Chapter 11 – MindTap – Flashcards

As a marketing intern, you're helping the director of marketing for LifePak, a company renowned for its high-quality backpacks sold under two brands, TuffPak and LifePak. LifePak has developed a new backpack that's highly versatile yet fashionable: it's durable enough to hold up under extreme weather conditions, light enough to bring on a long hike, and small enough to fit in the overhead compartments on airplanes. Your assignment is to help the director come up with a new brand name for this product. Before you can name the brand, you need tot hunk about the product offering. This will not be an inexpensive pack, but it will offer a lot of value for money. You've listed what you know about the product below. Where does each fit in terms of the total product? - One limited-edition, high-fashion version will be offered every year is an example of the _____ element of the total product offering. - The backpack is durable just like all the company's products is an example of the _____ element of the total product offering. - If the backpack carries a lifetime guarantee instead of the usual five-year guarantee, this is an example of the _____ element of the total product offering. - The _____ element of the total product offering can be exemplified by having the backpack have both a shoulder strap and a leather handle for convenience. - A _____ element of the total product offering could be allowing the customers to choose to customize their backpacks with a monogram. - A _____ element of the total product offering could be that each backpack carries a serial number so if it's lost, it can be returned to the customer via overnight delivery, free of charge. WORD BANK: core product, supplemental features, symbolic or experiential benefits

You are marketing manager for Nike, Inc. and you are responsible for the launch of a new product called the FuelBand. In testing the product, your team showed dozens of consumers two samples of the product, some advertising materials, and the consumers were asked for reactions. - "I'd like to take one home to see how well it fits into my workout routine, before I buy" is an example of the _____ stage of the product adoption process. - "I've never heard of any product like this, and I'm a fitness enthusiast" is an example of the _____ stage of the product adoption process. - "What's the price, and what do I get for my money?" is an example of the _____ stage of the product adoption process. - "I'll definitely buy one and wear it all day long, because I'm so focused on fitness" is an example of the _____ stage of the product adoption process. - "This product seems so innovative and unusual that I'd like to find out more" is an example of the _____ stage of the product adoption process. WORD BANK: awareness, interest, evaluation, trial, adoption

You are a member of the marketing team at The Dannon Company, Inc. The company makes a variety of yogurt products including one called Oikos Greek yogurt. Your team is currently considering making some packaging changes to the product. The potential package modifications have been narrowed down to a list of four. - As you add new Oikos variations, if you maintain the look of the packaging, especially the blue background and the columns, then you are using ______ packaging. - When you create a re-closeable plastic package that buyers can use for food storage at home or at work it is called _____ packaging. - If you research whether customers would accept an Oikos package that looks nothing like the containers used by competitors, then you are exploring _____ packaging. - If you survey supermarkets to learn whether they have room in the refrigerated section for four-packs of Oikos sold together at a special prices, then you are looking into _____ packaging. WORD BANK: secondary-use, category-consistent, innovative, multiple, handling-improved, family

You work for NeverStop, a company that markets batteries. The firm uses two brands, NeverStop, and PowerOver, for its products. Duracell and Energizer are your main competitors. NeverStop has seen its alkaline battery revenues level off in recent years. Both brands are strong and can support a strategic plan for revenue growth. After discussing a number of marketing strategies, you settle on four ideas related to branding. - If you team up with Harley-Davidson to market high-powered NeverStop batteries, then you are using _____. - If you market a children's flashlight with batteries sealed inside under the PowerOver brand, then you are using _____. - If you change the PowerOver brand to the NeverStop brand to avoid the need for duplication packaging, communications, and other marketing activities, then this is an example of _____. - If you pay Toyota a small fee to use its Prius brand on new, low-environemntal-impact batteries, then this is called _____. WORD BANK: individual branding, family branding, brand extension, co-branding, brand licensing

- _____ are used in the production of other products. - _____ is/are treated as expense item(s) rather than as capital item(s) because they are not expected to last as long and does not become part of the final physical product. - _____ are usually expensive and intended to be used for a considerable period of time. - _____ are purchased less frequently, but not necessarily less profitable. - _____ are purchased in large quantities, according to grades and specifications. They become part of the physical product. WORD BANK: specialty products, MRO supplies, raw materials, component parts, process materials, installations, accessory equipment

