Chapter 10—Product Decisions
TRUE/FALSE
1. Sebastian got a haircut this afternoon. His haircut cannot be called a product, however, because it is a
service, not a tangible good.
2. An elementary school teacher purchased a ream of art paper, a box of crayons, and some modeling
clay. The teacher intends to use these products in her classroom, so they would be classified as
business products.
3. Convenience products, though inexpensive, still require considerable shopping effort by buyers.
4. Because there is not much difference between different brands of milk, milk would be classified as a
homogeneous product.
5. Inez believes makeup is the most important part of her wardrobe. She spends considerable time
comparing the prices, skin tones, and color options available at various cosmetics counters in
department stores. For Inez, makeup is a convenience product.
6. Rolex watches are very expensive, can only be purchased in high-end jewelry stores located in large
metropolitan areas, and most buyers will accept no substitutes. Rolex watches are an example of a
shopping product.
7. A product unknown to the potential buyers or a known-product that the buyers does not actively seek
is referred to as an undesirable product.
8. Coca-Cola is one of the world’s largest manufacturers of beverages. It makes over 2,800 different
beverage products, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks,
and energy drinks. The great variety of beverages made by Coca-Cola represents its product mix.
9. Product modification occurs when changes are made in how the product functions, its quality, or some
aesthetic characteristic of the product.
10. Procter & Gamble’s Olay line of skin products is very popular and profitable. P&G has launched an
Olay body wash that is supposed to fight wrinkles. This is an example of a repositioning.
11. The best generator of repeat sales is satisfied customers.
12. Isaac Golding, owner of a tutoring service, has developed a design for his firm that includes an owl
wearing large spectacles and carrying a satchel crammed full of books and papers. He plans to use this
design on all communications the firm sends out. This design is called the firm’s brand name.
13. Branding has three main purposes: product identification, repeat sales, and new-product sales.
14. Devore loves southern-style cooking and always buys Glory Foods brand of collard greens, blackeyed
peas, and hot sauces. In fact, she refuses to purchase any other brand because Glory Foods products
taste just like her grandmother’s cooking. Devore is showing intense brand loyalty.
15. Kellogg’s, Hanes, and General Electric are examples of a manufacturer’s brand.
16. Retailers love national brands because overhead is low and there are no marketing costs, and they
bring higher margins than private brands.
17. When the manufacturer of French’s classic yellow mustard introduced French’s Dijon mustard,
French’s Honey mustard, and French’s Sweet Onion mustard, it was an example of cobranding.
18. Trademark protection only lasts for five years.
19. The most important functions of packaging are to contain and protect products, promote products,
facilitate product storage, and facilitate recycling.
20. The nutrition label on a package is an example of persuasive labeling.
21. Due to the time required to scan them, universal product codes (UPCs) are typically placed on
merchandise that would be classified as shopping products.
22. A company that wants to market its product globally has only two branding strategies available: either
use the brand name everywhere or develop a new brand name for each different market.
23. Cultural traits can make a package design successful in one country and a failure in another.
24. A warranty does not confirm the quality or performance of a good or service.
25. All sales have an implied warranty under the Uniform Commercial Code.
MULTIPLE CHOICE
1. A _____ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be
tangible, intangible, a service, an idea, or a combination of these things.
a.
brand equity
b.
quality
c.
warranty
d.
transaction
e.
product
2. The _____ is the starting point in creating a marketing mix.
a.
price
b.
product
c.
distribution channel
d.
promotional media
e.
production line
3. Why is creation of a product the starting point for the marketing mix?
a.
The production department must know what to produce first.
b.
Production strategy is the first of the four Ps listed in the marketing mix.
c.
Determination of the price, promotional campaign, and distribution network cannot begin
until the product has been specified.
d.
Product development takes the longest amount of time to complete.
e.
Actually, the product does not have to be the starting point—promotional strategies are
often the starting point.
4. All of the following are examples of products EXCEPT:
a.
carton of milk
b.
contact lenses
c.
haircut
d.
pair of shoes
e.
All of the above are products.
5. Which of the following is NOT an example of a product’s tangible feature?
a.
Brand equity
b.
Packaging
c.
Color
d.
Weight
e.
Size
6. When a greenhouse plant grower sells plants to nursery retailers, is selling _____ products.
a.
specialty
b.
consumer
c.
convenience
d.
business
e.
unsought
7. Rock-Tenn produces cardboard cartons to be used by companies in the food industry. Rock-Tenn is
selling _____ products.
a.
specialty
b.
consumer
c.
business
d.
convenience
e.
unsought
8. The consumer product classification system is based on:
a.
how the market is segmented
b.
the way the products are manufactured
c.
the way products are used
d.
the physical attributes of the product
e.
the amount of effort consumers spend to acquire the product
9. There are so many cell phones on the market, and they vary so much on price, quality, service, and
features that consumers often have trouble comparing them. A cell phone would probably be
considered a _____ product.
a.
convenience
b.
specialty
c.
heterogeneous shopping
d.
homogeneous shopping
e.
generic
10. _____ products are purchased with little shopping effort. These products typically are purchased
regularly, usually with little planning, and require wide distribution.
a.
