37) Which of the following is a benefit of product mapping?
A) studying market matrices
B) integrating target markets
C) identifying market segments
D) educating consumers
E) integrating target matrices
38) What occurs when any company lengthens its product line beyond its current range?
A) market overreach
B) brand dilution
C) product adaptations
D) cannibalization
E) line stretching
39) A company positioned in the “middle” market introduces a lower-priced product line. What
type of line-stretching is this?
A) home stretch
B) up-market stretch
C) down-market stretch
D) maintenance stretch
E) two-way stretch
40) Moving ________ carries risks. The new brand can cannibalize core brand sales and lower
the core brand’s quality image.
A) up-market
B) two ways
C) one way
D) down-market
E) out-market
41) Companies may wish to implement a(n) ________ to achieve more growth, to realize higher
margins, or simply to position themselves as full-line manufacturers.
A) up-market stretch
B) rebranding plan
C) outsourcing strategy
D) disintermediation policy
E) vertical integration strategy
42) A manufacturer of hiking boots looks at data that indicate that their subsegment of the
market called “serious hiker” is declining and is predicted to decline into the future. The firm
decides to enter the “low-price” segment with its new items. This is an example of a firm’s
________ to reach a new market.
A) down-market stretch
B) up-market stretch
C) two-way stretch
D) marketing research
E) disintermediation
43) A product line can also be lengthened by adding more items within the present range. There
are several motives for line filling. Which of the following is one of them?
A) responding to senior management wishes
B) responding to consumer wishes
C) reaching for incremental profits
D) reaching for incremental capacity
E) responding to sales-force demands
44) Price-setting logic must be modified when the product is part of a product mix. In that case,
the firm searches for a set of prices that ________ profits on the total mix.
A) are ineffective on total
B) have no effect on total
C) maximizes
D) minimizes
E) capitalize upon
45) Companies normally develop ________ rather than single products and require sellers to
establish perceived quality differences between price steps within it.
A) product mix
B) captive products
C) product lines
D) optional products
E) average products
46) Some service firms often engage in ________, consisting of a fixed fee plus a variable usage
fee.
A) pure bundling
B) pure pricing
C) mixed pricing
D) captive pricing
E) two-part pricing
47) In ________, the seller offers goods both individually and in bundles and often charges less
for the “bundle” than for the individual products.
A) pirating pricing
B) captive pricing
C) two-part pricing
D) pure bundling
E) mixed bundling
48) McDonald’s restaurants inside Wal-Marts and Starbucks inside Super Targets are examples
of ________, whose main advantages are that the products can or may be convincingly
positioned by virtue of the associated brands.
A) cooperative marketing
B) cross-promotion
C) retail co-branding
D) ingredient branding
E) feature promotion
49) Betty Crocker cake mixes using Hershey syrup in its cake mixes and “Lunchables” lunch
combinations with Taco Bell tacos are examples of what special type of branding?
A) family branding
B) ingredient co-branding
C) co-branding
D) generic-branding
E) individual branding
50) The potential disadvantages of ________ are the risks and lack of control from becoming
aligned with another brand in the consumers mind. Consumer expectations about the level of
involvement and commitment are likely to be high, so unsatisfactory performance could be very
negative for the brands involved.
A) co-branding
B) cannibalization
C) vertical integration
D) disintermediation
E) brand stretching
51) ________ is a special case of co-branding involving creating brand equity for materials,
components, or parts that are necessarily contained within other branded products.
A) Cross-branding
B) Ingredient branding
C) Equity branding
D) Family branding
E) Generic branding
52) We define packaging as all the activities of designing and producing the container for a
product. This includes up to three levels of material: primary package, secondary package, and
________.
A) retailer package
B) design package
C) shipping package
D) consumer package
E) supplier package
53) ________ are formal statements of expected product performance by the manufacturer.
A) Insurance
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets
54) Many sellers offer either general or specific guarantees. Guarantees reduce the buyer’s
________ risk.
A) actual
B) perceived
C) real
D) implied
E) stated
55) Guarantees are most effective in two situations. The first is when the company or products
are not well known and the second is when the product’s quality is ________ to competition.
A) not known
B) different
C) inferior
D) equivalent
E) superior
56) A product is anything that can be offered to a market to satisfy a want or need.
57) The customer-value hierarchy consists of the basic product, core benefit, expected product,
augmented product, and the consumption system.
58) Marketers have traditionally classified products on the basis of characteristics such as
durability, tangibility, and use.
59) Durable products normally require less personal selling and service and less seller guarantees
than nondurable goods.
60) Capital items are long-lasting goods that facilitate developing or managing the finished
products.
61) To be branded, physical products need not be differentiated.
62) To avoid “feature fatigue,” companies must be careful to prioritize those features that are
included and find unobtrusive ways to provide information about how consumers can use and
benefit from the feature.
63) Firms should design the highest performance level possible for their products.
64) As a selling point, durability commands a particularly high pricing premium, especially for
products that are subject to rapid technological obsolescence, as are personal computers and
video cameras.
65) Customer training and customer consulting are two areas for service differentiation that
manufacturers can use with their products.
66) A product system is a group of diverse and unrelated items that does not function in a
compatible manner and includes the product mix and product assortment.
67) The four product-mix dimensions (length, width, depth, consistency) permit the company to
expand its business.
68) Companies in the “middle market” should never attempt to stretch their line in both
directions.
69) In the rapidly changing market of today’s world, product lines must be continuously updated
or modernized.
70) Manufacturers of systems such as razors and ink jet printers use a system of pricing called
“two-part pricing” one price for the disposable products and another for the “hardware.”
71) A pricing system in which there is a “fixed” fee and then a variable “usage” fee is called
bundling.
72) Pure bundling occurs when a firm offers goods both individually and in bundles.
73) Co-branding is when two or more well-known existing brands are combined into a joint
product and/or marketed together in some fashion.
74) Ingredient branding can take on a form called “self-branding” in which the company
advertises its own branded ingredients.
75) Packaging is all the activities of designing and producing the container for a product.
76) Explain the concepts of product-mix width, length, depth, and consistency.
77) Studying how consumers shop, how they use a particular product or service, and how they
dispose of the product when consumed is important for marketers. This information forms the
basis of product strategy. Define the consumption system and identify the two upcoming product
strategies that are affected by this knowledge.
78) You have been asked to prepare a product-line analysis for your company’s stable of
products. Why is it important for product-line mangers to do a product-line analysis?
79) Explain the concept of line stretching and the three uses for it.
80) What are the situations in which guarantees are most effective?