66) Purchasers of theatre tickets receive a 20% discount if they purchase and pay for the full
season at one time. This is an example of what type of product-mix pricing?
A) mixed bundling
B) pure bundling
C) cross-promotion
D) captive pricing
E) two-part pricing
67) McDonald’s restaurants inside Wal-Marts and Starbucks inside Super Targets are examples
of ________, whose main advantages are that the products can or may be convincingly
positioned by virtue of the associated brands.
A) cooperative marketing
B) cross-promotion
C) retail co-branding
D) ingredient branding
E) feature promotion
68) Betty Crocker cake mixes using Hershey syrup in its cake mixes and “Lunchables” lunch
combinations with Taco Bell tacos are examples of what special type of branding?
A) family branding
B) ingredient co-branding
C) co-branding
D) generic-branding
E) individual branding
69) The main advantage of co-branding is that a product may be convincingly positioned by
virtue of the ________ involved.
A) branding synergy
B) increased advertising dollars
C) multiple brands
D) bundled package
E) pure bundling
70) The potential disadvantages of ________ are the risks and lack of control from becoming
aligned with another brand in the consumers mind. Consumer expectations about the level of
involvement and commitment are likely to be high, so unsatisfactory performance could be very
negative for the brands involved.
A) co-branding
B) cannibalization
C) vertical integration
D) disintermediation
E) brand stretching
71) ________ is a special case of co-branding involving creating brand equity for materials,
components, or parts that are necessarily contained within other branded products.
A) Cross-branding
B) Ingredient branding
C) Equity branding
D) Family branding
E) Generic branding
72) We define packaging as all the activities of designing and producing the container for a
product. This includes up to three levels of material: primary package, secondary package, and
________.
A) retailer package
B) design package
C) shipping package
D) consumer package
E) supplier package
73) Sales of luxury goods such as perfumes, colognes, and aftershaves depend heavily upon their
initial response by the consumer. A well-designed package can create convenience and
promotional value. It has been called the “silent salesman.” Which of the three levels of
packaging is this “silent salesman”?
A) retailer
B) consumer
C) shipping
D) secondary
E) primary
74) Which of the following factors is one of the contributors to the growing use of packaging as
a marketing tool?
A) consumption aid
B) consumer affluence
C) consumer influence
D) conformance qualities
E) brand identification
75) ________ are formal statements of expected product performance by the manufacturer.
A) Insurance
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets
76) Many sellers offer either general or specific guarantees. Guarantees reduce the buyer’s
________ risk.
A) actual
B) perceived
C) real
D) implied
E) stated
77) Guarantees are most effective in two situations. The first is when the company or products
are not well known and the second is when the product’s quality is ________ to competition.
A) not known
B) different
C) inferior
D) equivalent
E) superior
78) A new product is advertised on the “infomercials” as being “the best cleaner money can buy”
and “if not completely satisfied, return the product for a full refund, including shipping.” The
strategy of using a strong guarantee in this instance is sound because ________.
A) it is an example of a misleading or false advertising and is illegal
B) the product is so superior to competition that there will be no claims for refunds
C) it is just “advertising fluff” and the manufacturer has no intentions of refunding money
D) for a product that is not too well known, it is “good advertising” because the claims will be a
small percentage of sales
E) for a product that is not too well known it reduces the buyer’s risk in purchasing
79) Marketing planning begins with formulating an offering to meet target customers’ needs or
wants.
80) A product is anything that can be offered to a market to satisfy a want or need.
81) In planning its market offering, the marketer needs to address five product levels, each of
which reduces customer value.
82) The customer-value hierarchy consists of the basic product, core benefit, expected product,
augmented product, and the consumption system.
83) Marketers have traditionally classified products on the basis of characteristics such as
durability, tangibility, and use.
84) Durable products normally require less personal selling and service and less seller guarantees
than nondurable goods.
85) Because they are intangible, durable goods normally require more quality control, supplier
credibility, and adaptability than either services or nondurable goods.
86) Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and
milk are examples of impulse goods.
87) A Maserati sports car is considered a convenience good because interested buyers will travel
far to buy one.
88) The homogeneity of natural materials limits the amount of demand-creation activity that
producers undertake.
89) Capital items are long-lasting goods that facilitate developing or managing the finished
products.
90) Supplies can be classified as two kinds: heterogenous supplies and homogeneous supplies.
91) To be branded, physical products need not be differentiated.
92) To avoid “feature fatigue,” companies must be careful to prioritize those features that are
included and find unobtrusive ways to provide information about how consumers can use and
benefit from the feature.
93) Firms should design the highest performance level possible for their products.
94) As a selling point, durability commands a particularly high pricing premium, especially for
products that are subject to rapid technological obsolescence, as are personal computers and
video cameras.
95) If the physical product cannot be easily differentiated, the key to competitive advantage lies
in the pricing of the related “services” provided by the manufacturer.
96) Customer training and customer consulting are two areas for service differentiation that
manufacturers can use with their products.
97) The cost of processing a return can be significantly greater than that of an outbound
shipment.
98) Design can shift consumer perceptions to make brand experiences more rewarding.
99) The product hierarchy stretches from basic needs to particular items that satisfy those needs.
100) A product system is a group of diverse and unrelated items that does not function in a
compatible manner and includes the product mix and product assortment.
101) The four product-mix dimensions (length, width, depth, consistency) permit the company to
expand its business.
102) The product-line length can be obtained by averaging the number of variants within the
brand groups.
103) Every company’s product line covers a certain part of the total possible range of products
and consumer levels.
104) Companies in the “middle market” should never attempt to stretch their line in both
directions.
105) Line filling, if overdone, may result in self-cannibalization and increased customer loyalty.
