Marketing Chapter 8

Exam
Name___________________________________
1.
Which of the following is true with regard to products?
A)
Products refer to only those activities that are essentially intangible.

B)
Products are not meant for sale in the market.
C)
Products include services, events, persons, places, organizations, ideas, or a mixture of these.
D)
The quality of products is far more difficult to measure than that of services.
E)
Products do not include experiences, organizations, persons, places, and ideas.
Page Ref: 248
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
2.
________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially
intangible and do not result in the ownership of anything.
A)
Specialty products
B)
Services
Liabilities
C)
D)
Consumer products
E)
Brands
Page Ref: 248

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
3.
Which of the following exemplifies a service?
A)
laptop
B)
retail
C)
candy
D)
car
E)
laundry detergent
Page Ref: 248

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Moderate
4.
Marketing mix planning begins with ________.
A)
building an offering that brings value to target customers

B)
selecting the right channel for distribution of the product
C)
finding a suitable promotion strategy for the product
D)
setting a reasonable price for the product

E)
calculating the total costs involved in manufacturing the product
Page Ref: 249
AACSB:
Skill: Concept
Objective: 8-1
5.
Which of the following is true with regard to services?
A)
Services can be easily separated from their providers.

B)
Services are a form of product that consists of activities, benefits, or satisfactions offered for sale.
C)
Services can be stored for later use.

D)
Services are tangible product offerings whose quality can be easily measured.
E)
Services refer to purely tangible products.
Page Ref: 248
AACSB:
Skill: Concept
Objective: 8-1
6.
Which of the following is an example of a pure tangible good?
A)
a credit card
B)
a bag of potato chips

C)
a laptop with a comprehensive warranty for three years

D)
an agency that offers free legal advice

E)
an online shoe retailer that provides free home delivery
Page Ref: 249
AACSB: Analytic Skills
Skill: Concept
Objective: 8-1
7.
Which of the following product offerings is intangible?
A)
a package of laundry detergent

B)
a wool jacket
C)
a gold ring
D)
an ink cartridge for a printer

E)
a taxi ride
Page Ref: 248-249

Skill: Concept
Objective: 8-1
8.
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)
core customer value

B)
exchange value
C)
actual product
D)
co-branding
E)
augmented product
Page Ref: 249

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
9.
Product planners need to consider products and services on three levels. At the second level, product planners must
________.
A)
offer additional product support and after-sale services

B)
define the problem-solving benefits or services that consumers seek
C)
identify the core customer value that consumers seek from the product
D)
find out how they can create the most satisfying brand experience
E)
turn the core benefit into an actual product
Page Ref: 249
AACSB:
Skill: Concept
Objective: 8-1
10.
Product planners need to consider products and services on three levels. At the final level, product planners must build
________.
A)
an augmented product
B)
a basic product
C)
an actual product
D)
a brand personality
E)
core customer value
Page Ref: 250

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
11.
________ are industrial products.
A)
Retail items
B)
Capital items
C)
Convenience products
D)
Shopping products
E)
Specialty products
Page Ref: 252

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
12.
Consumer products refer to ________.
A)
primarily intangible offerings from marketers

B)
products that aid in the consumer's production or operations, including installations and accessory equipment
C)
products and services bought by final consumers for personal consumption

D)
products purchased by consumers for further processing or for use in conducting a business
E)
raw materials as well as manufactured materials and parts
Page Ref: 250
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
13.
________ are consumer products and services that customers usually buy frequently, immediately, and with minimal
comparison and buying effort.
A)
Unsought products
B)
Capital items
C)
D)
Supplies and repair services

E)
Shopping products
Page Ref: 251

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
14.
Which of the following is an example of a convenience product?
A)
life insurance
B)
refrigerator
furniture
fast food
C)
D)
E)
diamond ring
Page Ref: 251

Skill: Concept
Objective: 8-1
15.
________ are less frequently purchased consumer products and services that customers compare carefully on suitability,
quality, price, and style.
A)
Unsought products
B)
Supplies and repair services
C)
Shopping products
D)
Capital items
E)
Page Ref: 251

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
16.
Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she
plans to spend substantial time and effort in gathering information and making product comparisons before making the
actual purchase. In this instance, Erica is planning to buy a ________ product.
A)
convenience
unsought
exclusive
shopping
specialty
B)
C)
D)
E)
Page Ref: 251

Skill: Application
Objective: 8-1
17.
________ are consumer products and services with unique characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort.
A)
B)
Shopping products
C)
Unsought products
D)
Specialty products
E)
Capital items
Page Ref: 251

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
18.
A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania from locally grown wood, is an
example of a(n) ________.
A)
specialty product
B)
convenience product
C)
product attribute
D)
capital item
service
E)
Page Ref: 251

Skill: Application
Objective: 8-1
19.
________ are consumer products that the consumer either does not know about or knows about but does not normally
think about buying.
A)
Specialty products
B)
C)
Capital items
D)
Unsought products
E)
Shopping products
Page Ref: 251

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
20.
________ are those products purchased for further processing or for use in conducting a business.
A)
Industrial products
B)
C)
Unsought products
D)
Specialty products
E)
Shopping products
Page Ref: 251

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
21.
________ are the major marketing factors in the sale of most manufactured materials and parts.
A)
Public relations and brand management
B)
Price and service
C)
Branding and advertising

