Chapter 8 - National Tsing Hua University · Web viewExplain product mix width, length, consistency, and depth. Product mix width refers to the number of different product lines the

Chapter 7Product, Services, and Branding Strategy

GENERAL CONTENT: Multiple-Choice Questions

1. 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. service d. producte. service encounter

(Answer: d; p. 199; Easy)

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. Line extensionsb. Servicesc. Brandsd. Consumer productse. Supplements

(Answer: b; p. 199; Easy)

3. Product is a key element in _____. 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. the value chain

(Answer: a; p. 199; Easy)

4. Many companies are moving to a new level in creating value for their customers. They are developing and delivering total customer experiences. Whereas products are tangible and services are intangible, experiences are _____.a. product qualityb. memorablec. unsought productd. internal marketinge. service encounters

(Answer: b; p. 199; Moderate)

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5. Product planners need to think about 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 benefitd. co-brandinge. exchange

(Answer: c; p. 200; Challenging)

6. Product planners need to think about products and services on three levels. The third level is that the product planners must build on a(n) _____ around the core benefit and actual product by offering additional consumer services and benefits.a. augmented productb. brand equityc. brand extensiond. industrial producte. image

(Answer: a; p. 200; Challenging)

7. Product planners must design the actual product and find ways to _____ it in order to create the bundle of benefits that will provide the most satisfying customer experience.a. core benefitb. packagec. brandd. augmente. present

(Answer: d; p. 200; Challenging)

8. Products and services fall into two broad classes based on the types of consumers that use them. Which is one of these broad classes?a. Industrial products.b. Brand equity.c. Co-branding.d. Brand extension.e. Cohesive.

(Answer: a; p. 200; Moderate)

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9. _____ are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products.a. Servicesb. Consumer productsc. Line extensionsd. Industrial productse. Straight extensions

(Answer: b; pp. 200–201; Easy)

10. _____ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons.a. Shopping productsb. Brandsc. Servicesd. Industrial productse. Line extensions


11. _____ 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 productsb. Unsought productsc. Specialty productsd. Industrial productse. Line extensions

(Answer: c; p. 201; Moderate)

12. _____ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts.a. Specialty productsb. Line extensionsc. Unsought productsd. Shopping productse. Staples

(Answer: c; p. 202; Easy)

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13. _____ are those products purchased for further processing or for use in conducting a business.a. Unsought productsb. Specialty productsc. Shopping productsd. Industrial productse. Accessories


14. The three groups of industrial products and services include all of the following except _____.a. materials and partsb. capital itemsc. maintenance and operationsd. supplies and servicese. B and D


15. Most manufactured materials and parts are sold directly to _____. Price and service are the major marketing factors; branding and advertising tend to be less important.a. consumersb. industrial usersc. brand extensionsd. co-branderse. wholesalers

(Answer: b; p. 202; Challenging)

16. _____ are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment.a. Materialsb. Partsc. Capital itemsd. Specialty itemse. Supplies


17. _____ consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.a. Person marketingb. Organization marketingc. Internal marketingd. Service variabilitye. Intelligence marketing


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18. _____ consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.a. Corporate image advertisingb. Organization marketingc. Person marketingd. Social marketinge. Intermarket marketing


19. _____ involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, and regions. Texas advertises “It’s like a whole other country.”a. Idea marketingb. Place marketingc. Social marketingd. Interactive marketinge. Regional marketing


20. _____ is defined as the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society.a. Unsought productb. Internal marketingc. Social marketingd. Product linee. Interactive marketing


21. Marketing efforts, which include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are called _____.a. specialty productsb. social marketingc. shopping productsd. consumer productse. responsibility marketing


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22. The Ad Council of America has developed dozens of _____ advertising campaigns, including classics such as “Smokey the Bear,” “Keep America Beautiful,” and “Only You Can Prevent Forest Fires.”a. socialb. brand equityc. serviced. product linee. extensive


