Chapter 8 Practice Exam Marketing

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Chapter 8 practice exam (marketing)
Principles of Marketing (University of Windsor)
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Chapter 8—Product Concepts
MULTIPLE CHOICE
1. Raye stopped at a convenience store to buy milk. While he was paying for his milk, he noticed a
fresh doughnut display and bought two glazed doughnuts. In this example, what are the
doughnuts?
a. specialty products
b. business products
c. unsought products
d. convenience products
ANS: D
Convenience products are usually relatively inexpensive items that receive little shopping effort.
An item bought on an impulse like the doughnut is an example.
PTS: 1 DIF: Application REF: p. 242 OBJ: 2

BLM: Higher order
2. Which of the following is everything, both favourable and unfavourable, that a person receives in
an exchange?
a. product
b. brand equity
c. transaction
d. quality
ANS: A PTS: 1 DIF: Definition REF: p. 246
OBJ: 1 BLM: Remember
3. What is the starting point in creating a marketing mix?

a. price
b. product
c. distribution channel
d. production line
ANS: B
The product must be specified before other marketing mix variables can be planned.
PTS: 1 DIF: Comprehension REF: p. 246

OBJ: 1 BLM: Higher order
4. What are the additional customer services that are built around the actual product purchased by
consumers?
a. supplemental product
b. core product
c. augmented product
d. auxillary product
ANS: C PTS: 1 DIF: Definition REF: p. 246
Copyright © 2012 Nelson Education Limited 8-1

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5. Why is creation of a product the starting point for the marketing mix?
a. Product development takes the longest amount of time to complete.
b. The production department must know what to produce first.
c. Determination of the price, promotional campaign, and distribution network cannot begin
until the product has been specified.
d. Production strategy is the first of the four Ps listed in the marketing mix.
ANS: C
The product is the first decision around which the others are based.

6. Unilever owns the Lipton tea brand. When Unilever introduced Pyramid tea bags, which provide
tea leaves with more room to move, and therefore produce a better-tasting brew, it was an example
of which of the following?
a. a quality modification
b. an aesthetics modification
c. a functional modification
d. a product line contraction
ANS: C PTS: 1 DIF: Application REF: p. 246
7. Which of the following is a tangible feature of a product?

a. packaging
b. brand equity
c. company
d. brand name
ANS: B PTS: 1 DIF: Definition REF: p. 246
8. In the long run, regardless of the effort put into the product management process, what is the most
important factor determining if a consumer product will succeed or fail?
a. the marketing plan it selects for its products
b. how well the manufacturer satisfies its customers’ needs
c. the way it implements its production strategy
d. the competition encountered by the manufacturer
ANS: B
Products succeed because they deliver benefits and satisfy customer needs.

8-2 Copyright © 2012 Nelson Education Limited

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9. When Bay Minette Nursery markets bedding plants to businesses to make their sidewalks,
entrances, and grounds more attractive, what is it selling?
a. unsought products
b. business products
c. specialty products
d. consumer products
ANS: B
Business products are purchased for (1) use in the production of other goods or services, (2) use in
an organization’s operations, or (3) resale to other customers.

10. What is the consumer product classification system based on?

a. the physical attributes of the product
b. the amount of effort consumers spend to acquire the product
c. how the market is segmented
d. the way the products are manufactured
ANS: B
Products are classified by the amount of effort that is normally expended in the shopping process.

11. What type of products are purchased with little shopping effort and are purchased regularly,
usually with little planning, and require wide distribution?
a. generic
b. unbranded shopping
c. specialty
d. convenience
ANS: D PTS: 1 DIF: Definition REF: p. 246
12. Erika had a bicycle tire go flat while on a biking trip across Nova Scotia. She normally uses
Michelin tires but settled for an Excel brand tire because that was the only brand stocked at the
closest bicycle shop. For Erika, what is the recent tire purchase an example of?
a. homogenous shopping
b. component product
c. heterogeneous shopping
d. convenience product
ANS: D
She spent very little shopping effort buying the tire due to the emergency.

BLM: Higher order

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13. Which of the following is the best example of a convenience product?

a. sheets that match the new guest room wallpaper
b. a cup of coffee purchased on the way to work
c. an alarm clock purchased by an individual who wants to always be punctual
d. a $39.95 rose bush for the front yard of a new home
ANS: B
This is a relatively inexpensive purchase. and if the individual was on her way to work, she
probably did not do any comparison shopping.

BLM: Higher order
14. What does the convenience product marketing strategy include?

a. higher than ordinary prices
b. few retail outlets other than convenience stores
c. wide distribution of the product
d. heavy advertising
ANS: C
To sell large amounts of products that consumers are unwilling to search for, there must be a large
number of retail outlets.

15. Compared to the other classifications of consumer products, shopping products are which of the
following?
a. usually less expensive than convenience products
b. purchased immediately after the consumer realizes he or she needs them
c. widely available so they need little or no promotion
d. usually more expensive than convenience products and are found in fewer stores
ANS: D
Shopping products are typically items such as clothing, automobiles, and major appliances.
Consumers usually compare items across brands or stores.

16. Wilbur wanted an umbrella table for his patio. He watched newspaper ads until he found one on
sale. For Wilbur, the umbrella table is what type of product?
a. component
b. shopping
c. unsought
d. specialty
ANS: B
Wilbur is comparing ads looking for a low price. This is shopping product behaviour.

BLM: Higher order

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17. Which of the following is the best example of a shopping product for most consumers?
a. a meal plan at the university cafeteria
b. a new television set
c. the text for this marketing class
d. a soft drink to drink before class
ANS: B
Shopping products are typically more expensive than convenience products (alternatives a and b)
and are found in fewer shops. Alternative c describes a specialty product because of the
specification of a brand name.

BLM: Higher order
18. What are the two types of shopping products?

a. unsought and convenience
b. heterogeneous and homogeneous
c. consumer and business
d. generic and family
19. What are products that consumers see as being basically the same, so consumers shop for the
lowest price?
a. product equivalents
b. heterogeneous shopping products
c. low-prestige specialty products
d. homogeneous shopping products
20. Sela needs to buy several pieces of luggage. While there are several different manufacturers of
luggage, Sela believes all of them are basically alike. The only feature she is genuinely concerned
about is low price. For Sela, as what type of product would luggage be classified?
a. unsought
b. specialty
c. homogeneous shopping
d. heterogeneous shopping
ANS: C
Homogeneous products are products that consumers see as being basically the same, so consumers
shop for the lowest price.

BLM: Higher order

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21. Comparisons between products are often quite difficult because they may have unique features and
different levels of quality and price. These types of product are seen by consumers to differ in
quality, style, suitability, and lifestyle compatibility. What products are they?
a. heterogeneous shopping products
b. comparative convenience products
c. product equivalents
d. homogeneous shopping products
22. Which of the following products is most likely to be considered an example of a heterogeneous
shopping product?
a. a stapler
b. an off-campus apartment
c. a package of pencils
d. a flea collar
ANS: B
Heterogeneous shopping products are essentially different. Housing is one of the examples given
in the text.

BLM: Higher order
23. When Ruby wanted new window treatments for her living room, she visited both Home Depot and
Rona home-improvement stores, as well as three interior design stores before selecting drapes. If
Ruby represents a typical window treatment buyer, what are drapes?
a. an operating supply good
b. an heterogeneous shopping good
c. a homogeneous luxury product
d. a shopping specialty good
ANS: B
Window treatments would be considered heterogeneous shopping products because consumers
perceive various window treatments to have distinctive qualities such as patterns, colours, or levels
of functionality that match the style of the customer.

BLM: Higher order
24. Which of the following products are searched for extensively and may be quite expensive,
substitutes are not acceptable, and distribution may be limited?
a. exclusive shopping
b. heterogeneous convenience
c. branded shopping
d. specialty

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25. The most expensive refrigerator in the world is the Sub-Zero brand. Many consumers believe it to
be the best brand made. For people who insist on having the best kitchen money can buy and will
accept no less, the Sub-Zero refrigerator is an example of what kind of product?
a. heterogeneous shopping
b. specialty
c. convenience
d. exclusive
ANS: B
Sub-Zero refrigerators are expensive, and no substitutes are acceptable.

