Marketing Revision Part II Chapter 8 Product, Services, and Branding Strategies: Building Customer Value1) We define a _ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.A) private brandB) service variabilityC) serviceD) productE) service encounterAnswer: DDiff: 1Page Ref: 224AACSB: CommunicationSkill: ConceptObjective: 8-12) _ 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) Line extensionsB) ServicesC) BrandsD) Consumer productsE) SupplementsAnswer: BDiff: 1Page Ref: 224AACSB: CommunicationSkill: ConceptObjective: 8-13) A product is a key element in the _. At one extreme, it may consist of pure tangible goods or at the other extreme, pure services.A) market offeringB) brand equityC) brand extensionD) co-brandingE) value chainAnswer: ADiff: 1Page Ref: 224AACSB: CommunicationSkill: ConceptObjective: 8-14) To differentiate themselves, many companies are going beyond products and services, they are developing and delivering customer _. A) qualityB) experiencesC) brandsD) product linesE) eventsAnswer: BDiff: 2Page Ref: 224AACSB: CommunicationSkill: ConceptObjective: 8-15) 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 productB) augmented productC) core customer valueD) co-brandingE) exchangeAnswer: CDiff: 2Page Ref: 225AACSB: CommunicationSkill: ConceptObjective: 8-16) Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by _ such as quality, features, and style and design.A) private brandsB) product attributesC) consumer productsD) product mixesE) marketing toolsAnswer: BDiff: 3Page Ref: 229AACSB: CommunicationSkill: ConceptObjective: 8-27) _ is one of the marketers major positioning tools because it has a direct impact on product or service performance; it is therefore closely linked to customer value and satisfaction.A) PackagingB) Product qualityC) Total quality managementD) Specialty product marketingE) PositioningAnswer: BDiff: 2Page Ref: 229AACSB: CommunicationSkill: ConceptObjective: 8-28) _ is an approach in which all the companys people are involved in constantly improving the products, services, and business processes.A) Product qualityB) Brand equityC) Total quality managementD) Specialty product marketingE) PositioningAnswer: CDiff: 2Page Ref: 230Skill: ConceptObjective: 8-29) What are the two dimensions of product quality?A) consistency and levelB) performance and resistanceC) design and innovationD) conformance and styleE) feature and designAnswer: ADiff: 2Page Ref: 230Skill: ConceptObjective: 8-210) Which of the following types of quality refers to freedom from defects and consistency in delivering a targeted level of performance?A) private brandB) productC) total quality managementD) conformance E) adherenceAnswer: DDiff: 2Page Ref: 230Skill: ConceptObjective: 8-211) Some analysts see _ as the major enduring asset of a company, outlasting the companys specific products and facilities.A) brandsB) convenience productsC) specialty productsD) unsought productsE) staplesAnswer: ADiff: 1Page Ref: 235AACSB: CommunicationSkill: ConceptObjective: 8-312) A key element in a companys relationship with consumers, a _ represents consumers perceptions and feelings about a product and its performance.A) product lineB) product experienceC) brandD) serviceE) product attributeAnswer: CDiff: 2Page Ref: 236AACSB: CommunicationSkill: ConceptObjective: 8-313) Which of the following is NOT one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength?A) brand differentiationB) brand knowledgeC) brand valuationD) brand esteemE) brand relevanceAnswer: CDiff: 3Page Ref: 236AACSB: CommunicationSkill: ConceptObjective: 8-314) The total financial value of a brand is estimated through the process of brand _.A) differentiationB) valuationC) extensionsD) positioningE) equityAnswer: BDiff: 2Page Ref: 236AACSB: CommunicationSkill: ConceptObjective: 8-315) The fundamental asset underlying brand equity is _-the value of the customer relationships that the brand creates. A powerful brand is important, but what it really represents is a set of loyal consumers.A) the customer mixB) customer equityC) line equityD) service variabilityE) the service encounterAnswer: BDiff: 3Page Ref: 238AACSB: CommunicationSkill: ConceptObjective: 8-316) _ means that services cannot be separated from their providers, whether the providers are people or machines.A) Service intangibilityB) Service inseparabilityC) Service variabilityD) Service perishabilityE) Service heterogeneityAnswer: BDiff: 1Page Ref: 245Skill: ConceptObjective: 8-417) Which of the following is NOT one of the links in the service-profit chain, linking service firm profits with employee and customer satisfaction?A) internal service qualityB) evidence managementC) satisfied and productive service employeesD) satisfied and loyal customersE) healthy service profits and growthAnswer: BDiff: 3Page Ref: 246Skill: ConceptObjective: 8-418) Through _, the service firm trains and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.A) service inseparabilityB) service intangibilityC) service variabilityD) internal marketingE) external marketingAnswer: DDiff: 2Page Ref: 247Skill: ConceptObjective: 8-419) Because service quality depends on the quality of buyer-seller interaction during the service encounter, service marketers use _ to train employees in the art of interacting with customers to satisfy their needs.A) interactive marketingB) service differentiationC) service productivityD) internal marketingE) external marketingAnswer: ADiff: 2Page Ref: 247Skill: ConceptObjective: 8-420) All of the following are methods for developing a differentiated service offer, delivery, or image EXCEPT _.A) offering innovative featuresB) increasing the quantity of service by giving up some qualityC) having more reliable customer-contact peopleD) developing symbols and brandingE) designing a superior delivery processAnswer: BDiff: 2Page Ref: 248Skill: ConceptObjective: 8-421) A service is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.Answer: FALSEDiff: 1Page Ref: 224Skill: ConceptObjective: 8-122) Sony offers consumers more than just camcorders; it provides consumers with a complete solution to their picture-taking problems. This offering is called an augmented product.Answer: TRUEDiff: 3Page Ref: 225AACSB: Reflective ThinkingSkill: ApplicationObjective: 8-123) Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.Answer: FALSEDiff: 1Page Ref: 226Skill: ConceptObjective: 8-124) Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.Answer: TRUEDiff: 2Page Ref: 226Skill: ConceptObjective: 8-125) Style is a larger concept than design. Design describes the appearance of a product.Answer: FALSEDiff: 3Page Ref: 230Skill: ConceptObjective: 8-226) Branding can add consumer value to a product.Answer: TRUEDiff: 2Page Ref: 231AACSB: CommunicationSkill: ConceptObjective: 8-227) Because so many purchase decisions are made in stores, a products packaging may be a sellers last and best chance to influence consumers.Answer: TRUEDiff: 2Page Ref: 232AACSB: CommunicationSkill: ConceptObjective: 8-228) Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics.Answer: FALSEDiff: 2Page Ref: 233AACSB: CommunicationSkill: ConceptObjective: 8-229) Quaker produces a variety of cereals. This variety is called its product line.Answer: TRUEDiff: 2Page Ref: 234AACSB: Reflective ThinkingSkill: ApplicationObjective: 8-230) Cannibalization and customer confusion about product differentiation are two potential results if line filling is overdone.Answer: TRUEDiff: 3Page Ref: 234Skill: ConceptObjective: 8-2Chapter 9 New-Product Development and Product Life-Cycle Strategies1) What are the two ways that a company can obtain new products? A) line extension and brand managementB) internal development and brand managementC) new-product development and acquisitionD) service development and product extensionE) market mix modification and research and developmentAnswer: CDiff: 2Page Ref: 258Skill: ConceptObjective: 9-12) Product improvements, product modifications, and original products can all be classified as _.A) pioneer productsB) new productsC) product conceptsD) product ideasE) test productsAnswer: BDiff: 1Page Ref: 258Skill: ConceptObjective: 9-13) Which of the following is NOT a potential reason for a new product to fail?A) an underestimated market size B) a poorly designed productC) an