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Marketing Revision Part II Chapter 8 Product, Services, and Branding Strategies: Building Customer Value 1) We define a ________ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. A) private brand B) service variability C) service D) product E) service encounter Answer: D Diff: 1 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Line extensions B) Services C) Brands D) Consumer products E) Supplements Answer: B Diff: 1 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 3) A product is a key element in the ________. At one extreme, it may consist of pure tangible goods or at the other extreme, pure services. A) market offering B) brand equity C) brand extension D) co-branding E) value chain Answer: A Diff: 1 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 4) To differentiate themselves, many companies are going beyond products and services, they are developing and delivering customer ________. A) quality B) experiences C) brands D) product lines E) events Answer: B Diff: 2 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 5) Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the ________, which addresses the question, "What is the buyer really buying?" A) actual product B) augmented product C) core customer value D) co-branding E) exchange Answer: C Diff: 2 Page Ref: 225 AACSB: Communication Skill: Concept Objective: 8-1 6) Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________ such as quality, features, and style and design. A) private brands B) product attributes C) consumer products D) product mixes E) marketing tools Answer: B Diff: 3 Page Ref: 229 AACSB: Communication Skill: Concept Objective: 8-2 7) ________ is one of the marketers major positioning tools because it has a direct impact on product or service performance; it is therefore closely linked to customer value and satisfaction. A) Packaging B) Product quality C) Total quality management D) Specialty product marketing E) Positioning Answer: B Diff: 2 Page Ref: 229 AACSB: Communication Skill: Concept Objective: 8-2 8) ________ is an approach in which all the companys people are involved in constantly improving the products, services, and business processes. A) Product quality B) Brand equity C) Total quality management D) Specialty product marketing E) Positioning Answer: C Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 9) What are the two dimensions of product quality? A) consistency and level B) performance and resistance C) design and innovation D) conformance and style E) feature and design Answer: A Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 10) Which of the following types of quality refers to freedom from defects and consistency in delivering a targeted level of performance? A) private brand B) product C) total quality management D) conformance E) adherence Answer: D Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 11) Some analysts see ________ as the major enduring asset of a company, outlasting the companys specific products and facilities. A) brands B) convenience products C) specialty products D) unsought products E) staples Answer: A Diff: 1 Page Ref: 235 AACSB: Communication Skill: Concept Objective: 8-3 12) A key element in a companys relationship with consumers, a ________ represents consumers perceptions and feelings about a product and its performance. A) product line B) product experience C) brand D) service E) product attribute Answer: C Diff: 2 Page Ref: 236 AACSB: Communication Skill: Concept Objective: 8-3 13) Which of the following is NOT one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? A) brand differentiation B) brand knowledge C) brand valuation D) brand esteem E) brand relevance Answer: C Diff: 3 Page Ref: 236 AACSB: Communication Skill: Concept Objective: 8-3 14) The total financial value of a brand is estimated through the process of brand ________. A) differentiation B) valuation C) extensions D) positioning E) equity Answer: B Diff: 2 Page Ref: 236 AACSB: Communication Skill: Concept Objective: 8-3 15) The fundamental asset underlying brand equity is ________–-the value of the customer relationships that the brand creates. A powerful brand is important, but what it really represents is a set of loyal consumers. A) the customer mix B) customer equity C) line equity D) service variability E) the service encounter Answer: B Diff: 3 Page Ref: 238 AACSB: Communication Skill: Concept Objective: 8-3 16) ________ means that services cannot be separated from their providers, whether the providers are people or machines. A) Service intangibility B) Service inseparability C) Service variability D) Service perishability E) Service heterogeneity Answer: B Diff: 1 Page Ref: 245 Skill: Concept Objective: 8-4 17) Which of the following is NOT one of the links in the service-profit chain, linking service firm profits with employee and customer satisfaction? A) internal service quality B) evidence management C) satisfied and productive service employees D) satisfied and loyal customers E) healthy service profits and growth Answer: B Diff: 3 Page Ref: 246 Skill: Concept Objective: 8-4 18) Through ________, the service firm trains and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. A) service inseparability B) service intangibility C) service variability D) internal marketing E) external marketing Answer: D Diff: 2 Page Ref: 247 Skill: Concept Objective: 8-4 19) 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. A) interactive marketing