Final exam pool items (Chs. 9, 11, 12, 13, 14, 15 & 17 not 18)



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a.

homogeneous luxury product

b.

shopping specialty good

c.

operating supply good

d.

convenience item

e.

heterogeneous shopping good

ANS: E


Grills would be considered heterogeneous shopping products because consumers perceive various grills to have distinctive qualities such as sizes, shapes, and levels of functionality that match the style of the customer.

PTS: 1 REF: 132 OBJ: 09-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

22. _____ products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.



a.

Exclusive shopping

b.

Homogeneous convenience

c.

Branded shopping

d.

Specialty

e.

Heterogeneous convenience

ANS: D PTS: 1 REF: 132 OBJ: 09-2 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

23. The most expensive refrigerator in the world is the Sub-Zero brand. Many consumers believe it to be the best brand made. For people who insist on having the best kitchen money can buy and will accept no less, the Sub-Zero refrigerator is an example of a(n) _____ product.



a.

heterogeneous shopping

b.

specialty

c.

homogeneous shopping

d.

convenience

e.

exclusive

ANS: B


Sub-Zero refrigerators are expensive, and no substitutes are acceptable.

PTS: 1 REF: 132 OBJ: 09-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

24. One of the most expensive brands of shoes for mountain climbing is the Anasazi brand. Many climbers believe it to be the safest brand made. People who want to buy the safest climbing shoes available will accept no other brand of shoe even though there are several other manufacturers of climbing shoes. Anasazi brand climbing shoes are an example of a(n) _____ product.



a.

heterogeneous shopping

b.

specialty

c.

homogeneous shopping

d.

convenience

e.

exclusive

ANS: B


Anasazi brand shoes are expensive, and no substitutes are acceptable.

PTS: 1 REF: 132 OBJ: 09-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

25. When deciding on distribution plans for specialty products, companies generally ensure that the items are:



a.

made available only as private brands

b.

made available in a large number of stores in a geographic area

c.

made available only through the mail

d.

distributed to a considerable number of stores in a geographic area

e.

distributed to only a few stores in the geographic area

ANS: E


Specialty products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.

PTS: 1 REF: 132 OBJ: 09-2 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Distribution

26. Ever since Martin saw his first Bianchi EV3 Carbon Centaur Road Bike, he has wanted to purchase one, but he could not afford its $2,500 price tag. He has conducted extensive research on Bianchi bicycles and learned nothing that changed his mind about the bike’s superiority. Finally, at age 35, he has achieved the income level to be able to purchase one. For Martin, the Bianchi bike is an example of a(n) _____ product.



a.

specialty

b.

consumer

c.

convenience

d.

business

e.

unsought

ANS: A


The fact that Martin did not consider another brand shows the bike is a specialty product.

PTS: 1 REF: 132 OBJ: 09-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

27. _____ products are products that are not known about or not actively searched for by consumers. These products require aggressive personal selling and highly persuasive advertising.



a.

Hidden

b.

Specialty

c.

Equity

d.

Unsought

e.

Shopping

ANS: D PTS: 1 REF: 133 OBJ: 09-2 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

28. To leave her neighborhood, Keisha has to drive through a construction area that is riddled with metal pieces and nails with the potential to puncture her tires. She got another flat tire just yesterday. The flat caused her to miss an important appointment with a prospective customer. Keisha does not know Michelin has introduced PAX tires, which can keep rolling smoothly up to 120 miles, even if completely deflated by a puncture. For Keisha, Michelin PAX tires are a(n) _____ product because she doesn't know the product exists.



a.

heterogeneous shopping

b.

specialty

c.

unsought

d.

convenience

e.

exclusive

ANS: C


New products are often examples of unsought products until promotion reveals their existence.

PTS: 1 REF: 133 OBJ: 09-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

29. Unsought products typically are products that:



a.

consumers purchase when they see them in a convenient location

b.

consumers definitely don't want

c.

only require reminder advertising to be successful

d.

require little or no decision making by the buyer

e.

consumers don't know about or don't actively look for

ANS: E PTS: 1 REF: 133 OBJ: 09-2 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

30. Most people under the age of 25 have a strong belief in their own personal invincibility. An insurance agency targeting this group for life insurance would find this market segment categorizes the insurance as a(n) _____ product.



a.

heterogeneous shopping

b.

specialty

c.

unsought

d.

relationship

e.

exclusive

ANS: C


The buyer does not actively seek to buy this product.

