Deck 12: Product and Promotion: Creating and Communicating Value

Question 1

In order to promote its brand, Lambrotto, an Italian manufacturer of leather shoes, makes a deal with the organizers of an upcoming baseball league. Lambrotto pays the organizers a substantial sum of money to have the brand's banners with its logo and slogans displayed all across the baseball ground and the stadium. Lambrotto engages in this activity to gain maximum visibility. This scenario exemplifies _____.

A)sponsorship
B)cross-selling
C)lobbying
D)vertical integration

Answer 1

A

Question 2

Most car dealers allow test-driving of the cars they sell to increase the _____ of their product.

A)relative advantage
B)trialability
C)compatibility
D)observability

Answer 2

B

Question 3

Which of the following is a traditional promotional tool?

A)Product placement
B)Sales promotion
C)Sponsorship
D)Native advertising

Answer 3

B

Question 4

One of the benefits of licensing is:

A)lesser legal restrictions.
B)ease of finance from the parent company.
C)instant name recognition.
D)that it safeguards the company's products as an exclusive entity.

Question 5

Blush Clinique, a makeup company based in New York, introduces a range of cream-based lipsticks. It puts up booths in all the high-end malls of the city where it allows the visitors to sample the new products. In the context of product adoption and diffusion, Blush Clinique illustrates the characteristic of:

A)observability.
B)compatibility.
C)adaptability.
D)trialability.

Question 6

Product diffusion happens at different speeds, depending on the individual consumer and on the product itself.

Question 7

Unsought products are expensive products that consumers purchase less frequently.

Question 8

Cannibalization occurs when a producer offers a new product that takes sales away from its existing products.

Question 9

Dynamically continuous innovations are brand-new ideas that radically change how people live.

Question 10

_____ tools include premiums, promotional products, samples, coupons, rebates, and displays.

A)Product placement
B)Consumer promotion
C)Personal selling
D)Sponsorship

Question 11

Chromiate, a digital camera brand, decides to introduce a new MP3 player, GiZmo, under its brand name. Chromiate's decision is an example of brand extension.

Question 12

A home décor company manufactures a range of bedding products such as bedspreads, pillows, and mattresses. The range of bedding products represents the _____ of the company.

A)commodity chain
B)supply chain
C)product mix
D)product line

Question 13

__________are brands that the producer owns and markets.

A)Status brands
B)Store brands
C)Umbrella brands
D)National brands

Question 14

Which of the following is true of augmented products?

A)They are established goods that are modified to suit a particular consumer taste.
B)They are subsidiary products that come at a discounted cost with the main product.
C)They are additional goods or services that are attached to the main purchase or actual good.
D)They are products that are expensive and require some deliberation before purchase.

Question 15

Manufacturers rarely emphasize packaging because this aspect of the product has little relevance to a customer's decision-making process.

Question 16

Which of the following is the rationale behind using the approach of integrated marketing communication?

A)Old-school consumers view a product as more credible and trustworthy if it is marketed extensively over one form of traditional media.
B)Integrated marketing communication lets marketers send messages exactly how they want to, instead of allowing the consumers to create their own perceptions about the messages.
C)Integrated marketing communication is less expensive and less time consuming.
D)Consumers do not think about the specific source of a message, but they instead combine the messages from all the sources to create a coherent impression about the product.

Question 17

The product life cycle can be dramatically different across individual products and product categories, and predicting the exact shape and length of the life cycle is impossible.

Question 18

The two key aspects of product quality are level and longevity.

Question 19

Which of the following is true of a goods and services spectrum?

A)It exhibits different situations where services outweigh goods.
B)It lets the marketer estimate the prices that should be associated with goods and services.
C)It highlights similarities between goods and services.
D)It provides a tool for analyzing the relationship between goods and services.

Question 20

Cherry Doux Bakery reaches an agreement with Candy Call to use Candy Call's original dark chocolate in its popular chocolate cookies and sell them in its stores. The two companies are using a strategy known as cobranding.

Question 21

Bolve, a company that essentially made leather bags and jackets, introduces men's cologne under its new category of skincare products. In this case, Bolve is engaged in _____.

