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62) ________ 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
63) Features are a competitive tool for differentiating a company's product from competitors'
products. Which question are companies LEAST likely to ask in a survey of buyers regarding
product features?
A) Which features could we add to improve the product?
B) Which specific features of the product do you like most?
C) How much would (a certain new feature) be worth to you?
D) Which features of the product do you like the least?
E) How do you like the product?
64) Style simply describes the ________ of a product.
A) quality
B) appearance
C) utility
D) durability
E) long-term benefits
65) ________ contributes to a product's usefulness as well as to its looks.
A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging
66) 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
67) 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?
68) 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
69) ________ involves designing and producing the container or wrapper for a product.
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling
70) 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
71) Which of the following has become a major packaging concern in recent years?
A) underpackaging
B) legibility of print
C) colors used
D) product safety
E) durability
72) A label can identify, promote, and ________ the product.
A) sell
B) assemble
C) package
D) brand
E) describe
73) The ________ requires sellers to provide detailed nutritional information on food products.
A) Fair Packaging and Labeling Act of 1966
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
74) 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
75) 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
76) The major product line decision involves product ________, the number of items in the
product line.
A) features
B) line depth
C) line conformance
D) line length
E) packaging
77) ________ 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
78) 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
79) ________ 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
80) 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
81) A ________ consists of all the product lines and items that a particular seller offers for sale.
A) product mix
B) store brand
C) supply chain
D) value chain
E) line extension
82) Product mix ________ refers to the number of different product lines the company carries.
A) length
B) height
C) width
D) consistency
E) depth
83) Product mix ________ refers to the total number of items a company carries within its
product lines.
A) length
B) depth
C) height
D) width
E) consistency
84) Product mix ________ refers to the number of versions offered for each product in the line.
A) length
B) depth
C) height
D) width
E) consistency
85) 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) length
B) depth
C) consistency
D) width
E) height
86) A well-known cosmetic company in New York City added new product lines in order to
increase its business. In other words, it ________.
A) lengthened its existing product line
B) decreased its product line consistency
C) widened its product mix
D) engaged in market diversification
E) engaged in social marketing
Refer to the scenario below to answer the following question(s).
Ruben Delgado 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.
Ruben 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. Ruben
Delgado established a brand name, known merely as Delgado, and decided to expand on it.
Ruben 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 Ruben's biggest added touch, however, was the addition
of two salespeople who would work to explain the diverse array of products offered by
Delgado, as well as nurture existing accounts.
"We make an excellent product," Ruben Delgado stated, "and we honor a good guarantee on
everything we sell. But let's face it—we face hundreds of competitors! We need Delgado
representatives out there to help prospects understand what they should demand in something
as simple as a writing tool." The Delgado brand was fast-becoming synonymous with top-notch
customer service. Part of the purchase package brought personal visits from the Delgado
representative, before the purchase and long after.
87) The new felt-tip pens, multiple-cartridge pens, and quills offered by Ruben Delgado are
examples of ________.
A) product line filling
B) multibranding
C) megabranding
D) product line inconsistencies
E) co-branding
88) Companies frequently try to offer the highest possible performance quality level.
89) Style is a larger concept than design. Design simply describes the appearance of a product.
90) Branding decisions include determining a product price.
91) For few companies, the package itself has become an important promotional medium.
92) Labels range from simple tags attached to products to complex graphics that are part of the
packaging.
93) A product line consists of unrelated products that are sold to diverse customer groups.
94) Product line filling is overdone if it results in cannibalization and customer confusion.
95) A company cannot stretch its product line downward.
96) Product mix width refers to the total number of items a company carries within its product
lines.
97) Companies stretch downward to add prestige to their current products.
98) A company's product mix has four important dimensions: width, length, depth, and
consistency.
99) How does branding help buyers?
100) When does product line stretching occur?
101) Define consistency of the product mix.
102) Name and describe the principal decisions companies make regarding their individual
products and services.
103) Describe the principal functions of packaging.
104) Briefly describe the history of legal concerns about packaging and labels.
105) What are the different dimensions of a company's product mix? Briefly describe each
dimension.
106) Service ________ means that services cannot be seen, tasted, felt, heard, or smelled before
they are bought.
A) inseparability
B) variability
C) intangibility
D) perishability
E) heterogeneity
107) Which of the following actions is a restaurant owner most likely to take in order to reduce
problems associated with service intangibility?
A) increase entree prices after 6:00 p.m.
B) provide clean tablecloths and fresh napkins for each new customer
C) empower employees to handle customer complaints
D) offer discounted prices for appetizers ordered during happy hour
E) hold regular employee workshops focusing on customer service
108) Tristan and Juliet, a newly married couple who intend to go to Egypt for their honeymoon,
bought a Europe travel package on Jizo Inc., an online travel site. As they have never seen
Europe or used the services of Jizo before, they were largely dependent on other customers'
feedback and signals for service quality. Which of the following characteristics of service is
highlighted in this instance?
A) service intangibility
B) service inseparability
C) service variability
D) service perishability
E) service distinction
109) If a service employee provides the service, then the employee becomes a part of the
service. This is an example of service ________.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity
110) Service ________ means that the quality of services depends on who provides them as
well as when, where, and how they are provided.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity
111) The customers of Parry's Hair Salon have noticed that the quality of a haircut depends on
who provides it as well as when, where, and how the service is provided. Which of the
following characteristics of service is evident in this instance?
A) service intangibility
B) service inseparability
C) service perishability
D) service variability
E) service distinction
112) Service ________ means that services cannot be stored for later sale or use.
A) consistency
B) perishability
C) variability
D) intangibility
E) inseparability
113) Alex Smith rents storage space to college students who go home for the summer but do
not want to haul all of their property home and back. The business is profitable during the
summer months, but when the storage space is unoccupied in the off-season, Alex loses money.
Which of the following characteristics of service is most likely the source of Alex's problem?
A) intangibility
B) perishability
C) inconsistency
D) variability
E) inseparability
114) According to the service profit chain, superior internal service quality results in ________.
A) lesser service value
B) increased word-of-mouth sales
C) reduced after-sale services
D) more satisfied, loyal, and hardworking employees
E) negative brand equity of newly launched products
115) The service profit chain includes internal service quality, satisfied and productive service
employees, greater service value, healthy service profits and growth, and ________.
A) higher market share
B) better paid employees
C) satisfied and loyal customers
D) increased manufacturing efficiency
E) higher morale
