CHAPTER 8

PRODUCT AND SERVICES STRATEGY MULTIPLE CHOICE QUESTIONS 1. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need is called a(n): a. idea. b. demand. c. product. d. service. Answer: (c) Di ic!"#$: (%) P&'e: %(8 . !roadly defined, products include all of the following "#$"%&: a. money and payments. b. services. c. ideas. d. persons. Answer: (&) Di ic!"#$: ()) P&'e: %(8 '. A (((((((((((((((((((((( is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. a. service b. demand c. need d. physical ob)ect Answer: (&) Di ic!"#$: (*) P&'e: %(8 *. All of the following are e+amples of services "#$"%&: a. banking. b. hotels and motels. c. ta+ preparation. d. computer software. Answer: (+) Di ic!"#$: (*) P&'e: %(8

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-. "+amples of pure tangible goods include all of the following "#$"%&: a. soap. b. ta+ preparation. c. toothpaste. d. salt. Answer: (,) Di ic!"#$: (*) P&'e: %(8 ,. .hich of the following would be the best illustration of a pure service/ a. a water pick for cleaning teeth b. a doctor0s e+am c. a waiter taking your order in a restaurant d. flying on an airline Answer: (,) Di ic!"#$: ()) P&'e: %(8 1. 2f a company has a hybrid offer, then its offer may be described as being one where there is: a. an equal amount of goods and services. b. a tangible good with accompanying services. c. a service with accompanying minor goods. d. a clone service package. Answer: (&) Di ic!"#$: (%) P&'e: %(8 3. A(n) ((((((((((((( occurs when a company intentionally uses services as the stage, and goods as the props, to engage individual customers in a way that creates a memorable event. a. hybrid offer b. core service c. augmented or ancillary product d. e+perience Answer: (+) Di ic!"#$: (%) P&'e: %(8- M&r.e#in' &# /0r. 81* 4. &he most basic level of a product is called the: a. core product. b. central product. c. fundamental product. d. augmented product. Answer: (&) Di ic!"#$: (*) P&'e: %(8

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15. All of the following are considered to be characteristics of the actual product category or feature "#$"%&: a. quality level. b. installation. c. brand name. d. design. Answer: (,) Di ic!"#$: ()) P&'e: %8%- 2i'!re 81* 11. Actual products may have as many as five characteristics. All of the following could be considered to be among these characteristics "#$"%&: a. a quality level. b. features. c. warranty. d. a brand name. Answer: (c) Di ic!"#$: ()) P&'e: %8%- 2i'!re 81* 1 . &he best illustration of an augmented product category or feature would be the: a. brand name. b. packaging. c. warranty. d. design. Answer: (c) Di ic!"#$: (%) P&'e: %8%- 2i'!re 81* 1'. %roducts purchased frequently, immediately, and with a minimum of comparison and buying effort are called: a. consumer products. b. convenience products. c. shopping products. d. specialty products. Answer: (,) Di ic!"#$: (*) P&'e: %8% 1*. %roducts that the consumer usually compares with others on price, suitability, quality, and style are typically called: a. convenience products. b. specialty products. c. shopping products. d. unsought products. Answer: (c) Di ic!"#$: (*) P&'e: %8%

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1-. A(n) ((((((((((((( is a product bought by the final consumer for personal consumption. a. consumer product b. industrial product c. psychological product d. stress6sensitive product Answer: (&) Di ic!"#$: (*) P&'e: %8% 1,. All of the following are characteristics of the convenience product "#$"%&: a. low price. b. mass promotion by the producer. c. e+clusive distribution. d. frequent purchase, little planning, and little comparison. Answer: (c) Di ic!"#$: (%) P&'e: %8%- T&,"e 81* 11. &he best illustration of a shopping product listed below would be: a. a television. b. a maga7ine. c. fine crystal. d. life insurance. Answer: (&) Di ic!"#$: ()) P&'e: %8%- T&,"e 81* 13. &he best e+ample of a specialty product listed below is that of a(n): a. lu+ury good, such as a 8ole+ watch. b. ma)or appliance. c. 8ed $ross blood donation. d. laundry detergent. Answer: (&) Di ic!"#$: (%) P&'e: %8%- %8)- T&,"e 81* 14. $onsumer goods with unique characteristics or brand identification often requiring a special purchase effort are called: a. custom products. b. specialty products. c. convenience products. d. shopping products. Answer: (,) Di ic!"#$: (*) P&'e: %8%- %8)

