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Indicate whether the statement is true or false.
1. A product that has attained a monopoly position with its consumers is in the brand preference stage of brand
loyalty.
a. True
b. False
2. An effective label performs both promotional and informational functions.
a. True
b. False
3. Brand insistence is a company’s first objective for newly introduced products.
a. True
b. False
4. A college education is an example of a pure product on the goods–services continuum.
a. True
b. False
5. Hershey’s introduction of a sugar-free version of its candy bar is an example of line extension.
a. True
b. False
6. A dentist provides pure service.
a. True
b. False
7. A rise in perceived quality or public opinion about a brand enhances the brand’s esteem.
a. True
b. False
8. Karen prefers to buy Chemtec’s cleaning products over other brands if they are easily available in the market.
Karen is in the brand insistence stage of brand loyalty.
a. True
b. False
9. Production of private-label goods helps manufacturers reach additional market segments.
a. True
b. False
10. Marketers’ emphasis on targeting smaller market segments has increased the importance of packaging as a
promotional tool.
a. True
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b. False
11. Services are intangible products.
a. True
b. False
12. One way to distinguish goods from services is that services are inseparable from their service providers.
a. True
b. False
13. A chocolate bar bought while standing in the checkout line is an example of staples.
a. True
b. False
14. A trademark is different from a trade name, which is usually used to identify a company.
a. True
b. False
15. The marketing mix is the blending of the four strategy elements – product, price, distribution, and promotion
– to satisfy the target market.
a. True
b. False
16. Jack does not buy his shoes from any company other than Unparalleled, a leading shoe manufacturer,
because of the comfort they offer and their unique style features. Jack is in the brand insistence stage of brand
loyalty.
a. True
b. False
17. Staples are convenience goods and services that consumers constantly replenish to maintain a ready
inventory.
a. True
b. False
18. A brand mark is defined as a part of a brand that can be spoken.
a. True
b. False
19. Restaurant chains often use the same room decor and dining menu at all their locations in an attempt to
standardize the services they offer.
a. True
b. False
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20. The “brand relevance” dimension of the brand personality refers to a brand’s ability to stand apart from its
competitors.
a. True
b. False
21. Josh usually buys one brand of orange juice but, occasionally, will buy a competitive brand if it’s on sale.
Josh is exhibiting brand insistence.
a. True
b. False
22. Milk is an example of a convenience product.
a. True
b. False
23. Brand insistence, the ultimate stage in brand loyalty, leads consumers to refuse alternatives and to search
extensively for the desired merchandise.
a. True
b. False
24. A product’s package color, size, and label shapes are all part of its trade dress.
a. True
b. False
25. The original owner of a brand name can claim exclusive rights to the name even when the brand name
becomes a descriptive generic name for a class of products.
a. True
b. False
26. Merrill Lynch’s bull logo cannot be considered a part of the product’s trade dress.
a. True
b. False
27. Fears of product tampering have forced many firms to improve package designs.
a. True
b. False
28. A brand is said to have high relevance if a large number of consumers feel the need for the benefits offered
by the brand.
a. True
b. False
29. The classification system for business products emphasizes customer buying behavior rather than product
uses.
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a. True
b. False
30. Makers of generic products are dependent on brand loyalty for their marketing success.
a. True
b. False
31. Food and household staples are common categories of generic products.
a. True
b. False
32. Brand preference is the stage of brand loyalty at which consumers rely on previous experience with a
branded product when choosing it, if available, over competitors’ products.
a. True
b. False
33. An automated teller machine (ATM) is an example of a convenience service.
a. True
b. False
34. In contrast to the purchase of shopping products, consumers buy convenience products only after comparing
competing offerings on such characteristics as price, quality, style, and color.
a. True
b. False
35. Internet security software that requires periodic updates and annual product upgrades is considered a pure
service on the goods–services continuum.
a. True
b. False
36. Manufacturers’ brands are also called national brands.
a. True
b. False
37. Brands with high equity often command comparatively large market shares.
a. True
b. False
38. Installations are major capital investments in the B2B markets such as customized software and heavy
machinery.
a. True
b. False
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39. Providers can maintain inventories of their services.
