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Principles of Marketing, 15e (Kotler/Armstrong)
Chapter 8 Products, Services, and Brands: Building Customer Value
1) Which of the following is true with regard to products?
A) The quality of products is far more difficult to measure than that of services.
B) Products do not include experiences, organizations, persons, places, and ideas.
C) Products are not meant for sale in the market.
D) Products include services, events, persons, places, organizations, ideas, or a mixture of these.
E) Products refer to only those activities that are essentially intangible.
2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for
sale that are essentially intangible and do not result in the ownership of anything.
A) Liabilities
B) Services
C) Brands
D) Consumer products
E) Specialty products
3) Which of the following exemplifies a service?
A) candy
B) laptop
C) retail
D) car
E) laundry detergent
4) Marketing mix planning begins with ________.
A) building an offering that brings value to target customers
B) finding a suitable promotion strategy for the product
C) setting a reasonable price for the product
D) selecting the right channel for distribution of the product
E) calculating the total costs involved in manufacturing the product
5) Which of the following is true with regard to services?
A) Services refer to purely tangible products.
B) Services are a form of product that consists of activities, benefits, or satisfactions offered for
sale.
C) Services can be stored for later use.
D) Services can be easily separated from their providers.
E) Services are tangible product offerings whose quality can be easily measured.
6) Which of the following is an example of a pure tangible good?
A) a laptop with a comprehensive warranty for three years
B) an online shoe retailer that provides free home delivery
C) an agency that offers free legal advice
D) a credit card
E) a bag of potato chips
7) Which of the following product offerings is intangible?
A) a package of laundry detergent
B) an ink cartridge for a printer
C) a wool jacket
D) a gold ring
E) a taxi ride
8) Product planners need to consider products and services on three levels. Each level adds more
customer value. The most basic level is the ________, which addresses the question, "What is
the buyer really buying?"
A) actual product
B) augmented product
C) core customer value
D) co-branding
E) exchange value
9) Product planners need to consider products and services on three levels. At the second level,
product planners must ________.
A) offer additional product support and after-sale services
B) identify the core customer value that consumers seek from the product
C) turn the core benefit into an actual product
D) find out how they can create the most satisfying brand experience
E) define the problem-solving benefits or services that consumers seek
10) Product planners need to consider products and services on three levels. At the final level,
product planners must build ________.
A) an actual product
B) an augmented product
C) core customer value
D) a brand personality
E) a basic product
11) ________ are industrial products.
A) Capital items
B) Specialty products
C) Retail items
D) Shopping products
E) Convenience products
12) Consumer products refer to ________.
A) products purchased by consumers for further processing or for use in conducting a business
B) products and services bought by final consumers for personal consumption
C) primarily intangible offerings from marketers
D) raw materials as well as manufactured materials and parts
E) products that aid in the consumer's production or operations, including installations and
accessory equipment
13) ________ are consumer products and services that customers usually buy frequently,
immediately, and with minimal comparison and buying effort.
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services
14) Which of the following is an example of a convenience product?
A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator
15) ________ are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style.
A) Shopping products
B) Convenience products
C) Unsought products
D) Capital items
E) Supplies and repair services
16) Erica wants to replace her old washing machine with a new one. In order to get the
maximum value for her money, she plans to spend substantial time and effort in gathering
information and making product comparisons before making the actual purchase. In this
instance, Erica is planning to buy a ________ product.
A) convenience
B) unsought
C) specialty
D) shopping
E) exclusive
17) ________ are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special purchase effort.
A) Shopping products
B) Unsought products
C) Specialty products
D) Capital items
E) Convenience products
18) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania
from locally grown wood, is an example of a(n) ________.
A) convenience product
B) capital item
C) specialty product
D) service
E) product attribute
19) ________ are consumer products that the consumer either does not know about or knows
about but does not normally think about buying.
A) Specialty products
B) Convenience products
C) Unsought products
D) Shopping products
E) Capital items
20) ________ are those products purchased for further processing or for use in conducting a
business.
