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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.
295. Refer to Scenario 10.2. The closest competitor for Megabus is Greyhound Lines. Greyhound Lines has been n
business for many years, offering basic transportation services until the introduction of their new BoldBus and NeOn.
Even though both companies are in the bus transportation business, Greyhound Lines is most likely in the ____ stage of
the product life cycle, while Megabus is in the _____ stage.
a. Maturity; Introduction
b. Maturity; Growth
c. Growth; Maturity
d. Growth; Decline
e. Decline; Growth
296. You are head of a nonprofit organization that has been granted a license to sell products in a small booth in your
local airport. You want to maximize your revenue from this venture by selling products that are inexpensive and
frequently purchased. Which of the following types of products should you sell?
a. Unsought products
b. Business products
c. Specialty products
d. Shopping products
e. Convenience products
297. Although they become part of a larger product, ____ can often be easily identified and distinguished on the larger
product.
a. component parts
b. accessory parts
c. raw materials
d. process materials
e. MRO supplies
298. Products used directly in the production of a final product but are not easily identifiable are categorized as
a. accessory products.
b. component parts.
c. MRO supplies.
d. assembly components.
e. process materials.
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299. Private distributor, generic, and manufacturer are the three types of
a. equity.
b. brands.
c. producers.
d. packaging.
e. trade names.
300. Sales of Schwinn’s apartment-sized exercise machine have experienced a steady climb; however, the profits have
been negative. The Schwinn exercise machine is most likely in the ____ stage of the product life cycle.
a. decline
b. growth
c. initial
d. maturity
e. introduction
301. In a brand licensing arrangement, the licensee is responsible for
a. providing the brand name to another organization for use in promoting products.
b. collecting the royalties from sales of the licensed products.
c. half of the financial losses in the event that the licensed brand is a failure.
d. the production, but not the marketing of the licensed product.
e. the manufacturing, marketing, and financing of the licensed product.
302. When we speak of the number of product lines that a company offers, we are referring to the ____________ of the
company’s product mix.
a. width
b. depth
c. length
d. size
e. volume
303. While Alec’s grandfather still prefers using a land line, he just bought his first cell phone. Alec’s grandfather is most
likely oriented toward the past and is a member of the ____ group.
a. non-adopters
b. laggards
c. innovators
d. late adopters
e. late majority
304. If Ralph Lauren, a designer of fine clothing, authorized Dan River Mills to market a line of sheets under the Ralph
Lauren name⎯this arrangement is an example of
a. brand extension.
b. brand licensing.
c. product continuation.
d. private branding.
e. individual branding.
305. Of the following choices, which would be the easiest brand name to legally protect?
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a. Tarzink Yogurt
b. Learn and Grow Daycare
c. Scout Camping Supplies
d. Sullivan Water Filtering Systems
e. Western County Distributors
306. A co-branded product from Sony and Martha Stewart would likely fail because
a. neither of these brands is very well known to consumers.
b. their products are not complementary.
c. they are both food products.
d. this co-branding will not provide product differentiation.
e. the market segment for this product is too vast
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.
307. Refer to Scenario 10.2. What product(s) is Megabus marketing?
a. Megabus is a service and therefore is not marketing a product.
b. The ride between cities is a service product and is the only one Megabus is marketing.
c. The ride between the cities, which is the core product, plus the supplemental features of Wi–Fi, video screens, and
other technology.
d. The ride between cities, which is a convenience product.
e. The ride between cities, which is a shopping product.
308. Federal laws require the disclosure of nutritional information on labels. So far, evidence on this matter
a. indicate that consumers regularly use the information.
b. have been conducted only by the federal government.
c. have shown mixed results about the use of this information.
d. prove that labels are necessary only for promotional reasons.
e. indicate that consumers do not use the information.
309. A major advantage of using individual branding is that
a. the promotion of one of the company’s brands will also promote the company’s other brands.
b. this branding policy will prevent the overextension of a brand name to products that are completely unrelated to
the original.
c. a poor quality product will not contaminate all of the company’s other products with negative images.
d. a specific brand name for each product will help the company grow during times of economic recession.
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e. the quality of one of the company’s products will help increase the perceived quality image of the company’s other
related products.
