d.
express
e.
superfluous
119. The statement on the toothpaste box that brushing twice a day with this paste will remove 90 percent
of all tartar from the user’s teeth is an example of a(n):
a.
implied warranty
b.
functional label
c.
UPC disclaimer
d.
express warranty
e.
universal warranty
120. Shane had every reason to believe the antacid he purchased would relieve his stomach problems if he
followed the directions on the box. This is an example of a(n):
a.
implied warranty
b.
functional label
c.
persuasive label
d.
express warranty
e.
universal warranty
121. Under the _____, all sales have an implied warranty.
a.
Label Law
b.
Lanham Act
c.
Bill of Rights
d.
Good Housekeeping Seal
e.
Uniform Commercial Code
Most people recognize Campbell’s as a brand of soup, but Campbell’s also manufactures Pace Picante
Sauce, Pepperidge Farms products, Prego Sauce, Swanson Broth, and V8 juice. Campbell’s
International division offers more than 20 brands of soups, sauces, beverages, and baked snacks in the
Asia Pacific region, Greater Europe and Latin America. Products such as Arnott’s biscuits and
crackers and Bià Band soups are well known overseas. Campbell’s products are sold in more than 120
countries.
122. Refer to Campbell’s. Marco likes to pack a V8 juice in his lunch bag every day. Based on its intended
use, Marco’s V8 juice could best be classified as _____ products.
a.
industrial
b.
consumer
c.
business
d.
convenience
e.
unsought
123. Refer to Campbell’s. Campbell’s Creamy Chicken Soup could be called a:
a.
product mix
b.
product item
c.
product depth
d.
product width
e.
product consistency
124. Refer to Campbell’s. All the products that Campbell’s sells—both domestically and worldwide—is the
company’s product:
a.
item
b.
depth
c.
width
d.
mix
e.
marketing consistency
125. Refer to Campbell’s. The soups, juices, broths, sauces, and baked goods sold by Campbell’s compose
the company’s product mix:
a.
depth
b.
length
c.
width
d.
reliability
e.
consistency
126. Refer to Campbell’s. If a marketer looks only at the canned soups produced by Campbell’s and notes
the brands and items only within that category, he or she is analyzing the _____ of the product line.
a.
width
b.
length
c.
depth
d.
levels
e.
consistency
127. Refer to Campbell’s. Of the following what is probably Campbell’s biggest labeling concern in its
international markets?
a.
printing accurate warranties on each label
b.
correctly affixing the UPC code on each label
c.
eliminating any persuasive labeling as such labels are not effective on the international
market
d.
making sure the labels are aesthetically pleasing
e.
translating ingredient, promotional, and instructional information
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new homes, often at
prices less than “used” ones. Choice Homes used mass-purchasing power, innovative high-tech
communications among employees to coordinate the building process, and other entrepreneurial
strategies to hold costs down. Its homes are primarily targeted at first-time homeowners-to-be in an
effort to get people out of apartments so they can experience the “American Dream” of home
ownership for the same price as rent. Choice Homes later developed the “Choice Classic” brand name
for higher-end homes targeted at wealthier dual-income couples. The Choice Classic name was
designed to capitalize on the reputation of Choice Homes, especially for current Choice home owners
who are ready to “move up” to a larger home. Recently, Choice Homes started a third line of homes
called “Reflections,” which are expensive, custom-designed homes located in exclusive, prestigious
neighborhoods.
