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Indicate whether the statement is true or false.
1. An organization’s product mix includes all of the products it sells.
a. True
b. False
2. Each product item in the product mix may require a separate marketing strategy.
a. True
b. False
3. A service mark is the exclusive right to use a brand or part of a brand.
a. True
b. False
4. Trademark rights come from registration rather than use.
a. True
b. False
5. The key distinction between the consumer products and business products is their intended use.
a. True
b. False
6. The universal product codes (UPC) system and scanners are used in scanner-based research.
a. True
b. False
7. Greenwashing is the term used to describe industrial processes that cause pollution above the permissible limit set by
the government.
a. True
b. False
8. Washers, dryers, refrigerators, and televisions are examples of unsought products.
a. True
b. False
9. Scanning universal product codes (UPCs) slows down the process of recording customer purchases at high-volume
outlets.
a. True
b. False
10. Express warranties range from simple statements to extensive documents written in technical language.
a. True
b. False
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11. Services and ideas are not considered products because they are intangible.
a. True
b. False
12. Insurance, burial plots, and similar items fall under the convenience products category.
a. True
b. False
13. A one-brand-name strategy is useful when the marketer wants the brand to appear to be a local brand, or when
regulations require localization.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
14. Remnants Perfumes is a high-end, exotic women’s fragrance. The manufacturers of Remnants Perfumes want to
establish their products as specialty products. In this case, which of the following will be an objective of the
manufacturers of Remnants Perfumes?
a. To employ mass advertising strategies
b. To increase the distribution network
c. To focus on establishing a brand name
d. To decrease the prices of the products
15. Zingz is a soft drink that is widely distributed across cities. It is available at gas stations, department stores, and
vending machines. Consumers buy the soft drink without much thought or effort. Zingz is an example of a _____.
a. unsought major product
b. specialty product
c. convenience product
d. shopping product
16. Which of the following statements is true of an organization’s product mix?
a. Firms widen their product mix to capitalize on established reputations.
b. A wide product mix decreases sales and profit-making potential.
c. A wide product mix means that the product line is deep.
d. All product items in a product mix follow a standard marketing strategy.
17. Which of the following statements is true of an implied warranty?
a. It prohibits other firms from using a brand or part of a brand without permission.
b. It gives the impression of environmental friendliness to a product.
c. It ranges from simple statements to extensive documents written in technical language.
d. It comes with the sale of every product under the Uniform Commercial Code.
18. Which of the following statements is true of an express warranty?
a. It gives the impression of environmental friendliness to a product.
b. It is an unwritten guarantee that a good or service is fit for the purpose for which it is sold.
c. It prohibits other firms from using a brand or part of a brand without permission.
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d. It ranges from simple statements to extensive documents written in technical language.
19. Baking Paradiso, a bakery, sells a variety of biscuits in different flavors, apart from other items such as bagels and
doughnuts. Its range of biscuitsbest exemplifies a _________.
a. market segment
b. target market
c. product mix
d. product line
20. Three Arrows Inc. is a company that manufactures bags from recycled paper. Its marketers receive complaints that the
bags easily become wet and tear after a few weeks of use. They decide to respond to their customers’ needs by using a
thicker, waterproof paper. This is an example of _____.
a. product placement
b. functional modification
c. planned obsolescence
d. quality modification
21. Micron Processors is a computer manufacturing company. Its computers do not have technical specifications written
on the packages and instead have words such as “fastest” and “energy efficient.”In this case, Micron Processors is using
_________.
a. persuasive labeling
b. informational labeling
c. complementary branding
d. cooperative branding
22. TechNova, an electronics company, sells portable music players, speakers, laptops, smartphones, and smartwatches.
All the items sold by TechNovarepresent the company’s _________.
a. brand equity
b. product line
c. brand mark
d. product mix
23. A difference between informational labeling and persuasive labeling is that informational labeling:
a. focuses on a promotional theme or logo rather than consumer information.
b. increases a consumer’s cognitive dissonance after a purchase.
c. helps a consumer make proper product selections when making a purchase.
d. gives an impression of environmental friendliness to a product.
24. A cell phone manufacturing company is said to functionally modify one of its products if it:
a. introduces a sleek and stylish version of the cell phone with the same specifications.
b. reduces the price of the cell phone ahead of a sale.
c. introduces stylish headphones for the cell phone.
d. releases a software update to fix the cell phone’s heating problem.
25. Consumers usually buy a _____ only after comparing several brands or stores on style, practicality, price, and lifestyle
compatibility.
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a. major product
b. specialty product
c. convenience product
d. shopping product
26. A _____ occurs when a company’s management decides to add products to an existing product line in order to
compete more broadly in the industry.
a. product line reeling
b. product line extension
c. product line classification
d. product line contraction
27. The most obvious function of packaging is to:
a. secure the right of a company to use a brand or part of a brand.
b. protect a brand name from being declared a generic product name.
c. even out seasonal sales patterns.
d. contain products that are liquid, granular, or otherwise divisible.