B) service differentiation C) service productivity D) internal marketing E) external marketing Answer: A Diff: 2 Page Ref: 247 Skill: Concept Objective: 8-4 20) All of the following are methods for developing a differentiated service offer, delivery, or image EXCEPT ________. A) offering innovative features B) increasing the quantity of service by giving up some quality C) having more reliable customer-contact people D) developing symbols and branding E) designing a superior delivery process Answer: B Diff: 2 Page Ref: 248 Skill: Concept Objective: 8-4 21) A service is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. Answer: FALSE Diff: 1 Page Ref: 224 Skill: Concept Objective: 8-1 22) Sony offers consumers more than just camcorders; it provides consumers with a complete solution to their picture-taking problems. This offering is called an augmented product. Answer: TRUE Diff: 3 Page Ref: 225 AACSB: Reflective Thinking Skill: Application Objective: 8-1 23) Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. Answer: FALSE Diff: 1 Page Ref: 226 Skill: Concept Objective: 8-1 24) Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Answer: TRUE Diff: 2 Page Ref: 226 Skill: Concept Objective: 8-1 25) Style is a larger concept than design. Design describes the appearance of a product. Answer: FALSE Diff: 3 Page Ref: 230 Skill: Concept Objective: 8-2 26) Branding can add consumer value to a product. Answer: TRUE Diff: 2 Page Ref: 231 AACSB: Communication Skill: Concept Objective: 8-2 27) Because so many purchase decisions are made in stores, a products packaging may be a sellers last and best chance to influence consumers. Answer: TRUE Diff: 2 Page Ref: 232 AACSB: Communication Skill: Concept Objective: 8-2 28) Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics. Answer: FALSE Diff: 2 Page Ref: 233 AACSB: Communication Skill: Concept Objective: 8-2 29) Quaker produces a variety of cereals. This variety is called its product line. Answer: TRUE Diff: 2 Page Ref: 234 AACSB: Reflective Thinking Skill: Application Objective: 8-2 30) Cannibalization and customer confusion about product differentiation are two potential results if line filling is overdone. Answer: TRUE Diff: 3 Page Ref: 234 Skill: Concept Objective: 8-2 Chapter 9 New-Product Development and Product Life-Cycle Strategies 1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and brand management C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development Answer: C Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products Answer: B Diff: 1 Page Ref: 258 Skill: Concept Objective: 9-1 3) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising Answer: A Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face? A) All products eventually decline. B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C) A firm must be good at developing new products to replace aging ones. D) A firm must be good at adapting its marketing strategies. E) It is difficult to plot the stages as a product goes through them. Answer: E Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 5) The creation of a successful new product depends on a companys understanding of its ________ and its ability to deliver ________ to customers. A) competitors, distributors, and employees; new styles B) customers, brands, products; product images C) customers, competitors, and markets; superior value D) product, marketing mix, and marketing strategy; functional features E) product life cycle, legal responsibilities, and social responsibilities; innovations Answer: C Diff: 2 Page Ref: 259 Skill: Concept Objective: 9-2 6) A ________ is the way consumers perceive an actual or potential product. A) product idea B) product concept C) product image D) test market E) concept test Answer: C Diff: 1 Page Ref: 262 AACSB: Communication Skill: Concept Objective: 9-2 7) An attractive idea must be developed into a ________. A) product idea B) product concept C) product image D) test market E) product strategy Answer: B Diff: 2 Page Ref: 262 Skill: Concept Objective: 9-2 8) ________ calls for testing new-product concepts with groups of target consumers. A) Concept development B) Concept testing C) Idea generation D) Idea screening E) Test marketing Answer: B Diff: 1 Page Ref: 263 Skill: Concept Objective: 9-2 9) In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers. A) physical or symbolic B) prototype C) final D) market-tested E) commercial Answer: A Diff: 2 Page Ref: 263 Skill: Concept Objective: 9-2 10) With what groups do firms conduct concept testing for new products? A) suppliers B) employees C) target customers D) manufacturers E) competitors Answer: C Diff: 3 Page Ref: 263 Skill: Concept Objective: 9-2 11) Following the decision to "time" the introduction of the new product, a company must decide ________ to launch the new product. A) where B) how C) to what degree D) why E) all of the above Answer: A Diff: 2 Page Ref: 268 Skill: Concept Objective: 9-2 12) Which of the following is necessary for successful new-product development? A) a holistic and sequential product development approach B) a customer-centered, team-based, systematic approach C) a team-based, innovation-management approach D) a market pioneer mindset and a holistic approach E) an innovation management system and sequential product development Answer: B Diff: 3 Page Ref: 268 Skill: Concept Objective: 9-2 13) Which stage of the new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences? A) concept testing B) new-product development