BLM: Higher order
26. Craig had just received a promotion as product manager for a consumer goods manufacturer. To
celebrate, he told Tracey that he was going to buy a bottle of Chateau Margeaux, an expensive red
French wine, for them to share. After driving to two liquor outlets but not finding his Margeaux,
Tracey suggested that they just buy a bottle of French champagne instead. But Craig insisted that
they try a third store on the other side of the city. For Craig, what is Chateau Margeaux?
a. a specialty good
b. a homogeneous shopping good
c. an inconvenience good
d. a heterogeneous shopping good
ANS: A PTS: 1 DIF: Application REF: p. 248
27. When deciding on distribution plans for specialty products, what do companies generally ensure?
a. that the items are made available only through the mail
b. that the items are distributed to a considerable number of stores in a geographic area
c. that the items are made available in a large number of stores in a geographic area
d. that the items are distributed to only a few stores in the geographic area
ANS: D
Specialty products are searched for extensively, and substitutes are not acceptable. These products
may be quite expensive, and often distribution is limited.


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28. Horace has wanted to purchase a Rolex watch ever since he saw his first one at age 18. He has
done extensive research into the history of Rolex. Finally, at age 55, he has achieved the income
level to be able to purchase one. For Horace, the Rolex watch is an example of what type of
product?
a. unsought
b. specialty
c. business
d. consumer
ANS: B
The fact that Horace did not consider another brand shows that the watch is a specialty product.

BLM: Higher order
29. Which products are not known about or not actively searched for by consumers, and require
aggressive personal selling and highly persuasive advertising?
a. unsought
b. shopping
c. specialty
d. hidden
30. Genette’s daughter often suffers from earaches and must take an antibiotic. Genette hates the fact
the antibiotic prescribed must be taken for 10 days and has an unpleasant taste. Genette does not
know that she can ask her doctor for a new antibiotic called Zithromax that works when taken for
only five days and that has a pleasant cherry flavour. For Genette, what type of product is
Zithromax because she doesn’t know it exists?
a. convenience
b. heterogeneous shopping
c. unsought
d. exclusive
ANS: C
New products are often examples of unsought products until promotion reveals their existence.

BLM: Higher order
31. Typically, what are unsought products?

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

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32. Irwin was initially excited about his new career sales rep position with Forever Memorials. He
soon began to recognize, however, that his work was really cut out for him. Selling tombstones
(memorials or monuments) was tough work. What category of product was Irwin selling?
a. shopping
b. unsought
c. specialty
d. convenience
ANS: B PTS: 1 DIF: Application REF: p. 248
33. Norman was spending “quality time” with his grandson Danny who was eagerly reading the BMW
automobile website featuring the 400 horsepower M3 model. Norman remarked that he would
have no use for that kind of power and performance but “in his youth” things would have been
different. As far as Danny’s grandfather is concerned, what would a BMW M3 be?
a. an unsought good
b. a shopping good
c. a niche good
d. a specialty good
34. Most people under the age of 25 have a strong belief in their own personal invincibility. An
insurance agency targeting this group for life insurance would find this market segment
categorizes the insurance as what type of product?
a. heterogeneous shopping
b. relationship
c. unsought
d. exclusive
ANS: C
The buyer does not actively seek to buy this product.

BLM: Higher order
35. A product line is a group of products that are closely related because of which of the following?
a. The products are all sold under the same brand name.
b. The products all function in a similar manner and provide similar benefits.
c. The same company developed the idea for each product.
d. The products share the same product managers.
ANS: B
A product line is a group of closely related products offered by the organization that basically
perform the same tasks and provide the same benefits.


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36. The large variety of frozen dinners marketed by Stouffer is an example of which of the following
for Stouffer?
a. a product mix
b. a product line
c. a marketing mix
d. a mix consistency
ANS: B
A product line is a group of closely related products.

BLM: Higher order
37. Which of the following consists of all of a company’s product lines and items?
a. the marketing mix
b. the product offering
c. the product mix
d. the brand line
38. How is product mix width defined?

a. the number of different product categories found within an industry
b. the number of different product lines an organization offers for sale
c. the average number of products offered by the company
d. the average number of products within each product line in the company
39. Ocean Spray manufactures Cranberry Juice Cocktails. The addition of Light Cranberry Juice
Cocktails is a way that Ocean Spray can expand which of the following?
a. its product mix width
b. its product mix depth
c. its product line width
d. its product line depth
ANS: D
Product line depth is the number of product items in a product line.

BLM: Higher order
40. Crystal decided to add bicycling accessories, such as shoes, backpacks, and cycle repair kits, to her
exclusive bicycle retail shop. What is Crystal adjusting?
a. the quality modification
b. the width of her product mix
c. the scope of her product mix
d. the depth of her product mix

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41. The leader in the industry of sports entertainment is World Wrestling Entertainment (formerly
known as the World Wrestling Federation). When it opened a nightclub in New York City and
partnered with Microsoft to create Xbox video game consoles, what did World Wrestling
Entertainment expand?
a. its product mix depth
b. its product mix width
c. its product line consistency
d. its product line depth
ANS: B
Product mix width refers to the number of different product lines that an organization offers for
sale.

BLM: Higher order
42. Unilever makes four different brands of ice cream (Magnum, Solero, Ben & Jerry’s, and Breyers).
What is this an example of?
a. Unilever’s product line width
b. Unilever’s product mix inconsistency
c. Unilever’s product mix
d. Unilever’s product line depth
ANS: D

BLM: Higher order
43. Which of the following is an example of a product modification?

a. changing the amount of management time spent overseeing production
b. changing the colour of a laundry detergent
c. increasing the number of distribution outlets
d. dropping a product from the product line
ANS: B
Product modification entails changing one or more of a product’s characteristics.

BLM: Higher order

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44. A go-cart manufacturer recently added shock absorbers to make the ride in its go-carts smoother. It
has not changed its prices. What type of modification is this?
a. repositioning
b. quality
c. style
d. upsale
ANS: B
Quality modifications entail changing a product’s dependability or durability.

BLM: Higher order
45. Hellman’s is a brand name owned by Unilever. It is most often recognized as a brand of
mayonnaise. When Unilever introduced Hellman’s honey mustard, it was an example of what type
of strategy?
a. repositioning
b. demarketing
c. product line extension
d. cannibalization
46. One of the leading manufacturers of choir robes has added a fire retardant chemical to the fabric it
uses in making the robes. The company has not changed its prices. What type of modification is
this?
a. functional
b. quality
c. upward extension
d. repositioning
ANS: A
Functional modifications are changes in a product’s versatility, effectiveness, convenience, or
safety.

BLM: Higher order

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47. According to the text, which of the following statements about planned obsolescence is true?
a. Style modification creates planned obsolescence.
b. Planned obsolescence is not an ethical issue.
c. A company that is interested in producing a quality product would never engage in
planned obsolescence.
d. Environmentalists support planned obsolescence.
ANS: A
Environmentalists consider planned obsolescence a wasteful practice as well as unethical. There
are many manufacturers of quality clothing that engage in planned obsolescence. Planned
obsolescence can result from any type of modification.

48. According to the text, which of the following statements about planned obsolescence is true?
a. Marketers may make quality, safety, and functional modifications to existing products to
incorporate planned obsolescence into their marketing plans.
b. Planned obsolescence describes the practice of causing products to become obsolete
before they actually need replacement.
c. Consumers do not like style modifications because they dislike changes in the appearance
of goods such as clothing and cars.
d. Opponents of planned obsolescence argue that the practice is environmentally friendly.
ANS: B PTS: 1 DIF: Comprehension
REF: p. 250 OBJ: 3 BLM: Higher order
49. What is a style modification?

a. a safety improvement
b. an aesthetic product change
c. a change in the product’s durability or dependability
d. an improvement in product versatility and effectiveness
50. For years, many people thought plastic wrap was almost impossible to use and refused to buy the
product. The manufacturer of Saran plastic wrap has spent many advertising dollars advising
customers on how to eliminate the problems associated with the use of plastic wrap. What has this
manufacturer engaged in?
a. diversification
b. product mix expansion
c. repositioning
d. product line expansion
ANS: C
Repositioning is changing consumers’ perceptions about a brand.

BLM: Higher order

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51. 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. use of product cannibalization
b. repositioning
c. contraction of number of services offered by the utility company
d. adding new services to its product line
ANS: B
Repositioning is a firm’s attempt to change customer perceptions of a product.

BLM: Higher order
52. Meaty Bones dog biscuit recently advertised that its treats are now bigger and would last longer
than previously. The maker of Meaty Bones has made what type of modification in its product?
a. implied
b. functional
c. adaptive
d. aesthetic
ANS: B
The dog treat is now more effective because it lasts longer.

BLM: Higher order
53. Which of the following commonly occurs soon after style modification?
a. marketing innovation
b. planned obsolescence
c. implied repositioning
d. planned functionality
ANS: B
Planned obsolescence is a term commonly used to describe the practice of modifying a product so
that those already sold become obsolete.