A)market segmentation
B)product bundling
C)brand extension
D)line extension

Question 22

Wanderboy, a company that manufactures travel bags and luggage, promises high-quality products to its customers in terms of durability, comfort, and performance. The company also ensures that it delivers on it. This scenario demonstrates that the company succeeds at delivering _____.

A)product consistency
B)brand equity
C)brand valuation
D)product mix

Question 23

The purpose of a positioning statement of a company is to:

A)convince the investors as well as the manufacturing company itself about the salability of a product.
B)understand the company's financial health.
C)show how a particular product would be placed in the various outlets and departmental stores.
D)articulate how the company would like the target market to envision a product relative to the competition.

Question 24

Crola, a cell phone manufacturing company, adds a new in-built feature to its cell phones. With the help of this feature, users can now recall messages that they may have accidentally sent to another person. To make use of this feature, the users need to go to the settings of the cell phone and make a few changes. The change made by Crola in its product is an example of a _____.

A)continuous innovation
B)disruptive innovation
C)dynamically continuous innovation
D)discontinuous innovation

Question 25

A downside of publicity is that:

A)it is often perceived by consumers as an untrustworthy and unethical practice.
B)the marketer has no control over how the media present the company or its products.
C)it is a highly expensive affair.
D)it lacks proper planning.

Question 26

An advantage of cobranding is that:

A)multiple products can be marketed at the same price.
B)both companies enjoy limited liability.
C)both partners leverage their strengths to enter new markets.
D)it ensures greater consistency in products.

Question 27

The characteristics of a product that a marketer offers are known as _____.

A)product facets
B)product features
C)product qualities
D)product visions

Question 28

In the context of business products, _____ consist of small-ticket items that businesses consume on an ongoing basis but do not become part of the final product.

A)maintenance products
B)processed materials
C)unsought products
D)accessory equipment

Question 29

LiteChoice produces six different flavors of sugar-free cookies for the diabetic population. The company also produces a large assortment of sugar-free chocolates targeted at the same population. The two kinds of products-the sugar-free cookies and chocolates-that LiteChoice produces represent the _____ of the company.

A)product chain
B)marketing mix
C)brand equity
D)product mix

Question 30

For successful product differentiation,:

A)the difference between a product and its competitor products should be large rather than small.
B)marketers should put most of their efforts into developing an appropriate brand name.
C)a product should not only be different from its competitor products but also be better.
D)a product should have a higher cost than its competitor products.

Question 31

An example of a pure good is:

A)a bed and breakfast inn.
B)a dual-colored reversible jacket.
C)an online grocery store.
D)a haircut at a premium salon.

Question 32

The product design team of a cosmetics manufacturing company presents its ideas for a new product. The team provides the management with detailed descriptions of each concept with specific product features. The team also makes a few samples that consumers can actually test. Given the information, the company is most likely in the _____ stage of the new product development process.

A)development
B)testing
C)analysis
D)idea screening

Question 33

_____ refers to promoting goodwill for a company by providing information and assistance to customers.

A)Social selling
B)Green marketing
C)Cause-related marketing
D)Missionary selling

Question 34

A health-drink company faces a lot of flak for misquoting the nutritional facts on its product packages. Once it clears the charges, the company hires a firm that helps it in reviving a positive image in the media as well as the broader community. The firm's primary task is to constantly communicate with the media personnel and make sure that the media runs unpaid stories that create a favorable impression about the company. This scenario exemplifies the use of:

A)lobbying.
B)public relations.
C)social marketing.
D)greenwashing strategies.

Question 35

Kiddiecon, a company that manufactures stationery products for children, signs a contract with an animation studio to use one of its popular cartoon characters as a design on its school bags. Kiddiecon's contract with the animation studio is an example of _____.

A)a divesture
B)cobranding
C)licensing
D)an acquisition

Question 36

Austere Realty, a real estate company, ensures that its web page always shows up high among the list of results whenever a user looks for information related to property and housing on the Internet. In this scenario, Austere Realty is actively engaged in _____.