PTS: 1 REF: 133 OBJ: 09-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

31. A product line is a group of products that are closely related because the:



a.

products share the same product managers

b.

products all function in a similar manner and provide similar benefits

c.

same company developed the idea for each product

d.

products are all sold under the same brand name

e.

products are all priced about the same

ANS: B


A product line is a group of closely related products offered by the organization that basically perform the same tasks and provide the same benefits.

PTS: 1 REF: 133 OBJ: 09-3 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

32. There are a number of detergents marketed under the Tide brand including detergent with and without fabric softener, with and without bleach, with various pleasing smells, and fragrance-free. The large variety of detergents marketed under the Tide brand is an example of a:



a.

marketing mix

b.

product line

c.

product mix

d.

product equity

e.

mix consistency

ANS: B


A product line is a group of closely related products.

PTS: 1 REF: 131 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

33. Along with soft drinks, Cadbury-Schweppes also markets Dentyne gum, Sour Patch Kids candy, and Mott’s apple juice. This is an abbreviated listing of the company's:



a.

customer mix

b.

product line

c.

product mix

d.

line depth

e.

product inconsistency

ANS: C


An organization's product mix includes all of the products that it sells.

PTS: 1 REF: 133 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

34. Most people recognize Butterball as a brand of turkey, but the Butterball _____ also includes fresh turkey breast cuts, turkey sausages, ground turkey, lunchmeat cold cuts, fresh marinated bone-in, boneless, and whole chicken, frozen chicken products, and Butterball stuffing and gravy mixes.



a.

marketing equity

b.

product line

c.

product mix

d.

line depth

e.

product inconsistency

ANS: C


An organization's product mix includes all of the products that it sells.

PTS: 1 REF: 133 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

35. Product mix width may be defined as:



a.

the number of different product categories found within an industry

b.

the average number of products within each product line in the company

c.

the average number of products offered by the company

d.

the number of different product lines an organization offers for sale

e.

the extensiveness of the coverage of the line from high end (expensive) to low end (inexpensive)

ANS: D PTS: 1 REF: 133 OBJ: 09-3 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

36. Procter and Gamble (P&G) manufactures Dawn dishwashing liquid. The addition of Dawn Direct Foam dishwashing liquid is a way that P&G can expand the brand’s:



a.

line width

b.

breadth mix

c.

mix width

d.

line depth

e.

mix depth

ANS: D


Product line depth is the number of product items in a product line.

PTS: 1 REF: 133 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

37. George Weston Limited, a Canadian food processing and distribution company, is one of the world’s largest producers of breads. The company also owns and operates a pulp and paper processing company, a major Canadian dairy, and a sugar refinery. These organizations provide Weston with product:



a.

line height

b.

line consistency

c.

mix width

d.

line depth

e.

mix depth

ANS: C


Product mix width refers to the number of different product lines that an organization offers for sale.

PTS: 1 REF: 133 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

38. Which of the following is an example of a product modification?



a.

lowering the price of textbooks

b.

dropping a product from the product line

c.

changing the color of a laundry detergent

d.

changing the amount of management time spent overseeing production

e.

increasing the number of distribution outlets

ANS: C


Product modification entails changing one or more of a product's characteristics.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

39. George Weston Limited, a Canadian food processing company, owns the Wonder bread brand. When Weston introduced whole grain white bread, which gives kids the bread texture and color they recognize and love and mothers the vitamins they want for their children, it was an example of a(n):



a.

product line contraction

b.

quality modification

c.

aesthetics modification

d.

obsolescence factor

e.

functional modification

ANS: E


Functional modification is a change in a product’s versatility or effectiveness.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

40. V8 juice has for years advertised itself as a refreshing and nutritional drink that contains eight different vegetables, and that is what the brand name V8 means to most consumers. When the manufacturer of V8 juice introduced V8 Orange and Mango juice, it was an example of a _____ strategy.



a.

repositioning

b.

product line extension

c.

cannibalization

d.

disintermediation

e.

demarketing

ANS: B


Product line extension is the adding of additional products to an existing product line in order to compete more broadly in the industry.

PTS: 1 REF: 135 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

41. Cadbury Schweppes produces several different brands of beverages including 7 Up, Canada Dry, Dr Pepper, Hawaiian Punch, and Snapple. This is an example of Cadbury's:



a.

product line width

b.

product mix

c.

product line depth

d.

product mix inconsistency

e.

marketing mix

ANS: C


Product line depth is the number of product items in a product line.

