Chapter 10 - Product, Branding, and Packaging Concepts 1. What is a product? Answer: A product is a good, a service, or an idea received in an exchange. It can be either tangible or intangible and includes functional, social, and psychological utilities or benefits. It also includes supporting services, such as installation, guarantees, product information, and promises of repair or maintenance. A good is a tangible physical entity, such as an iPad or a Quiznos sandwich. A service, in contrast, is intangible; it is the result of the application of human and mechanical efforts to people or objects. Many intangible products try to make their products more tangible to consumers through advertising and tangible images. An idea is a concept, philosophy, image, or issue. Ideas provide the psychological stimulation that aids in solving problems or adjusting to the environment. For example, Mothers Against Drunk Driving (MADD) promotes safe consumption of alcohol and stricter enforcement of laws against drunk driving. 2. Describe and illustrate the four major categories of consumer products. Answer: The most widely accepted approach to classifying consumer products is based on characteristics of consumer buying behavior. It divides products into four categories: convenience, shopping, specialty, and unsought products. Convenience products are relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. They range from bread, soft drinks, and chewing gum to gasoline and newspapers. The buyer spends little time planning the purchase or comparing available brands or sellers. Even a buyer who prefers a specific brand will generally choose a substitute if the preferred brand is not conveniently available. A convenience product is normally marketed through many retail outlets, such as 7-Eleven, ExxonMobil, and supermarkets. Shopping products are items for which buyers are willing to expend considerable effort in planning and making the purchase. Buyers spend much time comparing stores and brands with respect to prices, product features, qualities, services, and perhaps warranties. Shoppers may compare products at a number of outlets. Appliances, bicycles, furniture, stereos, cameras, and shoes exemplify shopping products. These products are expected to last a fairly long time and are purchased less frequently than convenience items. Shopping products require fewer retail outlets than convenience products. Specialty products possess one or more unique characteristics, and generally buyers are willing to expend considerable effort to obtain them. Buyers actually plan the purchase of a specialty product; they know exactly what they want and will not accept a substitute. Examples of specialty products include a Mont Blanc pen and a one-of-a-kind piece of baseball memorabilia, such as a ball signed by Babe Ruth. When searching for specialty products, buyers do not compare alternatives. They are concerned primarily with finding an outlet that has the preselected product available. Unsought products are products purchased when a sudden problem must be solved, products of which customers are unaware, and products that people do not necessarily think of purchasing. Emergency medical services and automobile repairs are examples of products needed quickly to solve a problem. 3. Distinguish between consumer products and business products. Answer: The most widely accepted approach to classifying consumer products is based on characteristics of consumer buying behavior. It divides products into four categories: convenience, shopping, specialty, and unsought products. However, not all buyers behave in the same way when purchasing a specific type of product. Thus, a single product can fit into several categories. To minimize this problem, marketers think in terms of how buyers generally behave when purchasing a specific item. Business products are usually purchased on the basis of an organization’s goals and objectives. Generally, the functional aspects of the product are more important than the psychological rewards sometimes associated with consumer products. Business products can be classified into seven categories according to their characteristics and intended uses: installations; accessory equipment; raw materials; component parts; process materials; maintenance, repair, and operating (MRO) supplies; and business services. 4. Discuss some of the issues a marketer should consider when marketing a shopping product. Answer: To market a shopping product effectively, a marketer considers several key issues. Although large sums of money may be required to advertise shopping products, an even larger percentage of resources are likely to be used for personal selling. The producer and the marketing channel members usually expect some cooperation from one another with respect to providing parts and repair services and performing promotional activities. Marketers should consider these issues carefully so that they can choose the best course for promoting these products. 5. Identify and describe the major categories of business products. Answer: Business products are usually purchased on the basis of an organization’s goals and objectives. Business products can be classified into seven categories according to their characteristics and intended uses: installations; accessory equipment; raw materials; component parts; process materials; maintenance, repair, and operating (MRO) supplies; and business services. Installations include facilities, such as office buildings, factories, and warehouses, and major equipment that are nonportable, such as production lines and very large machines. Normally, installations are expensive and intended to be used for a considerable length of time. Accessory equipment does not become part of the final physical product but is used in production or office activities. Examples include file cabinets, fractional-horsepower motors, calculators, and tools. Compared with major equipment, accessory items usually are much cheaper, purchased routinely with less negotiation, and treated as expense items rather than capital items because they are not expected to last as long. Raw materials are the basic natural materials that actually become part of a physical product. They include minerals, chemicals, agricultural products, and materials from forests and oceans. Component parts become part of the physical product and are either finished items ready for assembly or products that need little processing before assembly. Although they become part of a larger product, component parts often can be identified and distinguished easily. Spark plugs, tires, clocks, brakes, and head lights are all component parts of an automobile. Process materials are used directly in the production of other products. Unlike component parts, however, process materials are not readily identifiable. For example, a salad dressing manufacturer includes vinegar in its salad dressing. MRO supplies are maintenance, repair, and operating items that facilitate production and operations but do not become part of the finished product. Paper, pencils, oils, cleaning agents, and paints are in this category. 6. Discuss the dimensions of a product mix. Answer: A product mix is the composite, or total, group of products that an organization makes available to customers. Procter & Gamble’s product mix comprises all the healthcare, beauty care, laundry and cleaning, food and beverage, paper, cosmetic, and fragrance products the firm manufactures. The width of product mix is measured by the number of product lines a company offers. General Electric offers multiple product lines, including consumer products such as housewares, health-care products such as molecular imaging, and commercial engines for the military. The depth of product mix is the average number of different product items offered in each product line. Procter & Gamble is known for using distinctive branding, packaging, segmentation, and consumer advertising to promote individual items in its detergent product line. Tide, Bold, Gain, Cheer, and Era—all Procter & Gamble detergents—share the same distribution channels and similar manufacturing facilities, but each is promoted as a distinctive product, adding depth to the product line. 7. Identify the major stages of the product life cycle, and explain how industry sales and profits vary across these stages. Answer: A product life cycle has four major stages: introduction, growth, maturity, and decline. As a product moves through its cycle, the strategies relating to competition, pricing, distribution, promotion, and market information must be evaluated periodically and possibly changed. The introduction stage of the product life cycle begins at a product’s first appearance in the marketplace, when sales start at zero and profits are negative. Profits are below zero because initial revenues are low, and the company generally must cover large expenses for product development, promotion, and distribution. During the growth stage, sales rise rapidly; profits reach a peak and then start to decline. The growth stage is critical to a product’s survival because competitive reactions to the product’s success during this period will affect the product’s life expectancy. Profits begin to decline late in the growth stage as more competitors enter the market, driving prices down and creating the need for heavy promotional expenses. During the maturity stage, the sales curve peaks and starts to decline, and profits continue to fall. This stage is characterized by intense competition because many brands are now in the market. Competitors emphasize improvements and differences in their versions of the product. As a result, during the maturity stage, weaker competitors are squeezed out of the market. During the decline stage, sales fall rapidly. When this happens, the marketer considers pruning items from the product line to eliminate those not earning a profit. The marketer also may cut promotion efforts; eliminate marginal distributors, and finally, plan to phase out the product. 8. Explain the major stages of the product adoption process. Answer: The stages of the product adoption process are awareness, interest, evaluation, trial, and adoption. In the first stage, when individuals become aware that the product exists, they have little information about it and are not concerned about obtaining more. Consumers enter the interest stage when they are motivated to get information about the product’s features, uses, advantages, disadvantages, price, or location. During the evaluation stage, individuals consider whether the product will satisfy certain criteria that are crucial to meeting their specific needs. In the trial stage, they use or experience the product for the first time, possibly by purchasing a small quantity, taking advantage of free samples, or borrowing the product from someone. Individuals move into the adoption stage by choosing a specific product when they need a product of that general type. Entering the adoption process does not mean that the person will eventually adopt the new product. Rejection may occur at any stage, including the adoption stage. Both product adoption and product rejection can be temporary or permanent. 