Convenience
b.
Specialty
c.
Branded shopping
d.
Unbranded shopping
e.
Generic
11. The convenience product marketing strategy includes:
a.
wide distribution of the product
b.
higher than ordinary prices
c.
few retail outlets other than convenience stores
d.
significantly lower promotion budgets
e.
products that are not easily substitutable
12. Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out she
noticed that People Magazine had an interesting cover story about Scarlett Johansson. As Amy is a
huge fan Scarlett, she had to buy a copy. In this example, the People Magazine is an example of a(n)
_____ product.
a.
specialty
b.
convenience
c.
business
d.
shopping
e.
unsought
13. Compared to the other classifications of consumer products, shopping products are:
a.
widely available so they need little or no promotion
b.
usually less expensive than convenience products
c.
purchased without significant planning
d.
usually more expensive than convenience products and are found in fewer stores
e.
purchased immediately after the consumer realizes he or she needs them
14. Kathy is driving Chaz, her young son, home from soccer practice when Chaz say, “Mom, I’m thirsty.”
Kathy immediately pulls the SUV into the nearest gas station and buys Chaz a Coke. For Kathy, the
Coke is best described as an example of buying a _____ product.
a.
homogeneous shopping
b.
heterogeneous shopping
c.
convenience
d.
specialty
e.
component
15. Which of the following is the best example of a convenience product?
a.
Concert tickets
b.
Chewing gum
c.
Jeans
d.
Chemical for the swimming pool
e.
A birthday present
16. Which type of consumer product requires comparison shopping because it is usually more expensive
than a convenience product and is found in fewer stores?
a.
An unsought product
b.
A secondary product
c.
A unique product
d.
A shopping product
e.
A selective product
17. Harrison wanted a gas water heater. He watched newspaper ads until he found one on sale. For
Harrison the water heater is a(n) _____ product.
a.
shopping
b.
convenience
c.
component
d.
unsought
e.
specialty
18. The two types of shopping products are:
a.
unsought and convenience
b.
generic and family
c.
exclusive and intensive
d.
heterogeneous and homogeneous
e.
consumer and business
19. Which of the following is the best example of a shopping product for most consumers?
a.
Washing detergent
b.
Crackers
c.
Soft drink
d.
Digital camera
e.
Magazine
20. _____ are products consumers see as being basically the same, so consumers shop for the lowest price.
a.
Low-prestige specialty products
b.
Product equivalents
c.
Heterogeneous shopping products
d.
Generic convenience products
e.
Homogeneous shopping products
21. Andrea needs to find a kennel for boarding her son’s dogs. There are several different kennels in her
community, and Andrea believes all of them to be basically alike. The only feature she is genuinely
concerned about is low price. For Andrea, the kennel for boarding dogs would be classified as a(n)
_____ product.
a.
specialty
b.
unsought
c.
heterogeneous shopping
d.
basic convenience
e.
homogeneous shopping
22. _____ products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility.
Comparisons between these products are often quite difficult because they may have unique features
and different levels of quality and price.
a.
Product equivalents
b.
Comparative convenience products
c.
Homogeneous shopping products
d.
Product counterparts
e.
Heterogeneous shopping products
23. When Kyla wanted patio furniture, she visited stores that had outdoor furniture, including Home
Depot, Lowe’s, Target, and Howard Lumber Company to find the set that would look just right on her
patio. If Kyla represents a typical patio furniture shopper, you know this product is a(n):
a.
homogeneous luxury product
b.
shopping specialty good
c.
operating supply good
d.
convenience item
e.
heterogeneous shopping product
24. Which of the following products is most likely to be considered an example of a heterogeneous
shopping product?
a.
An apartment
b.
Laundry detergent
c.
A blender
d.
A package of pens
e.
Dog food
25. _____ products are searched for extensively, and substitutes are not acceptable. These products may be
quite expensive, and often distribution is limited.
a.
Exclusive shopping
b.
Homogeneous convenience
c.
Branded shopping
d.
Specialty
e.