A)geotargeting
B)web scraping
C)search engine optimization
D)organic linking

Question 37

Zetovi Corp. is a multinational communications and information technology company. It manufactures smartphones and other cell phone accessories. The company launched a range of tablets in the market, and it becomes an instant hit. The company then experiences a drastic decline in the sales of its smartphones as a large section of its customer base shifts to tablets. Which of the following concepts is being illustrated in this scenario?

A)Segmentation
B)Cannibalization
C)Market penetration
D)Product bundling

Question 38

In the introduction stage of the product life cycle, companies are primarily focused on:

A)building customer awareness of the product.
B)introducing new variations of existing products.
C)defending the franchise with competitive advertising and price cuts.
D)protecting the market share of the product from competitors.

Question 39

David, the CEO of a beverage company, wants to find out the reason for the erratic financial performance of the company over the past three years. For this, David scrutinizes the bi-quarterly sales records of the company and its annual profits. In this scenario, David is trying to analyze his company's _____.

A)product bundling
B)product lining
C)product mix
D)product life cycle

Question 40

HealthAssure Corp. manufactures Nicoloss, a nicotine-free supplement that helps people overcome their cigarette addiction. To promote its product, the company puts up kiosks inside a college campus. However, the product gets only a mild response from the students. Consequently, the company resorts to more active and aggressive promotional activities. In this scenario, Nicoloss is an example of a(n) _____.

A)convenience product
B)unsought product
C)shopping product
D)specialty product

Question 41

Cafemona, a brand of premium coffee, introduces three new variants-ginger coffee, hazelnut-flavored coffee, and rum-flavored coffee. This is an example of a _____.

A)continuous innovation
B)disruptive innovation
C)dynamically continuous innovation
D)discontinuous innovation

Question 42

Plezion Movie Palace, a film theater in Germany, gives all its customers miniatures of the main character of the latest superhero film that is being exhibited. The miniature props given by Plezion Movie Palace to its customers are examples of _____.

A)core products
B)augmented products
C)cross products
D)virtual products

Question 43

Graham's Choicest is a popular brand of dairy products. The brand plans to introduce two new flavors of milkshakes in the market. Before starting the production and manufacturing of the new products, the company asks mall visitors in three different locations to try out the samples of its new offerings and give their feedback. In the given scenario, Graham's Choicest is most likely in the _____ stage of the new product development process.

A)development
B)testing
C)commercialization
D)idea screening

Question 44

_____ is designed to stimulate wholesalers and retailers to push specific products more aggressively over the short term.

A)Product placement
B)Trade promotion
C)Viral marketing
D)Consumer promotion

Question 45

Product augmentation:

A)calls for greater purchase power at the consumer end.
B)results in the dilution of the actual goods.
C)damages the reputation of the company.
D)sharpens the competitive edge of the marketer's products.

Question 46

Aubosh, a car manufacturing company, is in a contract with Bolivin Tires. Under this contract, Aubosh purchases tires from Bolivin Tires for all its mid-range cars. In this scenario, Aubosh buys _____ from Bolivin Tires.

A)the maintenance, repair, and operating products
B)installations
C)component parts and processed materials
D)accessory equipment

Question 47

Zefie is a mobile application that has been recently launched in the market. The application becomes popular among the youth, but the usage is almost nil among the other age groups. In this case, Zelfie is experiencing a slow _____ rate.

A)diffusion
B)advection
C)concentration
D)absorption

Question 48

In the context of business product categories, marketing of raw materials primarily emphasizes:

A)price and service.
B)quantity and brand.
C)customization.
D)product differentiation.

Question 49

_____ involves using all the media platforms to promote a product.

A)Social marketing intelligence
B)Linear marketing
C)Integrated marketing communication
D)Viral marketing

Question 50

Donton Inc., a public relations firm, buys doughnuts for an office party. In this case, Donton has purchased a _____.

A)credence good
B)composite good
C)business product
D)consumer product

Question 51

Vermontz, an automobile company, pays a film studio to include its new sports car in two scenes of its latest action movie. The company feels this would help them gain maximum visibility, and the fans would also develop a positive association with the brand when they will see their favorite actor using the car in the film. Vermontz's business deal with the film studio exemplifies _____.