- A _____ is a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations. - A _____ is a specific version of a product that can be designated as a distinct offering among an organization's products. - The _____ is the average number of different product items offered in each product line. - The _____ is measured by the number of product lines a company offers. - A _____ is the composite, or total, group of products that an organization makes available to customers. WORD BANK: product item, product line, product mix, width of product mix, depth of product mix

Product life cycles follow a similar trajectory to biological life cycles, progressing from birth to death. A product life cycle has four major stages: introduction, growth, maturity, and decline. As a product moves through each cycle, the strategies relating to competition, pricing, distribution, promotion, and market information must be evaluated and possible adjusted. - During the _____ stage, outlets with strong sales volumes are maintained and unprofitable outlets are weeded out. - Costs and risks are high during the _____ stage. - During the _____ stage, three objectives can be pursued: generate cash flow, maintain market share and/or increase customer share. - The _____ stage is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy. - The _____ stage is characterized by intense competition because many brands are now in the market. Competitors emphasize improvements and differences int heir versions of the product. - During the _____ stage, sales fall rapidly. When this happens, the marketer must consider eliminating items from the product line that no longer earn a profit. - During the _____ stage, sales start at zero and profits are negative because companies must invest in product development and launch prior to selling. WORD BANK: introduction, growth, maturity, decline

As a marketing intern, you're helping the director of marketing for LifePak, a company renowned for its high-quality backpacks sold under two brands, TuffPak and LifePak. LifePak has developed a new backpack that's highly versatile yet fashionable: it's durable enough to hold up under extreme weather conditions, light enough to bring on a long hike, and small enough to fit in the overhead compartments on airplanes. Your assignment is to help the director come up with a new brand name for this product. Before you can name the brand, you need tot hunk about the product offering. This will not be an inexpensive pack, but it will offer a lot of value for money. The product has the following additional features: - One limited-edition, high-fashion version will be offered every year. - Pack is durable, like all the company's products. - Pack carries a lifetime guarantee instead of the usual five-year guarantee. - Pack will have both a shoulder strap and a leather handle for convenience. - Customers can choose to customize their packs with a monogram. - Each pack carries a serial number so if it's lost, it can be returned to the customer via overnight delivery, free of charge. Based on what you know about the product, its features, and its benefits, which of the following types of product is it? A. A convenience product B. A specialty product C. A shopping product D. An unsought product E. A business product

When a buyer examines a product to determine if it meets his or her needs, he or she is in the _____ stage of the product adoption process. A. Fifth B. Third C. Second D. Fourth E. First

All of the following statements are correct, except for: A. Evaluation comes before trial in the product adoption process. B. Laggards are the last adopters. They distrust new products, and when they finally adopt the innovation, it may have been replaced by a new product. C. When a buyer enters the product adoption process, eventually he will buy the product. D. Consumer products fail more often than business products. E. Products typically fail because the product's offerings do not match the customer's needs.

Which of the following statements is true about branding? A. From a seller's perspective, causes market share to fluctuate more. B. Brand recognition is the strongest degree of brand loyalty. C. For a buyer, it increases perceived risk of purchase. D. From a seller's perspective, it makes repeat purchases easier for consumers. E. A buyer's degree of brand loyalty is the same for all products from a specific seller.

Which of the following statements are correct? A. Safety is a big area of criticism for seller's packaging. B. Innovative packaging can normally be done inexpensively. C. Shapes, colors, or design have little influence over how the customer perceives the product. D. Customers in the United States prefer basic, no frills packaging. E. Multiple packaging can be appropriate for all products.

