A Framework for Marketing Management, 5e (Kotler)
Chapter 10 Setting Product Strategy
1) A ________ is anything that can be offered to a market to satisfy a want or need, including
physical goods, services, experiences, events, persons, places, properties, organizations,
information, and ideas.
A) function
B) product
C) benefit
D) process
E) structure
2) A customer judges a product offering by three basic elements: product features and quality,
services mix and quality, and ________.
A) performance
B) utility
C) tangibility
D) price
E) availability
3) The five product levels constitute a ________. At each level more customer value is added.
A) product line
B) business model
C) customer value-hierarchy
D) value grid
E) demand chain
4) When companies search for new ways to satisfy customers and distinguish their offering from
others, they look at the ________ product, which encompasses all the possible augmentations
and transformations of the product.
A) consumption
B) expected
C) potential
D) augmented
E) basic
5) Marketers must see themselves as benefit providers. For example, when a shopper purchases
new shoes, he/she expects the shoes to cover his/her feet and allow him/her to walk
unobstructed. This is an example of what level in the consumer-value hierarchy?
A) pure tangible good
B) basic product
C) augmented product
D) potential product
E) generic product
6) How a consumer shops for organic foods and how he or she uses and disposes of the product
is part of the consumers’ ________ that is important for marketers to consider.
A) value proposition
B) consumption system
C) value system
D) quality perception
E) value chain
7) Marketers have traditionally classified products on the basis of three characteristics:
________, tangibility, and use.
A) availability
B) affordability
C) aesthetics
D) durability
E) necessity
8) Which of the following are tangible goods that normally survive many uses?
A) generic goods
B) durable goods
C) core benefits
D) convenience goods
E) unsought goods
9) Because ________ are purchased frequently, marketers should make them available in many
locations, charge only a small markup, and advertise heavily to induce trial and build preference.
A) nondurable goods
B) durable goods
C) services
D) unsought goods
E) specialty goods
10) What types of goods are purchased frequently, immediately, and with minimum effort by the
consumers?
A) specialty goods
B) shopping goods
C) unsought goods
D) durable goods
E) convenience goods
11) Products such as insurance, cemetery plots, and smoke detectors are examples of ________
that are products that the consumer does not know about or does not normally think of buying.
A) specialty goods
B) unsought goods
C) heterogeneous shopping goods
D) homogeneous shopping goods
E) convenience goods
12) Industrial goods can be classified as ________, capital items, or suppliers and business
services based on their relative cost and how they enter the production process.
A) service components
B) sub-assemblies
C) accessories
D) specialty goods
E) materials and parts
13) Capital items are long-lasting goods that facilitate developing or managing the finished
product. They include two groups: installations and ________.
A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials
14) Most products are established at one of four performance levels: low, average, high, or
superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a
consumer purchases a mountain bike costing $1,000, she/he expects the bike to perform to
specifications and to have high ________ meeting the promised specifications.
A) features
B) conformance quality
C) durability
D) performance quality
E) reliability
15) ________ is the ability of a company to prepare on a large-scale basis individually designed
products, services, programs, and communications.
A) Mass customization
B) Reverse engineering
C) Interoperability
D) Backward compatibility
E) Benchmarking
16) ________ is the level at which the product’s primary characteristics operate.
A) Design
B) Conformance quality
C) Reparability
D) Performance quality
E) Durability
17) Buyers expect products to have high ________, which is the degree to which all the
produced units are identical and meet the promised specifications.
A) durability
B) compatibility
C) conformance quality
D) form
E) performance quality
18) Most products can be offered with varying ________ that can supplement its basic function.
A) degrees of reliability
B) conformance qualities
C) features
D) forms
E) designs
19) If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every
Ford GT coming off the assembly line does this, the model is said to have high ________.
A) reliability
B) conformance quality
C) durability
D) compatibility
E) interoperability
20) ________ describes the product’s look and feel to the buyer; it has an advantage of creating
distinctiveness that is difficult to copy.
A) Design
B) Style
C) Durability
D) Conformance
E) Reliability
21) ________ is a measure of the probability that a product will not malfunction or fail within a
specified time period.
A) Reparability
B) Durability
C) Reliability
D) Specialty
E) Compatibility
22) When the physical product cannot be easily differentiated, the key to competitive success
may lie in adding valued services and improving their quality. The main service differentiators
are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair.
A) technology intensity
B) responsivity
C) ease of use
D) customer training
E) adaptability
23) Delivery refers to how well the product or service is brought to the customer. It includes
speed, ________, and care throughout the delivery process.
A) expedience
B) intensity
C) tangibility
D) performance
E) accuracy
24) ________ refers to educating the customer’s employees to use the vendor’s equipment
properly and efficiently.
A) Customer training
B) Open innovation
C) Crowdsourcing
D) Co-development
E) Collaborative research
25) Differentiating on ________ is important for companies with complex products and becomes
an especially good selling point when targeting technology novices.
A) delivery
B) ordering ease
C) ease of installation
D) customer consulting
E) reparability
26) ________ describes the service program for helping customers keep purchased products in
good working order.
A) Returns
B) Ordering ease
C) Installation
D) Maintenance and repair
E) Delivery
27) Smith & Adams Poultry has recently upgraded its transactional model such that its customers
(restaurants and hotels) can communicate with its central supply system to indicate purchase
volumes, dates, and receive confirmation, through their computer terminals. This is an example
of a company differentiating itself versus competition in terms of ________.
A) customer relationships
B) customer training
C) installation
D) delivery ease
E) ordering ease
28) Realizing that although household products is a huge category, taking up an entire
supermarket aisle or more, it is an incredibly boring one, the founders of Method Products
designed a sleek, uncluttered dish soap container that also carried functional advantages, such as
ease of dispensing soap and cleaning. Method is competing in the crowded market for household
products on the basis of superior ________.
A) design
B) durability
C) conformance
D) reliability
E) performance quality
29) In increasingly fast-paced markets, price and technology are not enough. ________ is the
factor that will often give a company its competitive edge and is defined as the totality of
features that affect how a product looks, feels, and functions in terms of customer requirements.
A) Conformance
B) Design
C) Performance
D) Reliability
E) Style
30) A group of products within a product class that are closely related because they perform a
similar function, are sold to the same customer groups, are marketed through the same outlets or
channels, or fall within given price ranges is known as a ________.
A) product type
B) product class
C) need family
D) product variant
E) product line
31) Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and
paper products. This company has a product ________ of five lines.
A) type
B) length
C) class
D) mix
E) width
32) A consumer products firm manufactures and sells over 200 different sizes and varieties of
jams and jellies. We can say that this manufacturer’s product mix has high ________.
A) consistency
B) depth
C) intensity
D) range
E) width
33) The ________ of the product mix refers to how closely related the various product lines are
in end use, production requirements, distribution channels, or some other way.
A) consistency
B) depth
C) width
D) length
E) composition
34) The ________ of the product mix refers to the total number of items in the mix.
A) width
B) length
C) depth
D) breadth
E) range
35) In offering a product line, companies normally develop a ________ and modules that can be
added to meet different customer requirements.
A) convenience item
B) flagship product
C) staple item
D) potential product
E) basic platform
36) The ________ of a product mix refers to how many variants are offered of each product in
the line.
A) width
B) length
C) depth
D) consistency
E) height