Ch.

7 Product, Services, and Brands: Building Customer Value

115. _____ means a product's ability to satisfy a customer's needs or requirements.
A. Quality
B. Service
C. Trademark
D. Brand
E. Assortment
A: Product quality refers to a product's ability to satisfy a customer's needs or requirements.

119. "Product" means:

A. A physical good or service that offers potential customer satisfaction.
B. A physical good with all its related features.
C. The entire physical output of a firm.
D. All of the elements in a firm's marketing mix.
E. Something that has been produced, packaged, branded, and given a warranty.
A: A product may be a physical good, a service, or a blend of both. The idea of "Product" as potential customer
satisfaction or benefits is very important.

127. Services
A. are tangible.
B. often have to be produced in the presence of the customer.
C. are easy to store.
D. are usually produced before they are sold.
E. all of these choices are correct.
B: Services are not physical products, they are intangible. They cannot be stored, but only experienced, used, or
consumed. They often have to be produced in the presence of the consumer.

133. A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry detergent, shampoo,
disposable diapers, and facial tissues. These are the firm's

A. product classes.
B. product assortment.
C. individual products.
D. marketing mix.
E. product line.
Feedback: A product assortment is the set of all product lines and individual products that a firm sells.

145. Words, symbols, or logos that are legally registered for use by a single company are called ______.
A. trademarks
B. brand names
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C. brand marks
D. service marks
E. watermarks
A: A trademark includes only those words, symbols, or marks that are legally registered for use by a single
company.

146. A trademark
A. has no legal meaning.
B. includes those words, symbols, or marks that are legally registered for use by a single company.
C. is any word, letter, or a group of words or letters.
D. is the value of a brand to its current owner or to a firm that wants to buy it.
E. is protected by the Magnuson-Moss Act.
B: A trademark includes only those words, symbols, or marks that are legally registered for use by a single
company.

152. Why is brand rejection a big concern for service-oriented businesses?

A. Customers don’t buy a brand unless its image is changed.
B. Target customers usually choose one brand over others.
C. It is hard to control the quality of service.
D. Copy-cats in the market that make the product obsolete.
E. Customers want a personal touch.
C: Brand rejection means that potential customers won’t buy a brand unless its image is changed—or if the
customers have no other choice. Brand rejection is a big concern for service-oriented businesses because it’s hard
to control the quality of service.

154. Branding:
A. is especially helpful with a low quality product.
B. is handled by manufacturers, but not intermediaries.
C. helps consumers, but it is bad for the firm because it increases expenses.
D. is more likely to be successful if demand for the general product class is strong enough to allow a profitable
price.
E. None of these alternatives is correct.
D: If demand is so strong that the market price can be high enough to make the branding effort profitable, it can
prove to be a condition favorable to successful branding.

157. Which of the following would NOT be favorable to successful branding?

A. The product offers superior customer value
B. Product quality fluctuates due to variations in raw materials
C. Dependable and widespread availability
D. Economies of scale in production
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E. Favorable shelf locations are available
B: Being able to maintain product quality and price is a condition favorable to successful branding.

164. ______ means potential customers won't buy a brand-unless its current image is changed.
A. Brand preference
B. Brand rejection
C. Brand insistence
D. Brand recognition
E. Brand nonrecognition
B: Brand rejection means that potential customers won't buy a brand unless its image is changed. Rejection may
suggest a change in the product or perhaps only a shift to target customers who have a better image of the brand.

171. ______________ means potential customers remember a particular brand.

A. Brand preference
B. Brand nonrecognition
C. Brand insistence
D. Brand recognition
E. Brand rejection
D: Brand recognition means the ability of customers to remember a brand.

173. Target customers choosing a particular brand over other brands, because of habit or favorable past experience
have a brand familiarity level of ______.
A. brand preference
B. brand knowledge
C. brand insistence
D. brand recognition
E. brand positioning
A: Brand preference means that target customers usually choose the brand over other brands; maybe because of
habit or favorable past experience.