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5. $onsumer goods that the consumer does not know about or does not normally think about buying are called: a. custom products. b. unsought products. c. specialty products. d. shopping products. Answer: (,) Di ic!"#$: (%) P&'e: %8) 1. (((((((((((((((((((( are products bought by individuals and organi7ations for further processing or for use in conducting a business. a. $onsumer products b. 9ervices c. 2ndustrial products d. 9pecialty products Answer: (c) Di ic!"#$: (*) P&'e: %8) . &he primary distinction between a consumer product and an industrial product is based on the (((((((((((((((((((. a. cost b. si7e c. description d. purpose for which the product is bought Answer: (+) Di ic!"#$: ()) P&'e: %8) '. .hich of the following would not be one of the three ma)or groups of industrial products and services/ a. computer software for %$s b. materials and parts c. capital items d. supplies and services Answer: (&) Di ic!"#$: (*) P&'e: %8)- %83 *. (((((((((((( are industrial products that aid in the buyer0s production or operations, including installations and accessory equipment. a. $omputer software goods b. :aterials and parts c. $apital items d. 9upplies and services Answer: (c) Di ic!"#$: (%) P&'e: %83

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-. ((((((((((((((((((( consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organi7ation. a. ;onprofit marketing b. 9ervices marketing c. <rgani7ational marketing d. $ause6related marketing Answer: (c) Di ic!"#$: (%) P&'e: %83- %84 ,. .hich of the following would be the best illustration of corporate image advertising/ a. A hospital listing its phone number in the =ellow %ages. b. A university sending a catalog to a prospective student. c. 2!: using television to establish itself as the company to turn to for >e6!usiness solutions.? d. ;ike employing &iger .oods to promote golf balls. Answer: (c) Di ic!"#$: ()%) P&'e: %84 1. .hen :ichael @ordan and &iger .oods use marketing to promote their careers and improve their impact and incomes, they are using: a. cause6related marketing. b. idea marketing. c. nonprofit marketing. d. person marketing. Answer: (+) Di ic!"#$: (*) P&'e: %84 3. ;ew =ork 9tate shouts >2 Aove ;ew =orkB? &his would be an e+ample of which of the following forms of marketing/ a. cause6related marketing b. idea marketing c. corporate image advertising d. place marketing Answer: (+) Di ic!"#$: (*) P&'e: %84 4. >Ceep America !eautiful? and >9ay ;o to Drugs? are forms of which type of marketing listed below/ a. social marketing b. place marketing c. nonprofit marketing d. organi7ational marketing Answer: (&) Di ic!"#$: (*) P&'e: %84- %85

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'5. ((((((((((( is one of the marketer0s ma)or positioning tools. a. Euantity b. Euality c. $ost d. 9i7e Answer: (,) Di ic!"#$: (%) P&'e: %8( '1. As e+plained in the te+t, product quality means conformance qualityFconsistency in delivering a target level of performance and: a. no recalls for at least one year. b. freedom from defects. c. standard engineering specifications. d. global standards, such as 29< 4555. Answer: (,) Di ic!"#$: ()) P&'e: %8( ' . !eyond simply reducing product defects, the ultimate goal of total quality is to improve: a. distribution relationships. b. promotional methods. c. returns and allowances. d. customer satisfaction and value. Answer: (+) Di ic!"#$: (%) P&'e: %8( ''. <ne way to add customer value is through distinctive product style and design. According to the te+t, all of the following companies have reputations for outstanding style and design "#$"%&: a. @eep in 9GHs. b. !lack I Decker in cordless appliances. c. 9teelcase in office furniture and systems. c. !ose in audio equipment. Answer: (&) Di ic!"#$: ()) P&'e: %88 '*. According to the te+t, ((((((((( simply describes the appearance of a product. a. style b. design c. feature d. brand Answer: (&) Di ic!"#$: (*) P&'e: %88

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'-. Jood (((((((((( contribute(s) to a product0s usefulness as well as to its looks. a. style b. design c. brand enhancement d. features Answer: (,) Di ic!"#$: (%) P&'e: %88 ',. 2f 9teelcase office furniture company wanted to make office furniture that really met the needs of its consumers and provided value to the consumer that was not )ust >skin deep,? it would try to improve its products0 ((((((((((((((((. a. design b. style c. performance d. ambiance Answer: (&) Di ic!"#$: (%) P&'e: %88 '1. A ((((((((((((((( is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. a. product feature b. sponsorship c. brand d. logo Answer: (c) Di ic!"#$: (*) P&'e: %88- %86 '3. .hen a brand has achieved an impressive reputation for loyalty, performance, and quality, it can be said to have: a. brand endurance. b. brand equity. c. brand bonding. d. brand prestige. Answer: (,) Di ic!"#$: (%) P&'e: %86 '4. All of the following are desirable qualities for a brand name "#$"%&: a. it should suggest something about the product0s benefits and qualities. b. it is best if it is a computer generated name (this gives it something that no one else has). c. it should be distinctive. d. it should be capable of registration and legal protection. Answer: (,) Di ic!"#$: (%) P&'e: %67- %6*

