marketing chapt 10 pitt

Convenience product

a relatively inexpensive item that merits little shopping effort

shopping product

a product that requires comparison shopping because it usually more expensive than a convenience product and is found in fewer stores

specialty product

a particular item for which consumers search extensively and are very reluctant to accept substitutes

unsought product

a product unknown to the potential buyer or a known product that the buyer doesn’t actively seek

product item

a specific version of a product that can be designated as a distinct offering among an organization’s products

product line

a group of closely related product items

product mix

all products that an organization sells

product mix width

the number of product lines an organization offers

product line depth

the number of product items in a product line

product modification

changing one or more of a product’s characteristics

planned obsolescence

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

product line extension

adding additional products to an existing product line in order to compete more broadly in the industry

brand

a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products

brand name

that part of a brand that can be spoken, including letters, words, and numbers

brand mark

the elements of a brand that cannot be spoken

three main purposes of branding

product identification, repeat sales, and new product sales

brand equality

the value of a company or brand name

global brand

a brand that obtains at least one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available, marketing and financial data

brand loyalty

consistent preference for one brand over all others

manufacturer’s brand

brand name of a manufacturer

private brand

a brand name owned by a wholesaler or a retailer

captive brand

a brand manufactured by a third party for an exclusive retailer’s affliliation

individual branding

using different brand names for different products

family branding

marketing several different products under the same brand name

co-branding

placing two ore more brand names on a product or its package

trademark

the exclusive right to use a brand or part of a brand

service mark

a trademark for a service

generic product name

identifies a product by class or type and cannot be trademarked

persuasive labeling

a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

informational labeling

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

universal product codes (UPCs)

a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners that represent numbers used to track products

warranty

a confirmation of the quality or performance of a good or service

express warranty

a written guarantee

implied warranty

an unwritten guarantee that the good or service is fit for the purpose for which it was sold

t/f A product may be defined as everything, both favorable and unfavorable, that a person receives in an exchange

true

t/f An elementary school teacher purchased a ream of art paper, a box of crayons, and some modeling clay. The teacher intends to use these products in her classroom, so they would be classified as business products

true

t/f Convenience products, though inexpensive, still require considerable shopping effort by buyers.

false convenience products are relatively inexpensive items that merit little shopping effort

t/f Given the many differences in majors available, living options, and image differences, universities would be classified as a heterogeneous shopping product for most people

True

t/f Inez believes that makeup is the most important part of her wardrobe. She spends considerable time comparing the prices, skin tones, and color options available at various cosmetics counters in department stores. For Inez, makeup is a convenience product.

false for Inez, makeup is a shopping product

t/f Rolex watches are very expensive and can only be purchased in high-end jewelry stores located in large metropolitan areas. Most buyers will accept no substitutes. Rolex watches are an example of a shopping product.

false this is an example of a specialty product

t/f A product unknown to the potential buyer or a known-product that the buyer does not actively seek is referred to as an undesirable product.

false this is an unsought product

t/f Coca-Cola is one of the world’s largest manufacturers of beverages. It makes over 2,800 different beverage products, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks, and energy drinks. The great variety of beverages made by Coca-Cola represents its product mix.

true

t/f Product modification occurs when changes are made in how the product functions, its quality, or some aesthetic characteristic of the product.

true

t/f Chef’s Catalog built its reputation on selling the highest-quality baking ingredients. The catalog retailer has added a line of fine kitchen tools and wants its customers to think of the retailer as a place to buy everything needed to bake the finest breads and desserts–not just for buying the ingredients. The marketing term for changing consumers’ perceptions of the Chef’s Catalog is segmentation.

false changing consumers’ perceptions is called repositioning

t/f Apple is known for its Macintosh and iPod products. Apple recently added the iPhone product to its list of products. The addition of the iPhone was an example of a product line extension for the company.

true

t/f Isaac Golding, owner of a tutoring service, has developed a design for his firm that includes an owl wearing large spectacles and carrying a satchel crammed full of books and papers. Golding plans to use this design on all communications the firm sends out. This design is called the firm’s brand name.

false such as design would be called the firm’s brand mark, which is the elements of a brand that cannot be spoken

t/f Branding has three main purposes: product identification, repeat sales, and new-product sales.

true

t/f Brand names such as Kleenex, UPS, Sony, Chevrolet, and Kellogg’s are likely to have less brand equity than brand names like Viking, Zojirishi, Schimano, and Thule.

false they are likely to have more brand equity, which is the value of company and brand names because of their familiarity

t/f Sam likes Michelin tires. If he needs new tires and Michelins are not on sale, he is willing to pay a higher price for Michelin rather than buy some other brand. Sam is brand loyal to Michelin.

true

t/f Retailers love national brands because overhead is low and there are no marketing costs, and they bring higher profit margins than private brands.