Marketers understand the primary objective of their marketing activities is to influence buyers' decision-making in favor of their firm's products and services. While most marketers pursue this objective within an ethical framework, some may not. In response, regulatory agencies like the FTC and FDA are tasked with establishing and enforcing an ethical framework for marketers to follow. The FTC's and FDA's product labeling rules and regulations are one element of this framework that is important for the buyers' decision-making process. Which of the following statements is true about the FTC's and FDA's efforts to establish an ethical framework around product labeling? A. FTC has no jurisdiction over product labeling. B. Many firms that used to feature the word "Natural" on their product labels are retracting the claim in an effort to protect themselves from lawsuits. C. Clothing garments are exempt from labeling regulations. D. All food products must include nutritional labeling. E. Government regulations have eliminated all questionable labeling practices.

The debate among consumers about whether Coke or Pepsi is better-tasting is one that arouses some passionate brand loyalty sentiments. While some consumers confess they cannot tell the difference between the two colas, there are some consumers who are fanatical in their preference for one cola over the other. When you consider the Coke versus Pepsi debate in terms of brand loyalty, which of the following statements is true? A. The degree of brand loyalty does not vary from product to product. B. There are five degrees of brand loyalty. C. Brand loyalty is on the increase. D. Brand loyalty increases customer risks. E. Brand insistence is the least common degree o brand loyalty.

When a consumer walks into a store like Best Buy, she is confronted with an extensive collection of electronic, entertainment, and technology products. Virtually every consumer-oriented, digital product on the planet is available in the store. The average consumer would simply say that Best Buy has a lot of products. However, the more-informed marketer would describe what Best Buy has to offer in terms of products, product lines, and product mixes. A marketer would make which of the following statements about the store's product mix? A. It is a group of closely related product items considered a unit because of marketing, technical, or end-use considerations. B. Depth is the number of product lines offered. C. It is a specific version of a product which can be designated as a distinct offering among an organization's products. D. It is the composite group of products an organization makes avail be to customers. E. Width is the number of products offered in each product line.

Laggards are the first to adopt a new product because they enjoy trying new products and do not mind taking a risk. A. True B. False

Early adopters choose new products carefully and are viewed as people who are in-the-know by those in the remaining adopter categories. A. True B. False

The most widely accepted approach to classifying consumer products is based on characteristics of consumer buying behavior. It divides products into four categories: convenience, shopping, specialty, and unsought products. However, not all buyers behave in the same way when purchasing a specific type of product. Thus a single product might fit into several categories. To minimize complexity, marketers think in terms of how buyers generally behave when purchasing a specific item. - _____ products include bicycles, stereos, appliances, and shoes. - Emergency medical services and automobile repairs are examples of _____ products. - _____ products are often distributed through a very limited number of retail outlets. - Because sellers experience high inventory turnover, per-unit gross margins can be relatively low for _____ products. - Examples of _____ products include fine jewelry or limited-edition collector's items. - Producers of _____ products, such as Wrigley's chewing gum, expect little promotion effort at the retail level and thus must provide it themselves with advertising and sales promotion. - For _____ products, the speed of problem resolution is often more important than price or other features a buyer might normally consider if there were ore time for making a decision. WORD BANK: convenience, shopping, specialty, unsought

You are the head of marketing for you company. You recently issued a directive for all marketing teams to use consistent strategies and tactics in all stages of the product life cycle. - During the _____ stage of the product life cycle, the marketing strategy goal is to establish and fortify the product's market position by encouraging brand loyalty. - The marketer may also cut promotion efforts and eliminate marginal distributors in the _____ stage of the product life cycle. - Marketing strategy should be designed to attract the segment that is most interested and has the fewest objections during the _____ stage of the product life cycle. - A greater mix of pricing strategies is used during the _____ stage of the product life cycle. WORD BANK: introduction, growth, maturity, decline

You are a brand manager for a consumer products company and the ultimate measure of how well you are doing your job is the degree of brand loyalty customers have for the products you manage. You strive to achieve the highest degree of brand loyalty for all your products because you recognize how much it can contribute to the success of a product. - If you are doing your job exceptionally well to the point that customers will not accept any substitutes over your brand, you have achieved a degree of brand loyalty called _____. - _____ occurs if the brand helps customers to develop their identity and self-concept and serves as a form of self-expression. - _____ occurs when a customer is aware that the brand exists and views it as an alternative purchase if the preferred brand is unavailable or if the other available brands are unfamiliar. - A well-managed brand is a(n) _____ to an organization. - _____ is the marketing and financial value associated with a brand's strength in the market. WORD BANK: brand recognition, asset, brand insistence, brand preference, loss, trademark, brand equity, cultural branding

