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Chapter 10: Product Concepts
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1. A service mark is the exclusive right to use a brand or part of a brand.
a.
True
b.
False
ANSWER:
False
2. Decrease in consumer demand for green products was directly responsible for the proliferation of green certifications.
a.
True
b.
False
ANSWER:
False
3. Scanning universal product codes (UPCs) slows down the process of recording consumer purchases at high-volume
outlets.
a.
True
b.
False
ANSWER:
False
4. Insurance, burial plots, and similar items fall under the convenience product category.
a.
True
b.
False
ANSWER:
False
5. Services and ideas are not considered products because they are intangible.
a.
True
b.
False
ANSWER:
False
6. The three aspects of packaging that are especially important in international marketing are product line extension,
product mix width, and brand equity.
a.
True
b.
False
ANSWER:
False
7. Each product item in the product mix may require a separate marketing strategy.
a.
True
b.
False
ANSWER:
True
8. An organization's product mix includes all the products it sells.
a.
True
b.
False
ANSWER:
True
9. Consumers have trouble comparing homogenous shopping products because the prices, quality, and features of such
products are similar.
a.
True
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b.
False
ANSWER:
False
10. The universal product code (UPC) system and scanners are used in scanner-based research.
a.
True
b.
False
ANSWER:
True
11. The key distinction between consumer products and business products is their intended use.
a.
True
b.
False
ANSWER:
True
12. Salespeople actively seek leads to potential buyers to sell unsought products.
a.
True
b.
False
ANSWER:
True
13. Greenwashing is the term used to describe industrial processes that cause pollution above the permissible limit set by
the government.
a.
True
b.
False
ANSWER:
False
14. An implied warranty is a written guarantee that the good or service is fit for the purpose for which it was sold.
a.
True
b.
False
ANSWER:
False
15. Washers, dryers, refrigerators, and televisions are examples of unsought products.
a.
True
b.
False
ANSWER:
False
16. Packaging of any product is done for the sole purpose of promoting that product.
a.
True
b.
False
ANSWER:
False
17. Specialty products normally require wide distribution in order to sell sufficient quantities to meet profit goals.
a.
True
b.
False
ANSWER:
False
18. Trademark rights come from registration rather than use.
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a.
True
b.
False
ANSWER:
False
19. Fournotts Corp. manufactures a special kind of filter that can purify water quickly, but the consumers in the market are
not aware of the existence of the product. In this case, which of the following strategies will increase the sales of the
filter?
a.
Using status-conscious advertising
b.
Using direct response advertising
c.
Using selective advertising
d.
Using customer-generated advertising
ANSWER:
b
20. Eve Aura, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this
information, which of the following is a characteristic of Eve 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.
ANSWER:
b
21. Which of the following statements is true of an unsought product?
a.
Marketers of unsought products often use selective, status-conscious advertising to maintain a product's
exclusive image.
b.
Consumers buy unsought products regularly, usually without much planning and at inexpensive prices.
c.
Companies dealing with unsought products must go directly to consumers through a salesperson, direct mail,
or direct response advertising to create awareness about their products.
d.
Consumers usually buy an unsought product only after comparing several brands or stores on style,
practicality, price, and lifestyle compatibility.
ANSWER:
c
22. 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.
ANSWER:
a
23. Three Arrows Inc. is a company that manufactures bags from recycled paper. Its marketers receive complaints that the
bags get wet easily and tear after a few weeks of use. They decide to respond to their customers' complaints by using a
thicker, waterproof paper. This is an example of _____.
a.
product placement
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b.
functional modification
c.
planned obsolescence
d.
quality modification
ANSWER:
d
24. Which of the following statements is true of convenience products?
a.
A consumer is unwilling to shop extensively for convenience products.
b.
They are shopping products that are perceived to be similar in features.
c.
A consumer is unwilling to accept other substitutes for convenience products.
d.
They are shopping products that are not actively sought after by consumers.
ANSWER:
a
25. Which of the following statements is true of greenwashing?
a.
Consumer demand for green products helps abate proliferation of green certifications.
b.
Certification of a product by the same company that produced it should be clearly stated.
c.
The Federal Trade Commission does not interfere with the rules regarding green certifications.
d.
Greenwashing is a highly reliant way of identifying environment-friendly products.
ANSWER:
b
26. 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.