23. 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. none of the above


24. _____ is one of the marketer’s major positioning tools. It has a direct impact on product or service performance; thus, it is closely linked to customer value and satisfaction.a. Packagingb. Product qualityc. Social marketingd. Specialty marketinge. Position marketing


25. _____ is an approach in which all the company’s people are involved in constantly improving the products, services, and business processes.a. Product qualityb. Brand equityc. Total quality managementd. Specialty producte. Positioning


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26. Beyond quality level, high quality also can mean high levels of quality consistency. Here, product quality means _____—freedom from defects and consistency in delivering a targeted level of performance.a. private brandb. product qualityc. total quality managementd. conformance qualitye. adherence quality


27. A product can be offered with varying _____. A stripped-down model, one without any extras, is the starting point.a. co-brandingb. featuresc. product qualityd. service variabilitye. extensions


28. The company periodically surveys buyers who have used a product and asks questions such as, “Which specific features of the product do you like the most?” The company can then assess each feature’s _____ to customers versus its _____ to the company. a. cost; line extensionb. cost; servicec. value; costd. service; line extensione. equity; cost


29. A sensational _____ may grab attention and produce pleasing aesthetics, but it does not necessarily make the product perform better.a. designb. stylec. variabled. service-profit chaine. package


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30. _____ is more than skin deep—it goes to the very heart of the product. It contributes to a product’s usefulness as well as to its looks.a. Styleb. Designc. Packaged. Brande. Functionality


31. Good style and design can do many things. What is one thing it cannot do?a. Attract attention.b. Improve product performance.c. Cut production costs.d. Cause unsought product reputation.e. B and C


32. A(n) _____ is a name, term, sign, symbol, design, or a combination of these, that identifies that maker or seller of a product or service.a. serviceb. brandc. co-brandingd. internal marketinge. external marketing


33. _____ involves designing and producing the container or wrapper for a product.a. Packagingb. Product linec. Serviced. Brandinge. Labeling


34. Like New Products wants to improve its packaging after reading customer responses to its customer opinion poll. Which is not a function of packaging?a. It contains and protects the product.b. It contains the brand mark.c. It protects children.d. It determines product quality.e. It may contain the brand symbol.

(Answer: d; p. 209; Moderate)

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35. At the very least, the _____ identifies the product or brand. It might also describe several things about the product.a. line extensionb. social marketingc. labeld. specialty producte. A or B


36. Labels may mislead customers, fail to describe important ingredients, or fail to include needed safety warnings. As a result, several federal and state laws regulate labeling. The most prominent is the _____.a. Co-branding Act of 1972b. Labeling Act of 1970c. Packaging Act of 1968d. Fair Packaging and Labeling Act of 1966e. Fair Labor Standards Act of 1938


37. The _____ requires sellers to provide detailed nutritional information on food products. a. Fair Packaging and Labeling Act of 1966b. Nutritional Labeling and Educational Act of 1990c. Labeling Act of 1970d. Packaging Act of 1970e. Norris-LaGuardia Act of 1932


38. Customer service is another element of product strategy. The first step is to survey customers periodically to assess the value of current services and to obtain ideas for new ones. From this careful monitoring, Cadillac has learned that buyers are very upset by repairs that are not done correctly the first time. What is the name of these types of services?a. Brand equity services.b. Product support services.c. Social marketing services.d. Unsought product services.e. Customer service.


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39. 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 lineb. line extensionc. private brandd. convenience producte. product bandwidth


40. Berkowitz Piano Company can lengthen its product line in one of two common ways. Which is one of these ways that might prove productive?a. Internal marketing.b. Line filling.c. Product mix.d. Social marketing.e. None of the above.