False private brands, not national brands, bring these benefits to retailers

t/f when the manufacturer of French’s classic yellow mustard introduced french’s

false this was an example of family branding. co-branding is placing two or more brand names on a product or its package

t/f Trademark protection and rights only lasts for five years.

false trademark protection typically lasts for ten years’ however, rights to a trademark last as the mark is used

t/f The most important functions of packaging are to contain and protect products, promote products, facilitate product storage, and facilitate recycling

true

T/F The nutrition label on a package is an example of persuasive labeling

false this is better described as informational labeling

T/F Due to the time required to scan them, universal product codes (UPCs) are typically placed on merchandise that would be classified as shopping products.

false UPCs appear on most items in supermarkets and other high-volume outlets. Bar codes also appear on shopping products such as clothing, appliances, high-end wines, etc. The UPC is essential in supply chain management for a wide variety of products, not just shopping products.

T/F A company that wants to market its product globally has only two branding strategies available: either use the brand name everywhere or develop a new brand name for each different market.

false there is a third possible branding strategy- adapt and modify

t/f Cultural traits can make a package design successful in one country and a failure in another

true

t/f A warranty does not confirm the quality or performance of a good or service

false A warranty is a confirmation of the quality or performance of a good or service.

t/f All sales have an implied warranty under the Uniform Commercial Code.

true

A _____ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be tangible, intangible, a service, an idea, or a combination of these things.
a.
brand equity
b.
quality
c.
warranty
d.
transaction
e.
product

E

The _____ is the starting point in creating a marketing mix.
a.
price
b.
product
c.
distribution channel
d.
promotional media

B

Why is creation of a product the starting point for the marketing mix?
a.
The production department must know what to produce first.
b.
Production strategy is the first of the four Ps listed in the marketing mix.
c.
Determination of the price, promotional campaign, and distribution network cannot begin until the product has been specified.
d.
Product development takes the longest amount of time to complete.
e.
Actually, the product does not have to be the starting point–promotional strategies are often the starting point.

C

Which of the following is NOT an example of a product’s tangible feature?
a.
Brand equity
b.
Packaging
c.
Color
d.
Options
e.
Size

A

When a greenhouse plant grower sells plants to nursery retailers, the grower is selling _____ products.
a.
specialty
b.
consumer
c.
convenience
d.
business
e.
unsought

D

Rock-Tenn produces cardboard cartons to be used by companies in the food industry. Rock-Tenn is selling _____ products.
a.
specialty
b.
consumer
c.
business
d.
convenience
e.
unsought

C

The consumer product classification system is based on:
a.
how the market is segmented
b.
the way the products are manufactured
c.
the way products are used
d.
the physical attributes of the product
e.
the amount of effort consumers spend to acquire the product

E

There are many HD television sets on the market, and they vary so much on price, quality, and features that consumers often have trouble comparing them. An HD television would probably be considered a _____ product.
a.
convenience
b.
specialty
c.
heterogeneous shopping good
d.
homogeneous shopping good
e.
generic

C

_____ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution.
a.
Convenience
b.
Specialty
c.
Branded shopping
d.
Unbranded shopping
e.
Generic

A

The convenience product marketing strategy includes:
a.
wide distribution of the product
b.
higher than ordinary prices
c.
few retail outlets other than convenience stores
d.
significantly lower promotion budgets
e.
products that are not easily substitutable

A

Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out, she noticed that Soap Opera Digest had an interesting story about one of her favorite characters. As Amy is a huge fan of the long-running soap, she had to buy a copy. In this example, the Soap Opera Digest is an example of a(n) _____ product.
a.
specialty
b.
convenience
c.
business
d.
shopping
e.
unsought

B

Compared to the other classifications of consumer products, shopping products are:
a.
widely available, so they need little or no promotion
b.
usually less expensive than convenience products
c.
purchased without significant planning
d.
usually more expensive than convenience products and are found in fewer stores
e.
purchased immediately after the consumer realizes he or she needs them

D

Kathy is driving Chaz, her young son, home from soccer practice when Chaz says, "Mom, I’m thirsty." Kathy immediately pulls the car into the nearest gas station and buys Chaz a Coke. For Kathy, the Coke is best described as an example of buying a _____ product.
a.
homogeneous shopping
b.
heterogeneous shopping
c.
convenience
d.
specialty
e.