ANSWER:
b
27. Paulette goes to an electronic store to purchase a refrigerator. After comparing the technical features, prices, and
durability of the various brands of refrigerators available, she purchases the one that is cheaper and smaller in size than the
rest. In this case, Paulette has purchased a _____.
a.
shopping product
b.
business product
c.
specialty product
d.
convenience product
ANSWER:
a
28. In the context of product modification, reducing a product's quality:
a.
provides new opportunities for market segmentation.
b.
lets a manufacturer lower the price of the product.
c.
results in increased brand loyalty or new opportunities for market segmentation.
d.
helps firms cater to the upper classes effectively.
ANSWER:
b
29. The most obvious function of packaging is to:
a.
secure the right of a company to use a brand or part of a brand.
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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.
ANSWER:
d
30. 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.
d.
product items in a product line.
ANSWER:
d
31. 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.
ANSWER:
a
32. Universal product codes (UPCs) are also known as _____ because the numerical codes appear as a series of thick and
thin vertical lines.
a.
mnemonics
b.
bar codes
c.
serial codes
d.
codicology
ANSWER:
b
33. Which of the following statements is true of product items?
a.
They are the test products that are released by a company before starting a product line.
b.
They include all the products that an organization manufactures and sells to its consumers.
c.
They are never made part of any product lines and are sold only in select outlets.
d.
They can be easily distinguished from other products produced by the same organization.
ANSWER:
d
34. 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.
ANSWER:
c
35. A _____ is not possible when a brand name has a negative or vulgar connotation in the local language.
a.
adaptations and modifications strategy
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b.
one-brand-name strategy
c.
different brand names in different market strategy
d.
product line contraction strategy
ANSWER:
b
36. Compared with 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.
ANSWER:
b
37. A difference between informational labeling and persuasive labeling is that informational labeling:
a.
focuses on a promotional theme or logo rather than on 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.
ANSWER:
c
38. Torque Roz, an automobile company, uses a unique tire design on its vehicles. A rival company was found copying
the exact design in its automobiles. Torque Roz was able to file a case against the rival company about this issue and win
the lawsuit. In this scenario, Torque Roz's unique tire design is a registered _____.
a.
captive brand
b.
trademark
c.
private brand
d.
service mark
ANSWER:
b
39. Dunchen Moo, a manufacturer of dairy products, sells 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 sold by the Dunchen brand is collectively an example of a _____.
a.
market segment
b.
target market
c.
product mix
d.
product line
ANSWER:
d
40. Gypsy Foods Inc. is a multinational food and beverage company. Its product labels are colorful and project the words
"new" and "improved" along with 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.
descriptive labeling
d.
grade labeling
ANSWER:
a
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41. Yumé Nu, a battery manufacturing company, began marketing its products as environment friendly and biodegradable
even though it was not scientifically verified. In this scenario, Yumé Nu has used _____ in order to sell its products.
a.
quality modification
b.
product line extension
c.
repositioning
d.
greenwashing
ANSWER:
d
42. 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.
ANSWER:
a
43. Elsem Foods Inc. is a company that manufactures packaged food. It sells several varieties of packaged food such as
savories, cupcakes, candies, crackers, fruit juices, and carbonated drinks. It receives its largest profit from its newly
introduced line of tropical 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?
a.
Savories
b.
Candies
c.
Orange juice
d.
Carbonated drinks
ANSWER:
c
44. 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.
ANSWER:
d
45. One of the functions of universal product codes (UPCs) is to:
a.
allow products to be modified for improved sales.
b.
help customers resell products that have no market value.
c.
increase customer loyalty and brand value of a product.
d.
help retailers prepare records of customer purchases.
ANSWER:
d
46. Remnants Perfumes is a premium, 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
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c.
To focus on establishing a brand name
d.
To decrease the prices of the products
ANSWER:
c
47. Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its
products in all European countries under the same brand name. In this scenario, Yater's Inc. has decided to use a(n) _____.
a.
transactional marketing strategy
b.
co-branding strategy
c.
one-brand-name strategy
d.
individual branding strategy
ANSWER:
c
48. _____ 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
ANSWER:
b
49. Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as
type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.
a.
informational labeling
b.
persuasive labeling
c.
grade labeling
d.
promotional labeling
ANSWER:
a
50. 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.
ANSWER:
d
51. Which of the following statements is true of trademarks?
a.
Trademark rights are effective from the date of registration.
b.
Rights to trademarks are also given to generic product names.
c.
Trademark protection must be renewed every year.
d.
Rights to trademarks last as long as the mark is used.
ANSWER:
d
52. Which of the following statements is true of a specialty product?
a.