Heterogeneous convenience
26. Bang & Olufsen make some of the best sound systems in the world. After years of development, Bang
& Olufsen recently released its new BeoLab 5 speakers. For audiophiles who demand the best in audio
equipment, the $19,950 Bang & Olufsen BeoLab 5 speakers represent an example of a(n) _____
product.
a.
heterogeneous shopping
b.
specialty
c.
homogeneous shopping
d.
convenience
e.
exclusive
27. Janet will only purchase Crate and Barrel products for her home. The products are expensive but Janet
feels they have the highest quality and will last a very long time. These products represent _____
products.
a.
heterogeneous shopping
b.
specialty
c.
homogeneous shopping
d.
convenience
e.
business
28. Evan Zimmermann loves watches. He collects vintage Rolex sport models made between 1950 and
1960. He paid $1,500 for his first watch in 2000. Now, the watch is worth $15,000. For Evan, the
vintage watches are an example of a(n) _____ product.
a.
specialty
b.
consumer
c.
convenience
d.
business
e.
unsought
29. When deciding on distribution plans for specialty products, companies generally ensure that the items
are:
a.
made available only as private brands
b.
made available in a large number of stores in a geographic area
c.
made available only through the mail
d.
distributed to a considerable number of stores in a geographic area
e.
distributed to only a few stores in the geographic area
30. _____ products are products that are not known about or not actively searched for by consumers.
These products require aggressive personal selling and highly persuasive advertising.
a.
Hidden
b.
Specialty
c.
Equity
d.
Unsought
e.
Shopping
31. Unsought products typically are products that:
a.
consumers purchase when they see them in a convenient location
b.
consumers definitely don’t want
c.
only require reminder advertising to be successful
d.
require little or no decision making by the buyer
e.
consumers don’t know about or don’t actively look for
32. Every three months or so, Stanley cleans the lint out of the long vent to his clothes dryer. It is a messy
job that Stanley hates. It is too bad that Stanley has never heard of the Casabella Bendable Dryer Vent
Brush, a specially designed brush that would make his life a little easier. For Stanley, the dryer vent
brush is a(n) _____ product because he doesn’t know the product exists.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
convenience
e.
exclusive
33. Freda was proud of her shiny new iPhone. But she was disappointed when she began to notice
scratches on its display surface. If Freda had of known about the clear static cling protective films that
were available to protect the iPhone display from scratches, she could have avoided this annoying
problem. For Freda, the protective films are a(n) _____ product.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
convenience
e.
consumer
34. Unsought products are often sold through:
a.
aggressive personal selling
b.
highly persuasive advertising
c.
direct mail
d.
dirct-response advertising
e.
All of the above.
35. A product line is a group of products that are closely related because the:
a.
products share the same product managers
b.
products all function in a similar manner and provide similar benefits
c.
same company developed the idea for each product
d.
products are all sold under the same brand name
e.
products are all priced about the same
36. A number of yogurts are marketed under the Dannon brand, including Dannon All Natural, Dannon
Fruit on the Bottom, Dannon Light & Fit, DanActive, and Dan-o-nino. The large variety of yogurts
under the Dannon brand in an example of a:
a.
marketing mix
b.
product line
c.
product mix
d.
product equity
e.
product modification
37. Which of the following is an example of a product item?
a.
Tarter Protection Crest toothpaste
b.
Campbell’s soup
c.
Chevrolet automobiles
d.
Ore-Ida frozen foods
e.
All of the above are product items.
38. Along with its Macintosh computer line, Apple markets its iPod, iPhone, and AppleTV products. This
is an abbreviated listing of the company’s:
a.
customer mix
b.
product line
c.
product mix
d.
line depth
e.
product modification
39. Product mix width may be defined as:
a.
the number of different product categories found within an industry
b.
the average number of products within each product line in the company
c.
the average number of products offered by the company
d.
the number of different product lines an organization offers for sale
e.
the extensiveness of the coverage of the line from high end (expensive) to low end
(inexpensive)
40. All of the following are benefits from organizing related items into product lines EXCEPT:
a.
package uniformity
b.
varying quality
c.
advertising economies
d.
efficient sales and distribution
e.
standardized components
41. Campbell’s can talk about its soups being “Mm! Mm! Good!” and promote its entire line. This is an
example of:
a.
macroeconomics
b.
package uniformity
c.
advertising economies
d.
guerilla marketing
e.
economies of scale
42. ForeverLawn has recently added two new synthetic lawn products. One of the products includes fake
brown grass that makes the synthetic lawn look more realistic as it appears to have some patches of
brown thatch. The other product is K9Grass for consumers that have pet dogs. The addition of these
two new synthetic grass products is a way for ForeverLawn to increase its:
a.
line width
b.
breadth mix
c.
mix width
d.
line depth
e.
mix depth
43. Most people recognize Crayola as a brand of crayon, but Crayola also markets paints, chalk, pencils,
markers, toys, coloring books, clothing, and even software. All these products are part of Crayola’s:
a.
