Chapter 7 Product, Services, and Branding Strategy

GENERAL CONTENT !u"tip"e#Choice $uestions 1. We define a _____ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. private brand service variability service product service encounter (Answer d! p. 1""! #asy$ %. _____ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. &ine e'tensions (ervices )rands *onsumer products (upplements (Answer b! p. 1""! #asy$ +. ,roduct is a key element in _____. At one e'treme, it may consist of pure tangible goods or at the other e'treme, pure services. market offering brand equity brand e'tension co-branding the value chain (Answer a! p. 1""! #asy$ .. /any companies are moving to a new level in creating value for their customers. 0hey are developing and delivering total customer e'periences. Whereas products are tangible and services are intangible, e'periences are _____. product quality memorable unsought product internal marketing service encounters (Answer b! p. 1""! /oderate$

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1. ,roduct planners need to think about products and services on three levels. #ach level adds more customer value. 0he most basic level is the _____, which addresses the question, 2What is the buyer really buying34 actual product augmented product core benefit co-branding e'change (Answer c! p. %55! *hallenging$ 6. ,roduct planners need to think about products and services on three levels. 0he third level is that the product planners must build on a(n$ _____ around the core benefit and actual product by offering additional consumer services and benefits. augmented product brand equity brand e'tension industrial product image (Answer a! p. %55! *hallenging$ 7. ,roduct planners must design the actual product and find ways to _____ it in order to create the bundle of benefits that will provide the most satisfying customer e'perience. core benefit package brand augment present (Answer d! p. %55! *hallenging$ 8. ,roducts and services fall into two broad classes based on the types of consumers that use them. Which is one of these broad classes3 9ndustrial products. )rand equity. *o-branding. )rand e'tension. *ohesive. (Answer a! p. %55! /oderate$

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". _____ are products and services bought by final consumers for personal consumption. 0hese include convenience products, shopping products, specialty products, and unsought products. (ervices *onsumer products &ine e'tensions 9ndustrial products (traight e'tensions (Answer b! pp. %55:%51! #asy$ 15. _____ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. *onsumers spend much time and effort in gathering information and making comparisons. (hopping products )rands (ervices 9ndustrial products &ine e'tensions (Answer a! p. %51! /oderate$ 11. _____ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. (hopping products ;nsought products (pecialty products 9ndustrial products &ine e'tensions (Answer c! p. %51! /oderate$ 1%. _____ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. 0hese products require a lot of advertising, personal selling, and other marketing efforts. (pecialty products &ine e'tensions ;nsought products (hopping products (taples (Answer c! p. %5%! #asy$

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1+. _____ are those products purchased for further processing or for use in conducting a business. ;nsought products (pecialty products (hopping products 9ndustrial products Accessories (Answer d! p. %5%! #asy$ 1.. 0he three groups of industrial products and services include all of the following e'cept _____. materials and parts capital items maintenance and operations supplies and services ) and < (Answer c! p. %5%! /oderate$ 11. /ost manufactured materials and parts are sold directly to _____. ,rice and service are the ma=or marketing factors! branding and advertising tend to be less important. consumers industrial users brand e'tensions co-branders wholesalers (Answer b! p. %5%! *hallenging$ 16. _____ are industrial products that aid in the buyer>s production or operations, including installations and accessory equipment. /aterials ,arts *apital items (pecialty items (upplies (Answer c! p. %5%! /oderate$ 17. _____ consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organi?ation. ,erson marketing @rgani?ation marketing 9nternal marketing (ervice variability 9ntelligence marketing (Answer b! p. %5%! *hallenging$

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18. _____ consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people. *orporate image advertising @rgani?ation marketing ,erson marketing (ocial marketing 9ntermarket marketing (Answer c! p. %5%! /oderate$ 1". _____ involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, and regions. 0e'as advertises 29t>s like a whole other country.4 9dea marketing ,lace marketing (ocial marketing 9nteractive marketing Aegional marketing (Answer b! p. %5+! #asy$ %5. _____ is defined as the use of commercial marketing concepts and tools in programs designed to influence individuals> behavior to improve their well-being and that of society. ;nsought product 9nternal marketing (ocial marketing ,roduct line 9nteractive marketing (Answer c! p. %5+! #asy$ %1. /arketing efforts, which include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are called _____. specialty products social marketing shopping products consumer products responsibility marketing (Answer b! p. %5.! /oderate$