A) Unsought products
B) Specialty products
C) Shopping products
D) Industrial products
E) Convenience products
21) ________ are the major marketing factors in the sale of most manufactured materials and
parts.
A) Branding and advertising
B) Price and service
C) Sales promotion and advertising
D) Branding and packaging
E) Public relations and brand management
22) ________ are industrial products that aid in the buyer's production or operations, including
installations and accessory equipment.
A) Unsought products
B) Convenience products
C) Capital items
D) Specialty items
E) Repair items
23) Installations consist of ________.
A) highly priced luxury goods such as Rolex watches
B) portable office equipment such as computers
C) major purchases such as elevators
D) portable factory equipment such as hand tools
E) products such as insurance
24) Lubricants, coal, paper, and pencils are examples of ________.
A) operating supplies
B) capital items
C) raw materials
D) specialty products
E) installations
25) ________ consists of activities undertaken to create, maintain, or change the attitudes and
behaviors of target consumers toward an organization.
A) Social networking
B) Organization marketing
C) Niche marketing
D) Puffery
E) Organizational learning
26) The advertising slogan, "We bring good things to life," used by General Electrics to market
themselves, is an example of ________ marketing.
A) person
B) corporate image
C) internal
D) place
E) niche
27) ________ consists of activities undertaken to create, maintain, or change attitudes toward
particular people. People ranging from presidents, entertainers, and sports figures to
professionals such as doctors, lawyers, and architects use it to build their reputations.
A) Corporate image marketing
B) Person marketing
C) Social marketing
D) Organization marketing
E) Place marketing
28) A company that uses well-known celebrities to help sell its products is using ________.
A) interactive marketing
B) internal marketing
C) social marketing
D) person marketing
E) organization marketing
29) ________ involves activities undertaken to create, maintain, or change attitudes toward
particular cities, states, or regions.
A) Idea marketing
B) Place marketing
C) Organization marketing
D) Social marketing
E) Interactive marketing
30) Tourism Australia's global marketing campaign, "There's nothing like Australia" is an
example of ________.
A) corporate image marketing
B) person marketing
C) organization marketing
D) internal marketing
E) place marketing
31) Advertising campaigns involving issues ranging from health care, education, and
environmental sustainability to human rights and personal safety can be classified under
________.
A) corporate image marketing
B) internal marketing
C) social marketing
D) place marketing
E) person marketing
32) Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes in its
ad campaigns to help sell its products. This is an example of ________ marketing.
A) person
B) place
C) social
D) organization
E) internal
33) Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity
are all examples of ________ marketing.
A) internal
B) social
C) organization
D) person
E) place
34) Rhodia invites tourists from all over the world to experience its pristine nature, clear skies,
and beautiful summertime climate. This exemplifies ________.
A) corporate image marketing
B) social marketing
C) place marketing
D) social engineering
E) negative brand equity
Refer to the scenario below to answer the following questions.
Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large
contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils
had to rethink his strategy when his contract with Elmore ended.
Herb built a company reputation on the manufacturing and distribution of a variety of wooden
writing utensils with customized engravings. Specialty shops loved to display the products in
their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks
established a brand name, known merely as Marks, and decided to expand on it.
Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens
that write in different colors. He even added a line of various grades of personalized stationery
and business cards. Perhaps Herb's biggest added touch, however, was the addition of two
salespeople who would work to explain the diverse array of products offered by Marks, as well
as nurture existing accounts.
"We make an excellent product," Herb Marks stated, "and we honor a good guarantee on
everything we sell. But let's face it—we face hundreds of competitors! We need Marks
representatives out there to help prospects understand what they should demand in something as
simple as a writing tool."
The Marks brand was fast-becoming synonymous with top-notch customer service. Part of the
purchase package brought personal visits from the Marks representative, before the purchase and
long after.
35) An easier, more comfortable, more stylish transfer of thought onto paper refers to the
________ of Herb's offerings.
A) tangible element
B) core customer value
C) actual product
D) augmented product
E) service variability
36) Which type of product does Marks manufacture?
