Chapter 8

1) Which of the following is true with regard to products?

A) The quality of products is far more difficult to measure than that of services.

B) Products do not include experiences, organizations, persons, places, and ideas.

C) Products are not meant for sale in the market.

D) Products include services, events, persons, places, organizations, ideas, or a mixture of

these.

E) Products refer to only those activities that are essentially intangible.

D) Products include services, events, persons, places, organizations, ideas, or a mixture of

these.

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) Liabilities

B) Services

C) Brands

D) Consumer products

E) Specialty products

B) Services

3) Which of the following exemplifies a service?

A) candy

B) laptop

C) hair salon

D) car

E) laundry detergent

C) hair salon
4) Marketing mix planning begins with ________.

A) building an offering that brings value to target customers

B) finding a suitable promotion strategy for the product

C) setting a reasonable price for the product

D) selecting the right channel for distribution of the product

E) calculating the total costs involved in manufacturing the product

A) building an offering that brings value to target customers

5) Market offering includes everything from pure tangible goods to pure services, as well as
combinations of goods and services. Which of the following is NOT a product or service?

A) breakfast cereal

B) rental car

C) free concert

D) shoes

E) haircut

C) free concert

6) Which of the following is true with regard to services?

A) Services refer to purely tangible products.

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 can be easily separated from their providers.

E) Services are tangible product offerings whose quality can be easily measured.

B) Services are a form of product that consists of activities, benefits, or satisfactions offered
for sale.
7) Which of the following is an example of a pure tangible good?

A) a laptop with a comprehensive warranty for three years

B) an online shoe retailer that provides free home delivery

C) an agency that offers free legal advice

D) a credit card

E) a bag of potato chips

E) a bag of potato chips

8) Which of the following product offerings is intangible?

A) a package of laundry detergent

B) an ink cartridge for a printer

C) a wool jacket

D) a gold ring

E) a taxi ride

E) a taxi ride

9) Which of the following is a goods-and-services combination?

A) a bicycle

B) a milk shake at an ice cream store

C) chocolate chips

D) a train ride

E) a music lesson

B) a milk shake at an ice cream store

10) Product planners need to consider products and services on three levels. Each level adds
more customer value. The most basic level is ________, which addresses the question, "What
is the buyer really buying?"

A) an actual product
B) an augmented product

C) core customer value

D) co-branding

E) exchange value

C) core customer value

11) 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) identify the core customer value that consumers seek from the product

C) turn the core benefit into an actual product

D) find out how they can create the most satisfying brand experience

E) define the problem-solving benefits or services that consumers seek

C) turn the core benefit into an actual product

12) If a consumer purchases a new flat-screen "smart" television which can connect to
services like Netflix and Pandora, what is the core customer value involved?

A) connection to entertainment and information

B) state-of the art technology

C) slick and attractive packaging

D) brand name

E) tech support and warranty

A) connection to entertainment and information

13) If a consumer purchases a new flat-screen "smart" television, what is the augmented
product involved?

A) connection to the world of entertainment

B) state-of the art technology

C) slick and attractive packaging

D) brand name

E) tech support and warranty

E) tech support and warranty

14) Product planners need to consider products and services on three levels. At the third level,
product planners must build ________.

A) an actual product

B) an augmented product

C) core customer value

D) a brand personality

E) a basic product

B) an augmented product

15) What is the core customer value a customer might purchase when buying Urban Decay
cosmetics?

A) variety of collections

B) unique packaging

C) unusual colors

D) sense of adventure

E) long-lasting makeup

D) sense of adventure

16) ________ are industrial products.

A) Major appliances

B) Laundry detergents

C) Life insurance policies

D) Office supplies
E) Legal services

D) Office supplies

17) Consumer products refer to ________.