You are continually emphasizing to your clients that product labeling has both promotional and legal aspects, and they should not underestimate the promotional aspects while focused on the legal aspects. Despite your constant urgings, many of your clients do not fully understand how labeling can be used for promotional purposes. - A _____ aspect of labeling is that labels can facilitate the identification of a product by displaying the brand name in combination with a unique graphic design. - A _____ aspect of labeling is that any food product for which a nutritional claim is made must have nutritional labeling. - A _____ aspect of labeling is that non edible items like shampoo and detergent must include both safety precautions and directions for use. - A _____ aspect of labeling is that by drawing attention to product and their benefits, labels can highlight the offer of a discount or a larger package size at the same price, or information about a new or improved product feature. - A _____ aspect of labeling is that the FTC requires that all, or virtually all, of a product's components be made in the United States if the label says "Made in U.S.A.". WORD BANK: legal, promotional

- Buyers spend considerable time comparing stores and brands with respect to price, product features, qualities, services, and perhaps warranties for _____. - Buyers will not accept substitutes for _____. - _____ are purchased according to buyer's own specifications or industry standards. - _____ are purchased in large quantities according to grade. - Buyers exert minimal purchasing effort for _____. WORD BANK: convenience products, shopping products, specialty products, raw materials, component parts

- A specific version of a product which can be designated as a distinct offering among a firm's products is called a(n) _____. - Specific items in a(n) _____ usually reflect the desires of different target markets or different consumer needs. - A _____ is the composite group of products an organization makes available to customers. - The number of product lines a company offers is called the _____ of product mix. - The average number of products offered in a product line is called the _____ of product mix. WORD BANK: product offering, length, depth, product list, product mix, product line, width, product item

A product life cycle has four major stages: introduction, growth, maturity, and decline. As a product moves through each cycle, the strategies relating to competition, pricing, distribution, promotion, and market information must be evaluated and possibly adjusted. - Marketers must actively encourage dealers to support their product in the _____ stage. - Some sales outlets are maintained and some are weeded out during the _____ stage. - A greater mix of pricing strategies is used in the _____ stage. - Profits begin to decline in the _____ stage. - Gaps in geographic market coverage should be filled in the _____ stage. WORD BANK: introduction, growth, maturity, decline

Depending on the length of time it takes them to adopt a new product, consumers tend to fall into one of five major adopter categories. - John distrusts new products. He is a member of the _____. - Thomas tends to try new products just before the average person does. He is a member of the _____. - Sally is venturesome when it comes to trying new products. She is a member of the _____. - Mark and all of his friends are skeptical of new products. They are members of the _____. - Mary chooses new products carefully and is considered "in-the-know" by her friends. she is a member of the _____. WORD BANK: early adopters, early majority, laggards, innovators, late majority

- There is a higher likelihood that Mary will purchase the same brand of detergent every time she shops if she has _____. - William wants to make sure he always has exclusive use and control of his newly invented brand of leisure shoes. William needs a _____ in order to accomplish this. - The element of a brand that is not made up of words, such as a symbol or design is a _____. - A _____ helps a buyer evaluate the quality of products, especially when the buyer is unable to judge the product's characteristics effectively. - _____ is the strongest and least common degree of brand loyalty, in which a customer strongly prefers a specific brand, will accept no substitute, and will go to great lengths to acquire it. WORD BANK: brand, brand name, brand mark, trademark, trade name, brand equity, brand loyalty, brand recognition, brand preference, insistence

- Marketers use _____ to make the product completely distinctive. - _____ may increase consumer acceptance by encouraging buyers to try it several times. - _____ may increase product's demand because it increases the amount of product available at the point of consumption. - Outer containers for products are sometimes altered so they will proceed more easily through automated warehousing systems in _____. - _____ can be reused for purposes other than its initial function. - With _____, the product is packaged in line with the packaging practices associated with a particular product category. WORD BANK: secondary-use packaging, category-consistent packaging, innovative packaging, multiple packaging, handling-improved packaging

