MGMT 322 Marketing Management – Chapter 10 Product Concepts

Three Arrows Inc. is a company that manufactures bags from recycled paper. Its marketers receive complaints that the bags easily become wet and tear after a few weeks of use. They decide to respond to their customers’ needs by using a thicker, waterproof paper. This is an example of _____.

quality modification

Yater’s Inc. is a food and beverage company based in America. The company decides to market and sell its products in all European countries under the same brand name. In this scenario, Yater’s Inc. decides to use the _____.

one-brand-name strategy

Compared to convenience products, shopping products are:

​found in fewer stores.

Zingz is a soft drink that is widely distributed across cities. It is available at gas stations, department stores, and vending machines. Consumers buy the soft drink without much thought or effort. Zingz is an example of a _____.​

convenience product

Consumers usually buy a _____ only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.

shopping product

A difference between informational labeling and persuasive labeling is that informational labeling:

​helps a consumer make proper product selections when making a purchase.

Which of the following statements is true of an unsought product?​

New products are categorized as unsought products until advertising and distribution increase consumer awareness of them.

The most obvious function of packaging is to:

contain products that are liquid, granular, or otherwise divisible.

Dunchen Moo, a manufacturer of dairy products, sells a variety of milk powders, flavored whipped cream, and yogurts. It markets a number of yogurts including Dunchen All Natural, Dunchen Fruit on the Bottom, Dunchen Light & Fit, DunActive, and Dun-o-nino. The large variety of yogurts under the Dunchen brand are collectively an example of a _____.

​product line

_____ is designed to help consumers make proper product selections and lower their cognitive dissonance after a purchase.

​Informational labeling

Remnants Perfumes is a high-end, exotic women’s fragrance. The manufacturers of Remnants Perfumes want to establish it as a specialty product. In this case, which of the following will be an objective of the manufacturers of Remnants Perfumes?

To focus on establishing a brand name

Identify a true statement about specialty products.

They are distributed to only a few outlets in a geographic area.

Which of the following statements is true of product lines?

They provide economies of scale in advertising.

Identify a true statement about global branding strategies.​

A one-brand-name strategy is useful when a company markets mainly one product.

Reducing a product’s quality:

lets a firm’s manufacturer lower the price.

Product line depth refers to the number of:

​product items in a product line.

Identify a true statement about a product.​

It is usually the starting point in creating a marketing mix for a market segment

Which of the following statements is true of an organization’s product mix?​

Firms widen their product mix to capitalize on established reputations.

Which of the following statements is true of an express warranty?

It ranges from simple statements to extensive documents written in technical language.​

A _____ occurs when a company’s management decides to add products to an existing product line in order to compete more broadly in the industry​

product line extension

A difference between informational labeling and persuasive labeling is that informational labeling:​

helps a consumer make proper product selections when making a purchase.

Gypsy Foods Inc. is a multinational food and beverage company. Its labels are colorful and project the words ‘new’ and ‘improved’ along the product’s name. The packages do not provide details about the product’s ingredients. In this case, Gypsy Foods is using _____.​

persuasive labeling

Elsem Foods Inc. is a packaged food company. It sells several varieties of packaged foods such as savories, cupcakes, candies, crackers, fruit juices, and carbonated drinks. It receives its largest profit from its newly introduced line of tropical fruit juices that are available in different flavors, such as orange, apple, litchi, cranberry, and so on. Given this information, which of the following is a product item of Elsem Foods Inc.?​

Orange juice

_____ occurs when two brands receiving equal treatment borrow from each other’s brand equity.​

Cooperative branding

Identify a true statement about global branding strategies.

A one-brand-name strategy is useful when a company markets mainly one product.

Which of the following is a difference between individual branding and family branding?​

In individual branding, different brand names are used for different products, whereas in family branding, several different products are marketed under the same brand name.

Which of the following statements is true of a specialty product?

​It is marketed using selective, status-conscious advertising to maintain its exclusive image.

Eve’s Aura, a manufacturer of bath and beauty products, predominantly sells convenience products. Given this information, which of the following is a characteristic of Eve’s Aura’s products?​

They require wide distribution in order to sell sufficient quantities.

Which of the following is a reason why many retailers are creating and promoting their own captive brands?​

This strategy allows retailers to ask a price similar or equal to manufacturers’ brands.