marketing equity
b.
product line
c.
product mix
d.
line depth
e.
product modification
44. Procter & Gamble manufactures Tide laundry detergent, the best-selling brand in the United States.
But is also offers Tide to Go, which is a stick product consumers can use to clean a spot on their
clothing between washings, and small travel packets of Tide detergent. These other products are part
of Tide’s product line:
a.
width
b.
breadth
c.
mix
d.
depth
e.
synergy
45. There are a number of toothpastes marketed under the Crest brand including Cavity-Protection Crest,
Sensitive-Teeth Protection Crest, Baking Soda Crest, Tartar Protection Crest, and Crest for Kids. This
is an example of Crest’s:
a.
product line width
b.
product mix
c.
product line depth
d.
product mix inconsistency
e.
marketing mix
46. Procter & Gamble (P&G) is a well-known producer of home and beauty products. Along with home
and beauty products, P&G also markets pet products, prescription drugs, and small appliances. This
range of products provides the company with product _____.
a.
line height
b.
line consistency
c.
mix width
d.
line depth
e.
mix depth
47. Firms increase the depth of their product lines for all of the following reasons EXCEPT:
a.
to attract buyers with different preferences
b.
to diversify risk
c.
to further segment the market
d.
to capitalize on economies of scale
e.
to even out seasonal sales patterns
48. Changing one or more of a product’s characteristics is called:
a.
product modification
b.
product repositioning
c.
product adjustment
d.
planned obsolescence
e.
product extension
49. Which of the following is an example of a product modification?
a.
Lowering the price of textbooks
b.
Dropping a product from the product line
c.
Changing the color of a laundry detergent
d.
Changing the amount of management time spent overseeing production
e.
Increasing the number of distribution outlets
50. Recently Apple updated its iPod Touch product, expanding its storage from 8 GB to 32 GB. Enlarging
the iPod Touch’s storage capacity is an example of a:
a.
product modification
b.
brand mix extension
c.
product diversification
d.
brand repositioning
e.
demographic modification
51. Which type of product modification changes a product’s dependability or durability?
a.
Functional
b.
Style
c.
Aesthetic
d.
Quality
e.
Primary
52. A go-cart manufacturer recently added shock absorbers to make the ride in its go-carts smoother. It has
not changed its prices. This is a(n) _____ modification.
a.
upsale
b.
style
c.
dysfunctional
d.
repositioning
e.
quality
53. When Honda automobiles first entered the U.S. market, they were small and not very durable.
However, over the years, Honda has modified its automobiles to be one of the most dependable cars on
the market. This change in dependability and durability is representative of which type of product
modification?
a.
Style modification
b.
Planned obsolescence
c.
Functional modification
d.
Quality extension
e.
Quality modification
54. Which type of product modification changes a product’s versatility, effectiveness, convenience, or
safety?
a.
Quality
b.
Planned
c.
Functional
d.
Style
e.
Use
55. When Procter & Gamble removed potentially dangerous dyes and chemicals from its Tide detergent
product and introduced Tide Free they were making a(n):
a.
product line contraction
b.
quality modification
c.
aesthetics modification
d.
obsolescence factor
e.
functional modification
56. Which type of product modification is an aesthetic product change?
a.
Functional
b.
Quality
c.
Repositioning
d.
Style
e.
Planned
57. A style modification is a(n):
a.
change in the product’s durability or dependability
b.
safety improvement
c.
aesthetic product change
d.
way to add convenience
e.
improvement in product versatility and effectiveness
58. One of the leading manufacturers of choir robes has added different types of trim and fabric it uses in
making the robes. The company has not changed its prices. This is a(n) _____ modification.
a.
style
b.
obsolescence
c.
quality
d.
repositioning
e.
upward extension
59. Which of the following statements about planned obsolescence is true?
a.
Environmentalists support planned obsolescence.
b.
A company that is interested in producing a quality product would never engage in
planned obsolescence.
c.
Style modification creates planned obsolescence.
d.
Planned obsolescence is not an ethical issue.
e.
All of the statements about planned obsolescence are true.
60. A regional utility company needs to change consumers’ perceptions of its current service as being
harmful to the environment. Which of the following strategies would best allow the company to
accomplish this goal?
a.
Contraction of the number of services offered by the utility company
b.
Adding new services to its product line
c.
Repositioning
d.
Disintermediation
e.
Use of product cannibalization
61. Apple Computer Inc. recently dropped the “Computer” from their name to become Apple Inc. This
was a part of the company’s _____ away from simply being perceived a computer company.
a.
quality modification
b.
aesthetic modification
c.
demarketing
d.
repositioning
e.
functional extension