C

Which of the following is the best example of a convenience product?
a.
Concert tickets
b.
Chewing gum
c.
Jeans
d.
Chemical for the swimming pool
e.
A birthday present

B

Which type of consumer product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores?
a.
An unsought product
b.
A secondary product
c.
A unique product
d.
A shopping product
e.
A selective product

D

Harrison wanted a gas water heater. He watched newspaper ads until he found one on sale. For Harrison, the water heater is a(n) _____ product.
a.
shopping
b.
convenience
c.
component
d.
unsought
e.
specialty

A

The two types of shopping products are:
a.
unsought and convenience
b.
generic and family
c.
exclusive and intensive
d.
heterogeneous and homogeneous
e.
consumer and business

D

Which of the following is the best example of a shopping product for most consumers?
a.
Washing detergent
b.
Crackers
c.
A soft drink
d.
A digital camera
e.
A magazine

D

_____ are products consumers see as being basically the same, so consumers shop for the lowest price.
a.
Low-prestige specialty products
b.
Product equivalents
c.
Heterogeneous shopping products
d.
Generic convenience products
e.
Homogeneous shopping products

E

Andrea needs to find a kennel for boarding her son’s dogs. There are several different kennels in her community, and Andrea believes all of them to be basically alike. The only feature she is genuinely concerned about is low price. For Andrea, the kennel for boarding dogs would be classified as a(n) _____ product.
a.
specialty
b.
unsought
c.
heterogeneous shopping
d.
basic convenience
e.
homogeneous shopping

E

_____ products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility. Comparisons between these products are often quite difficult because they may have unique features and different levels of quality and price.
a.
Product equivalents
b.
Comparative convenience products
c.
Homogeneous shopping products
d.
Product counterparts
e.
Heterogeneous shopping products

E

When Kyla wanted patio furniture, she visited stores that had outdoor furniture, including Home Depot, Lowe’s, Target, and Howard Lumber Company to find the set that would look just right on her patio. If Kyla represents a typical patio furniture shopper, you know this product is a(n):
a.
homogeneous luxury product
b.
shopping specialty good
c.
operating supply good
d.
convenience item
e.
heterogeneous shopping good

E

Which of the following products is most likely to be considered an example of a heterogeneous shopping product?
a.
An apartment
b.
Laundry detergent
c.
A blender
d.
A package of pens
e.
Dog food

A

_____ products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.
a.
Exclusive shopping
b.
Homogeneous convenience
c.
Branded shopping
d.
Specialty
e.
Heterogeneous convenience

D

Bang & Olufsen make some of the best sound systems in the world. After years of development, Bang & Olufsen recently released its new BeoLab 5 speakers. For audiophiles who demand the best in audio equipment, the $19,950 Bang & Olufsen BeoLab 5 speakers represent an example of a(n) _____ product.
a.
heterogeneous shopping
b.
specialty
c.
homogeneous shopping
d.
convenience
e.
exclusive

B

Janet will only purchase Williams-Sonoma products for her kitchen. The products are expensive, but Janet feels they have the highest quality and will last a very long time. These products represent _____ products.
a.
heterogeneous shopping
b.
specialty
c.
homogeneous shopping
d.
convenience
e.
business

B

Evan Zimmermann loves watches. He collects vintage Rolex sport models made between 1950 and 1960. He paid $1,500 for his first watch in 2000. Now the watch is worth $15,000. For Evan, the vintage watches are an example of a(n) _____ product.
a.
specialty
b.
consumer
c.
convenience
d.
business
e.
unsought

a

When deciding on distribution plans for specialty products, companies generally ensure that the items are:
a.
made available only as private brands
b.
made available in a large number of stores in a geographic area
c.
made available only through the mail
d.
distributed to a considerable number of stores in a geographic area
e.
distributed to only a few stores in the geographic area