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%%. 0he Ad *ouncil of America has developed do?ens of _____ advertising campaigns, including classics such as 2(mokey the )ear,4 2Beep America )eautiful,4 and 2@nly Cou *an ,revent Dorest Dires.4 social brand equity service product line e'tensive (Answer a! p. %5.! /oderate$ %+. <eveloping a product or service involves defining the benefits that it will offer. 0hese benefits are communicated and delivered by _____ such as quality, features, and style and design. private brands product attributes consumer products product mi'es none of the above (Answer b! p. %56! *hallenging$ %.. _____ is one of the marketer>s ma=or positioning tools. 9t has a direct impact on product or service performance! thus, it is closely linked to customer value and satisfaction. ,ackaging ,roduct quality (ocial marketing (pecialty marketing ,osition marketing (Answer b! p. %56! #asy$ %1. _____ is an approach in which all the company>s people are involved in constantly improving the products, services, and business processes. ,roduct quality )rand equity 0otal quality management (pecialty product ,ositioning (Answer c! p. %56! #asy$

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%6. )eyond quality level, high quality also can mean high levels of quality consistency. Eere, product quality means _____Ffreedom from defects and consistency in delivering a targeted level of performance. private brand product quality total quality management conformance quality adherence quality (Answer d! p. %56! *hallenging$ %7. A product can be offered with varying _____. A stripped-down model, one without any e'tras, is the starting point. co-branding features product quality service variability e'tensions (Answer b! p. %56! #asy$ %8. 0he company periodically surveys buyers who have used a product and asks questions such as, 2Which specific features of the product do you like the most34 0he company can then assess each feature>s _____ to customers versus its _____ to the company. cost! line e'tension cost! service value! cost service! line e'tension equity! cost (Answer c! p. %57! *hallenging$ %". A sensational _____ may grab attention and produce pleasing aesthetics, but it does not necessarily make the product perform better. design style variable service-profit chain package (Answer b! p. %57! /oderate$

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+5. _____ is more than skin deepFit goes to the very heart of the product. 9t contributes to a product>s usefulness as well as to its looks. (tyle <esign ,ackage )rand Dunctionality (Answer b! p. %57! #asy$ +1. Good style and design can do many things. What is one thing it cannot do3 Attract attention. 9mprove product performance. *ut production costs. *ause unsought product reputation. ) and * (Answer d! p. %57! #asy$ +%. A(n$ _____ is a name, term, sign, symbol, design, or a combination of these, that identifies that maker or seller of a product or service. service brand co-branding internal marketing e'ternal marketing (Answer b! p. %58! #asy$ ++. _____ involves designing and producing the container or wrapper for a product. ,ackaging ,roduct line (ervice )randing &abeling (Answer a! p. %5"! #asy$ +.. &ike Hew ,roducts wants to improve its packaging after reading customer responses to its customer opinion poll. Which is not a function of packaging3 9t contains and protects the product. 9t contains the brand mark. 9t protects children. 9t determines product quality. 9t may contain the brand symbol. (Answer d! p. %5"! /oderate$

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+1. At the very least, the _____ identifies the product or brand. 9t might also describe several things about the product. line e'tension social marketing label specialty product A or ) (Answer c! p. %15! #asy$ +6. &abels may mislead customers, fail to describe important ingredients, or fail to include needed safety warnings. As a result, several federal and state laws regulate labeling. 0he most prominent is the _____. *o-branding Act of 1"7% &abeling Act of 1"75 ,ackaging Act of 1"68 Dair ,ackaging and &abeling Act of 1"66 Dair &abor (tandards Act of 1"+8 (Answer d! p. %15! #asy$ +7. 0he _____ requires sellers to provide detailed nutritional information on food products. Dair ,ackaging and &abeling Act of 1"66 Hutritional &abeling and #ducational Act of 1""5 &abeling Act of 1"75 ,ackaging Act of 1"75 Horris-&aGuardia Act of 1"+% (Answer b! p. %15! /oderate$ +8. *ustomer service is another element of product strategy. 0he first step is to survey customers periodically to assess the value of current services and to obtain ideas for new ones. Drom this careful monitoring, *adillac has learned that buyers are very upset by repairs that are not done correctly the first time. What is the name of these types of services3 )rand equity services. ,roduct support services. (ocial marketing services. ;nsought product services. *ustomer service. (Answer b! p. %15! *hallenging$

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+". A _____ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. product line line e'tension private brand convenience product product bandwidth (Answer a! p. %11! /oderate$ .5. )erkowit? ,iano *ompany can lengthen its product line in one of two common ways. Which is one of these ways that might prove productive3 9nternal marketing. &ine filling. ,roduct mi'. (ocial marketing. Hone of the above. (Answer b! p. %1%! #asy$ .1. An alternative to product line stretching is _____Fadding more items within the present range of the line. 0here are several reasons for doing this! some are to reach for e'tra points, satisfy dealers, use e'cess capacity, and to plug holes to keep out competitors. product mi' interactive marketing product line filling co-branding service marketing (Answer c! p. %1+! #asy$ .%. An organi?ation with several product lines has a _____. 0his consists of all the product lines and items that a particular seller offers for sale. product mi' brand line consumer mi' packaging mi' line e'tension (Answer a! p. %1+! /oderate$