54. According to the text, what motivates firms to reposition established brands?
a. an allocation of a disproportionate amount of resources
b. growth of discretionary income
c. changing demographics
d. changes in technological environments
ANS: C PTS: 1 DIF: Comprehension

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55. What is the most likely reason that Jell-O stopped making celery-flavoured gelatin?
a. The brand lacked brand equity.
b. The product’s identity could not be trademarked.
c. The product did not create significant cognitive dissonance.
d. The product was not contributing to the manufacturer’s profits.
ANS: D
This was an example of a product line contraction.

BLM: Higher order
56. The liquor industry is attempting to revive the stagnant spirits industry by introducing low-alcohol
cocktails such as Jack Daniel’s Country Cocktails, Smirnoff Quenchers, and Southern Comfort
Cocktails. What is the strategy behind these new product introductions?
a. product item contractions
b. product portfolio width adjustments
c. portfolio breadth expansions
d. product line extensions
ANS: D
Product line extension occurs when a firm adds a product to an existing product line to compete
more broadly in the industry.

BLM: Higher order
57. Axe is a brand of body deodorant spray. The product’s manufacturer has recently introduced Axe
shower gel products. Axe shower gel products are examples of the implementation of what type of
strategy?
a. portfolio breadth expansion
b. product line extension
c. product portfolio width adjustment
d. repositioned marketing mix
ANS: B

BLM: Higher order
58. Which of the following is the part of the brand that can be spoken?
a. brand equity
b. service mark
c. brand name
d. trademark

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59. What is the symbol in a brand that cannot be spoken?

a. quality mark
b. brand equity
c. intangible product
d. brand mark
60. Joseph Confectionery has decided to start marketing a line of Christian-oriented candy under the
Testamint brand name. The candy maker is optimistic about establishing a brand in the
marketplace and has high hopes of its success. As a marketing consultant, you inform the candy
maker that branding can do all of the following EXCEPT which one?
a. possibly yield a larger market share
b. aid in positioning
c. encourage consumer repeat purchasing
d. ensure a higher margin of profit
ANS: D
Nothing can guarantee a higher profit margin.

BLM: Higher order
61. Coca-Cola is the best known brand name in the world. The name has a high perceived quality and
high brand loyalty among soft drink users. The company has developed the brand name for over
100 years. Which of the following does Coca-Cola have?
a. a valuable brand quality standard
b. a valuable brand loyalty hierarchy
c. a valuable evoked set
d. a valuable brand equity
ANS: D
The term brand equity refers to the tremendous value of company and brand names.

BLM: Higher order
62. BMW cars have a strong reputation for high quality, superior performance, and high resale value.
What can BMW be said to have?
a. strong brand endurance
b. strong brand performance
c. strong brand engineering
d. strong brand equity
ANS: D PTS: 1 DIF: Application REF: p. 253

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63. What refers to brands where at least 20 percent of the product is sold outside the home country?
a. master brand
b. equity brand name
c. ethnocentric trademark
d. global brand
64. A consumer who consistently and repeatedly purchases the same brand is said to have which of the
following?
a. brand loyalty
b. store loyalty
c. product loyalty
d. product repetition
ANS: A
Brand loyalty is the consistent preference of the same brand by the same consumer. Product
loyalty could easily involve a variety of brands.
PTS: 1 DIF: Definition REF: p. 253 OBJ: 4

BLM: Remember
65. A Toronto diamond distributor has developed the first branded diamond called Hearts on Fire to
help smaller retailers counter the volume jewellers’ aggressive price discounting. What is this
move meant to do?
a. create a catchy phrase to promote diamonds
b. combat the quality appeal of generic products
c. combat low-cost production of generic brands
d. build product identity and customer loyalty
ANS: D
Products in categories that traditionally have not been branded are now attempting to establish
brand names that companies hope will build loyalty.

BLM: Higher order
66. In selecting a good brand name, which of the following are desirable?
a. names that suggest low price
b. names that suggest something about the customer
c. names that are creative
d. names that are easy to translate into other languages

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67. Which of the following BEST describes brand loyalty?

a. It can encourage competition.
b. It can help ensure repeat sales.
c. It can increase product diffusion.
d. It can shorten the amount of time a product spends in the maturity stage.
ANS: B
Brand loyalty ensures repeat and regular sales.

68. Websites for manufacturers such as General Electric, Toyota, and Benjamin Moore paint can
provide these businesses with a nontraditional way to do which of the following?
a. help their product brand names become generic
b. avoid income taxes on international sales
c. get away with deceptive market practices because the web is not regulated
d. generate brand awareness
ANS: D
See Gerber, Procter & Gamble, and Campbell’s Soup examples in text.

BLM: Higher order
69. Because of who owns them, the brand names of producers such as Kellogg’s, Sherwin Williams,
Harley-Davidson, and Ocean Spray are called which of the following?
a. manufacturers’ brands
b. master brands
c. individual brands
d. family brands
70. Walmart sells canned drinks under the brand name Sam’s Choice. This is an example of what type
of brand?
a. family
b. manufacturer’s
c. corporate
d. private
ANS: D
A private brand is one owned by the retailer.

BLM: Higher order

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71. Which of the following statements describes an advantage to retailers associated with developing
their own brands?
a. Higher gross margins are available on private brands.
b. Dealers often buy in large quantities and thus always have a ready supply.
c. Private brands are normally delivered more promptly by the manufacturer.
d. Private brands, particularly those owned by discounters, are perceived to be of higher
quality.
ANS: A
Private brands carry higher margins because manufacturers do not need to promote them. See
Exhibit 8.5.

72. A small chain of supermarkets in Manitoba sells only manufacturers’ brands. According to the
text, which of the following is the BEST argument to dissuade the supermarket chain owner from
selling only manufacturers’ brands?
a. Relying on the manufacturer or wholesaler to deliver a national brand quickly is optimistic
at best.
b. Manufacturers typically offer a lower gross margin than could be earned on private-label
brands.
c. A well-known manufacturer’s brand will not enhance the chain’s image.
d. Manufacturers rarely spend money advertising the brand name to consumers.
ANS: B
The dealer will get a higher gross margin on a private brand. See Exhibit 8.5.

BLM: Higher order
73. President’s Choice Chocolate Chip Cookies are manufactured specifically for sale in Loblaws and
sister retailer stores. President’s Choice Cookies are an example of which of the following?
a. private brand
b. family brand
c. manufacturer’s brand
d. generic brand

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74. Kmart markets Route 66 brand clothing in its stores. Kmart stores are the only places where this
brand is sold at the retail level. This is an example of what type of brand?
a. family
b. manufacturer’s
c. private
d. master
ANS: C
Manufacturers must decide whether to use their own names on their products or to distribute the
products with a wholesaler’s or retailer’s brand name. If they use the name of a wholesaler or
retailer, it is a private branding strategy.

BLM: Higher order
75. Unilever markets offers brands such as Rama margarine, Rexona deodorant, I Can’t Believe It’s
Not Butter spread, and Axe shower gels. Unilever appears to be using which type of branding
strategy?
a. individual
b. family
c. equity
d. private
ANS: A
Individual branding is the policy of using different brand names for different products. Individual
brands are used when products differ greatly in use, performance, quality, or targeted segment.

BLM: Higher order
76. Procter & Gamble makes Camay soap for people concerned with soft skins and Safeguard for
those who want deodorant protection. What type of strategy is Procter & Gamble using?
a. combination branding
b. individual branding
c. trademarked branding
d. private branding
ANS: B
An individual brand strategy allows for development of a unique brand image so as to distinguish
between the two different products.

BLM: Higher order

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77. 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 vapour rub.
The package showed both the Breathe Right and the Vicks brand names. What type of branding is
this?
a. equity
b. functional
c. ingredient
d. family
ANS: C
Using two or more brand names in conjunction is cobranding. Ingredient branding is a form of
cobranding.