176. Carlotta Issa is shopping for a new pair of jeans. She has had good experiences with Jordache jeans in the past
and is looking for Jordache now. She probably will buy Jordache if she finds some that are at least as good-looking
as competitive jeans. This is a good example of:
A. brand rejection.
B. brand recognition.
C. brand remembrance.
D. brand preference.
E. brand insistence.
D: Brand preference means that target customers usually choose the brand over other brands, perhaps because out
of habit or favorable past experience.
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177. ______ means potential customers insist on a firm's branded product and are willing to search for it.
A. Brand insistence
B. Brand preference
C. Brand nonrecognition
D. Brand rejection
E. Brand recognition
A: Brand insistence means customers insist on a firm's branded product and are willing to search for it.

179. Darrell Everwine read a review about a new computer program that appealed to him very much. He decided
to try to find the program. However, the new program was in short supply-although other brands with similar
features were available. Darrell had to try seven shops before he finally found the program in stock. For Darrell,
this program achieved brand ______.
A. preference
B. insistence
C. rejection
D. nonrecognition
E. recognition
B: Brand insistence means customers insist on a firm's branded product and are willing to search for it.

183. The value of a brand to its current owner or to a firm that wants to buy it is called ______.
A. brand preference
B. brand equity
C. brand identity
D. brand positioning
E. brand reference
B: The value of a brand to its current owner or to a firm that wants to buy it is called brand equity, in other words,
the value of a brand's overall strength in the market.

193. When a company decides to use the same brand name for several products, it is a(n)
A. individual brand.
B. family brand.
C. dealer brand.
D. private brand.
E. select brand.
B: When several products have the same brand name, the brand is known as a family brand.

204. Manufacturer brands are also called ___________.

A. dealer brands
B. global brands
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C. national brands
D. private brands
E. store brands
C: Manufacturer brands are sometimes called national brands because the brand is promoted all across the country
or in large regions.

205. A "dealer brand" is sometimes called a __________ brand.

A. national
B. local
C. manufacturer
D. private
E. regional
D: Dealer brands are also called private brands (or private label) and are created by intermediaries.

216. Packaging
A. can serve as a useful enhancement tool.
B. can increase costs to the consumer.
C. can serve as a useful promotional tool.
D. is concerned with protecting the product in shipping and on the shelf.
E. All of these alternatives are correct.
E: Packaging involves promoting, protecting, and enhancing the product. It can make a product more convenient to
use or store. It can prevent spoiling or damage. Good packaging makes products easier to identify and promotes the
brand at the point of purchase and even in use.

217. Which of the following qualities of packaging would not be likely to turn a casual customer into a loyal
buyer?
A. Makes the product easier or safer to use
B. Makes a product convenient to store
C. Prevents spoiling or damage
D. Makes products easier to identify
E. Promotes the brand at the point of purchase
E: Packaging can make the key difference in a new marketing strategy when it meets customers' needs better. For
example, a package that makes the product safer to use, more convenient to store, more resistant to spoilage, or
easier to identify delivers important value to customers. The fact that a package may promote the brand at the point
of purchase, while good promotion, would not likely enhance the customer experience in a way that fosters brand
preference or brand insistence.

232. Warranties inspire customer confidence and trust for all the following reasons except:
A. they make legally enforceable promises about product performance.
B. they show that marketers stand behind their products.
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C. some reduce the responsibility a producer would have under common law.
D. they offer refunds or replacement for defective products.
E. they are clearly written and included with products for easy access.
C: U.S. common law says that producers must stand behind their products—even if they don't offer a specific
warranty. A written warranty provided by the seller may promise more than the common law provides. However, it
may actually reduce the responsibility a producer would have under common law.

241. Product class is based on the type of ______.

A. customer
B. manufacturing process
C. marketing mix
D. marketing strategy
E. shopping strategy
A: All products fit into one of two broad groups, consumer products or business products, based on the type of
customer that will use them.

243. Which one of the following is NOT a consumer product class?

A. Specialty
B. Unsought
C. Derived
D. Shopping
E. Impulse
C: Consumer product classes are divided into four groups: (1) convenience, (2) shopping, (3) specialty, and (4)
unsought.

