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M: Marketing, 6e (Grewal)
1) A product is anything that is of value to a consumer and can be offered through a voluntary
marketing exchange.
2) Effective packaging and labels send consumers the signal "Buy me!"
3) A company's product line consists of its various product mixes.
4) Brands enable customers to quickly differentiate one firm or product from another.
5) Brand equity is calculated by subtracting sales of generic brands from the sales of branded
items in a category.
6) The more familiar customers are with a brand, the harder their decision-making process will
be.
7) Harold is a loyal Coca-Cola customer. Loyal customers like Harold require lower marketing
expenditures, benefiting businesses like Coca-Cola.
8) Private-label brands are imitations often sold by street vendors.
9) For a company like Pepsi, brand dilution occurs when it sells more product than the
competition.
10) In entertainment licensing, the major risk to licensees is that the brand will become
overexposed.
11) A product label is just a required sticker on a package.
12) When purchasing a mobile phone, the product you are buying is more than just the phone.
13) A customized carved cedar wood sign for your house is an example of a convenience
product.
14) For the average college student, a retirement account would be a shopping product.
15) Kellogg's sells many different breakfast cereals, including Corn Flakes, Rice Krispies,
Frosted Flakes, Raisin Bran, and Special K. This is an example of the breadth of the Kellogg's
product mix.
16) If Microsoft decided to sell mobile phones under the Xbox brand (which it uses for its
gaming systems), this would be an example of a line extension.
17) Sales of private-label brands continue to increase, particularly in big-box stores such as
Costco and Trader Joe's.
18) When Jaclyn selects a case of Sprite at the grocery store for her party, she is attracted by the
holiday-themed box featuring green and white bells. What Jaclyn is seeing is referred to as the
secondary package.
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19) Jenny traded in her old car for her heart's desire, a new Lexus sedan. The Lexus is considered
a specialty product.
20) Nike sells shoes, clothing, and athletic gear. These represent the breadth of Nike's products.
21) A decrease in a company's product depth will always hurt its marketing efforts.
22) A familiar brand name always helps the sales of a product.
23) Claire always liked Lands' End raincoats, so when she was shopping for a winter coat, she
ordered one from Lands' End without thinking too much about it. This demonstrates how brands
facilitate purchases.
24) Brands are assets that can be legally protected through trademarks.
25) When Mars manufactures M&M's, Snickers, and other confectionary products, or when Trek
designs bicycles, each company's core question is: How do we produce this product in the least
expensive manner?
26) A product is ________ that can be offered through a voluntary marketing exchange.
A) the combination of a firm's marketing mix
B) the brand associations
C) the category depth
D) a tangible item
E) anything of value to consumers
27) The complete set of all products offered by a firm is called its
A) product line.
B) product categories.
C) product mix.
D) product breadth.
E) product line depth.
28) A ________ is a group of associated items that consumers tend to use together or think of as
part of a group of similar products.
A) product line
B) product mix
C) product mix breadth
D) line extension
E) brand extension
29) For a major university, undergraduate studies, graduate studies, and professional programs
would be ________ within the university's product mix.
A) brand associations
B) family brands
C) co-brands
D) product lines
E) private-label brands
30) It is almost impossible to watch a sporting event on television without seeing Nike's swoosh,
which is Nike's
A) name.
B) symbol.
C) design.
D) term.
E) theme.
31) In 2015, Nike signed an 8-year, $1 billion apparel deal with the NBA. This is an example of
a deal for ________ rights.
A) branding
B) licensing
C) product line
D) rebranding
E) repositioning
32) Zappos is a successful online shoe company. One of the difficulties in running a shoe
company is the need to have significant ________, a large number of items in each product line.
A) brand equity
B) product line breadth
C) product line depth
D) product mix depth
E) product mix breadth
33) Marketers with successful brands sometimes hesitate to expand their brands because
A) Federal Trade Commission regulations limit the number of products that can be marketed
under an individual brand name.
B) it is costly to maintain many product lines, and it might weaken the brand's meaning.
C) it is often difficult to get additional marketing communications coverage for the brand.
D) manufacturing divisions usually control brand expansion and are often in conflict with the
marketing division.