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*5. <nce chosen, the brand name must be protected. :any firms try to build a brand name that will eventually become identified with the product category. Kowever, success may threaten the company0s rights to the name. 9ome brand names lose their distinctiveness and become >generic? (any seller can use the name or term). All of the following brand names are now considered to be >generic? "#$"%&: (All of the brands have been put in lower case letters on purpose.) a. yo6yo. b. linoleum. c. shredded wheat. d. kleene+. Answer: (+) Di ic!"#$: ()) P&'e: %6* *1. A manufacturer has four sponsorship options. A (((((((((((((((( is a brand created and owned by a reseller of a product or service. a. licensed brand b. manufacturer0s brand c. private brand d. co6brand Answer: (c) Di ic!"#$: (%) P&'e: %6* * . A private brand is a brand created and owned by: a. a manufacturer of a product or service. b. a reseller of a product or service. c. an international cartel. d. a private family business. Answer: (,) Di ic!"#$: (%) P&'e: %6* *'. 9ears created the $raftsman brand name for tools. &his would be an e+ample of which of the following branding options/ a. licensed brand b. manufacturer0s brand c. private brand d. co6brand Answer: (c) Di ic!"#$: (*) P&'e: %6*

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**. 2f !ubble68ight makes -5L of all bubble gum sold in the Gnited 9tates, but sells it through middlemen who market the product under individual store brands, then !ubble68ight is utili7ing which type of brand6sponsorship/ a. licensed brand b. manufacturer0s brand c. private brand d. co6brand Answer: (c) Di ic!"#$: ()) P&'e: %6* *-. 9am0s Jrocery demands promotional payments from most of its food and beverage suppliers before it will guarantee them shelf space on premium aisles for new products. &his practice has recently received much scrutiny from the Mederal &rade $ommission. &he industry calls such promotional fees or payments: a. paybacks. b. promos. c. slotting fees. d. new product fees. Answer: (c) Di ic!"#$: (%) P&'e: %6*- %6% *,. 2f :ark :ars pays Kershey Moods $orporation for the right to use its name on his line of &6shirts, then :r. :ars is using which type of policy/ a. licensing b. manufacturer0s branding c. private branding d. co6branding Answer: (&) Di ic!"#$: (%) P&'e: %6%- %6)- %64 *1. (((((((((((((( is the practice of using the established brand names of two different companies on the same product. a. Aicensed branding b. ;ational branding c. 9tore branding d. $o6branding Answer: (+) Di ic!"#$: (*) P&'e: %64

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*3. 2f Mord :otor $ompany and "ddie !auer work together to design and sponsor a new sport utility vehicle, then the companies are using which of the following brand sponsorship options/ a. licensed branding b. national branding c. store branding d. co6branding Answer: (+) Di ic!"#$: (%) P&'e: %64 *4. All of the following would be possible advantages of co6branding "#$"%&: a. combined brands create broader consumer appeal. b. combined brands create greater brand equity. c. combined brands always offer economies of scale and reduced prices. d. combined brands allow a company to e+pand its e+isting brand into other categories. Answer: (c) Di ic!"#$: (%) P&'e: %64 -5. Gsing a successful brand name to introduce additional items in a given product category under the same brand name (such as new flavors, forms, colors, added ingredients, or package si7es) is called: a. a line e+tension. b. a brand e+tension. c. multibranding. d. new brands. Answer: (&) Di ic!"#$: (*) P&'e: %65- 2i'!re 813 -1. A company might introduce (((((((((((((((( as a low6cost, low6risk way to introduce new products in order to meet consumer desires for variety, to utili7e e+cess capacity, or simply to command more shelf space from resellers. a. duobranding b. line e+tensions c. brand e+tensions d. new brands Answer: (,) Di ic!"#$: (%) P&'e: %65- 2i'!re 813 - . ((((((((((((((( is a strategy of using a successful brand name to launch a new or modified product in a new category. a. Duobranding b. Aine e+tension c. !rand e+tension d. :ultibranding