D)
Sales promotion and advertising

E)
Branding and packaging
Page Ref: 252
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
22.
________ are industrial products that aid in the buyer's production or operations, including installations and accessory
equipment.
A)
B)
Capital items
C)
Unsought products
D)
Repair items
E)
Specialty items
Page Ref: 252

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
23.
Installations consist of ________.
A)
major purchases such as elevators

B)
highly priced luxury goods such as Rolex watches
C)
portable factory equipment such as hand tools

D)
products such as insurance

E)
portable office equipment such as computers
Page Ref: 252
AACSB:
Skill: Concept
Objective: 8-1
24.
Lubricants, coal, paper, and pencils are examples of ________.
A)
installations
B)
capital items
C)
operating supplies
D)
raw materials
E)
specialty products
Page Ref: 252

AACSB:
Skill: Concept
Objective: 8-1
25.
________ consists of activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers
toward an organization.
A)
Puffery
B)
Organizational learning
C)
Niche marketing
D)
Social networking
E)
Organization marketing
Page Ref: 252
AACSB: Communication Abilities

Skill: Concept
Objective: 8-1
Difficulty: Easy
26.
The advertising slogan, "We bring good things to life," used by General Electrics to market themselves, is an example of
________ marketing.
A)
corporate image
B)
place
C)
internal
niche
D)
E)
person
Page Ref: 252

Skill: Application
Objective: 8-1
27.
________ consists of activities undertaken to create, maintain, or change attitudes toward particular people. People
ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use it to
build their reputations.
A)
Corporate image marketing

B)
Social marketing
C)
Place marketing
D)
Person marketing
E)
Page Ref: 252

Skill: Concept
Objective: 8-1
Difficulty: Easy
28.
A company that uses well-known celebrities to help sell its products is using ________.
A)
organization marketing
B)
social marketing
C)
interactive marketing
D)
person marketing
E)
internal marketing
Page Ref: 252

Skill: Concept
Objective: 8-1
29.
________ involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions.
A)
Interactive marketing
B)
Social marketing
C)
Place marketing
D)
E)
Idea marketing
Page Ref: 252

Skill: Concept
Objective: 8-1
Difficulty: Easy
30.
Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________.
A)
internal marketing
B)
place marketing
C)
organization marketing
D)
person marketing
E)
corporate image marketing
Page Ref: 252-253

Skill: Application
Objective: 8-1
31.
Advertising campaigns involving issues ranging from health care, education, and environmental sustainability to human
rights and personal safety can be classified under ________.

A)
social marketing
B)
C)
internal marketing
D)
person marketing
E)
place marketing
Page Ref: 253

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
32.
Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes in its ad campaigns to help sell its
products. This is an example of ________ marketing.
A)
internal
place
B)
C)
organization
D)
person
social
E)
Page Ref: 252

Skill: Application
Objective: 8-1
33.
Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________
marketing.
A)
internal
social
person
B)
C)
D)
organization
E)
place
Page Ref: 253

AACSB: Ethical Understanding and Reasoning Abilities
Skill: Concept
Objective: 8-1
34.
Rhodia invites tourists from all over the world to experience its pristine nature, clear skies, and beautiful summertime
climate. This exemplifies ________.
A)
place marketing
B)
C)
social marketing
D)
social engineering
E)
negative brand equity
Page Ref: 252-253

Skill: Application
Objective: 8-1
Refer to the scenario below to answer the following questions.

Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore
Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with
Elmore ended.
Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with
customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty
shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand
on it.
Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different
colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest
added touch, however, was the addition of two salespeople who would work to explain the diverse array of products
offered by Marks, as well as nurture existing accounts.
"We make an excellent product," Herb Marks stated, "and we honor a good guarantee on everything we sell. But let's face
itwe face hundreds of competitors! We need Marks representatives out there to help prospects understand what they
should demand in something as simple as a writing tool."
The Marks brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought
personal visits from the Marks representative, before the purchase and long after.
35.
An easier, more comfortable, more stylish transfer of thought onto paper refers to the ________ of Herb's offerings.
A)
augmented product
B)
tangible element
C)
service variability
D)
core customer value

E)
actual product
Page Ref: 249

Skill: Application
Objective: 8-1
Difficulty: Hard
36.
Which type of product does Marks manufacture?
A)
specialty
B)
unsought
C)
convenience
shopping
industrial
D)
E)
Page Ref: 251

Skill: Application
Objective: 8-1
Difficulty: Hard
37.
The new felt-tip pens, multiple-cartridge pens, and quills are examples of ________.
A)
megabranding
B)
co-branding
C)
multibranding
D)
product line inconsistencies

E)
product line filling
Page Ref: 258

Skill: Application
Objective: 8-2
Difficulty: Hard
38.
Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and
delivered by ________.
A)
support services
B)
branding
C)
product attributes
D)
product labels
E)
product packaging
Page Ref: 253

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
39.
________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer
needs.
A)
Product labeling
B)
Brand personality
C)
Brand image
D)
Brand equity
E)
Product quality
Page Ref: 253

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
40.
________ is an approach in which all the company's people are involved in constantly improving the quality of products,
services, and business processes.
A)
Total quality management

B)
Product positioning
C)
Brand equity management

D)
Quality function deployment

E)
Business intelligence
Page Ref: 253-254

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
41.
What are the two dimensions of product quality?
A)
conformance and style