28. Gypsy Foods Inc. is a multinational food and beverage company. Its labels are colorful and project the words ‘new’
and ‘improved’ along the product’s name. The packages do not provide details about the product’s ingredients. In this case,
Gypsy Foods is using _____.
a. persuasive labeling
b. informational labeling
c. perspective labeling
d. cooperative labeling
29. _____ occurs when two brands receiving equal treatment borrow from each other’s brand equity.
a. Ingredient branding
b. Cooperative branding
c. Complementary branding
d. Family branding
30. Identify a true statement about a product.
a. An excellent distribution channel can compensate for an inferior product.
b. A consumer product and an industrial product is differentiated based on the price of a product.
c. It is the marketing mix that can be decided after choosing a promotion strategy.
d. It is usually the starting point in creating a marketing mix for a market segment.
31. Yater’s Inc. is a food and beverage company based in America. The company decides to market and sell its products in
all European countries under the same brand name. In this scenario, Yater’s Inc. decides to use the _____.
a. transactional marketing strategy
b. co-branding strategy
c. one-brand-name strategy
d. individual branding strategy
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32. GTE Pharmaceuticals, a pharmaceutical company, provides details such as the date of expiry, the date of manufacture,
dosage size, chemical composition, and active ingredients on all its drug labels. This is an example of:
a. persuasive labeling.
b. informational labeling.
c. functional modification.
d. style modification.
33. Jasmine does not have any preferences when it comes to toothpastes.She picks up the brands that are easily available
in the supermarket near her house. In this scenario,toothpastescan best be categorized as ________.
a. convenience products
b. unsought products
c. specialty products
d. premium products
34. Identify a true statement about global branding strategies.
a. A one-brand-name strategy is useful when a company markets mainly one product.
b. Using different brand names in different markets leads to greater identification of the product from market to
market.
c. A one-brand-name strategy reduces the ease of coordinating promotion from market to market.
d. Using different brand names in different markets means that a company does not follow localization.
35. Yellow Grains was one of the most popular cereals in the last decade, and Matt has been buying them since its launch.
After enjoying a decade of popularity, it has fallen behind many other cereal brands that are more affordable and
nutritious. However, Matt continues to buy Yellow Grain cereal as it was his childhood favorite and no other cereal brand
will be able to replace it. In the context of this information, which of the following statements is true?
a. Matt has a strong brand loyalty toward Yellow Grains.
b. Yellow Grainsis not a global brand.
c. Yellow Grains has benefitted from quality and functional modification.
d. Matt only buys cereals from the most popular brand.
36. Reducing a product’s quality:
a. provides new opportunities for market segmentation.
b. lets a firm’s manufacturer lower the price.
c. results in increased brand loyalty or new opportunities for market segmentation.
d. helps firms cater to the upper classes effectively.
37. Lisa goes to an electronics store to purchase a washing machine. After comparing the various brands of washing
machines available, their technical features, prices, and durability, she purchases the one that is cheaper and smaller in
size than the rest. In this case, Lisa purchases a _____.
a. shopping product
b. business product
c. specialty product
d. convenience product
38. Elsem Foods Inc. is a packaged food company. It sells several varieties of packaged foods such as savories, cupcakes,
candies, crackers, fruit juices, and carbonated drinks. It receives its largest profit from its newly introduced line of tropical
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fruit juices that are available in different flavors, such as orange, apple, litchi, and cranberry. Given this information,
which of the following is a product item of Elsem Foods Inc.?
a. Savories
b. Candies
c. Orange juice
d. Carbonated drinks
39. Compared to convenience products, shopping products are:
a. less expensive.
b. found in fewer stores.
c. purchased without significant planning.
d. new products unknown to a potential buyer.
40. June Fabrics received a lot of negative feedback on their bedsheets and pillowcases. Customers complained about the
fabric losing color and shrinking. June Fabric started using finer cotton and dyes that were more resistant to fading after
wash. In the context of product modification, the given scenario best exemplifies an instance of _________.
a. cannibalization
b. functional modification
c. planned obsolescence
d. quality modification
41. Eve‘s Aura, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this
information, which of the following is a characteristic of Eve’s Aura‘s products?
a. They are bought very rarely by consumers.
b. They require wide distribution in order to sell sufficient quantities.
c. They are purchased after more planning effort than specialty products.
d. They will be more expensive than shopping products.
42. Which of the following statements is true of a specialty product?
a. It is widely distributed in a geographic area in order to sell sufficient quantities.
b. It is marketed using selective, status-conscious advertising to maintain its exclusive image.
c. It is easily substituted with products that have the same features.
d. It is unknown to a potential buyer or a known product that the buyer does not actively seek.
43. Which of the following statements is true of an unsought product?
a. Marketers of unsought products often use selective, status-conscious advertising to maintain the product’s
exclusive image.
b. Consumers buy unsought products regularly, usually without much planning, and at inexpensive prices.
c. New products are categorized as unsought products until advertising and distribution increase consumer
awareness of them.
d. Consumers usually buy an unsought product only after comparing several brands or stores on style, practicality,
price, and lifestyle compatibility.
44. Product line depth refers to the number of:
a. competitors present in the market for a particular product line.
b. product lines an organization offers.
c. market segments a firm is willing to target or serve.
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d. product items in a product line.
