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1. (p. 376) When consumers calculate the value of a product, they look at the benefits and then subtract the cost.
2. (p. 376) Successful businesses constantly monitor consumer wants and needs.
3. (p. 376) To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to
changing market demands.
4. (p. 376) Once an organization surveys the consumer’s wants and needs and has designed a group of products to
meet those needs, and begun to market them in stores, the organization is assured of success.
5. (p. 377) Fast-food organizations must constantly monitor all sources of information for new product ideas.
6. (p. 377) McDonald’s prides itself on offering precisely the same menu around the world so that customers know
exactly what to expect when they eat at a McDonald’s.
7. (p. 377, Dealing with Change box) According to one of the “Dealing with Change” boxes in Chapter 14, the CEO of
Panera Bread, Ron Shaich believes in listening to his customers to understand how to adapt his business.
8. (p. 377) Product development is a key activity in any modern business, anywhere in the world.
9. (p. 378, Spotlight on Small Business box) The “Spotlight on Small Business” box in Chapter 14 mentions Dream Dinners as
a company that has succeeded by finding an unmet need and creating a satisfying product offer.
10. (p. 378) From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a
good or service, and excludes any intangible attributes.
11. (p. 378, figure 14.1) The image created by advertising is part of the total product offer of a product.
12. (p. 378, figure 14.1) The reputation of the manufacturer and the retail store surroundings are considered part of the
value enhancers of a total product offer.
13. (p. 378, figure 14.1) Price, store surroundings, service, and brand name are all elements that consumers evaluate in
a total product offer.
14. (p. 378) Successful marketers attempt to think like a consumer and evaluate the total product offer as a
collection of impressions created by all parts of the value package.
15. (p. 379) Store surroundings are an important part of the product value package.
16. (p. 379) The critical component of a total product offer is always a low price.
17. (p. 379) Low prices can help retailers create an attractive total product offer.
18. (p. 379, Dealing with Change box) One of the “Dealing with Change” boxes in Chapter 14 suggests that realtors can
differentiate their product by using a Web site that lists information about shopping and religious facilities in
various neighborhoods.
19. (p. 379) A firm’s product line refers to all of the different markets in which it sells the same good or service.
20. (p. 379) A single product line may contain several competing brands.
21. (p. 380) The term product line describes the combination of product mixes offered by a manufacturer.
22. (p. 379) A product line is a group of products that are physically similar or are intended for a similar market.
23. (p. 380) The several product lines that a company offers for sale make up that organization’s product mix.
24. (p. 380) While service providers offer product lines, they are unable to offer product mixes.
25. (p. 377, Dealing with Change box) Whole grain breads, bagels, and bread sticks are products that provide value to
customers of Panera Bread according to one of the “Dealing with Change” boxes in Chapter 14.
26. (p. 378) Car dealers realize that consumers focus exclusively on price and warranty.
27. (p. 380) A traditional McDonald’s and a McCafe (the outlet that sells premium coffee and pastries similar to a
Starbucks) are examples of the McDonald’s Corporation product mix.
28. (p. 378) At Isuzu’s Appliance Store, all new products are offered with an extended service contract, as well as
free delivery and installation. By offering these value enhancers, Isuzu’s has added to their total product offer.
29. (p. 379) Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft Mayonnaise, and Marlboro
Cigarettes, are all products of the Philip Morris Company. These products represent a part of the product line
that Philip Morris offers.
30. (p. 380) A bank’s product line may include safety deposit boxes, car loans, and traveler’s checks.
31. (p. 380) The concepts of product lines and product mixes apply to marketers of products and services.
32. (p. 380) In order for product differentiation to be effective, real product differences must be identified so that
one product is clearly better than others.
33. (p. 380) Marketers utilize pricing, advertising, and packaging to successfully differentiate their products from
competitors’ products even when actual differences are quite small.
34. (p. 380) Creative product differentiation can enable a small business to increase market share.
35. (p. 380) The most common classification of consumer goods and services is based on producer or manufacturer
behavior in the market.
36. (p. 380) One common way of classifying consumer goods is based on consumer purchasing behavior.
37. (p. 380) The uniqueness of convenience goods and services stimulate consumers to make an extra effort to
purchase them.
38. (p. 380) Convenience goods are products that the consumer wants to purchase frequently and with a minimum
of effort.
39. (p. 381) The characteristics of specialty goods restrict their effective sale over the Internet.
40. (p. 382) Unsought goods and services fail to provide the benefits consumers expect.
41. (p. 381, Reaching Beyond Our Borders box) The “Reaching Beyond Our Borders” box in Chapter 14 explains that one way
to sell products to the very poor is to sell much smaller quantities for a much smaller price.
42. (p. 382) The marketing efforts for convenience and specialty goods are essentially the same.
43. (p. 381) Shopping goods and services are purchased only after consumers compare value, quality, style, and
price of competing goods and services.
44. (p. 382) Successful marketing of convenience and specialty goods require different marketing mixes.
45. (p. 381) Most consumers view specialty goods as having a variety of acceptable substitutes.
46. (p. 382) The classification of goods or services into a particular class depends on the individual consumer.
47. (p. 382) A shopping good for one consumer could be a specialty good for another consumer.
48. (p. 381) Specialty goods are often marketed through specialty magazines.
49. (p. 382) Some goods can be classified as either consumer goods or as industrial goods.
50. (p. 382) Industrial goods are sold in the B2B market.