a. True
b. False
40. Convenience of location is unimportant to a consumer who wants to buy a specialty product.
a. True
b. False
41. Small manufacturers usually assign a category manager to each major channel such as grocery stores or
drugstores, instead of each retail chain.
a. True
b. False
42. Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.
a. True
b. False
43. A dinner at an exclusive restaurant is a pure good.
a. True
b. False
44. Brand extension is the strategy of developing individual offerings that appeal to different market segments
while remaining closely related to the existing product line.
a. True
b. False
45. A line extension involves the addition of new sizes, styles, flavors, or related products to an existing group
of products.
a. True
b. False
46. Tide laundry detergent commands an extremely high market share. Purchasers of the product are extremely
less sensitive to price changes. Based on this assessment, it can be said that Tide has high brand equity.
a. True
b. False
47. As consumers devote little effort to convenience product purchase decisions, marketers must strive to make
these exchanges as simple as possible.
a. True
b. False
48. A national brand defines the image most people form when they think of a brand.
a. True
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b. False
49. Line extension is the strategy of attaching unrelated products to a known brand name to gain instant
recognition for the new offerings.
a. True
b. False
50. Companies that offer mass-marketed goods and services are more likely to achieve monopoly position with
their customers compared to those companies that manufacture luxury products.
a. True
b. False
51. Once consumers have used a product, seen it advertised, or noticed it in a store, it moves from the unknown
to the known category, which increases the probability that they will purchase it.
a. True
b. False
52. Brand names should contain words or phrases in general use, so that it is easier for the consumers to
pronounce, recognize, and remember the brand names.
a. True
b. False
53. The market shares for generic products generally increase during economic downturns but usually decrease
when the economy improves.
a. True
b. False
54. The purchaser of a shopping product lacks complete information prior to the buying trip and gathers
information during the buying process.
a. True
b. False
55. A strong brand identity can contribute to the consumers’ perceptions of product quality.
a. True
b. False
56. A market penetration strategy seeks to increase sales of existing products in existing markets.
a. True
b. False
57. Extensive planning time is required for the purchase of supplies.
a. True
b. False
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58. Brand recognition is the ultimate stage in brand loyalty that leads consumers to refuse alternatives and
search extensively for the desired merchandise.
a. True
b. False
59. Firms can receive trademark protection only for the brand name and brand mark and not for the product
features or packaging elements.
a. True
b. False
60. Marketing accessory equipment requires continuous representation and dealing with the widespread
geographic dispersion of purchasers.
a. True
b. False
61. Shopping products typically cost less than convenience purchases.
a. True
b. False
62. A career counseling session is an example of a pure service on the goods–services continuum.
a. True
b. False
63. The seller’s image is very important for those marketers who sell convenience products.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
64. In the context of business products, office stationery will fall under the category of:
a. installations.
b. shopping products.
c. supplies.
d. accessory equipment.
65. Which of the following business products would be classified as an installation?
a. Paper clips
b. Office filing cabinets
c. Liquid inkjet printers
d. Underground mining loaders
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66. The term _____ is used by marketers to refer to the visual components that contribute to the overall look of a
brand.
a. water mark
b. brand token
c. service mark
d. trade dress
67. Which of the following is true of generic products?
a. They are identified through a brand name owned by a wholesaler or retailer.
b. They are identified through a brand name owned by a manufacturer or other producer.
c. They are well known national brands sold exclusively through a joint venture between a manufacturer
and a retailer.
d. They are characterized by plain labels, little or no advertising, and no brand names.
68. A popular clothing brand in Switzerland decided to launch a new line of home furniture under the same
brand name. This strategy being used by the company to launch its new offerings is called _____.
a. line engagement
b. brand reinforcement
c. line extension
d. brand extension
69. Beaux, a clothing boutique store, specializes in high-end evening wear for women. Most of the dresses are
custom-made for their elite customers. Beaux is an example of a store offering _____ products.
a. impulse
b. convenience
c. shopping
d. specialty
70. Based on the Young & Rubicam’s BrandAsset Valuator model, _____ is a dimension of brand personality
that refers to a brand’s ability to stand apart from competitors.
a. knowledge
b. differentiation
c. relevance
d. competence
71. The _____ stage in brand loyalty leads consumers to refuse alternatives and search extensively for the
desired merchandise.
a. brand recognition
b. brand insistence
c. brand awareness
d. brand preference
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72. You work for a drug company and have been asked to advise company executives about the manufacturing
of generic versus branded pharmaceuticals. Which of the following arguments could you use if you were trying
to convince the executives that branded drugs are the way to go?
a. Generic brands are easier to locate.
b. Brand-name drugs cost less to manufacture.
c. It costs more to market generic brands.
d. Brand-name drugs are chemically identical to generic drugs.
e. Customers sometimes feel more secure about purchasing brand-name drugs.