BLM: Higher order
78. What happens when two or more established brand names of different companies are used on the
same product?
a. cobranding
b. cannibalization
c. brand extension
d. family branding
79. Which of the following is a legal term indicating the owner’s exclusive right to use a brand name
or other identifying mark?
a. patent
b. trademark
c. private brand
d. brand
80. Rollerblades is a brand name for in-line skates. People often refer to Rollerblades as if it were the
product name. The company that makes Rollerblades may someday find its brand name becomes
which of the following?
a. an equity brand
b. a certified name
c. a generic product name
d. a trademark
ANS: C
If a brand name becomes synonymous with the product category, it can become generic.
PTS: 1 DIF: Application REF: p. 256-257 OBJ: 4

BLM: Higher order

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81. What happens when a product name becomes generic?

a. The price will have to drop to appeal to lower-income consumers.
b. The firm must use black-and-white packaging.
c. Competitors are prohibited by law from using the trademark.
d. The product name is no longer recognized as the exclusive property of one firm.
ANS: D
A generic product name can be used by any firm and is public property.
PTS: 1 DIF: Comprehension REF: p. 256-257

82. Your boss has just told you to work on getting trademark protection for a new brand of backpack
the firm has developed. The product is to be called the Thermos Pak and has a unique logo. Why
do you tell your boss that this protection will be difficult?
a. The shape of your new and unusual product cannot be legally protected.
b. Thermos is a generic product name.
c. You also use abbreviated versions of your brand name such as TeePee and T.P.
d. You will need a catchy phrase to promote the new brand.
ANS: B
A generic product name identifies a product by class of type and cannot be trademarked.

BLM: Higher order
83. Which of the following is one of the major functions of packaging?

a. to contain the product
b. to guarantee product quality
c. to facilitate competition
d. to promote the company
ANS: A PTS: 1 DIF: Comprehension
84. You have to convince your boss that packaging will be the key to increasing sales of the
company’s new line of instant pudding mixes. What do you tell him about the packaging?
a. It allows products to be shipped more easily.
b. It can be used to help promote the product.
c. It will conforms to all ethical standards.
d. It will cause no environmental damage.
ANS: B
Promotion is a prime function of packaging that can help stimulate sales.

BLM: Higher order

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85. While Starkist tuna is still available in cans, it is recently been made available in a pouch, which is
conveniently designated the “family size” pouch. What was this change in packaging the result of?
a. a brand equity strategy
b. a new means of segmenting Starkist’s market
c. a master brand strategy
d. a move toward functional obsolescence
86. According to the text, which of the following statements about bar codes is true?
a. Bar codes were first used in 2000.
b. Bar codes are also called universal pricing codes (UPCs).
c. Bar codes can be read by optical scanners.
d. Bar codes cannot be used as a marketing research tool.
ANS: C
Bar codes are the same as universal product codes. They were first developed in 1974. Bar codes
can be used in single-source research.

87. What two types of package labelling are commonly used today?
a. government-mandated and seller-controlled
b. motivational and required
c. informational and persuasive
d. functional and persuasive
88. Labels that contain standard promotional claims such as new, improved, and super are examples of
what type of labels?
a. information
b. descriptive
c. repositioning
d. persuasive
ANS: D
Persuasive labels primarily focus on a promotional theme or logo, and try to sell the customer on a
new or changed feature.

BLM: Higher order

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89. Mia’s new raincoat contains a label that reads Dry-clean only. What is this an example of?
a. an informational label
b. a persuasive label
c. a functional label
d. a federally mandated label
ANS: A
Informational labelling is designed to help consumers make proper product selections and to lower
cognitive dissonance after the purchase. These labels often include care and use information and
an explanation of construction standards.

BLM: Higher order
90. Which of the following is one of the functions of universal product codes?
a. to print product and price information on DVDs for the public
b. to allow scanners to match codes with brand names, package sizes, and prices
c. to assist the government in preparing records of customer purchases
d. to provide detailed nutritional information
ANS: B PTS: 1 DIF: Comprehension
91. Which of the following is a branding and packaging consideration for companies considering
global marketing?
a. different currencies in each country, exchange rates, and final retail prices
b. whether to use different brand names in the same markets for the same products
c. product labelling, package aesthetics, and climate considerations
d. whether to use one brand name with adaptation to local markets or to use one name but
adapt and modify it for each local market
REF: p. 262-263 OBJ: 6 BLM: Higher order
92. Which of the following is an important consideration for a French manufacturer that wants to
market its products in Canada?
a. An agreement between Canada and France should be created regarding language rules.
b. Keeping the current brand names will allow the firm to capitalize on current domestic
brand equity.
c. Unique labels may be required by the Canadian government.
d. There may be aesthetics issues associated with developing a branding strategy.
ANS: C
Brand equity in France will mean little to most Canada buyers since they will be unaware of it.
PTS: 1 DIF: Comprehension REF: p. 262-263


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93. Lands’ End clothing catalogue retailer offers a satisfaction guarantee on all merchandise it sells. In
other words, what sort of warranty does Lands’ End give its customers?
a. implied
b. express
c. descriptive
d. full
94. The label on Deagan’s new jacket that reads Will not shrink is an example of what type of
warranty?
a. descriptive
b. express
c. implied
d. limited
ANS: B
An express warranty is any written guarantee.

BLM: Higher order
95. Realizing that its product needed a warranty to gain rapid market acceptance, the manufacturer of
a high-tech system for investigating accidents produced which of the following?
a. a written guarantee that the product would work as promised and that it is fit for the
purpose it was sold
b. a label stating that the product is of the highest quality and backed by years of
manufacturing experience
c. an acknowledgment of company responsibilities for salespeople to build into presentations
d. a statement for salespeople to read to prospective buyers
ANS: A
A written guarantee is an express warranty and states what is contained in an implied warranty.

BLM: Higher order
96. The statement on the toothpaste box that brushing twice a day with this paste would remove 90
percent of all plaque from the user’s teeth is an example of which of the following?
a. a universal warranty
b. a functional label
c. an express warranty
d. an implied warranty
ANS: C
An express warranty is any written guarantee.

BLM: Higher order

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97. Shannon had every reason to believe that the antacid he purchased would relieve his stomach
problems if he followed the directions on the box. Why did he believe this?
a. due to the functional label
b. due to the express warranty
c. due to the implied warranty
d. due to the universal warranty
ANS: C
An implied warranty states that a product is fit for the purpose it was sold.

BLM: Higher order
98. All sales have an implied warranty under which of the following?
a. Label Law
b. Lanham Act
c. Competition Act
d. Bill of Rights
99. Hasem purchased an electric hedge trimmer two weeks ago and attempted to cut back bushes that
had grown over the edges of the walkway this weekend. The hedge trimmer would not cut through
the smallest branch. Under which of the following does Hasem have a legal right to demand the
hedge trimmer perform the job for which it was purchased?
a. Trademark Protection Act
b. Competition Act
c. Package Labelling Act
d. Product Liability Act
ANS: B
Under the Competition Act, all sales carry an unwritten guarantee that the good or service is fit for
the purpose of which it was sold.

BLM: Higher order

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The Alberto Culver Company manufactures a wide variety of products from hairspray to
seasonings. A large number of these products are intended for personal use. The company is
divided into three key divisions: toiletries, household, and professional. The toiletries division
sells hair care brands such as Alberto VO5, Alberto, and Bold Hold. Additionally, this division
handles the FDS line of feminine deodorant products. The household division sells brands such
as Mrs. Dash seasonings, Papa Dash salt substitute, Sugar Twin, and Static Guard. The
professional division sells brands such as Tresemme, TCB, and Indola. Each of the brands
listed above contains many individual products with varying formulations, such as the Alberto
styling products, which include mousse, gel, spritz, spray-in conditioner, and hairspray.
100. Refer to Alberto Culver Company. Based on their intended use, Alberto Culver’s toiletries
division products could best be classified as what type of products?
a. unsought
b. industrial
c. convenience
d. consumer
ANS: D
A consumer product is purchased to satisfy an individual’s personal wants.

BLM: Higher order
101. Refer to Alberto Culver Company. What could the moisturizing version of Alberto mousse be
called?
a. a product width
b. a product consistency
c. a product item
d. a product depth
ANS: C
A product item is a specific version of a product that can be distinguished as a distinct offering
among Alberto Culver’s products.

BLM: Higher order
102. Refer to Alberto Culver Company. All the products that Alberto Culver sells in each of its three
divisions are from which of the following?
a. the company’s product mix
b. the company’s product width
c. the company’s product item
d. the company’s product depth
ANS: A
The organization’s product mix includes all the products it sells.

BLM: Higher order

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103. Refer to Alberto Culver Company. Along with hair care products, Alberto Culver also markets
Sugar Twin, Molly McButter, and Mrs. Dash salt-free seasoning. This is an abbreviated listing of
a. the company’s customer mix
b. the company’s product line
c. the company’s product inconsistency
d. the company’s product mix
ANS: D
An organization’s product mix includes all of the products that it sells.