A) products purchased by consumers for further processing or for use in conducting a business

B) products and services bought by final consumers for personal consumption

C) primarily intangible offerings from marketers

D) raw materials as well as manufactured materials and parts

E) products that aid in the consumer's production or operations, including installations and
accessory equipment

B) products and services bought by final consumers for personal consumption

18) ________ 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) Shopping products

D) Convenience products

E) Supplies and repair services

D) Convenience products

19) Which of the following is an example of a convenience product?

A) fast food

B) diamond ring

C) furniture

D) life insurance

E) refrigerator

A) fast food
20) ________ are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style.

A) Shopping products

B) Convenience products

C) Unsought products

D) Capital items

E) Supplies and repair services

A) Shopping products

21) Which of the following is NOT a category of consumer products?

A) unsought

B) specialty

C) convenience

D) luxury

E) shopping

D) luxury

22) 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(n) ________ product.

A) convenience

B) unsought

C) specialty

D) shopping

E) exclusive

D) shopping
Upgrade to remove ads

Only $2.99/month

23) ________ 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) Shopping products

B) Unsought products

C) Specialty products

D) Capital items

E) Convenience products

C) Specialty products

24) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania,

from locally grown wood, is an example of a ________.

A) convenience product

B) capital item

C) service

D) specialty product

E) product attribute

D) specialty product

25) ________ 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) Convenience products

C) Unsought products

D) Shopping products

E) Capital items
C) Unsought products

26) ________ products are those products purchased for further processing or for use in
conducting a business.

A) Unsought

B) Specialty

C) Shopping

D) Industrial

E) Convenience

D) Industrial

27) ________ are the major marketing factors in the sale of most manufactured materials and
parts.

A) Branding and advertising

B) Price and service

C) Sales promotion and advertising

D) Branding and packaging

E) Public relations and brand management

B) Price and service

28) ________ are industrial products that aid in the buyer's production or operations,
including installations and accessory equipment.

A) Unsought products

B) Convenience products

C) Capital items

D) Specialty items

E) Repair items

C) Capital items
29) Installations consist of ________.

A) highly priced luxury goods such as Rolex watches

B) portable office equipment such as computers

C) major purchases such as elevators

D) portable factory equipment such as hand tools

E) products such as insurance

C) major purchases such as elevators

30) Lubricants, coal, paper, and pencils are examples of ________.

A) operating supplies

B) capital items

C) raw materials

D) specialty products

E) installations

A) operating supplies

31) Industrial products and services include raw materials, buildings, fixed equipment,
supplies, services, and ________.

A) computers and desks

B) electricity

C) groceries

D) insurance

E) employees

A) computers and desks

32) ________ marketing consists of activities undertaken to create, maintain, or change the
attitudes and behaviors of target consumers toward an organization.
A) Social network

B) Organization

C) Niche

D) Location

E) Concentrated

B) Organization

33) The advertising slogan, "We bring good things to life," used by General Electric to market
itself, is an example of ________ marketing.

A) person

B) corporate image

C) internal

D) place

E) niche

B) corporate image

34) ________ marketing 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

B) Person

C) Social

D) Organization

E) Place

B) Person

35) A company that uses well-known celebrities to help sell its products is using ________
marketing.
A) interactive

B) internal

C) social

D) person

E) organization

D) person

36) ________ marketing involves activities undertaken to create, maintain, or change attitudes
toward particular cities, states, or regions.

A) Idea

B) Place

C) Organization

D) Social

E) Interactive

B) Place

37) Tourism Australia's global marketing campaign, "There's nothing like Australia" is an
example of ________ marketing.

A) corporate image

B) person

C) organization

D) internal

E) place

E) place

38) Advertising campaigns involving issues ranging from health care, education, and
environmental sustainability to human rights and personal safety can be classified under
________ marketing.

A) corporate image
B) internal

C) social

D) place

E) person

C) social

39) 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) person

B) place

C) social

D) organization

E) internal

A) person

40) Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity
are all examples of ________ marketing.

A) internal

B) social

C) organization

D) person

E) place

B) social

41) Rhodia invites tourists from all over the world to experience its pristine nature, clear skies,
and beautiful summertime climate. This exemplifies ________.