E

_____ products are products that are not known about or not actively searched for by consumers. These products require aggressive personal selling and highly persuasive advertising.
a.
Hidden
b.
Specialty
c.
Equity
d.
Unsought
e.
Shopping

D

Unsought products typically are products that:
a.
consumers purchase when they see them in a convenient location
b.
consumers definitely don’t want
c.
only require reminder advertising to be successful
d.
require little or no decision making by the buyer
e.
consumers don’t know about or don’t actively look for

E

Alice is a very busy person, and she hates to spend her time doing yard work. She really likes the idea of a synthetic lawn. However, she has never pursued the idea, as she has two dogs in her backyard. Alice doesn’t know that several manufactures make synthetic grass with an antibacterial agent to minimize odors for pet owners. For Alice, the dog-friendly synthetic lawns are a(n) _____ product because she doesn’t know the product exists.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
convenience
e.
exclusive

C

Freda was proud of her shiny new iPhone. But she was disappointed when she began to notice scratches on its display surface. If Freda had known about the clear protective films that were available to protect the iPhone display from scratches, she could have avoided this annoying problem. For Freda, the protective films are a(n) _____ product.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
convenience
e.
consumer

C

In general, most consumers don’t spend a lot of time thinking about their funeral. So some funeral homes try to get them to think about their loved ones by advertising preplanned funerals. This is an attempt to get people to think about a product that most consumers do not actively seek. In other words, preplanned funerals are a(n) _____ product.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
business
e.
consumer

C

A product line is a group of products that are closely related because the:
a.
products share the same product managers
b.
products all function in a similar manner and provide similar benefits
c.
same company has developed the idea for each product
d.
products are all sold under the same brand name
e.
products are all priced about the same

B

There are a number of toothpastes marketed under the Crest brand, including Cavity Protection Crest, Pro-Health Sensitive Shield Crest, Baking Soda Crest, Tarter Protection Crest, and Crest for Kids. The large variety of toothpastes under the Crest brand is an example of a:
a.
marketing mix
b.
product line
c.
product mix
d.
product equity
e.
product modificatio

B

Along with its Macintosh computer line, Apple markets its iPod, iPhone, and AppleTV products. This is an abbreviated listing of the company’s:
a.
customer mix
b.
product line
c.
product mix
d.
line depth
e.
product modification

C

Product mix width may be defined as:
a.
the number of different product categories found within an industry
b.
the average number of products within each product line in the company
c.
the average number of products offered by the company
d.
the number of different product lines an organization offers for sale
e.
the extensiveness of the coverage of the line from high end (expensive) to low end (inexpensive)

D

Most people recognize Campbell’s as a brand of soup, but Campbell’s also manufactures Pace Picante Sauce, Pepperidge Farms products, Prego pasta sauces, Swanson Broth, and V8 juice. All these products are part of Campbell’s:
a.
marketing equity
b.
product line
c.
product mix
d.
line depth
e.
product modification

C

ForeverLawn has recently added two new synthetic lawn products. One of the products includes fake brown grass that makes the synthetic lawn look more realistic, as it appears to have some patches of brown thatch. The other product is K9Grass for consumers who have pet dogs. The addition of these two new synthetic grass products is a way for ForeverLawn to increase its:
a.
line width
b.
breadth mix
c.
mix width
d.
line depth
e.
mix depth

D

Procter & Gamble manufactures Tide laundry detergent, the best-selling brand in the United States. But is also offers Tide to Go, which is a stick product consumers can use to clean a spot on their clothing between washings, and small travel packets of Tide detergent. These other products are part of Tide’s product line:
a.
width
b.
breadth
c.
mix
d.
depth
e.
synergy

D

There are a number of toothpastes marketed under the Crest brand, including Cavity Protection Crest, Pro-Health Sensitive Shield Crest, Baking Soda Crest, Tartar Protection Crest, and Crest for Kids. This is an example of Crest’s:
a.
product line width
b.
product mix
c.
product line depth
d.
product mix inconsistency
e.
marketing mix

C

Proctor & Gamble is a well-known producer of home and beauty products. Along with these products, P&G also markets pet products, prescription drugs, and small appliances. This range of products provides the company with product:
a.
line height
b.
line consistency
c.
mix width
d.
line depth
e.
mix depth

C

All of the following are benefits from organizing related items into product lines EXCEPT:
a.
package uniformity
b.
varying quality
c.
advertising economies
d.
efficient sales and distribution
e.
standardized components