B)
feature and design
C)
performance and conformance

D)
consistency and level

E)
design and innovation
Page Ref: 254

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
42.
________ refers to freedom from defects and consistency in delivering a targeted level of performance.
A)
Product style
B)
Product design
C)
Performance quality
D)
Branding
E)
Conformance quality
Page Ref: 254

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
43.
Style simply describes the ________ of a product.
A)
durability
B)
utility
C)
quality
D)
appearance
E)
long-term benefits
Page Ref: 254

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
44.
________ contribute(s) to a product's usefulness as well as to its looks.
A)
Multiple features
B)
Sensational style
C)
Good design
D)
Trait
E)
Consistency
Page Ref: 254

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
45.
A good design begins with ________.
A)
identifying the most suitable and aesthetic packaging

B)
brainstorming new product ideas
C)
brainstorming technical product specifications

D)
observing and understanding customers and shaping their product-use experience

E)
making prototypes of the planned product
Page Ref: 254
AACSB:
Skill: Concept
Objective: 8-2
46.
Which of the following questions is most important for product designers to consider while developing a product?
A)
What are the product's technical specifications?

B)
Which specific features of the product do customers like most?
C)
How can the product be packaged to stimulate instant purchase?

D)
How would customers use and benefit from the product?

E)
How does the product appear to buyers?
Page Ref: 254
Skill: Concept
Objective: 8-2
47.
A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product
or service.
A)
line extension
B)
feature
value chain
C)
D)
brand
E)
package
Page Ref: 255

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
48.
________ involves designing and producing the container or wrapper for a product.
A)
Co-branding
B)
Patenting
C)
Labeling
D)
Packaging
Servicing
E)
Page Ref: 255

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
49.
A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand.
A)
feature
label
B)
C)
design
D)
line extension
E)
portfolio
Page Ref: 256

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
50.
The ________ requires sellers to provide detailed nutritional information on food products.
A)
Glass-Steagall Act
B)
Sherman Antitrust Act
C)
Nutritional Labeling and Educational Act of 1990

D)
Commodity Futures Modernization Act of 2000

E)
Federal Trade Commission Act of 1914
Page Ref: 257
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
51.
The first step in designing support services is to ________.
A)
closely observe the product and pricing strategies of consumers
B)
encourage customers to try new products
C)
add new services that will both delight customers and yield profits to the company
D)
prevent brand dilution

E)
survey customers to assess the value of current services and obtain ideas for new ones
Page Ref: 258
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
52.
A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same
customer groups, are marketed through the same type of outlets, or fall within given price ranges.
A)
multibrand
B)
new brand
C)
line extension
D)
private brand
E)
product line
Page Ref: 258

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
53.
The major product line decision involve(s) ________, the number of items in the product line.
A)
product line length

B)
product line depth
C)
product features
D)
product line conformance

E)
product packaging
Page Ref: 258
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
54.
________ involves adding more items within the present range of the product line.
A)
Downward product line stretching

B)
Brand extension
C)
Upward product line stretching

D)
Market diversification
E)
Product line filling
Page Ref: 258

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
55.
Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its existing line of sedans in
order to increase profits and satisfy dealers. This is an example of ________.
A)
person marketing
B)
market diversification
C)

D)
social marketing
E)
line filling
Page Ref: 258

Skill: Application
Objective: 8-2
56.
________ occurs when a company lengthens its product line beyond its current range.
A)
Co-branding
B)
Product line stretching
C)
D)
Niche marketing
E)
Product line filling
Page Ref: 258

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
57.
Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. Recently, the
company launched a new range of luxury cars to broaden its market appeal and to add prestige to its existing line of cars.
This is an example of ________.
A)
product line stretching

B)
social marketing
C)
product line filling

D)
internal marketing
E)
cannibalization
Page Ref: 258

Skill: Application
Objective: 8-2
Difficulty: Hard
58.
A ________ consists of all the product lines and items that a particular seller offers for sale.
A)
line extension
B)
value chain
C)
supply chain
D)
store brand
E)
product mix
Page Ref: 258

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
59.
Product mix ________ refers to the number of different product lines the company carries.
A)
depth
B)
length
C)
width
D)
consistency
height
E)
Page Ref: 258

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
60.
Product mix ________ refers to the total number of items a company carries within its product lines.
A)
length
B)
consistency
height
width
depth
C)
D)
E)
Page Ref: 259

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
61.
Product mix ________ refers to the number of versions offered for each product in the line.
A)
width
B)
length
C)
depth
D)
height
E)
consistency
Page Ref: 259

AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
62.
The ________ of the product mix refers to how closely related the various product lines are in end use, production
requirements, distribution channels, or some other way.
A)
depth
B)
length
C)
height
D)
consistency
width
E)
Page Ref: 259
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
63.
A reputed cosmetic company in New York City added new product lines in order to increase its business. In other words,
it ________.
A)
widened its product mix

B)
decreased its product line consistency
C)
engaged in market diversification

D)
engaged in social marketing

E)
lengthened its existing product line
Page Ref: 259
Skill: Application
Objective: 8-2
64.
________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.
A)
Service intangibility
B)
Service heterogeneity
C)
Service perishability
D)
Service variability
E)
Service inseparability
Page Ref: 260

AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
65.
Which of the following actions is a restaurant owner most likely to take in order to reduce problems associated with
service intangibility?
A)
increase entree prices after 6 p.m.