41. An alternative to product line stretching is _____—adding more items within the present range of the line. There are several reasons for doing this; some are to reach for extra points, satisfy dealers, use excess capacity, and to plug holes to keep out competitors.a. product mixb. interactive marketingc. product line fillingd. co-brandinge. service marketing


42. An organization with several product lines has a _____. This consists of all the product lines and items that a particular seller offers for sale.a. product mixb. brand linec. consumer mixd. packaging mixe. line extension


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43. Product mix _____ refers to the number of different product lines the company carries. Procter & Gamble markets 250 brands organized into many product lines.a. lengthb. heightc. widthd. perimetere. depth


44. Product line _____ refers to the number of versions offered of each product in the line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda formulations.a. lengthb. depthc. heightd. widthe. perimeter


45. 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. depthb. lengthc. widthd. consistencye. perimeter


46. A company can increase its business in four ways. Which is not one of these ways?a. It can add new product lines, thus widening its product mix.b. It can lengthen its existing product lines.c. It can add more versions of each product and thus deepen its product mix.d. The company can discontinue some of its lines.e. None of the above.


47. Some analysts see _____ as the major enduring asset of a company, outlasting the company’s specific products and facilities.a. brandsb. convenience productsc. specialty productsd. unsought productse. staples


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48. 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. customer mixb. customer equityc. line equityd. service variabilitye. the service encounter


49. Marketers need to position their brands clearly in target customers’ minds. They can position brands at any of three levels. At the lowest level, they can position the brand on _____.a. interactive marketingb. internal marketingc. product attributesd. strong beliefs and valuese. added service


50. Marketers need to position their brands clearly in target customers’ minds. The strongest brands go beyond attributes or benefit positioning. They are positioned on _____.a. desirable benefitb. good packagingc. service inseparabilityd. strong beliefs and valuese. customer image


51. Desirable qualities for a brand name include all of the following except _____. a. It should suggest something about the product’s benefits and qualities.b. It should be easy to pronounce, recognize, and remember.c. The brand should almost always be a long word to get attention.d. The name should translate easily into foreign languages. e. B and D


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52. Manufacturers’ brands have long dominated the retail scene. In recent times, however, an increasing number of retailers and wholesalers have created their own _____ (or store brands).a. slotting feesb. private brandsc. specialty productsd. service variabilitye. none of the above


53. In the so-called battle of the brands between manufacturers’ and private brands, _____ have many advantages. They control what products they stock, where they go on the shelf, and which ones they will feature in local circulars.a. unsought productsb. convenience productsc. specialty productsd. retailerse. shopping products


54. Most retailers also charge manufacturers _____—payments demanded by retailers before they will accept new products and find a place for them on the shelves.a. slotting feesb. private feesc. line extension feesd. product line feese. distribution charges


55. Most manufacturers take years and spend millions to create their own brand names. However, some companies _____ names or symbols previously created by other manufacturers, names of well-known celebrities, and/or characters from popular movies and books. For a fee, any of these can provide an instant and proven brand name.a. serviceb. licensec. marketd. packagee. steal


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56. _____ occurs when two established brand names of different companies are used on the same product.a. Brand extensionb. Brand equityc. Co-brandingd. Internal marketinge. Cannibalization


57. In most _____ situations, one company licenses another company’s well-known brand to use in combination with its own.a. brand extensionb. brand equityc. co-brandingd. internal marketinge. line extension


58. As one Nabisco manager puts it, “Giving away your brand is a lot liking giving away your _____—you want to make sure everything is perfect.”a. packageb. product linec. childd. product qualitye. company image


59. A company has four choices when it comes to developing brands. Which is not one of those choices?a. Line extension.b. Brand extension.c. Multibrands.d. Width and depth extension.e. B and C


60. _____ occur(s) when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.a. Line extensionsb. Product mixc. Interactive marketingd. Service variabilitye. Service intangibility


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61. One risk of _____ is that sales may come at the expense of other items in the line. It works best when it takes sales away from competing brands, not when it “cannibalizes” the company’s other items.a. brand extensionb. line extensionc. packagingd. social marketinge. Internet marketing