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Answer: (c) Di ic!"#$: (%) P&'e: %6(- 2i'!re 813 -'. 2f Konda uses its company name to cover such different products as its automobiles, lawn mowers, and motorcycles, it is practicing which of the following strategies/ a. new brand strategy b. line e+tension strategy c. multibrand strategy d. brand e+tension strategy Answer: (+) Di ic!"#$: (%) P&'e: %6(- 2i'!re 813 -*. 9eiko watches cover many different buying motives, as well as desires for different features. Mor e+ample, higher6priced 9eiko Aasalles cover the upper end of the watch market, while 9eiko0s %ulsar covers the lower end. &he Aasalle and %ulsar would be called: a. bracket brands. b. Ki6Ao brands. c. flanker brands. d. end67one brands. Answer: (c) Di ic!"#$: (%) P&'e: %6( --. .hen a company enters a new product category for which its current brand names are not appropriate, it will likely follow which of the following brand strategies/ a. product e+tensions b. line e+tensions c. brand e+tensions d. new brands Answer: (+) Di ic!"#$: (%) P&'e: %6(- %68- 2i'!re 813 -,. 2f a company is following a branding policy of weeding out weaker brands and only focusing their marketing dollars on brands that can achieve the number6one or 6two market share positions in their category, then the company is probably pursuing a: a. megabrand strategy. b. metabrand strategy. c. minibrand strategy. d. brand elimination strategy. Answer: (&) Di ic!"#$: ()) P&'e: %68

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-1. (((((((((((((((( is the activities of designing and producing the container or wrapper for a product. a. Aabeling b. %ackaging c. %roduct support services d. %roduct line decisions Answer: (,) Di ic!"#$: (*) P&'e: %68 -3. &raditionally, the primary function of the package was to: a. promote the product. b. introduce the product to a new market. c. contain and protect the product. d. describe the product and attract attention. Answer: (c) Di ic!"#$: (*) P&'e: %68 -4. &he first federal Act to control labels on packages (to ensure that no false, misleading, or deceptive labels or packages were allowed) was the: a. 8obinson6%atman Act. b. 9herman Antitrust Act. c. Mederal &rade $ommission Act of 141*. d. Aanham Act. Answer: (c) Di ic!"#$: (%) P&'e: )77- )7* ,5. A group of products that are closely related because they function in a similar manner is called a: a. product line. b. brand line. c. brand family. d. product position. Answer: (&) Di ic!"#$: (*) P&'e: )7) ,1. &he number of items within the product line is identified as being the: a. product line width. b. product line strength. c. product line length. d. product line consistency. Answer: (c) Di ic!"#$: (%) P&'e: )7)

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, . ((((((((((((((( occurs when a company lengthens its product line beyond its current range. a. %roduct line strength b. %roduct line consistency c. %roduct line mobility d. %roduct line stretching Answer: (+) Di ic!"#$: (%) P&'e: )7) ,'. .hen a company lengthens its product line beyond its current range, it is engaged in: a. brand e+tension. b. product line stretching. c. product line reduction. d. product line filling. Answer: (,) Di ic!"#$: (%) P&'e: )7) ,*. $ompanies in the middle range of the market who wish to e+tend their product lines to both the upper and the lower end are considering: a. an upward stretch. b. a downward stretch. c. a stretch in both directions. d. a middle6end stretch. Answer: (c) Di ic!"#$: (*) P&'e: )73 ,-. (((((((((((((((( is the set of all product lines and items that a particular seller offers for sale. a. %roduct line b. %roduct mi+ c. %roduct allotment d. %roduct choice Answer: (,) Di ic!"#$: (*) P&'e: )74 ,,. %roduct mi+ (((((((((((((((( refers to the number of different product lines the company carries. a. width b. depth c. length d. consistency Answer: (&) Di ic!"#$: (%) P&'e: )74

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,1. &he total number of items that the company carries within its product lines refers to the ((((((((((( of the product mi+. a. width b. depth c. length d. consistency Answer: (c) Di ic!"#$: (%) P&'e: )74 ,3. &he number of different versions of each product offered in the product line is called its: a. width. b. depth. c. length. d. consistency. Answer: (,) Di ic!"#$: (%) P&'e: )74 ,4. Kow closely related the various product lines are in end use, production requirements, distribution channels, or in some other way is called: a. width. b. depth. c. length. d. consistency. Answer: (+) Di ic!"#$: (%) P&'e: )74 15. &he characteristic of service meaning that it cannot be seen, tasted, felt, heard, or smelled before being bought is called: a. intangibility. b. inseparability. c. variability. d. perishability. Answer: (&) Di ic!"#$: (%) P&'e: )75- 2i'!re 814 11. &he fact that services are sold, produced, and consumed at the same time refers to which of the following service characteristics/ a. intangibility b. inseparability c. variability d. perishability Answer: (,) Di ic!"#$: (*) P&'e: )75- )7(- 2i'!re 814

