Product, Services, and Brands: Building Customer Value

Chapter 7: Product, Services, and Brands: Building Customer Value

Chapter 7

Product, Services, and Brands: Building Customer Value

GENERAL CONTENT: Multiple-Choice Questions

1.We define a ______as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

1. private brand
2. service variability
3. service
4. product
5. service encounter

(d; p. 198; 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.

1. Line extensions
2. Services
3. Brands
4. Consumer products
5. Supplements

(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.

1. the market offering
2. brand equity
3. brand extension
4. co-branding
5. the market experience

(a; p. 199; Easy)

4.To differentiate themselves, many companies are moving to a new level in creating value for their customers. Going beyond products and services, they are developing and delivering customer ______.

1. quality
2. experiences
3. brands
4. product lines
5. events

(b; p. 199; Moderate)

5.Product planners need to think about products and services on three levels. The most basic level is the ______, which addresses the question, “What is the buyer really buying?”

1. actual product
2. augmented product
3. core benefit
4. co-branding
5. exchange

(c; p. 200; Moderate) {AACSB: Communication}

6.The third level of a product that product planners must build is a(n) ______around the core benefit and actual product that offers additional consumer services and benefits.

1. augmented product
2. brand equity
3. brand extension
4. industrial product
5. image

(a; p. 200; Moderate) {AACSB: Communication}

7.Product planners must design the actual product and find ways to ______it in order to create the bundle of benefits that will create the most customer value.

1. promote
2. package
3. brand
4. augment
5. present

(d; p. 200; Challenging) {AACSB: Communication}

8.Products and services fall into two broad classes based on the types of consumers that use them. Which of the following is one of these broad classes?

1. industrial products
2. specialty products
3. supplies and services
4. materials and parts
5. convenience products

(a; p. 200; Moderate)

9._____ are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products.

1. Services
2. Consumer products
3. Line extensions
4. Industrial products
5. Straight extensions

(b; p. 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 about these products.

1. Shopping products
2. Convenience products
3. Unsought products
4. Industrial products
5. Line extensions

(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.

1. Shopping products
2. Unsought products
3. Specialty products
4. Industrial products
5. Line extensions

(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.

1. Specialty products
2. Line extensions
3. Unsought products
4. Shopping products
5. Convenience products

(c; p. 201; Easy)

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

1. Unsought products
2. Specialty products
3. Shopping products
4. Industrial products
5. Accessories

(d; p. 201; Easy)

14.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.

1. consumers
2. industrial users
3. brand extensions
4. co-branders
5. wholesalers

(b; p. 202; Challenging) {AACSB: Communication}

15._____ are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment.

1. Materials
2. Parts
3. Capital items
4. Specialty items
5. Supplies

(c; p. 202; Moderate)

16._____ consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.

1. Person marketing
2. Organization marketing
3. Internal marketing
4. Service variability
5. Intelligence marketing

(b; p. 202; Moderate) {AACSB: Communication}

17._____ consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.

1. Corporate image advertising
2. Organization marketing
3. Person marketing
4. Social marketing
5. Intermarket marketing

(c; p. 203; Moderate) {AACSB: Communication}

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

1. Idea marketing
2. Place marketing
3. Social marketing
4. Interactive marketing
5. Organization marketing

(b; p. 203; Moderate) {AACSB: Communication}

19._____ 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.

1. Unsought product marketing
2. Internal marketing
3. Social marketing
4. Product line
5. Interactive marketing

(c; p. 203; Moderate) {AACSB: Communication}

20.Public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are all examples of ______.

1. specialty products
2. social marketing
3. shopping products
4. consumer products
5. responsibility marketing

(b; p. 203; Moderate) {AACSB: Reflective Thinking}

21.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.

1. private brands
2. product attributes
3. consumer products
4. product mixes
5. marketing tools

(b; p. 204; Challenging) {AACSB: Communication}

22._____ is one of the marketer’s major positioning tools because it has a direct impact on product or service performance; thus, it is closely linked to customer value and satisfaction.

