True/False
Indicate whether the statement is true or
false.
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1.
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Marketing planning efforts begin with selecting a brand name. Pricing,
marketing channel, and marketing communications are then determined, based on the nature of this
brand name.
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2.
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Branding is the process of creating an identity for a product and
differentiating it from competition.
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3.
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Branding assures the customer of uniform product quality.
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4.
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In Canada, trademark protection can be extended to both the brand name and to
pictorial designs that represent the brand, like Tony the Tiger.
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5.
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A brand name becomes a legally generic name when the original owner makes an
official request to the federal government that it give the name the "generic"
designation.
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6.
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A brand that has high brand equity is worth more on the stock market and more to
shareholders of the company that owns the brand than a brand that has low brand equity.
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7.
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Advertising is an effective way to increase brand preference, but it is
relatively ineffective at creating brand familiarity.
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8.
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Aaker argues that, among the four factors contributing to strong brands and
brand leadership, having good brand architecture is more important than having a clear identity and
position in the marketplace.
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9.
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The introduction of low fat versions of their existing candy bars by
Hershey's and Mar's are examples of brand extension.
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10.
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One of the advantages to retailers of offering their own private brands is that
they can make higher profit margins on these brands than they do on national brands.
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11.
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In the retail food industry, there are three types of brands: national brands,
private brands, and no-names.
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12.
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Package design involves a variety of marketing considerations, such as
attractiveness, safety, and cost-effectiveness, but protection against pilferage is not among them
since it is a retailer's concern.
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13.
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Packaging represents a larger portion of the cost of producing many products
than the actual product inside the package.
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14.
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Universal Product Codes were originally put on packages and labels to cut
expenses in supermarket industry, but they have since proved to be a valuable cost-cutting mechanism
for manufacturers as well.
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15.
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The key factors in defining consumer product categories are the consumer's
evaluation of the effort and the risk associated with obtaining the product.
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16.
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Since consumers devote as little effort as possible to the purchase of
convenience goods, widespread availability is an important factor in a convenience good's
marketing mix.
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17.
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Shopping products are typically less expensive than convenience or preference
products and are most often purchased by men.
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18.
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Business-to-business products can be classified using the same factors that are
used to classify consumer products, but they are typically classified according to their use.
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19.
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When the Zapp Foods Company purchases potatoes for use in its Cajun Crawtaters
Spicy Potato Chips, it is assured of standardized raw materials of uniform quality due to the fact
that most raw materials are graded prior to sale.
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20.
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Supplies are sometimes called MRO items because they can be classified into
three categories: (1) multiple items, (2) repeat purchases, and (3) operating expenses.
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Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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21.
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A product mix is comprised of
a. | product lines and individual offerings. | b. | individual offerings
and collective offerings. | c. | the marketing mix and related
variables. | d. | the product life cycle and line extensions. |
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22.
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Domino’s Pizza introduced buffalo wings into its menu in the early 1990s.
At that time, company executives were concerned that the product would take sales from its pizza
offerings. Executives were concerned about the concept termed
a. | line extension. | b. | product line. | c. | loss
leader. | d. | cannibalization. |
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23.
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Individual offerings that appeal to different market segments but are closely
related to the existing product line are called
a. | coordinated lines. | b. | line extensions. | c. | product
lines. | d. | line positions. |
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24.
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When Coca-Cola introduces new flavours and sizes of Coke, it is applying a
________________ strategy.
a. | new brand | b. | line extension | c. | multibrand | d. | product
diversification |
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25.
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The product life cycle is a useful tool for managers because it
a. | can be used to predict the ultimate life span of a product. | b. | helps them recognize
that products must be managed differently over time. | c. | can be used to control
costs. | d. | helps them recognize when they have launched a fad. |
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26.
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The stage of the product life cycle in which sales volume rises rapidly, and
word of mouth and mass advertising induce hesitant buyers to make trial purchases is
a. | introduction. | b. | growth. | c. | maturity. | d. | decline. |
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27.
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In the maturity stage of the product life cycle, profits level off or decline
slightly due to
a. | increased competition. | b. | the decline in the number of potential
customers. | c. | overcapacity. | d. | increases in promotion
costs. |
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28.
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The miniskirt is an example of
a. | a fashion. | b. | an abbreviated life cycle
product. | c. | a fad. | d. | a residual
market. |
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29.
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Product life cycles can be extended even though no new customers enter the
market if marketers
a. | reduce prices across the board on all their output. | b. | increase frequency
of product use by current buyers. | c. | ignore the stage in the product life cycle
entirely. | d. | increase their supply of products. |
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30.
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Tide laundry detergent, with more than 50 modifications of packaging, cleaning
performance, sudsing characteristics, aesthetics, and physical properties, is an example of
a. | creating an entirely new product. | b. | extending the product life
cycle. | c. | creating a line extension. | d. | none of the
above. |
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31.
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According to recent surveys, of all the new products introduced, about ____
percent are truly new products and ____ percent are line extensions.
a. | 10; 90 | b. | 33; 67 | c. | 15;
85 | d. | 25; 75 |
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32.
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Which of the following is the least likely cause of a product’s failure in
the marketplace?
a. | product design defects | b. | adequate market assessment | c. | the seller’s
lack of market orientation | d. | inadequate launch efforts at the time of
introduction |
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33.
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The development of the CD-ROM is an example of
a. | product improvement. | b. | market development. | c. | product
development. | d. | product diversification. |
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34.
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When organizing for new product development, specialists from different areas of
the organization who are pulled together as needed to develop new products are generally
called
a. | a new product department. | b. | product managers. | c. | a venture
team. | d. | a new product committee. |
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35.
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Conducting research to determine unmet needs and wants of consumers would be
useful for which part of the new product development process?
a. | commercialization | b. | test marketing | c. | screening | d. | idea generation |
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36.
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Selecting one to three cities considered reasonably typical of the total
marketing campaign and introducing a new product to these areas prior to a national launch is
called
a. | local advertising. | b. | concept testing. | c. | test
marketing. | d. | business analysis. |
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37.
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The stage in the adoption process reached when an individual learns about a new
product but lacks information about it is called
a. | awareness. | b. | trial. | c. | interest. | d. | adoption. |
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38.
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Kate Hunter is often an opinion leader. She is younger and better educated and
has a higher income and social status than other consumers. In the consumer adoption process,
she is most likely
a. | an innovator. | b. | part of the early majority. | c. | a
laggard. | d. | an early adopter. |
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39.
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A new product innovation that seems to be far superior to previous products in
the same category hastens its adoption by offering its potential users a greater level of
a. | compatibility. | b. | complexity. | c. | relative
advantage. | d. | observability. |
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40.
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A new product innovation that has a low level of complexity
a. | is more observable than previous ideas. | b. | is consistent with
the values and experiences of potential adopters. | c. | allows potential buyers limited initial use
before purchase. | d. | is relatively easy to understand. |
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