Fournotts Corp. manufactures syringes that filter water, but the consumers in the market are not aware of the existence of this product. In this case, which of the following strategies will increase the sales of the syringes?

Using direct response advertising

Which of the following is a consequence of product line contractions?

Concentration of resources on the most important products

Laelle Corp. is a well-known clothing wholesaler. It sells designer and business suits for men and women. These suits sold by Laelle Corp. are examples of _____.

product items

A _____ confirms the quality or performance of a good or service.

warranty

_____ is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly.

Greenwashing

A _____ is a relatively inexpensive item that merits little shopping effort.

convenience product

A _____ may be defined as everything, both favorable and unfavorable, that a person receives in an exchange.

product

Which of the following statements is true of unsought products?

Consumers are unaware of such products and do not actively seek them.

Aleesha refuses to buy any toothpaste other than her preferred brand, Blassey, manufactured by Blassey’s Inc. If Blassey’s toothpaste is not available in her neighborhood store, she drives to another store rather than buying a different brand. Based on this information, which of the following statements is true?

Aleesha has a strong brand loyalty toward Blassey’s Inc.

Wammy’s Foods, a leading packaged seafood company, provides information on its tuna and sardines cans such as date of packaging, date of expiry, nutritional value, and source. This is an example of:

informational labeling.

Which of the following statements is true of a bar code?

It is read by computerized optical scanners that match codes with brand names, package sizes, and prices.

Judy decides to gift her brother a guitar for his birthday. In this case, the guitar is an example of a _____.

consumer product

Product mix width refers to the number of:

product lines an organization offers.

_____ refers to changes in a product’s versatility, effectiveness, convenience, or safety.

Functional modification

When a firm plans to enter a foreign market with an existing product, a one-brand-name strategy:

provides for greater identification of the product from market to market.

Tulips Nation is a famous clothing brand. The company wants to market and sell its products all over the world. After some deliberation, the management decides to continue using the same name in all its different markets. The strategy adopted by Tulips Nation is an example of a(n) _____.

one-brand-name strategy

The universal product code (UPC) is a:

series of thick and thin vertical lines read by computerized optical scanners that match codes with brand names, package sizes, and prices.

Which of the following is true of an organization’s product mix?

Firms increase the width of their product mix to diversify risk.

Private label products bring ten percent higher profit margins, on average, than manufacturers’ brands because:

overhead cost is low and there are no marketing costs in private labels.

Unlike the one-brand-name strategy, the strategy of using a different brand name in different markets:

is more useful when a marketer wants the brand to appear as a local brand.

A specific version of a product that can be designated as a distinct offering among an organization’s products is called a _____.

product item

Which of the following best defines a product line?

It refers to a group of closely related product items.

A difference between a consumer product and a business product is that a consumer product is:

bought to satisfy an individual’s personal wants.

_____ is a term commonly used to describe the practice of modifying products so that those that have already been sold become obsolete before they actually need replacement.

Planned obsolescence

Which of the following statements is true of a warranty?

It protects a buyer and gives essential information about a product.

The Weston Candy Company is known for its inexpensive chocolates. To appeal to a more upscale market, it introduces a new line of premium chocolates that is made from the world’s finest cocoa. This is an example of _____.

quality modification

When consumers search extensively for a particular item and are very reluctant to accept substitutes, that item is a(n) _____.

specialty product

Which of the following statements is true of branding?

It allows marketers to distinguish their products from their competitor’s brands.

Which of the following statements is true of persuasive labeling?

It focuses on a promotional theme or logo of a product or brand.

Which of the following is a difference between an express warranty and an implied warranty?

An express warranty is a written guarantee, whereas an implied warranty is an unwritten guarantee that a good or service is fit for the purpose for which it was sold.

Unlike convenience products, shopping products:

are usually more expensive than convenience products.

Products unknown to the potential buyer or known products that the buyer does not actively seek is referred to as a(n) _____.

unsought product

Which of the following statements is true of captive brands?

They are manufactured by a third party and sold exclusively at the chains.

Liva Corp. launches its new brand of clothing called Live High. In order to spread awareness of this new brand, the marketing head of Liva Corp. decides to employ professional salespeople to directly contact potential customers to advertise and sell the new brand. Live High is an example of a(n) _____.

unsought product

Which of the following statements is true of packaging?

It holds contents together and protects goods as they move through the distribution channel.