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.+. ,roduct mi' _____ refers to the number of different product lines the company carries. ,rocter I Gamble markets %15 brands organi?ed into many product lines. length height width perimeter depth (Answer c! p. %1+! /oderate$ ... ,roduct line _____ refers to the number of versions offered of each product in the line. *rest toothpaste comes in 1+ varieties, ranging from *rest /ulticare to *rest )aking (oda formulations. length depth height width perimeter (Answer b! p. %1+! *hallenging$ .1. 0he _____ of the product mi' refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. depth length width consistency perimeter (Answer d! p. %1+! /oderate$ .6. A company can increase its business in four ways. Which is not one of these ways3 9t can add new product lines, thus widening its product mi'. 9t can lengthen its e'isting product lines. 9t can add more versions of each product and thus deepen its product mi'. 0he company can discontinue some of its lines. Hone of the above. (Answer d! p. %1+! #asy$ .7. (ome analysts see _____ as the ma=or enduring asset of a company, outlasting the company>s specific products and facilities. brands convenience products specialty products unsought products staples (Answer a! p. %1.! #asy$

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.8. 0he fundamental asset underlying brand equity is _____Fthe value of the customer relationships that the brand creates. A powerful brand is important, but what it really represents is a set of loyal consumers. customer mi' customer equity line equity service variability the service encounter (Answer b! p. %11! *hallenging$ .". /arketers need to position their brands clearly in target customers> minds. 0hey can position brands at any of three levels. At the lowest level, they can position the brand on _____. interactive marketing internal marketing product attributes strong beliefs and values added service (Answer c! p. %11! /oderate$ 15. /arketers need to position their brands clearly in target customers> minds. 0he strongest brands go beyond attributes or benefit positioning. 0hey are positioned on _____. desirable benefit good packaging service inseparability strong beliefs and values customer image (Answer d! p. %11! #asy$ 11. <esirable qualities for a brand name include all of the following e'cept _____. 9t should suggest something about the product>s benefits and qualities. 9t should be easy to pronounce, recogni?e, and remember. 0he brand should almost always be a long word to get attention. 0he name should translate easily into foreign languages. ) and < (Answer c! p. %17! *hallenging$

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1%. /anufacturers> brands have long dominated the retail scene. 9n recent times, however, an increasing number of retailers and wholesalers have created their own _____ (or store brands$. slotting fees private brands specialty products service variability none of the above (Answer b! p. %18! #asy$ 1+. 9n the so-called battle of the brands between manufacturers> and private brands, _____ have many advantages. 0hey control what products they stock, where they go on the shelf, and which ones they will feature in local circulars. unsought products convenience products specialty products retailers shopping products (Answer d! p. %18! /oderate$ 1.. /ost retailers also charge manufacturers _____Fpayments demanded by retailers before they will accept new products and find a place for them on the shelves. slotting fees private fees line e'tension fees product line fees distribution charges (Answer a! p. %1"! #asy$ 11. /ost manufacturers take years and spend millions to create their own brand names. Eowever, some companies _____ names or symbols previously created by other manufacturers, names of well-known celebrities, andJor characters from popular movies and books. Dor a fee, any of these can provide an instant and proven brand name. service license market package steal (Answer b! p. %1"! /oderate$

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16. _____ occurs when two established brand names of different companies are used on the same product. )rand e'tension )rand equity *o-branding 9nternal marketing *annibali?ation (Answer c! p. %%5! /oderate$ 17. 9n most _____ situations, one company licenses another company>s well-known brand to use in combination with its own. brand e'tension brand equity co-branding internal marketing line e'tension (Answer c! p. %%5! #asy$ 18. As one Habisco manager puts it, 2Giving away your brand is a lot liking giving away your _____Fyou want to make sure everything is perfect.4 package product line child product quality company image (Answer c! p. %%5! #asy$ 1". A company has four choices when it comes to developing brands. Which is not one of those choices3 &ine e'tension. )rand e'tension. /ultibrands. Width and depth e'tension. ) and * (Answer d! p. %%5! *hallenging$ 65. _____ occur(s$ when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package si?es. &ine e'tensions ,roduct mi' 9nteractive marketing (ervice variability (ervice intangibility (Answer a! p. %%1! /oderate$

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61. @ne risk of _____ is that sales may come at the e'pense of other items in the line. 9t works best when it takes sales away from competing brands, not when it 2cannibali?es4 the company>s other items. brand e'tension line e'tension packaging social marketing 9nternet marketing (Answer b! p. %%1! /oderate$ 6%. A _____ involves the use of a successful brand name to launch new or modified products in a new category. brand equity product line brand e'tension private brand brand symbol (Answer c! p. %%1! /oderate$ 6+. _____ offer(s$ a way to establish different features and appeal to different buying motives. 9t also allows a company to lock up more reseller shelf space. @r the company may want to protect its ma=or brand by setting up flanker brands. Hew brands 9nteractive marketing ,roduct quality /ultibrands <ifferentiation (Answer d! p. %%%! *hallenging$ 6.. Aetailers have become concerned that there are already too many brands, with too few differences between them. 0hus, ,rocter I Gamble and other large consumerproduct marketers are now pursuing _____ strategiesFweeding out weaker brands and focusing their marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories. megabrand service inseparability social marketing unsought product undifferentiated (Answer a! p. %%%! /oderate$