B)
provide clean tablecloths and fresh napkins for each new customer
C)
offer discounted prices for appetizers ordered during happy hour

D)
hold regular employee workshops focusing on customer service

E)
empower employees to handle customer complaints
Page Ref: 260
AACSB: Reflective Thinking Skills
Skill: Critical Thinking
Objective: 8-3
Difficulty: Hard
66.
Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon, bought a Europe travel
package on Jizo Inc., an online travel site. As they have never seen Europe or used the services of Jizo before, they were
largely dependent on other customers' feedback and signals for service quality. Which of the following characteristics of
service is highlighted in this instance?
A)
service distinction
B)
service inseparability
C)
service perishability
D)
service intangibility
E)
service variability
Page Ref: 260

Skill: Application
Objective: 8-3
Difficulty: Hard
67.
________ means that the quality of services depends on who provides them as well as when, where, and how they are
provided.
A)
Service variability
B)
C)
D)
E)
Service heterogeneity
Page Ref: 260

AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
68.
The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on who provides it as well as when,
where, and how the service is provided. Which of the following characteristics of service is evident in this instance?
A)
service distinction
B)
service perishability
C)
D)
service variability
E)
service intangibility
Page Ref: 260

Skill: Application
Objective: 8-3
Difficulty: Hard
69.
________ means that services cannot be stored for later sale or use.
A)
B)
C)
D)
Service variability
E)
Service consistency
Page Ref: 261

AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
70.
Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their
property home and back. The business is profitable during the summer months, but when the storage space is unoccupied
in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's
problem?
A)
variability
B)
perishability
C)
intangibility
D)
inconsistency
E)
inseparability
Page Ref: 261

Skill: Application
Objective: 8-3
71.
According to the service profit chain, superior internal service quality results in ________.
A)
reduced after-sale services

B)
increased word-of-mouth sales
C)
negative brand equity of newly launched products

D)
more satisfied, loyal, and hardworking employees

E)
lesser service value
Page Ref: 261

Skill: Concept
Objective: 8-3
72.
Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to
work as a team to provide customer satisfaction.
A)

B)
social marketing
C)
internal marketing
D)
service variability
E)
Page Ref: 263

AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
73.
________ means that service quality depends on the quality of buyer-seller interaction during the service encounter.
A)
Service differentiation
B)
Traditional external marketing
C)
D)
Service productivity
E)
Corporate image marketing
Page Ref: 263
AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
74.
Service companies can differentiate their service delivery by ________.
A)
offering innovative product features

B)
having more able and reliable customer-contact people
C)
using symbols and logos

D)
instituting a hierarchical organizational structure

E)
de-emphasizing branding
Page Ref: 264

AACSB:
Skill: Concept
Objective: 8-3
75.
Apollo Couriers, a company providing international express mail services, has a proactive customer communications
team. The primary job of this team is to identify situations that led to customer dissatisfaction, and then provide quick
remedies to fix the problems. This has helped Apollo in winning customer loyalty to a great extent. In this instance,
Apollo has benefitted from ________.
A)
place marketing
B)
multibranding
C)
co-branding
D)
product differentiation
E)
good service recovery
Page Ref: 264

Skill: Application
Objective: 8-3
Difficulty: Hard
76.
________ represent(s) consumers' perceptions and feelings about a product and its performance.
A)
Design
Labeling
B)
C)
Product attributes
D)
Product lines
E)
Brands
Page Ref: 266

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
77.
________ is the differential effect that knowing the brand name has on customer response to the product and its
marketing.
A)
Brand equity
B)
Brand differentiation
C)
Brand personality
D)
Brand knowledge
E)
Brand relevance
Page Ref: 266

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
78.
Blue Fin canned tuna has higher sales than its unbranded rival, even though the unbranded tuna costs $0.45 less per can
than BlueFin tuna. BlueFin most likely has ________.
A)
low brand relevance

B)
an aggressive brand personality
C)

D)
no brand commitment
E)
high brand equity
Page Ref: 266

Skill: Application
Objective: 8-4
79.
Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to
measure brand strength?
A)
brand conformance
B)
brand convenience
C)
brand extension
D)
brand consistency
E)
brand relevance
Page Ref: 266

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
80.
________ refers to how consumers feel if a brand meets their needs.
A)
Brand esteem
B)
Brand dilution
C)
D)
Brand equity
E)
Brand relevance
Page Ref: 266
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
81.
________ refers to how highly consumers regard and respect the brand.
A)
Brand relevance
B)
Brand conformance
C)
Brand esteem
D)
E)
Brand knowledge
Page Ref: 266

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
82.
After a brief stay at a luxury hotel in Paris, Benjamin Sanders noted that the hotel had kept every promise it made when
he booked the room, meeting all his needs. He added that it was a "thoroughly comfortable and opulent experience."
According to Young & Rubicam's Brand Asset Valuator, this reflects ________.
A)
brand differentiation
B)
brand valuation
C)
brand knowledge
D)
brand esteem
E)
brand relevance
Page Ref: 266

Skill: Application
Objective: 8-4
Difficulty: Hard
83.
Which of the following is true with regard to brand equity?
A)
The total financial value of a brand can be easily measured.

B)
High brand equity provides a company with many competitive advantages.
C)
Brand equity refers to how much consumers know about the brand.
D)
Positive brand equity derives from low brand esteem.