62. A _____ involves the use of a successful brand name to launch new or modified products in a new category.a. brand equityb. product linec. brand extensiond. private brande. brand symbol


63. _____ offer(s) a way to establish different features and appeal to different buying motives. It also allows a company to lock up more reseller shelf space. Or the company may want to protect its major brand by setting up flanker brands.a. New brandsb. Interactive marketingc. Product qualityd. Multibrandse. Differentiation


64. Retailers have become concerned that there are already too many brands, with too few differences between them. Thus, Procter & Gamble and other large consumer-product marketers are now pursuing _____ strategies—weeding out weaker brands and focusing their marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories.a. megabrandb. service inseparabilityc. social marketingd. unsought producte. undifferentiated


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65. Companies must carefully manage their brands. First, the brand’s positioning must be continuously communicated to consumers. Major brand marketers often spend huge amounts on advertising to create brand _____ and to build preference and loyalty.a. extensionb. awarenessc. packagingd. internal marketinge. preference


66. Advertising campaigns can help to create name recognition, brand knowledge, and maybe even some brand preference. However, the fact is that brands are not maintained by advertising but by the _____.a. marketing experienceb. line extensionsc. brand experienced. product mixe. word-of-mouth elements


67. The brand’s positioning will not take hold fully unless everyone in the company lives the brand. Therefore the company needs to train its people to be _____.a. customer centeredb. specialty centeredc. convenience centeredd. line-extension centerede. loyal


68. The brand’s positioning will not take hold fully unless everyone in the company lives the brand. This suggests that managing a company’s brand assets can no longer be left only to _____.a. product lineb. product mixc. brand extensiond. brand managerse. marketing managers


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69. Canada Dry and Colgate-Palmolive have appointed _____ managers to maintain and protect their brand’s images, associations, and quality, and to prevent short-term actions by overeager brand managers from hurting the brand.a. product lineb. servicec. brand equityd. brand extensione. marketing


70. Building a(n) _____ and re-educating customers can be a huge undertaking for a company. It cost tens of millions of dollars just for a special four-week advertising campaign to announce the new name, followed by considerable ongoing advertising expenses to the Verizon Company.a. product mixb. service intangibilityc. new imaged. internal markete. level of customer loyalty


71. A company must consider four special service characteristics when designing marketing programs. Which is not one of these characteristics?a. Intangibility.b. Inseparability.c. Perishability.d. Interactive marketing.e. B and C


72. _____ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.a. Service inseparabilityb. Service variabilityc. Service intangibilityd. Service perishabilitye. Service heterogeneity


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73. _____ 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 heterogeneity


74. In a product business, products are fairly standardized and can sit on shelves waiting for customers. But in a service business, front-line service employees and the support processes backing these employees participate in _____.a. interactionb. co-brandingc. industrial marketingd. internal marketinge. external marketing


75. _____ means that the service firm must effectively train and motivate 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 marketing


True/False

76. We define a service as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

(False; p. 199; Easy)

77. Co-branding is 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. Examples are banking, hotel, airline, retail, tax preparation, and home repair.

(False; p. 220; Moderate)

78. Sony must offer more than just a camcorder. It must provide consumers with a complete solution to their picture-taking problems. This is called an augmented product.

(True; p. 200; Challenging)

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79. Unsought products are products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

(False; p. 202; Easy)

80. Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

(True; p. 201; Moderate)

81. Programs that include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are examples of the social idea known as social marketing.

(True; p. 204; Easy)

82. Style is a larger concept than design. Design describes the appearance of a product.


83. The brand of a product can determine its consumer value.(True; p. 208; Moderate)

84. Packaging does not include the material necessary to ship a product.(False; p. 209; Easy)

85. Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics.