You were recently assigned to head up the sales and marketing function for a new product division at your company. The product division sells shopping products exclusively, and it has been reasonably successful in the past. You understand the unique characteristics of shopping products, so your first task in your new role will be to make some changes in the marketing strategy for these products. Which of the following marketing strategy actions should you take to enhance the sales performance of these shopping products? A. Decrease the number of retail outlets through which your products are offered. B. Reduce the gross margins of the channel members selling your shopping products. C. Increase the amount of product information you provide online and offline to assist customers in evaluating your products ad comparing them to competitors. D. Reduce the length of the warranties on your shopping products. E. Encourage greater competition among the channel members selling your shopping products.

You manage a chain of grocery stores and you are reviewing customer comments from a recent in-store survey conducted at 50% of the stores. The following is a sampling of some of the comments received in the survey: - "I like shopping at your store because I can shop for just about every household product category I need. However, the choices in each category are too limited." - "I shop at your store primarily for breakfast cereal, but I get frustrated when I can't find cereal brands I see advertised on television." Which one of the following steps should you take to address these types of customer concerns? A. Increase the depth of your product mix. B. Decrease the prices on your products. C. Decrease the length of your product cycle. D. Increase the width of your product mix. E. Increase the promotional activities in your store.

Over the last few years, you have seen how important social media has become in shaping people's attitudes and their purchasing behavior. You want to make sure your company takes full advantage of this new paradigm for building relationships with customers and potential customers. You recognize the power of social media marketing can be magnified if marketers target the right group of users. You want to target the most influential users on social media when you market new and existing products. Which of the following groups of consumers should you target on social media if you want to generate the most word-of-mouth communications about your products? A. Early Adopters B. Late Majority C. Innovators D. Early Majority E. Laggards

You just finished meeting with a marketing client where you discussed the importance of packaging products strategically. Your client was amazed that the packaging of a product was as significant as you described in the meeting. She asked you to summarize the key points from your meeting so she could give some thought to how she might want to move forward with some changes to the packaging for her products. Select the statement that does not accurately describe the characteristics of product packaging. A. Packaging can be a major component of a marketing strategy. B. Innovative packaging must be stylish in order for it to be effective. C. Marketers should view packaging as a major strategic tool, especially for convenience products. D. Packaging must meet the needs of resellers. These wholesalers and retailers consider whether a package facilitates transportation, storage, and handling. E. Packaging can be used to communicate symbolically the quality or premium nature of a product.

Select the statement which is not true regarding the labeling of products. A. Garments must be labeled with cleaning instructions. B. A label can be part of the package or attached to the package as a separate feature. C. Questionable labeling practices still persist in the United States despite the regulations against them. D. The FTC requires that at least 40% of a product must be made in the United States if the product label says "Made in the U.S.A.". E. Products with nutritional claims must have nutritional labeling.

Normally, a product's supplementary benefits do not add value to the product in the minds of the consumer. A. True B. False

A product can be a good, service, or idea. A. True B. False

A service is a tangible result of the application of human and mechanical efforts to people or objects. A. True B. False

Products only provide functional and social benefits to consumers. A. True B. False

Any guarantees, installation, and product information are considered part of the product. A. True B. False

Which of the following is the core product for an Internet service provider? A. Keeping the system free from viruses B. Training provided to use the Internet C. Fast and reliable Internet access D. Troubleshooting during downtime E. Monthly billing report

Sam, who works for an advertising firm in New York, lives a few blocks away from his office and walks to work. Every day, on his way to the office, he picks up a copy of the New York Times from a vendor and his regular decaf from the coffee shop just outside his office. Sam's copy of the New York Times and his decaf coffee are examples of _____. A. shopping products B. convenience products C. unsought products D. installation products E. specialty products

_____ are relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort. A. Unsought products B. Convenience products C. Accessory products D. Shopping products E. Specialty products

Which of the following statements best describes the difference between shopping products and convenience products? A. Shopping products have lower inventory turnover than convenience products. B. Shopping products require more retail outlets than convenience products. C. Shopping products often require smaller advertising budgets than convenience products. D. Shopping products last for a shorter duration of time than convenience products. E. Shopping products are purchased more frequently than convenience products.