PTS: 1 REF: 133 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

42. Even though Bazooka bubble gum had great brand awareness, its sales were stagnating. The company’s research discovered that children that today prefer softer bubble gum and that its Joe character was viewed as an “out-of-date nerd.” As a result, Bazooka created a softer gum and updated Bazooka Joe with a backward hat, wilder hair, and ripped jeans. Bazooka hopes through this _____ to attract a younger market.

a.

quality modification

b.

aesthetic modification

c.

demarketing

d.

repositioning

e.

functional extension


ANS: D

Repositioning involves changing consumers’ perceptions of a product.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

43. A go-cart manufacturer recently added shock absorbers to make the ride in its go-carts smoother. It has not changed its prices. This is a (n) _____ modification.



a.

upsale

b.

style

c.

dysfunctional

d.

repositioning

e.

quality

ANS: E


Quality modifications entail changing a product's dependability or durability.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

44. One of the leading manufacturers of choir robes has added a fire retardant chemical to the fabric it uses in making the robes. The company has not changed its prices. This is a(n) _____ modification.



a.

functional

b.

obsolescence

c.

quality

d.

repositioning

e.

upward extension

ANS: A


Functional modifications are changes in a product's versatility, effectiveness, convenience, or safety.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

45. Which of the following statements about planned obsolescence is true?



a.

Environmentalists support planned obsolescence.

b.

A company that is interested in producing a quality product would never engage in planned obsolescence.

c.

Style modification creates planned obsolescence.

d.

Planned obsolescence is not an ethical issue.

e.

All of the statements about planned obsolescence are true.

ANS: C


Environmentalists consider planned obsolescence a wasteful practice as well as unethical. There are many manufacturers of quality clothing that engage in planned obsolescence. Planned obsolescence can result from any type of modification.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

46. Which of the following statements about planned obsolescence is true?



a.

Planned obsolescence describes the practice of causing products to become obsolete before they actually need replacement.

b.

Opponents of planned obsolescence argue the practice is wasteful and unethical.

c.

Marketers contend that consumers, not manufacturers and marketers, decide when styles are obsolete.

d.

Consumers favor style modifications because they like changes in the appearance of goods such as clothing and cars.

e.

All of these statements about planned obsolescence are true.

ANS: E PTS: 1 REF: 134 OBJ: 09-3 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

47. A style modification is a(n):



a.

change in the product's durability or dependability

b.

safety improvement

c.

aesthetic product change

d.

way to add convenience

e.

improvement in product versatility and effectiveness

ANS: C PTS: 1 REF: 134 OBJ: 09-3 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

48. For years, many people thought plastic wrap was almost impossible to use and refused to buy the product. The manufacturer of Saran plastic wrap has spent many advertising dollars advising customers on how to eliminate the problems associated with the use of plastic wrap. This manufacturer has engaged in:



a.

diversification

b.

repositioning

c.

product development

d.

product line expansion

e.

product mix expansion

ANS: B


Repositioning is changing consumers' perceptions about a brand.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

49. A regional utility company needs to change consumers' perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal?



a.

contraction of the number of services offered by the utility company

b.

adding new services to its product line

c.

repositioning

d.

disintermediation

e.

use of product cannibalization

ANS: C


Repositioning is a firm's attempt to change customer perceptions of a product.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

50. Michelin has developed a new tire that will keep rolling smoothly for up to 120 miles after it has been punctured. Michelin has made a(n) _____ modification to its tires.



a.

implied

b.

functional

c.

adaptive

d.

aesthetic

e.

conventional

ANS: B


The tire is more effective because it can be driven on following a puncture.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Promotion

51. The introduction of Tide Simple Pleasures, a laundry detergent inspired by the natural essences of vanilla and lavender, is an example of a:



a.

product modification

b.

brand mix extension

c.

product diversification

d.

brand repositioning

e.

demographic modification

ANS: A


A product modification changes one of more of a product’s characteristics--in this example, its smell.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

52. _____ commonly occurs soon after style modification.



a.

Implied repositioning

b.

Demarketing

c.

Marketing innovation

d.

Planned obsolescence

e.

Planned functionality

ANS: D


Planned obsolescence is a term commonly used to describe the practice of modifying a product so that those already sold become obsolete.

PTS: 1 REF: 134 OBJ: 09-3 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

53. Rexona is the number one brand of deodorant worldwide. Since it was launched in the 1960s, it has added an antiperspirant, a stick deodorant, deodorant wipes, and Rexona for Men. These additions are examples of:



a.

product line extensions

b.

product portfolio width adjustments

c.

product item contractions

d.