BLM: Higher order
104. Refer to Alberto Culver Company. The toiletries, household, and professional divisions compose
a. the company’s product mix width
b. the company’s product mix length
c. the company’s product mix consistency
d. the company’s product mix depth
ANS: A
Product mix width refers to the number of product lines that an organization offers.

BLM: Higher order
105. Refer to Alberto Culver Company. If a marketer looks only at the toiletries division and notes the
brands and items within only that division, what is she analyzing?
a. the width of the product line
b. the levels of the product line
c. the consistency of the product line
d. the depth of the product line
ANS: D

BLM: Higher order
106. Refer to Alberto Culver Company. Why would the Alberto Culver Company be interested in
increasing its product depth?
a. to attract buyers with the same preferences
b. to capitalize on economies of scale in production
c. to capitalize on economies of scale in production
d. to increase sales and profits by not segmenting the market

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107. Refer to Alberto Culver Company. Alberto Culver introduced Baker’s Joy in the mid-1980s as a
product for cooks to use to grease and flour baking pans. The product was not nearly as successful
as the company had hoped, and it discontinued the product in 2001. This is an example of the
implementation of what type of strategy?
a. product line extension
b. cannibalization
c. divestment
d. product line contraction
Choice Homes, Inc. built its reputation by building high-quality new homes, often at prices less
than older ones. Choice Homes used mass purchasing power, innovative high-tech
communications among employees to coordinate the building process, and other
entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time
homeowners in an effort to get people out of apartments so they can experience the joy of home
ownership for the same price as rent. Choice Homes later developed the “Choice Classic” brand
name for higher-end homes targeted at wealthier dual-earner couples. The Choice Classic name
was designed to capitalize on the reputation of Choice Homes, especially for current Choice
home owners who are ready to “move up” to a larger home. Recently, Choice Homes started a
third line of homes called “Reflections,” which are expensive, custom-designed homes located
in exclusive, prestigious neighbourhoods.
108. Refer to Choice Homes, Inc. Kurt McKinney has just received a large inheritance and wants to
have his dream home built. He knows exactly the architectural design he wants. He wants a
particular Reflections home. The type of consumer product he wishes to buy is best classified as
a. a nondurable good
b. a specialty product
c. an unsought product
d. a shopping product
ANS: B
McKinney is searching for an expensive item for which he will not accept a substitute.

BLM: Higher order
109. Refer to Choice Homes, Inc. What do the three different brands of homes (Choice, Choice
Classic, and Reflections) represent?
a. the firm’s line breadth
b. the firm’s mix depth
c. the firm’s product line
d. the firm’s product itemization

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110. Refer to Choice Homes, Inc. Choice Homes is considering acquiring a mortgage and title
company to add to its marketing power in selling homes. What would this acquisition expand?
a. the firm’s line breadth
b. the firm’s product breadth
c. the firm’s product mix width
d. the firm’s product line length
ANS: C
By adding more product lines, Choice is expanding its product mix.

BLM: Higher order
111. Refer to Choice Homes, Inc. Choice Homes is considering the development of a new category of
small homes designed to replace low-income housing in the inner city. What does this strategy
represent?
a. functional modification
b. a style modification
c. a product line extension
d. a product line contraction
ANS: C
Modifications are for existing product lines and items. A new line represents extension.

BLM: Higher order
112. Refer to Choice Homes, Inc. In a recent survey, Choice Homes’s customers indicated they
thought their homes were high quality, made lots of referrals to friends, and planned to buy a
Choice Classic or Reflection home in the future. This customer reaction indicates that Choice
Homes has achieved which of the following?
a. brand equity
b. superficial skills
c. generic status
d. brand superiority
ANS: A
Brand equity indicates the brand has value because of its high awareness, perceived quality, and
brand loyalty among customers.

BLM: Higher order

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Ever wonder how video game dragons were created? Or how the makers of the movie Perfect
Storm created and filmed those gigantic waves? The same computers that performed these
stunts have also helped design everything from jumbo jets to an ice-cream-bar shape that
minimizes melting in the midday sun. And by giving doctors ways to locate tumours with
pinpoint precision, these machines are instilling new hope in victims of once-inoperable brain
cancer. It’s all the work of the most magical computer maker on the planet, Silicon Graphics
Inc. (SGI). Its engineering workstations and computer servers transform reams of data into 3-D
images. In an industry marked by huge hype, SGI is the genuine article—a truly innovative
company with clearly unique products.
113. Refer to Silicon Graphics, Inc. SGI is concerned about the success of its products with its various
customers. Regardless of the effort put into the product management process, in the long run, the
most important factor determining if SGI will succeed or fail is which of the following?
a. SGI’s product mix plan
b. the brand names it selects for its products
c. the competition SGI encounters
d. satisfaction of SGI’s customers’ needs
ANS: D
Products succeed because they deliver benefits and satisfy customer needs.

BLM: Higher order
114. Refer to Silicon Graphics, Inc. All the products (engineering centres and computer servers)
offered by SGI are closely related, though a little different based on the target markets. These
products make up which of the following?
a. SGI’s marketing mix
b. SGI’s line depth
c. SGI’s marketing line
d. SGI’s product line
ANS: D
A product line is a group of closely related products offered by the organization that basically
perform the same tasks and provide the same benefits.

BLM: Higher order

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115. Refer to Silicon Graphics, Inc. SGI wants to create a three-dimensional firearms training systems
by using the same computer technology it currently uses. This training system would simulate
actual situations by projecting images on screens and allow SWAT teams to practise their
responses. It would be an example of which of the following?
a. increase in marketing line breadth
b. marketing mix expansion
c. decrease in product mix width
d. increase in product line depth
ANS: D
Since it is described as similar to existing products, it would represent an addition to the product
line.

BLM: Higher order
116. Refer to Silicon Graphics, Inc. Most companies have customers—SGI has a fan. Artist Peter Max
is using SGI computers exclusively to create his famous graphics. He refuses to use any other
company. What is this an example of?
a. brand equity
b. product diffusion
c. product innovation
d. brand loyalty
ANS: D
Brand loyalty is the consistent preference of the same brand by the same consumer.

BLM: Higher order
117. Refer to Silicon Graphics, Inc. Despite the wide variety of technological applications for the same
product, customers know that their SGI product is fit for the purpose for which it was sold. Why?
a. because of the express warranty
b. because of the implied warranty
c. because of the product characteristics
d. because of the packaging labelling

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James Hardie began selling fibre cement siding products in the United States in 1989 to leading
builders, lumberyards, and home improvement centres. Even though ads guaranteed the
product would not rot or crack for 50 years, many builders hated the product. It was heavy to
install, and it showed every flaw in a bad framing job. In 1997, Hardie decided to run ads in
traditional lifestyle magazines and emphasize the emotional appeal of houses made with strong,
weather-resistance materials. As a result, consumers began to request that the product be used
by their builders or remodellers. Trade ads were used to explain how builders could take
advantage of this interest created by ads in lifestyle magazines. By 2000, the Hardieplank was
the number-one brand siding in North America. James Hardie is now the third most recognized
brand of building material in the world.
118. Refer to Hardie Siding Products. Hardieplank siding is an example of what type of product?
a. unsought
b. convenience
c. business
d. specialty
ANS: C
This product is used to manufacture houses.

BLM: Higher order
119. Refer to Hardie Siding Products. What is Hardieplank siding an example of?
a. a product standardization
b. a product item
c. a product mix
d. a product line
ANS: B
Hardieplank is a specific item made by the company.

BLM: Higher order
120. Refer to Hardie Siding Products. What is the term for the different types of siding the company
makes?
a. its product line
b. its product item
c. its product reference point
d. its product mix
ANS: A
The siding is a group of closely related products.

BLM: Higher order

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121. Refer to Hardie Siding Products. By changing the focus of its promotion from those in the
building industry to homeowners who saw their homes as sources of security, warmth, and
stability, which of the following strategies did Hardie Siding use?
a. market penetration
b. divestment
c. repositioning
d. harvesting
ANS: C
The company changed consumers’ perceptions of the brand.

BLM: Higher order
122. Refer to Hardie Siding Products. The goal of the company was to develop brand awareness for its
project. What was the primary reason for the creation of this brand awareness?
a. to create a specialty product
b. to create a competitive advantage through product identification
c. to sell a business product as a consumer product
d. to allow the company to concentrate its resources on marketing research
123. Refer to Hardie Siding Products. Since all of the siding products sold by Hardie are sold under
the Hardie brand name, it is clear that the company uses what type of strategy?
a. repositioning
b. cobranding
c. family branding
d. private branding
124. Refer to Hardie Siding Products. What type of warranty is Hardie offering in its promotions?
a. valid
b. responsive
c. implied
d. express
ANS: D
This is a written guarantee.