B

Changing one or more of a product’s characteristics is called:
a.
product modification
b.
product repositioning
c.
product adjustment
d.
planned obsolescence
e.
product extension

A

Which of the following is an example of a product modification?
a.
Lowering the price of textbooks
b.
Dropping a product from the product line
c.
Changing the color of a laundry detergent
d.
Changing the amount of management time spent overseeing production
e.
Increasing the number of distribution outlets

C

Apple recently updated its iPod Touch product, expanding its storage from 8 GB to 16 GB. Enlarging the iPod Touch’s storage capacity is an example of a:
a.
product modification
b.
brand mix extension
c.
product diversification
d.
brand repositioning
e.
demographic modification

A

Which type of product modification changes a product’s dependability or durability?
a.
Functional
b.
Style
c.
Aesthetic
d.
Quality
e.
Primary

D

A go-cart manufacturer recently added shock absorbers to make the ride in its go-carts smoother. It has not changed its prices. This is a(n) _____ modification.
a.
upsale
b.
style
c.
dysfunctional
d.
repositioning
e.
quality

E

When Honda automobiles first entered the U.S. market, they were small and not very durable. However, over the years, Honda has modified its automobiles to be one of the most dependable cars on the market. This change in dependability and durability is representative of which type of product modification?
a.
Style
b.
Planned obsolescence
c.
Functional
d.
Quality extension
e.
Quality

C

Which type of product modification changes a product’s versatility, effectiveness, convenience, or safety?
a.
Quality
b.
Planned
c.
Functional
d.
Style
e.
Use

C

When Proctor & Gamble removed potentially dangerous dyes and chemicals from its Tide detergent product and introduced Tide Free, the company was making a:
a.
product line contraction
b.
quality modification
c.
aesthetics modification
d.
obsolescence factor
e.
functional modification

E

Which type of product modification is an aesthetic product change?
a.
Functional
b.
Quality
c.
Repositioning
d.
Style
e.
Planned

D

A style modification is a(n):
a.
change in the product’s durability or dependability
b.
safety improvement
c.
aesthetic product change
d.
way to add convenience
e.
improvement in product versatility and effectiveness

C

One of the leading manufacturers of choir robes has added different types of trim and fabric in the making of the robes. The company has not changed its prices. This is a(n) _____ modification.
a.
style
b.
obsolescence
c.
quality
d.
repositioning
e.
upward extension

A

Which of the following statements about planned obsolescence is true?
a.
Environmentalists support planned obsolescence.
b.
A company that is interested in producing a quality product would never engage in planned obsolescence.
c.
Style modification creates planned obsolescence.
d.
Planned obsolescence is not an ethical issue.
e.
All of the statements about planned obsolescence are true

C

A regional utility company needs to change consumers’ perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal?
a.
Contraction of the number of services offered by the utility company
b.
Adding new services to its product line
c.
Repositioning
d.
Disintermediation
e.
Use of product cannibalization

C

Apple Computer, Inc. recently dropped "Computer" from the company’s name to become Apple, Inc. This was a part of its _____ away from simply being perceived as a computer company.
a.
quality modification
b.
aesthetic modification
c.
demarketing
d.
repositioning
e.
functional extension

D

Over the years Cadillac has become to be thought of as "your grandparent’s car." The new Cadillac ads showing a beautiful young woman driving a Cadillac along with the statement, "When you turn your car on, does it turn you on?" This is an example of marketing designed to help _____ Cadillac as a car for today’s younger driver.
a.
diversify
b.
reposition
c.
develop
d.
expand
e.
display

B

Adding additional products to an existing product line in order to compete more broadly in the industry is referred to as:
a.
product line extension
b.
product modification
c.
planned obsolescence
d.
repositioning
e.
cannibalization

A

In terms of sales and market share, Rexona is the number one brand of deodorant worldwide. Since its creation in Australia in 1908, it has added an antiperspirant, a stick deodorant, Rexona for Men, Rexona for Women, Rexona for Teens, and Rexona Skin Friendly. These additions are examples of:
a.
product line extensions
b.
product portfolio width adjustments
c.
product item contractions
d.
SBU expansions
e.
product mix widths

A

When Crest introduced Crest for Kids, this was an example of a _____ strategy.
a.
repositioning
b.
product line extension
c.
cannibalization
d.
disintermediation
e.
demarketing