SBU expansions

e.

mix repositionings

ANS: A


Product line extension occurs when a firm adds a product to an existing product line to compete more broadly in the industry.

PTS: 1 REF: 135 OBJ: 09-3 TYPE: App



TOP: AACSB Reflective Thinking | TB&E Model Product

54. Cover Girl and Revlon are both recognized as leading manufacturers of cosmetics. Both companies have recently introduced cosmetics for the over-50 woman who does not have the same concerns as a 20-year-old girl. The introductions of these cosmetics are examples of the implementation of a _____ strategy.

a.

portfolio breadth expansion

b.

product portfolio width adjustment

c.

product item contraction

d.

product line extension

e.

repositioned marketing mix


ANS: D

Product line extension occurs when a firm adds a product to an existing product line to compete more broadly in the industry.

PTS: 1 REF: 135 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Strategy

55. The most likely reason that Ford stopped producing the Taurus automobile is:

a.

the car was not contributing to Ford’s profits

b.

the Taurus brand lacked brand equity

c.

the Ford Taurus did not create significant cognitive dissonance

d.

the automobile's brand could not be trademarked

e.

a change in the business market


ANS: A

This was an example of a product line contraction.

PTS: 1 REF: 135 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

56. Due to the fact the Honda Insight (a hybrid car) has never caught on with buyers, Honda decided to stop manufacturing the car in 2006. This _____ will allow Honda to concentrate its resources on more profitable vehicles.

a.

product line contraction

b.

product diversification

c.

product development strategy

d.

market redeployment

e.

downsizing


ANS: A

Product line contraction occurs when a company stops making a product.

PTS: 1 REF: 135 OBJ: 09-2 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

57. Alberto-Culver introduced Baker's Joy in the mid-1980s as a product for cooks to use to grease and flour baking pans. The product was not nearly as successful as Alberto-Culver hoped, and it discontinued the product in 2001. This is an example of the implementation of a _____ strategy.

a.

repositioning

b.

cannibalization

c.

product line extension

d.

product line contraction

e.

divestment


ANS: D PTS: 1 REF: 135 OBJ: 09-3 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Strategy

58. A _____ is the part of the brand that can be spoken.



a.

brand equity

b.

service mark

c.

trademark

d.

brand name

e.

certification mark

ANS: D PTS: 1 REF: 135 OBJ: 09-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

59. The _____ is the symbol that cannot be spoken in a brand.



a.

brand mark

b.

trademark

c.

brand equity

d.

quality mark

e.

intangible product

ANS: A PTS: 1 REF: 135 OBJ: 09-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

60. Joseph Confectionery has decided to start marketing a line of Christian-oriented candy under the Testamint brand name. The candy maker is optimistic about establishing the brand in the marketplace and has high hopes of its success. As a marketing consultant, you inform the candy maker that branding can do all of the following EXCEPT:



a.

encourage consumer repeat purchasing

b.

ensure a higher margin of profit

c.

create product differentiation

d.

aid in positioning

e.

possibly yield a larger market share

ANS: B


Nothing can guarantee a higher profit margin.

PTS: 1 REF: 135 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

61. According to market research conducted in 2004, Bazooka (a brand of bubble gum) was among the most recognizable brand names in the United States even though the gum needed some updating to be competitive in today’s market. Its manufacturer has carefully developed the Bazooka brand name for over 50 years and was willing to make modifications in the product because Bazooka has a valuable:

a.

brand loyalty hierarchy

b.

evoked set

c.

brand quality standard

d.

perceptual map

e.

brand equity


ANS: E

The term brand equity refers to the tremendous value of company and brand names.

PTS: 1 REF: 135 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

62. A(n) _____ refers to brands where at least 20 percent of the product is sold outside the home country.



a.

evoked set

b.

global brand

c.

equity brand name

d.

master brand

e.

ethnocentric trademark

ANS: B PTS: 1 REF: 136 OBJ: 09-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

63. Rexona, marketed by Unilever (a Dutch company), is the world's number one deodorant brand. The brand is a leader in Europe, South America, Asia, Africa, and the Middle East. Rexona is an example of a:

a.

master brand

b.

global brand

c.

cannibalized brand

d.

master brand

e.

family brand


ANS: B

At least 20 percent of a global brand is sold outside its home country.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

64. A consumer who consistently and repeatedly purchases the same brand is said to have:



a.

brand loyalty

b.

product equity

c.

product loyalty

d.