BLM: Higher order

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One common Christmas tradition in many households is the Claxton fruitcake. The fruitcake
bakery in Claxton, Georgia, makes about 6 million pounds of fruitcake annually and has $12
million in sales. One fruitcake batch weighs 375 pounds. About 70 percent of that weight is
fruits and nuts. A single batch is divided into 34 loaf pans that hold 11 pounds each. Loaves are
cooked for 100 minutes at 375 degrees. The bakery can cook 6,000 pounds at a time. During the
baking season (August–December), the bakery uses a tracker-trailer load of raisins daily. The
suggested retail price of a one-pound Claxton fruitcake is $3.69.
125. Refer to Claxton Fruitcakes. What type of consumer product is the Claxton fruitcake for people
who believe it to be an integral part of a merry Christmas?
a. a shopping product
b. a specialty product
c. an unsought product
d. a component material
ANS: B
These people will specifically seek out the Claxton brand fruitcake.

BLM: Higher order
126. Refer to Claxton Fruitcakes. Fruitcake is all the bakery manufactures. In terms of dimensions of
product offering, what does Claxton Bakery have?
a. a broad product extension mix
b. a deep product line
c. an emotional positioning strategy
d. a shallow product line
127. Refer to Claxton Fruitcakes. There are numerous jokes about the indestructibility of
fruitcake—many of them derogatory. To change its consumer image, Claxton periodically engages
in public relations campaigns in which it describes fruitcakes in terms of family Christmas
traditions. Attempts to move the fruitcake from being perceived by consumers as the butt of jokes
to a comfort food is an example of what type of strategy?
a. repositioning
b. diversification
c. demographic
d. expansion

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128. Refer to Claxton Fruitcakes. Why is brand equity important for the Claxton brand?
a. It means that its customers are extremely brand loyal.
b. It facilitates the implementation of an international repositioning strategy.
c. It means the product line has greater depth than width.
d. It guarantees an annual profit.
ANS: A
Profits are never guaranteed. Target markets change over time.

BLM: Higher order
129. Refer to Claxton Fruitcakes. Claxton is an example of which of the following brands?
a. geographical
b. manufacturers’
c. generic
d. family
130. Refer to Claxton Fruitcakes. The fruitcake baker that packages its cakes in metal cans is most
likely using its packaging to do what?
a. contain and protect the cakes during shipment
b. deal with problems commonly found in the decline stage of the product life cycle
c. reposition the product
d. create an environmental appeal
Most people recognize Butterball as a brand of turkey.
131. Refer to Butterball. Which of the following includes fresh turkey breast cuts; turkey sausages;
ground turkey; cold cuts; fresh marinated bone-in, boneless, and whole chicken; frozen chicken
products; and Butterball stuffing and gravy mixes?
a. Butterball’s line depth
b. Butterball’s product line
c. Butterball’s product mix
d. Butterball’s product inconsistency
ANS: C
An organization’s product mix includes all of the products that it sells.

BLM: Higher order

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132. Refer to Butterball, Butterball brand is also found on fresh turkey breast cuts, turkey sausages,
ground turkey, cold cuts, fresh marinated bone-in, boneless and whole chicken, frozen chicken
products, and Butterball stuffing and gravy mixes. What does Butterball use?
a. generic branding
b. family branding
c. dealer branding
d. brand grouping
ANS: B
Family branding refers to the strategy of marketing several different products under the same
brand name.

BLM: Higher order
Rexona is the number-one brand of deodorant brand worldwide.
133. Refer to Rexona. Since the product was launched in the 1960s, the company has added an
antiperspirant, a stick deodorant, deodorant wipes, and Rexona for Men. What are these additions
examples of?
a. mix repositionings
b. product portfolio width adjustments
c. product line extensions
d. product item contractions
ANS: C

BLM: Higher order
134. Refer to Rexona. The brand is a leader in Europe, South America, Asia, Africa, and the Middle
East. What is Rexona an example of?
a. a master brand
b. a universal brand
c. a global brand
d. a family brand
ANS: C
At least 20 percent of a global brand is sold outside its home country.

BLM: Higher order

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135. When a company markets several different products under the same brand name, it is referred to as
which of the following brands?
a. family
b. generic
c. umbrella
d. bargain
Tyler wants the Coca-Cola Barbie by Mattel for her birthday. This Mattel product contains
items with the Coca-Cola trademark, and Barbie is wearing an outfit in Coca-Cola red and
white.
136. Refer to Barbie. Because both brands are receiving equal treatment, what is this most likely an
example of?
a. umbrella branding
b. cooperative branding
c. complementary branding
d. family branding
137. Refer to Barbie. What are Mattel and Coca-Cola using?

a. private branding
b. conjunctive branding
c. complementary branding
d. cobranding
ANS: D
Using two or more brand names in conjunction is cobranding.

BLM: Higher order
The manufacturer of Winston cigarettes is introducing its Eco-Flask packaging, which is

crush-proof, water-resistant, and curved to better fit in a shirt pocket.
138. Refer to Winston. What type of modification has the manufacturer of Winstons made to the
cigarettes?
a. functional
b. demarketing
c. aesthetics
d. quality
ANS: A
safety.

BLM: Higher order

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139. Refer to Winston. What is Winston using its packaging primarily to do?
a. reduce environmental damage
b. contain and protect the product
c. facilitate distribution of the product
d. facilitate recycling
ANS: B
The packaging protects the cigarettes from being crushed or becoming stale.

BLM: Higher order
Cinnamon Toast Crunch, Cocoa Puffs, and Trix cereals are now available with less sugar.
Notices on the cereal boxes announce that these cereals now contain “75 percent less sugar.”
140. Refer to Low-sugar Cereals. The introduction of the low-sugar cereals are examples of which of
the following?
a. brand repositioning
b. product modifications
c. product diversifications
d. brand mix extensions
141. Refer to Low-sugar Cereals. When would these notices be examples of persuasive labelling?
a. if the federal government had not passed the Informational Labelling Act of 1996
b. if they were designed solely to promote the product
c. if the words “new” and “improved” were also included on the package
d. if consumers had not become saturated with promotional campaigns
142. Refer to Low-sugar Cereals. The notices are probably an example of what type of labelling?
a. UPC
b. informational
c. environmental
d. demographic
ANS: B
See discussion of low-fat products in text.

BLM: Higher order

lOMoARcPSD|3304254
TRUE/FALSE
1. A product may be defined as everything, both favourable and unfavourable, that a person receives
in an exchange.
ANS: T PTS: 1 DIF: Definition REF: p. 246

OBJ: 1
2. When consumers buy gasoline, most are more interested in its chemical composition than anything
else.
ANS: F
Consumers do not buy gasoline based on its chemical makeup; they buy products based on the
benefits they deliver.

OBJ: 1
3. An elementary school teacher purchased a ream of art paper, a box of crayons, and some
modelling clay. These products could be classified as either business goods or consumer goods,
depending on the teacher’s intended use.
ANS: T PTS: 1 DIF: Application REF: p. 246

OBJ: 2
4. Katerina is famous for her pound cakes, and she credits her success to her use of Robin Hood
flour. She will use only Robin Hood flour and will travel to several different stores, if necessary, to
find this particular brand. For Katerina, flour is a shopping product.
ANS: F
Because Katerina is so brand loyal and accepts no substitutes, this is an example of a specialty
product.
5. Deciding on which university to attend, with the many differences in majors available, living
options, and image differences, would be classified as a heterogeneous shopping product for most
people.
ANS: T PTS: 1 DIF: Comprehension

REF: p. 247 OBJ: 2
6. Inez believes makeup is the most important part of her wardrobe. She spends considerable time
comparing the prices, skin tone, and colour options available at various cosmetics counters in
department stores. For Inez, makeup is a convenience product.
ANS: F
For Inez, makeup is a shopping product.

lOMoARcPSD|3304254
7. Many cooks believe that nothing can beat Bakewell Cream for making delicious biscuits. Loyal
customers are willing to go to great lengths to find this product and will accept no substitutes.
Bakewell Cream is marketed only in Alberta. For these cooks, Bakewell Cream is a shopping
product.
ANS: F
For these cooks, Bakewell Cream is a specialty product.
8. YKK is the world’s largest manufacturer of sliding fasteners (zippers). It also manufactures optical
components and aluminum architectural parts. These products represent YKK’s product line.
ANS: F
All these product items represent all of the firm’s products and are unrelated. The products, in
total, represent the firm’s product mix.
9. YKK is the world’s largest manufacturer of zippers. It makes over 1,500 different types and styles
of zippers. The great variety of zippers made by YKK represents its product mix width.
ANS: F
The 1,500 various types of zippers represent depth in that product line.
10. Product modification occurs when changes are made in how the product functions, the quality of
the product is modified, or some aesthetic characteristic of the product is changed.