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1 . &he quality of a service depends on who provides it, as well as when, where, and how it is provided. &his is an e+ample of which characteristic of services/ a. intangibility b. inseparability c. variability d. perishability Answer: (c) Di ic!"#$: (%) P&'e: )7(- 2i'!re 814 1'. &he fact that a business traveler may have one very positive check6in e+perience at a hotel and then a very negative check6in e+perience with a different employee on a subsequent visit is evidence of service: a. intangibility. b. inseparability. c. variability. d. perishability. Answer: (c) Di ic!"#$: (*) P&'e: )7(- 2i'!re 814 1*. &he fact that services cannot be stored for later use or sale is evidence of their: a. intangibility. b. inseparability. c. variability. d. perishability. Answer: (+) Di ic!"#$: (*) P&'e: )7( 1-. 9uccessful service companies focus their attention on both their customers and their employees. &hey understand (((((((((((((((((((, which links service firm profits with employee and customer satisfaction. a. internal marketing b. service6profit chains c. interactive marketing d. service differentiation Answer: (,) Di ic!"#$: ()) P&'e: )7( 1,. 2f a firm is practicing ((((((((((((((((((((, the firm is training and effectively motivating its customer6contact employees and all of the supporting service people to work as a team to provide customer satisfaction. a. double6up marketing b. internal marketing c. interactive marketing d. service marketing Answer: (,) Di ic!"#$: (%) P&'e: )76

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11. (((((((((((((((((( means that service quality depends heavily on the quality of the buyer6seller interaction during service encounters. a. Double6up marketing b. 2nternal marketing c. 2nteractive marketing d. 9ervice marketing Answer: (c) Di ic!"#$: (%) P&'e: )76 13. &he solution to price competition is to develop a differentiated: a. product, price, and promotion. b. offer, delivery, and image. c. package and label. d. international .eb site. Answer: (,) Di ic!"#$: (%) P&'e: )*7 14. $ompanies should take steps not only to provide good service every time but also to recover from service mistakes when they do occur. &he first step a manager should take to ensure service quality is to: a. empower front6line service employees. b. always take back merchandise if requested. c. offer a complaint hot line. d. refer customers to the service policy found at the bottom of most sales receipts. Answer: (&) Di ic!"#$: (%) P&'e: )** TRUE82ALSE QUESTIONS 35. %roducts include more than )ust tangible goods. Answer: (Tr!e) Di ic!"#$: (*) P&'e: %(8 31. A product can be a person, place, or an idea. Answer: (Tr!e) Di ic!"#$: (*) P&'e: %(8 3 . A good e+ample of a pure tangible good would be air travel. Answer: (2&"se) Di ic!"#$: (*) P&'e: %(8 3'. A company0s offer to the marketplace often includes both tangible goods and servicesFfor e+ample, when people patroni7e restaurants both for their food and their service. &his would be an e+ample of a hybrid offer.

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Answer: (Tr!e) Di ic!"#$: (*) P&'e: %(8 3*. &he product can be perceived as having three distinct levels. &he first of these is called the actual product. Answer: (2&"se) Di ic!"#$: (*) P&'e: %(8- %(6- 2i'!re 81* 3-. &he augmented product includes such variables as packaging, the brand name, and the quality level of the product. Answer: (2&"se) Di ic!"#$: (%) P&'e: %8%- 2i'!re 81* 3,. A key component of the augmented product is the warranty. Answer: (Tr!e) Di ic!"#$: (%) P&'e: %8%- 2i'!re 81* 31. &he convenience product is a consumer product that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. Answer: (Tr!e) Di ic!"#$: (*) P&'e: %8% 33. A good illustration of a specialty product is a maga7ine or a newspaper. Answer: (2&"se) Di ic!"#$: (%) P&'e: %8%- %8)- T&,"e 81* 34. 2f a marketer were attempting to sell life insurance, the type of consumer product category that it would most likely fall into would be an unsought product. Answer: (Tr!e) Di ic!"#$: (%) P&'e: %8)- T&,"e 81* 45. 8ed $ross blood donations are considered to be specialty products and, therefore, have a specialty offer to the consumer. Answer: (2&"se) Di ic!"#$: (%) P&'e: %8%- %8)- T&,"e 81* 41. &he distinction between a consumer product and an industrial product is based on the purpose for which the product is bought. Answer: (Tr!e) Di ic!"#$: (*) P&'e: %8) 4 . $apital items are industrial products that aid in the buyer0s production or operations. Answer: (Tr!e) Di ic!"#$: (*) P&'e: %83