product repetition

e.

store loyalty

ANS: A


Brand loyalty is the consistent preference of the same brand by the same consumer. Product loyalty could easily involve a variety of brands.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

65. Brand loyalty can:



a.

increase product diffusion

b.

encourage competition

c.

shorten the amount of time a product spends in the maturity stage

d.

help ensure repeat sales

e.

sell a bad product

ANS: D


Brand loyalty ensures repeat and regular sales.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

66. Internet sites for manufacturers like Sherwin-Williams paint, Toyota, and General Electric can provide these businesses with a nontraditional way to:

a.

avoid income taxes on international sales

b.

help their product brand names become generic

c.

diminish brand loyalty

d.

get away with deceptive market practices because the Web is not regulated

e.

generate brand awareness


ANS: E

See Tide.com example in text.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: App

TOP: AACSB Technology | TB&E Model Product

67. A Boston diamond distributor has developed the first branded diamond called Hearts on Fire to help smaller retailers counter the volume jewelers' aggressive price discounting. This move is meant to:



a.

take away trademark rights

b.

build product identity and customer loyalty

c.

create a catchy phrase to promote diamonds

d.

combat the quality appeal of generic products

e.

combat low-cost production of generic brands

ANS: B


Products in categories that traditionally have not been branded are now attempting to establish brand names that companies hope will build loyalty.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

68. The brand names used on Del Monte, Pillsbury, Harley-Davidson, and Purina products are called _____ brands because of who owns them.



a.

manufacturers'

b.

private

c.

family

d.

individual

e.

master


ANS: A PTS: 1 REF: 136 OBJ: 09-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

69. About one out of every two fans sold in the United States is The Home Depot's Hampton Bay brand. This is an example of a(n) _____ brand.



a.

manufacturers'

b.

international

c.

family

d.

private

e.

corporate


ANS: D

A private brand is one owned by the retailer.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

70. Supermarket chain Albertsons has rolled out Essensia, a product line consisting of cookies, crackers, frozen foods, and frozen desserts "only available at your local store.” The Essensia brand, which is owned by Albertsons, is an example of a(n) _____ brand.



a.

master

b.

private

c.

family

d.

manufacturers'

e.

equity


ANS: B

Manufacturers must decide whether to use their own names on their products or to distribute the products with a wholesaler's or retailer's brand name. If they use the name of a wholesaler or retailer, it is a private branding strategy.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

71. Which of the following statements describes an advantage to retailers associated with developing their own brands?



a.

Dealers must market the brand, thus cutting into the gross margin.

b.

Higher gross margins are available on private brands.

c.

Private brands, particularly those owned by discounters, are perceived to be of a higher quality.

d.

Dealers often buy in large quantities and thus always have a ready supply.

e.

Private brands are normally delivered more promptly by the manufacturer.

ANS: B


Private brands carry higher margins because manufacturers do not need to promote them. See Exhibit 9.2.

PTS: 1 REF: 136 OBJ: 09-4 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

72. A small chain of supermarkets in the western United States sells only manufacturers’ brands. Which of the following is one of the arguments you could have used to dissuade the supermarket chain owner from selling only manufacturers’ brands?



a.

A well-known manufacturers’ brand will not enhance the chain's image.

b.

Manufacturers rarely spend money advertising the brand name to consumers.

c.

Manufacturers typically offer a lower gross margin than could be earned on private label brands.

d.

Manufacturers force the chain to carry a large in-store inventory.

e.

Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic at best.

ANS: C


The dealer will get a higher gross margin on a private brand. See Exhibit 9.2.

PTS: 1 REF: 137 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

73. Tyler wants the Coca-Cola Barbie by Mattel for her birthday. This Mattel product contains items with the Coca-Cola trademark, and Barbie is wearing an outfit in Coca-Cola red and white. Because both brands are receiving equal treatment, this is most likely an example of:

a.

cooperative branding

b.

ingredient branding

c.

umbrella branding

d.

complementary branding

e.

family branding


ANS: A

Cooperative branding occurs when two brands receive equal treatment and borrow from each other’s brand equity.

PTS: 1 REF: 138 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

74. When a company markets several different products under the same brand name, it is referred to as a(n) _____ brand.



a.

family

b.

generic

c.

bargain

d.

dealer

e.

umbrella

ANS: A PTS: 1 REF: 137 OBJ: 09-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

75. Callaway & Kirk, a division of Callaway Arts & Entertainment, markets a collection of garden products, home décor, and apparel featuring Miss Spider and her friends, under the Sunny Patch brand name. This would be an example of a(n) _____ branding strategy.



a.

equity

b.

family

c.

private

d.

individual

e.

disintermediation


ANS: B

Family branding is the marketing of several different products under the same brand name.