A) corporate image marketing

B) social marketing
C) place marketing

D) social engineering

E) negative brand equity

C) place marketing

44) 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.

true

45) Unsought products are products that the customer usually buys frequently, immediately,
and with a minimum of comparison and buying effort.

false

46) Convenience products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style.

false

47) 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.

true

48) Specialty products are consumer products and services that customers evaluate on
suitability, quality, price, and style, by gathering information and making comparisons.

false

57) Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by ________.

A) product labels

B) product attributes
C) support services

D) product packaging

E) branding

B) product attributes

58) Product attributes include all of the following EXCEPT ________.

A) style

B) design

C) price

D) features

E) quality

C) price

59) ________ refers to the characteristics of a product or service that bear on its ability to
satisfy stated or implied customer needs.

A) Brand equity

B) Product quality

C) Product labeling

D) Brand image

E) Brand personality

B) Product quality

60) ________ is an approach in which all the company's people are involved in constantly
improving the quality of products, services, and business processes.

A) Business intelligence

B) Quality function deployment

C) Total quality management

D) Brand equity management

E) Product positioning

C) Total quality management

61) What are the two dimensions of product quality?

A) consistency and level

B) performance and conformance

C) design and innovation

D) conformance and style

E) feature and design

A) consistency and level

62) ________ refers to freedom from defects and consistency in delivering a targeted level of
performance.

A) Performance quality

B) Product style

C) Branding

D) Conformance quality

E) Product design

D) Conformance quality

63) Features are a competitive tool for differentiating a company's product from competitors'
products. Which question are companies LEAST likely to ask in a survey of buyers regarding
product features?

A) Which features could we add to improve the product?

B) Which specific features of the product do you like most?

C) How much would (a certain new feature) be worth to you?

D) Which features of the product do you like the least?

E) How do you like the product?

C) How much would (a certain new feature) be worth to you?

64) Style simply describes the ________ of a product.

A) quality

B) appearance

C) utility

D) durability

E) long-term benefits

B) appearance

65) ________ contributes to a product's usefulness as well as to its looks.

A) Sensational style

B) Good design

C) Quality

D) Consistency

E) Packaging

B) Good design

66) A good design begins with ________.

A) brainstorming new product ideas

B) making prototypes of the planned product

C) identifying the most suitable and aesthetic packaging

D) brainstorming technical product specifications

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

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

67) Which of the following questions is most important for product designers to consider
while developing a product?

A) Which specific features of the product do customers like most?

B) How does the product appear to buyers?

C) What are the product's technical specifications?

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

E) How can the product be packaged to stimulate instant purchase?

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

68) 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) feature

B) brand

C) line extension

D) package

E) value chain

B) brand

69) ________ involves designing and producing the container or wrapper for a product.

A) Packaging

B) Patenting

C) Servicing

D) Co-branding

E) Labeling

A) Packaging

70) A product's ________ identifies the product or brand, describes several things about the
product, and promotes the brand.
A) line extension

B) portfolio

C) label

D) design

E) feature

C) label

71) Which of the following has become a major packaging concern in recent years?

A) underpackaging

B) legibility of print

C) colors used

D) product safety

E) durability

E) durability

72) A label can identify, promote, and ________ the product.

A) sell

B) assemble

C) package

D) brand

E) describe

E) describe

Difficulty: Easy

73) The ________ requires sellers to provide detailed nutritional information on food
products.

A) Fair Packaging and Labeling Act of 1966

B) Nutritional Labeling and Educational Act of 1990

C) Glass-Steagall Act

D) Commodity Futures Modernization Act of 2000

E) Federal Trade Commission Act of 1914

B) Nutritional Labeling and Educational Act of 1990

74) The first step in designing support services is to ________.