51. (p. 382) As a promotional strategy, advertising is more important in the marketing of industrial goods than it is
in the marketing of consumer goods.
52. (p. 382) Capital items are industrial goods that are expensive and last a long time.
53. (p. 382) Industrial goods and services are used to produce other products.
54. (p. 382) Accessory equipment consists of capital items that cost less and are shorter lived than installation
items.
55. (p. 383, figure 14.2) The two types of industrial goods are production goods and unsought goods.
56. (p. 383, figure 14.2) Equipment maintenance and repair of equipment used by businesses is an industrial support
good.
57. (p. 383, figure 14.2) Paper clips, stationery, and other office supplies used by businesses are types of industrial
support goods.
58. (p. 380) Mystic Beverages, a producer of soft drinks, wants to differentiate its products from those of other soft
drink providers. To implement this strategy successfully will require Mystic to create tangible differences in the
physical product it offers.
59. (p. 382) A pickup truck can be classified as either a consumer good or an industrial good.
60. (p. 380) Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that
newspapers are convenience goods.
61. (p. 382) Unsought goods and services are purchased on impulse and provide no added value to consumers.
62. (p. 380) Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering
pizza on their menus. His largest competitors are large nationally known organizations. The small size of
Dutch’s business prevents him from successfully utilizing a product differentiation strategy.
63. (p. 380) As a firm that offers home and office cleaning services, Kazam Cleaners can not utilize a product
differentiation strategy.
64. (p. 381) Consumers are best served by providing specialty goods in convenient locations.
65. (p. 381) Gabe intends to visit a variety of retailers of stereo equipment comparing features, quality, and prices
of different brands at each store. This behavior indicates that for Gabe a stereo system is a shopping good.
66. (p. 381) Stella strongly prefers a specific brand of gourmet coffee. Because there is only one store in her area
that sells this brand, she makes an extra effort to purchase this item. Stella’s purchasing behavior indicates that
this product is a specialty good.
67. (p. 382-383, figure 14.2) Thigpen Equipment Company sells used heavy construction equipment such as bulldozers
and cranes. Thigpen’s products represent examples of an accessory equipment industrial good.
68. (p. 382-383, figure 14.2) Beyonce Financial Services purchased several new personal computers and a color laser
printer for office use. These items would be correctly classified as accessory equipment.
69. (p. 383) Packaging is an important part of the total product offer.
70. (p. 384) One function of effective packaging is to attract the attention of consumers.
71. (p. 384) One function of effective packaging is to protect the goods inside during handling and storage, as well
as deter product tampering and theft.
72. (p. 384) One function of effective packaging is to provide information regarding warranties, benefits, and uses
of the good inside the package.
73. (p. 384) More than any other component of a total product offer, technology has reduced the importance of
packaging.
74. (p. 384) Federal government legislation identifies the type of information that packaging must offer.
75. (p. 384) Changes in packaging can transform the product in the minds of consumers and open larger market
opportunities.
76. (p. 384) While packaging innovations benefit the consumer, they have increased the workload of retailers.
77. (p. 385) While the packaging of services has not yet captured the attention of businesses, technological
improvements will likely create new opportunities.
78. (p. 384) The exclusive goal of packaging is to protect the product from damage in transit.
79. (p. 384) In recent years, the packaging of products has been given a greater role in product promotion.
80. (p. 384) The trend towards self-service retailers has increased the importance of packaging.
81. (p. 384) As a result of increased advertising and well trained salespeople, packaging is less important than in
the past.
82. (p. 383–384) Regardless of changes in packaging, the total product offer remains unchanged.
83. (p. 384) While the Universal Product Code (UPC) improves efficiency at the retail check-out counter, it has
increased problems in controlling inventory.
84. (p. 384) Healthy Pick designed a new type of packaging that significantly improves taste and texture of food
when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and
profits.
85. (p. 385) A brand includes practically all means of identifying a product.
86. (p. 385) The purpose of a brand name is to establish an image of generic goods or services.
87. (p. 385) Brand names can significantly impact consumer perceptions of a product.
88. (p. 385) A trademark is a brand that has been given exclusive legal protection for both the brand name and the
pictorial design.
89. (p. 385) The benefits provided by a brand name for a buyer include reduced search time, prestige, and quality
assurance.
90. (p. 385) The U.S. legal system does not offer trademark protection.
91. (p. 385) Brand names help sellers with new-product introductions and create an opportunity for higher prices.
92. (p. 385) Dealer (private) brands are products that do not carry the manufacturer’s name, but rather carry the
name of a distributor or retailer.
93. (p. 385) Chevrolet is an example of a generic name.
94. (p. 385) Manufacturers’ brands carry the brand name of the producers that distribute the products nationally.
95. (p. 385) Most manufacturers hope that their brand names will become a generic name.
96. (p. 386) Sales of generic products are decreasing because consumers prefer the higher quality of the nationally
known brands.
97. (p. 385–386) The legal protection offered to an established brand name prevents that name from being used as a
generic name for a product.
98. (p. 386) The use of price discounts and coupons may erode the commitment of consumers to brand names.
99. (p. 386) The best strategy for brand name manufacturers to respond to the challenge of generic goods is to use
price discounts and coupons to price their products more aggressively.
100. (p. 386) A knockoff brand is a brand name that has lost its exclusive legal protection.
101. (p. 386) Brand equity refers to those factors that people associate with a specific brand name, such as
awareness, perceived quality, and loyalty.