_____ refers to items for which buyers are willing to expend considerable effort in planning and making a purchase. A. Shopping product B. Impulse good C. Accessory equipment D. Convenience product E. Unsought product

Which of the following is a consumer product with one or more unique characteristics that buyers are willing to expend considerable effort to obtain? A. Specialty products B. Accessory products C. Impulse products D. Unsought products E. Convenience products

Ruth, an actor, is very particular about her evening wear. She buys all her clothes from a renowned fashion house that is famous for its limited-edition designer gowns. Ruth's evening wear is an example of a(n) _____. A. specialty product B. shopping product C. unsought product D. convenience product E. accessory product

_____ are those purchased when a sudden problem must be solved, products of which customers are unaware until they see them in a store or online, and products that people do not plan on purchasing. A. Unsought products B. Component equipment C. Convenience products D. Specialty products E. Accessory equipment

When Greg expanded his architecture firm, he invested in a two-story building for his office space. Greg's two-story building is an example of a(n) _____. A. process material B. MRO supply C. component part D. accessory equipment E. installation

Which of the following would be classified as a raw material? A. Spark plug in an automobile B. Tools to repair a machine C. Carrying case for a camera D. Computers used in a software firm E. Wheat flour used to make bread

_____ refer to business products that become part of a physical product and are either finished items ready for assembly or products that need little processing before assembly. A. Installations B. Accessory equipment C. Raw materials D. Component parts E. Process materials

Office stationary like printing paper and pens are examples of _____. A. raw materials B. process materials C. MRO supplies D. component parts E. accessory equipment

A _____ is a specific version of a product that can be designated as a distinct offering among an organization's products. A. product mix B. product item C. product line D. product assortment E. product identity

Amazon.com is an American international electronic commerce corporation that specializes in a variety of goods ranging from apparels to electronics. The complete range of products offered by Amazon.com can be referred to as its _____. A. product item B. product line C. product extension D. product matrix E. product mix

In the _____ stage of the product life cycle, sales start at zero and profits are negative. A. experimentation B. innovation C. growth D. introduction E. maturity

During the _____ stage of the product life cycle, sales rise rapidly, profits reach a peak, and then they start to decline. A. introduction B. growth C. experimentation D. decline E. maturity

Why do profits begin to decline late in the growth stage of the product life cycle? A. More competitors enter the market. B. Research and development expenses increase exponentially. C. Distribution costs increase. D. Consumer preferences begin to shift. E. customers' interest in products decrease.

During the _____ stage of the product life cycle, sales peak and start to level off or decline, and profits continue to fall. A. decline B. maturity C. innovation D. introduction E. experimentation

Which of the following is the first stage of the product adoption process? A. Trial B. Interest C. Awareness D. Evaluation E. Promotion

Sasha borrowed her friend's camera and used it for a few days to decide if she should buy the same model. Sasha is in the _____ stage of the product adoption process. A. interest B. awareness C. trial D. evaluation E. adoption

Which of following terms represents individuals who adopt a new product just before the average person does? A. Laggard B. Innovator C. Early majority D. Early adopter E. Late majority

A _____ is the part of a brand that can be spoken, including letters, words, and numbers. A. brand name B. brand recognition C. trademark D. trade name E. brand mark

_____ refers to the marketing and financial value associated with a brand's strength in a market. A. Brand name B. Brand preference C. Brand recognition D. Brand equity E. Brand mark

_____ involves the development of a container to hold a product. A. Labeling B. Packaging C. Licensing D. Positioning E. Branding

The _____ requires the Food and Drug Administration (FDA) to review food labeling and packaging for nutrition content, label format, ingredient labeling, food descriptions, and health messages. A. Fair Packaging and Labeling Act of 1994 B. Dietary Supplement Health Act of 1994 C. Nutrition Labeling Act of 1990 D. Consumer Packaging and Labeling Act of 1985 E. Food Quality Protection Act of 1996