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Indicate whether the statement is true or false.
1. The buyer’s intent can determine whether an item is classified as a consumer or a business product.
a. True
b. False
2. During a product’s maturity stage, all sales promotion efforts are focused on consumers.
a. True
b. False
3. Price cuts are typical in a product’s growth stage.
a. True
b. False
4. Sellers can sometimes prolong a product’s life cycle.
a. True
b. False
5. A red-and-white label on a soup can is an example of innovative packaging.
a. True
b. False
6. The term “cultural branding” describes how a brand conveys a powerful myth that consumers find useful in cementing
their identities.
a. True
b. False
7. A product need not be a physical product.
a. True
b. False
8. Family branding occurs when all of a firm’s products are branded with all or part of the same name.
a. True
b. False
9. Customers use brands to help judge product quality.
a. True
b. False
10. Supporting services, such as installation and guarantees, are part of a product.
a. True
b. False
11. Obtaining a specialty product involves a considerable amount of comparison activity.
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a. True
b. False
12. A brand name is the part of the brand that is spoken.
a. True
b. False
13. Brand insistence is the degree of brand loyalty in which a customer strongly prefers a specific brand, will accept no
substitute, and is willing to spend a great deal of time and effort to acquire that brand.
a. True
b. False
14. When a firm’s packages are designed to appear to be quite similar, the firm is using family packaging.
a. True
b. False
15. Suggestive brand names are easier to protect legally than fanciful names.
a. True
b. False
16. Early adopters are the first group of consumers to adopt a new product.
a. True
b. False
17. To try to be creative in developing a label is not worth the effort; most people prefer products to be labeled only with
the brand name and relevant consumer information.
a. True
b. False
18. Intensive competition causes price increases during the growth stage of the product life cycle.
a. True
b. False
19. Brand equity helps give a brand the power to capture and maintain a consistent market share, which provides stability
to an organization’s sales volume.
a. True
b. False
20. Apple Computer is an example of a manufacturer brand.
a. True
b. False
21. Trial is the first stage of the product adoption process.
a. True
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b. False
22. Marketers must balance consumer desire for convenience against environmental concerns.
a. True
b. False
23. Package shape, graphic design, and certain colors may be used to make a product appear taller than it actually is.
a. True
b. False
24. The original marketing strategy should not be altered in any way as a product travels through the stages of the product
life cycle because consumers can become confused.
a. True
b. False
25. A seller’s profits peak in the maturity stage of a product’s life cycle.
a. True
b. False
26. Family packaging cannot be used for individual product lines; it must apply to the entire product mix of the firm.
a. True
b. False
27. Labeling and packaging are closely interrelated
a. True
b. False
28. Package characteristics shape buyer impressions of a product during use.
a. True
b. False
29. Desirable product images can be created through the use of colors, design, shapes, and textures in packaging.
a. True
b. False
30. Brand preference is the strongest form or degree of brand loyalty.
a. True
b. False
31. Every aspect of a brand is subject to a marketer’s control.
a. True
b. False
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32. The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the
sounds and smells all contribute to the experiential element of its total product.
a. True
b. False
33. A product line is a particular version of a product that can be designated as a distinct offering on the organization’s list
of products.
a. True
b. False
34. Multiple packaging interferes with handling and storage of products.
a. True
b. False
35. A product mix is the composite or total group of products that an organization makes available to customers.
a. True
b. False
36. Procter & Gamble has a wider product mix than does Baskin Robbins.
a. True
b. False
37. Bread is usually a convenience product.
a. True
b. False
38. Nutritional information on labels is required by law, though consumers are indifferent to its availability.
a. True
b. False
39. The core product element of the total product can include installation, delivery, training, and financing.
a. True
b. False
40. During the growth stage, promotion costs rise as a percentage of total sales.
a. True
b. False
41. Labels facilitate product identification.
a. True
b. False
42. The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may
bring an early death to the product.