310. A(n)____________ is a tangible physical entity.
a. idea
b. attribute
c. service
d. feature
e. good
311. Jeff went to his local supermarket to purchase cola, chips, dip, and salsa for the weekend’s gathering to watch the
football game. As far as the cola goes, Jeff thinks they all taste the same and buys either Coke or Pepsi, whichever is on
sale. However, for the chips, he likes to buy Doritos White Corn when the store has them. While at the store, he picks up
Coke and Santidas Corn chips because the store did not have the Doritos. When he gets to the salsa aisle he finds that his
favorite brand, Pace’s is out of stock. Rather than buy a different brand, he goes to another store to find the Paces. Jeff’s
brand loyalty on this shopping trip can be described as ___ for the cola, ___ for the chips, and ___ for the salsa.
a. recognition; preference; loyalty
b. recognition; preference; insistence
c. awareness; preference; insistence
d. preference; awareness; insistence
e. awareness; insistence; preference
312. If a brand is extended too many times, one major risk is that it can lead to _____.
a. family branding
b. brand dilution
c. co-branding
d. line extensions
e. generic branding
313. Which stage in the product life cycle is critical to a product’s survival because competitive reactions to the product’s
success during this period will affect the product’s life expectancy?
a. Decline
b. Expansion
c. Growth
d. Introduction
e. Stabilization
314. You developed a new smartphone cover that you have been selling at flea markets around your hometown. You have
been pleasantly surprised at how successful the covers have been so far. However, you are becoming increasingly
concerned that some copycat vendors have begun selling similar products that have names that are very close to your
products name. What should you do?
a. Incorporate your product’s name.
b. File the necessary papers to establish your legal right to your brand mark.
c. File the necessary papers to establish your legal right to your brand.
d. File the necessary papers to establish your legal right to your trademark.
e. Increase your brand recognition by doing more marketing.
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315. Which of the following types of products would be the most difficult to brand?
a. Oatmeal
b. Soap
c. DVD players
d. Automobiles
e. Tax preparation services
316. Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____ function of
packaging.
a. protection
b. reusability
c. cost effectiveness
d. safety
e. convenience
317. Lindsay stops by the Safeway grocery, her preferred store, on the way home from work. She picks up her usual brand
of laundry detergent and orange juice, but she sees that there are no more range-free eggs available. Lindsay is very
concerned about the ethical treatment of animals and so she leaves Safeway and goes to another grocery to purchase the
range-free eggs. Lindsay’s purchase of the laundry detergent and orange juice would most likely be classified as _____
products. Her purchase of the eggs would most likely be classified as ______ products.
a. convenience; brand loyal
b. convenience; shopping
c. convenience; specialty
d. shopping; specialty
e. shopping; shopping
318. The various products carried by a retailer can also have dimensions of width and depth. For example, Dick’s
Sporting Goods carries sports clothes, shoes, exercise equipment, hunting and fishing equipment, camping supplies, and
other products. Bass Pro Shops carries fishing equipment, but has a larger selection of different models and brands. In this
case, the product mix of Dick’s Sporting Goods is ___, and the product mix of Bass Pro Shops is ____.
a. deep; wide
b. wide and deep; wide and shallow
c. deep and wide; deep and wide
d. wide; deep
e. wide; long
319. When a product tries to capitalize on the brand equity of two separate brands, marketers are using
a. licensing.
b. dual-branding.
c. partnerships.
d. brand extension.
e. co-branding.
Scenario 10.1
Use the following to answer the questions.
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When Silk Soymilk began packaging its chocolate milk in single-serving sizes, the company chose drink boxes that did
not need refrigeration. The boxes were only sold in shrink-wrapped sets of six. Single boxes were not available at grocery
stores or convenience markets. Once the Silk chocolate product was selling well, they also began offering the Silk
Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as
its larger half-gallon versions. The only difference in packaging style was the brown color for chocolate milk and the
color white for vanilla.
320. Refer to Scenario 10.1. Silk Soymilk’s strategy of packaging its single-serve boxes of chocolate milk to look like its
half-gallon cartons is known as ___
a. a brand extension.
b. individual packaging.
c. manufacturer branding.
d. family packaging.
e. multiple packaging.