73. Asmeret works as a hotel manager for a popular family resort and casino in Atlantic City, New Jersey.
During the summer, hotel managers aim for an occupancy rate of at least 85% to ensure that overhead costs are
covered. The resort is known for its quality services; guests generally return an average of three times during
the summer and use their rewards and loyalty cards during their stays. On this particular day, Asmeret is quite
stressed because the occupancy rate is only 65%. If the hotel fails to sell at least an additional 20% of the
available rooms, she might be in some trouble.
Required:
Which aspect of a service is best illustrated in the scenario?
a. Services are perishable.
b. Service standards show wide variation.
c. Services are inseparable from service providers.
d. Companies cannot easily standardize the services they provide.
e. Buyers play an important role in the creation and distribution of services.
74. Celwyn works for a cosmetics company known for its anti-animal testing policies. Recently, however, a
reputable newspaper reported that the company had tested their newest line of blush on rabbits.
Which of the following statements is most likely true about the company?
a. The company’s customers will become even more loyal.
b. The company’s relevance will increase as a result of this news report.
c. The company’s esteem will decrease as a result of this news report.
d. The company will become less differentiated from other cosmetics brands.
e. The company’s esteem will increase as a result of the coverage by a reputable newspaper.
75. Through your market research, you know that skiers who buy your brand of ski gloves rely on previous experiences
with the product before choosing it over alternatives. Your ski glove has reached the _____ stage of brand loyalty.
a. recognition
b. preference
c. insistence
d. ski use
e. ski reference
76. Which of the following can be classified as an accessory equipment?
a. Natural gas pipelines
b. Bottling units
c. Desktop computers
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d. Printer cartridges
77. Using the consumer products classification system, which of the following is true of the marketing mix
factors for a convenience product?
a. It is generally high priced.
b. The seller’s image is very important.
c. It has a long distribution channel.
d. Its number of sales outlets tends to be very few.
78. A _____ is a brand for which the owner claims exclusive legal protection.
a. water mark
b. field symbol
c. trademark
d. category code
79. Which of the following terms refers to the development of individual offerings that appeal to different
market segments while remaining closely related to the existing product line?
a. Line penetration
b. Line innovation
c. Line extension
d. Line cannibalization
80. Which of the following consists of intangible products that firms buy to facilitate their production and
operating processes?
a. Installations
b. Accessories
c. Business services
d. Operating supplies
81. A characteristic of a good brand name is that it should:
a. avoid giving buyers the correct connotation of the product’s image.
b. be easy to recognize and remember.
c. always be an acronym.
d. be difficult to pronounce.
82. Which of the following factors has helped increase the importance of packaging as a marketing tool?
a. Marketers’ emphasis on targeting large market segments
b. Increased popularity of generic products
c. Changes in consumer lifestyles and buying habits
d. Global economic recessive trends
83. A _____ brand refers to a brand name owned by a manufacturer or a producer.
a. private
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b. generic
c. national
d. captive
84. Sound systems, batteries, and tires that are included in the manufacturing of a car are examples of:
a. installations.
b. accessory equipment.
c. component parts and materials.
d. supplies.
85. Finished business products of one producer that become part of the final products of another producer are
called _____.
a. installations
b. accessory equipment
c. supplies
d. component parts and materials
86. The leaping jaguar symbol, featured on cars of a particular brand, is a part of the brand’s:
a. service mark.
b. trade dress.
c. watermark.
d. trade token.
87. Using the consumer products classification system, which of the following is most likely to be true of the
consumer factors for specialty products?
a. Consumers tend to purchase specialty products frequently.
b. Consumers always compare price and quality between competing products.
c. Consumers tend to regard convenience of location as very important.
d. Consumers tend to plan extensively before buying them.