REF: p. 250 OBJ: 3
11. Chef’s Catalog built its reputation on selling the highest-quality baking ingredients. The catalogue
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.
ANS: F
Changing consumers’ perceptions is called repositioning.
12. Ocean Spray is known for cranberry juices. When it added Ocean Spray Craisins (dried sweetened
cranberries to be eaten like raisins), it was an example of a product mix extension for the company.
ANS: F
It’s an example of a product line extension for the company.

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13. 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 with books and papers. He plans to
use this design on all communication that the firm sends out. This design is called the firm’s brand
name.
ANS: F
Such a design would be called the firm’s brand; only the part of the brand that can be spoken—for
example, the formal name of the firm—would be called the brand name.
14. Brand names such as Kleenex, UPS, Sony, Chevrolet, and Kellogg’s are likely to have more brand
equity than brand names such as Viking, Zojirishi, Shimano, and Thule.

OBJ: 4
15. Shaun likes Michelin tires for his bicycle. If he needs new bicycle tires when Michelins are not on
sale, he is willing to pay a higher price for Michelin rather than buy some other brand of bicycle
tire. Shaun could be described as being brand loyal to Michelin.

OBJ: 4
16. Generic products are those brands whose names have become generic and now identify a class or
type of product, such as aspirin, cellophane, thermos, or shredded wheat.
ANS: F
These are generic brand names, not generic products.
17. When the manufacturer of French’s classic yellow mustard introduced French’s Dijon mustard,
French’s Honey mustard, and French’s Sweet Onion mustard, it was an example of cobranding.
ANS: F
It’s an example of family branding.
18. Rights to a trademark exist as long as the mark is used. If a firm does not use it for two years, the
trademark is considered abandoned, and a new user can claim exclusive ownership of the mark.

OBJ: 4
19. The most important functions of packaging are to contain and protect products, promote products,
facilitate product storage, and facilitate recycling

REF: p. 259 OBJ: 5

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20. When Alec picked up the candy bar, he automatically looked to see its fat content. The
information that Alec looked for was contained in a nutritional label.
ANS: T PTS: 1 DIF: Application REF: p. 260-261

OBJ: 5
21. Due to the time required to scan them, universal product codes (UPCs) are typically placed on
merchandise that would be classified as shopping products.
ANS: F
UPCs appear on most items in supermarkets and other high-volume outlets.

OBJ: 5
22. The only two branding strategies available to a company that wants to market its product globally
are to either use the brand name everywhere or to develop a new brand name for each different
market.
ANS: F
There is a third possible branding strategy: adapt and modify.

OBJ: 6
23. Cultural traits can make a package design successful in one country and a failure in another.

REF: p. 262-263 OBJ: 6
24. A warranty does not confirm the quality or performance of a good or service.
ANS: F
A warranty does, in fact, confirm the quality or performance of a good or service.
25. All sales have an implied warranty.
ANS: T PTS: 1 DIF: Definition REF: p. 263

OBJ: 7

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ESSAY
1. How would a marketer define the term product?
ANS:
A product is everything, both favourable and unfavourable, that a consumer receives in an
exchange. A product may be a tangible good, a service, an idea, or any combination of these three.
2. Products can be classified as either business/industrial or consumer products. What is the

difference between business products and consumer products? Why is it important to know about
these classifications?
ANS:
A product’s classification depends on the buyer’s intentions. Business products are purchased for
(1) use in the production of other goods or services, (2) use in an organization’s operations, or (3)
resale to other customers. Consumer products are purchased to satisfy an individual’s personal
wants. The same item can be classified as either a business or a consumer product depending on
the intended use.
It is important to know about these product classifications because business and consumer
products are marketed differently. These two target markets require different distribution,
promotion, and pricing strategies.
3. Name and briefly define the four categories of consumer products. For each category, list three
specific examples of products that would most likely be classified in that category.
ANS:
Convenience products are relatively inexpensive items that require little shopping effort. The
products are bought regularly, usually without significant planning. Convenience products may
include candy, soft drinks, combs, aspirin, small hardware items, dry-cleaning, car wash services,
and so on.
Shopping products are more usually expensive than convenience products and found in fewer
stores. Consumers spend some effort comparing brands and stores. Shopping products may include
washers, dryers, refrigerators, televisions, furniture, clothing, housing, choice of university, and so
on.
Specialty products are those exclusive items for which consumers are willing to search
extensively. Consumers are extremely reluctant to accept substitutes for specialty products. Brand
names and service quality are important. Fine watches, luxury cars, expensive stereo equipment,
gourmet restaurants, and specialized medical services could all be considered specialty products.
Unsought products are those that the buyer does not know about or does not actively seek to buy.
These products include insurance, burial plots, encyclopedias, and so on.

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4. What is the difference between a homogeneous shopping product and a heterogeneous shopping
product? Give specific examples of products that fit into each category to help illustrate your
answer.
ANS:
Homogeneous shopping products are those that consumers see as being basically the same. The
main purpose of shopping is to find the lowest-priced product that has the required features.
Appliances and televisions are homogeneous shopping products for many people.
Heterogeneous shopping products are those that consumers see as different in terms of quality,
style, suitability, and lifestyle compatibility. Comparisons among heterogeneous shopping
products are difficult because the alternatives possess unique features as well as different prices
and quality levels. These products may include furniture, clothing, housing, and the choice of a
university.
5. The Crayola brand is currently placed on a wide variety of products, including crayons (standard
and fluorescent colours packaged in a wide variety of box sizes), markers (regular and washable),
paints (watercolour and acrylic), scissors, glue, and children’s clothing. Using this illustration as
an example, answer the following questions: What is a product item? A product line? A product
mix?
ANS:
A product item is a specific version of a product that can be designated as a distinct offering
among an organization’s products. Any single product identified in the Crayola example could be
an item. For example, a crayon package with 64 colours and a sharpener, or an 8-pack of washable
markers, and so on.
A product line is a group of closely related products offered by the organization. One could
identify two Crayola product lines: arts and crafts, and clothing. Alternatively, three product lines
could be identified: clothing, drawing/painting items, and supplies. Finally, as many as six product
lines could be interpreted: crayons, markers, paints, scissors, glue, and clothing.
A product mix includes all of the products and item varieties that the company offers for sale. All
Crayola items and package variations identified above make up Crayola’s product mix.
6. Organizations derive several benefits from organizing related product items into product lines.
Briefly describe four of these benefits.
ANS:
Advertising economies. Product lines provide economies of scale, because several products can be
advertised under the umbrella of the line. Additionally, advertising a product line can enhance the
corporate name.
Package uniformities. All packages in the line may have a common look without causing any
product item to lose its individual identity. Thus, one item in a line can advertise another.

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Standardized components. Product lines provide an opportunity to standardize components, thus

reducing manufacturing and inventory costs.
Efficient sales and distribution. Product lines enable sales personnel to provide a full range of
product alternatives to their customers. Distributors and retailers are often more willing to stock
the company’s products if a full line is offered. Transportation and warehousing costs are also
likely to be less for product lines rather than for a collection of individual items.
Equivalent quality. A brand name symbolizes a certain quality level to buyers. Purchasers expect
all products in a line to be of comparable quality, so further evaluation of individual product items
need not take place.
7. Crayola makes various products that are all targeted toward elementary school children. Drawing,
painting, and supply items are sold at convenience stores, toy stores, and grocery stores. Clothing
is sold in department stores. Crayola might arrange its product items in the following way:
Drawing/Painting Supplies Textiles

Crayons, regular wax Crayon sharpeners Boys’ clothing
Crayons, fluorescent Paint brushes Girls’ clothing
Markers, regular Scissors Bed and bath linens
Markers, washable Glue
Watercolour paints Storage cases
Acrylic paints
Chalk
What is the product mix width for Crayola? What is its product line depth?
ANS:
Product mix width refers to the number of product lines that an organization offers. In this case,
the width of the product mix is three. Product line depth is the number of product items in a
product line. There are seven items in the drawing/painting line, five items in the supplies line, and
three items in the clothing line.
8. You are the product manager for a line of patio furniture for a company called SeaBreeze
Enterprises. Your assignment is to modify the existing products in the product line. Name and
describe the three categories of modification options that you could propose to SeaBreeze’s
management. Give an example under each category of a modification you could make.
ANS:
Quality modifications entail changing the product’s dependability or durability. SeaBreeze could
reduce the product quality of some of its offerings to enable a lower price, which would appeal to a
broader or price-sensitive target market. SeaBreeze could also increase quality, which would give
the corporation a competitive advantage, encourage brand loyalty, allow higher prices, or provide
new market segmentation opportunities.

