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Indicate whether the statement is true or false.
1. A service mark is the exclusive right to use a brand or part of a brand.
a. True
b. False
2. An organization’s product mix includes all the products it sells.
a. True
b. False
3. Greenwashing is the term used to describe industrial processes that cause pollution above the permissible limit set by
the government.
a. True
b. False
4. A one-brand-name strategy should be adopted when the name cannot be pronounced in the local language, when the
brand name is owned by someone else, or when the brand name has a negative or vulgar connotation in the local
language.
a. True
b. False
5. Trademark rights come from registration rather than use.
a. True
b. False
6. Prospective home buyers perceive houses as a heterogeneous shopping product, therefore they find it harder to compare
homogeneous shopping products because the prices, quality, and features of such products are similar.
a. True
b. False
7. Washers, dryers, refrigerators, and televisions are examples of unsought products.
a. True
b. False
8. 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
9. Salespeople actively seek leads for selling unsought products to potential buyers.
a. True
b. False
10. An implied warranty is a written guarantee that the good or service is fit for the purpose for which it was sold.
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b. False
11. The key distinction between consumer products and business products is their intended use.
a. True
b. False
12. Insurance, burial plots, and similar items fall under the convenience product category.
a. True
b. False
13. Decrease in consumer demand for green products was directly responsible for the proliferation of green certifications.
a. True
b. False
14. Ingredient branding occurs when two brands receiving equal treatment borrow from each other’s brand equity.
a. True
b. False
15. The three most important functions of packaging are to contain and protect products; promote products; and facilitate
the storage, use, and convenience of products.
a. True
b. False
16. A shopping product is a particular item for which consumers search extensively and are very reluctant to accept
substitutes.
a. True
b. False
17. Packaging of any product is done for the sole purpose of promoting that product.
a. True
b. False
18. In the case of private brands, overhead is low and there are no marketing costs.
a. True
b. False
19. Product line width refers to the number of product items in a product line.
a. True
b. False
20. Specialty products normally require wide distribution to sell sufficient quantities to meet profit goals.
a. True
b. False
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21. Persuasive labeling is designed to help consumers make proper product selections and lower their cognitive
dissonance after the purchase.
a. True
b. False
22. Each product item in the product mix may require a separate marketing strategy.
a. True
b. False
23. Universal product codes (UPCs) are the lines on product labels that are read by computerized optical scanners that
match codes with brand names, package sizes, and prices.
a. True
b. False
24. Scanning universal product codes (UPCs) slows down the process of recording consumer purchases at high-volume
outlets.
a. True
b. False
25. Family branding is about using different brand names for different products.
a. True
b. False
26. With homogeneous shopping products, consumers typically look for the lowest priced brand that has the desired
features.
a. True
b. False
27. A convenience product is a relatively inexpensive item that merits little shopping effort—that is, a consumer is
unwilling to shop extensively for such an item.
a. True
b. False
28. Captive brands allow the retailer to ask a price similar or equal to manufacturers’ brands, and the retailer typically
displays captive brands alongside mainstream products.
a. True
b. False
29. The success of any business or consumer product depends in part on the ability of consumers in the target market to
distinguish one product from another.
a. True
b. False
30. The universal product code (UPC) system and scanners are used in scanner-based research.
a. True
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b. False
31. The definition of product includes only tangible goods.
a. True
b. False
32. The term product refers to a tangible good. Services and ideas are not classified as products because of their intangible
nature.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
33. Which of the following best defines an unsought product?
a. A relatively inexpensive item that merits little shopping effort
b. Everything, both favorable and unfavorable, that a person receives in an exchange
c. A product that requires comparison shopping because it is usually more expensive than a convenience product and
is found in fewer stores
d. A product unknown to the potential buyer or a known product that the buyer does not actively seek
34. ________________ is the number of product lines an organization offers.
a. A product item
b. The product mix
c. The product mix width
d. The product line depth
35. Which of the following refers to changing one or more of a product’s characteristics?
a. Product modification
b. Repositioning
c. Product line extension
d. Planned obsolescence
36. Which of the following options defines brand loyalty?
a. It is the value of a company or brand name.
b. It is that part of a brand that can be spoken, including letters, words, and numbers.
c. It is a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them
from competitors’ products.
d. It is a consistent preference for one brand over all others.