A) add new services that will both delight customers and yield profits to the company

B) closely observe the product and pricing strategies of consumers

C) survey customers to assess the value of current services and obtain ideas for new ones

D) prevent brand dilution

E) encourage customers to try new products

C) survey customers to assess the value of current services and obtain ideas for new ones

75) 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) product line

B) line extension

C) private brand

D) multibrand

E) new brand

A) product line

76) The major product line decision involves product ________, the number of items in the
product line.

A) features

B) line depth
C) line conformance

D) line length

E) packaging

D) line length

77) ________ involves adding more items within the present range of the product line.

A) Market diversification

B) Brand extension

C) Product line filling

D) Upward product line stretching

E) Downward product line stretching

C) Product line filling

78) 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) line filling

B) social marketing

C) market diversification

D) negative brand equity

E) person marketing

A) line filling

79) ________ occurs when a company lengthens its product line beyond its current range.

A) Product line filling

B) Product line stretching

C) Co-branding

D) Niche marketing
E) Market diversification

B) Product line stretching

80) 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) social marketing

B) product line filling

C) product line stretching

D) internal marketing

E) cannibalization

C) product line stretching

81) A ________ consists of all the product lines and items that a particular seller offers for
sale.

A) product mix

B) store brand

C) supply chain

D) value chain

E) line extension

A) product mix

82) Product mix ________ refers to the number of different product lines the company carries.

A) length

B) height

C) width

D) consistency

E) depth
C) width

83) Product mix ________ refers to the total number of items a company carries within its
product lines.

A) length

B) depth

C) height

D) width

E) consistency

A) length

84) Product mix ________ refers to the number of versions offered for each product in the
line.

A) length

B) depth

C) height

D) width

E) consistency

B) depth

85) 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) length

B) depth

C) consistency

D) width

E) height

C) consistency
86) A well-known cosmetic company in New York City added new product lines in order to
increase its business. In other words, it ________.

A) lengthened its existing product line

B) decreased its product line consistency

C) widened its product mix

D) engaged in market diversification

E) engaged in social marketing

C) widened its product mix

88) Companies frequently try to offer the highest possible performance quality level.

false

89) Style is a larger concept than design. Design simply describes the appearance of a product.

false

90) Branding decisions include determining a product price.

false

91) For few companies, the package itself has become an important promotional medium.

false

92) Labels range from simple tags attached to products to complex graphics that are part of
the packaging.

true

93) A product line consists of unrelated products that are sold to diverse customer groups.

false
94) Product line filling is overdone if it results in cannibalization and customer confusion.

true

95) A company cannot stretch its product line downward.

false

96) Product mix width refers to the total number of items a company carries within its product
lines.

false

97) Companies stretch downward to add prestige to their current products.

false

98) A company's product mix has four important dimensions: width, length, depth, and
consistency.

true

106) Service ________ means that services cannot be seen, tasted, felt, heard, or smelled
before they are bought.

A) inseparability

B) variability

C) intangibility

D) perishability

E) heterogeneity

C) intangibility

107) 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 6:00 p.m.

B) provide clean tablecloths and fresh napkins for each new customer

C) empower employees to handle customer complaints

D) offer discounted prices for appetizers ordered during happy hour

E) hold regular employee workshops focusing on customer service

B) provide clean tablecloths and fresh napkins for each new customer

108) 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 intangibility

B) service inseparability

C) service variability

D) service perishability

E) service distinction

A) service intangibility

109) If a service employee provides the service, then the employee becomes a part of the
service. This is an example of service ________.

A) intangibility

B) inseparability

C) variability

D) perishability

E) heterogeneity

B) inseparability
110) Service ________ means that the quality of services depends on who provides them as
well as when, where, and how they are provided.

A) intangibility

B) inseparability

C) variability

D) perishability

E) heterogeneity

C) variability

111) 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 intangibility

B) service inseparability

C) service perishability

D) service variability

E) service distinction

D) service variability

112) Service ________ means that services cannot be stored for later sale or use.

A) consistency

B) perishability

C) variability

D) intangibility

E) inseparability

B) perishability

113) 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) intangibility

B) perishability

C) inconsistency

D) variability

E) inseparability

B) perishability

114) According to the service profit chain, superior internal service quality results in
________.