248. Convenience products are products

A. a consumer needs but is not willing to spend much time or effort shopping for.
B. which consumers are aware of but not interested in.
C. meant for use in producing other products.
D. toward which consumer attitudes may be negative.
E. that consumers want because they are easy to use or consume.
A: Convenience products are products a consumer needs but isn't willing to spend much time or effort shopping
for. These products are bought often, require little service, don't cost much, and may even be bought by habit.

251. Which of the following would be a convenience product for most consumers?
A. Gold jewelry
B. Butter
C. Stereo TVs
D. Dress shoes
E. Bicycles
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B: Convenience products are products a consumer needs but isn't willing to spend much time or effort shopping for.
These products are bought often, require little service, don't cost much, and may even be bought by habit. Butter is
an example.

253. If a consumer product is used regularly and usually bought frequently and routinely with little thought
(although branding may be important), this product is ______.
A. a routine product
B. a specialty product
C. a homogeneous shopping product
D. a staple product
E. a casual product
D: Staples are products that are bought often, routinely, and without much thought like breakfast cereal, canned
soup, and most other packaged foods used almost every day in almost every household.

256. What is an accurate definition of impulse products?

A. Products that potential customers do not want yet or know they can buy
B. Bought quickly-as unplanned purchases-because of a strongly felt need
C. Any products that consumers search for because of a strongly felt craving
D. Any convenience products that are bought often and routinely
E. Any product bought for an immediate need or requirement.
B: Impulse products are products that are bought quickly as unplanned purchases because of a strongly felt need.
True impulse products are items that the customer hadn't planned to buy, and decides to buy on sight.

265. When selling ______ products, a marketing manager should recognize that consumers have low price
sensitivity and the product should have widespread distribution near the probable point of need.
A. homogeneous
B. specialty
C. emergency
D. impulse
E. regularly unsought
C: While purchasing emergency products, a customer does not have the time to shop and is not very sensitive to
price. A marketing manager should identify these factors and ensure that the product has widespread distribution
near the probable point of need.

271. When some customers see all competitors' offerings as basically the same and are willing to spend much time
and effort to buy the item at the lowest price, the item is:
A. an analysis product.
B. a specialty product.
C. a staple product.
D. a heterogeneous shopping product.
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E. a homogeneous shopping product.
E: Homogeneous shopping products are shopping products the customer sees as basically the same and wants at the
lowest price. For example televisions, washing machines, etc.

276. When final consumers are willing to spend much time and effort comparing quality and style-with brand and
price being less important-the product is ______.
A. an inspection product
B. a heterogeneous shopping product
C. a homogeneous shopping product
D. a specialty product
E. an emergency product
B: Heterogeneous shopping products are shopping products the customer sees as different and wants to inspect for
quality and suitability. Quality and style matter more than price.

285. A specialty product

A. may not require much searching to find it, but the customer would be willing to search if necessary.
B. may carry a well-recognized brand.
C. may be frequently purchased.
D. need not be an expensive item.
E. All of these alternatives are correct.
E: Specialty products are consumer products that the customer really wants and makes a special effort to find
irrespective of cost or brand. The frequency of purchase depends on how bad a consumer wants a given product.

294. Consumer products which consumers do not yet want or know they can buy-and probably would not buy
without special promotion even if they saw them-are called ______.
A. new brands of well-accepted staples
B. unsought products
C. heterogeneous shopping products
D. emergency products
E. homogeneous shopping products
B: Unsought products are products that potential customers don't yet want or know they can buy so they don't
search for them at all.

311. When the economy is sluggish, final consumers have less money to buy their favorite computer gadgets, and
this causes touch-screen manufacturers to sell less product to computer makers like Apple. This illustrates the
concept of ______.
A. "Product" as potential customer satisfaction
B. derived demand
C. brand non-recognition
D. brand rejection
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E. unsought products
B: The touch screen component maker is unable to sell products due to derived demand - the concept that demand
for business products derives from the demand for final consumer products. Since customers are not buying as
many mobile devices in a sluggish economy, mobile device brands aren't willing to buy as many components from
component parts suppliers.