Marketing Management, 14e (Kotler/Keller)
Chapter 12 Setting Product Strategy
1) A ________ is anything that can be offered to a market to satisfy a want or need, including
physical goods, services, experiences, events, persons, places, properties, organizations,
information, and ideas.
A) function
B) product
C) benefit
D) process
E) structure
2) A customer judges a product offering by three basic elements: product features and quality,
services mix and quality, and ________.
A) performance
B) utility
C) tangibility
D) price
E) availability
3) The five product levels constitute a ________. At each level more customer value is added.
A) product line
B) business model
C) customer value-hierarchy
D) value grid
E) demand chain
4) When companies search for new ways to satisfy customers and distinguish their offering from
others, they look at the ________ product, which encompasses all the possible augmentations
and transformations of the product.
A) consumption
B) expected
C) potential
D) augmented
E) basic
5) The way the user performs the tasks of getting and using products and related services is the
user’s total ________.
A) consumption system
B) consumable system
C) consistent use system
D) augmented system
E) potential system
6) Marketers must see themselves as benefit providers. For example, when a shopper purchases
new shoes, he/she expects the shoes to cover his/her feet and allow him/her to walk
unobstructed. This is an example of what level in the consumer-value hierarchy?
A) pure tangible good
B) basic product
C) augmented product
D) potential product
E) generic product
7) How a consumer shops for organic foods and how he or she uses and disposes of the product
is part of the consumers’ ________ that is important for marketers to consider.
A) value proposition
B) consumption system
C) value system
D) quality perception
E) value chain
8) The sellers of ________ goods carry a wide assortment to satisfy individual tastes and must
have well-trained salespeople to inform and advise customers.
A) unsought
B) specialty
C) convenience
D) heterogeneous shopping
E) generic
9) Marketers have traditionally classified products on the basis of three characteristics:
________, tangibility, and use.
A) availability
B) affordability
C) aesthetics
D) durability
E) necessity
10) Which of the following are tangible goods that normally survive many uses?
A) generic goods
B) durable goods
C) core benefits
D) convenience goods
E) unsought goods
11) Because ________ are purchased frequently, marketers should make them available in many
locations, charge only a small markup, and advertise heavily to induce trial and build preference.
A) nondurable goods
B) durable goods
C) services
D) unsought goods
E) specialty goods
12) What types of goods are purchased frequently, immediately, and with minimum effort by the
consumers?
A) specialty goods
B) shopping goods
C) unsought goods
D) durable goods
E) convenience goods
13) It was sunny when Jenny went to class, but by the time class was over it was raining heavily,
so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In
this case, the umbrella is an example of a(n) ________.
A) impulse good
B) specialty good
C) homogeneous shopping good
D) emergency good
E) heterogeneous shopping good
14) What goods are similar in quality but different enough in price to justify shopping
comparisons?
A) emergency goods
B) homogeneous shopping goods
C) heterogeneous shopping goods
D) specialty goods
E) convenience goods
15) Products such as insurance, cemetery plots, and smoke detectors are examples of ________
that are products that the consumer does not know about or does not normally think of buying.
A) specialty goods
B) unsought goods
C) heterogeneous shopping goods
D) homogeneous shopping goods
E) convenience goods
16) Industrial goods can be classified as ________, capital items, or suppliers and business
services based on their relative cost and how they enter the production process.
A) service components
B) sub-assemblies
C) accessories
D) specialty goods
E) materials and parts
17) ________ are the major factors influencing the selection of suppliers for natural products.
A) Price and delivery reliability
B) Product features and customization
C) Price and customization
D) Delivery reliability and product features
E) Customization and delivery reliability
18) Capital items are long-lasting goods that facilitate developing or managing the finished
product. They include two groups: installations and ________.
A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials
19) The two kinds of supplies with respect to industrial goods classification are maintenance and
repair items, and ________.
A) installations
B) operating supplies
C) processed materials
D) component materials
E) equipment
20) ________ are major purchases and are usually bought directly from the producer with the
typical sale preceded by long negotiation periods.
A) Raw materials
B) Materials and parts
C) Processed materials
D) Capital goods
E) Installations
21) Most products are established at one of four performance levels: low, average, high, or
superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a
consumer purchases a mountain bike costing $1,000, she/he expects the bike to perform to
specifications and to have a high ________ meeting the promised specifications.
A) features
B) conformance quality
C) durability
D) performance quality
E) reliability
22) Many products can be differentiated in terms of their ________, which is its size, shape, or
physical structure.
A) form
B) prototype
C) architecture
D) model
E) blueprint
23) ________ is the ability of a company to prepare on a large-scale basis individually designed
products, services, programs, and communications.
A) Mass customization
B) Reverse engineering
C) Interoperability
D) Backward compatibility
E) Benchmarking
24) ________ is the level at which the product’s primary characteristics operate.
A) Design
B) Conformance quality
C) Reparability
D) Performance quality
E) Durability
25) Buyers expect products to have high ________, which is the degree to which all the
produced units are identical and meet the promised specifications.
A) durability
B) compatibility
C) conformance quality
D) form
E) performance quality
26) Most products can be offered with varying ________ that can supplement its basic function.
A) degrees of reliability
B) conformance qualities
C) features
D) forms
E) designs
27) If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every
Ford GT coming off the assembly line does this, the model is said to have high ________.
A) reliability
B) conformance quality
C) durability
D) compatibility
E) interoperability
28) ________ describes the product’s look and feel to the buyer; it has an advantage of creating
distinctiveness that is difficult to copy.