1. Packaging
2. Product quality
3. Social marketing
4. Specialty marketing
5. Position marketing

(b; p. 204; Moderate) {AACSB: Communication}

23._____ is an approach in which all the company’s people are involved in constantly improving the products, services, and business processes.

1. Product quality
2. Brand equity
3. Total quality management
4. Specialty product marketing
5. Positioning

(c; p. 204; Easy)

24.What are the two dimensions of product quality?

1. performance and resistance
2. level and consistency
3. conformance and style
4. design and innovation
5. features and design

(b; p. 204; Moderate)

25.Which of the following types of quality refers to freedom from defects and consistency in delivering a targeted level of performance?

1. private brand
2. product
3. total quality management
4. conformance
5. adherence

(d; p. 204; Challenging)

26.The starting point for the product attribute of various ______is a stripped-down model without any extras.

1. co-brandings
2. features
3. product quality
4. service variability
5. markets

(b; p. 204; Moderate)

27.In assessing which new features to add to a product, a company must weigh each feature’s ______to customers versus its ______to the company.

1. cost; line extension
2. cost; service
3. value; cost
4. service; line extension
5. equity; cost

(c; p. 205; Challenging)

28.A sensational ______may grab consumers’ attention and produce pleasing aesthetics, but it does not necessarily improve a product’s performance.

1. design
2. style
3. experience
4. service-profit chain
5. augmented product

(b; p. 205; Moderate) {AACSB: Communication}

29._____ contributes to a product’s usefulness as well as to its looks.

1. Style
2. Design
3. Package
4. Brand
5. Functionality

(b; p. 205; Moderate)

30.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.

1. service
2. brand
3. co-branding
4. internal marketing
5. external marketing

(b; p. 206; Easy) {AACSB: Communication}

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

1. Packaging
2. Product line
3. Service
4. Branding
5. Labeling

(a; p. 206; Easy)

32.In recent years, product safety and environmental responsibility have become major ______concerns.

1. branding
2. packaging
3. labeling
4. service
5. product line

(b; p. 206; Moderate) {AACSB: Ethical Reasoning}

33.At the very least, the ______identifies the product or brand. It might also describe several things about the product.

1. line extension
2. social marketing
3. label
4. specialty product
5. package

(c; p. 207; Easy) {AACSB: Communication}

34.The ______requires sellers to provide detailed nutritional information on food products.

1. Fair Packaging and Labeling Act of 1966
2. Nutritional Labeling and Educational Act of 1990
3. Labeling Act of 1970
4. Packaging Act of 1970
5. Federal Trade Commission Act of 1914

(b; p. 207; Moderate) {AACSB: Ethical Reasoning}

35._____ has been affected by the need to include unit pricing, open dating, and nutritional information.

1. branding
2. packaging
3. labeling
4. product line filling
5. product mixing

(c; p. 207; Moderate) {AACSB: Communication}

36.Many companies now use a combination of phone, e-mail, fax, Internet, and other technologies to provide ______.

1. labeling information
2. brand equity
3. support services
4. packaging advantages
5. product mixes

(c; p. 207; Moderate) {AACSB: Use of IT}

37.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.

1. product line
2. line extension
3. private brand
4. convenience product
5. product bandwidth

(a; p. 208; Moderate)

38.The major product line decision involves ______.

1. line stretching
2. moving the line upward or downward
3. product line filling
4. product line length
5. product packaging

(d; p. 208; Challenging)

39.Berkowitz Piano Company can expand its product line in one of two common ways. Which of the following is one of the ways that might prove productive?

1. Internal marketing
2. Line filling
3. Product mix
4. Social marketing
5. Line mixing

(b; p. 208; Moderate) {AACSB: Reflective Thinking}

40.An alternative to product line stretching is ______, adding more items within the present range of the line.

1. product mix
2. interactive marketing
3. product line filling
4. co-branding
5. service marketing

(c; p. 208; Moderate)

41.When a company lengthens its product line beyond its current range, it is ______.

1. product line filling
2. product line stretching
3. product mixing
4. increasing product depth
5. building brand equity

(b; p. 209; Moderate)

42.An organization with several product lines has a ______, which consists of all the product lines and items that a particular seller offers for sale.