A)product placement
B)viral marketing
C)sponsorship
D)native advertising

Question 52

Glinda goes to the supermarket for her monthly grocery shopping. As she waits in the line at the cash register, she sees her favorite kiwi-flavored candies on a stand and puts some into her shopping cart. In the context of product classifications, the candies purchased by Glinda are _____.

A)convenience products
B)unsought products
C)shopping products
D)specialty products

Question 53

The biggest advantage of publicity is that:

A)it has negligible possibilities of negative repercussions.
B)it allows for personal interactions between a company and its customers.
C)the marketer has control over how the news is presented by the media.
D)it is usually credible.

Question 54

Dominic is the owner of Della Robotics, a business that deals in industrial robots that are mostly sold to the manufacturing industry. The strong point of Dominic's business is that he personally contacts his buyers and takes part in the negotiation process. Moreover, his company customizes the robots. In this scenario, the product manufactured by Della Robotics falls under the category of _____.

A)the maintenance, repair, and operating products
B)installations
C)component parts and processed materials
D)accessory equipment

Question 55

Nutriman, a company manufacturing health supplements, puts its advertisements in a popular health and fitness blog. The advertisements seamlessly blend in with the overall theme of the blog and almost look like a part of the platform. Which of the following strategies has Nutriman implemented in this scenario?

A)Product placement
B)Guerilla marketing
C)Sponsorship
D)Native advertising

Question 56

In the context of product layers, which of the following exemplifies an actual product?

A)A jacket for protection in chilly, windy climatic conditions
B)The raw materials that are used in manufacturing a bar of chocolate
C)The level of cathartic gratification that a video game provides to its user
D)The educational qualifications and experience of a surgeon

Question 57

My Bonnie Lass, a cosmetics company, associates with a perfume brand called Lonalove to launch a face powder that is scented with one of Lonalove's signature perfumes. This new product becomes immensely popular among consumers and both the companies benefit from it. This scenario is an example of _____.

A)peer-to-peer marketing
B)cobranding
C)licensing
D)sponsorship

Question 58

A deep association between a marketer and a partner (usually a cultural or sporting event), which involves promotion of the marketer in exchange for either payment or the provision of goods, is known as _____.

A)sponsorship
B)cross-selling
C)lobbying
D)partnership

Question 59

A fitness equipment manufacturing company initiates its new product development process. The management, along with the product design team of the company, makes estimated cost budgets for each of the potential products. This is an important part of the process as it helps the management in assessing whether the company can afford the new product. In the context of the given scenario, the company is most likely in the _____ stage of the new product development process.

A)development
B)testing
C)analysis
D)idea screening

Question 60

Rosy's Sweet Treats is a food truck that sells waffles. In this scenario, which of the following is true of Rosy's Sweet Treats?

A)The business deals in pure services.
B)The kind of product offered by the business is an example of shopping products.
C)The kind of product offered by the business is an example of specialty products.
D)The business is a mix of goods and services.

Question 61

An example of a pure service is:

A)a car service center that sells automobile parts.
B)a watch that also acts as an altimeter and a compass.
C)an accountant providing financial consultation to a firm.
D)a delivery truck delivering pizzas to customers.

Question 62

Tender Love, a company that manufactures maternity care products, holds workshops from time to time. During the workshops, trained professionals show expectant mothers different exercises that can be done during their pregnancy. The trainers also demonstrate some of the company's products to the participants. This scenario is an example of _____.

A)social selling
B)green marketing
C)cause-related marketing
D)missionary selling

Question 63

Streetlore, a footwear manufacturing company, makes business and casual shoes for both men and women. The company also makes school bags for children between the ages of five to ten years. The entire line of goods made by Streetlore represents the _____ of the company.

A)product chain
B)marketing mix
C)supply chain
D)product mix

Question 64

In the context of business product categories, the marketing of component parts and processed materials emphasizes:

A)personal selling and efficiency.
B)quantity and brand.
C)product shelf life, customization, and quantity.
D)product quality, price, and service.

Question 65

The physical good or delivered service that provides a core benefit is called the _____.

A)virtual product
B)actual product
C)secondary product
D)augmented product

Question 66

Consumers tend to view sponsorships in a positive light because:

A)they allow the consumers to get a first-hand experience of a product.
B)they are clearly connected to events that matter to the target audience.
C)they do not involve any form of transaction in either cash or kind.
D)only the premium brands opt for sponsorship.

