Question 1

Elsem Foods Inc. is a company that manufactures packaged food. It sells several varieties of packaged food such as savories, cupcakes, candies, crackers, fruit juices, and carbonated drinks. It receives its largest profit from its newly introduced line of tropical fruit juices that are available in different flavors, such as orange, apple, litchi, and cranberry. Given this information, which of the following is a product item of Elsem Foods?
A)Savories
B)Candies
C)Orange juice
D)Carbonated drinks

Accepted Answer

A product item is a specific version of a product within a product line. In this case, the specific product within the product line is the tropical fruit juice in the orange flavor. Savories, candies, and carbonated drinks are all product lines, which contain multiple product items.

Question 2

Yumé Nu, a battery manufacturing company, began marketing its products as environment friendly and biodegradable even though it was not scientifically verified. In this scenario, Yumé Nu has used _____ in order to sell its products.
A)quality modification
B)product line extension
C)repositioning
D)greenwashing

Accepted Answer

Yumé Nu has used greenwashing, which refers to the practice of making unsubstantiated or false claims about the environmental benefits of a product or service to deceive consumers into buying it.

Question 3

Remnants Perfumes is a premium, exotic women's fragrance. The manufacturers of Remnants Perfumes want to establish their products as specialty products. In this case, which of the following will be an objective of the manufacturers of Remnants Perfumes?
A)To employ mass advertising strategies
B)To increase the distribution network
C)To focus on establishing a brand name
D)To decrease the prices of the products

Accepted Answer

If the manufacturers of Remnants Perfumes want to establish their products as specialty products, their objective will be to focus on establishing a brand name. Mass advertising strategies and increasing distribution networks are more applicable to mass-market products. Decreasing prices of premium products can significantly devalue the brand image and impact perceived product quality. Therefore, the best option is to focus on building brand equity through targeted marketing strategies.

Question 4

Which of the following statements is true of an implied warranty?
A)It prohibits other firms from using a brand or part of a brand without permission.
B)It gives the impression of environmental friendliness to a product.
C)It ranges from simple statements to extensive documents written in technical language.
D)It comes with the sale of every product under the Uniform Commercial Code.

Accepted Answer

An implied warranty is a guarantee that comes with the sale of a product under the Uniform Commercial Code (UCC). It is not related to brand usage, environmental friendliness, or technical language. The implied warranty ensures that the product is fit for its intended purpose and meets minimum standards of quality and performance.

Question 5

Which of the following statements is true of an express warranty?
A)It gives the impression of environmental friendliness to a product.
B)It is an unwritten guarantee that a good or service is fit for the purpose for which it is sold.
C)It prohibits other firms from using a brand or part of a brand without permission.
D)It ranges from simple statements to extensive documents written in technical language.

Accepted Answer

An express warranty can range from simple statements to extensive documents written in technical language describing the specific promises made by the seller concerning the product.

Question 6

Consumers usually buy a(n) _____ only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.
A)unsought product
B)specialty product
C)convenience product
D)shopping product

Accepted Answer

Shopping products are products that consumers spend time comparing and researching before making a purchase. They usually consider factors such as style, practicality, price, and lifestyle compatibility before making a decision. Examples of shopping products include clothing, electronics, and furniture. Therefore, a shopping product is the best choice that fits the given description.

Question 7

Which of the following statements is true of a specialty product?
A)It is widely distributed in a geographic area so that sufficient quantities can be sold.
B)It is marketed using selective, status-conscious advertising to maintain its exclusive image.
C)It is easily substituted with products that have the same features.
D)It is unknown to a potential buyer or a known product that the buyer does not actively seek.

Accepted Answer

A specialty product is a unique or exclusive product that is marketed using selective, status-conscious advertising to maintain its image of exclusivity. It is not widely distributed, and there are usually no close substitutes.

Question 8

Which of the following statements is true of trademarks?
A)Trademark rights are effective from the date of registration.
B)Rights to trademarks are also given to generic product names.
C)Trademark protection must be renewed every year.
D)Rights to trademarks last as long as the mark is used.

Accepted Answer

Trademark rights last as long as the mark is used, and do not require yearly renewal. Option A is incorrect because trademark rights are effective from the date of first use, not registration. Option B is incorrect because generic product names cannot be trademarked.