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4'. &he Ad $ouncil0s >9ay ;o to Drugs? is a good e+ample of corporate image advertising. Answer: (2&"se) Di ic!"#$: (*) P&'e: %84 4*. 8ecently, marketers have shifted from &E: (total quality management) approaches to 8<E (return on quality) programs. Answer: (Tr!e) Di ic!"#$: (%) P&'e: %8( 4-. Gnlike design, style is more than skin deep. Answer: (2&"se) Di ic!"#$: ()) P&'e: %88 4,. &here is a move away from branding because of the high cost of maintaining branding reputation and image today. Answer: (2&"se) Di ic!"#$: (%) P&'e: %86 41. A powerful brand (to be powerful and stay powerful) must have brand equity. Answer: (Tr!e) Di ic!"#$: (*) P&'e: %86- %67 43. A good brand name should suggest something about the product0s cost and price. Answer: (2&"se) Di ic!"#$: (%) P&'e: %67- %6* 44. !ecause of poor image and quality, store brands are no real threat to manufacturer0s brands as evidenced by recent sales reports. Answer: (2&"se) Di ic!"#$: (%) P&'e: %6*- %6% 155. 2f Dannon =ogurt produces an economy6si7ed yogurt, this would be an e+ample of a line e+tension. Answer: (Tr!e) Di ic!"#$: (*) P&'e: %65 151. &he packaging concept states what the package should be or do for the product. Answer: (Tr!e) Di ic!"#$: (*) P&'e: )77 15 . A product line is each individual product made by the company as it attempts to meet the needs of the marketplace. Answer: (2&"se) Di ic!"#$: (*) P&'e: )7)

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15'. %roduct line stretching occurs when a company tries to milk all the promotional dollars possible out of the company0s promotional budget. Answer: (2&"se) Di ic!"#$: (%) P&'e: )7) 15*. %roduct mi+ width refers to the number of different product lines the company carries. Answer: (Tr!e) Di ic!"#$: (%) P&'e: )74 15-. %roduct line depth refers to how closely related the various product lines are to one another. Answer: (2&"se) Di ic!"#$: (%) P&'e: )74 15,. 9ervice intangibility means that a service cannot be stored for later sale or use. Answer: (2&"se) Di ic!"#$: (%) P&'e: )75 151. 9ervice inseparability means that services cannot be separated from their providers. Answer: (Tr!e) Di ic!"#$: (*) P&'e: )75- )7( 153. !ecause the customer is present as the service is produced, provider6customer interaction is a special feature of services marketing. Answer: (Tr!e) Di ic!"#$: (*) P&'e: )7( 154. 2nternal marketing means that perceived service quality depends heavily on the quality of the buyer6seller interaction during the service encounter. Answer: (2&"se) Di ic!"#$: (%) P&'e: )76 ESSAY QUESTIONS 115. "ach year, 8evlon sells more than N .* billion worth of cosmetics, toiletries, and fragrances to consumers around the world. 8evlon knows that when it sells perfume, it sells much more than fragrant fluids. Aist and then briefly discuss what 8evlon sells in addition to a tangible product. Answer: Mragrance marketers know that if there is >;o smellO no sell,? however, the maker sells many things beyond the scent. 2n fact, it might be the last element developed. According to information presented in the te+t, 8evlon carefully researchers women0s feelings about