incorrectly positioned productD) higher than anticipated costs of product developmentE) ineffective advertisingAnswer: ADiff: 2Page Ref: 258Skill: ConceptObjective: 9-14) Which of the following is NOT a challenge presented by the product life cycle that a firm must face?A) All products eventually decline.B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages.C) A firm must be good at developing new products to replace aging ones.D) A firm must be good at adapting its marketing strategies.E) It is difficult to plot the stages as a product goes through them.Answer: EDiff: 2Page Ref: 258Skill: ConceptObjective: 9-15) The creation of a successful new product depends on a companys understanding of its _ and its ability to deliver _ to customers.A) competitors, distributors, and employees; new stylesB) customers, brands, products; product imagesC) customers, competitors, and markets; superior valueD) product, marketing mix, and marketing strategy; functional featuresE) product life cycle, legal responsibilities, and social responsibilities; innovationsAnswer: CDiff: 2Page Ref: 259Skill: ConceptObjective: 9-26) A _ is the way consumers perceive an actual or potential product.A) product ideaB) product conceptC) product imageD) test marketE) concept testAnswer: CDiff: 1Page Ref: 262AACSB: CommunicationSkill: ConceptObjective: 9-27) An attractive idea must be developed into a _.A) product ideaB) product conceptC) product imageD) test marketE) product strategyAnswer: BDiff: 2Page Ref: 262Skill: ConceptObjective: 9-28) _ calls for testing new-product concepts with groups of target consumers. A) Concept developmentB) Concept testingC) Idea generationD) Idea screeningE) Test marketingAnswer: BDiff: 1Page Ref: 263Skill: ConceptObjective: 9-29) In the concept testing stage of new-product development, a product concept in _ form is presented to groups of target consumers.A) physical or symbolicB) prototypeC) finalD) market-testedE) commercialAnswer: ADiff: 2Page Ref: 263Skill: ConceptObjective: 9-210) With what groups do firms conduct concept testing for new products?A) suppliersB) employeesC) target customersD) manufacturersE) competitorsAnswer: CDiff: 3Page Ref: 263Skill: ConceptObjective: 9-211) Following the decision to "time" the introduction of the new product, a company must decide _ to launch the new product.A) whereB) howC) to what degreeD) whyE) all of the aboveAnswer: ADiff: 2Page Ref: 268Skill: ConceptObjective: 9-212) Which of the following is necessary for successful new-product development?A) a holistic and sequential product development approachB) a customer-centered, team-based, systematic approachC) a team-based, innovation-management approachD) a market pioneer mindset and a holistic approachE) an innovation management system and sequential product developmentAnswer: BDiff: 3Page Ref: 268Skill: ConceptObjective: 9-213) Which stage of the new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?A) concept testingB) new-product developmentC) customer-centered new-product developmentD) sequential product developmentE) team-based new-product developmentAnswer: CDiff: 1Page Ref: 269Skill: ConceptObjective: 9-214) _ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage. A) Team-based product developmentB) Simultaneous product developmentC) Sequential product developmentD) Product life-cycle analysisE) MicromarketingAnswer: CDiff: 2Page Ref: 269Skill: ConceptObjective: 9-215) In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called _.A) simulated new-product developmentB) sequential product developmentC) team-based new-product developmentD) phased-in new-product developmentE) market developmentAnswer: CDiff: 1Page Ref: 270Skill: ConceptObjective: 9-216) Which stage of the typical consumer product life cycle is out of order below?A) product developmentB) introductionC) maturityD) growthE) declineAnswer: CDiff: 2Page Ref: 273Skill: ConceptObjective: 9-317) Which of the following CANNOT be described using the PLC concept? A) product classB) product formC) product imageD) brandE) stylesAnswer: CDiff: 3Page Ref: 273Skill: ConceptObjective: 9-318) All of the following are accurate descriptions