B

Cover Girl and Revlon are both recognized as leading manufacturers of cosmetics. Both companies have recently introduced cosmetics for the over-50 woman who does not have the same concerns as a 20-year-old girl. The introductions of these cosmetics are examples of the implementation of a _____ strategy.
a.
portfolio breadth expansion
b.
product portfolio width adjustment
c.
product item contraction
d.
product line extension
e.
repositioned marketing mix

D

At one point, Heinz made ketchup in multiple colors, including red, green, purple, pink, orange, and teal. While they were popular for a few years, consumers stopped buying the unusual colors and Heinz has dropped back to just making red ketchup. This is an example of the implementation of a _____ strategy.
a.
repositioning
b.
cannibalization
c.
product line extension
d.
product line contraction
e.
divestment

D

A _____ is a name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.
a.
brand mark
b.
trademark
c.
brand name
d.
UPC
e.
brand

E

A _____ is the part of the brand that can be spoken.
a.
brand equity
b.
service mark
c.
trademark
d.
brand name
e.
certification mark

D

The _____ is the element of a brand that cannot be spoken.
a.
brand mark
b.
trademark
c.
brand equity
d.
quality mark
e.
intangible product

A

A Boston diamond distributor has developed the first branded diamond called Hearts on Fire to help smaller retailers counter the volume jewelers’ aggressive price discounting. This move is meant to:
a.
take away trademark rights
b.
build product identity and customer loyalty
c.
create a catchy phrase to promote diamonds
d.
combat the quality appeal of generic products
e.
combat low-cost production of generic brands

B

The value of company and brand names is referred to as:
a.
brand equity
b.
brand loyalty
c.
brand power
d.
brand equivalency
e.
brand strength

A

According to recent market research, Google is one of the most valuable brands in the world. According to this research, the company and its well-known name are worth about $86 billion. This research indicates that Google has a high:
a.
brand loyalty hierarchy
b.
evoked set
c.
brand quality standard
d.
perceptual expectation
e.
brand equity

E

A(n) _____ refers to a brand that obtains at least a third of its earnings from outside its home country.
a.
evoked set
b.
global brand
c.
equity brand name
d.
master brand
e.
ethnocentric trademark

B

Rexona, marketed by Unilever (a Dutch company), is the world’s number one deodorant brand. The brand is a leader in Europe, South America, Asia, Africa, and the Middle East. Rexona is an example of a:
a.
master brand
b.
global brand
c.
cannibalized brand
d.
standard brand
e.
family brand

B

What is the best generator of repeat sales?
a.
Advertising
b.
Sales promotion
c.
Brand equity
d.
Satisfied customers
e.
Global brand

D

A consumer who consistently and repeatedly purchases the same brand is said to have:
a.
brand loyalty
b.
product equity
c.
product loyalty
d.
product repetition
e.
store loyalty

A

Brand loyalty can:
a.
increase product diffusion
b.
encourage competition
c.
shorten the amount of time a product spends in the maturity stage
d.
help ensure repeat sales
e.
sell a bad product

D

The brand name of a manufacturer is known as a(n) _____ brand.
a.
private
b.
manufacturer’s
c.
individual
d.
captive
e.
family

B

Campbell’s, Nature Valley, Honda, and Lipton products are examples of _____ brands because of who owns them.
a.
manufacturers’
b.
private
c.
family
d.
individual
e.
master

A

A(n) _____ brand is one owned by the wholesaler or retailer.
a.
intermediate
b.
private
c.
generic
d.
corporate
e.
primary

B

Wal-Mart sells many health and beauty aid products under the name Equate. This brand can only be purchased in Wal-Mart stores and is an example of a(n) _____ brand.
a.
manufacturers’
b.
international
c.
family
d.
private
e.
corporate

D

Which type of private label brand carries no evidence of a retailer’s affiliation, is manufactured by a third party, and is sold exclusively at the retailer?
a.
A captive brand
b.
A complementary brand
c.
A cooperative brand
d.
An exclusive brand
e.
A generic brand

A

A small chain of supermarkets in the western United States sells only manufacturers’ brands. Which of the following is one of the arguments you could use to dissuade the supermarket chain owner from selling only manufacturers’ brands?
a.
A well-known manufacturers’ brand will not enhance the chain’s image.
b.
Manufacturers rarely spend money advertising the brand name to consumers.
c.
Manufacturers typically offer a lower gross margin than could be earned on private label brands.
d.
Manufacturers force the chain to carry a large in-store inventory.
e.
Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic at best

C

Which of the following statements describes an advantage to retailers associated with developing their own brands?
a.
Dealers must market the brand, thus cutting into the gross margin.
b.
Higher profit margins are available on private brands.
c.
Private brands, particularly those owned by discounters, are perceived to be of a higher quality.
d.
Dealers often buy in large quantities and thus always have a ready supply.
e.
Private brands are normally delivered more promptly by the manufacturer.