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a. True
b. False
43. Although difficult to measure, brand loyalty represents the value of a brand to an organization.
a. True
b. False
44. A brand name should indicate the product’s major benefits.
a. True
b. False
45. The first adopters of a product are the innovators.
a. True
b. False
46. A service is intangible and is the result of the application of human or mechanical efforts to people or objects.
a. True
b. False
47. A unique cap or applicator is an example of secondary-use packaging.
a. True
b. False
48. Brand recognition exists when a customer is aware that the brand exists and views it as an alternative to purchase if
the preferred brand is unavailable or if the other available brands are unfamiliar to the customer.
a. True
b. False
49. Compared to an unfamiliar brand, a familiar brand is more likely to be selected by a customer because it often is
viewed as reliable and of acceptable quality.
a. True
b. False
50. When an organization introduces a new product, people do not all begin the adoption process at the same time, nor do
they move through the process at the same speed.
a. True
b. False
51. Buyers want to exert only minimal effort to obtain shopping products.
a. True
b. False
52. The instruction “Refrigerate after opening” on a salad dressing label is an example of the descriptive function of
labeling.
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a. True
b. False
53. Brand preference is a degree of brand loyalty in which a customer definitely prefers one brand over competitive
offerings and will purchase this brand if available.
a. True
b. False
54. A product line includes a group of closely related product items that are considered to be a unit because of marketing,
technical, or end-use considerations.
a. True
b. False
55. The two major product categories are business and institutional.
a. True
b. False
56. Recently, buyers have shown an unwillingness to pay more for improved packaging.
a. True
b. False
57. Sometimes new marketing channels open up in the decline stage.
a. True
b. False
58. Use of the product is the most important means of distinguishing consumer products from business products.
a. True
b. False
59. Distribution outlets become more difficult to secure during the growth stage of a product’s life cycle because of
aggressive competition.
a. True
b. False
60. The production of private distributor brands for resellers may allow a manufacturer to use excess capacity efficiently.
a. True
b. False
61. The similar jar shapes for mayonnaise products are an example of category-consistent packaging.
a. True
b. False
62. The width of a product mix refers to the number of generic products offered by a company.
a. True
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b. False
63. A package can be used to attract customers’ attention.
a. True
b. False
64. Brand insistence is the strongest degree of brand loyalty but the least common type of brand loyalty.
a. True
b. False
65. The depth of a product mix is measured by the average number of product types in a product line.
a. True
b. False
66. Marketers must follow packaging technology and legislation to make modifications that ensure consumer safety.
a. True
b. False
67. Labeling is used to perform only two roles: to promote and to inform.
a. True
b. False
68. A product’s classification can influence its price, distribution, and promotion.
a. True
b. False
69. New products seldom generate enough sales to bring immediate profits.
a. True
b. False
70. Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.
a. True
b. False
71. Brand names should be different from the company name to avoid confusion.
a. True
b. False
72. A brand name used for a product line should be compatible with most of the products in the line.
a. True
b. False
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73. Brand equity is a customer’s favorable attitude toward a specific brand and, depending on strength, some likelihood of
consistent purchase of the brand when needs for a product in this product category arise.
a. True
b. False
74. Service, repair work, and accessories may be important considerations in a consumer’s decision to purchase a
particular shopping product.
a. True
b. False
75. Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain
market share.
a. True
b. False
76. Sears Kenmore is an example of a manufacturer brand.
a. True
b. False
77. Packaging can be used to communicate symbolically the quality or premium nature of a product.
a. True
b. False
78. The Food and Drug Administration requires that food processors indicate the amount of carbohydrates, calories, and
fat in a product.
a. True
b. False
79. The brands used for co-branding cannot be owned by the same company.
a. True
b. False
80. A buyer becomes aware of the product during the evaluation phase of the product adoption process.
a. True
b. False
81. Advertising used in the decline stage may prolong the life of the product.
a. True
b. False
82. Sandwich bread would more likely be packaged in a green wrapper than a yellow one.
a. True
b. False
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83. To gain customer acceptance, the two brands involved in co-branding must represent a complementary fit in the minds
of buyers.
a. True
b. False
84. A Jeep leather jacket is an example of brand licensing.
a. True
b. False
85. Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.
a. True
b. False
86. Process materials are used directly in the production of products.
a. True
b. False
87. Accessory equipment becomes a part of the finished product.
a. True
b. False
88. Co-branding capitalizes on the trust that customers have in both companies involved, especially when the brands
complement one another in the mind of the buyer.
a. True
b. False
89. Sales peak in a product’s maturity stage.
a. True
b. False
90. When a successful brand such as Frito-Lay develops a new product, it will always succeed.
a. True
b. False
91. The brand name “Minute Rice” would be more difficult to protect legally than “Exxon.”
a. True
b. False
92. Many products never get beyond the introduction stage.
a. True
b. False
93. Product mix refers to a related group of products in the product line.
a. True
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b. False
94. In the awareness stage of the product adoption process, the buyer seeks information about the product.
a. True
b. False
95. “The people who are in-the-know” are the early adopters.
