77) In the aftermath of a crippling recession, luxury for many has become more about style and
substance, combining personal pleasure and self-expression.
78) What are the key guidelines for managing luxury brands?
79) Which company launched Eco-Fina packaging for its water?
A) PepsiCo
B) Coca-Cola
C) SodaStream
D) PURE
E) Sigg Switzerland
80) ________ found a highly creative way to address the problem of proliferating plastic bottles
with its “Waste<Less” line and helped farmers grow cotton with less water for its “Water<Less”
line.
A) Calvin Klein
B) Ralph Lauren
C) Ferragamo
D) Levi-Strauss
E) Roberto Cavalli
81) Environmental concerns matter to consumers, and they expect companies to make changes to
address their concerns.
82) Colleges all over the country — from Western Washington University to Brown University,
the University of Vermont, and the University of California at Berkeley — are encouraging the
sale of plain bottled water.
83) 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
84) A(n) ________ is defined as a distinct unit within a brand or product line distinguishable by
size, price, appearance, or some other attribute.
A) stock-keeping unit
B) inventory turn
C) individual brand
D) product type
E) brand line
85) 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
86) 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
87) 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
88) 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
89) 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
90) 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
91) 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
92) 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
93) 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
94) 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
95) 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
96) 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
97) 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
98) 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
99) 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
100) 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(n) ________ 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
101) 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
102) If line filling is overdone, it could result in ________ and customer confusion.
A) sales paralysis
B) manufacturing inefficiencies
C) cannibalization
D) disintermediation
E) ineffective management
103) 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) is ineffective on total
B) has no effect on total
C) maximizes
D) minimizes
E) capitalizes upon
104) 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
105) 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
106) 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
107) 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
108) Purchasers of theatre tickets receive a 20 percent 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
109) When Mercedes successfully introduced its C-Class cars at $30,000 without injuring its
ability to sell other Mercedes cars for $100,000, it was an example of a successful ________.
A) two-way stretch
B) line pruning
C) down-market stretch
D) up-market stretch
E) choice reduction
110) Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high
markup on the replacement razor blades that fit in the handles.
A) optional feature
B) two-part
C) by-product
D) product line
E) captive-product
111) The product hierarchy stretches from basic needs to particular items that satisfy those
needs.
112) 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.
113) The four product-mix dimensions (length, width, depth, consistency) permit the company to
expand its business.
114) The product-line length can be obtained by averaging the number of variants within the
brand groups.
115) Every company’s product line covers a certain part of the total possible range of products
and consumer levels.
116) Companies in the “middle market” should never attempt to stretch their line in both
directions.
117) Line filling, if overdone, may result in self-cannibalization and increased customer loyalty.
118) In the rapidly changing market of today’s world, product lines must be continuously
updated or modernized.
119) Price-setting logic must be modified when the product is part of a product mix.
120) Companies normally develop product lines rather than a single product and introduce price
steps such as a low-, average-, and high-priced computer system.