand in the consumers
mind. Consumer expectations about the level of involvement and
commitment are likely to be high, so unsatisfactory performance could
be very negative for the brands involved.
A) co-branding
B) cannibalization
C) vertical integration
D)
disintermediation
E) brand stretching
Page: 345
A
________ is a special case of co-branding involving creating brand
equity for materials, components, or parts that are necessarily
contained within other branded products.
A) Cross-branding
B) Ingredient branding
C) Equity branding
D) Family
branding
E) Generic branding
Page: 345
B
We define packaging as all the activities of designing and producing
the container for a product. This includes up to three levels of
material: primary package, secondary package, and ________.
A)
retailer package
B) design package
C) shipping package
D) consumer package
E) supplier package
Page: 346
C
Sales of luxury goods such as perfumes, colognes, and aftershaves
depend heavily upon their initial response by the consumer. A
well-designed package can create convenience and promotional value. It
has been called the "silent salesman." Which of the three
levels of packaging is this "silent salesman"?
A)
retailer
B) consumer
C) shipping
D) secondary
E) primary
Page: 346
E
Which of the following factors is one of the contributors to the
growing use of packaging as a marketing tool?
A) consumption
aid
B) consumer affluence
C) consumer influence
D)
conformance qualities
E) brand identification
Page: 346
B
________ are formal statements of expected product performance by the
manufacturer.
A) Insurance
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets
Page: 349
B
Many sellers offer either general or specific guarantees. Guarantees
reduce the buyer's ________ risk.
A) actual
B) perceived
C) real
D) implied
E) stated
Page: 349
B
Guarantees are most effective in two situations. The first is when
the company or products are not well known and the second is when the
product's quality is ________ to competition.
A) not known
B) different
C) inferior
D) equivalent
E)
superior
Page: 349
E
A new product is advertised on the "infomercials" as being
"the best cleaner money can buy" and "if not completely
satisfied, return the product for a full refund, including
shipping." The strategy of using a strong guarantee in this
instance is sound because ________.
A) it is an example of a
misleading or false advertising and is illegal
B) the product is
so superior to competition that there will be no claims for refunds
C) it is just "advertising fluff" and the manufacturer
has no intentions of refunding money
D) for a product that is
not too well known, it is "good advertising" because the
claims will be a small percentage of sales
E) for a product that
is not too well known it reduces the buyer's risk in purchasing
Page: 349
E
Marketing planning begins with formulating an offering to meet target
customers' needs or wants.
Page: 325
true
A product is anything that can be offered to a market to satisfy a
want or need.
Page: 325
true
In planning its market offering, the marketer needs to address five
product levels, each of which reduces customer value.
Page: 326
false
The customer-value hierarchy consists of the basic product, core
benefit, expected product, augmented product, and the consumption system.
Page: 326
false
Marketers have traditionally classified products on the basis of
characteristics such as durability, tangibility, and use.
Page: 327
true
Durable products normally require less personal selling and service
and less seller guarantees than nondurable goods.
Page: 327
false
Because they are intangible, durable goods normally require more
quality control, supplier credibility, and adaptability than either
services or nondurable goods.
Page: 327
false
Carlos always buys bread and milk when he goes grocery shopping. In
this case, bread and milk are examples of impulse goods.
Page: 327
false
A Maserati sports car is considered a convenience good because
interested buyers will travel far to buy one.
Page: 327
false
The homogeneity of natural materials limits the amount of
demand-creation activity that producers undertake.
Page: 328
true
Capital items are long-lasting goods that facilitate developing or
managing the finished products.
Page: 328
true
Supplies can be classified as two kinds: heterogenous supplies and
homogeneous supplies.
Page: 328
false
To be branded, physical products need not be differentiated.
Page: 328
false
To avoid "feature fatigue," companies must be careful to
prioritize those features that are included and find unobtrusive ways
to provide information about how consumers can use and benefit from
the feature.
Page: 329
true
Firms should design the highest performance level possible for their products.
Page: 329
false
As a selling point, durability commands a particularly high pricing
premium, especially for products that are subject to rapid
technological obsolescence, as are personal computers and video cameras.
Page: 330
false
If the physical product cannot be easily differentiated, the key to
competitive advantage lies in the pricing of the related
"services" provided by the manufacturer.
Page: 330
false
Customer training and customer consulting are two areas for service
differentiation that manufacturers can use with their products.
Page: 331
true
The cost of processing a return can be significantly greater than
that of an outbound shipment.
Page: 331
true
Design can shift consumer perceptions to make brand experiences more rewarding.
Page: 333
true
The product hierarchy stretches from basic needs to particular items
that satisfy those needs.
Page: 336
true
A product system is a group of diverse and unrelated items that does
not function in a compatible manner and includes the product mix and
product assortment.
Page: 336
false
The four product-mix dimensions (length, width, depth, consistency)
permit the company to expand its business.
Page: 336-337
true
The product-line length can be obtained by averaging the number of
variants within the brand groups.
Page: 337
false
Every company's product line covers a certain part of the total
possible range of products and consumer levels.
Page: 339
true
Companies in the "middle market" should never attempt to
stretch their line in both directions.
Page: 340
false
Line filling, if overdone, may result in self-cannibalization and
increased customer loyalty.
Page: 341
false
In the rapidly changing market of today's world, product lines must
be continuously updated or modernized.
Page: 341
true
Price-setting logic must be modified when the product is part of a
product mix.
Page: 342
true
Companies normally develop product lines rather than a single product
and introduce price steps such as a "low-,"
"average-," and "high-" priced computer system.
Page: 342
true
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."
Page: 343
false
A pricing system in which there is a "fixed" fee and then a
variable "usage" fee is called bundling.
Page: 344
false
Pure bundling occurs when a firm offers goods both individually and
in bundles.
Page: 344
false
Co-branding is when two or more well-known existing brands are
combined into a joint product and/or marketed together in some fashion.
Page: 344
true
Ingredient branding can take on a form called
"self-branding" in which the company advertises its own
branded ingredients.
Page: 345
true
Packaging is all the activities of designing and producing the
container for a product.
Page: 346
true
Labels can identify the product and must contain legal statements
that under various Federal laws cannot be misleading, false, or deceptive.
Page: 348
true
Warranties are formal statements of expected product performance by
the manufacturer.
Page: 349
true
A guarantee's greatest contribution to a product's success is that it
decreases the buyer's perceived risk in the purchase of the product.
Page: 349
true
Guarantees are most effective when the product is well known and/or
similar in performance to other brands in the market.
Page: 349
false