of a style product, EXCEPT which one? A) Style products appear in home, clothing, and art.B) Once a style is invented, it may last for generations.C) A style has a cycle showing several periods of renewed interest.D) Styles last only a short time and tend to attract only a limited following.E) Styles are basic and distinctive modes of expression.Answer: DDiff: 2Page Ref: 274Skill: ConceptObjective: 9-319) The PLC concept can be applied by marketers as a useful framework for describing how _.A) to forecast product performanceB) to develop marketing strategiesC) products and markets workD) concept testing is conductedE) product ideas are developedAnswer: CDiff: 3Page Ref: 274Skill: ConceptObjective: 9-320) Using the PLC concept to develop marketing strategy can be difficult because strategy is both a _ and a(n) _ of the products life cycle.A) mirror image; causeB) cause; resultC) result; mirror imageD) beginning; endE) purpose; effectAnswer: BDiff: 3Page Ref: 274Skill: ConceptObjective: 9-321) Manufacturers must comply with specific laws regarding _.A) price structuresB) product quality and safetyC) product placementD) distribution channelsE) product life cyclesAnswer: BDiff: 1Page Ref: 280AACSB: Ethical ReasoningSkill: ConceptObjective: 9-422) Because of _, a company cannot make its product illegally similar to a competitors already established product.A) anti-monopoly lawsB) patent lawsC) the Consumer Product Safety ActD) product warrantiesE) product liabilityAnswer: BDiff: 1Page Ref: 280AACSB: Ethical ReasoningSkill: ConceptObjective: 9-423) Which of the following best describes the role of a product steward?A) to protect consumers from harmB) to evaluate new-product ideas against a set of general criteriaC) to develop a new-product concept into a physical productD) to protect the company from liability by identifying and solving potential product problemsE) A and DAnswer: EDiff: 3Page Ref: 280AACSB: Ethical ReasoningSkill: ConceptObjective: 9-424) The advantages of standardizing an international product include all of the following EXCEPT _.A) the development of a consistent imageB) lower product design costsC) the adaptation of products to different marketsD) decreased manufacturing costsE) lower marketing costsAnswer: CDiff: 2Page Ref: 281Skill: ConceptObjective: 9-425) Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess _.A) product standardizationB) market rolloutC) the product life cycleD) packagingE) stylesAnswer: DDiff: 2Page Ref: 281AACSB: Multicultural and DiversitySkill: ConceptObjective: 9-426) Blair Housewares wants to add new lines of products to its 46-store chain. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.Answer: FALSEDiff: 2Page Ref: 262AACSB: Analytic SkillsSkill: ApplicationObjective: 9-227) A product idea is an idea for a possible product a company can offer the market, while a product concept is a detailed version of the idea stated in meaningful consumer terms. Answer: TRUEDiff: 3Page Ref: 262Skill: ConceptObjective: 9-228) Concept testing works best with people who are familiar with the new idea and the new products purpose. This generally includes top management, the sales force, and research and development.Answer: FALSEDiff: 3Page Ref: 263Skill: ConceptObjective: 9-229) GreenTree Lawn and Garden Products is engaged in marketing strategy development. Management should first create a statement outlining the products planned price, distribution, and marketing budget for the first year.Answer: FALSEDiff: 3Page Ref: 263AACSB: Analytic SkillsSkill: ApplicationObjective: 9-230) GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the companys objectives. This activity is called business product development.Answer: FALSEDiff: 2Page Ref: 264AACSB: Reflective ThinkingSkill: ApplicationObjective: 9-2Chapter 10 Pricing Products: Understanding and Capturing Customer Value1) _ is the amount of money charged for a product or service.A) Experience curveB) Demand curveC) PriceD) WageE) SalaryAnswer: CDiff: 1Page Ref: 290Skill: ConceptObjective: 10-12) Price is the only element in the marketing mix that produces _.A) revenueB) variable costsC) expensesD) o