106) In the rapidly changing market of today’s world, product lines must be continuously
updated or modernized.
107) Price-setting logic must be modified when the product is part of a product mix.
108) Companies normally develop product lines rather than a single product and introduce price
steps such as a “low-,” “average-,” and “high-” priced computer system.
109) Manufacturers of systems such as razors and ink jet printers use a system of pricing called
“two-part pricing” one price for the disposable products and another for the “hardware.”
110) A pricing system in which there is a “fixed” fee and then a variable “usage” fee is called
bundling.
111) Pure bundling occurs when a firm offers goods both individually and in bundles.
112) Co-branding is when two or more well-known existing brands are combined into a joint
product and/or marketed together in some fashion.
113) Ingredient branding can take on a form called “self-branding” in which the company
advertises its own branded ingredients.
114) Packaging is all the activities of designing and producing the container for a product.
115) Labels can identify the product and must contain legal statements that under various Federal
laws cannot be misleading, false, or deceptive.
116) Warranties are formal statements of expected product performance by the manufacturer.
117) A guarantee’s greatest contribution to a product’s success is that it decreases the buyer’s
perceived risk in the purchase of the product.
118) Guarantees are most effective when the product is well known and/or similar in
performance to other brands in the market.
119) In planning its market offering, the marketer must address the five product levels of the
customer-value hierarchy. Describe the “customer-value hierarchy” and identify the five levels of
product contained within.
120) The vast array of products that consumers buy can be classified on the basis of shopping
habits and are broken down into four main areas. List these four main classifications of consumer
goods and explain what elements are included within.
121) You know that marketers have traditionally classified products based on characteristics of
durability, tangibility, and use. You also know that each product type has an appropriate
marketing-mix strategy attached. In analyzing your company’s products, you decide to list each
of these products and the appropriate marketing-mix strategy to understand where your products
“fit.” List these products and their appropriate marketing-mix strategies.
122) Industrial goods can be classified in terms of how they enter the production process and
their relative costliness. Identify the three groups of industrial goods.
123) Describe the six main service differentiators.
124) Distinguish between controllable returns and uncontrollable returns.
125) What is the significance of design for a company’s products and services? What are the
advantages of a good design?
126) Explain the concepts of product-mix width, length, depth, and consistency.
127) Product-mix pricing can involve a number of pricing strategies for the brand manager. List
each of these strategies and briefly define each.
128) Various factors have contributed to the increased importance of packaging as a marketing
tool. List and briefly describe these events.
129) A manufacturer is contemplating introducing a product that is inferior to its competition in
its performance, design, and functionality. However, the manufacturer believes that “good brand
marketing” can overcome these shortfalls. Why is this thinking incorrect?
130) Studying how consumers shop, how they use a particular product or service, and how they
dispose of the product when consumed is important for marketers. This information forms the
basis of product strategy. Define the consumption system and identify the two upcoming product
strategies that are affected by this knowledge.
131) Industrial-goods classifications based on terms of how the products enter the production
process and their relative costs include such segments as materials and parts and capital items.
Window cleaning services, consumable office supplies, personal computers, desks, paint, nails,
and buckets are included in the classifications of industrial goods. List the other “classifications”
including subclassifications for industrial goods.
132) To be branded, products must be differentiated. List the possible ways that physical
products can be differentiated.
133) In your position as a marketing manager for a small industrial company, you have been
asked by the president to help differentiate the company’s product from its competitors. In
reviewing your marketing management notes, you note that the text stated that physical products
could be differentiated in nine ways. These nine areas comprise the “meat” of the memo you are
writing to the president of your firm. What are the nine ways that physical products can be
differentiated?
134) When a physical product cannot easily be differentiated, the key to competitive success
may lie in adding valued services and improving quality. Identify the six main service
differentiators.
135) You have been asked to create a product system for your company’s personal digital
assistant. Before starting, you must define the term “product system” to the engineers to enable
them to start design and production of the aligned items. Define the concept of a “product
system.”
136) You have been asked to prepare a product-line analysis for your company’s stable of
products. Why is it important for product-line mangers to do a product-line analysis?
137) Explain the concept of line stretching and the three uses for it.
138) As the newest member of the marketing department, your immediate boss asks you to
comment on the company’s proposal to add two new shoes to the company’s middle-of-the-road
pricing and product-line strategies. The first pair will retail for $ 40.00 and has as its target
market the “bargain” shopper. The second pair will retail for $ 200.00 and is targeted at the
“sophisticated shopper.” In relation to product-line strategy, what is the company trying to
accomplish with these two new items?
139) During a meeting, you were asked by the vice-president of marketing, to comment on the
company’s pricing strategy for its products. Recalling your marketing management course in
college, your comments define the six situations involving product-mix pricing. List these six
product-mix pricing strategies.
140) Outline three guidelines for correctly implementing a bundling strategy.
141) As the marketing manager for your firm, you have been approached by your key component
manufacturer suggesting that your two firms “ingredient brand” a new item. What are some of
the requirements for succeeding in ingredient branding?
142) Your research shows that over 53% of all purchases are made on impulse. As you sit down
with your packaging design team, you tell them that the package must communicate many of the
sales tasks. List the sales tasks that packaging must now incorporate due to the increase in self-
service sales.
143) In discussions with the packaging design team, you note that they do not have a firm design
objective for the final package. In an internal memo to your boss, outline the objectives (both
company and consumer orientated) that you wish to see implemented by the design team.
144) Sellers must label their products. Labels serve many purposes beyond just “naming” the
product. List the additional services provided by a product’s label.
145) What is the importance of guarantees?
146) What are the situations in which guarantees are most effective?