321. The weakest level of brand loyalty is brand
a. recognition.
b. insistence.
c. equity.
d. trial.
e. preference.
322. Everything associated with the product, including its symbolism and experiences is the____________.
a. brand name
b. brand mark
c. brand
d. trademark
e. product appeal
323. The Anderson Advertising Agency was developing a name for their client’s new paper towel product. They finally
settled on the name, “Soaker.” Regarding the factors that marketers consider when selecting a brand name, which one
does this best fulfill?
a. Compatibility with other products in the line
b. Flexibility to be used in various types of media
c. Using fabricated names that cannot be duplicated
d. Indicating the product’s major benefits
e. Keeping the brand name easy to remember
324. Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and
chose a flight on Southwest Air lines because, for a similar price to other airlines, it had a better reputation for service. For
Shannon, this flight is an example of which type of product?
a. Shopping
b. Convenience
c. Specialty
d. Unsought
e. Durable
325. To use co-branding effectively, which one of the following is probably least important?
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a. The brands involved should represent a complementary fit in a customer’s mind.
b. The brands that are teamed together should not lose their individual identities.
c. The brands involved should be owned by two or more organizations.
d. To avoid confusion on the part of customers, co-branding should be done in a way so that it is obvious which
brand is the main brand or key brand.
e. The co-branded product should be able to benefit from the distribution system of both brands involved.
326. Riley prefers to buy Pantene Shampoo for Colored Hair, however, if that is not in stock, she will buy L’Oreal or
Garnier Fructis. Riley’s level of brand loyalty can be described as ___.
a. recognition.
b. acceptance.
c. preference.
d. insistence.
e. acknowledgement.
327. An individual moves into the adoption stage of the product adoption process at the point when he or she
a. is self-motivated to get information about the product.
b. begins using that specific product.
c. seriously considers whether the product will satisfy his or her needs.
d. experiences the product for the first time.
e. becomes aware that the product exists.
328. You are the assistant manager for consumer product adoption strategies. Your job requires you to manage the third
stage of the five-stage product adoption process. Which one of the following statements is true in regards to your job
focus?
a. You should focus on making sure buyers are aware of your product’s existence.
b. You should focus on encouraging the current buyers of your product to become repeat buyers.
c. You should focus on making sure buyers clearly understand your product’s benefits.
d. You should focus on providing information about your product.
e. You should focus on encouraging buyers to just try your product.
329. Packages designed to appeal to children often use
a. bold designs and primary colors.
b. clear color and simple designs.
c. black and white only.
d. pastels and soft images.
e. lots of writing and little color.
330. The makers of Tide Detergent created “pods” of the product, characterized by a small, square, plastic-wrapped
packet that was easier to use. Since it is packaged in these square pods, it requires no measuring and can be transported
more easily if one is carrying clothes to a laundromat. This change in packaging is a strategy that can most likely help
boost sales in the ____ stage of the product life cycle.
a. maturity
b. growth
c. introduction
d. market reduction
e. decline
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331. Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an
example of which type of business product?
a. Raw materials
b. Installations
c. Accessory equipment
d. Component parts
e. Process materials
332. A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n)
a. component part.
b. specialty item.
c. accessory equipment.
d. raw material.
e. process material.
333. When Starbucks introduced their instant coffee brand, Via, the company only sold it in packages of three single-cup
units. Starbucks’ primary objective for selling Via in three-unit packages rather than single-unit packages was most likely
a. to encourage the consumer to try the product several times.
b. to encourage a higher consumption of all Starbucks products.
c. to sell more because of infrequent coffee purchases.
d. to reduce costs in the distribution and handling of the Via products.
e. to engage in environmentally responsible behavior.
334. Ava, a purchasing agent for Trailsend Transport, is currently buying carpet from CarpetOne Inc. for use in an office
area at Trailsend. While she is discussing the details of this carpet, the representative from CarpetOne tells her that she
can see the actual product in one of their retail stores before finalizing the purchase. While in the retail store at CarpetOne,
Ava not only approves the purchase for the office, but also decides she would like to purchase some of the same carpet for
her home. The first carpet purchase is considered a ____ and the second carpet purchase is considered to be a ______.
a. personal purchase; business purchase
b. business product; business product
c. consumer product; consumer product
d. business product; consumer product
e. consumer product; business product
335. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey’s Kisses, Reese’s
Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey’s product mix
a. width.
b. depth.
c. length.
d. volume.
e. life cycle.