37. ______________ is a specific type of package labeling designed to help consumers make proper product selections
and lower their cognitive dissonance after the purchase.
a. Descriptive labeling
b. Persuasive labeling
c. Informational labeling
d. Standardized labeling
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38. Which of the following statements is true of convenience products?
a. A consumer is unwilling to shop extensively for convenience products.
b. These are products that are perceived to have similar features.
c. A consumer is unwilling to accept other substitutes for convenience products.
d. These are products that are not actively sought after by consumers.
39. _____ occurs when two brands receiving equal treatment (in the context of an advertisement) borrow from each
other’s brand equity.
a. Ingredient branding
b. Cooperative branding
c. Complementary branding
d. Family branding
40. Product modification may refer to which of the following?
a. Quality modification
b. Functional modification
c. Style modification
d. All of the above are correct.
41. Which of the following refers to a group of closely related product items?
a. Product line
b. Product mix
c. Product mix width
d. Product line depth
42. 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.
43. Which of the following refers to placing two or more brand names on a product or its package?
a. Co-branding
b. Family branding
c. A trademark
d. A service mark
44. The elements of a brand that cannot be spoken are called ____________.
a. a brand name
b. a brand mark
c. brand equity
d. brand loyalty
45. 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 that a product is environmentally friendly.
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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.
46. ______________ is when a product or company attempts to give the impression of environmental friendliness whether
or not it is environmentally friendly.
a. Family branding
b. Informational labeling
c. Greenwashing
d. Captive branding
47. Nestor’s Nesties, a confectionery company, sells a variety of dark chocolates, milk chocolates, gummies, fruit juices,
crackers, cereals, and even cheese. These products together constitute the company’s _____.
a. brand symbol
b. product line
c. brand mark
d. product mix
48. Which statement 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 separately from mainstream products in a store.
c. A captive brand strategy allows retailers to ask a price similar or equal to manufacturers’ brands.
d. A captive brand strategy allows retailers to market private brands as inferior to manufacturers’ brands.
49. A(n) _____ strategy is unwise to use when a brand name has a negative or vulgar connotation in the local language.
a. adaptations-and-modifications
b. one-brand-name
c. different-brand-name-in-different-markets
d. multiple-brand-name
50. A particular item for which consumers search extensively and are very reluctant to accept substitutes is called a(n)
__________.
a. convenience product
b. shopping product
c. specialty product
d. unsought product
51. Which strategy for handling a brand name is useful when a company plans to enter a foreign market with mainly one
product and the brand name doesn’t have negative connotations in any local markets?
a. A one-brand-name-everywhere strategy
b. An adaptation and modification strategy
c. A strategy using different brand names in different markets
d. All of the above are appropriate.
52. Fournotts Corp. manufactures a special kind of filter that can purify water quickly, but consumers in the market are
not aware of the product’s existence. In this case, which of the following strategies will increase the sales of the filter?
a. Using status-conscious advertising
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b. Using direct response advertising
c. Using selective advertising
d. Using customer-generated advertising
53. If a product is modified by reducing its quality, the marketer’s likely intent is to:
a. provide new opportunities for market segmentation.
b. allow a manufacturer to lower the price of the product.
c. increase brand loyalty.
d. help firms cater more effectively to higher socioeconomic classes.
54. 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.
55. 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
56. 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.
57. Eve Aura, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this
information, which 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.