86. Quaker produces a variety of cereals. This variety is called its product line.(True; p. 211; Moderate)

87. A company’s product mix has four important dimensions: width, length, depth, and consistency.


88. Dove marketers can go beyond the brand’s cleansing cream attributes and talk about the resulting benefit of softer skin. This is known as product attributes in brand positioning.

(False; p. 215; Challenging)

89. One important quality for a brand name is that it should translate easily into foreign languages.


90. An increasing number of retailers and wholesalers have created their own brands—such as Wal-Mart offering Sam’s Choice beverages and food products. This is called co-branding.

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91. When a company introduces a new brand name in the same product category, it is called line extension.


92. Customers come to know a brand through a wide range of contacts and touch points. These include word of mouth, personal interactions with company people, telephone interactions, and company Web pages. Many brands are not maintained by advertising but by brand experience.


93. An example of service variability is that within a given Marriott hotel, one registration-desk employee may be cheerful and efficient, whereas another may be unpleasant and slow.

(True; p. 224; Challenging)

94. Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.


95. In a product business, products are fairly standardized and can sit on shelves waiting for customers. In a service business, the customer and front-line service employee interact to create the service.


96. The service-profit chain means the set of all product lines and items that a particular seller offers for sale.


97. An aspect of managing service differentiation is in the company’s service delivery.


98. Customer retention is perhaps the best measure of quality—a service firm’s ability to hang on to its customers depends on how consistently it delivers value to them.


99. Managing service productivity can take place when a company increases the quality of its service by giving up some of its output.


100. The government cannot prevent companies from adding products through acquisitions if the effect threatens to lessen competition.


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101. Internal marketers face special challenges. They must figure out what products to introduce to other countries.

(False; p. 226; Moderate)102. In international product and service marketing, it is important to know what

different colors mean to different countries.(True; p. 231; Easy)

103. In international product and service marketing, many banks were afraid to go global and held off for quite a while.


104. Retailers such as Wal-Mart, Kmart, Toys “R” Us, Office Depot, and Disney are among the first businesses to go global.


105. Service companies wanting to operate in other countries are usually welcomed with open arms. Manufacturers usually face restrictions when attempting to sell their products in other countries.


Essay

106. Products and services fall into two broad classes based on the types of consumers that use them. Name these two broad classes and describe how they are different from each other.

Consumer products—those bought by final consumers—are usually classified according to consumer shopping habits. Industrial products—purchased for further processing or for use in conducting a business—include materials and parts.

(p. 201; Moderate)

107. Name and describe three decisions that companies make regarding their individual products and services, product lines, and product mixes.

Product attribute decisions involve product quality, features, and style and design. Branding decisions include selecting a brand name and developing a brand strategy. Packaging provides many key benefits, such as protection, economy, convenience, and promotion. There are additional answers to this question also.

(p. 205; Easy)

108. A manufacturer has four brand sponsorship options. Describe what they are.

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It can launch a manufacturer’s brand. It can sell to resellers who use a private brand. It can market licensed brands. It can join forces with another company to co-brand a product.

(p. 218; Challenging)

109. A company has four choices when it comes to developing brands. Describe what they are.

The company can introduce line extensions; it can introduce brand extension; it can introduce multibrands; and it can begin new brands.

(p. 220; Moderate)

110. Services are characterized by four key characteristics. Name and describe these four characteristics.

Intangible: they cannot be seen, tasted, felt, heard, or smelled before they are bought. Inseparable: they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Variable: their quality may vary greatly, depending on who provides them and when, where, and how they are provided. Perishable: they cannot be stored for later sale or use.


111. Good service companies focus attention on both customers and employees. Describe what the service-profit chain and internal marketing are, and how they differ from each other.

The service-profit chain links service firm profits with employee and customer satisfaction. Internal marketing by a service firm refers to training and effectively motivating its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. The first deals with employees and customers. The second deals with training employees.


112. Describe two special challenges that international marketers must consider to be successful in marketing to other countries.