336. Customers will more easily recognize a new product as belonging to a particular product category if the marketers
use
a. family branding.
b. innovative packaging.
c. category-consistent packaging.
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d. category labeling.
e. product category packaging.
337. The stage of the product life cycle when marketers consider eliminating products that are not contributing to
profitability or the overall effectiveness of a product mix is the ____ stage.
a. maturity
b. decline
c. growth
d. introduction
e. reorganization
338. Business products that are purchased routinely, do not become part of finished goods, and are expense items rather
than capital goods are called
a. raw materials.
b. installations.
c. accessory equipment.
d. component parts.
e. process materials.
339. Which of the following is not a stage in the buyer’s product adoption process?
a. Awareness
b. Adoption
c. Trial
d. Exploration
e. Interest
340. When Anheuser-Busch added Michelob Light to the line of Michelob beers, the firm was using ____ branding.
a. brand-extension
b. individual
c. family
d. selective
e. licensed
341. Products are classified as being business or consumer products according to the
a. number of buyers involved in the decision.
b. buyer’s intended use of the product.
c. seller’s intended use of the product.
d. location of use.
e. types of outlets from which they are purchased.
342. Multiple packaging is
a. likely to decrease serving size.
b. the same as family packaging.
c. likely to increase demand.
d. the most effective type of packaging for decreasing demand.
e. the most expensive type of packaging.
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343. A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an
example of which type of business product?
a. Raw material
b. Installations
c. Accessory equipment
d. Component part
e. Process material
344. A package of aluminum foil at Kroger supermarket has only a white package with black letters stating “aluminum
foil.” This product is an example of a ____ brand.
a. manufacturer’s
b. private distributor’s
c. no-name
d. generic
e. no–frills
345. Business products are classified into the following seven categories according to characteristics and intended uses:
raw materials, installations, accessory equipment, component parts, process materials, business services, and
a. production activities.
b. service assistance.
c. specialty industrial products.
d. computer programming and operation services.
e. MRO supplies.
346. Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a
customer’s ____ than an unfamiliar brand.
a. inept set
b. loyalty set
c. preference group
d. brand group
e. consideration set
347. The label on a window air conditioner reads “uses up to 20% less energy.” For what reason is this phrase most likely
used?
a. To provide product use information.
b. To encourage multiple purchases.
c. To promote the product.
d. To satisfy legal requirements.
e. To encourage the proper consumption patterns of the product.
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
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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.
348. Refer to Scenario 10.2. Casey is searching the website of Megabus.com for the schedule and fares of a trip between
Buffalo, NY and New York City. Casey is most likely in which of the following stages of the product adoption process?
a. adoption
b. trial
c. evaluation
d. interest
e. awareness
349. As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have
purchased can best be classified as a
a. raw material.
b. processed component.
c. component part.
d. service.
e. business product.
350. Which of the following co-branded products would be most likely to fail?
a. Breyers Ice Cream featuring Girl Scout Cookies
b. Lip Smacker lip gloss featuring Girl Scout Cookies
c. Coffee-mate coffee creamer featuring Girl Scout Cookies
d. Weight Watchers frozen dinners featuring Girl Scout Cookies
e. Nestle Crunch candy bars featuring Girl Scout Cookies
351. In the packaging for a new line of beef jerky, Hormel should avoid the use of ____ in its packaging.
a. Red
b. Yellow
c. Orange
d. Green
e. Clear
352. Elements that help create brand equity include all of the following except brand
a. quality.
b. associations.
c. loyalty.
d. recognition.
e. awareness.
353. McDonald’s golden arches are a classic example of a
a. brand.
b. brand symbol.
c. brand name.
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d. brand mark.
e. trademark.