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61. *ompanies must carefully manage their brands. Dirst, the brand>s positioning must be continuously communicated to consumers. /a=or brand marketers often spend huge amounts on advertising to create brand _____ and to build preference and loyalty. e'tension awareness packaging internal marketing preference (Answer b! p. %%%! #asy$ 66. Advertising campaigns can help to create name recognition, brand knowledge, and maybe even some brand preference. Eowever, the fact is that brands are not maintained by advertising but by the _____. marketing e'perience line e'tensions brand e'perience product mi' word-of-mouth elements (Answer c! p. %%%! #asy$ 67. 0he brand>s positioning will not take hold fully unless everyone in the company lives the brand. 0herefore the company needs to train its people to be _____. customer centered specialty centered convenience centered line-e'tension centered loyal (Answer a! p. %%%! /oderate$ 68. 0he brand>s positioning will not take hold fully unless everyone in the company lives the brand. 0his suggests that managing a company>s brand assets can no longer be left only to _____. product line product mi' brand e'tension brand managers marketing managers (Answer d! p. %%+! #asy$

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6". *anada <ry and *olgate-,almolive have appointed _____ managers to maintain and protect their brand>s images, associations, and quality, and to prevent short-term actions by overeager brand managers from hurting the brand. product line service brand equity brand e'tension marketing (Answer c! p. %%+! /oderate$ 75. )uilding a(n$ _____ and re-educating customers can be a huge undertaking for a company. 9t cost tens of millions of dollars =ust for a special four-week advertising campaign to announce the new name, followed by considerable ongoing advertising e'penses to the Keri?on *ompany. product mi' service intangibility new image internal market level of customer loyalty (Answer c! p. %%%! #asy$ 71. A company must consider four special service characteristics when designing marketing programs. Which is not one of these characteristics3 9ntangibility. 9nseparability. ,erishability. 9nteractive marketing. ) and * (Answer d! p. %%+! *hallenging$ 7%. _____ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. (ervice inseparability (ervice variability (ervice intangibility (ervice perishability (ervice heterogeneity (Answer c! p. %%+! /oderate$

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7+. _____ means that services cannot be separated from their providers, whether the providers are people or machines. (ervice intangibility (ervice inseparability (ervice variability (ervice perishability (ervice heterogeneity (Answer b! p. %%.! /oderate$ 7.. 9n a product business, products are fairly standardi?ed and can sit on shelves waiting for customers. )ut in a service business, front-line service employees and the support processes backing these employees participate in _____. interaction co-branding industrial marketing internal marketing e'ternal marketing (Answer a! p. %%.! *hallenging$ 71. _____ means that the service firm must effectively train and motivate its customercontact employees and supporting service people to work as a team to provide customer satisfaction. (ervice inseparability (ervice intangibility (ervice variability 9nternal marketing #'ternal marketing (Answer d! p. %%6! /oderate$ True%&a"se 76. We define a service as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. (Dalse! p. 1""! #asy$ 77. *o-branding is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. #'amples are banking, hotel, airline, retail, ta' preparation, and home repair. (Dalse! p. %%5! /oderate$ 78. (ony must offer more than =ust a camcorder. 9t must provide consumers with a complete solution to their picture-taking problems. 0his is called an augmented product. (0rue! p. %55! *hallenging$ %5"

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7". ;nsought products are products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. (Dalse! p. %5%! #asy$ 85. (hopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. (0rue! p. %51! /oderate$ 81. ,rograms that include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are e'amples of the social idea known as social marketing. (0rue! p. %5.! #asy$ 8%. (tyle is a larger concept than design. <esign describes the appearance of a product. (Dalse! p. %57! /oderate$ 8+. 0he brand of a product can determine its consumer value. (0rue! p. %58! /oderate$ 8.. ,ackaging does not include the material necessary to ship a product. (Dalse! p. %5"! #asy$ 81. ,roduct support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics. (Dalse! p. %11! /oderate$ 86. Luaker produces a variety of cereals. 0his variety is called its product line. (0rue! p. %11! /oderate$ 87. A company>s product mi' has four important dimensions width, length, depth, and consistency. (0rue! p. %1+! #asy$ 88. <ove marketers can go beyond the brand>s cleansing cream attributes and talk about the resulting benefit of softer skin. 0his is known as product attributes in brand positioning. (Dalse! p. %11! *hallenging$ 8". @ne important quality for a brand name is that it should translate easily into foreign languages. (0rue! p. %17! #asy$ "5. An increasing number of retailers and wholesalers have created their own brandsF such as Wal-/art offering (am>s *hoice beverages and food products. 0his is called co-branding. (Dalse! p. %18! *hallenging$