A) Design
B) Style
C) Durability
D) Conformance
E) Reliability
29) Ideal ________ would exist if users could fix the product themselves with little cost in
money or time.
A) durability
B) reliability
C) style
D) design
E) reparability
30) ________ is a measure of the probability that a product will not malfunction or fail within a
specified time period.
A) Reparability
B) Durability
C) Reliability
D) Specialty
E) Compatibility
31) When the physical product cannot be easily differentiated, the key to competitive success
may lie in adding valued services and improving their quality. The main service differentiators
are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair.
A) technology intensity
B) responsivity
C) ease of use
D) customer training
E) adaptability
32) Delivery refers to how well the product or service is brought to the customer. It includes
speed, ________, and care throughout the delivery process.
A) expedience
B) intensity
C) tangibility
D) performance
E) accuracy
33) ________ refers to educating the customer’s employees to use the vendor’s equipment
properly and efficiently.
A) Customer training
B) Open innovation
C) Crowdsourcing
D) Co-development
E) Collaborative research
34) ________ refers to data, information systems, and advice services that the seller offers to
their buyers.
A) Sales force relationships
B) Customer relationships
C) Open source technology
D) Customer training
E) Customer consulting
35) Differentiating on ________ is important for companies with complex products and becomes
an especially good selling point when targeting technology novices.
A) delivery
B) ordering ease
C) ease of installation
D) customer consulting
E) reparability
36) ________ describes the service program for helping customers keep purchased products in
good working order.
A) Returns
B) Ordering ease
C) Installation
D) Maintenance and repair
E) Delivery
37) Which of the following actions would result in the elimination of uncontrollable returns of
products in the short run?
A) improved handling
B) better packaging
C) improved transportation
D) proper storage
E) cannot be eliminated
38) Smith & Adams Poultry has recently upgraded its transactional model such that its customers
(restaurants and hotels) can communicate with its central supply system to indicate purchase
volumes, dates, and receive confirmation, through their computer terminals. This is an example
of a company differentiating itself versus competition in terms of ________.
A) customer relationships
B) customer training
C) installation
D) delivery ease
E) ordering ease
39) Realizing that although household products is a huge category, taking up an entire
supermarket aisle or more, it is an incredibly boring one, the founders of Method Products
designed a sleek, uncluttered dish soap container that also carried functional advantages, such as
ease of dispensing soap and cleaning. Method is competing in the crowded market for household
products on the basis of superior ________.
A) design
B) durability
C) conformance
D) reliability
E) performance quality
40) In increasingly fast-paced markets, price and technology are not enough. ________ is the
factor that will often give a company its competitive edge and is defined as the totality of
features that affect how a product looks, feels, and functions in terms of customer requirements.
A) Conformance
B) Design
C) Performance
D) Reliability
E) Style
41) A group of products within a product class that are closely related because they perform a
similar function, are sold to the same customer groups, are marketed through the same outlets or
channels, or fall within given price ranges is known as a ________.
A) product type
B) product class
C) need family
D) product variant
E) product line
42) A(n) ________ is defined as a distinct unit within a brand or product line distinguishable by
size, price, appearance, or some other attribute.
A) stockkeeping unit
B) inventory turn
C) individual brand
D) product type
E) brand line
43) A ________ is the set of all products and items a particular seller offers for sale.
A) product line
B) product mix
C) product extension
D) product system
E) product class
44) Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and
paper products. This company has a product ________ of five lines.
A) type
B) length
C) class
D) mix
E) width
45) Using the ________ level of the product hierarchy to market its soups, Campbell Soups
feature the company name first, then the soup variety on their packaging.
A) product class
B) product-type
C) need-family
D) product-family
E) product-line
46) A consumer products firm manufactures and sells over 200 different sizes and varieties of
jams and jellies. We can say that this manufacturer’s product mix has high ________.
A) consistency
B) depth
C) intensity
D) range
E) width
47) The ________ of the product mix refers to how closely related the various product lines are
in end use, production requirements, distribution channels, or some other way.
A) consistency
B) depth
C) width
D) length
E) composition
48) The ________ of the product mix refers to the total number of items in the mix.
A) width
B) length
C) depth
D) breadth
E) range
49) In offering a product line, companies normally develop a ________ and modules that can be
added to meet different customer requirements.
A) convenience item
B) flagship product
C) staple item
D) potential product
E) basic platform
50) The ________ of a product mix refers to how many variants are offered of each product in
the line.
A) width
B) length
C) depth
D) consistency
E) height
51) 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
52) Product-line analysis provides information for two key decision areas product-line length
and ________.
A) product-class composition
B) product-mix pricing
C) product pricing
D) popular pricing
E) product need family
53) 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
54) 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
55) 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
56) 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
57) 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
58) Marriott Corporation now contains hotels and motels from the “budget” end of the consumer
spectrum to the “premium” end with their JD Marriott flagship locations. This is an example of a
firm that successfully performed a ________ to reach more consumers and ventures that are
more profitable.
A) upstream integration
B) two-way stretch
C) up-market stretch
D) down-market stretch
E) downstream integration
59) 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
60) If line filling is overdone, it could result in ________ and customer confusion.
A) sales paralysis
B) manufacturing inefficiencies
C) self-cannibalization
D) disintermediation
E) ineffective management
61) 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
62) 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
63) When shopping for tires for your automobile, you notice that the manufacturer you have
selected has tires for your car priced low, average, and high, based upon performance and
features. This is an example of what type of product-mix pricing?
A) two-part pricing
B) product-line pricing
C) captive product pricing
D) market pricing skimming
E) price discrimination
64) 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
65) 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