354. Planters is concerned that acquiring a taste for its new product, honey-roasted macadamia nuts, takes time. Planters
should use ____ packaging for its new product.
a. family
b. multiple
c. tamper-resistant
d. unlabeled
e. transparent
355. Which of the following statements does not apply to convenience goods?
a. Consumers are brand loyal to convenience products and are not likely to substitute other brands.
b. Convenience products require minimal shopping effort.
c. Marketing of convenience products requires intensive exposure of these goods in as many stores as possible.
d. Consumers tend to feel that the most desirable retail facility for convenience products is the closest one.
e. Colas, gasoline, and bread are good examples of convenience goods.
356. Minerals, chemicals, timber, and agricultural products are considered
a. process materials.
b. accessory materials.
c. MRO supplies.
d. component parts.
e. raw materials.
357. In order to manufacture its vehicles, Ford needs to purchase large robotic arms that become permanent fixtures in
their assembly plants. These robotic arms are best described as
a. component parts
b. accessory equipment
c. installations
d. process materials
e. MRO supplies
358. Which of the following statements about labeling is false?
a. The label can be used to facilitate the identification of a product.
b. Labels do not have to disclose nutritional information.
c. The label indicates the quality of the product.
d. Labeling is used to describe the product.
e. The label can play a promotional function.
359. Gain liquid laundry detergent comes in a 40-ounce plastic bottle with a pour spout. When that bottle is empty,
consumers can purchase Gain in a plastic pouch designed to refill the original 40-ounce plastic bottle. The pouches use
less packaging, store flat, and cost less; however, they are not for repeated usage. The use of the original Gain 40-ounce
bottle is an example of a(an)
a. reusable container.
b. innovative package.
c. second-round package.
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d. secondary-use package.
e. dual purpose package.
360. When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of
being in the ____ stage of the product life cycle.
a. maturity
b. growth
c. introduction
d. market reduction
e. decline
361. Private distributor brands are owned by retailers and do not identify the manufacturer of the product. Which of the
following is an example of a private distributor brand?
a. Green Giant corn
b. Dell computers
c. Sears Kenmore washers
d. Little Debbie snack cakes
e. Nike Air Jordan basketball shoes
362. Your firm just completed its annual marketing strategies conference where all the top marketers in the firm get
together to discuss last year’s sales and marketing performance. In this year’s meeting, there was a lot of discussion about
improving the firm’s product life cycle management. There was a lot of discussion about how best to manage a product
that is in the decline stage. You were assigned the responsibility for managing all products in the decline stage using a
harvesting approach. Based on this directive, you will:
a. immediately withdraw all marketing support for products in the decline stage.
b. arrange for another firm to acquire the products in the decline stage.
c. slowly increase marketing expenditures on products in the decline stage.
d. gradually reduce marketing expenditures on products in the decline stage.
e. develop an aggressive, resource-intensive marketing mix for products in the decline stage.
363. Explain the major stages of the product adoption process.
364. Distinguish between consumer products and business products.
365. Explain the difference between brand name and trademarks.
366. Discuss the dimensions of a product mix.
367. What is brand loyalty? Explain the three degrees of brand loyalty.
368. What is brand equity, and what are the major elements that underlie brand equity?
369. What are private distributor brands? Describe their characteristics.
370. What is co-branding? Explain what makes co-branding effective.
371. What steps should a marketer take to protect a brand name from use by others?
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372. How do sellers benefit from the use of brand names and brand marks?
373. What major changes in a marketing strategy may be required as a product moves into the maturity stage of the
product life cycle?
374. Discuss the implications for a firm’s marketing strategy of classifying a product as a convenience, shopping,
specialty, or unsought item.
375. Discuss some of the issues a marketer should consider when marketing a shopping product.
376. In what ways can packaging be used strategically?
377. Identify and describe the major categories of business products.
378. Describe and illustrate the four major categories of consumer products.
379. Discuss the branding strategies marketers can use. What are the two policies used by a firm to brand its products?
380. What is a product? Provide an example of each type of product.
381. What are the major functions of a label?
382. What are the factors that marketers should consider while selecting a brand name?
383. Discuss the marketing efforts that are likely to be used during the growth stage of the product life cycle.
384. Identify the major stages of the product life cycle, and explain how industry sales and profits vary across these
stages.
385. What functions do packages perform? What are the factors marketers should consider when developing packages?
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Answer Key
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