Chapter 8

1) Which of the following is true with regard to products?

A) The quality of products is far more difficult to measure than that of services.
B) Products do not include experiences, organizations, persons, places, and ideas.
C) Products are not meant for sale in the market.
D) Products include services, events, persons, places, organizations, ideas, or a mixture of these.
E) Products refer to only those activities that are essentially intangible.

2) ________ 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.
A) Liabilities
B) Services
C) Brands
D) Consumer products
E) Specialty products

3) Which of the following exemplifies a service?

A) candy
B) laptop
C) hair salon
D) car
E) laundry detergent

4) Market offering includes everything from pure tangible goods to pure services, as well as
combinations of goods and services. Which of the following is NOT a product or service?
A) breakfast cereal
B) rental car
C) free concert
D) shoes
E) haircut

5) Which of the following is true with regard to services?

A) Services refer to purely tangible products.
B) Services are a form of product that consists of activities, benefits, or satisfactions offered for
sale.
C) Services can be stored for later use.
D) Services can be easily separated from their providers.
E) Services are tangible product offerings whose quality can be easily measured.

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6) Which of the following is an example of a pure tangible good?
A) a laptop with a comprehensive warranty for three years
B) an online shoe retailer that provides free home delivery
C) an agency that offers free legal advice
D) a credit card
E) a bag of potato chips

7) Product planners need to consider products and services on three levels. Each level adds more
customer value. The most basic level is ________, which addresses the question, "What is the
buyer really buying?"
A) an actual product
B) an augmented product
C) core customer value
D) co-branding
E) exchange value

8) Product planners need to consider products and services on three levels. At the second level,
product planners must ________.
A) offer additional product support and after-sale services
B) identify the core customer value that consumers seek from the product
C) turn the core benefit into an actual product
D) find out how they can create the most satisfying brand experience
E) define the problem-solving benefits or services that consumers seek

9) Product planners need to consider products and services on three levels. At the third level,
product planners must build ________.
A) an actual product
B) an augmented product
C) core customer value
D) a brand personality
E) a basic product

10) Consumer products refer to ________.

A) products purchased by consumers for further processing or for use in conducting a business
B) products and services bought by final consumers for personal consumption
C) primarily intangible offerings from marketers
D) raw materials as well as manufactured materials and parts
E) products that aid in the consumer's production or operations, including installations and
accessory equipment

11) ________ are consumer products and services that customers usually buy frequently,
immediately, and with minimal comparison and buying effort.
A) Unsought products
B) Capital items
C) Shopping products
D) Convenience products
E) Supplies and repair services

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12) Which of the following is an example of a convenience product?
A) fast food
B) diamond ring
C) furniture
D) life insurance
E) refrigerator

13) ________ are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style.
A) Shopping products
B) Convenience products
C) Unsought products
D) Capital items
E) Supplies and repair services

14) ________ 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.
A) Shopping products
B) Unsought products
C) Specialty products
D) Capital items
E) Convenience products

15) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania,

from locally grown wood, is an example of a ________.
A) convenience product
B) capital item
C) service
D) specialty product
E) product attribute

16) ________ are consumer products that the consumer either does not know about or knows
about but does not normally think about buying.
A) Specialty products
B) Convenience products
C) Unsought products
D) Shopping products
E) Capital items

17) ________ marketing consists of activities undertaken to create, maintain, or change attitudes
toward particular people. People ranging from presidents, entertainers, and sports figures to
professionals such as doctors, lawyers, and architects use it to build their reputations.
A) Corporate image
B) Person
C) Social
D) Organization
E) Place

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18) ________ marketing involves activities undertaken to create, maintain, or change attitudes
toward particular cities, states, or regions.
A) Idea
B) Place
C) Organization
D) Social
E) Interactive

19) Tourism Australia's global marketing campaign, "There's nothing like Australia" is an
example of ________ marketing.
A) corporate image
B) person
C) organization
D) internal
E) place

20) Public health campaigns designed to reduce alcoholism, drug abuse, smoking, and obesity
are all examples of ________ marketing.
A) internal
B) social
C) organization
D) person
E) place

21) Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by ________.
A) product labels
B) product attributes
C) support services
D) product packaging
E) branding

22) ________ refers to freedom from defects and consistency in delivering a targeted level of
performance.
A) Performance quality
B) Product style
C) Branding
D) Conformance quality
E) Product design

23) Style simply describes the ________ of a product.

A) quality
B) appearance
C) utility
D) durability
E) long-term benefits

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24) ________ contributes to a product's usefulness as well as to its looks.
A) Sensational style
B) Good design
C) Quality
D) Consistency
E) Packaging

25) A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies
the maker or seller of a product or service.
A) feature
B) brand
C) line extension
D) package
E) value chain

26) ________ involves designing and producing the container or wrapper for a product.
A) Packaging
B) Patenting
C) Servicing
D) Co-branding
E) Labeling

27) A product's ________ identifies the product or brand, describes several things about the
product, and promotes the brand.
A) line extension
B) portfolio
C) label
D) design
E) feature

28) 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.
A) product line
B) line extension
C) private brand
D) multibrand
E) new brand

29) The major product line decision involves product ________, the number of items in the
product line.
A) features
B) line depth
C) line conformance
D) line length
E) packaging

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30) ________ involves adding more items within the present range of the product line.
A) Market diversification
B) Brand extension
C) Product line filling
D) Upward product line stretching
E) Downward product line stretching

31) ________ occurs when a company lengthens its product line beyond its current range.
A) Product line filling
B) Product line stretching
C) Co-branding
D) Niche marketing
E) Market diversification

32) Proton Corp. is an automobile manufacturer known for producing efficient, durable, and low-
priced cars. Recently, the company launched a new range of luxury cars to broaden its market
appeal and to add prestige to its existing line of cars. This is an example of ________.
A) social marketing
B) product line filling
C) product line stretching
D) internal marketing
E) cannibalization

33) A ________ consists of all the product lines and items that a particular seller offers for sale.
A) product mix
B) store brand
C) supply chain
D) value chain
E) line extension

34) Product mix ________ refers to the number of different product lines the company carries.
A) length
B) height
C) width
D) consistency
E) depth

35) Product mix ________ refers to the total number of items a company carries within its
product lines.
A) length
B) depth
C) height
D) width
E) consistency

36) Product mix ________ refers to the number of versions offered for each product in the line.
A) length
B) depth
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C) height
D) width
E) consistency

37) The ________ of the product mix refers to how closely related the various product lines are
in end use, production requirements, distribution channels, or some other way.
A) length
B) depth
C) consistency
D) width
E) height

38) If a service employee provides the service, then the employee becomes a part of the service.
This is an example of service ________.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity

39) Service ________ means that the quality of services depends on who provides them as well
as when, where, and how they are provided.
A) intangibility
B) inseparability
C) variability
D) perishability
E) heterogeneity

40) Brand ________ is the differential effect that knowing the brand name has on customer
response to the product and its marketing.
A) differentiation
B) knowledge
C) equity
D) personality
E) relevance

41) An increasing number of retailers and wholesalers have created their own ________, also
called store brands.
A) national brand
B) support brand
C) private brand
D) generic brand
E) manufacturer's brand

42) ________ occurs when two established brand names of different companies are used on the
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same product.
A) Market diversification
B) Niche marketing
C) Co-branding
D) Licensing
E) Cannibalization
Difficulty: Moderate