It is widely distributed in a geographic area so that sufficient quantities can be sold.
b.
It is marketed using selective, status-conscious advertising to maintain its exclusive image.
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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.
ANSWER:
b
53. Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as
type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.
a.
informational labeling
b.
persuasive labeling
c.
grade labeling
d.
promotional labeling
ANSWER:
a
54. Compared with 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.
ANSWER:
b
55. 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
ANSWER:
b
56. Nestor's Nesties, a confectionery company, sells a variety of dark chocolates, milk chocolates, gummies, fruit juices,
biscuits, cereals, and even cheese. These products together constitute the company's _____.
a.
brand symbol
b.
product line
c.
brand mark
d.
product mix
ANSWER:
d
57. 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.
d.
It ranges from simple statements to extensive documents written in technical language.
ANSWER:
d
58. Remonet, a smartphone manufacturer, has launched its new products—HY15, HY20, and HY50. These smartphone
models are part of its HY series. HY15, being the most budget friendly, attracts more consumers and achieves better sales
figure. In this scenario, Remonet's HY15 smartphone model is an example of a(n) _____.
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Chapter 10: Product Concepts
a.
convenience product
b.
product item
c.
unsought product
d.
product line
ANSWER:
b
59. 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.
ANSWER:
d
60. Consumers usually buy a(n) _____ only after comparing several brands or stores on style, practicality, price, and
lifestyle compatibility.
a.
unsought product
b.
specialty product
c.
convenience product
d.
shopping product
ANSWER:
d
61. Discuss the concept of planned obsolescence.
ANSWER:
Answers will vary. Planned obsolescence is a term commonly used to describe the practice of modifying
products so that those that have already been sold become obsolete before they actually need replacement.
For example, products such as printers and cell phones become obsolete because technology changes so
quickly.Some argue that planned obsolescence is wasteful; some claim it is unethical. Marketers respond that
consumers favor style modifications because they like changes in the appearance of goods such as clothing
and cars. Marketers also contend that consumers, not manufacturers and marketers, decide when styles are
obsolete.
62. Explain the importance of product offerings in creating a marketing mix.
ANSWER:
Answers will vary. The product offering, the heart of an organization's marketing program, is usually the
starting point in creating a marketing mix. A marketing manager cannot determine a price, design a
promotion strategy, or create a distribution channel until the firm has a product to sell. Moreover, an
excellent distribution channel, a persuasive promotion campaign, and a fair price have no value when the
product offering is poor or inadequate. The marketing process is the same whether the product marketed is a
good, a service, an idea, or some combination of these.
63. Define express warranty and implied warranty.
ANSWER:
Answers will vary. An express warranty is a written guarantee. Express warranties range from simple
statements—such as "100-percent cotton" (a guarantee of quality) and "complete satisfaction guaranteed" (a
statement of performance)—to extensive documents written in technical language.In contrast, an implied
warranty is an unwritten guarantee that the good or service is fit for the purpose for which it was sold. All
sales have an implied warranty under the Uniform Commercial Code.
64. Discuss the significance of product mix width and product line depth in marketing.
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Chapter 10: Product Concepts
offers. Product line depth is the number of product items in a product line. Firms increase the width of their
product mix to diversify risk. To generate sales and boost profits, firms spread risk across many product lines
rather than depend on only one or two. Firms also widen their product mix to capitalize on established
reputations. Firms increase the depth of their product lines to attract buyers with different preferences, to
increase sales and profits by further segmenting the market, to capitalize on economies of scale in production
and marketing, and to even out seasonal sales patterns.
65. Compare the four categories of consumer products with examples of each category.
ANSWER:
Answers will vary. Convenience products are relatively inexpensive items that require little shopping effort.
Convenience products are bought regularly, usually without significant planning. Convenience products may
include candy, soft drinks, aspirin, small hardware items, dry cleaning, car wash services, and so
on.Shopping products are usually more expensive than convenience products and are found in fewer stores.
Consumers spend some effort comparing brands and stores. Shopping products may include washers, dryers,
refrigerators, televisions, furniture, clothing, housing, choice of university, and so on.Specialty products are
those exclusive items for which consumers are willing to search extensively. Consumers are extremely
reluctant to accept substitutes for specialty products. Brand names and service quality are important. Fine
watches, luxury cars, expensive stereo equipment, gourmet restaurants, and specialized medical services
could all be considered specialty products.Unsought products are those that the buyer does not know about or
does not actively seek to buy. These products include insurance, burial plots, and other similar items.