First, they must figure out what products and services to introduce and in which countries. Then, they must decide how much to standardize or adapt their products and services for world markets.


113. Describe the role of packaging.

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Packaging involves designing and producing the container or wrapper for a product. Packaging contains and protects the product, but it also is used to attract customer attention, to describe the product, and to make the sale.

(p. 209; Easy)

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114. Explain the history of legal concerns about packaging and labels.

The Federal Trade Commission Act of 1914 held that false, misleading, or deceptive labels or packages constitute unfair competition. Labels can mislead consumers, fail to describe important ingredients, or fail to include needed safety warnings. As a result, several federal and state laws regulate labeling. The Fair Packaging and Labeling Act of 1966, for example, set mandatory labeling requirements, encouraged volunteer industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries. The Nutritional Labeling and Education Act of 1990 requires sellers to provide detailed nutritional information on food products; the Food and Drug Administration regulates the use of health-related terms such as low-fat, light, and high-fiber.


115. Explain product mix width, length, consistency, and depth.

Product mix width refers to the number of different product lines the company carries; whereas, product length refers to the total number of products carried in a company’s product lines. Consistency refers to how closely related the various product lines are in end use. Product depth refers to the number of versions offered of each product in the line.

(p. 213; Easy)

APPLICATION CONTENT: Multiple-Choice Questions

116. One of the three groups of industrial products includes materials and parts. Which is not one of the material parts?a. Farm products such as wheat.b. Natural products such as iron ore.c. Nonraw materials.d. Petroleum.e. B and D


117. Which of the following capital items is not considered an accessory part of equipment? The finance department needs to know so they can be classified correctly.a. Buildings.b. Hand tools.c. Lift trucks.d. Desks.e. Chairs.


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118. Paper, pencils, lubricants, paint, nails, and brooms are examples of _____.a. suppliesb. capitalsc. raw materialsd. specialty productse. installations


119. What is a major tool companies use to market themselves to various publics—such as General Electric states, “We bring good things to life”?a. Personal marketing.b. Corporate image marketing.c. Product quality.d. Product line.e. Reminder ads.


120. _____ can also be marketed. In one sense, all marketing is the marketing of this. It can be specific, such as Crest toothpaste’s “create smiles every day.”a. Co-brandingb. Internal marketingc. Ideasd. Unsought productse. Marketing intelligence


121. You have just read an article on the latest research about product quality. You want to tell your supervisor that product quality has two dimensions. What is one of these dimensions?a. Consistency.b. Brand.c. Convenience product.d. Specialty product.e. Image.


122. Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna even though the Kroger tuna costs $0.15 less per can. This is known as brand _____.a. extensionb. equityc. specialtyd. servicee. switching


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123. An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented?a. Line extension.b. Brand extension.c. Multibrands.d. New brands.e. Rebranding.


124. JB Auto Detailing’s customers have noticed that the quality of services depends on who provides them as well as when, where, and how they are provided. What have the customers noticed?a. Service intangibility.b. Service inseparability.c. Service variability.d. Service perishability.e. Service distinction.


125. Because a barber cannot inventory haircuts, which one of the following applies?a. Service intangibility.b. Service inseparability.c. Service variability.d. Service perishability.e. Low-context services.


126. Krispy Kreme provides _____ to customers.a. tangible productsb. servicesc. experiencesd. none of the abovee. A and C

(Answer: e; p. 199; Moderate)

127. When the Twin Six Cafe provides gourmet menu options to its customers, as well as impeccable service—which even allows the customer to hand-select his or her own cut of meat—_____ is(are) are evident.a. only an actual productb. only an augmented productc. only a core benefitd. both a core benefit and an actual producte. a core benefit, an actual product, and an augmented product

(Answer: e; p. 200; Challenging)

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128. A hickory rocking chair, handmade by an Amish woodcarver in northern Indiana from locally grown wood is an example of a(n) _____.a. convenience productb. shopping productc. specialty productd. servicee. augmented product