a. True
b. False
96. By law, manufacturers must be identified on the labels of private brands.
a. True
b. False
97. A generic brand indicates only the product category.
a. True
b. False
98. Distribution capabilities can increase as a result of co-branding, which is an advantage for participating partners.
a. True
b. False
99. Per-unit gross margins on convenience products are relatively high.
a. True
b. False
100. The words “Grade A Eggs” on an egg carton fulfill a legal requirement of labeling.
a. True
b. False
101. Changing the product’s quality is a distinct alternative in the maturity stage of the product life cycle.
a. True
b. False
102. Labeling is most important for branding reasons.
a. True
b. False
103. Individual branding facilitates market segmentation.
a. True
b. False
104. Promotion decreases in importance during a product’s decline stage.
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a. True
b. False
105. The crush-proof cylinder package for Pringle’s potato chips is an example of innovative packaging.
a. True
b. False
106. Brand licensing gives a company the ability to gain more revenue and low-cost or free promotional exposure.
a. True
b. False
107. Four major elements underlie brand equity including brand name awareness, brand loyalty, perceived brand quality,
and brand associations.
a. True
b. False
108. The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.
a. True
b. False
109. Profits decline in the maturity stage, largely because of increased competition.
a. True
b. False
110. The Cool Whip container is an example of a secondary-use package.
a. True
b. False
111. Competition between manufacturer brands and private distributor brands is becoming more intense in several major
categories.
a. True
b. False
112. Laggards are the last to adopt a new product and usually distrust new products.
a. True
b. False
113. The Federal Trade Commission is solely responsible for establishing and enforcing packaging regulations.
a. True
b. False
114. Communicating product benefits to consumers is very important in the introduction stage.
a. True
b. False
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115. A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product
mix.
a. True
b. False
116. Package safety or convenience features can perform a promotional role.
a. True
b. False
117. “Business Services” is not a category or type of business product.
a. True
b. False
118. Registration of a brand with the U.S. Patent and Trademark Office provides a firm with worldwide rights to use that
brand for a specified time period.
a. True
b. False
119. Marketers may use brand names that have absolutely no meaning to avoid negative connotations.
a. True
b. False
120. Strategies relating to price become more mixed during a product’s maturity stage.
a. True
b. False
121. Many products are in the maturity stage of the product life cycle.
a. True
b. False
122. Packages are always secondary ingredients of a marketing strategy.
a. True
b. False
123. Consistency among package designs is essential for an organization’s product mix.
a. True
b. False
124. Green Giant is an example of a private distributor brand.
a. True
b. False
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125. Component parts usually need to be processed significantly before they are used in production.
a. True
b. False
126. The basic purpose of packaging is to create eye appeal.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
127. When a manufacturer is developing a product’s packaging, which of the following is most important to a reseller?
a. Whether the packaging is similar to other packages in the product line.
b. Whether the package facilitates transportation, storage, and handling.
c. The colors used on the package to attract customer attention.
d. Whether the packaging is viewed as environmentally friendly.
e. Whether the packaging has any potential possibilities for reuse other than its initial function.
128. A specialty product
a. requires minimal effort to purchase.
b. is purchased frequently.
c. requires purchase planning, and the buyer will not accept substitutes.
d. is generally less expensive than other items in the same product class.
e. prompts the purchaser to make comparisons among alternatives.
129. Labeling is important for three specific reasons, including promotional and legal reasons. What is the third reason?
a. Marketing
b. Branding
c. Strategy
d. Informational
e. Packaging
130. Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from
the producer?
a. Maturity
b. Growth
c. Introduction
d. Market reduction
e. Decline
131. A product mix is best described as
a. all products offered by a firm
b. product, distribution, promotion, and price.
c. many products sold by one firm.
d. all products of a particular type.
e. a group of closely related products that are considered a unit because of market, technical, or end-use
considerations.
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132. Which of the following is the most typical example of a new product introduction?
a. Pringles sold in snack-sized containers
b. A brand-new nut discovered in Africa
c. A car that uses no oil or gasoline
d. Shoes that literally make you run faster
e. A device that cools your car while parked outside
133. Which of the following should be the least important concern for marketers when selecting a brand name?
a. Choosing a name that is easy to say and recall
b. Positively suggesting the product’s major benefits
c. Designing a name that can be used in all different types of media
d. Developing an advertising campaign to introduce the name
e. Checking to see if the name is already trademarked by another company
134. A secondary-use package is defined as one that
a. can be used as a promotional tool.
b. can be reused for purposes other than its initial use.
c. facilitates transportation, storage, and handling for middlemen.
d. is recyclable and environmentally safe.
e. promotes an overall company image.