E) the current economy can support only a limited number of product options.
34) All of the following scenarios illustrate a reason why a firm would eliminate an item within a
product line except
A) the firm decided to refocus marketing efforts elsewhere.
B) the firm must respond to evolving markets.
C) the product undermined its own brand.
D) the product being eliminated is unprofitable.
E) the firm has decided to capture new markets.
35) For many years, General Electric had a corporate strategy of being among the top three firms
in any market in which it operated; if it could not achieve a top-three position, it would exit the
market. This strategy often resulted in the company ________ when certain product lines failed
to meet this expectation.
A) increasing product line depth
B) decreasing product line depth
C) decreasing product mix breadth
D) increasing product mix breadth
E) introducing brand extensions
36) The decision to delete a product is never taken lightly because, generally, manufacturers
A) have offered the product line to other firms for purchase.
B) have made substantial investments in product development and manufacturing.
C) have promised consumers they will maintain the product.
D) have used brand repositioning to improve results.
E) must meet federal standards when taking products off the market.
37) A university that has separate graduate and undergraduate admission offices recognizes that
these are distinct
A) brand associations.
B) product lines.
C) product mixes.
D) brands.
E) augmented services.
38) One important purpose of a brand is to
A) capture advertising space.
B) minimize product line depth needed to be effective.
C) increase consumer recognition and awareness.
D) reduce product packaging.
E) meet government regulations.
39) In addition to extensive online and outdoor advertising, Under Armour has intensified its
________ efforts by signing Washington Nationals baseball star Bryce Harper to the biggest
endorsement deal for an MLB player.
A) logo
B) branding
C) social media
D) value
E) differentiation
40) For a brand name to be effective, it needs to be
A) easy for consumers to recognize and remember.
B) a catchy, tongue-twisting phrase.
C) a visual image containing human characters.
D) generic, so it can be applied to as many products as possible.
E) associated with a sports or movie superstar.
41) One key feature of the value of a strong brand is that
A) it can protect the firm from competition.
B) it no longer needs to be supported by advertising and promotion.
C) if it becomes a generic name, the brand is worth even more.
D) it cannot be successfully imitated by a retailer's own brand.
E) competitors will typically abandon a sector altogether rather than compete.
42) When consumers associate a brand with a certain level of quality and familiar attributes,
allowing consumers to make quick decisions, the brand
A) establishes novelty.
B) is the only one the consumer will consider.
C) reduces delivery costs.
D) facilitates purchasing.
E) creates brand dilution.
43) Parents of young children have been known to drive out of their way so their kids will not
see McDonald's Golden Arches and plead with their parents to stop. For McDonald's, the Golden
Arches reduce marketing costs because people (including young children)
A) have memorized the McDonald's menu.
B) prefer yellow to other colors.
C) know what the Golden Arches brand symbol means.
D) recognize increases in product line depth.
E) are sensitive to brand repositioning.
44) Firms that use the same brand name for new products can spend relatively less on marketing
costs for the new product because
B) consumer loyalty can be bought for less now compared to the past.
C) brand equity can be obtained only by means of product line depth.
D) people already know what the brand means.
E) well-known brands are less likely to introduce brand extensions.
45) The XYZ car manufacturing company is advertising its new hybrid vehicle. It understands
that its competition, Toyota's hybrid car, the Prius, is known for being economical, a good value,
stylish, and good for the environment. Toyota has the advantage of
B) brand awareness.
C) brand extensions.
D) generic branding.
E) brand associations.
46) When Amanda shops for lipstick, she always buys Really Red by Cover Girl. This is an
example of
A) brand loyalty.
B) brand awareness.
C) brand association.
D) brand equity.
E) perceived value.
47) The value of a brand is often calculated by assessing the
A) difference between brand equity and brand liability.
B) corporate profitability divided by the monthly brand earnings.
C) earning potential of the brand over the next 12 months.
D) effect of brand dilution if it occurred.
E) average product line depth.
48) Marketing expenditures allocated carefully can result in greater brand recognition,
awareness, perceived value, and consumer loyalty for the brand, which all enhance the brand's
A) positioning.
B) licensing.
C) association.
D) equity.
E) solvency.