PTS: 1 REF: 137 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

76. Most people recognize Butterball as a brand of turkey, but Butterball brand is also found on fresh turkey breast cuts, turkey sausages, ground turkey, lunchmeat cold cuts, fresh marinated bone-in, boneless, and whole chicken, frozen chicken products, and Butterball stuffing and gravy mixes. Butterball uses:



a.

dealer branding

b.

brand grouping

c.

family branding

d.

generic branding

e.

cobranding


ANS: C

Family branding refers to the strategy of marketing several different products under the same brand name.

PTS: 1 REF: 137 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

77. Procter & Gamble makes Camay soap for people concerned with soft skin and Safeguard for those who want deodorant protection. It is using a(n) _____ strategy.



a.

individual branding

b.

family branding

c.

combination branding

d.

trademarked branding

e.

private branding


ANS: A

An individual brand strategy allows for development of a unique brand image so as to distinguish the different products.

PTS: 1 REF: 137 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

78. Heinz is a leading global food manufacturer. It manufactures and markets Farleys (baby food), Linda MacCartney Foods (vegetarian meals), and Weight Watcher’s Foods (diet/slimming meals and supplements). The use of these brand names instead of the Heinz name is an example of a(n) _____ branding strategy.



a.

individual

b.

synergistic

c.

umbrella

d.

family

e.

piggyback


ANS: A

An individual brand strategy allows for development of a unique brand image so as to distinguish the different products.

PTS: 1 REF: 137 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

79. Maureen purchased a package of Bounce fabric sheets with Febreeze citrus scent. Since both brands were prominently listed on the package, this would be an example of:



a.

equity branding

b.

cobranding

c.

conjunctive branding

d.

private branding

e.

complementary branding

ANS: B


Using two or more brand names in conjunction is cobranding.

PTS: 1 REF: 138 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

80. Jennifer purchased Cascade 2in1 ActionPacs for her dishwasher. The packaging said the product combines the scrubbing power of Cascade with the grease fighting power of Dawn dishwashing detergent. What type of cobranding does this product represent?



a.

cooperative

b.

complementary

c.

piggyback

d.

ingredient

e.

synergistic

ANS: D


Using two or more brand names in conjunction is cobranding. Ingredient branding identifies the additional brand that makes up part of the product.

PTS: 1 REF: 138 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

81. Rosa's husband Phil has a cold. Rosa went to the store to buy something that would help Phil sleep. Rosa purchased Breathe Right nasal strips embedded with Vicks mentholated vapor rub. The package showed both the Breathe Right and the Vicks brand names. This is an example of _____ branding.



a.

equity

b.

ingredient

c.

family

d.

private

e.

functional


ANS: B

Using two or more brand names in conjunction is cobranding. Ingredient branding identifies the additional brand that makes up part of the product.

PTS: 1 REF: 138 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

82. A _____ is a legal term indicating the owner's exclusive right to use a brand name or other identifying mark.



a.

trademark

b.

patent

c.

brand

d.

private brand

e.

right of warranty

ANS: A PTS: 1 REF: 138-139 OBJ: 09-4 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

83. Rollerblades is a brand name for in-line skates. People often refer to Rollerblades as if it were the product name. The company that makes Rollerblades may someday find its brand name becoming a:



a.

equity brand

b.

certified name

c.

trademark

d.

faux brand

e.

generic product name

ANS: E


If a brand name becomes synonymous with the product category, it can become generic.

PTS: 1 REF: 139 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

84. When a product name becomes generic,:



a.

the firm must use black-and-white packaging

b.

competitors are prohibited by law from using the trademark

c.

the price will have to drop to appeal to lower-income consumers

d.

the product name is no longer recognized as the exclusive property of one firm

e.

a firm can reapply for exclusive trademark protection at the U.S. Patent Office

ANS: D


A generic product name can be used by any firm and is public property.

PTS: 1 REF: 139 OBJ: 09-4 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

85. Your boss has just told you to work on getting trademark protection for a new brand of backpack the firm has developed. The product is to be called the Thermos Pak and has a unique logo. You tell your boss that this protection will be difficult because:



a.

thermos is a generic product name

b.

of the catchy phrase you will need to promote the new brand

c.

you also use abbreviated versions of your brand name like TeePee and T.P.

d.

brand logo designs, even as unique as yours, cannot be trademarked

e.

the shape of your new and unusual product cannot be legally protected

ANS: A


A generic product name identifies a product by class or type and cannot be trademarked.