135. Which of the following is always used to determine the classification of a good?
a. Buyer’s intent for using the product
b. Amount of shopping required by the buyer to obtain the product
c. Price of the product
d. Specific product features
e. Industry competitors
136. Trying to link a motorcycle brand like Harley-Davidson to a food brand like Healthy Choice would be considered a
poor decision in this type of branding.
a. Co-branding
b. Individual branding
c. Family branding
d. Product branding
e. Wholesaler branding
137. Kleenex Boutique is a ____ of tissues made by the Kimberly-Clark Corporation.
a. brand mark
b. brand identification
c. brand name
d. trademark
e. trade name
138. A product that is simply labeled with the product category is considered a
a. private brand.
b. no-name product.
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c. generic brand.
d. poor quality item.
e. lean manufacturer brand.
139. Intuitiv Manufacturing’s large plastics molding machine suddenly broke down during its day shift. When considering
the purchase of available alternatives, Intiutiv decided to rent one for the next two years instead of buying one. In this
situation, the large plastics molding machine it rented would be classified as
a. an installation.
b. accessory equipment.
c. an unsought good.
d. a process material.
e. MRO supplies.
140. When banks add new services during the maturity stage, the objective they are most likely trying to achieve is
a. pruning items from the product line.
b. generating cash flow.
c. maintaining their market share.
d. filling geographic gaps.
e. increasing their market share.
141. During the growth stage of the product life cycle, marketers must
a. fortify the product position.
b. move to exclusive distribution.
c. raise the price.
d. increase promotion as a percentage of sales.
e. introduce private brands.
142. One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite
luggage. These various offerings exhibit this firm’s product mix
a. width.
b. depth.
c. length.
d. volume.
e. dimension.
143. The part of a brand that can be spoken including letters, numbers, and words is the
a. brand.
b. brand mark.
c. brand name.
d. trade name.
e. trademark.
144. The full and legal name of an organization is called the
a. trademark.
b. legal title.
c. organizational name.
d. brand name.
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e. trade name.
145. When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the
____ stage of the product life cycle.
a. introduction
b. growth
c. stabilization
d. maturity
e. decline
146. Marvel Comics allowed various organizations to use its Spiderman and Incredible Hulk characters to market a wide
variety of toys and clothing items. Marvel Comics received a percentage of the gross revenues. This is
a. brand licensing.
b. character exploiting.
c. co-branding.
d. family branding.
e. trademark leasing.
147. Through a series of court decisions, a hierarchy of brand protection based on brand type has been created. These
brand types include all but which of the following?
a. Arbitrary
b. Descriptive
c. Fanciful
d. Generic
e. Symbolic
148. Duncan Hines Brownie Mix has revised its packaging with the words “Real Hershey’s Chocolate In the Mix” on its
box. This is an example of ____ .
a. Brand extension
b. Brand licensing
c. Family branding
d. Co-branding
e. Cohort branding
149. The depth of a product mix is measured by the average number of
a. convenience products as compared with the number of specialty products.
b. different product lines offered by the company.
c. different products offered in each product line.
d. specialty products as compared with the number of convenience products.
e. product features that the company offers.
150. In the United States, toothpaste is sold in tubes and ketchup is sold in plastic bottles. However, in other parts of the
world, ketchup and tomato paste are also sold in tubes. If Heinz were to introduce ketchup in tubes in the United States,
consumers might have a more difficult time recognizing the ketchup product due to the change in the _____.
a. Category-consistent packaging.
b. Category-specific packaging.
c. Innovative packaging.
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d. Multiple-category packaging.
e. Selective packaging.
151. In which stage of a product’s life cycle is the firm focused on establishing and fortifying the product’s market
position by encouraging brand loyalty?
a. The maturity stage
b. The introduction stage
c. The decline stage
d. The growth stage
e. The rebirth stage
152. A ____ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions.
a. dealer
b. manufacturer
c. private distributor
d. store
e. wholesaler
Scenario 10.2
Use the following to answer the questions.
Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap
alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology.
Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi–Fi, video screens,
headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in
the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some
fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore,
Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with
similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while
the same fare through Greyhound’s traditional bus line costs $92.00. The benefit of Greyhound’s traditional line is that
there are more departure times and more stops in smaller towns along the way.