9. Discuss the marketing efforts that are likely to be used during the growth stage of the product life cycle. Answer: In the growth stage, profits begin to decline late as more competitors enter the market, driving prices down and creating the need for heavy promotional expenses. At this point, a typical marketing strategy encourages strong brand loyalty and competes with aggressive emulators of the product. During the growth stage, the organization tries to strengthen its market share and develop a competitive niche by emphasizing the product’s benefits. Marketers should also analyze competing brands’ product positions relative to their own brands and take corrective action. Aggressive pricing, including price cuts, is also typical during this stage. As sales increase, management must support the momentum by adjusting the marketing strategy. The goal is to establish and fortify the product’s market position by encouraging brand loyalty. To achieve greater market penetration, segmentation may have to be used more intensely. This requires developing product variations to satisfy the needs of people in several different market segments. As a product gains market acceptance, new distribution outlets usually become easier to obtain. Marketers sometimes move from an exclusive or a selective exposure to a more intensive network of dealers to achieve greater market penetration. Marketers must also make sure the physical distribution system is running efficiently so that customers’ orders are processed accurately and delivered on time. Promotion expenditures may be slightly lower than during the introductory stage but are still quite substantial. As sales increase, promotion costs should drop as a percentage of total sales. A falling ratio between promotion expenditures and sales should contribute significantly to increased profits. The advertising messages should stress brand benefits. Coupons and samples may be used to increase awareness as well as market share. 10. What major changes in a marketing strategy may be required as a product moves into the maturity stage of the product life cycle? Answer: During the maturity phase, the producers who remain in the market are likely to change their promotional and distribution efforts. Advertising and dealer-oriented promotions are typical during this stage of the product life cycle. Marketers also must take into account that as the product reaches maturity, buyers’ knowledge of it attains a high level. Consumers are no longer inexperienced generalists; instead, they are experienced specialists. Marketers of mature products sometimes expand distribution into global markets. Often the products have to be adapted to fit differing needs of global customers more precisely. Because many products are in the maturity stage of their life cycles, marketers must know how to deal with these products and be prepared to adjust their marketing strategies. There are many approaches to altering marketing strategies during the maturity stage. To increase the sales of mature products, marketers may suggest new uses for them. Arm & Hammer has boosted demand for its baking soda by this method, providing multiple uses for this product. Because frozen yogurt has reached the maturity phase, Ben & Jerry’s has released new flavors and yogurt types to appeal to changing consumer tastes. 11. Explain the differences between brand marks and trademarks. Answer: A brand name is the part of a brand that can be spoken—including letters, words, and numbers—such as 7UP or V8. A brand name is often a product’s only distinguishing characteristic. Without the brand name, a firm could not differentiate its products. To consumers, a brand name is as fundamental as the product itself. Indeed, many brand names have become synonymous with the product, such as Scotch Tape, Xerox copiers, and FedEx delivery. Through promotional activities, the owners of these brand names try to protect them from being used as generic names for tape, photocopiers, and overnight shipping. A trademark is a legal designation indicating that the owner has exclusive use of a brand or a part of a brand and that others are prohibited by law from its use. To protect a brand name or brand mark in the United States, an organization must register it as a trademark with the U.S. Patent and Trademark Office. 12. How do sellers benefit from the use of brand names and brand marks? Answer: Sellers benefit from branding because each company’s brands identify its products, which makes repeat purchasing easier for customers. Branding helps a firm to introduce a new product that carries the name of one or more of its existing products because buyers are already familiar with the firm’s existing brands. It facilitates promotional efforts because the promotion of each branded product indirectly promotes all other similarly branded products. Branding also fosters brand loyalty. To the extent that buyers become loyal to a specific brand, the company’s market share for that product achieves a certain level of stability, allowing the firm to use its resources more efficiently. Once a firm develops some degree of customer loyalty for a brand, it can maintain a fairly consistent price rather than continually cutting the price to attract customers. 13. What is brand loyalty? Explain the three degrees of brand loyalty. Answer: Brand loyalty is a customer’s favorable attitude toward a specific brand. If brand loyalty is strong enough, customers may purchase this brand consistently when they need a product in that product category. Customer satisfaction with a brand is the most common reason for loyalty to that brand. There are three degrees of brand loyalty: recognition, preference, and insistence. Brand recognition occurs when a customer is aware that the brand exists and views it as an alternative purchase if the preferred brand is unavailable or if the other available brands are unfamiliar. This is the mildest form of brand loyalty. The term loyalty is clearly used very loosely here. Brand preference is a stronger degree of brand loyalty. A customer definitely prefers one brand over competitive offerings and will purchase this brand if it is available. However, if the brand is not available, the customer will accept a substitute brand rather than expending additional effort finding and purchasing the preferred brand. When brand insistence occurs, a customer strongly prefers a specific brand, will accept no substitute, and is willing to spend a great deal of time and effort to acquire that brand. If a brand-insistent customer goes to a store and finds the brand unavailable, he or she will seek the brand elsewhere rather than purchase a substitute brand. Brand insistence is the strongest degree of brand loyalty; it is a brander’s dream. However, it is the least common type of brand loyalty. 14. What is brand equity, and what are the major elements that underlie brand equity? Answer: A well-managed brand is an asset to an organization. The value of this asset is often referred to as brand equity. Brand equity is the marketing and financial value associated with a brand’s strength in a market. Besides the actual proprietary brand assets, such as patents and trademarks, four major elements underlie brand equity: brand name awareness, brand loyalty, perceived brand quality, and brand associations. Being aware of a brand leads to brand familiarity, which in turn results in a level of comfort with the brand. A familiar brand is more likely to be selected than an unfamiliar brand because the familiar brand often is viewed as more reliable and of more acceptable quality. The familiar brand is likely to be in a customer’s consideration set, whereas the unfamiliar brand is not. 15. What are private distributor brands? Describe their characteristics. Answer: Private distributor brands also called private brands, store brands, or dealer brands are initiated and owned by resellers—wholesalers or retailers. The major characteristic of private brands is that the manufacturers are not identified on the products. Retailers and wholesalers use private distributor brands to develop more efficient promotion, generate higher gross margins, and change store image. Private distributor brands give retailers or wholesalers freedom to purchase products of a specified quality at the lowest cost without disclosing the identities of the manufacturers. Familiar retailer brand names include Sears’s Kenmore and JCPenney’s Arizona. Many successful private brands are distributed nationally. Kenmore appliances are as well-known as most manufacturer brands. Sometimes retailers with successful private distributor brands start manufacturing their own products to gain more control over product costs, quality, and design in the hope of increasing profits. Sales of private labels now account for one out of every four product items sold in supermarkets, drugstores, and mass merchandisers, totaling some $93 billion of retail business. Supermarket private brands are popular globally, too. 16. What are the factors that marketers should consider while selecting a brand name? Answer: Marketers should consider several factors in selecting a brand name. First, the name should be easy for customers to say, spell, and recall. Short, one-syllable names, such as Cheer, often satisfy this requirement. Second, the brand name should indicate the product’s major benefits and, if possible, should suggest in a positive way the product’s uses and special characteristics; negative or offensive references should be avoided. For example, the brand names of household cleaning products such as Vanish toilet bowl cleaner, Formula 409 multipurpose cleaner, and Wisk laundry detergent connote strength and effectiveness. There is evidence that consumers are more likely to recall and to evaluate favorably names that convey positive attributes or benefits. Third, to set it apart from competing brands, the brand should be distinctive. Google, for example, renamed its online services Blogger and Picasa to Google Blogs and Google Photos, respectively, in an effort to make all of the company’s products carry the same brand name. If a marketer intends to use a brand for a product line, that brand must be compatible with all products in the line. Finally, a brand should be designed so that it can be used and recognized in all types of media. Finding the right brand name has become a challenging task because many obvious product names have already been used. 17. What steps should a marketer take to protect a brand name from use by others? Answer: A marketer should design a brand so that it can be protected easily through registration. To protect its exclusive rights to a brand, a company must ensure that the brand is not likely to be considered an infringement on any brand already registered with the U.S. Patent and Trademark Office. A marketer should guard against allowing a brand name to become a generic term used to refer to a general product category. Generic terms cannot be protected as exclusive brand names. For example, aspirin, escalator, and shredded wheat—all brand names at one time—eventually were declared generic terms that refer to product classes. Thus, they could no longer be protected. To keep a brand name from becoming a generic term, the firm should spell the name with a capital letter and use it as an adjective to modify the name of the general product class, as in Kool-Aid Brand Soft Drink Mix. Including the word brand just after the brand name is also helpful. An organization can deal with this problem directly by advertising that its brand is a trademark and should not be used generically. The firm also can indicate that the brand is a registered trademark by using the registered symbol. 