C) customer-centered new-product development D) sequential product development E) team-based new-product development Answer: C Diff: 1 Page Ref: 269 Skill: Concept Objective: 9-2 14) ________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. A) Team-based product development B) Simultaneous product development C) Sequential product development D) Product life-cycle analysis E) Micromarketing Answer: C Diff: 2 Page Ref: 269 Skill: Concept Objective: 9-2 15) In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called ________. A) simulated new-product development B) sequential product development C) team-based new-product development D) phased-in new-product development E) market development Answer: C Diff: 1 Page Ref: 270 Skill: Concept Objective: 9-2 16) Which stage of the typical consumer product life cycle is out of order below? A) product development B) introduction C) maturity D) growth E) decline Answer: C Diff: 2 Page Ref: 273 Skill: Concept Objective: 9-3 17) Which of the following CANNOT be described using the PLC concept? A) product class B) product form C) product image D) brand E) styles Answer: C Diff: 3 Page Ref: 273 Skill: Concept Objective: 9-3 18) All of the following are accurate descriptions of a style product, EXCEPT which one? A) Style products appear in home, clothing, and art. B) Once a style is invented, it may last for generations. C) A style has a cycle showing several periods of renewed interest. D) Styles last only a short time and tend to attract only a limited following. E) Styles are basic and distinctive modes of expression. Answer: D Diff: 2 Page Ref: 274 Skill: Concept Objective: 9-3 19) The PLC concept can be applied by marketers as a useful framework for describing how ________. A) to forecast product performance B) to develop marketing strategies C) products and markets work D) concept testing is conducted E) product ideas are developed Answer: C Diff: 3 Page Ref: 274 Skill: Concept Objective: 9-3 20) Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n) ________ of the products life cycle. A) mirror image; cause B) cause; result C) result; mirror image D) beginning; end E) purpose; effect Answer: B Diff: 3 Page Ref: 274 Skill: Concept Objective: 9-3 21) Manufacturers must comply with specific laws regarding ________. A) price structures B) product quality and safety C) product placement D) distribution channels E) product life cycles Answer: B Diff: 1 Page Ref: 280 AACSB: Ethical Reasoning Skill: Concept Objective: 9-4 22) Because of ________, a company cannot make its product illegally similar to a competitors already established product. A) anti-monopoly laws B) patent laws C) the Consumer Product Safety Act D) product warranties E) product liability Answer: B Diff: 1 Page Ref: 280 AACSB: Ethical Reasoning Skill: Concept Objective: 9-4 23) Which of the following best describes the role of a product steward? A) to protect consumers from harm B) to evaluate new-product ideas against a set of general criteria C) to develop a new-product concept into a physical product D) to protect the company from liability by identifying and solving potential product problems E) A and D Answer: E Diff: 3 Page Ref: 280 AACSB: Ethical Reasoning Skill: Concept Objective: 9-4 24) The advantages of standardizing an international product include all of the following EXCEPT ________. A) the development of a consistent image B) lower product design costs C) the adaptation of products to different markets D) decreased manufacturing costs E) lower marketing costs Answer: C Diff: 2 Page Ref: 281 Skill: Concept Objective: 9-4 25) Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess ________. A) product standardization B) market rollout C) the product life cycle D) packaging E) styles Answer: D Diff: 2 Page Ref: 281 AACSB: Multicultural and Diversity Skill: Concept Objective: 9-4 26) Blair Housewares wants to add new lines of products to its 46-store chain. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number. Answer: FALSE Diff: 2 Page Ref: 262 AACSB: Analytic Skills Skill: Application Objective: 9-2 27) A product idea is an idea for a possible product a company can offer the market, while a product concept is a detailed version of the idea stated in meaningful consumer terms. Answer: TRUE Diff: 3 Page Ref: 262 Skill: Concept Objective: 9-2 28) Concept testing works best with people who are familiar with the new idea and the new products purpose. This generally includes top management, the sales force, and research and development. Answer: FALSE Diff: 3 Page Ref: 263 Skill: Concept Objective: 9-2 29) GreenTree Lawn and Garden Products is engaged in marketing strategy development. Management should first create a statement outlining the products planned price, distribution, and marketing budget for the first year. Answer: FALSE Diff: 3 Page Ref: 263 AACSB: Analytic Skills Skill: Application Objective: 9-2 30) GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the companys objectives. This activity is called business product development. Answer: FALSE Diff: 2 Page Ref: 264 AACSB: Reflective Thinking Skill: Application Objective: 9-2 Chapter 10 Pricing Products: Understanding and Capturing Customer Value 1) ________ is the amount of money charged for a product or service. A) Experience curve B) Demand curve C) Price D) Wage E) Salary Answer: C Diff: 1 Page Ref: 290 Skill: Concept Objective: 10-1 2) Price is the only element in the marketing mix that produces ________. A) revenue B) variable costs C) expenses D) o