E)
A brand has positive brand equity if consumers react less favorably to it than to an unbranded version.
Page Ref: 267

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
84.
The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates.
A)
the product experience

B)
service variability
C)
the customer mix

D)
the service encounter

E)
customer equity
Page Ref: 267

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
85.
Which of the following is the lowest level on which marketers can position their brands in target customers' minds?
A)
product attributes
B)
product benefits
C)
beliefs and values

D)
after-sale services
E)
brand equity
Page Ref: 267

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
86.
The strongest brands are positioned on ________.
A)
strong beliefs and values

B)
C)
product attributes
D)
good packaging
E)
desirable benefit
Page Ref: 267

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
87.
Gainville Inc. manufactures android phones. Each new Gainville phone launch advances the cause of democratizing
technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has
been ranked one of the Breakaway Brands by the brand consultancy Kendell Associates. Gainville is most likely
positioned on ________.
A)
basic product attributes

B)
service variability
C)
short-term benefits
D)
self-image enhancement
E)
strong beliefs and values
Page Ref: 267

Skill: Application
Objective: 8-4
88.
A good brand name should most likely be ________.
A)
conventional
B)
trendy
C)
distinctive
long
complex
D)
E)
Page Ref: 269

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
89.
An increasing number of retailers and wholesalers have created their own ________, also called store brands.
A)
national brands
B)
generic brands
C)
multibrands
D)
private brands
E)
manufacturers' brands
Page Ref: 270

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
90.
Costco's Kirkland Signature products are an example of a ________.
A)
generic brand
B)
private brand
C)
manufacturer's brand
D)
national brand
E)
support brand
Page Ref: 270

Skill: Concept
Objective: 8-4
91.
Which of the following is true with regard to store brands?
A)
Store brands have been declining in popularity and strength for more than two decades.
B)
Store brands are also known as national brands.
C)
Store brands are growing far slower than manufacturer's brands.

D)
Increasing consumer distrust toward store brands has led to a store-brand slump.
E)
Store brands are created and owned by resellers of a product or service.
Page Ref: 270
AACSB:
Skill: Concept
Objective: 8-4
92.
Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This
process is known as ________.
A)
multibranding
B)
co-branding
licensing
C)
D)
positioning
segmenting
E)
Page Ref: 271

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
93.
________ occurs when two established brand names of different companies are used on the same product.
A)
Co-branding
B)
C)
Licensing
D)
Niche marketing
E)
Cannibalization
Page Ref: 272

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
94.
Which of the following is an advantage offered by co-branding?
A)
Co-branding dilutes brand equity and increases the appeal of store brands.
B)
Manufacturers do not have to invest in creating their own brand names with co-branding.
C)
Co-branding does not involve complex legal contracts and licenses.

D)
Co-branding allows retailers to sell exclusive products that cannot be purchased from competitors.
E)
Co-branding allows a company to expand its existing brand into a category it might otherwise have difficulty entering
alone.
Page Ref: 272
AACSB:
Skill: Concept
Objective: 8-4
95.
________ occurs when a company introduces additional items in a given product category under the same brand name,
such as new flavors, forms, colors, ingredients, or package sizes.
A)
Megabranding
B)
Line extension
C)
Co-branding
D)
Internal marketing
E)
Page Ref: 272

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
96.
________ involves the use of a successful brand name for new or modified products in a new category.
A)
A brand extension
B)
Co-branding
C)
A product line
D)
Cannibalization
E)
A line extension
Page Ref: 273

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
97.
Symmonds Inc., a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of
breakfast cereals plus protein shakes, fruit and sandwich spreads, butter, and doughnuts. This is an example of ________.
A)
co-branding
B)
brand extension
C)
cannibalization
D)
licensing
E)
line extension
Page Ref: 273

Skill: Application
Objective: 8-4
Difficulty: Hard
98.
Which of the following is a potential drawback of multibranding?
A)
Company resources are likely to be concentrated on a single brand.

B)
Each brand might obtain only a small market share, and none may be very profitable.
C)
Multibranding causes companies to refrain from product diversification.

D)
Multibranding tends to decrease brand loyalty.

E)
Multibranding curbs the growth opportunities of established brands.
Page Ref: 274
AACSB:
Skill: Concept
Objective: 8-4
99.
Which of the following strategies involves weeding out weaker brands and focusing marketing dollars only on brands that
can achieve the number one or number two market share positions with good growth prospects in their categories?
A)
megabrand strategies
B)
niche marketing strategies
C)
co-branding
licensing
D)
E)
social marketing strategies

Page Ref: 274
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
100.
While advertising campaigns can help create name recognition, brand knowledge, and perhaps even some brand
preference, brands are not maintained by advertising but by ________.
A)
brand sponsorships
B)
brand differentiation
C)
brand experiences
D)
brand awareness
E)
line extensions
Page Ref: 274

AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
101.
A service refers to an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the
ownership of anything.
Page Ref: 248
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
102.
Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of
comparison and buying effort.
Page Ref: 251
Skill: Concept
Objective: 8-1
103.
Shopping products are less frequently purchased consumer products and services that customers compare carefully on
suitability, quality, price, and style.
Page Ref: 251
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
104.
The augmented product is the actual product plus the various services and benefits offered with it, such as a warranty,
free delivery, installation, and maintenance.
Page Ref: 250
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
105.
Style is a larger concept than design. Design simply describes the appearance of a product.
Page Ref: 254
AACSB:
Skill: Concept
Objective: 8-2
106.
Branding decisions include selecting a brand name and developing a brand strategy.
Page Ref: 255
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
107.
For many companies, the package itself has become an important promotional medium.
Page Ref: 254
AACSB:
Skill: Concept
Objective: 8-2
Refer to the scenario below to answer the following questions.

Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round
resort in just a few years. Atop a cliff overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors
during summer, but then faced a tremendous downturn in business during winter. "But, given the established industries
in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't
understand why seasonality had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract
business travelers year-round. Carol's plan also involved a seasonal promotional gimmickto be implemented from early
winter to late springthat would attract the same numbers as the large summer crowd. Her idea worked! During her
second winter, Carol greeted numerous business travelersboth satisfied repeat guests as well as new guests who had
been snagged by her promotional appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that are a part of the local cuisine, but
we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are
goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite
proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will
eventually offer weekend getaways throughout winter."
108.
Labels range from simple tags attached to products to complex graphics that are part of the packaging.
Page Ref: 256-257
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
109.
A product line consists of unrelated products that are sold to diverse customer groups.
Page Ref: 258
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
110.
Product line filling is overdone if it results in cannibalization and customer confusion.
Page Ref: 258
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
111.
A company cannot stretch its product line downward.
Page Ref: 258
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
112.
Product mix width refers to the total number of items a company carries within its product lines.
Page Ref: 259
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
113.
Sometimes, companies stretch upward to add prestige to their current products.
Page Ref: 258
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
114.
A company's product mix has four important dimensions: width, length, depth, and consistency.
Page Ref: 259
AACSB:
Skill: Concept
Objective: 8-2
Difficulty: Easy
115.
Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how
they are provided.
Page Ref: 260
AACSB:
Skill: Concept
Objective: 8-3
116.
In a service business, the customer and the front-line service employee interact to co-create the service.
Page Ref: 261
AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
117.
Within a given hotel reputed for its superior service, one registration-desk employee may be cheerful and efficient,
whereas another may be irritable and slow. This exemplifies service variability.
Page Ref: 260
Skill: Application
Objective: 8-3
118.
Service companies can differentiate their service delivery by having more able and reliable customer-contact people.
Page Ref: 264
AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
119.
Product quality is harder to define and judge than service quality.
Page Ref: 264
AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
120.
Good service recovery can turn angry customers into loyal ones.
Page Ref: 264
AACSB:
Skill: Concept
Objective: 8-3
Difficulty: Easy
121.
Attributes are the least desirable level for brand positioning because competitors can easily copy attributes.
Page Ref: 267
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
122.
The strongest brands do not engage customers on a deep, emotional level.
Page Ref: 267
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
123.
Co-branding occurs when retailers and wholesalers create their own store brands.
Page Ref: 272
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
124.
Line extension refers to extending an existing brand name to new product categories.
Page Ref: 273
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
125.
Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller
shelf space, and capture a larger market share.
Page Ref: 274
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
126.
Products and services fall into two broad classes based on the types of consumers that use them. Name these two broad
classes and describe how they are different from each other.
Page Ref: 250-252
AACSB:
Skill: Concept
Objective: 8-1
127.
Name and describe the principal decisions companies make regarding their individual products and services.
Page Ref: 253-258
AACSB:
Skill: Concept
Objective: 8-2
128.
Describe the principal functions of packaging.
Page Ref: 255-256
AACSB:
Skill: Concept
Objective: 8-2
129.
Briefly describe the history of legal concerns about packaging and labels.
Page Ref: 255-257
AACSB: Ethical Understanding and Reasoning Abilities
Skill: Application
Objective: 8-2
130.
What are the different dimensions of a company's product mix? Briefly describe each dimension.
Page Ref: 259
AACSB:
Skill: Concept
Objective: 8-2
131.
What are the key service characteristics a company must consider when designing marketing programs? Briefly describe
each characteristic.
Page Ref: 260-261
AACSB:
Skill: Concept
Objective: 8-3
132.
Distinguish between the service-profit chain and internal marketing.
Page Ref: 261, 263
AACSB:
Skill: Concept
Objective: 8-3
133.
How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price?
Page Ref: 264
Skill: Concept
Objective: 8-3
134.
What are the different brand sponsorship options available to manufacturers?
Page Ref: 270-272
AACSB:
Skill: Concept
Objective: 8-4
135.
A company has four choices when it comes to developing brands. Describe them.
Page Ref: 272-274
Skill: Concept
Objective: 8-4
136.
Give examples of pure tangible goods.
Page Ref: 249
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
137.
What is a product?
Page Ref: 248

AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
138.
How do consumers perceive products?
Page Ref: 250
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
139.
Name some common convenience products.
Page Ref: 251
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
140.
Give three examples of shopping products.
Page Ref: 251
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
141.
How are specialty products distributed?
Page Ref: 251
AACSB:
Skill: Concept
Objective: 8-1
Difficulty: Easy
142.
With the help of an example, explain the difference between a consumer product and an industrial product.
Page Ref: 250-252
AACSB:
Skill: Concept
Objective: 8-1
143.
How does branding help buyers?
Page Ref: 255
AACSB:
Skill: Concept
Objective: 8-2
144.
When does product line stretching occur?
Page Ref: 258
AACSB:
Skill: Concept
Objective: 8-2
145.
Define consistency of the product mix.
Page Ref: 259
AACSB:
Skill: Concept
Objective: 8-2
146.
As competition and costs increase, and as productivity and quality decrease, what are the three major marketing tasks
facing service companies in contemporary times?
Page Ref: 264
AACSB:
Skill: Concept
Objective: 8-3
147.
Define interactive marketing. Why is it considered an important skill for service marketers?
Page Ref: 263
AACSB:
Skill: Concept
Objective: 8-3
148.
Briefly explain the concept of brand equity.
Page Ref: 266
AACSB:
Skill: Concept
Objective: 8-4
149.
What are the desirable qualities for a brand name?
Page Ref: 269-270
AACSB:
Skill: Concept
Objective: 8-4
150.
What is a private brand?
Page Ref: 270
AACSB:
Skill: Concept
Objective: 8-4
Difficulty: Easy
1.
C
2.
B
3.
B
4.
5.
B
6.
B
7.
E
8.
A
9.
E
10.
A
11.
B
12.
C
13.
C
14.
D
15.
C
16.
D
17.
18.
A
19.
D
20.
A
21.
B
22.
B
23.
A
24.
C
25.
E
26.
A
27.
D
28.
D
29.
C
30.
B
31.
A
32.
D
33.
B
34.
A
35.
36.
A
37.
E
38.
C
39.
E
40.
A
41.
D
42.
E
43.
D
44.
C
45.
D
46.
D
47.
D
48.
49.
B
50.
C
51.
E
52.
E
53.
A
54.
E
55.
E
56.
B
57.
A
58.
E
59.
C
60.
A
61.
C
62.
D
63.
A
64.
A
65.
B
66.
67.
A
68.
D
69.
A
70.
B
71.
D
72.
C
73.
C
74.
B
75.
E
76.
E
77.
A
78.
E
79.
80.
E
81.
C
82.
E
83.
B
84.
E
85.
A
86.
A
87.
E
88.
C
89.
D
90.
B
91.
E
92.
C
93.
A
94.
E
95.
B
96.
A
97.
98.
B
99.
A
100.
C
101.
TRUE
102.
FALSE
103.
TRUE
104.
TRUE
105.
FALSE
106.
TRUE
107.
TRUE
108.
TRUE
109.
FALSE
110.
TRUE
111.
FALSE
112.
FALSE
113.
TRUE
114.
TRUE
115.
FALSE
116.
TRUE
117.
TRUE
118.
TRUE
119.
FALSE
120.
TRUE
121.
TRUE
122.
FALSE
123.
FALSE
124.
FALSE
125.
TRUE
126.
The two broad classes are consumer products and industrial products.
Consumer products and servicesthose bought by final consumersare usually classified according to consumer
shopping habits. Consumer products include convenience products, shopping products, specialty products, and unsought
products.
Industrial products, on the other hand, are those that are purchased for further processing or for use in conducting a
business. These products include the three broad categories of materials and parts, capital items, and supplies and
services.
127.
Individual product decisions involve: 1) product attributes, 2) branding, 3) packaging, 4) labeling, and 5) product support
services.
Product attribute decisions involve product quality, features, and style and design. Branding decisions include selecting a
brand name and developing a brand strategy. Package decisions often include designing labels, which identify, describe,
and possibly promote the product. Labeling identifies the product and may describe and promote the product and brand.
Companies also develop product support services that enhance customer service and satisfaction and safeguard against
competitors.
128.
Packaging involves designing and producing the container or wrapper for a product. Traditionally, the primary function
of the package was to hold and protect the product. In recent times, however, packaging has become an important
marketing tool as well. Increased competition and clutter on retail store shelves means that packages must now perform
many sales tasksfrom attracting buyers, to communicating brand positioning, to closing the sale.
129.
The Federal Trade Commission Act of 1914 held that false, misleading, or deceptive labels or packages constitute unfair
competition. Labels can mislead consumers, fail to describe important ingredients, or fail to include needed safety
warnings. As a result, several federal and state laws regulate labeling. The most prominent is the Fair Packaging and
Labeling Act of 1966, which set mandatory labeling requirements, encouraged voluntary industry packaging standards,
and allowed federal agencies to set packaging regulations in specific industries. Labeling has been affected in recent times
by unit pricing (stating the price per unit of a standard measure), open dating (stating the expected shelf life of the
product), and nutritional labeling (stating the nutritional values in the product). The Nutritional Labeling and Educational
Act of 1990 requires sellers to provide detailed nutritional information on food products, and recent sweeping actions by
the Food and Drug Administration (FDA) regulate the use of health-related terms such as low fat, light, and high fiber.
130.
A company's product mix has four important dimensions: width, length, depth, and consistency.
Product mix width refers to the number of different product lines the company carries.
Product mix length refers to the total number of items a company carries within its product lines.
Product mix depth refers to the number of versions offered for each product in the line.
Finally, the consistency 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.
131.
A company must consider four special service characteristics when designing marketing programs: intangibility,
inseparability, variability, and perishability.
Service intangibility means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.
Service inseparability means that services cannot be separated from their providers, whether the providers are people or
machines.
Service variability means that the quality of services depends on who provides them as well as when, where, and how
they are provided.
Service perishability means that services cannot be stored for later sale or use.
132.
The service-profit chain links service firm profits with employee and customer satisfaction. This chain consists of five
links: internal service quality, satisfied and productive service employees, greater service value, satisfied and loyal
customers, and healthy service profits and growth.
On the other hand, internal marketing means that the service firm must orient and motivate its customer-contact
employees and supporting service people to work as a team to provide customer satisfaction. Marketers must get
everyone in the organization to be customer centered. In fact, internal marketing must precede external marketing.
133.
A service offer can include innovative features that set a company's offers apart from competitors' offers. Service
companies can differentiate their service delivery by having more able and reliable customer-contact people, developing a
superior physical environment in which the service product is delivered, or designing a superior delivery process.
Services can also be differentiated through symbols and branding, by creating an image that sets a company's services
apart from that of its competitors.
134.
A manufacturer has four sponsorship options. The product may be launched as a national brand (or manufacturer's
brand), as when Samsung and Kellogg sell their output under their own brand names (the Samsung Galaxy tablet or
Kellogg's Frosted Flakes). Or the manufacturer may sell to resellers who give the product a private brand (also called a
store brand or distributor brand). Although most manufacturers create their own brand names, others market licensed
brands. Finally, two companies can join forces and co-brand a product.
135.
The company can introduce line extensions, brand extensions, multibrands, or entirely new brands. A line extension
involves extending a current brand name to new forms, colors, sizes, flavors, etc. in one of the company's existing product
categories. In contrast, a brand extension extends a current brand name to a new or modified product in a new product
category. Multibranding involves introducing several brands within the same category. Finally a company may decide that
a new brand name is needed, particularly if the power of an existing brand name is declining or the company is entering a
new product category.
136.
Examples will vary. A company's market offering often includes both tangible goods and services. Examples of pure
tangible goods include soap, toothpaste, or salt; no services accompany these products.
137.
Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
is known as a product.
138.
Consumers see products as complex bundles of benefits that satisfy their needs.
139.
Examples may vary. Convenience products include laundry detergent, candy, magazines, and fast food.
140.
Examples may vary. Shopping products include clothing, used cars, and furniture.
141.
Specialty products are distributed through only one or a few exclusive outlets per market area.
142.
The distinction between a consumer product and an industrial product is based on the purpose for which the product is
purchased. If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same
consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial product.
143.
Branding helps buyers in many ways. Brand names help consumers identify products that might benefit them. Brands
also say something about product quality and consistency buyers who always buy the same brand know that they will
get the same features, benefits, and quality each time they buy.
144.
Product line stretching occurs when a company lengthens its product line beyond its current range.
145.
The consistency 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.
146.
Today, as competition and costs increase, and as productivity and quality decrease, more service marketing sophistication
is needed. Service companies face three major marketing tasks: They want to increase their service differentiation, service
quality, and service productivity.
147.
Interactive marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the
service encounter. In product marketing, product quality often depends little on how the product is obtained. But in
services marketing, service quality depends on both the service deliverer and the quality of delivery. Service marketers,
therefore, have to master interactive marketing skills.
148.
Brand equity is the differential effect that knowing the brand name has on customer response to the product and its
marketing. It's a measure of the brand's ability to capture consumer preference and loyalty. A brand has positive brand
equity when consumers react more favorably to it than to a generic or unbranded version of the same product. It has
negative brand equity if consumers react less favorably than to an unbranded version.
149.
Desirable qualities for a brand name include the following: (1) it should suggest something about the product's benefits
and qualities; (2) it should be easy to pronounce, recognize, and remember; (3) it should be distinctive; (4) it should be
extendable; (5) the name should translate easily into foreign languages; and (6) it should be capable of registration and
legal protection.
150.
A brand created and owned by a reseller of a product or service is known as a private brand or store brand.