1. product mix
2. brand line
3. consumer mix
4. packaging mix
5. line extension

(a; p. 209; Moderate)

43.Product mix ______refers to the number of different product lines the company carries. Procter & Gamble markets 250 brands organized into many product lines.

1. length
2. height
3. width
4. perimeter
5. depth

(c; p. 210; Moderate) {AACSB: Reflective Thinking}

44.Product mix ______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.

1. length
2. depth
3. height
4. width
5. perimeter

(b; p. 210; Challenging) {AACSB: Reflective Thinking}

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.

1. depth
2. length
3. width
4. consistency
5. perimeter

(d; p. 210; Moderate)

46.A company can increase its business in four ways. Which is not one of these ways?

1. It can add new product lines, thus widening its product mix.
2. It can lengthen its existing product lines.
3. It can add more versions of each product and thus deepen its product mix.
4. It can discontinue some of its lines.
5. It can increase the consistency of its product mix.

(d; p. 210; Moderate) {AACSB: Analytic Thinking}

47.Some analysts see ______as the major enduring asset of a company, outlasting the company’s specific products and facilities.

1. brands
2. convenience products
3. specialty products
4. unsought products
5. staples

(a; p. 210; Easy) {AACSB: Communication}

48.A key element in a company’s relationship with consumers, a ______represents consumers’ perceptions and feelings about a product and its performance.

1. product line
2. product experience
3. brand
4. service
5. product attribute

(c; p. 210; Moderate) {AACSB: Communication}

49.Which of the following is not one of the consumer perception dimensions used by Young & Rubicam’s Brand Asset Valuator to measure brand strength?

1. brand differentiation
2. brand knowledge
3. brand valuation
4. brand esteem
5. brand relevance

(c; p. 211; Moderate) {AACSB: Communication}

50.The total financial value of a brand is measured through the process of brand ______.

1. differentiation
2. valuation
3. extensions
4. positioning
5. equity

(b; p. 211; Moderate) {AACSB: Communication}

51.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.

1. the customer mix
2. customer equity
3. line equity
4. service variability
5. the service encounter

(b; p. 212; Challenging) {AACSB: Communication}

52.Which of the following is the lowest level on which marketers can position their brands in target customers’ minds?

1. interactive marketing
2. internal marketing
3. product attributes
4. strong beliefs and values
5. added service

(c; p. 212; Moderate) {AACSB: Communication}

53.The strongest brands go beyond attributes or benefit positioning; they are positioned on ______.

1. desirable benefit
2. good packaging
3. service inseparability
4. strong beliefs and values
5. customer image

(d; p. 214; Moderate) {AACSB: Communication}

54.All of the following are a manufacturer’s sponsorship options for a product except ______.

1. manufacturers’ brand
2. multibrands
3. private brand
4. licensed brand
5. co-branding

(b; p. 214; Moderate)

55.In the competition between ______and ______brands, retailers have the advantages of controlling what products will be stocked, where products will be stocked, and what prices will be charged.

1. national; manufacturers’
2. store; private
3. national; private
4. store; licensed
5. private; distributor

(c; p. 216; Moderate)

56.Which of the following is not a desirable quality for a brand name?

1. It should suggest something about the product’s benefits and qualities.
2. It should be easy to pronounce, recognize, and remember.
3. The brand should almost always be a long word to get attention.
4. The name should translate easily into foreign languages.
5. It should be distinctive.

(c; p. 217; Moderate) {AACSB: Communication}

57.An increasing number of retailers and wholesalers have created their own ______, also called store brands.

1. unsought products
2. private brands
3. specialty products
4. service variability
5. shopping products

(b; p. 215; Easy)

58.For a fee, some companies ______names or symbols previously created by other manufacturers, names of well-known celebrities, and/or characters from popular movies and books, any of which can provide an instant and proven brand name.

1. service
2. license
3. market
4. package
5. brand

(b; p. 216; Moderate) {AACSB: Communication}

59._____ occurs when two established brand names of different companies are used on the same product.

1. A brand extension
2. Brand equity
3. Co-branding
4. Internal marketing
5. Cannibalization

(c; p. 216; Moderate) {AACSB: Communication}

60.In most ______situations, one company licenses another company’s well-known brand to use in combination with its own.