128. Refer to Choice Homes, Inc. Kurt McKinney has just received a large inheritance and wants to have
his “dream” home built. He knows exactly the architectural design he wants. He wants a particular
Reflections home. The type of consumer product he wishes to buy is best classified as a(n):
a.
shopping product
b.
convenience product
c.
nondurable good
d.
specialty product
e.
unsought product
129. Refer to Choice Homes, Inc. The three different brands of homes (Choice, Choice Classic, and
Reflections) represent the firm’s:
a.
line portfolio
b.
mix depth
c.
line breadth
d.
product line
e.
product itemization
130. Refer to Choice Homes, Inc. Choice Homes is considering acquiring a mortgage and title company to
add to its marketing power in selling homes. This acquisition would expand the firm’s:
a.
product mix width
b.
line breadth
c.
product item width
d.
product line length
e.
product breadth
131. Refer to Choice Homes, Inc. Choice Homes is considering the development of a new category of small
homes designed to replace low-income housing in the inner city. This strategy represents a:
a.
quality modification
b.
product line extension
c.
style modification
d.
product line contraction
e.
functional modification
132. Refer to Choice Homes, Inc. In a recent survey, Choice Homes’ customers indicated that they thought
their homes were high quality, made lots of referrals to friends, and planned to buy a Choice Classic or
Reflections home in the future. The customers’ reactions indicate that Choice Homes has achieved:
a.
generic status
b.
private brand status
c.
brand equity
d.
superficial skills
e.
brand superiority
James Hardie began selling fiber cement siding products in the United States in 1989 to leading
builders, lumberyards, and home improvement centers. Even though ads guaranteed the product would
not rot or crack for 50 years, many builders hated the product. It was heavy to install, and it showed
every flaw in a bad framing job. In 1997, Hardie decided to run ads in traditional lifestyle magazines
and emphasize the emotional appeal of houses made with strong, weather-resistant materials. Soon
consumers began asking their builders or remodelers to use the product. Trade ads were used to
explain how builders could take advantage of the interest created by the ads in lifestyle magazines. By
2000, the Hardieplank was the number one brand siding in North America. James Hardie is now the
third most recognized brand of building material in the world.
133. Refer to Hardie Siding Products. Hardieplank siding is best described as a(n) _____ product.
a.
business
b.
specialty
c.
unsought
d.
shopping
e.
convenience
134. Refer to Hardie Siding Products. Hardieplank siding is an example of a product:
a.
line
b.
mix
c.
reference point
d.
item
e.
standardization
135. Refer to Hardie Siding Products. Hardie now makes multiple types of fiber-cement siding products.
There are different widths, textures, and profiles. The different types of siding the company makes are
called its product:
a.
line
b.
mix
c.
reference point
d.
item
e.
standardization
136. Refer to Hardie Siding Products. By changing the focus of its promotion from the building industry to
homeowners who saw their homes as sources of security, warmth, and stability, Hardie Siding used a
_____ strategy.
a.
market penetration
b.
repositioning
c.
product penetration
d.
harvesting
e.
divestment
137. Refer to Hardie Siding Products. Since all of the siding products sold by Hardie are sold under the
Hardie brand name, it is clear that the company uses a _____ strategy.
a.
family branding
b.
private branding
c.
business branding
d.
cobranding
e.
repositioning
138. Refer to Hardie Siding Products. What type of warranty is Hardie offering in its promotions?
a.
implied
b.
responsive
c.
intangible
d.
express
e.
valid
When consumers think of Nestlé, they probably think of chocolate. Historically, though, Nestlé’s
confectionary business is its weakest area. Based in Switzerland, it is the world’s largest food
company, with a brand arsenal of Nescafe, Jenny Craig, Perrier, Purina, and PowerBar, just to name a
few of its 30 product lines. Nestlé is hoping to become the “world’s leading health, nutrition, and
wellness firm” by spending billions of dollars on research and development of functional foods—foods
that have pharmaceutical-like capabilities to enhance energy and heart, bone, gut, and other health.
Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of
this new focus includes streamlining their product mix by selling underperforming items or lines that
do not fit its new direction. Critics claim this new focus could hurt the company’s existing brands if
the new products fail. Additionally, it may be an uphill battle convincing consumers that a company
known for indulgence is now a wellness company.