18. Discuss the branding policies marketers can use. What are the two policies used by a firm to brand its products? Answer: Before establishing branding policies, a firm must decide whether to brand its products at all. If a company’s product is homogeneous and is similar to competitors’ products, it may be difficult to brand in a way that will generate brand loyalty. Raw materials such as coal, sand, and farm produce are hard to brand because of the homogeneity of such products and their physical characteristics. If a firm chooses to brand its products, it may use individual branding, family branding, or a combination. Individual branding is a policy of naming each product differently. Nestlé S.A. is the world’s largest food and nutrition company. Nestlé uses individual branding for many of its 6,000 different brands, such as NESCAFÉ coffee, PowerBar nutritional food, Maggi soups, and HäagenDazs ice cream. A major advantage of individual branding is that if an organization introduces an inferior product, the negative images associated with it do not contaminate the company’s other products. An individual branding policy also may facilitate market segmentation when a firm wishes to enter many segments of the same market. Separate, unrelated names can be used, and each brand can be aimed at a specific segment. When using family branding, all of a firm’s products are branded with the same name or at least part of the name, such as Kellogg’s Frosted Flakes, Kellogg’s Rice Krispies, and Kellogg’s Corn Flakes. In some cases, a company’s name is combined with other words to brand items. Arm & Hammer uses its name on all its products, along with a general description of the item, such as Arm & Hammer Heavy Duty Detergent, Arm & Hammer Pure Baking Soda, and Arm & Hammer Carpet Deodorizer. Unlike individual branding, family branding means that the promotion of one item with the family brand promotes the firm’s other products. 19. What is co-branding? Explain what makes co-branding effective. Answer: Co-branding is the use of two or more brands on one product. Marketers employ co-branding to capitalize on the brand equity of multiple brands. Co-branding is popular in several processed-food categories and in the credit card industry. The brands used for co-branding can be owned by the same company. For example, Kraft’s Lunchables product teams the Kraft cheese brand with Oscar Mayer lunchmeats, another Kraft-owned brand. The brands also may be owned by different companies. Credit card companies such as American Express, Visa, and MasterCard, for instance, team up with other brands such as General Motors, AT&T, and many airlines. Effective co-branding capitalizes on the trust and confidence customers have in the brands involved. The brands should not lose their identities, and it should be clear to customers which brand is the main brand. Nike and Apple successfully teamed up to release a co-branded running shoe, the Nike +. It syncs with an iPod to track running performance. The co-branded shoe and iPod accessories helped boost sales for both brands. It is important for marketers to understand that when a co-branded product is unsuccessful, both brands are implicated in the product failure. To gain customer acceptance, the brands involved must represent a complementary fit in the minds of buyers. Trying to link a brand such as Harley-Davidson with a brand such as Healthy Choice will not achieve co-branding objectives because customers are not likely to perceive these brands as compatible. 20. What functions do packages perform? What are the factors marketers should consider when developing packages? Answer: Effective packaging involves more than simply putting products in containers and covering them with wrappers. First, packaging materials serve the basic purpose of protecting the product and maintaining its functional form. Fluids such as milk and orange juice need packages that preserve and protect them. The packaging should prevent damage that could affect the product’s usefulness and thus lead to higher costs. Because product tampering has become a problem, several packaging techniques have been developed to counter this danger. Some packages are also designed to deter shoplifting. Another function of packaging is to offer convenience to consumers. For example, small, aseptic packages—individualsize boxes or plastic bags that contain liquids and do not require refrigeration—strongly appeal to children and young adults with active lifestyles. The size or shape of a package may relate to the product’s storage, convenience of use, or replacement rate. Small, single-serve products may prevent waste, make storage easier, and promote greater consumption. A third function of packaging is to promote a product by communicating its features, uses, benefits, and image. Sometimes a reusable package is developed to make the product more desirable. For example, the Cool Whip package can be reused as a food-storage container. As they develop packages, marketers must take many factors into account. Obviously, one major consideration is cost. Although a number of different packaging materials, processes, and designs are available, costs vary greatly. In recent years, buyers have shown a willingness to pay more for improved packaging, but there are limits. Marketers should consider how much consistency is desirable among an organization’s package designs. No consistency may be the best policy, especially if a firm’s products are unrelated or aimed at vastly different target markets. To promote an overall company image, a firm may decide that all packages should be similar or include one major element of the design. This approach is called family packaging. Sometimes it is used only for lines of products, as with Campbell’s soups, Weight Watchers’ foods, and Planters Nuts. 21. In what ways can packaging be used strategically? Answer: Packaging can be a major component of a marketing strategy. A new cap or closure, a better box or wrapper, or a more convenient container may give a product a competitive advantage. The right type of package for a new product can help it to gain market recognition very quickly. The company produces high-quality organic baby food packaged in convenient resealable pouches. Even though the package costs more to use than the traditional glass jar packaging, its design with the zipper closure decreases the time it takes to heat up the baby food, allows it to fit more conveniently in diaper bags, and keeps food fresh for three days after it is first opened. At times, a marketer changes a package or labeling because the existing design is no longer in style, especially when compared with the packaging of competitive products. A package may be redesigned because new product features need to be highlighted or because new packaging materials have become available. An organization may also decide to change a product’s packaging to make the product safer or more convenient to use. A product’s packaging can also be changed to make it easier to handle in the distribution channel—for example, by changing the outer carton or using special bundling, shrink-wrapping, or pallets. In some cases, the shape of the package is changed. Outer containers for products are sometimes changed so that they will proceed more easily through automated warehousing systems. Marketers also use innovative or unique packages that are inconsistent with traditional packaging practices to make the brand stand out from its competitors. Finally, multiple packaging can also be an implemented in a firm’s packaging strategy. Rather than packaging a single unit of a product, marketers sometimes use twin-packs, tri-packs, six-packs, or other forms of multiple packaging. Multiple packaging may increase demand because it increases the amount of the product available at the point of consumption. It also may increase consumer acceptance of the product by encouraging the buyer to try the product several times. Multiple packaging can make products easier to handle, store, and increase consumption. 22. What are the major functions of a label? Answer: Labeling is very closely interrelated with packaging and is used for identification, promotional, informational, and legal purposes. Labels can be small or large relative to the size of the product and carry varying amounts of information. A label can be a part of the package itself or a separate feature attached to the package. The label on a can of Coke is actually part of the can, whereas the label on a two-liter bottle of Coke is separate and can be removed. Information presented on a label may include the brand name and mark, the registered trademark symbol, package size and content, product features, nutritional information, potential presence of allergens, type and style of the product, number of servings, care instructions, directions for use and safety precautions, the name and address of the manufacturer, expiration dates, seals of approval, and other facts. Labeling can be an important part of the marketing strategy. The above label can be attached to the packaging to communicate that the product is eco-friendly. Labeling can include claims about sustainability as well as other information that is potentially valuable to the buyer. Labels can facilitate the identification of a product by displaying the brand name in combination with a unique graphic design. By drawing attention to products and their benefits, labels can strengthen an organization’s promotional efforts. Labels may contain promotional messages such as the offer of a discount or a larger package size at the same price or information about a new or improved product feature. Several federal laws and regulations specify information that must be included on the labels of certain products. Food product labels must state the number of servings per container, serving size, number of calories per serving, number of calories derived from fat, number of carbohydrates, and amounts of specific nutrients such as vitamins. 