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themselves and their relationships with others. 2t then develops and tests new perfume concepts that match women0s changing values, desires, and lifestyles. &o summari7e, 8evlon takes the physical product, the product0s name, and even the package to market to women0s lifestyles, self6e+pression, and e+clusivity. 2t does this by focusing on achievement, success, status, femininity, romance, passion, fantasy, memories, hopes, and dreams. Di ic!"#$: (*) P&'e: %(41%(( 111. "+plain the meaning of the terms product and service. $ompare the differences and similarities by e+plaining the product6service continuum. Answer: A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. 2t includes physical ob)ects, services, persons, places, organi7ations, and ideas. A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. A company0s offer to the marketplace often includes both tangible goods and services. "ach component can be a minor or a ma)or part of the total offer. &his continuum includes: (1) a pure tangible good, such as soap or toothpasteO ( ) a tangible good with accompanying services, such as an automobile company offering a car plus its warranty and repair servicesO (') a service with accompanying minor goods, such as an airline offering transportation service but serving meals while travelingO and (*) pure services where the offer is primarily a service, such as a doctor0s e+am. Di ic!"#$: (%) P&'e: %(8 11 . Demonstrate the three levels of product and any accompanying features that might be present at each level. Answer: %roduct planners need to think about products (and also services) on three levels. &he most basic level is the core product, which addresses the question: .hat is the buyer really buying/ &his level is at the center of the marketing offer. 9econd, the product planner must build an actual product around the core product. Actual products may have as many as five characteristics: a quality level, features, design, a brand name, and packaging. &hese features are combined to deliver the core benefit. Aastly, the product planner must build an augmented product around the core and actual products by offering additional consumer services and benefits. &he augmented product can include installation, delivery and credit, after6sale service, and a warranty. Di ic!"#$: (%) P&'e: %(8- %(6- %8%- 2i'!re 81* 11'. Demonstrate the differences and similarities between the four ma)or types of consumer products.

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Answer: &he four ma)or types of consumer products include convenience, shopping, specialty, and unsought products. $onvenience products are those consumer products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. &hey generally have a low price, widespread distribution, are found in convenient locations, are mass produced, and are e+emplified by products such as toothpaste and maga7ines. 9hopping products are consumer goods that the customer, in the process of selection and purchase, characteristically compares on such bases as suitability, quality, price, and style. &hey are generally higher in price, found in selective distribution outlets, are supported by advertising and personal selling, and e+emplified by ma)or appliances and televisions. 9pecialty products are consumer products with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. &hey are generally high in price, found in e+clusive outlets, carefully targeted by producers and resellers, and e+emplified by lu+ury goods such as 8ole+ watches. Aastly, unsought goods are consumer products that the consumer either does not know about, or knows about but does not normally think of buying. &hey are generally supported by aggressive advertising and personal selling, and e+emplified by life insurance. %rice and distribution varies. Di ic!"#$: (%) P&'e: %8%- %8)- T&,"e 81* 11*. Aist and briefly describe the three groups of industrial products and services cited in the te+t. Answer: &he three groups are: a). :aterials and partsFincludes raw materials and manufactured materials and parts. 8aw materials consist of farm products and natural products. :anufactured materials and parts consist of component materials and component parts. b). $apital itemsFindustrial products that aid in the buyer0s production or operations, including installations and accessory equipment. c). 9upplies and servicesFoperating supplies and repair and maintenance items. Di ic!"#$: (%) P&'e: %8)- %83 11-. .hat is social marketing/ Jive an e+ample of a social marketing effort. Answer: 9ocial marketing is the design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group. An e+ample (several are listed in the te+t) would be the Advertising $ouncil0s >9mokey the !ear? campaign. Di ic!"#$: (*) P&'e: %84- %85

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11,. Discuss the differences between a product0s design and style. Answer: Design is a larger concept than style. 9tyle simply describes the appearance of a product. 9tyles can be eye6catching or yawn producing. Gnlike style, design is more than skin deep. 2t goes to the very heart of a product. Jood design contributes to a product0s usefulness as well as to its looks. Di ic!"#$: (*) P&'e: %88 111. .hat characteri7es a good brand name/ Aist the desirable qualities a good brand name should have. Answer: A good brand name should do the following: a). 2t should suggest something about the product0s benefits and qualities. b). 2t should be easy to pronounce, recogni7e, and remember. c). &he brand name should be distinctive. d). 2t should be e+tendible. e). &he name should translate easily into foreign languages. f). 2t should be capable of registration and legal protection. Di ic!"#$: (%) P&'e: %67- %6* 113. $haracteri7e and e+plain the four possible brand strategies discussed in the chapter. Answer: A company has four choices when it comes to brand strategies. 2t can introduce line extensions, brand extensions, multibrands, or new brands. Aine e+tension is a strategy of using a successful brand name to introduce additional items in a given product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package si7es. A brand e+tension is using a successful brand name to launch a new or modified product in a new category. An e+ample would be Konda :otor $ompany moving its name from automobiles to motorcycles, snowblowers, and lawn mowers. :ultibranding offers a way to establish different features and appeal to different buying motives. 2t also allows a company to lock up more reseller shelf space. Morms can be flanker or fighter brands. 2n the new brand category, company may create a new brand name when it enters a new product category for which none of the company0s current brand names are appropriate. Di ic!"#$: (%) P&'e: %651%68- 2i'!re 813 114. A company0s product mi+ has four important dimensions: width, length, depth, and consistency. Define or characteri7e each.