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"1. When a company introduces a new brand name in the same product category, it is called line e'tension. (Dalse! p. %%1! *hallenging$ "%. *ustomers come to know a brand through a wide range of contacts and touch points. 0hese include word of mouth, personal interactions with company people, telephone interactions, and company Web pages. /any brands are not maintained by advertising but by brand e'perience. (0rue! p. %%%! #asy$ "+. An e'ample of service variability is that within a given /arriott hotel, one registration-desk employee may be cheerful and efficient, whereas another may be unpleasant and slow. (0rue! p. %%.! *hallenging$ ".. (ervice inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided. (Dalse! p. %%.! *hallenging$ "1. 9n a product business, products are fairly standardi?ed and can sit on shelves waiting for customers. 9n a service business, the customer and front-line service employee interact to create the service. (0rue! p. %%1! #asy$ "6. 0he service-profit chain means the set of all product lines and items that a particular seller offers for sale. (Dalse! p. %%1! *hallenging$ "7. An aspect of managing service differentiation is in the company>s service delivery. (0rue! p. %%8! /oderate$ "8. *ustomer retention is perhaps the best measure of qualityFa service firm>s ability to hang on to its customers depends on how consistently it delivers value to them. (0rue! p. %%"! #asy$ "". /anaging service productivity can take place when a company increases the quality of its service by giving up some of its output. (0rue! p. %%"! /oderate$ 155. 0he government cannot prevent companies from adding products through acquisitions if the effect threatens to lessen competition. (Dalse! p. %+5! /oderate$ 9nternal marketers face special challenges. 0hey must figure out what products to introduce to other countries. (Dalse! p. %%6! /oderate$ %11

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9n international product and service marketing, it is important to know what different colors mean to different countries. (0rue! p. %+1! #asy$ 9n international product and service marketing, many banks were afraid to go global and held off for quite a while. (Dalse! p. %+1! /oderate$ Aetailers such as Wal-/art, Bmart, 0oys 2A4 ;s, @ffice <epot, and <isney are among the first businesses to go global. (Dalse! p. %+1! *hallenging$ (ervice companies wanting to operate in other countries are usually welcomed with open arms. /anufacturers usually face restrictions when attempting to sell their products in other countries. (Dalse! p. %+1! *hallenging$ Essay

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,roducts and services fall into two broad classes based on the types of consumers that use them. Hame these two broad classes and describe how they are different from each other.

*onsumer productsFthose bought by final consumersFare usually classified according to consumer shopping habits. 9ndustrial productsFpurchased for further processing or for use in conducting a businessFinclude materials and parts. (p. %51! /oderate$ 157. Hame and describe three decisions that companies make regarding their individual products and services, product lines, and product mi'es.

,roduct attribute decisions involve product quality, features, and style and design. )randing decisions include selecting a brand name and developing a brand strategy. ,ackaging provides many key benefits, such as protection, economy, convenience, and promotion. 0here are additional answers to this question also. (p. %51! #asy$ 158. A manufacturer has four brand sponsorship options. <escribe what they are.

9t can launch a manufacturer>s brand. 9t can sell to resellers who use a private brand. 9t can market licensed brands. 9t can =oin forces with another company to co-brand a product. (p. %18! *hallenging$

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A company has four choices when it comes to developing brands. <escribe what they

0he company can introduce line e'tensions! it can introduce brand e'tension! it can introduce multibrands! and it can begin new brands. (p. %%5! /oderate$ 115. (ervices are characteri?ed by four key characteristics. Hame and describe these four characteristics.

9ntangible they cannot be seen, tasted, felt, heard, or smelled before they are bought. 9nseparable they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Kariable their quality may vary greatly, depending on who provides them and when, where, and how they are provided. ,erishable they cannot be stored for later sale or use. (p. %%+! *hallenging$ 111. Good service companies focus attention on both customers and employees. <escribe what the service-profit chain and internal marketing are, and how they differ from each other.

0he service-profit chain links service firm profits with employee and customer satisfaction. 9nternal marketing by a service firm refers to training and effectively motivating its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. 0he first deals with employees and customers. 0he second deals with training employees. (p. %%1! *hallenging$ 11%. <escribe two special challenges that international marketers must consider to be successful in marketing to other countries.

Dirst, they must figure out what products and services to introduce and in which countries. 0hen, they must decide how much to standardi?e or adapt their products and services for world markets. (p. %+5! *hallenging$ 11+. <escribe the role of packaging.

,ackaging involves designing and producing the container or wrapper for a product. ,ackaging contains and protects the product, but it also is used to attract customer attention, to describe the product, and to make the sale. (p. %5"! #asy$

%1+

11..

#'plain the history of legal concerns about packaging and labels.

