309) Which of the following statements regarding labels is most accurate?
A) Although labels are can carry useful information, the less information communicated, the
better.
B) The brand logo or brand name should always be the largest image on a label.
C) Labels can be very expensive, and they are important because they often are the first contact
the consumer has with the product.
D) The best labels to use on food products are those that can be easily removed to promote
recycling of the package.
E) One penny for every dollar consumers spend on products goes toward packaging and labeling
costs.
310) Customer value can assume numerous forms. For Pez Candy, Inc., customer value
manifests itself in the form of
A) an upbeat jingle.
B) character candy dispensers.
C) a stylish logotype.
D) sour taste.
E) sugar coating.
311) Pez was originally sold in Europe as ________ in plain headless dispensers.
A) chewing gum
B) a breath mint
C) an antacid
D) a pain reliever
E) candy
312) The central element of the marketing strategy for Pez Candy, Inc., is the
A) price.
B) breath mint.
C) availability.
D) dispenser.
E) fulfillment.
313) The three main benefits packaging provides to manufacturers, retailers, and consumers
include which of the following?
A) personal
B) communication
C) financial
D) societal
E) aesthetic
314) Directions on how and when to use a product and information about the source and
composition of a product that appear on packaging labels provide what kind of benefits?
A) communication benefits
B) storage benefits
C) perceptual benefits
D) protection benefits
E) self-realization benefits
315) The communication aspect of packaging on a can of Campbell’s soup would most likely be
of the greatest benefit to
A) people in a hurry to get to work.
B) people on a tight budget.
C) people with dietary restrictions.
D) people who are brand loyal.
E) people who love to try new things.
316) Packaging that provides convenience, product quality, protection, or easy storage offers
what kind of benefits?
A) communication benefits
B) functional benefits
C) perceptual benefits
D) physiological benefits
E) financial benefits
317) Product packaging like the Pringles cylindrical package that minimizes breakage provides
A) functional benefits.
B) convenience.
C) communication benefits.
D) technology.
E) renewable resources.
318) Products such as Yoplait’s Go-GURT® portable low-fat yogurt in a tube demonstrate the
importance of the ________ of packaging.
A) perceptual benefits
B) communication benefits
C) functional benefits
D) technology
E) renewable resources
319) Hot-Can Café Latte comes in single-serving, self-heating containers. Not only does this
benefit people on the go, it is a popular product with backpackers and hunters because they can
still have hot coffee when there is no electricity-no heat source necessary! This demonstrates
which benefit of good packaging?
A) communication benefit
B) perceptual benefit
C) financial benefit
D) societal benefit
E) functional benefit
320) When they were first introduced, peel-back aluminum seals were seen as a great alternative
to using a traditional can opener to open cans because many people sliced their fingers with can
openers. As soon as the technology became more widely available, many manufacturers
switched to this safer, more flexible seal. This packaging innovation demonstrated the
importance of a
A) functional benefit.
B) reseller benefit.
C) communication benefit.
D) perceptual benefit.
E) psychological benefit.
321) Which of the following statements about perceptual benefits conveyed by a product’s
packaging and labeling is false?
A) Packaging and labeling convey a brand’s positioning and build brand equity.
B) Packaging and labeling have been shown to enhance brand recognition and facilitate the
formation of strong, favorable, and unique brand associations.
C) The legal requirements for the conveyance of information are an important component of
perceptual benefits.
D) Changes in packaging and labeling can update or uphold a brand’s image in consumers’
minds.
E) The color, shape, and graphics of a package or label can help distinguish one brand from
another.
322) The Reynolds Wrap aluminum foil box has two side tabs that say “Press Here to Lock Roll”
to keep the roll of foil in place during use. This demonstrates which elements of good
packaging?
A) perceptual benefits and functional benefits
B) protection benefits and functional benefits
C) communication benefits and perceptual benefits
D) communication benefits and functional benefits
E) functional benefits and protection benefits
323) Which of the following is one of the four key challenges that package and label designers
face?
A) governmental regulations
B) cultural and societal issues
C) competition from global markets
D) health, safety, and security issues
E) patent and trademark issues
324) To better connect with its customers by providing functional and aesthetic design features,
Kraft did what with its Chips Ahoy! cookies?
A) gave the products a more interesting brand personality
B) created additional brand extensions, such as adding chocolate dipped and mint dipped cookies
C) engaged in a co-branding effort with Blue Bell ice cream
D) complied with ISO 9000 total quality management guidelines due to its expansion into Asian
markets
E) created a patented resealable opening in the bag for easy access and to maintain freshness
325) The environmental challenges of packaging and labeling are often global in nature. These
include all of the following except which?
A) the shortage of viable landfill sites
B) growth of solid waste
C) the composition of packaging materials
D) defective products
E) recycling
326) The challenges of packaging and labeling are often global. One particular challenge facing
global manufacturers involves
A) creating larger size packages to be sold at warehouse stores.