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Answer: a). .idth refers to the number of different product lines the company carries. b). Aength refers to the total number of items the company carries within its product lines. c). Depth refers the number of versions offered of each product in the line. d). $onsistency of the product mi+ refers to how closely related the various product lines are in end6use, production requirements, distribution channels, or some other way. Di ic!"#$: (%) P&'e: )74 1 5. 2dentify and briefly discuss the four ma)or service characteristics. Answer: A company must consider four special service characteristics when designing marketing programs: intangibility, inseparability, variability, and perishability. &hese characteristics may be summari7ed as follows: (1) service intangibilityFservices cannot be seen, tasted, felt, heard, or smelled before they are bought (a good strategy would be to try and make the service more tangible), ( ) service inseparabilityFservices are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines (a strategy might be to try to increase the provider6 customer interaction), (') service variabilityFthe service has the quality of varying greatly, depending on who provides it and when, where, and how it is provided (try to achieve consistency in the service offering), and (*) service perishabilityFservices cannot be stored for later sale or use (service firms need to design better strategies for producing a better match between demand and supply). Di ic!"#$: ()) P&'e: )75- )7(- 2i'!re 814 1 1. 2dentify what a service6profit chain is and identify the critical five links of the chain. Answer: A service6profit chain is the chain that links service firm profits with employee and customer satisfaction. &he critical five links are: a). internal service quality b). satisfied and productive service employees c). greater service value d). satisfied and loyal customers e). healthy service profits and growth Di ic!"#$: ()) P&'e: )7( 1 . Draw a distinction between internal marketing and interactive marketing.

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Answer: 2nternal marketing is marketing by a service firm to train and effectively motivate its customer6contact employees and all the supporting service people to work as a team to provide customer satisfaction. 2nteractive marketing is marketing by a service firm that recogni7es that perceived service quality depends heavily on the quality of buyer6seller interaction. Di ic!"#$: (%) P&'e: )76 APPLICATION QUESTION 1 '. A company must manage its product lines carefully. @efferson %ool and !illiard $ompany (who has manufactured high6priced, high6quality pool and billiard tables to discriminating individuals for -5 years) recently decided to embark into a new business venture which they hoped would remedy their sagging sales. &he company decided to begin to manufacture and market a line of durable but value-priced pool tables intended for private and arcade use. Gsing the correct terminology with respect to product line decisions, describe what @efferson is attempting to do and give a )udgment about whether you think the new product line might be a good fit. !e sure to e+plain your rationale and )ustify your conclusions. Answer: &he instructor might want to give additional instructions or embellish the e+ample to fit individual course needs. Kowever, if taken in the form presented above, the student should e+plain, and then choose from the following product line alteration options: a) %roduct line stretch(ing)Foccurs when a company lengthens its product line beyond its current range. &his stretch can occur through downward, upward, or both direction stretches. 2f the company initially began as an upper6end market company (as @efferson did), they can later stretch their lines downward to plug a market hole that otherwise would attract a new competitor, to respond to a competitor0s attack on their upper end, or add at this level because low6end products seem to be having faster growth (this is probably what is happening in the @efferson case). <r, if the company began in the low6 end portion of the market (which @efferson did not), the company might stretch their lines upward because it finds faster growth taking place in higher6end market. &he company could also decide to stretch in both directions. b) &he company could also pursue a line filling strategy (where the company would add more items within the present range of the line). &here could be several reasons for adding a product line filling strategyFreaching for e+tra profits, satisfying dealers, using e+cess capacity, being the leading full6line company, and plugging holes to keep out competitors. 9ince markets rather than products seem to be involved in this case, this alternative is not as sound as the downward stretch option.

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9tudents should see that the best alternative for the company would be to e+ercise a downward stretch. 2f the company is concerned that the stretch might cheapen their image and prestige, the move could be accomplished under another brand name. &he company should also consider that, if they only been selling to individuals, selling to arcades might be a real challenge. .hatever they decide, the students should provide a rationale for their decision. &he instructor might also allow for creativity (such as the student that recommends new product lines such as Air Kockey or Moosball). Di ic!"#$: ()) P&'e: )7)- )73

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