A) lesser service value

B) increased word-of-mouth sales

C) reduced after-sale services

D) more satisfied, loyal, and hardworking employees

E) negative brand equity of newly launched products

D) more satisfied, loyal, and hardworking employees

115) The service profit chain includes internal service quality, satisfied and productive service
employees, greater service value, healthy service profits and growth, and ________.

A) higher market share

B) better paid employees

C) satisfied and loyal customers

D) increased manufacturing efficiency

E) higher morale

C) satisfied and loyal customers

116) 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) service inseparability

B) social marketing

C) service variability

D) internal marketing

E) corporate image marketing

D) internal marketing

117) ________ means that service quality depends on the quality of buyer-seller interaction
during the service encounter.

A) Interactive marketing

B) Service differentiation

C) Service productivity

D) Corporate image marketing

E) Traditional external marketing

A) Interactive marketing

118) Service companies can differentiate their offering by ________.

A) having a lower price than their competitors

B) designing a superior delivery process

C) offering a stellar physical environment in which the product is delivered

D) developing innovative features

E) adopting a recognizable image

D) developing innovative features

119) Service companies can differentiate their service delivery by ________.

A) using symbols and logos

B) instituting a hierarchical organizational structure

C) offering innovative product features

D) de-emphasizing branding

E) having more able and reliable customer-contact people

E) having more able and reliable customer-contact people

120) 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. To a great extent, this has helped Apollo in winning customer loyalty. In this
instance, Apollo has benefitted from ________.

A) product differentiation

B) good service recovery

C) multibranding

D) place marketing

E) co-branding

B) good service recovery

121) Service productivity can be increased by hiring new employees who will work harder, by
giving up some quality, or by ________.

A) using technology more effectively

B) outsourcing portions of the process to other firms

C) creating more self-serve opportunities for customers

D) reducing the number of products offered

E) increasing the price on some of the product line

A) using technology more effectively

122) Services are growing more slowly in the world economy as a percentage of gross world
product than in the U.S. economy, as a percentage of gross domestic product.
false

123) Service inseparability means that the quality of services depends on who provides them,
as well as when, where, and how they are provided.

false

124) In a service business, the customer and the front-line service employee interact to co-
create the service.

true

125) At a hotel renowned for its superior service, one registration-desk employee may be
cheerful and efficient, whereas another may be irritable and slow. This exemplifies service
consistency.

false

126) Service companies can differentiate their service delivery by having more able and
reliable customer-contact people.

true

127) Product quality is harder to define and judge than service quality.

false

128) Good service recovery can turn angry customers into loyal ones.

true

134) ________ represent(s) consumers' perceptions and feelings about a product and its
performance.

A) Product lines

B) Labeling
C) Brands

D) Design

E) Product attributes

C) Brands

135) Brand ________ is the differential effect that knowing the brand name has on customer
response to the product and its marketing.

A) differentiation

B) knowledge

C) equity

D) personality

E) relevance

C) equity

136) BlueFin 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) an aggressive brand personality

B) high brand equity

C) no brand commitment

D) negative brand equity

E) low brand relevance

B) high brand equity

137) 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 consistency

C) brand convenience
D) brand extension

E) brand relevance

E) brand relevance

138) Brand ________ refers to how consumers feel if a brand meets their needs.

A) differentiation

B) equity

C) dilution

D) esteem

E) relevance

E) relevance

139) Brand ________ refers to how highly consumers regard and respect the brand.

A) esteem

B) conformance

C) differentiation

D) relevance

E) knowledge

A) esteem

140) 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 brand ________.

A) valuation

B) esteem

C) relevance

D) differentiation
E) knowledge

C) relevance

141) Which of the following is true with regard to brand equity?

A) Brand equity refers to how much consumers know about the brand.

B) High brand equity provides a company with many competitive advantages.

C) A brand has positive brand equity if consumers react less favorably to it than to an
unbranded version.