0he Dederal 0rade *ommission Act of 1"1. held that false, misleading, or deceptive labels or packages constitute unfair competition. &abels can mislead consumers, fail to describe important ingredients, or fail to include needed safety warnings. As a result, several federal and state laws regulate labeling. 0he Dair ,ackaging and &abeling Act of 1"66, for e'ample, set mandatory labeling requirements, encouraged volunteer industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries. 0he Hutritional &abeling and #ducation Act of 1""5 requires sellers to provide detailed nutritional information on food products! the Dood and <rug Administration regulates the use of health-related terms such as low-fat, light, and high-fiber. (p. %15! *hallenging$ 111. #'plain product mi' width, length, consistency, and depth.

,roduct mi' width refers to the number of different product lines the company carries! whereas, product length refers to the total number of products carried in a company>s product lines. *onsistency refers to how closely related the various product lines are in end use. ,roduct depth refers to the number of versions offered of each product in the line. (p. %1+! #asy$ APPL'CAT'ON CONTENT !u"tip"e#Choice $uestions 116. a. b. c. d. e. @ne of the three groups of industrial products includes materials and parts. Which is not one of the material parts3 Darm products such as wheat. Hatural products such as iron ore. Honraw materials. ,etroleum. ) and < (Answer c! p. %5%! #asy$ Which of the following capital items is not considered an accessory part of equipment3 0he finance department needs to know so they can be classified correctly. )uildings. Eand tools. &ift trucks. <esks. *hairs. (Answer a! p. %5%! /oderate$

117. a. b. c. d. e.

%1.

118. a. b. c. d. e.

,aper, pencils, lubricants, paint, nails, and brooms are e'amples of _____. supplies capitals raw materials specialty products installations (Answer a! p. %5%! #asy$ What is a ma=or tool companies use to market themselves to various publicsFsuch as General #lectric states, 2We bring good things to life43 ,ersonal marketing. *orporate image marketing. ,roduct quality. ,roduct line. Aeminder ads. (Answer b! p. %5%! *hallenging$ _____ can also be marketed. 9n one sense, all marketing is the marketing of this. 9t can be specific, such as *rest toothpaste>s 2create smiles every day.4 *o-branding 9nternal marketing 9deas ;nsought products /arketing intelligence (Answer c! p. %5+! /oderate$ Cou have =ust read an article on the latest research about product quality. Cou want to tell your supervisor that product quality has two dimensions. What is one of these dimensions3 *onsistency. )rand. *onvenience product. (pecialty product. 9mage. (Answer a! p. %1+! #asy$ *hicken of the (ea brand tuna sells more than the same si?e Broger brand tuna even though the Broger tuna costs M5.11 less per can. 0his is known as brand _____. e'tension equity specialty service switching (Answer b! p. %1.! /oderate$

11". a. b. c. d. e.

1%5. a. b. c. d. e.

1%1. a. b. c. d. e.

1%%. a. b. c. d. e.

%11

1%+. a. b. c. d. e.

An apparel marketer is planning to launch an e'isting brand name into a new product category. Which brand development strategy is being implemented3 &ine e'tension. )rand e'tension. /ultibrands. Hew brands. Aebranding. (Answer b! p. %%1! #asy$ N) Auto <etailing>s customers have noticed that the quality of services depends on who provides them as well as when, where, and how they are provided. What have the customers noticed3 (ervice intangibility. (ervice inseparability. (ervice variability. (ervice perishability. (ervice distinction. (Answer c! p. %%.! /oderate$ )ecause a barber cannot inventory haircuts, which one of the following applies3 (ervice intangibility. (ervice inseparability. (ervice variability. (ervice perishability. &ow-conte't services. (Answer d! p. %%.! #asy$ Brispy Breme provides _____ to customers. tangible products services e'periences none of the above A and * (Answer e! p. 1""! /oderate$ When the 0win (i' *afe provides gourmet menu options to its customers, as well as impeccable serviceFwhich even allows the customer to hand-select his or her own cut of meatF_____ is(are$ are evident. only an actual product only an augmented product only a core benefit both a core benefit and an actual product a core benefit, an actual product, and an augmented product (Answer e! p. %55! *hallenging$

1%.. a. b. c. d. e.

1%1. a. b. c. d. e.

1%6. a. b. c. d. e.

1%7. a. b. c. d. e.

%16

1%8. a. b. c. d. e.