58. Which of the following refers to adding additional products to an existing product line to compete more broadly in the
industry?
a. Product line extension
b. Product modification
c. Repositioning
d. Planned obsolescence
59. Which of the following illustrates a difference between individual branding and family branding?
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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. __________________ is the practice of modifying products so those that have already been sold become obsolete
before they actually need replacement.
a. Product modification
b. Repositioning
c. Product line extension
d. Planned obsolescence
61. A _____ occurs when a company’s management decides to add products to an existing product line to compete more
broadly in the industry.
a. product line reeling
b. product line extension
c. product line classification
d. product line contraction
62. Which of the following describes product line depth?
a. It is the number of product items in a product line.
b. It is the number of product lines an organization offers.
c. It refers to all products that an organization sells.
d. It is a group of closely related product items.
63. Which of the following aspects of packaging is especially important in international marketing?
a. Labeling
b. Aesthetics
c. Climate considerations
d. All of the above are correct.
64. Which of the following is the function of packaging?
a. Containing and protecting products
b. Promoting products
c. Facilitating storage and recycling
d. All of the above are correct.
65. 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.
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66. 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
67. A relatively inexpensive item that merits little shopping effort is called a(n) ______________.
a. convenience product
b. shopping product
c. industrial product
d. unsought product
68. All products that an organization sells constitute its ______________.
a. product line
b. product mix
c. product mix width
d. product line depth
69. Torque Roz, an automobile company, uses a unique tire design on its vehicles. A rival company was found copying
the exact design for its automobiles. Torque Roz filed a legal claim against the rival company regarding this issue and
won 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
70. 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 overheating problem.
71. Which of the following best defines brand equity?
a. The value of a company or brand name
b. The elements of a brand that cannot be spoken
c. A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them
from competitors’ products
d. That part of a brand that can be spoken, including letters, words, and numbers
72. Which of the following refers to a type of package labeling that focuses primarily on a promotional theme or logo and
consumer information is secondary?
a. Persuasive labeling
b. Informational labeling
c. Packaged labeling
d. Greenwashing
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73. 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.
In this scenario, Remonet’s HY15 smartphone model is an example of a(n) _____.
a. convenience product
b. product item
c. unsought product
d. product line
74. Which of the following is true about an implied warranty?
a. An implied warranty is a written guarantee.
b. An implied warranty gives a guarantee of quality in the form of a simple statement.
c. Implied warranty documents can be written in technical language guaranteeing complete satisfaction.
d. All sales have an implied warranty under the Uniform Commercial Code.
75. 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
76. _______________ is the exclusive right to use a tangible product brand or part of a product brand.
a. A service mark
b. Family branding
c. A trademark
d. A captive brand
77. ___________ is a name, term, symbol, design, or combination thereof that identifies a seller’s products and
differentiates them from competitors’ products.
a. A brand
b. Positioning
c. A global brand
d. Brand equity
78. 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.
79. Which statement 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.
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80. 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 track and record customer purchases.
81. A brand that obtains at least one-third of its earnings from outside its home country, is recognizable outside its home
base of customers, and has publicly available marketing and financial data is called ____________.
a. a local brand
b. a global brand
c. brand equity
d. a brand mark
82. Which of the following correctly defines co-branding?
a. Placing two or more brand names on a product or its package
b. Marketing several different products under the same brand name
c. A trademark for a service
d. The exclusive right to use a brand or part of a brand
83. Three Arrows Inc. is a company that manufactures paper bags from recycled paper. Its marketers receive complaints
that the bags get wet easily and tear after a few weeks of use. The company decides to respond to their customers’
complaints by using a thicker, waterproof paper. This is an example of _____.
a. product placement
b. functional modification
c. planned obsolescence
d. quality modification
84. Which global brand name strategy is useful when the marketer wants the brand to appear to be a local brand or when
regulations require localization?
a. One-brand-name everywhere
b. Adaptations and modifications
c. Transactional marketing strategy
d. Different brand names in different markets
85. _____ is a confirmation of the quality or performance of a good or service.
a. A warranty
b. A package
c. Branding
d. Labeling
86. ________________ identifies a product by class or type and cannot be trademarked.
a. A generic product name
b. A brand name
c. A service brand
d. Family branding