45. Frozen Mann sells 70 different flavors of ice cream. However, its ice creams are only available in supermarkets and
only sold in tubs. Based on this information, it is evident that Frozen Man has:
a. a deep product line but a narrow product mix.
b. a narrow product line and a wide product mix.
c. a shallow product line and a wide product mix.
d. a narrow product line but a deep product mix.
46. Identify a true statement about specialty products.
a. They are made directly available to a consumer through direct mail.
b. They are relatively inexpensive and merit little shopping effort.
c. They are easily substituted with other products.
d. They are distributed to only a few outlets in a geographic area.
47. James bought his wife Betty a new car for their wedding anniversary. In this case, the car is an example of a
________.
a. business product
b. consumer product
c. service
d. major equipment
48. Dunchen Moo, a manufacturer of dairy products, sells a variety of milk powders, flavored whipped cream, and
yogurts. It markets a number of yogurts including Dunchen All Natural, Dunchen Fruit on the Bottom, Dunchen Light &
Fit, DunActive, and Dun-o-nino. The large variety of yogurts under the Dunchen brand are collectively an example of a
_____.
a. market segment
b. target market
c. product mix
d. product line
49. Luna automobile Inc. is a popular luxury car manufacturer. As the luxury car market is already saturated, it has started
a new line of affordable cars that would appeal to the lower income groups.This new line of cars fare much lower when it
comes to durability. This is an example of _________.
a. standardization of components
b. cannibalization
c. planned obsolescence
d. quality modification
50. _____ is designed to help consumers make proper product selections and lower their cognitive dissonance after a
purchase.
a. Informational labeling
b. Persuasive labeling
c. Perspective labeling
d. Promotional labeling
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51. Bio Bags, a plastic bag manufacturing company, markets all its products as recyclable items and claims that disposing
the bags after usage will benefit the environment and not harm it. However, the company does not state the facts on which
it bases its claims. In this scenario, Bio Bags has utilized _________ to sell their products.
a. quality modification
b. product line extension
c. repositioning
d. greenwashing
52. Which of the following is a reason why many retailers are creating and promoting their own captive brands?
a. Captive brands carry evidence of a store’s affiliation and are available everywhere.
b. Captive brands are displayed separate from mainstream products in a store.
c. This strategy allows retailers to ask a price similar or equal to manufacturers’ brands.
d. This strategy allows retailers to market private brands as inferior to manufacturers’ brands.
53. Which of the following statements is true of product lines?
a. They limit the product choices offered to customers to one or two product items.
b. They provide economies of scale in advertising.
c. They require greater transportation and warehousing costs than product items.
d. They increase a firm’s manufacturing and inventory costs.
54. Risk Cutis a new insurance company. The marketing managers atRisk Cut have been aggressively using door-to–door
sales and other telephonic and online marketingtechniques to contact potential customers.In this scenario, Risk Cut is
most likely trying to sell a(n) ________.
a. convenience product
b. unsought product
c. specialty product
d. industrial product
55. A furniture manufacturing company can functionally modify one of its products by:
a. providing color variations for all its furniture.
b. selling its furniture at the lowest price in the market.
c. utilizing eco-friendly material to manufacture its furniture.
d. adding a charging dock to its couches that facilitate cell phone charging.
56. A _____ is not possible when a brand name has a negative or vulgar connotation in the local language.
a. repositioning strategy
b. one-brand-name strategy
c. co-branding strategy
d. family branding strategy
57. Fournotts Corp. manufactures syringes that filter water, but the consumers in the market are not aware of the existence
of this product. In this case, which of the following strategies will increase the sales of the syringes?
a. Using status-conscious advertising
b. Using direct response advertising
c. Using selective advertising
d. Using customer-generated advertising
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58. Cell Wrap is a mobile phone accessories manufacturer. It manufactures and sells mobile phone covers, storage cards,
chargers, and screen protectors. These cell phone accessories sold by Cell Wrapbest exemplify _________.
a. product items
b. convenience products
c. product line contractions
d. unsought products
59. Which of the following is a difference between individual branding and family branding?
a. In individual branding, different brand names are used for different products, whereas in family branding, several
different products are marketed under the same brand name.
b. Companies use individual branding when products do not vary in use or performance, whereas companies use
family branding when products vary greatly in use or performance.
c. Individual branding identifies the brand of a part that makes up a product, whereas family branding identifies the
entire product.
d. Individual branding is used when two brands receive equal treatment, whereas family branding is used when two
brands borrow from each other’s brand equity.
60. Jensen Jeans is one of the most popular multinational clothing companies. It has several stores worldwide that operate
under the same brand name, sell the same products at the same prices, and have the same layout.In this scenario, the
strategy adopted by Jensen Jeans is an example of a(n) _________.
a. adaptations and modifications strategy
b. co-branding strategy
c. one-brand-name strategy
d. individual branding strategy
61. Discuss the concept of planned obsolescence.
62. Explain the importance of product offerings in creating a marketing mix.
63. Compare the four categories of consumer products with examples of each category.
64. Describe the significance of product mix width and product line depth in marketing.
65. Define express and implied warranty.
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Answer Key
1. True
2. True
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