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What are some examples of pure tangible goods?

What are some examples of pure tangible goods?

What are the three levels that product planners need to consider for products and services?

What are the three levels that product planners need to consider for products and services?

Exam

Products refer to only those activities that are essentially intangible.

Page Ref: 248

Page Ref: 248

building an offering that brings value to target customers

finding a suitable promotion strategy for the product

setting a reasonable price for the product

Services can be easily separated from their providers.

Services can be stored for later use.

a bag of potato chips

a laptop with a comprehensive warranty for three years

an agency that offers free legal advice

a package of laundry detergent

an ink cartridge for a printer

Page Ref: 248-249

core customer value

Page Ref: 249

offer additional product support and after-sale services

Page Ref: 250

Page Ref: 252

primarily intangible offerings from marketers

products and services bought by final consumers for personal consumption

Supplies and repair services

Page Ref: 251

Page Ref: 251

Page Ref: 251

Page Ref: 251

Page Ref: 251

Page Ref: 251

Page Ref: 251

Page Ref: 251

Branding and advertising

Sales promotion and advertising

Page Ref: 252

major purchases such as elevators

portable factory equipment such as hand tools

products such as insurance

Page Ref: 252

AACSB: Communication Abilities

Page Ref: 252

Corporate image marketing

Page Ref: 252

Page Ref: 252

Page Ref: 252

Page Ref: 252-253

rights and personal safety can be classified under ________.

Page Ref: 253

Page Ref: 252

Page Ref: 253

Page Ref: 252-253

Refer to the scenario below to answer the following questions.

core customer value

Page Ref: 249

Page Ref: 251

product line inconsistencies