129. You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle of Pepto-Bismol. This product is a(n) _____ product.a. unsoughtb. conveniencec. augmentedd. shoppinge. specialty


130. Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) _____ product.a. augmentedb. specialtyc. convenienced. shoppinge. unsought


131. The American Dairy Association has announced, “Milk—It Does a Body Good.” This is an example of _____.a. corporate image advertisingb. person marketingc. image marketingd. deceptive advertisinge. social marketing


132. To achieve its social change objectives, social marketing _____.a. utilizes only the promotional P of the marketing mixb. utilizes only the promotional and product Ps of the marketing mixc. works to influence individuals’ behavior to improve their well-beingd. utilizes all of the Ps in the marketing mixe. C and D

(Answer: e; p. 204; Challenging)

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133. Which of the following is(are) examples of product line depth?a. Hamburger and cheeseburger.b. Hamburger and fries.c. Coke and Diet Coke.d. A and Ce. All of the above.


134. Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and use excess market capacity, Helene Curtis then marketed shampoo for oily hair and color-treated hair. This is an example of _____.a. line fillingb. social marketingc. line stretchingd. an unsought producte. people marketing


135. A manager of a Holiday Inn said, “We have power and value in the market and people are willing to pay for it.” This manager is referring to _____.a. social marketingb. brand equityc. specialty productsd. line fillinge. product length


Short Answer

136. What does the term product include?

Products include physical objects, services, events, persons, places, organizations, ideas, or mixes of these entities.

(p. 199; Easy)

137. Give an example of the most basic level of product, the core benefit.

Examples are numerous. A salon owner, providing similar services of a day spa, may focus on “pampering yourself in total relaxation.”

(p. 200; Moderate)

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138. Using your response in question #137, give examples of the second level of product, the actual product.

In this situation, the salon owner may market hair- and nail-care products and services, full- and partial-body massages, workout equipment and training, and social activities, and so forth.

(p. 200; Easy)

139. Using your response in question #138, give an example of an augmented product.

Examples will vary. In this situation, an augmented product may include the customer option of having most of the services performed in the privacy and solitude of his or her home.


140. Give three examples of convenience products.

Examples may include soft drinks, milk, and candy.(p. 201; Easy)

141. How do you know your examples in question #140 are convenience goods?

They are low-priced and require very little customer thought or shopping effort.(p. 201; Easy)

142. Give three examples of shopping products.

Examples may include washing machines, lawn mowers, and furniture.(p. 201; Easy)

143. How do you know the examples in question #142 are shopping products?

Shopping products often require a comparison of brands and are distributed in fewer outlets; they require more planning and shopping effort than do convenience products.

(p. 201; Easy)

144. Give three examples of specialty products.

Examples may include a Rolex watch, a Jaguar sports car, and an around-the-world cruise.

(p. 201; Easy)

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145. How do you know the examples in question #145 are specialty products?

Such specialty products carry extremely high prices; purchase frequency is usually low. Buyers typically care little about price level and carry with them a strong brand preference.

(p. 201; Easy)

146. Give an example of place marketing.

Examples may include activities undertaken to create, maintain, or change attitudes or behavior toward a particular place.

(p. 203; Moderate)

147. As subjective as it may be, attempting to convince a bald man that joining The Hair Club will improve his looks and attract more dates is an example of what kind of marketing?

Idea marketing is being used in this situation.(p. 203; Challenging)

148. How might measuring service quality be more difficult than measuring product quality?

Products are tangible; therefore, measuring quality across several dimensions—such as durability, functionality, and so on—may be easier or performed more consistently than when measuring service quality.


149. Consumers form relationships with products via brands. What might happen that allows a consumer to move from merely recognizing a brand to preferring a brand?

A consumer has likely tried the brand at least once in order to prefer it over others; or, perhaps the consumer prefers a brand merely because he or she has been exposed to a catchy ad or promotional gimmick.