88. Bubbles, a major player in the beverage industry, is currently negotiating the purchase of a purification plant
and a bottling unit. This is an important investment for Bubbles and the products have been designed
specifically for them. Which of the following types of products is being purchased by Bubbles?
a. Accessory equipment
b. Installations
c. Component parts and materials
d. Supplies
89. Using the consumer products classification system, which of the following is true of the marketing mix
factors for a specialty product?
a. It generally has low price.
b. The seller’s image is unimportant.
c. Its number of sales outlets tends to be very high.
d. It relies on personal selling by producers.
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90. Sam is a sales representative with Stepan, a global chemical supplier with manufacturing operations around
the globe. Sam is based in the Midwest and Procter and Gamble is one of his accounts. Stepan is known as a
quality producer of surfactants which are utilized by companies like Procter and Gamble to make their products
work better. For example, Procter and Gamble utilizes surfactants in Tide detergent in order to get clothes
cleaner and separate the “cleaning agent” from the water. Stepan produces their surfactant as one of their
“finished products” but when added to Tide detergent, the surfactant from Stepan becomes a final product of
Procter and Gamble. Which type of business product are Stepan’s surfactants?
a. component parts and materials
b. raw materials
c. supplies
d. accessory equipment
91. Which of the following products is most likely to achieve the status of brand insistence?
a. Cars
b. Soaps
c. Milk
d. Toothpastes
92. Convenience products that customers constantly replenish to maintain a ready inventory are categorized as:
a. staples.
b. impulse goods.
c. emergency goods.
d. shopping products.
93. Using the consumer products classification system, which of the following is most likely to be true of the
consumer factors for convenience products?
a. Consumers tend to purchase convenience products frequently.
b. Consumers tend to plan extensively before purchase.
c. Consumers tend to regard convenience of location as unimportant.
d. Consumers tend to compare price and quality between competing products.
94. The strategy of attaching a popular brand name to a new product in an unrelated product category is known
as _____.
a. brand licensing
b. brand reinforcement
c. brand engagement
d. brand extension
95. A company has introduced a new product in the market. The company distributes free samples of this
product to people so that they can try it. This product is at the _____ stage of brand loyalty.
a. brand insistence
b. brand association
c. brand preference
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d. brand recognition
96. Which of the following comes closest to providing a pure good?
a. A company that manufactures elevators
b. A laundry
c. A fitness gym
d. An advertising agency
97. Which of the following is true of services?
a. Services are tangible.
b. Services are inseparable from service providers.
c. Companies can easily standardize services.
d. Services are nonperishable.
98. A product is said to have achieved brand preference when:
a. the product becomes familiar to the consumer.
b. the marketers start selling the product at a discount.
c. the consumer sees or recognizes the product and chooses it over its competitors.
d. the product has attained monopoly position with its customers.
99. A _____ is a symbol or a pictorial design that distinguishes a product from its competitors’ offerings.
a. brand dress
b. water mark
c. brand mark
d. category tag
100. You work for the purchasing department of an up-and-coming eco-friendly fashion manufacturer, and have
been asked to ensure that you have ordered enough raw materials for the pieces in the fall collection. The fall
collections will feature plant-based T-shirts embellished with fancy stitching.
Required:
Which of the following combination of items should you order?
a. T-shirts, bamboo, and thread
b. Buttons, T-shirts, and thread
c. Buttons, thread, and bamboo
d. Bamboo, thread, and sewing machines
e. T-shirts, sewing machines, and buttons
101. International Business Machines decided to brand its products under its acronym IBM. From a marketing
perspective, this was a smart idea because as a brand name, IBM:
a. is easy to pronounce, recognize, and remember.
b. is easy to translate into any language.
c. accurately describes the products it manufactures.
d. can easily be expanded to suit innovative advertising campaigns.
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102. The Kirkland brand is owned by Costco, and the products can only be purchased at Costco stores. Costco
contracts with manufacturers to produce and package products under the Kirkland name. Kirkland can be
regarded as a(n):
a. family brand.
b. individual brand.
c. generic brand.
d. private brand.