A hickory rocking chair, handmade by an Amish woodcarver in northern 9ndiana from locally grown wood is an e'ample of a(n$ _____. convenience product shopping product specialty product service augmented product (Answer c! p. %51! #asy$ Cou have an upset stomach. Cour spouse rushes to the corner convenience store for a bottle of ,epto-)ismol. 0his product is a(n$ _____ product. unsought convenience augmented shopping specialty (Answer b! p. %51! #asy$ /abel &u is planning to buy a new washing machine. (he notices that they come in numerous price ranges. (he wants to make sure she gets the most for her money. 0his product is a(n$ _____ product. augmented specialty convenience shopping unsought (Answer d! p. %51! /oderate$ 0he American <airy Association has announced, 2/ilkF9t <oes a )ody Good.4 0his is an e'ample of _____. corporate image advertising person marketing image marketing deceptive advertising social marketing (Answer a! p. %5%! /oderate$ 0o achieve its social change ob=ectives, social marketing _____. utili?es only the promotional , of the marketing mi' utili?es only the promotional and product ,s of the marketing mi' works to influence individuals> behavior to improve their well-being utili?es all of the ,s in the marketing mi' * and < (Answer e! p. %5.! *hallenging$

1%". a. b. c. d. e.

1+5. a. b. c. d. e.

1+1. a. b. c. d. e.

1+%. a. b. c. d. e.

%17

1++. a. b. c. d. e.

Which of the following is(are$ e'amples of product line depth3 Eamburger and cheeseburger. Eamburger and fries. *oke and <iet *oke. A and * All of the above. (Answer d! p. %1+! *hallenging$ Eelene *urtis began to market shampoo for normal hair. 9n an attempt to increase profits and use e'cess market capacity, Eelene *urtis then marketed shampoo for oily hair and color-treated hair. 0his is an e'ample of _____. line filling social marketing line stretching an unsought product people marketing (Answer a! p. %1+! *hallenging$ A manager of a Eoliday 9nn said, 2We have power and value in the market and people are willing to pay for it.4 0his manager is referring to _____. social marketing b. brand equity c. specialty products line filling product length (Answer b! p. %1.! /oderate$

1+.. a. b. c. d. e.

1+1. a. d. e.

Short Ans(er 1+6. What does the term product include3

,roducts include physical ob=ects, services, events, persons, places, organi?ations, ideas, or mi'es of these entities. (p. 1""! #asy$ 1+7. Give an e'ample of the most basic level of product, the core benefit.

#'amples are numerous. A salon owner, providing similar services of a day spa, may focus on 2pampering yourself in total rela'ation.4 (p. %55! /oderate$

%18

1+8.

;sing your response in question O1+7, give e'amples of the second level of product, the actual product.

9n this situation, the salon owner may market hair- and nail-care products and services, full- and partial-body massages, workout equipment and training, and social activities, and so forth. (p. %55! #asy$ 1+". ;sing your response in question O1+8, give an e'ample of an augmented product.

#'amples will vary. 9n this situation, an augmented product may include the customer option of having most of the services performed in the privacy and solitude of his or her home. (p. %55! *hallenging$ 1.5. Give three e'amples of convenience products.

#'amples may include soft drinks, milk, and candy. (p. %51! #asy$ 1.1. Eow do you know your e'amples in question O1.5 are convenience goods3

0hey are low-priced and require very little customer thought or shopping effort. (p. %51! #asy$ 1.%. Give three e'amples of shopping products.

#'amples may include washing machines, lawn mowers, and furniture. (p. %51! #asy$ 1.+. Eow do you know the e'amples in question O1.% are shopping products3 (hopping products often require a comparison of brands and are distributed in fewer outlets! they require more planning and shopping effort than do convenience products. (p. %51! #asy$ 1... Give three e'amples of specialty products.

#'amples may include a Aole' watch, a Naguar sports car, and an around-the-world cruise. (p. %51! #asy$

%1"

1.1.

Eow do you know the e'amples in question O1.1 are specialty products3

(uch specialty products carry e'tremely high prices! purchase frequency is usually low. )uyers typically care little about price level and carry with them a strong brand preference. (p. %51! #asy$ 1.6. Give an e'ample of place marketing.

#'amples may include activities undertaken to create, maintain, or change attitudes or behavior toward a particular place. (p. %5+! /oderate$ 1.7. As sub=ective as it may be, attempting to convince a bald man that =oining 0he Eair *lub will improve his looks and attract more dates is an e'ample of what kind of marketing3

9dea marketing is being used in this situation. (p. %5+! *hallenging$ 1.8. Eow might measuring service quality be more difficult than measuring product quality3

,roducts are tangible! therefore, measuring quality across several dimensionsFsuch as durability, functionality, and so onFmay be easier or performed more consistently than when measuring service quality. (p. %56! *hallenging$ 1.". *onsumers form relationships with products via brands. What might happen that allows a consumer to move from merely recogni?ing a brand to preferring a brand3

A consumer has likely tried the brand at least once in order to prefer it over others! or, perhaps the consumer prefers a brand merely because he or she has been e'posed to a catchy ad or promotional gimmick. (p. %11! *hallenging$ 115. Eow might a flower shop, for e'ample, engage in line stretching3

A flower shop may offer single-stem, fresh-cut flowers, sold individually, small arrangements, bouquets, or large ceremonial sprays! with line stretching, the flower shop will offer a wide array of products geared toward all types of flower buyers. (p. %1%! *hallenging$

%%5

111.