Question 67

In the context of new product adoption, the process of a new product spreading throughout a market after it is introduced is called__________.

A)diffusion
B)advection
C)promulgation
D)integration

Question 68

Which of the following is true of licensing?

A)The core brand is partially responsible for financially supporting the company seeking the license.
B)It involves a payment of fee to the core brand.
C)All the benefits of a licensed product go to the core brand, and the core brand enjoys limited liability.
D)The core brand takes on negligible risks in the licensing agreement.

Question 69

Perizaad orders a pair of spectacles from an online store. On delivery, she receives a 50 ml bottle of lens cleaning solution along with the spectacles. In this scenario, the bottle of lens cleaning solution is a(n) _____.

A)core product
B)cross product
C)customized product
D)augmented product

Question 70

Operos, a laptop manufacturing company, introduces three new colors-midnight blue, aquamarine, and hot pink-in its Z Series laptops. This scenario reflects _____.

A)market segmentation
B)product bundling
C)brand extension
D)line extension

Question 71

__________refers to how well a product performs its core function.

A)Product line
B)Quality level
C)Perishability level
D)Licensing

Question 72

EatOut Pizzeria is a food joint that serves pizza, while GlowBelle is a luxury beauty salon that sells cosmetics. What do EatOut Pizzeria and Glow Belle have in common?

A)They provide pure services.
B)Their products are examples of unsought products.
C)They offer pure goods.
D)Their products are a mix of goods and services.

Question 73

In the context of the new product development process, the__________stage leads to detailed descriptions of each concept with specific product features.

A)testing
B)development
C)idea screening
D)analysis

Question 74

Zollien, a manufacturer of men's shirts and jackets, has reached an agreement with Arbrada Inc. According to the agreement, Zollien will pay Arbrada a substantial fee for the right to use Arbrada's name and logo on some of its clothing lines. This type of arrangement is known as:

A)licensing.
B)cannibalization.
C)line extension.
D)acquisition.

Question 75

A fast-food restaurant serves the student community within a university campus. The restaurant newly introduces pocket-friendly combo meals in its menu. The meals become so popular that the rest of the items on the menu are rarely ordered. Which of the following is being exemplified in this scenario?

A)Segmentation
B)Cannibalization
C)Market penetration
D)Product bundling

Question 76

Which of the following is most likely to take place when a company launches a new product that is lower in price than the current products of the company?

A)Cannibalization
B)Market penetration
C)Augmentation
D)Market segmentation

Question 77

Which of the following exemplifies a discontinuous innovation?

A)The research and development team of a cell phone manufacturing company installs a feature in the phones that allows the users to open different applications with a few quick hand movements.
B)TechnoZee, a multinational computer technology corporation, upgrades the data storage capacity of its USB flash drives from 32 GB to 1 TB.
C)A tea brand introduces two new flavors and changes its logo for a more sophisticated look.
D)Shinzen Labs, a food analysis and research laboratory, develops a food packaging material that repels bugs and rodents.

Question 78

Saffexo, a company that manufactures sports goods, hikes the prices of its entire range of athletic shoes. However, the company does not experience a fall in the sales of its shoes following the hike as the consumers continue to buy them. The information given in the scenario indicates that Saffexo has a good _____.

A)brand valuation
B)product consistency
C)brand equity
D)product mix

Question 79

Blue Legion, a well-known jeans manufacturer, is the main sponsor for a rock concert. Although the tickets to the concert are exorbitantly priced, the public feels that since the concert is being sponsored by a company like Blue Legion, it must be worth it. The scenario illustrates that Blue Legion has a good _____.

A)brand valuation
B)product consistency
C)brand equity
D)product mix

Question 80

Jaques M. Danver, a neuroscientist, invents a chip that can be surgically inserted into the human brain. This chip can increase the memory power in humans by 30 percent. In this scenario, Jaques M. Danver's invention is an example of a _____.

A)continuous innovation
B)disruptive innovation
C)dynamically continuous innovation
D)discontinuous innovation