D) Positive brand equity derives from low brand esteem.

E) The total financial value of a brand can be easily measured.

B) High brand equity provides a company with many competitive advantages.

142) The fundamental asset underlying brand equity is ________, the value of customer
relationships that the brand creates.

A) the customer mix

B) customer equity

C) the product experience

D) service variability

E) the service encounter

B) customer equity

143) Which of the following is the lowest level on which marketers can position their brands
in target customers' minds?

A) beliefs and values

B) product benefits

C) product attributes

D) after-sale services

E) brand equity
C) product attributes

144) The strongest brands are positioned on ________.

A) desirable benefit

B) good packaging

C) service inseparability

D) strong beliefs and values

E) product attributes

D) strong beliefs and values

145) 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) short-term benefits

C) service variability

D) self-image enhancement

E) strong beliefs and values

E) strong beliefs and values

146) A good brand name should most likely be ________.

A) trendy

B) complex

C) long

D) conventional

E) distinctive

E) distinctive
147) An increasing number of retailers and wholesalers have created their own ________, also
called store brands.

A) national brand

B) support brand

C) private brand

D) generic brand

E) manufacturer's brand

B) support brand

148) Costco's Kirkland Signature products are an example of a ________.

A) national brand

B) support brand

C) private brand

D) generic brand

E) manufacturer's brand

C) private brand

149) 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 created and owned by resellers of a product or service.

D) Increasing consumer distrust toward store brands has led to a store-brand slump.

E) Store brands are growing far slower than manufacturer's brands.

C) Store brands are created and owned by resellers of a product or service.

150) 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) positioning

C) segmenting

D) co-branding

E) licensing

E) licensing

151) ________ occurs when two established brand names of different companies are used on
the same product.

A) Market diversification

B) Niche marketing

C) Co-branding

D) Licensing

E) Cannibalization

C) Co-branding

152) Which of the following is an advantage offered by co-branding?

A) Manufacturers do not have to invest in creating their own brand names with co-branding.

B) Co-branding allows retailers to sell exclusive products that cannot be purchased from
competitors.

C) Co-branding allows a company to expand its existing brand into a category it might
otherwise have difficulty entering alone.

D) Co-branding dilutes brand equity and increases the appeal of store brands.

E) Co-branding does not involve complex legal contracts and licenses.

C) Co-branding allows a company to expand its existing brand into a category it might
otherwise have difficulty entering alone.
153) ________ 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) Line extension

B) Megabranding

C) Interactive marketing

D) Internal marketing

E) Co-branding

A) Line extension

154) ________ involves the use of a successful brand name for new or modified products in a
new category.

A) A line extension

B) A product line

C) A brand extension

D) Co-branding

E) Cannibalization

C) A brand extension

155) 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) line extension

B) brand extension

C) licensing

D) co-branding

E) cannibalization

B) brand extension
156) Which of the following is a potential drawback of multibranding?

A) Multibranding tends to decrease brand loyalty.

B) Company resources are likely to be concentrated on a single brand.

C) Multibranding curbs the growth opportunities of established brands.

D) Each brand might obtain only a small market share, and none may be very profitable.

E) Multibranding causes companies to refrain from product diversification.

D) Each brand might obtain only a small market share, and none may be very profitable.

157) 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) social marketing strategies

D) co-branding

E) licensing

A) megabrand strategies

158) 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 differentiation

B) line extensions

C) brand experiences

D) brand sponsorships

E) brand awareness

C) brand experiences

159) The total financial value of a brand is brand value.

true

160) Attributes are the most desirable level for brand positioning because competitors can
easily copy attributes.

false

161) The strongest brands do not engage customers on a deep, emotional level.

false

162) A company should strive to build a brand name that becomes identified with the product
category, as Scotch Tape did.

false

163) Co-branding occurs when retailers and wholesalers create their own store brands.

false

164) Line extension refers to extending an existing brand name to new product categories.

false

165) 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.

true