PTS: 1 REF: 139 OBJ: 09-4 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

86. Which of the following is NOT identified by the text as one of the major functions of packaging?



a.

contain the product

b.

guarantee product quality

c.

protect the product

d.

promote the product

e.

facilitate product storage, use, and convenience

ANS: B PTS: 1 REF: 140 OBJ: 09-5 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

87. Sherwin-Williams' paint brand, Dutch Boy, has come up with a packaging innovation that is getting rave reviews. The new Twist & Pour paint is packaged in an all-plastic gallon container with an easy twist-off lid, comfortable side handle, and even a pouring spout. There's no other paint product like it on the market. This innovative packaging was most likely designed for which of the following functions?



a.

facilitate product use and convenience

b.

contain and protect the product

c.

reduce environmental damage

d.

facilitate recycling

e.

promote the product

ANS: A


The other functions of packaging are containment and protection, promotion, the facilitation of recycling, and the reduction of environmental damage.

PTS: 1 REF: 140 OBJ: 09-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

88. You have to convince your boss that packaging will be the key to increasing sales of the company's new line of instant pudding mixes, so you tell him the packaging:



a.

will cause no environmental damage

b.

allows products to be shipped more easily

c.

conforms to government regulations

d.

can be used to help promote the product

e.

will conforms to all ethical standards

ANS: D


Promotion is a prime function of packaging that can help stimulate sales.

PTS: 1 REF: 140 OBJ: 09-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

89. While Starkist tuna is still available in cans, it is now also available in a 12-ounce family-size pouch. This change in packaging was the result of:



a.

a repositioning strategy

b.

a new strategy of segmenting its market

c.

a move toward functional obsolescence

d.

a brand equity strategy

e.

a master brand strategy

ANS: B


See C&H sugar and Campbell's examples in text.

PTS: 1 REF: 140-141 OBJ: 09-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

90. Notices on Gummy Bear brand vitamin bottles stating that the vitamins are the “best tasting children’s gummy vitamins” would most likely be an example of persuasive labeling if:



a.

the words "new" and "improved" were also included on the package

b.

the federal government had not passed the Informational Labeling Act of 1996

c.

consumers had not become saturated with promotional campaigns

d.

they were designed solely to promote the product

e.

they were intended to create brand equity

ANS: D


Persuasive labeling focuses on a promotional theme.

PTS: 1 REF: 140 OBJ: 09-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

91. Notices on Gummy Bear brand vitamin bottles stating that the vitamins have no artificial colors, flavors, or preservatives would most likely be an example of _____ labeling.



a.

UPC

b.

demographic

c.

informational

d.

functional

e.

environmental

ANS: C


Informational labeling is designed to help consumers make proper product selections.

PTS: 1 REF: 141 OBJ: 09-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

92. Which of the following statements about bar codes is true?



a.

Bar codes are also called universal pricing codes (UPCs).

b.

Bar codes were first used in 2000.

c.

Bar codes can be read by optical scanners.

d.

Bar codes cannot be used as a marketing research tool.

e.

None of these statements about bar codes is true.

ANS: C


Bar codes are the same as universal product codes. They were first developed in 1974. Also bar codes can be used in single-source research.

PTS: 1 REF: 141 OBJ: 09-5 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

93. The two types of package labeling in common usage today are:



a.

informational and persuasive

b.

promotional and nonpromotional

c.

functional and persuasive

d.

government-mandated and seller-controlled

e.

motivational and required

ANS: A PTS: 1 REF: 141 OBJ: 09-5 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

94. Labels that contain standard promotional claims like "new," "improved," and "super" are examples of _____ labels.



a.

descriptive

b.

functional

c.

repositioning

d.

informational

e.

persuasive

ANS: E


Persuasive labels primarily focus on a promotional theme or logo and try to sell the customer on a new or changed feature.

PTS: 1 REF: 141 OBJ: 09-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

95. Mia's new raincoat contains a label that reads "Professional dry clean only." This is an example of a(n) _____ label.



a.

data

b.

union mandated

c.

persuasive

d.

informational

e.

functional

ANS: D


Informational labeling is designed to help consumers in making proper product selections and to lower cognitive dissonance after the purchase. These labels often include care and use information and an explanation of construction standards.