B

When a company uses different brand names for different products, it is using _____ branding.
a.
private
b.
generic
c.
compound
d.
family
e.
individual

E

Heinz is a leading global food manufacturer. It manufactures and markets Farleys (baby food), Jack Daniel’s sauces, and Weight Watcher’s diet/slimming meals and supplements. The use of these brand names instead of the Heinz name is an example of a(n) _____ branding strategy.
a.
individual
b.
synergistic
c.
umbrella
d.
family
e.
piggyback

A

Procter & Gamble makes Gain laundry detergent for people who like a strong scent and Dreft for those who want a gentle detergent for their baby’s clothes. It is using a(n) _____ strategy.
a.
individual branding
b.
family branding
c.
combination branding
d.
trademarked branding
e.
private branding

A

When a company markets several different products under the same brand name, it is referred to as a(n) _____ brand.
a.
family
b.
generic
c.
bargain
d.
dealer
e.
umbrella

A

Most people recognize Butterball as a brand of turkey, but Butterball brand is also found on fresh turkey breast cuts, turkey sausages, and ground turkey; lunchmeat cold cuts; fresh marinated bone-in, boneless, and whole chicken; frozen chicken products; and Butterball stuffing and gravy mixes. Butterball uses:

C

Which of the following entails placing two or more brand names on a product or its package?
a.
Family branding
b.
Private branding
c.
Dual-code branding
d.
Co-branding
e.
Complementary branding

D

Maureen purchased a package of Bounce fabric sheets with Febreeze citrus scent. Since both brands were prominently listed on the package, this would be an example of:
a.
equity branding
b.
co-branding
c.
conjunctive branding
d.
private branding
e.
complementary branding

B

Jennifer purchased Cascade 2in1 ActionPacs for her dishwasher. The packaging said the product combines the scrubbing power of Cascade with the grease-fighting power of Dawn dishwashing detergent. What type of co-branding does this product represent?
a.
Cooperative
b.
Complementary
c.
Piggyback
d.
Ingredient
e.
Synergistic

D

Rosa’s husband Phil has a cold. Rosa went to the store to buy something that would help Phil sleep. Rosa purchased Breathe Right nasal strips embedded with Vicks mentholated vapor rub. The package showed both the Breathe Right and the Vicks brand names. This is an example of _____ branding.
a.
equity
b.
ingredient
c.
family
d.
private
e.
functional

B

Which of the following describes cooperative branding?
a.
When advertising identifies a brand as a part that makes up another product
b.
When two brands receive equal treatment, borrowing from each other’s brand equity
c.
When products are advertised together to suggest usage together
d.
When advertising identifies a brand that should not be used with another product
e.
When advertising identifies a family of brands

B

Suppose that ForeverLawn joins Choice Home, a house builder, in a joint promotional campaign. Both Choice Homes and ForeverLawn are equally mentioned in the advertisements and marketing materials. At the end of the campaign, one lucky person will win a Choice Home with a ForeverLawn synthetic lawn. To register, consumers need to visit either ForeverLawn.com or Choicehomes.com. This type of joint promotion is known as _____ branding.
a.
cooperative
b.
ingredient
c.
umbrella
d.
complementary
e.
family

A

Butterball, a well-known brand of turkey, advertised Ocean Spray cranberry sauce in its magazine ads and depicted suggested usage with its turkey. This is an example of which type of co-branding?
a.
Ingredient
b.
Complementary
c.
Family
d.
Captive
e.
Product use

B

A _____ is a legal term indicating the owner’s exclusive right to use a brand name or part of a brand.
a.
trademark
b.
patent
c.
brand
d.
private brand
e.
right of warranty