153. Refer to Scenario 10.2. When Greyhound launched the BoltBus and NeOn bus lines, this is an example of
a. a branding extension.
b. co-branding.
c. an extension in the width of the product mix.
d. an extension in the depth of the product mix.
e. family branding.
154. As Beth and Rob search for a new home, they are interested only in houses built by a particular builder. This
purchase is characteristic of a(n) ____ product.
a. branded
b. non-durable
c. unique
d. shopping
e. specialty
155. A Sony laptop that has an “Intel” logo on its keyboard is an example of
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a. brand extension.
b. brand licensing.
c. co-branding.
d. individual branding.
e. line family branding.
156. Twin-packs and six-packs are examples of
a. family packaging.
b. group packaging.
c. package bundling.
d. family branding.
e. multiple packaging.
157. Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These
products make up Sara Lee’s product
a. line.
b. item.
c. mix.
d. width.
e. depth.
158. During the decline stage of the product life cycle,
a. sales rapidly decrease.
b. market share is maintained.
c. competition is at a peak.
d. profits begin to fall.
e. profits peak and then begin to decline.
159. When Jiffy-Pop packaged its popcorn in an aluminum skillet, complete with attachable handle, it designed the
package to become the cooking utensil. After cooking, the handle was removed and the package became the popcorn
bowl. Jiffy-Pop’s popcorn in this case is an example of _____ packaging.
a. secondary-use
b. multiple
c. innovative
d. category-consistent
e. “green”
160. Procter & Gamble markets shampoo under several different brand names, including Pantene, Herbal Essences, Head
& Shoulders, and Aussie. For shaving products, Procter & Gamble markets several different razors under the Gillette
brand, including Gillette Mach3, Gillette Fusion, and Gillette ProGlide. They also use the Gillette name for shaving
creams, aftershaves, deodorants, and body washes. Procter & Gamble is using _____ branding for the shampoo category
and _____ branding for the shaving category.
a. individual; family
b. manufacturer; private
c. family; individual
d. brand-extension; private
e. individual; individual
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161. What is the most protectable brand type as determined by a series of court decisions?
a. Generic
b. Suggestive
c. Descriptive
d. Arbitrary
e. Fanciful
162. Brain Games, Inc. is a marketing research company which markets primarily to consumer products organizations.
Brain Games provides products that are most likely considered
a. component parts
b. MRO supplies.
c. process ideas
d. business services.
e. installations.
163. Craftsman tools, sold and branded by Sears, is an example of a ____ brand.
a. manufacturer
b. generic
c. wholesaler
d. private distributor
e. regional
164. Heinz promoting its vinegar as an effective cleaner for wall, glass, kitchen, and bathroom surfaces would most likely
be a strategy for the ____ stage of the product life cycle.
a. introduction
b. decline
c. growth
d. maturity
e. competitive
165. All Healthy Choice products come in green boxes with the same Healthy Choice logo. This is an example of the use
of
a. category-consistent packaging.
b. family packaging.
c. multiple packaging.
d. family branding.
e. group labeling.
166. Dannon Yogurt represents what type of product for most consumers?
a. Convenience
b. Business
c. Shopping
d. Specialty
e. Durable
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167. Jose went skiing one weekend with several of his friends. While at the slope, Jose injured his leg and needed to see a
doctor. Jose is likely going to view solutions to his problem as
a. specialty products.
b. installations.
c. unsought products.
d. shopping products.
e. convenience products.
168. During the maturity stage
a. product modifications are unnecessary.
b. there is less emphasis on changing a product’s price.
c. marketing strategies are rarely altered.
d. some competitors are forced out.
e. limited advertising expenditures are required to maintain market share.
169. The talking gecko used by Geico Insurance facilitates the development of
a. brand associations.
b. brand quality.
c. product preference.
d. brand loyalty.
e. product equity.
170. MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets
a. services.
b. ideas.
c. goods.
d. tangible products.
e. features.
171. When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out, he exhibits
brand
a. loyalty.
b. insistence.
c. preference.
d. acknowledgement.
e. recognition.
172. Facilities, factories, and production lines with very large equipment are all classified as
a. accessory equipment.
b. permanents.
c. installations.
d. component parts.
e. MRO facilities.
173. What degree of brand loyalty is the strongest and most desired by marketers?
a. Preference
b. Requirement