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safety. SeaBreeze could add further capabilities to its patio furniture such as making it
mildew-resistant, designing it to fold and store easily, and providing wider seats for greater
comfort. The furniture could also add a safety feature to prevent unfolded furniture from
collapsing when someone sits in it.
Style modifications are aesthetic product changes. SeaBreeze could make its furniture in
fashionable colours or add designer cushions. It could even personalize it by letting customers
order the colour combinations they want. Team logos could be licensed, and the furniture sold to
fans.
9. What is a brand? What is the difference between a brand, brand name, a brand mark, a trademark,
and a service mark?
ANS:
A brand is a name, term, symbol, design, or combination of these that identifies a seller’s products
and differentiates them from competitors’ products. A brand name is that part of a brand that can
be spoken. The brand mark is the part of the brand that cannot be spoken—a picture, logo, special
decoration, or design.
A trademark is a legal term indicating the owner has the exclusive right to use the brand name or
other identifying mark; others are prohibited from using the brand without permission. A service
mark performs the same functions as a trademark but for services.
10. What are the three main objectives or benefits of branding? How do the concepts of brand equity
and brand loyalty fit into these objectives? Use these three objectives to briefly evaluate Buick’s
brand name for its new electric car, named Impact.
ANS:
Branding has three main objectives: identification, repeat sales, and new product sales.
In terms of identification, branding allows marketers to distinguish their products from all others.
Brands become familiar to consumers as indicators of quality. Brand equity refers to the value of a
well-recognized brand name. Customers can readily identify a Buick product, although the name
Impact will not be familiar at first.
Repeat sales come from satisfied customers who recognize which brands to purchase again and
which brands to avoid. Branding also helps word-of-mouth and mass media promotion. Brand
loyalty occurs when a consumer consistently prefers one brand over all others. There are
customers who are brand loyal to the Buick brand name, but brand loyalty to the Impact name may
take some time.
New product sales may be stimulated by the Buick name, but the name Impact may conjure
images of car crashes for some consumers. Other consumers may feel that the name has positive
connotations of excitement.

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11. Name and briefly describe six branding alternative strategies.
ANS:
Generic products. A firm may decide not to brand at all.
Manufacturers’ brands. A firm can place the manufacturer’s name on the product. These brands
may be either individual or family branded.
Private brands. A retailer or wholesaler may choose to put its own name on products it carries.
Individual brands. A firm may use different brand names for different products, especially when
products vary greatly in use, performance, or quality.
Family brands. A company may market several different products under the umbrella of the same
brand name. This facilitates the introduction of new, related products.
Cobranding entails placing two or more brand name on a product or its package.
12. List and briefly define the three different types of cobranding.
ANS:
Ingredient branding identifies the brand of a part that makes up a product,
Cooperative branding is where two brands receiving equal treatment borrow on each other’s brand
equity.
Complementary branding is where products are advertised or marketed together to suggest usage.
13. You are the brand manager for the Fatal Vision (FV) goggles that simulate what the world looks to
someone who is seriously intoxicated. The goggles make the user feel disoriented and dizzy and
are used in teen driving courses. The FV goggles wrap around the wearer’s face to make sure they
distort all areas of vision and come in bright orange to distinguish them from other goggles. The
slogan used in the promotion of the goggles asks, “Orange you glad you don’t drink and drive?”
What aspects of identifying this product qualify for trademark protection? If you notice another
company infringing on your trademark, what legal action can you take?
ANS:
Parts of a brand or other product identification that qualify for trademark protection include shapes
(the goggles wrap around the face), ornamental colour or design (bright orange), and the slogan
and abbreviation. Thus, many aspects of the FV brand can be trademarked.
The Trade-marks Act in Canada specifies remedies available for trademark violations.

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14. Packaging is an important component of the product strategy. List and briefly describe the four
major functions of packaging.
ANS:
Contain and protect products. Packaging contains products in liquid, granular, or other divisible
forms. Packaging allows firms to market products in specific quantities. Physical protection of the
product is also necessary because most products are handled often between manufacture and final
consumption. Packages protect products from breakage, light, heat, cold, infestation, spoilage, and
so on.
Promote products. A key role of packaging is promotion. Labels not only provide brand
identification, ingredient listings, feature specifications, and directions, but also use designs,
colours, shapes, and materials to influence consumers’ perceptions and buying behaviour. A
package differentiates a product from competing products and may associate a new product with a
family of other products from the same manufacturer. Packages are the last opportunity marketers
have to influence buyers before they make purchase decisions. This promotional role differentiates
the product from competitors’ products and establishes the brand’s image.
Facilitate storage, use, and convenience. Packages can make products easier to ship, store, and
stock on shelves. Additionally, package features or designs can make packages convenient.
Features such as disposable packages, easy-opening devices, and reusability are a plus. Package
size can also be used to segment markets.
Facilitate recycling and reduce environmental damage. Environmental compatibility is preferred,

if not demanded, by consumers. Packages should be recyclable, biodegradable, and reusable.
15. An integral part of any package is its label. There are two basic labelling strategies. Name and
describe each of the two strategies.
ANS:
Persuasive labelling focuses on a promotional theme or logo, with information for the consumer
of secondary importance. The promotional theme may contain the words new, improved, or super.
Informational labelling is designed to help consumers make proper product selections and lower
postpurchase cognitive dissonance. These labels may explain construction standards, colour
selection, cleaning instructions, or other use information.

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16. You are the Canadian brand manager of the Fluffit family of products. The products include a
wide variety of synthetic and natural stuffing materials for furniture cushions, sleeping bags,
quilts, and winter coats. The brand is a favourite among home repair enthusiasts and hobbyists of
various kinds. Your firm would like to enter several foreign markets. Name and describe the three
major alternative brand name choices for this global strategy. Discuss the viability of each
alternative for Fluffit.
ANS:
One brand name everywhere. This strategy is useful when the company markets mainly one
product and the brand name does not have negative connotations in any local market. Advantages
of a one-brand strategy are greater identification of the product from market to market and ease of
coordinating promotion from market to market. This strategy may be difficult for Fluffit because
the variety of products are sold. Additionally, it is not likely that “fluff” carries the same meaning
in all languages or communicates the benefits of the product.
Adaptations and modifications. If the Fluffit name is not pronounceable in the local language, the
brand name is owned by someone else, or the brand has a negative connotation in the local
language, minor modifications can make the brand name more suitable. This could be a viable
alternative for Fluffit.
Different brand names in different markets. Local brand names are often used when translation or
pronunciation problems occur, when the marketer wants the brand to appear to be a local brand, or
when regulations require localization. This could also be a viable alternative for Fluffit.
17. A warranty is a protection and information device intended to confirm the quality of performance
of a good or service. What is the difference between an express warranty and an implied warranty?
ANS:
An express warranty is made in writing and may range from a simple statement to an extensive
document. An implied warranty is an unwritten guarantee that the good or service is fit for the
purpose for which it was sold.
18. Distinguish between an implied warranty and an express warranty. Give one example of each.
ANS:
An express warranty is a written guarantee. Examples include Will not shrink, No ironing
required, Precooked, etc. An implied warranty is an unwritten guarantee that the good or service is
fit for the purpose for which it was sold. Examples are numerous—all should include the concept
that the product does what it was intended to do.

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Chapter 8 practice exam (marketing)

Principles of Marketing (University of Windsor)

StuDocu is not sponsored or endorsed by any college or university

Chapter 8—Product Concepts

PTS: 1 DIF: Application REF: p. 242 OBJ: 2

3. What is the starting point in creating a marketing mix?

PTS: 1 DIF: Comprehension REF: p. 246

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7. Which of the following is a tangible feature of a product?

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10. What is the consumer product classification system based on?

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13. Which of the following is the best example of a convenience product?

PTS: 1 DIF: Application REF: p. 246 OBJ: 2

14. What does the convenience product marketing strategy include?

PTS: 1 DIF: Comprehension REF: p. 246

PTS: 1 DIF: Comprehension REF: p. 247

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18. What are the two types of shopping products?

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31. Typically, what are unsought products?

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38. How is product mix width defined?

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43. Which of the following is an example of a product modification?

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