23. A(n) ____________ is a concept, philosophy, or image. A. product B. good C. idea D. service E. issue Answer: C 24. MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets ________. A. services B. ideas C. goods D. tangible products E. features Answer: B 25. To make intangible products more tangible or real to the consumer, marketers often ________. A. use low prices on intangible goods B. use symbols or cues to help symbolize product benefits C. use external reference prices D. use multiple channels of distribution E. offer more support services with such products Answer: B 26. Products are classified as being business or consumer products according to the ________. A. number of buyers involved in the decision B. buyer's intended use of the product C. seller's purpose of selling the product D. location of use E. types of outlets from which they are purchased Answer: B 27. Ava, a purchasing agent for Trailsend Transport, plans to buy a carpet from Carpet One Inc. for use in an office area at Trailsend. While discussing the details of the carpet with the sales representative of Carpet One, he informs her that she can see the actual product in one of their retail stores before finalizing the purchase. Ava now decides not only to approve the purchase for the office, but also to purchase some of the same carpet for her home. The first carpet purchased is considered as a business product and the second carpet purchased is considered to be a(n) ________. A. double purchase B. secondary product C. idea D. consumer product E. service Answer: D 28. Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam’s Club, an auto repair shop, and has a new tire installed. Ryan’s purchase of a new tire in this situation is considered to be a(n)________. A. shopping good B. convenience good C. unsought good D. specialty good E. industrial good Answer: C 29. Which of the following types of products would Energizer batteries be classified as? A. Convenience product B. Shopping product C. Specialty product D. Unsought product E. Industrial service Answer: A 30. Lindsay stops by the Safeway grocery, her preferred store, on her way home from work. She picks up her usual brand of laundry detergent and orange juice, but she sees that there are no more range-free eggs available. Lindsay is very concerned about the ethical treatment of animals and so she leaves Safeway and goes to another grocery to purchase the rangefree eggs. Lindsay’s purchase of the eggs would most likely be classified as ____________ products. A. brand loyal B. shopping C. specialty D. unsought E. convenience Answer: B 31. What type of product does Dannon Yogurt represent for most consumers? A. Convenience B. Business C. Unsought D. Specialty E. Durable Answer: A 32. Convenience products are ________. A. relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort B. inexpensive items for which buyers are willing to exert considerable effort C. rarely purchased items that are found in certain retail outlets D. items that are expensive but are easy to purchase E. items that require some purchase planning and for which the buyer often will not accept substitutes Answer: A 33. Which of the following statements does not apply to convenience goods? A. Consumers are brand loyal to convenience products and are not likely to substitute other brands. B. Convenience products require minimal shopping effort. C. Marketing of convenience products requires intensive exposure of these goods in as many stores as possible. D. Consumers tend to feel that the most desirable retail facility for convenience products is the closest one. E. Colas, gasoline, and bread are good examples of convenience goods. Answer: A 34. Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____________ products. A. shopping B. specialty C. service D. convenience E. unsought Answer: A 35. Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Southwest Air Lines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product? A. Shopping B. Convenience C. Specialty D. Unsought E. Durable Answer: A 36. ____________ products have a lower inventory turnover and need fewer distribution outlets than convenience goods. A. Seasonal B. Unsought C. Specialty D. Durable E. Shopping Answer: E 37. Byron is interested in buying an antique vase for his grandmother’s birthday. He visits an antique store and buys the first vase he sees because it is something he thinks his grandmother would like. Byron does not visit another store and compare other vases. For Byron, this purchase is most likely considered a(n) ____________ good. A. convenience B. specialty C. shopping D. unique E. unsought Answer: B 38. The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ____________ product. A. convenience B. shopping C. specialty D. unsought E. durable Answer: C 39. A specialty product ________. A. requires minimal effort to purchase B. is purchased frequently C. requires purchase planning and the buyer will not accept substitutes D. is generally less expensive than other items in the same product class E. prompts the purchaser to make comparisons among alternatives Answer: C 40. David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ___________ product. A. shopping B. unique C. specialty D. historical E. unsought Answer: C 41. As Beth and Rob search for a new home, they are interested only in houses built by a particular builder. This purchase is a characteristic of a(n) ____________ product. A. branded B. non-durable C. unique D. shopping E. specialty Answer: E 42. Jose went skiing one weekend with several of his friends. While at the slope, Jose injured his leg and needed to see a doctor. Jose is likely going to view the solutions to his problem as ________. A. specialty products B. installations C. unsought products D. shopping products E. convenience products Answer: C 43. Nick Arnold's Plumbing Repair Company would best be described as a(n) ____________ product. A. convenience B. unsought C. specialty D. durable E. shopping Answer: B 44. Business products are ________. A. purchased for personal consumption B. chosen on the basis of preferences expressed by a business procurement department C. purchased for both their functional aspects and their psychological rewards D. classified according to their characteristics and intended uses E. not purchased by private organizations Answer: D 45. Facilities, factories, and production lines with very large equipment are all classified as ________. A. accessory equipment B. permanents C. installations D. component parts E. MRO facilities Answer: C 46. Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product? A. Raw materials B. Installations C. Accessory equipment D. Component parts E. Process materials Answer: B 47. The production manager of an engineering firm went out and bought a metal cutting machine. The metal cutting machine can best be classified as a(n) ________. A. raw material B. processed component C. component part D. service E. accessory equipment Answer: E 48. An accountant buys pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered as: A. MRO supplies. B. process materials. C. raw material. D. convenience. E. consumer. Answer: A 49. Intuitiv Manufacturing’s large plastics molding machine suddenly broke down during its day shift. When considering the purchase of available alternatives, Intuitiv decided to rent one for the next two years instead of buying one. In this situation, the large plastics molding machine it rented would be classified as ________. A. an installation B. accessory equipment C. an unsought good D. a process material E. MRO supplies Answer: A 50. Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and ________. A. production activities B. service assistance C. specialty industrial products D. computer programming and operation services E. MRO supplies Answer: E 51. Minerals, chemicals, timber, and agricultural products are considered as ________. A. process materials B. accessory materials C. MRO supplies D. component parts E. raw materials Answer: E 52. A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of ________. A. raw materials B. installations C. accessory equipment D. component parts E. process materials Answer: C 53. Although they become part of a larger product, ____________ can often be easily identified and distinguished on the larger product. A. component parts B. accessory parts C. raw materials D. process materials E. MRO supplies Answer: A 54. Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital items are known as ________. A. raw materials B. installations C. accessory equipment D. component parts E. process materials Answer: C 55. A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n) ________. A. component part B. specialty item C. accessory equipment D. raw material E. process material Answer: A 56. Brain Games Inc. is a marketing research company which markets primarily to consumer products organizations. Brain Games provides products that are most likely considered ________. A. component parts B. MRO supplies C. process ideas D. business services E. installations Answer: D 57. Products used directly in the production of a final product but are not easily identifiable are categorized as ________. A. accessory products B. component parts C. MRO supplies D. assembly components E. process materials Answer: E 58. A product item is best described as a ________. A. component of a marketing mix B. particular brand C. specific characteristic of a product D. specific version of a product E. unit of measure for the product Answer: D 59. Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product ________. A. line B. item C. mix D. width E. depth Answer: C 60. A product line is defined as ________. A. products that can be designated as a unique offering among the organization's products B. products that an organization makes available to consumers C. a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations D. a specific group of products that are offered to the market E. same products that are sold by different firms Answer: C 61. Brunswick's bowling balls, bowling bags, and shoes are individual product ____________ for this sporting goods manufacturer. A. menus B. mixes C. lines D. life cycles E. ensembles Answer: C 62. A product mix is best described as ________. A. all products offered by a firm B. product, distribution, promotion, and price C. similar products sold by one firm D. all products of a particular type E. a group of products that are considered a unit because of market, technical, or end-use considerations Answer: A 63. The depth of a product mix is measured by the average number of: A. convenience products as compared with the number of specialty products. B. different product lines offered by the company. C. different products items offered in each product line. D. specialty products as compared with the number of convenience products. E. product features that the company offers. Answer: C 64. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix ________. A. width B. depth C. length D. volume E. life cycle Answer: B 65. A company markets such diverse products as Rosita Mexican foods, Swizz Max cosmetics, and Blueberry bags. These various offerings exhibit this firm's product mix ________. A. width B. depth C. length D. volume E. dimension Answer: A 66. The width of a product mix is measured by the number of product ________. A. dimensions in the product line B. features in each brand C. items in the product line D. lines a company offers E. specialties a company offers Answer: D 67. The four major stages of a product life cycle include ________. A. prosperity, recession, depression, and recovery B. specialty, convenience, shopping, and unsought goods C. decline, stabilization, exposure, and growth D. introduction, growth, maturity, and decline E. awareness, interest, trial, and adoption Answer: D 68. Sales of Schwinn’s apartmentsized exercise machine have experienced a steady climb; however, the profits have been negative. The Schwinn exercise machine is most likely in the ____________ stage of the product life cycle. A. decline B. growth C. initial D. maturity E. introduction Answer: E 69. Marissa, a product manager, thinks her company’s InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for InstaCup coffee maker ____________ and the number of competitors are growing. A. are negative B. have peaked C. are declining D. are zero E. are declining Answer: B 70. In which stage of the product life cycle do profits start to decline? A. Introduction B. Growth C. Maturity D. Decline E. Recovery Answer: B 71. Grand Resorts Hawaii has just celebrated its first profit since the opening, two years ago. Grand Resorts Hawaii is most likely in the ____________ stage of the product life cycle. A. maturity B. growth C. introduction D. market testing E. stability Answer: B 72. The ____________ stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy. A. decline B. expansion C. growth D. introduction E. stabilization Answer: C 73. During the growth stage of the product life cycle, marketers must ________. A. fortify the product position B. move to exclusive distribution C. raise the price D. increase promotion as a percentage of sales E. introduce private brands Answer: A 74. Aggressive pricing is typical during the ____________ stage of the product life cycle. A. decline B. growth C. introduction D. plateau E. stabilization Answer: B 75. Achieving greater market penetration is a typical business goal during the ____________ stage of the product life cycle. A. maturity B. growth C. introduction D. market testing E. decline Answer: B 76. Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle? A. Intensive segmentation to achieve greater market penetration B. Raising promotion expenditures as a percentage of total sales C. Moving from intensive to selective distribution D. Raising prices to encourage competitors to enter the market E. Reducing the number of product models in the product line Answer: A 77. During the ____________ stage of the product life cycle, weaker competitors are squeezed out of the market. A. maturity B. growth C. introduction D. market reduction E. decline Answer: A 78. During the maturity stage, ________. A. product modifications are unnecessary B. less emphasis is on changing a product's price C. profits continue to rise D. the sales curve peaks and starts to decline E. the advertising expenditures are limited Answer: D 79. When a product experiences an increase in the number of competitors, it is usually in the growth stage of the product life cycle; however, when that competition becomes intense, it is in the ____________ stage. A. introduction B. branding C. decline D. maturity E. adoption Answer: D 80. The makers of Tide Detergent recently created “pods” of the product, characterized by a small, square, plasticwrapped packet that was easier to use. Since it is packaged in these square pods, it requires no measuring and can be transported more easily if one is carrying clothes to a Laundromat. This change in packaging is a strategy that can most likely help boost sales in the ____________ stage of the product life cycle. A. maturity B. growth C. introduction D. market reduction E. decline Answer: A 81. Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer? A. Maturity B. Growth C. Introduction D. Market reduction E. Decline Answer: A 82. One of Cole’s responsibilities as a marketing manager for a motorcycle parts manufacturer is to maintain market share. Cole believes that the company’s products are most likely in the maturity stage of the product life cycle. In order to maintain market share, Cole should suggest that the company requires ________. A. moderate to large promotion expenditures B. moderate to large inventory expenditures C. moderate production expenditures D. moderate price increases E. moderate price decreases Answer: A 83. The producers of Schick razor blades use a marketing strategy that includes large promotion expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ____________ stage of the product life cycle. A. decline B. evaluation C. growth D. introduction E. maturity Answer: E 84. Dish Network cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ____________ stage of its life cycle. A. introduction B. growth C. maturity D. early E. decline Answer: E 85. During the decline stage of the product life cycle, ________. A. sales fall rapidly B. the sales curve peaks and starts to decline C. competition is at its peak D. profits are below zero E. profits peak and then begin to decline Answer: A 86. The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____________ stage. A. maturity B. decline C. growth D. introduction E. reorganization Answer: B 87. Marketers are least likely to change a product's design, style, or other attributes in the ____________ stage. A. introduction B. maturity C. decline D. growth E. removal Answer: C 88. Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the ____________ stage of the product life cycle as possibilities for elimination. A. not yet developed B. growth C. introduction D. maturity E. decline Answer: E 89. Electronics Pro is a company that manufactures CD drives for laptop computers which are sold to major computer producers. Electronics Pro realizes that CD drives are most likely in the decline stage of the product life cycle. Which of the following steps can the company take with regard to its CD drive product? A. Reintroduce the product B. Increase product promotion C. Attempt to postpone the decline D. Reinvest in the brand E. Phase out the product Answer: E 90. As Jessica enters Audio Jetz car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with coffee-warming app. She answers that she didn't know that this type of app for cars was available. Based on this information, Jessica is currently in the ____________ stage of the product adoption process for this item. A. awareness B. interest C. evaluation D. trial E. adoption Answer: A 91. When Fiat offers to let qualified buyers, test drive the new Fiat Doblo Van, the dealer is trying to stimulate the ____________ stage of the product adoption process. A. awareness B. interest C. evaluation D. trial E. adoption Answer: D 92. When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ____________ stage of the product adoption process. A. awareness B. interest C. evaluation D. trial E. adoption Answer: D 93. An individual knows that a product exists, but has little information regarding the product and does not seek additional information. The individual is in the ____________ stage of the product adoption process. A. trial B. adoption C. interest D. awareness E. evaluation Answer: D 94. An individual considers whether a product will meet certain criteria that are critical for meeting his or her needs. The individual is in the ____________ stage of the product adoption process. A. interest B. awareness C. evaluation D. trial E. adoption Answer: C 95. An individual moves into the adoption stage of the adoption process at the point when he or she ________. A. is self-motivated to get information about the product B. begins using that specific product C. seriously considers whether the product will satisfy his or her needs D. tests the product E. becomes aware of the existence of the product Answer: B 96. Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and ________. A. late adopters B. nonadopters C. innovators D. middle adopters E. early innovators Answer: C 97. While Alec’s grandfather still prefers using a land line, he just bought his first cell phone. Alec’s grandfather is most likely oriented toward the past and is a member of the ___________ group. A. non-adopters B. laggards C. innovators D. late adopters E. late majority Answer: B Scenario 10.1 Use the following to answer the questions. Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998, Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. 98. Refer to Scenario 10.1. In which of the following classification of consumer products do shaving razors fall? A. Convenience products B. Shopping products C. Substitute products D. Specialty products E. Accessory equipment Answer: A 99. Refer to Scenario 10.1. Molly has been using a Bic disposable razor for her shaving needs for the last ten years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more difficult to find the Bic, and so she is considering the Venus Embrace. Molly is more likely a(n)____________ in the product adopter categories. A. late adopter B. innovator C. early adopter D. early majority E. late majority Answer: E 100. Refer to Scenario 10.1. Tasha is shopping for personal care items at her local Target. She walks by one aisle and sees a floor-standing display for the new Aster Care. She hadn't thought about buying a new razor, but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in, at the present time? A. Awareness B. Attention C. Evaluation D. Trial E. Adoption Answer: A Scenario 10.2 Use the following to answer the questions. Traveler is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional StarTravel Lines, Traveler is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Traveler picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Traveler.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor StarTravel, has launched two new bus lines, Pathfinder and Mestra, with similar fares and high-tech amenities. A fare on Mestra bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of StarTravel's traditional line is that there are more departure times and more stops in smaller towns along the way. 101. Refer to Scenario 10.2. When StarTravel launched the Pathfinder and Mestra bus lines, this is an example of ________. A. a branding extension B. co-branding C. an extension in the width of the product mix D. an extension in the depth of the product mix E. family branding Answer: D 102. Refer to Scenario 10.2. Casey is searching the website of Traveler.com for the schedule and fares of a trip between Buffalo, NY and New York City. Casey is most likely in the ____________ stage of the product adoption process. A. adoption B. trial C. evaluation D. interest E. awareness Answer: D 103. Refer to Scenario 10.2. The closest competitor for Traveler is StarTravel. StarTravel has been in business for many years, offering basic transportation services until the introduction of their new Pathfinder and Mestra. Both companies are in the bus transportation business, If Traveler is in the introduction stage, StarTravel is most likely in the ____________ stage of the product life cycle. A. maturity B. adoption C. trial D. growth E. decline Answer: A 104. The part of a brand that can be spoken including letters, numbers, and words is known as the ________. A. brand B. brand mark C. brand name D. trade name E. trademark Answer: C 105. Kleenex Boutique is a ____________ of tissues made by the Kimberly-Clark Corporation. A. brand mark B. brand identification C. brand name D. trademark E. trade name Answer: C 106. McDonald's golden arches are a classic example of a ________. A. brand B. brand symbol C. brand name D. brand mark E. trademark Answer: D 107. A distinguishing factor between a brand name and a brand mark is that a brand name ________. A. creates customer loyalty B. consists