Give an e'ample of product depth in the soft drink industry.

#'amples include *oke, <iet *oke, *affeine-free *oke, and *herry *oke. (p. %1+! #asy$ 11%. *onsider such brand names as A1 (teak (auce, .5", A I < @intment, A I W Aoot )eer, and (uper 8. Eow might such names with alphanumeric characters aid in brand name selection3

(uch brands are easy to pronounce, easy to recogni?e, and easy to remember. (p. %17! #asy$ 11+. *onsider a massage. What service characteristics definitely define the massage as a service3

9ntangibility, variability, inseparability, and perishability all define the massage as a service. (p. %%+! #asy$ 11.. Cou have =ust flown first-class from *hicago to )oston. &ast month you flew economy-class from *hicago to )oston. When assessing the quality of service you received on both flights, you admit that you preferred the economy-class flight. &ist three possible factors that may have led to that variability.

0he first-class flight may have been bumpy due to windy weather or the plane, for whatever reason, may have left *hicago late. 0he flight attendants in the first-class section may not have been as attentive as you e'pected. 0he price difference may have been e'tremely drastic, given the equivalent service received. (p. %%.! *hallenging$ 111. As a service provider, why might you perceive the buyer-seller relationship in the service encounter to be especially critical3 *ustomers> perceptions are established during the service encounter. At this time, based on these perceptions, customers can become loyal, long-term buyers. 9t is critical that service sellers establish sound relationships from the beginning. (p. %%1! *hallenging$

%%1

Scenario Eerb /arks had built his enterprise on the faithful patronage of four specialty shops and a large contract from #lmore <istributors. )ut after two years, the maker of novelty pens and pencils had to rethink his strategy when his two-year contract with #lmore ended. Eerb had built a company reputation on the manufacture and distribution of a variety of wooden writing utensils with customi?ed engravings. (pecialty shops loved to display the products in their fancy, lighted showcases, but such specialty shopsFaloneF were not profitable. Eerb /arks had established a brand name, known merely as /arks, and decided to e'pound on it. Eerb e'tended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. Ee even added a line of various grades of personali?ed stationery and business cards. ,erhaps Eerb>s biggest added touch, however, was the addition of two salespeople who would work to e'plain the diverse array of products offered by /arks, as well as nurture e'isting accounts. 2We make an e'cellent product,4 Eerb /arks stated, 2and we honor a good guarantee on everything we sell. )ut let>s face itFwe face hundreds of competitorsP We need /arks representatives out there to help prospects understand what they should demand in something so simple as a writing tool.4 0he /arks brand was fast-becoming synonymous with top-notch customer service. ,art of the purchase package brought personal visits from the /arks representative, before the purchase and long after. 116. #'plain Eerb>s market offering3 Eerb>s wide array of specialty writing utensils is the key element in the offering! however, the /arks brand is also built upon the customer relationships established early on and nurtured in the long run. (p. 1""! #asy$ 117. <escribe the core benefit surrounding Eerb>s offerings. 0he core benefit can be described as an easier transfer of a thought onto paper with the variety of specialty writing tools by /arks. (p. %55! /oderate$ 118. #'plain the augmented product surrounding the core benefit and actual product in this scenario. 0he augmented product is the determined effort by /arks representatives to build lasting relationships with customers. (p. %55! *hallenging$

%%%

11".

What type of consumer products does /arks manufacture3 #'plain. 0he /arks brand is associated with specialty products! these products are probably higher priced and need to be perceived as different and superior from competitors> offerings. (p. %51! /oderate$

165.

<oes organi?ation marketing occur in this scenario3 #'plain. Eerb /arks does attempt to carry out activities to 2sell4 the organi?ation itself. 0he /arks products should speak for themselves! the representatives> customer visits may serve as powerful, image-building mechanisms. (p. %5%! *hallenging$

161.

Why is it critical that these products have the /arks name attached3 With the /arks brand name, the products offered can be better positioned in the market as they are identified with the /arks name and all that it stands for. (p. %58! *hallenging$

16%.

9s line filling evident in this scenario3 #'plain. Ces. #'amples of line filling include the new felt-tip pens, multiple-cartridge pens, and quills added to the e'isting line of pens and pencils. (p. %1+! /oderate$

16+.

Are e'amples of product depth evident in this scenario3 #'plain. Ces. 0here are apparently numerous versions of the same product types in this scenario! Eerb /arks can vary the materials, style, and engravings used for each product. (p. %1+! /oderate$

16..

What factors are critical in positioning the /arks brand in the marketplace3 0he success of the /arks brand depends on the products> attributes, the perceived benefits of the brand, and the beliefs and values that the /arks products deliver more than =ust certain attributes and benefits. (p. %11! *hallenging$

161.

Are brand e'tensions evident in this scenario3 #'plain. Ces. 0he /arks brand now includes stationery and business cards. (p. %%1! #asy$

%%+