1. brand extension
2. brand equity
3. co-branding
4. internal marketing
5. line extension

(c; p. 217; Easy) {AACSB: Communication}

61.Which of the following is an advantage offered by co-branding?

1. Manufacturers do not have to invest in creating their own brand names.
2. Retailers have exclusive products that cannot be purchased from competitors.
3. A company can expand its existing brand into a category it otherwise might have difficulty entering alone.
4. Advertising, sales, promotion, and marketing must be carefully coordinated.
5. Brand equity is stabilized.

(c; p. 217; Moderate) {AACSB: Analytic Thinking}

62.A company has four choices when it comes to developing brands. Which is not one of those choices?

1. line extension
2. brand extension
3. multibrands
4. width and depth extension
5. new brands

(d; p. 217; Moderate) {AACSB: Analytic Thinking}

63._____ 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.

1. Line extensions
2. Product mix
3. Interactive marketing
4. Service variability
5. Service intangibility

(a; p. 217; Moderate)

64.A ______involves the use of a successful brand name to launch new or modified products in a new category.

1. line extension
2. product line
3. brand extension
4. private brand
5. brand symbol

(c; p. 218; Moderate)

65.Which of the following is a potential drawback of multibranding?

1. Consumers may become confused about the image of the main brand.
2. An overextended brand name might lose its specific meaning for consumers.
3. Different product features can appeal to consumers with different buying motives.
4. The company’s resources may be spread over too many brands.
5. The company can occupy more retail shelf space.

(d; p. 218; Challenging) {AACSB: Analytic Thinking}

66.Which type of strategy involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories?

1. megabrand
2. service inseparability
3. social marketing
4. unsought product
5. undifferentiated

(a; p. 218; Moderate)

67.A brand’s positioning must be continuously communicated to consumers, so major brand marketers often spend huge amounts on advertising to create brand ______and to build preference and loyalty.

1. extension
2. awareness
3. packaging
4. internal marketing
5. preference

(b; p. 219; Easy) {AACSB: Communication}

68.Advertising campaigns can help to create name recognition, brand knowledge, and maybe even some brand preference. However, brands are not maintained by advertising but by the ______.

1. marketing experience
2. line extensions
3. brand experience
4. product mix
5. word-of-mouth elements

(c; p. 219; Moderate) {AACSB: Communication}

69.A company must consider four special service characteristics when designing marketing programs. Which is not one of these characteristics?

1. intangibility
2. inseparability
3. perishability
4. interactive marketing
5. variability

(d; p. 219; Challenging) {AACSB: Communication}

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

1. Service inseparability
2. Service variability
3. Service intangibility
4. Service perishability
5. Service heterogeneity

(c; p. 219; Moderate)

71._____ means that services cannot be separated from their providers, whether the providers are people or machines.

1. Service intangibility
2. Service inseparability
3. Service variability
4. Service perishability
5. Service heterogeneity

(b; p. 220; Moderate)

72.Which of the following is not one of the links in the service-profit chain, linking service firm profits with employee and customer satisfaction?

1. internal service quality
2. evidence management
3. satisfied and productive employees
4. satisfied and loyal customers
5. healthy service profits and growth

(b; p. 221; Challenging) {AACSB: Analytic Thinking}

73.Through ______, the service firm trains and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

1. service inseparability
2. service intangibility
3. service variability
4. internal marketing
5. external marketing

(d; p. 222; Moderate)

74.Because service quality depends on the quality of buyer-seller interaction during the service encounter, service marketers use ______to train employees in the art of interacting with customers to satisfy their needs.

1. internal marketing
2. external marketing
3. interactive marketing
4. service differentiation
5. service productivity

(c; p. 222; Moderate) {AACSB: Communication}

75.All of the following are methods for developing a differentiated service offer, delivery, or image except ______.

1. offering innovative features
2. increasing the quantity of service by giving up some quality
3. having more reliable customer-contact people
4. developing symbols and branding
5. designing a superior delivery process

(b; p. 222; Moderate) {AACSB: Analytic Thinking}