of words C. identifies only one item in the product mix D. is registered with the U.S. Patent and Trademark Office E. implies an organization's name Answer: B 108. Brands provide all of the following benefits for buyers except that they do not ________. A. foster brand loyalty B. help identify specific products C. help buyers evaluate the quality of products D. offer psychological rewards. E. reduce perceived risk of purchase Answer: A 109. A trademark signifies ________. A. that the owner has exclusive use of a brand and others are prohibited from using it B. that a product was manufactured by a particular company C. the full and legal name of an organization D. the level of quality of a product based on its legally protected rights E. the inventive use of a brand name or brand mark to identify a company's products Answer: A 110. iPod is the ____________ of the MP3 player made by Apple, Inc. A. trade name B. brand mark C. trade label D. brand E. identifier Answer: A 111. The full and legal name of an organization is called the ________. A. trademark B. legal title C. organizational name D. brand name E. trade name Answer: E 112. Joe is an athlete who plays a variety of sports that require various athletic shoes. He has a favorable attitude toward Nike shoes. This favorable attitude is called brand ________. A. loyalty B. recognition C. preference D. insistence E. equity Answer: A 113. The weakest level of brand loyalty is brand ________. A. recognition B. insistence C. equity D. trial E. preference Answer: A 114. The three levels of brand loyalty from the strongest to the weakest are ________. A. preference, insistence, recognition B. insistence, recognition, preference C. insistence, preference, recognition D. recognition, preference, insistence E. insistence, preference, indifference Answer: C 115. When a customer is aware that a brand exists and considers it a possibility if his preferred brand is out, he exhibits brand ________. A. loyalty B. insistence C. preference D. acknowledgement E. recognition Answer: E 116. Riley usually buys Pantene Shampoo for Colored Hair, however, if that is not in stock, she will buy L’Oréal or Garnier Fructis. Riley’s level of brand loyalty can be described as brand ________. A. recognition B. acceptance C. preference D. insistence E. acknowledgement Answer: C 117. A customer must have a particular brand and will accept no substitutes. This is termed brand ________. A. preference B. loyalty C. insistence D. recognition E. requirement Answer: C 118. What degree of brand loyalty is the strongest and most desired by marketers? A. Brand preference B. Brand requirement C. Brand awareness D. Brand insistence E. Brand recognition Answer: D 119. Recently Jose went to a neighborhood grocery store to pick up a few items. When he looked for UltraCool deodorant, it was unavailable. Although there were a number of deodorant brands available, he did not buy any deodorant. Jose's behavior indicates that he most likely has ____________ toward UltraCool deodorant. A. brand recognition B. brand resistance C. brand preference D. brand insistence E. no brand loyalty Answer: D 120. The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand ________. A. loyalty B. value C. share D. equity E. association Answer: D 121. Elements that help create brand equity include all of the following except brand ________. A. quality B. associations C. loyalty D. recognition E. awareness Answer: D 122. Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a customer's ____________ than an unfamiliar brand. A. inept set B. loyalty set C. preference group D. brand group E. consideration set Answer: E 123. The talking gecko used by Geico Insurance facilitates the development of ________. A. brand associations B. brand quality C. product preference D. brand loyalty E. product equity Answer: A 124. Private distributor, manufacturer, and generic are the three types of ________. A. equity B. brands C. producers D. packaging E. trade names Answer: B 125. A ____________ brand usually requires a producer to become involved in distribution, promotion, and pricing decisions. A. dealer B. manufacturer C. private distributor D. store E. wholesaler Answer: B 126. Another common name for a private distributor brand is a ____________ brand. A. home B. manufacturer C. generic D. store E. label Answer: D 127. Private distributor brands are owned by ________. A. manufacturers only B. manufacturers and retailers C. wholesalers only D. manufacturers and wholesalers E. wholesalers or retailers Answer: E 128. Craftsman tools sold and branded by Sears is an example of a ____________ brand. A. manufacturer B. generic C. wholesaler D. private distributor E. regional Answer: D 129. The major characteristic of a private brand is that ________. A. only manufacturers initiate and own the brand B. manufacturers are not identified on the product C. they generate lower gross margins D. these brands are exclusive and never distributed nationally E. retailers purchase these products of a specified quality at the highest cost Answer: B 130. A product that indicates only the product category and do not include the company name or other identifying terms is known as a ________. A. private brand B. no-name product C. generic brand D. poor quality item E. lean manufacturer brand Answer: C 131. While shopping at a landscaping store, Jessie sees a green bag labeled “potting soil.” This is an example of ________. A. streamline packaging B. generic branding C. store branding D. individual branding E. category-consistent packaging Answer: B 132. A package of aluminum foil at Kroger supermarket has only a white package with black letters stating “aluminum foil.” This product is an example of a ____________ brand. A. manufacturer's B. private distributor's C. no-name D. generic E. no-frills Answer: D 133. A ____________ brand type is considered the least protectable under existing trademark regulations. A. descriptive B. fanciful C. generic D. symbolic E. suggestive Answer: C 134. Which of the following is the most protectable brand type as determined by a series of court decisions? A. Generic brand B. Suggestive brand C. Descriptive brand D. Arbitrary brand E. Fanciful brand Answer: E 135. Through a series of court decisions, a hierarchy of brand protection based on brand type has been created. These brand types include all but ____________ brands. A. arbitrary B. descriptive C. fanciful D. generic E. symbolic Answer: E 136. Besides generic names, what other types of names are very difficult to protect? A. Names created by the company B. Surnames and geographic names C. Arbitrarily chosen names not related to the product D. Arbitrarily chosen names related closely to the product E. Names that contain shapes and colors Answer: B 137. Registration of a trademark with the U.S. Patent and Trademark Office protects trademarks domestically for ____________ years with indefinite renewals. A. two B. thirty C. eighteen D. five E. ten Answer: E 138. Which of the following laws was enacted by Congress in 1988 to strengthen trademark protection? A. Brand Protection Act B. Lanham Act C. Trademark Infringement Act D. Trademark Law Revision Act E. U.S. Patent and Trademark Act Answer: D 139. The policy of naming each product differently is known as ____________ branding. A. brand-extension B. family C. differentiated D. individual E. new-product Answer: D 140. A major advantage of using individual branding is that ________. A. the promotion of one of the company's brands will also promote the company's other brands B. this branding policy will prevent the overextension of a brand name to products that are completely unrelated to the original C. a poor quality product will not contaminate all of the company's other products with negative images D. a specific brand name for each product will help the company grow during times of economic recession E. the quality of one of the company's products will help increase the perceived quality image of the company's other related products Answer: C 141. When ____________ branding is used, each of the firm's products is branded with at least part of the same name. A. individual B. trademark C. family D. selective E. brand-extension Answer: C 142. A(n) ____________ occurs when an organization uses one of its existing brands to brand a new product in a different product category. A. brand-extension B. brand-licensing C. family branding D. individual branding E. new-product branding Answer: A 143. Gorton's sells Gorton's Fish Sticks, Gorton's Fish Fillets, and Gorton Grilled Fish. This is an example of ________. A. family branding B. shared naming C. individual branding D. brand extension E. single branding Answer: A 144. ____________ is the use of two or more brands on one product. A. Brand extension B. Brand licensing C. Family branding D. Co-branding E. Cohort branding Answer: D 145. When a product tries to capitalize on the brand equity of two separate brands, marketers are using ________. A. licensing B. dual-branding C. partnerships D. brand extension E. co-branding Answer: E 146. Which of the following issues is least important in using co-branding effectively? A. The brands involved should represent a complementary fit in a customer's mind. B. The brands that are teamed together should not lose their individual identities. C. The brands involved should be owned by the same company. D. It should be clear to customers which brand is the main brand in a co-branded product. E. Marketers should understand when a co-branded product is unsuccessful. Answer: C 147. A popular branding strategy involves ________, an agreement in which a company permits another organization to use its brand on other products for an authorizing fee. A. brand licensing B. brand extensions C. dual-branding D. co-branding E. cooperative branding Answer: A 148. A Sony laptop that has an “Intel” logo on its keyboard is an example of ________. A. brand extension B. brand licensing C. co-branding D. individual branding E. line family branding Answer: C 149. Trying to link a motorcycle brand like Harley-Davidson to a food brand like Healthy Choice would be considered a poor decision in ________. A. co-branding B. individual branding C. family branding D. product branding E. wholesaler branding Answer: A 150. If Subway made an agreement allowing another company to use its brand name on a new supermarket ready-toeat sandwich, this would be known as ________. A. co-branding B. brand extension C. brand licensing D. trademark licensing E. cooperative branding Answer: C 151. In a brand licensing arrangement, the licensee is responsible for ________. A. providing the brand name to another organization for use in promoting products B. collecting the royalties from sales of the licensed products C. half of the financial losses in the event that the licensed brand is a failure D. the production, but not the marketing of the licensed product E. the manufacturing, marketing, and financing of the licensed product Answer: E 152. Marvel Comics allowed various organizations to use its Spiderman and Incredible Hulk characters to market a wide variety of toys and clothing items. Marvel Comics received a percentage of the gross revenues. This is ________. A. brand licensing B. character exploiting C. co-branding D. family branding E. trademark leasing Answer: A 153. Haley is a graphic artist who is currently working on the development of a new container for mustard and mayonnaise. She is also developing its graphic design. Haley is likely working on the product’s ________. A. licensing B. labeling C. promotion D. packaging E. direct media Answer: D 154. The most important function of packaging is to ________. A. encourage co-branding B. protect the product and maintain its functionality C. turn generic brand into a fanciful brand D. provide information to the customer about the company history E. introduce an inferior product as a superior product Answer: B 155. Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____________ function of packaging. A. protection B. reusability C. cost effectiveness D. safety E. convenience Answer: E 156. A firm may decide that all packages should be similar and include one major element of the same design. This approach to promote an overall company image is called ________. A. family extension B. family packaging C. overall packaging D. package extension E. selective packaging Answer: B 157. In marketing, family packaging means ________. A. packaging products in a quantity suitable for use for an average-sized family B. putting a set of related products all in the same package C. making all of a company's or product line's packaging look similar D. putting the same brand name on all a company's products E. designing and selling only products that are related Answer: C 158. All Healthy Choice products come in green boxes with the same Healthy Choice logo. This is an example of the use of ________. A. category-consistent packaging B. family packaging C. multiple packaging D. family branding E. group labeling Answer: B 159. Packages designed to appeal to children often use ________. A. small, aseptic packages B. clear colors and simple designs C. black and white packages D. pastels and soft images E. large, fancy packages Answer: A 160. Packaging is most important, as a strategic tool, for ________. A. consumer convenience products B. consumer shopping products C. industrial products D. consumer specialty products E. services Answer: A 161. The spray bottle for Windex Glass Cleaner could be considered a secondary use package because ________. A. its shape is ideal for multiple-unit packaging B. glass cleaner works on chrome as well as glass C. the spray nozzle has an adjustable valve D. customers can reuse it for other purposes E. it has a shape similar to other glass cleaner bottles Answer: D 162. When Jiffy-Pop packaged its popcorn in an aluminum skillet, complete with attachable handle, it designed the package to become the cooking utensil. After cooking, the handle was removed and the package became the popcorn bowl. JiffyPop’s popcorn in this case is an example of ____________ packaging. A. secondary-use B. multiple C. innovative D. category-consistent E. “green” Answer: C 163. In the United States, toothpaste is sold in tubes and ketchup is sold in plastic bottles. However, in other parts of the world, ketchup and tomato paste are also sold in tubes. If Heinz were to introduce ketchup in tubes in the United States, consumers might have a more difficult time recognizing the ketchup product due to the change in the ________. A. category-consistent packaging B. category-specific packaging C. innovative packaging D. multiple-category packaging E. selective packaging Answer: A 164. Customers will more easily recognize a new product as belonging to a particular product category if the marketers use ________. A. family branding B. innovative packaging C. category-consistent packaging D. category labeling E. product category packaging Answer: C 165. When Glidden introduced interior house paint in plastic gallon containers, including a no-drip spout, this was an example of ____________ packaging. A. category-consistent B. innovative C. traditional D. green E. convenience Answer: B 166. The manufacturers of Miracle-Gro have square boxes of the plant food that serve as a flower-pot liner. The customer just puts the box inside the flower pot, fills it with potting soil, and then adds water. The Miracle-Gro chemical is activated by the water and begins feeding the plant. This would be an example of ____________ packaging. A. multiple B. secondary-use C. innovative D. category-consistent E. handling-improved Answer: C 167. Multiple packaging is ________. A. likely to decrease serving size B. the same as family packaging C. likely to increase demand D. the most effective type of packaging for decreasing demand E. the most expensive type of packaging Answer: C 168. Planters is concerned that acquiring a taste for its new product, honey-roasted macadamia nuts, takes time. Planters should use ____________ packaging for its new product. A. family B. multiple C. tamper-resistant D. unlabeled E. transparent Answer: A 169. Twin-packs and six-packs are examples of ________. A. family packaging B. group packaging C. package bundling D. family branding E. multiple packaging Answer: E 170. Which of the following is not a benefit of multiple packaging? A. Increases the amount of the product available at the point of consumption B. Increases demand C. Increases consumer acceptance of the product D. Makes handling or storage easier E. Offers more product diversity Answer: E 171. Labeling is used for identification, promotional, legal, and ____________ purposes. A. marketing B. branding C. strategy D. informational E. packaging Answer: D 172. The label on a window air conditioner reads “uses up to 20% less energy.” For what reason is this phrase most likely used? A. For environmental safety B. To void competition C. To promote the product D. To satisfy legal requirements E. To encourage healthy competition Answer: C 173. Which of the following statements about labeling is false? A. Labels can be used to facilitate the identification of products. B. Labels can avoid disclosing the nutritional information of products. C. Labels can include product features. D. Labels can include potential presence of allergens. E. Labels can strengthen an organization’s promotional efforts. Answer: B 174. Federal laws and regulations specify information that garments must include on the labels. Garments must be labeled with the country of manufacture, fabric content, and ________. A. clothing style B. size C. inspection code D. care instructions E. universal product code Answer: D 175. As Lisa eats her morning bowl of Golden Grahams cereal, she reads about the calories, fats, carbohydrates, and vitamins she is ingesting. This information is required by the ________. A. Nutrition Labeling Act B. Food and Drug Administration C. Fair Packaging and Labeling Act D. Nutritional Content Disclosure Act E. Federal Trade Commission Answer: A Scenario 10.3 Use the following to answer the questions. The Pillsbury division of General Mills has promoted its baking products through its trade character, the Pillsbury Doughboy, since 1965. He appears in television commercials touting the quality, benefits, and features of the products Pillsbury sells. Each product in the Pillsbury line, such as crescent rolls, pizza dough, biscuits, and cinnamon rolls, includes the Pillsbury name on the package. In addition to the Pillsbury name, the Pillsbury Doughboy also appears on each package, although in different poses. On the Pillsbury website, the Pillsbury Doughboy character is animated and can be seen "dancing". He can be downloaded to your personal computer or used to create your own e-card. 176. Refer to Scenario 10.3. The Pillsbury branding policy is most likely ________. A. individual branding B. family branding C. brand extensions D. co-branding E. brand licensing Answer: B 177. Refer to Scenario 10.3. How does brand loyalty typically affect a customer's purchase decisions? A. It makes every purchase easy. B. It shortens the amount of time and reduces the risk. C. It provides an automatic measure of quality for all products. D. It lengthens the process due to the great effort expended. E. It makes decisions difficult because most people are loyal to many brands. Answer: B 178. Refer to Scenario 10.3. The Pillsbury brand name would be characterized as a ____________ brand. A. private B. manufacturer C. store D. generic E. dealer Answer: B 179. Refer to Scenario 10.3. If Hanes, a manufacturer of t-shirts, were to begin producing a t-shirt with the trade character Pillsbury Doughboy on the front, this would be an example of ________. A. a brand-extension B. co-branding C. brand licensing D. individual branding E. fanciful branding Answer: C Scenario 10.4 Use the following to answer the questions. When Silk Soymilk began packaging its chocolate milk in single-serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were only sold in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they also began offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half-gallon versions. The only difference in packaging style was the brown color for chocolate milk and the color white for vanilla. 180. Refer to Scenario 10.4. Silk Soymilk's strategy of packaging its single-serve boxes of chocolate milk to look like its half-gallon cartons is known as a(n) ________. A. brand extension B. individual packaging C. manufacturer branding D. family packaging E. multiple packaging Answer: D 181. Refer to Scenario 10.4. Silk Soymilk probably increased demand for its single servings by facilitating increased consumption of the product through its practice of ____________ packaging. A. innovative B. category-consistent C. handling-improved D. secondary-use E. multiple Answer: E 182. Refer to Scenario 10.4. Which of the following is not a function of the packaging strategy chosen by Silk Soymilk? A. It protects and preserves the product. B. It offers convenience to customers. C. Its size and shape help make storage easier. D. It is harmful to the environment. E. It most likely appeals to children and those with active lifestyles. Answer: D 183. Refer to Scenario 10.4. If Silk Soymilk were to begin offering Silk Soymilk Chocolate Ice Cream Bars, this would be an example of ________. A. a product line extension B. individual branding C. a brand extension D. a private distributor brand E. co-branding Answer: C 184. A product need not be a physical product. A. True B. False Answer: True 185. A service is intangible and is the result of the application of human or mechanical efforts to people or objects. A. True B. False Answer: True 186. Supporting services, such as installation and guarantees, are included in products. A. True B. False Answer: True 187. The core product element of the total product can include installation, delivery, training, and financing. A. True B. False Answer: False 188. The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product. A. True B. False Answer: True 189. The buyer's intent can determine whether an item is classified as a consumer or a business product. A. True B. False Answer: True 190. Use of the product is the most important means of distinguishing consumer products from business products. A. True B. False Answer: True 191. The two major product categories are business and institutional. A. True B. False Answer: False 192. A product's classification can influence its price, distribution, and promotion. A. True B. False Answer: True 193. Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable. A. True B. False Answer: False 194. Per-unit gross margins on convenience products are relatively high. A. True B. False Answer: False 195. The per-unit gross margin percentage on convenience goods is usually fairly high because they are low-priced items. A. True B. False Answer: False 196. Buyers want to exert only minimal effort to obtain shopping products. A. True B. False Answer: False 197. Services, repair works, and prices may be important considerations in a consumer's decision when purchasing a particular shopping product. A. True B. False Answer: True 198. Obtaining a specialty product involves a considerable amount of comparison activity. A. True B. False Answer: False 199. Accessory equipment becomes a part of the finished product. A. True B. False Answer: False 200. Component parts usually need to be processed significantly before they are used in production. A. True B. False Answer: False 201. Process materials are used directly in the production of products. A. True B. False Answer: True 202. "Business Services" is not a category or type of a business product. A. True B. False Answer: False 203. A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products. A. True B. False Answer: False 204. A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations. A. True B. False Answer: True 205. Product mix refers to a related group of products in the product line. A. True B. False Answer: False 206. The depth of a product mix is measured by the average number of product types in a product line. A. True B. False Answer: True 207. The width of a product mix refers to the number of generic products offered by a company. A. True B. False Answer: False 208. A product mix is the composite or total group of products that an organization makes available to customers. A. True B. False Answer: True 209. Many products never get beyond the introduction stage. A. True B. False Answer: True 210. New products seldom generate enough sales to bring immediate profits. A. True B. False Answer: True 211. Price cuts are typical in a product's growth stage. A. True B. False Answer: True 212. During the growth stage, as sales increase, the promotion costs rise as a percentage of total sales. A. True B. False Answer: False 213. Intensive competition causes price increase during the growth stage of the product life cycle. A. True B. False Answer: False 214. As a product gains market acceptance, new distribution outlets become more difficult to secure during the growth stage of a product's life cycle. A. True B. False Answer: False 215. Profits decline in the maturity stage, largely because of increased competition. A. True B. False Answer: True 216. A seller's profits peak in the maturity stage of a product's life cycle. A. True B. False Answer: False 217. The sales curve peaks in a product's maturity stage. A. True B. False Answer: True 218. As many products are in the maturity stage of the product life cycle, marketers must know how to deal with these products and be prepared to adjust their marketing strategies. A. True B. False Answer: True 219. Promotion decreases in importance during a product's decline stage. A. True B. False Answer: True 220. Advertising used in the decline stage may prolong the life of the product. A. True B. False Answer: True 221. When an organization introduces a new product, people do not begin the adoption process at the same time, nor do they move through the process at the same speed. A. True B. False Answer: True 222. Trial is the first stage of the product adoption process. A. True B. False Answer: False 223. A buyer becomes aware of the product during the evaluation phase of the product adoption process. A. True B. False Answer: False 224. In the awareness stage of the product adoption process, the buyer seeks information about the product. A. True B. False Answer: False 225. "The people to check with" are the early adopters. A. True B. False Answer: True 226. The first adopters of a product are the innovators. A. True B. False Answer: True 227. Early adopters are the first group of consumers to adopt a new product. A. True B. False Answer: False 228. Laggards are the last to adopt a new product and usually distrust new products. A. True B. False Answer: True 229. A brand name is the part of the brand that is spoken. A. True B. False Answer: True 230. Registration of a brand with the U.S. Patent and Trademark Office provides a firm with worldwide rights to use that brand for a specified time period. A. True B. False Answer: False 231. Customers use brands to help judge product quality. A. True B. False Answer: True 232. Every aspect of a brand is subject to a marketer's control. A. True B. False Answer: False 233. The term "cultural branding" describes how a brand conveys a powerful myth that consumers find useful in cementing their identities. A. True B. False Answer: True 234. Brand recognition exists when a customer is aware that the brand exists and views it as an alternative to purchase if the preferred brand is unavailable or if the other available brands are unfamiliar to the customer. A. True B. False Answer: True 235. Brand preference is the strongest form or degree of brand loyalty. A. True B. False Answer: False 236. Brand preference is a degree of brand loyalty in which a customer definitely prefers one brand over competitive offerings and will purchase this brand if available. A. True B. False Answer: True 237. Although difficult to measure, brand loyalty represents the value of a brand to an organization. A. True B. False Answer: False 238. Brand insistence is the degree of brand loyalty in which a customer strongly prefers a specific brand, will accept no substitute, and is willing to spend a great deal of time and effort to acquire that brand. A. True B. False Answer: True 239. Brand insistence is the strongest degree of brand loyalty but the least common type of brand loyalty. A. True B. False Answer: True 240. Brand equity is a customer's favorable attitude toward a specific brand. A. True B. False Answer: False 241. Four major elements underlie brand equity including brand name awareness, brand loyalty, perceived brand quality, and brand associations. A. True B. False Answer: True 242. Compared to an unfamiliar brand, a familiar brand is more likely to be selected by a customer because it is often viewed as reliable and of an acceptable quality. A. True B. False Answer: True 243. Brand equity helps give a brand the power to capture and maintain a consistent market share, which provides stability to an organization's sales volume. A. True B. False Answer: True 244. By law, manufacturers must be identified on the labels of private brands. A. True B. False Answer: False 245. A generic brand indicates only the product category. A. True B. False Answer: True 246. A brand name should indicate the product's major benefits. A. True B. False Answer: True 247. Marketers may use brand names that have absolutely no meaning to avoid negative connotations. A. True B. False Answer: True 248. Brand names should be different from the company name to avoid confusion. A. True B. False Answer: False 249. Suggestive brand names are easier to protect legally than fanciful names. A. True B. False Answer: False 250. The brand name "Minute Rice" would be more difficult to protect legally than "Exxon." A. True B. False Answer: True 251. Individual branding facilitates market segmentation. A. True B. False Answer: True 252. Family branding occurs when all of a firm's products are branded with all or part of the same name. A. True B. False Answer: True 253. The brands used for co-branding cannot be owned by the same company. A. True B. False Answer: False 254. To gain customer acceptance, the two brands involved in co-branding must represent a complementary fit in the minds of buyers. A. True B. False Answer: True 255. Co-branding capitalizes on the trust that customers have in both companies involved. A. True B. False Answer: True 256. Brand licensing gives a company the ability to gain more revenue and low-cost or free promotional exposure. A. True B. False Answer: True 257. Packaging is a neglected component of a marketing strategy. A. True B. False Answer: False 258. Package characteristics help to shape buyers’ impressions of a product at the time of purchase or during use. A. True B. False Answer: True 259. The basic purpose of packaging is to create eye appeal. A. True B. False Answer: False 260. Recently, buyers have shown an unwillingness to pay more for improved packaging. A. True B. False Answer: False 261. Consistency among package designs is essential for an organization's product mix. A. True B. False Answer: False 262. Package safety or convenience features can perform a promotional role. A. True B. False Answer: True 263. Packaging can be used to communicate symbolically the quality or premium nature of a product. A. True B. False Answer: True 264. Family packaging cannot be used for individual product lines; it must apply to the entire product mix of the firm. A. True B. False Answer: False 265. When all packages of a firm are designed to appear similar or include one major element of the design, it is using family packaging. A. True B. False Answer: True 266. A firm can create desirable images and associations regarding its products by its choice of color, design, shape, and texture. A. True B. False Answer: True 267. Lighter colors may be used to make a package appear larger to consumers. A. True B. False Answer: True 268. The use of darker colors in packaging design makes the package appear smaller to consumers. A. True B. False Answer: True 269. Beyond the obvious limitation that the package must be large enough to hold the product, a package can be designed to appear taller or shorter. A. True B. False Answer: True 270. A package can be used to attract customers' attention. A. True B. False Answer: True 271. The Cool Whip container is an example of a secondary-use package. A. True B. False Answer: True 272. Multiple packaging interferes with handling and storage of products. A. True B. False Answer: False 273. Labels facilitate product identification. A. True B. False Answer: True 274. Labeling and packaging are closely interrelated. A. True B. False Answer: True 275. Labeling is most important for branding reasons. A. True B. False Answer: False 276. Labeling is used to perform only two roles: to promote and to inform. A. True B. False Answer: False 277. Nutritional information on labels is optional as consumers are indifferent to its availability. A. True B. False Answer: False 278. The Food and Drug Administration requires that food processors indicate the amount of carbohydrates, calories, and fat in a product. A. True B. False Answer: True 279. The Federal Trade Commission is solely responsible for establishing and enforcing packaging regulations. A. True B. False Answer: False Test Bank for Foundations of Marketing William M. Pride, O. C. Ferrell 9781285429779, 9781439039441
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