103. Dayer’s, a popular ice-cream brand, added new flavors to its existing line of ice creams to attract kids. This
is an example of _____.
a. brand extension
b. line extension
c. brand engagement
d. line engagement
104. The added value that a certain brand name gives to a product in the marketplace is called _____.
a. brand identity
b. brand relevance
c. brand recognition
d. brand equity
105. As a marketer tasked with developing the packaging of the food products your company makes, you are
concerned with all of the following except:
a. leakproof seals.
b. packaging to prevent shoplifting.
c. utensils used to eat the product.
d. tamper-resistant packaging.
e. cost effectiveness.
106. According to the Young & Rubicam’s BrandAsset Valuator model, the _____ dimension of a brand
personality is a combination of perceived quality and consumer perceptions about its growing or declining
popularity.
a. differentiation
b. relevance
c. esteem
d. knowledge
107. Kiddie Car Inc. offers transportation between home, school, and activities to children whose parents are unavailable
to drive them. The company charges much less on weekends than during the week. This reflects the ______ of Kiddie
Car’s services.
a. Intangibility
b. Perishability
c. Inseparability
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d. Standardization
e. Positioning
108. Richard generally frequented Brewz, a coffeehouse chain, when he was in Florida. However, when his
company transferred him to China, he found that the Brewz in Shanghai does not offer the same quality service
as their coffee houses in Florida. Which of the following best explains this differential perception in service
quality?
a. Companies cannot easily standardize services.
b. Buyers often play important roles in the creation and distribution of services.
c. Services are perishable and intangible.
d. Providers cannot make inventories of their services.
109. Shopping products are:
a. products that consumers purchase after comparing competing offers.
b. products with unique characteristics that cause buyers to prize those brands.
c. products bought in response to unexpected and urgent needs.
d. products purchased on the spur of the moment.
110. Which of the following tasks least describes the role of a brand manager?
a. Making the product relevant to its target market
b. Protecting the company’s trademark and brand
c. Ensuring that products are perceived as high in quality
d. Offering opportunities to enhance consumer brand loyalty
e. Being familiar with the kinds of emotions that push consumers to buy
111. Nivea works for Bonbon, a fair-trade chocolate company based in California. In addition to being
recognized for the delicious, low fat treats the company manufactures, Bonbon is also known for fair labor
practices at its factories. When interviewed, 83% of the company’s loyal customers said when they couldn’t find
Bonbon products for purchase in local stores, they ordered them online rather than buy substitute products.
Which type of brand loyalty is illustrated here?
a. Brand insistence
b. Brand preference
c. Brand recognition
d. Brand name
e. Brand competition
112. Procter and Gamble offers several varieties of Tide liquid detergent for high efficiency washers. It recently
added a “Sport” formulation plus Febreeze targeted to active consumers who have noticed that sports apparel
such as dri-fit shirts are difficult to clean. The “Sport” formulation represents a(n):
a. line extension.
b. product fabrication.
c. novelty product.
d. evolved product.
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113. When Tom decided to buy a washing machine, he had very little knowledge of competing products in the
market. He did research on the Internet, talked to his friends, and compared features of different models.
Finally, he decided to buy an LG top load, semi-automatic washing machine. This is an example of buying a(n)
_____.
a. shopping product
b. staple
c. convenience product
d. specialty product
114. Natural resources, farm produce, and lumber constitute _____.
a. raw materials
b. accessory equipment
c. component parts and materials
d. installations
115. Dave is a consultant who advises manufacturers on issues related to maintenance, repair, and operations in their
factories. Dave supplies a(n):
a. MRO product
b. Business service
c. Internal service
d. Collaborative service
e. Component service
116. Supermarkets usually display items such as candies, gums, and magazines near the checkout counter
because:
a. they tend to be purchased on the spur of the moment.
b. they can be replenished easily on short notice.
c. of the prestige associated with their ownership.
d. they are closely evaluated prior to purchase.
117. According to the Young & Rubicam’s BrandAsset Valuator model, brand relevance is a dimension of brand
personality that refers to:
a. the extent of consumer awareness of a brand and understanding of what kind of product it stands for.
b. the real and perceived appropriateness of a brand to a big consumer segment.
c. the way in which brand equity is assigned to the brand by evaluating institutions.
d. a brand’s ability to stand apart from competitors.
118. Which of the following comes closest to providing pure service?
a. A retail store
b. An automobile dealership
c. A coffee shop
d. A fitness gym