A

When a product name becomes generic:
a.
the firm must use black-and-white packaging
b.
competitors are prohibited by law from using the trademark
c.
the price will have to drop to appeal to lower-income consumers
d.
the product name is no longer recognized as the exclusive property of one firm
e.
a firm can reapply for exclusive trademark protection at the U.S. Patent Office

D

Kleenex is a well-known brand name of facial tissue. People often refer to Kleenex as if it were the product name. The company that makes Kleenex may someday find its brand name becoming a(n):
a.
equity brand
b.
certified name
c.
trademark
d.
faux brand
e.
generic product name

E

All of the following are functions of packaging EXCEPT:
a.
containing and protecting the product
b.
guaranteeing product quality
c.
facilitating recycling and reducing environmental damage
d.
promoting the product
e.
facilitating product storage, use, and convenience

B

Sherwin-Williams’ Dutch Boy paint has packaging that is getting rave reviews. The new Twist & Pour paint is packaged in an all-plastic gallon container with an easy twist-off lid, comfortable side handle, and even a pouring spout. There’s no other paint product like it on the market. This innovative packaging was most likely designed for which of the following functions?
a.
To facilitate product use and convenience
b.
To contain and protect the product
c.
To reduce environmental damage
d.
To facilitate recycling
e.
To promote the product

A

The two types of package labeling in common usage today are:
a.
informational and persuasive
b.
promotional and nonpromotional
c.
functional and persuasive
d.
government mandated and seller controlled
e.
motivational and required

A

Labels that contain standard promotional claims like "new," "improved," and "super" are examples of _____ labels.
a.
descriptive
b.
functional
c.
repositioning
d.
informational
e.
persuasive

E

Labeling that is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase is referred to as:
a.
informational labeling
b.
persuasive labeling
c.
cognitive labeling
d.
rational labeling
e.
restrictive labeling

A

Statements on Kashi cereals and breakfast bars stating that they have no artificial colors, flavors, or preservatives would most likely be an example of _____ labeling.
a.
primary
b.
required
c.
informational
d.
functional
e.
environmental

C

Mia’s new raincoat contains a label that reads "Professional Dry Clean Only." This is an example of a(n) _____ label.
a.
data
b.
union mandated
c.
persuasive
d.
informational
e.
functional

D

Which of the following statements about bar codes is true?
a.
Bar codes are also called universal pricing codes (UPCs).
b.
Bar codes were first used in 2000.
c.
Bar codes can be read by optical scanners.
d.
Bar codes cannot be used as a marketing research tool.
e.
All of these statements about bar codes are true.

C

Universal product codes (UPCs) can perform all the following functions EXCEPT:
a.
allow scanners to match codes with brand names, package sizes, and prices
b.
print product and price information on cash register tapes
c.
assist retailers in preparing records of customer purchases
d.
allow retailers to accurately track sales and control inventories
e.
provide the detailed nutritional information required by the FDA

E

Three aspects of packaging that are especially important in international marketing are labeling, aesthetics, and:
a.
price
b.
length of distribution channel
c.
counterfeiting potential
d.
warranties
e.
climate considerations

E

Which type of warranty is a written guarantee?
a.
Complete
b.
Express
c.
Implied
d.
Explicit
e.
Primary

B

Lands’ End, a catalog retailer, offers a written satisfaction guarantee on all merchandise it sells. In other words, Lands’ End gives its customers a(n) _____ warranty.
a.
implied
b.
descriptive
c.
limited
d.
full
e.
express

E

The label on Darwin’s new blazer that reads "Will Not Shrink" is an example of a(n) _____ warranty.
a.
descriptive
b.
limited
c.
implied
d.
express
e.
superfluous

D

The statement on a toothpaste box that brushing twice a day with the paste will remove 90 percent of all tartar from the user’s teeth is an example of a(n):
a.
implied warranty
b.
functional label
c.
UPC disclaimer
d.
express warranty
e.
universal warranty

D

Shane had every reason to believe that the antacid he purchased would relieve his stomach problems if he followed the directions on the box. This is an example of a(n):
a.
implied warranty
b.
functional label
c.
persuasive label
d.
express warranty
e.
universal warranty

A

Under the _____, all sales have an implied warranty.
a.
Label Law
b.
Lanham Act
c.
Bill of Rights
d.
Good Housekeeping Seal
e.
Uniform Commercial Code

E

END PROBLEMS

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