A) industrial
B) convenience
C) specialty
D) shopping
E) unsought
37) The new felt-tip pens, multiple-cartridge pens, and quills are examples of ________.
A) product line filling
B) multibranding
C) megabranding
D) product line inconsistencies
E) co-branding
38) Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by ________.
A) product labels
B) product attributes
C) support services
D) product packaging
E) branding
39) ________ refers to the characteristics of a product or service that bear on its ability to satisfy
stated or implied customer needs.
A) Brand equity
B) Product quality
C) Product labeling
D) Brand image
E) Brand personality
40) ________ is an approach in which all the company's people are involved in constantly
improving the quality of products, services, and business processes.
A) Business intelligence
B) Quality function deployment
C) Total quality management
D) Brand equity management
E) Product positioning
41) What are the two dimensions of product quality?
A) consistency and level
B) performance and conformance
C) design and innovation
D) conformance and style
E) feature and design
42) ________ refers to freedom from defects and consistency in delivering a targeted level of
performance.
A) Performance quality
B) Product style
C) Branding
D) Conformance quality
E) Product design
43) Style simply describes the ________ of a product.
A) quality
B) appearance
C) utility
D) durability
E) long-term benefits
44) ________ contribute(s) to a product's usefulness as well as to its looks.
A) Sensational style
B) Good design
C) Trait
D) Consistency
E) Multiple features
45) A good design begins with ________.
A) brainstorming new product ideas
B) making prototypes of the planned product
C) identifying the most suitable and aesthetic packaging
D) brainstorming technical product specifications
E) observing and understanding customers and shaping their product-use experience
46) Which of the following questions is most important for product designers to consider while
developing a product?
A) Which specific features of the product do customers like most?
B) How does the product appear to buyers?
C) What are the product's technical specifications?
D) How would customers use and benefit from the product?
E) How can the product be packaged to stimulate instant purchase?
47) A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies
the maker or seller of a product or service.
A) feature
B) brand
C) line extension
D) package
E) value chain
48) ________ involves designing and producing the container or wrapper for a product.
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling
49) A product's ________ identifies the product or brand, describes several things about the
product, and promotes the brand.
A) line extension
B) portfolio
C) label
D) design
E) feature
50) The ________ requires sellers to provide detailed nutritional information on food products.
A) Sherman Antitrust Act
B) Nutritional Labeling and Educational Act of 1990
C) Glass-Steagall Act
D) Commodity Futures Modernization Act of 2000
E) Federal Trade Commission Act of 1914
51) The first step in designing support services is to ________.
A) add new services that will both delight customers and yield profits to the company
B) closely observe the product and pricing strategies of consumers
C) survey customers to assess the value of current services and obtain ideas for new ones
D) prevent brand dilution
E) encourage customers to try new products
52) A ________ is a group of products that are closely related because they function in a similar
manner, are sold to the same customer groups, are marketed through the same type of outlets, or
fall within given price ranges.
A) product line
B) line extension
C) private brand
D) multibrand
E) new brand
53) The major product line decision involve(s) ________, the number of items in the product
line.
A) product features
B) product line depth
C) product line conformance
D) product line length
E) product packaging
54) ________ involves adding more items within the present range of the product line.
A) Market diversification
B) Brand extension
C) Product line filling
D) Upward product line stretching
E) Downward product line stretching
55) Titan Inc., an automobile manufacturer based in Utah, recently added two new models to its
existing line of sedans in order to increase profits and satisfy dealers. This is an example of
________.
A) line filling
B) social marketing
C) market diversification
D) negative brand equity
E) person marketing
56) ________ occurs when a company lengthens its product line beyond its current range.
A) Product line filling
B) Product line stretching
C) Co-branding
D) Niche marketing
E) Market diversification
57) Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-
priced cars. Recently, the company launched a new range of luxury cars to broaden its market
appeal and to add prestige to its existing line of cars. This is an example of ________.
A) social marketing
B) product line filling
C) product line stretching
D) internal marketing
E) cannibalization