139. Refer to Nestlé. Some of Nestlé’s products include bottled water, candy, and coffee, which would be
classified as what type of consumer products?
a.
heterogeneous shopping products
b.
homogeneous shopping products
c.
convenience products
d.
specialty products
e.
unsought products
140. Refer to Nestlé. Nestlé’s quest is to make some of its existing products more nutritious and provide a
health benefit. This is an example of which type of product modification?
a.
style modification
b.
extensive modification
c.
brand modification
d.
ingredient modification
e.
functional modification
141. Refer to Nestlé. After developing these new, functional products, Nestlé will have to change
consumers’ perceptions of its brands because it is known for indulgence, not wellness. Nestlé will
have to _____ itself.
a.
reinvent
b.
reposition
c.
rename
d.
modify
e.
standardize
142. Refer to Nestlé. What adjustment to its product mix is Nestlé doing when it removes
underperforming items from the market?
a.
product line extension
b.
product line contraction
c.
product pruning
d.
product line retraction
e.
functional modification
143. Refer to Nestlé. One new product Nestlé intends to introduce includes fiber added to chocolate. The
packages will include the fact that each chocolate bar contains 5 grams of fiber and the various health
benefits of including more fiber in one’s diet. Which form of labeling will this perform?
a.
persuasive
b.
informational
c.
regulatory
d.
competitive
e.
perceptive
ESSAY
1. How would a marketer define the term product?
2. Products can be classified as either business/industrial or consumer products. Explain what
distinguishes business products from consumer products and why it is important to understand this
distinction.
3. Name and briefly define the four categories of consumer products. For each category, list three
specific examples of products that would most likely be classified in that category.
4. What is the difference between a homogeneous shopping product and a heterogeneous shopping
product? Give specific examples of products that fit into each category to help illustrate your answer.
5. The Crayola brand is currently placed on a wide variety of products, including crayons (standard and
fluorescent colors packaged in a wide variety of box sizes), markers (regular and washable), paints
(watercolor and acrylic), scissors, glue, and children’s clothing. Using Crayola as an example, describe
the concepts of product item, product line, and product mix.
6. Discuss the benefits for organizations by organizing related items into product lines.
7. Smith-Binney’s Crayola makes various products, all targeted toward elementary school children.
Drawing, painting, and supply items are sold at convenience stores, toy stores, and grocery stores.
Clothing is sold in department stores. Crayola might arrange its product items in the following way:
Drawing/Painting
Supplies
Textiles
Crayons, regular wax
Crayon sharpeners
Boys’ clothing
Crayons, fluorescent
Paint brushes
Girls’ clothing
Markers, regular
Scissors
Bed and bath linens
Markers, washable
Glue
Watercolor paints
Storage cases
Acrylic paints
Chalk
What is the product mix width for Crayola? What is its product line depth?
8. Compare and contrast the three types of product modifications and give an example of how each could
be implemented.
9. What is planned obsolescence? Give at least two examples. Is planned obsolescence ethical, or does it
serve a function? Explain your answer.
10. Explain the differences among the terms brand, brand name, brand mark, trademark, and service mark.
11. What purposes does branding serve?
12. Distinguish between manufacturer’s brands and private brands. From the reseller’s perspective, what
are they key advantages of carrying each type of brand?
13. Packaging is an important component of the product strategy. List and briefly describe the four major
functions of packaging.
14. Name and describe the two labeling forms.
15. What is a universal product code (UPC)? How does the use of UPCs benefit retailers?
16. You are the U.S. brand manager of the Fluffit family of products. The products include a wide variety
of synthetic and natural stuffing materials for furniture cushions, sleeping bags, quilts, and winter
coats. The brand is a favorite among home repair enthusiasts and hobbyists of various kinds. Your firm
would like to enter several foreign markets. Name and describe the three major alternative brand name
choices for this global strategy. Discuss the viability of each alternative for Fluffit.
17. Compare and contrast an express warranty and an implied warranty.