PTS: 1 REF: 141 OBJ: 09-5 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

96. Which of the following is NOT one of the functions of universal product codes (UPCs)?



a.

allow scanners to match codes with brand names, package sizes, and prices

b.

print product and price information on cash register tapes

c.

assist retailers in preparing records of customer purchases

d.

allow retailers to accurately track sales and control inventories

e.

provide the detailed nutritional information required by the FDA

ANS: E


Universal product codes do not contain nutritional information.

PTS: 1 REF: 141 OBJ: 09-5 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

97. Which of the following does NOT need to be a branding and packaging consideration for companies considering global marketing?



a.

whether to use one brand name with no adaptation to local markets or to use one name but adapt and modify it for each local market

b.

translation or pronunciation problems with brand names

c.

different currencies in each country, exchange rates, and final retail prices

d.

whether to use different brand names in different markets for the same products

e.

product labeling, package aesthetics, and climate considerations

ANS: C


Currency and pricing considerations are not the prime considerations when considering global branding and packaging strategies.

PTS: 1 REF: 140-141 OBJ: 09-6 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

98. Which of the following is NOT an important consideration for a French manufacturer that wants to market its products in Canada?



a.

There may be aesthetic issues associated with developing a packaging strategy.

b.

Alternative messages could be developed for promoting the brand.

c.

Keeping the current brand names will allow the firm to capitalize on current domestic brand equity.

d.

Sturdy packaging will be needed to ship the products to Canada.

e.

Unique labels may be required by the Canadian government.

ANS: C


Brand equity in France will mean little to most Canada buyers since they will be unaware of it.

PTS: 1 REF: 141-142 OBJ: 09-6 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

99. Three aspects of packaging that are especially important in international marketing are labeling, aesthetics, and:



a.

price

b.

length of distribution channel

c.

counterfeiting potential

d.

warranties

e.

climate considerations

ANS: E PTS: 1 REF: 141-142 OBJ: 09-6 TYPE: Comp

TOP: AACSB Analytic | TB&E Model Product | TB&E Model Strategy

100. Lands' End, a catalog retailer, offers a written satisfaction guarantee on all merchandise it sells. In other words, Lands' End gives its customers a(n) _____ warranty.



a.

implied

b.

descriptive

c.

limited

d.

full

e.

express

ANS: E PTS: 1 REF: 142 OBJ: 09-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

101. The label on Darwin's new blazer that reads "Will Not Shrink" is an example of a(n) _____ warranty.



a.

descriptive

b.

limited

c.

implied

d.

express

e.

superfluous

ANS: D


An express warranty is any written guarantee.

PTS: 1 REF: 142 OBJ: 09-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

102. Realizing that its product needed a warranty to gain rapid market acceptance, the manufacturer of a high-tech system for investigating accidents produced:



a.

a statement for salespeople to read to prospective buyers

b.

an acknowledgment of company responsibilities for salespeople to build into presentations

c.

a label stating the product is of the highest quality and backed by years of manufacturing experience

d.

an advertisement stating that buyers would not perceive the purchase of this product as risky

e.

a written guarantee that the product would work as promised and that it is fit for the purpose for which it was sold

ANS: E


A written guarantee is an express warranty. This guarantee states what is contained in an implied warranty.

PTS: 1 REF: 142 OBJ: 09-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

103. The statement on the toothpaste box that brushing twice a day with this paste will remove 90 percent of all tartar from the user's teeth is an example of a(n):



a.

implied warranty

b.

functional label

c.

UPC disclaimer

d.

express warranty

e.

universal warranty

ANS: D


An express warranty is any written guarantee.

PTS: 1 REF: 142 OBJ: 09-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

104. Due to the existence of a(n) _____, Shannon had every reason to believe the antacid he purchased would relieve his stomach problems if he followed the directions on the box.



a.

implied warranty

b.

functional label

c.

persuasive label

d.

express warranty

e.

universal warranty

ANS: A


An implied warranty states that a product is fit for the purpose for which it was sold.

PTS: 1 REF: 142 OBJ: 09-7 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product | TB&E Model Customer

105. Under the _____, all sales have an implied warranty.



a.

Label Law

b.

Lanham Act

c.

Bill of Rights

d.

Good Housekeeping Seal

e.

Uniform Commercial Code

ANS: E


The Uniform Commercial Code regulates all sales.

PTS: 1 REF: 142 OBJ: 09-7 TYPE: Comp



TOP: AACSB Reflective Thinking | TB&E Model Product



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