150. How might a flower shop, for example, engage in line stretching?

A flower shop may offer single-stem, fresh-cut flowers, sold individually, small arrangements, bouquets, or large ceremonial sprays; with line stretching, the flower shop will offer a wide array of products geared toward all types of flower buyers.


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151. Give an example of product depth in the soft drink industry.

Examples include Coke, Diet Coke, Caffeine-free Coke, and Cherry Coke.(p. 213; Easy)

152. Consider such brand names as A1 Steak Sauce, 409, A & D Ointment, A & W Root Beer, and Super 8. How might such names with alphanumeric characters aid in brand name selection?

Such brands are easy to pronounce, easy to recognize, and easy to remember. (p. 217; Easy)

153. Consider a massage. What service characteristics definitely define the massage as a service?

Intangibility, variability, inseparability, and perishability all define the massage as a service.

(p. 223; Easy)

154. You have just flown first-class from Chicago to Boston. Last month you flew economy-class from Chicago to Boston. When assessing the quality of service you received on both flights, you admit that you preferred the economy-class flight. List three possible factors that may have led to that variability.

The first-class flight may have been bumpy due to windy weather or the plane, for whatever reason, may have left Chicago late. The flight attendants in the first-class section may not have been as attentive as you expected. The price difference may have been extremely drastic, given the equivalent service received.


155. As a service provider, why might you perceive the buyer-seller relationship in the service encounter to be especially critical?

Customers’ perceptions are established during the service encounter. At this time, based on these perceptions, customers can become loyal, long-term buyers. It is critical that service sellers establish sound relationships from the beginning.


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Scenario

Herb Marks had 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 two-year contract with Elmore ended.

Herb had built a company reputation on the manufacture 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 had established a brand name, known merely as Marks, and decided to expound 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 so 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.

156. Explain Herb’s market offering?

Herb’s wide array of specialty writing utensils is the key element in the offering; however, the Marks brand is also built upon the customer relationships established early on and nurtured in the long run.

(p. 199; Easy)

157. Describe the core benefit surrounding Herb’s offerings.

The core benefit can be described as an easier transfer of a thought onto paper with the variety of specialty writing tools by Marks.

(p. 200; Moderate)

158. Explain the augmented product surrounding the core benefit and actual product in this scenario.

The augmented product is the determined effort by Marks representatives to build lasting relationships with customers.


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159. What type of consumer products does Marks manufacture? Explain.

The Marks brand is associated with specialty products; these products are probably higher priced and need to be perceived as different and superior from competitors’ offerings.

(p. 201; Moderate)

160. Does organization marketing occur in this scenario? Explain.

Herb Marks does attempt to carry out activities to “sell” the organization itself. The Marks products should speak for themselves; the representatives’ customer visits may serve as powerful, image-building mechanisms.


161. Why is it critical that these products have the Marks name attached?

With the Marks brand name, the products offered can be better positioned in the market as they are identified with the Marks name and all that it stands for.


162. Is line filling evident in this scenario? Explain.

Yes. Examples of line filling include the new felt-tip pens, multiple-cartridge pens, and quills added to the existing line of pens and pencils.

(p. 213; Moderate)

163. Are examples of product depth evident in this scenario? Explain.

Yes. There are apparently numerous versions of the same product types in this scenario; Herb Marks can vary the materials, style, and engravings used for each product.

(p. 213; Moderate)

164. What factors are critical in positioning the Marks brand in the marketplace?

The success of the Marks brand depends on the products’ attributes, the perceived benefits of the brand, and the beliefs and values that the Marks products deliver more than just certain attributes and benefits.


165. Are brand extensions evident in this scenario? Explain.

Yes. The Marks brand now includes stationery and business cards.(p. 221; Easy)

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Chapter 8 - National Tsing Hua University · Web viewExplain product mix width, length, consistency, and depth. Product mix width refers to the number of different product lines the