B) creating packaging sensitive to educational diversity.
C) addressing ongoing environmental concerns.
D) ensuring ISO 19000 total quality management within national boundaries.
E) making packaging an irrelevant part of a firm’s marketing strategy.
327) The time a product can be stored before it spoils is referred to as its
A) product life cycle.
B) use-by date.
C) spoilage index.
D) shelf life.
E) expiration date.
328) An expanded marketing mix for services that includes the four Ps (product, price,
promotion, and place or distribution) as well as people, physical environment, and process, is
referred to as the
A) seven Ps of services marketing.
B) service matrix.
C) service continuum.
D) service encounters.
E) service mix.
329) While there are the four Ps of marketing, there are the ________ Ps of services marketing.
A) three
B) five
C) six
D) seven
E) eight
330) All of the following comprise the seven Ps of services marketing except which?
A) product
B) process
C) profitability
D) people
E) physical environment
331) The use of brand names is especially important for services because of which unique
characteristic of services?
A) inventory costs
B) inseparability
C) inconsistency
D) invisibility
E) intangibility
332) Which of the following statements regarding service branding is most accurate?
A) New services cannot be patented and therefore are rarely branded.
B) Because services are intangible and more difficult to describe, brand names and logos are of
critical importance.
C) Services must include the word service in each brand name to inform customers they are not
purchasing a tangible product.
D) Brand reputation has little impact on a firm’s ability to introduce new services.
E) Unlike tangible products, services do not use subbranding.
333) The FedEx brand name suggests that its service is credible and fast. This perception is
important because of which unique characteristic of services?
A) inventory costs
B) inseparability
C) inconsistency
D) invisibility
E) intangibility
334) Tuition, charges, fares, fees, and rates are all terms
A) given to the tangible portion of the price of a service.
B) that are interchangeable when identifying the price of a service.
C) given to the intangible portion of the price of a service.
D) given to describe the price of services.
E) used in services to imply a higher quality product than the terms cost or price.
335) Because of the intangible nature of services, consumers often perceive price as a possible
indicator of the ________ of the service.
A) profit or ROI
B) customer value
C) quality
D) target market
E) cost
336) All of the following are true about the price element of services except which?
A) Price can be referred to in a variety of terms.
B) Price can affect consumer perceptions of the service.
C) Price can be kept consistent through the use of off-peak pricing.
D) Price can be used in capacity management.
E) Price can be used in services to imply a level of quality.
337) One tool available when trying to even out the variations in demand for services is
A) off-peak pricing.
B) product lay-away.
C) credit incentives.
D) container sales.
E) product rationing.
338) Service providers use tools such as ________, which consists of charging different prices
for different times of the day or during different days of the week to manage the variations in
demand for their services.
A) scale pricing
B) capacity pricing
C) down-time pricing
D) off-peak pricing
E) fraction pricing
339) Many service businesses use off-peak pricing to manage variations in
A) costs of delivering service.
B) availability of advertising for a service.
C) profitability based on time of day or week.
D) demand for a service.
E) fixed equipment costs.
340) The less-expensive matinee movie pricing offered on shows prior to 4 p.m. is an example of
A) price lining.
B) price differentiation.
C) off-peak pricing.
D) bait-and-switch pricing.
E) idle production pricing.
341) Commuters in New York often install radio frequency identification (RFID) devices on
their cars that can be read automatically as they approach a toll booth. This saves time, improves
traffic flow, and means drivers don’t need exact change. Also, New York authorities can manage
traffic flow by charging different toll amounts for different times, such as charging a higher toll
for morning and afternoon rush hour periods. This pricing strategy is
A) price gouging.
B) off-peak pricing.
C) flow management pricing.
D) price differentiation.
E) idle production pricing.
342) A major factor in developing a service marketing strategy is ________ because of the
inseparability of services from the producer.
A) product
B) price or distribution
C) promotion
D) place
E) process
343) Place or distribution is a major factor in developing a service marketing strategy because of
the ________ of services.
A) inventory
B) inseparability
C) inconsistency
D) intangibility
E) information
344) Which of the following statements regarding the place element of services is most accurate?
A) Place has little impact on the marketing of services because there are so many intermediaries
from which a consumer may choose.
B) The distribution site as well as the service provider are the intangible components of the
service.
C) Place is an especially important factor because of the inconsistency between the service and
the service provider.
D) As competition grows in service industries, the value of convenient distribution is being
recognized.
E) Technology is an effective way to bring services to the customer, but not those that are
information-based.
345) All of the following are benefits to be stressed during the promotion of services except
which?
A) low price
B) consistent quality
C) location
D) availability
E) efficient and courteous service
346) A publicity tool frequently used by nonprofit services, which uses free space or time
donated by the media, is referred to as
A) a promotion.
B) an advertisement.
C) a press release.
D) a cooperative advertisement.
E) a public service announcement.