Question 9

Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its products in all European countries under the same brand name. In this scenario, Yater's Inc. has decided to use a(n) _____.
A)transactional marketing strategy
B)co-branding strategy
C)one-brand-name strategy
D)individual branding strategy

Accepted Answer

Yater's Inc. has decided to use a one-brand-name strategy by marketing and selling its products in all European countries under the same brand name.

Question 10

Remonet, a smartphone manufacturer, has launched its new products-HY15, HY20, and HY50. These smartphone models are part of its HY series. HY15, being the most budget friendly, attracts more consumers and achieves better sales figure. In this scenario, Remonet's HY15 smartphone model is an example of a(n) _____.
A)convenience product
B)product item
C)unsought product
D)product line

Accepted Answer

The HY15 smartphone model is a specific product within the HY series, making it a product item.

Question 11

A cell phone manufacturing company is said to functionally modify one of its products if it:
A)introduces a sleek and stylish version of the cell phone with the same specifications.
B)reduces the price of the cell phone ahead of a sale.
C)introduces stylish headphones for the cell phone.
D)releases a software update to fix the cell phone's heating problem.

Accepted Answer

Releasing a software update to fix the cell phone's heating problem would be a functional modification as it is improving the product's performance and addressing a known issue. The other options (A, B, and C) are mainly cosmetic or pricing-related and do not necessarily enhance the phone's functionality.

Question 12

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.
A)product line reeling
B)product line extension
C)product line classification
D)product line contraction

Accepted Answer

Product line extension occurs when a company adds products to an existing product line to compete more broadly in the industry. Product line reeling is not a common term, product line classification refers to the method of classifying the different products in a line and product line contraction refers to reducing the number of products in a line.

Question 13

Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.
A)informational labeling
B)persuasive labeling
C)grade labeling
D)promotional labeling

Accepted Answer

The labeling is providing information about the furniture's construction features, making it an example of informational labeling.

Question 14

One of the functions of universal product codes (UPCs) is to:
A)allow products to be modified for improved sales.
B)help customers resell products that have no market value.
C)increase customer loyalty and brand value of a product.
D)help retailers prepare records of customer purchases.

Accepted Answer

Universal product codes (UPCs) help retailers prepare records of customer purchases by scanning the barcode at the time of purchase. This helps in maintaining inventory, tracking sales, and keeping records of transactions.

Question 15

Which of the following statements is true of an organization's product mix?
A)Firms widen their product mix to capitalize on established reputations.
B)A wide product mix decreases sales and profit-making potential.
C)A wide product mix means that the product line is deep.
D)All product items in a product mix follow a standard marketing strategy.

Accepted Answer

Firms often use their established reputation to expand their product mix and enter new markets. This helps them leverage their existing customer base and brand recognition to generate additional revenue. Option B is incorrect because a wider product mix can actually increase sales and profit potential by appealing to a larger customer base and offering more options for upselling and cross-selling. Option C is incorrect because a deep product line refers to the number of products within a specific category, while a wide product mix refers to the variety of products across different categories. Option D is incorrect because each product item within a product mix may require a unique marketing strategy based on its target audience, distribution channel, and competitive positioning.

Question 16

Compared with convenience products, shopping products are:
A)less expensive.
B)found in fewer stores.
C)purchased without significant planning.
D)new products unknown to a potential buyer.

Accepted Answer

Shopping products are typically more expensive and involve more planning and consideration before purchase. They are also usually found in fewer stores with more limited distribution.

Question 17

Nestor's Nesties, a confectionery company, sells a variety of dark chocolates, milk chocolates, gummies, fruit juices, biscuits, cereals, and even cheese. These products together constitute the company's _____.
A)brand symbol
B)product line
C)brand mark
D)product mix

Accepted Answer

The product mix refers to the entire range of products that a company offers. In this case, Nestor's Nesties offers a variety of products including dark chocolates, milk chocolates, gummies, fruit juices, biscuits, cereals, and even cheese, which together constitute the company's product mix. Options A, B, and C refer to specific elements of a company's branding, which are not necessarily the same as the product mix.

Question 18

Identify a true statement about specialty products.
A)They are made directly available to a consumer through direct mail.
B)They are relatively inexpensive and merit little shopping effort.
C)They are easily substituted with other products.
D)They are distributed to only a few outlets in a geographic area.

Accepted Answer

Specialty products typically have limited distribution and availability, and are only sold through a few select outlets in a geographic area. They often have unique features, high quality, and high price, making them less likely to be easily substituted with other products. Direct mail is not necessarily a common distribution channel for specialty products.

Question 19

Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.
A)informational labeling
B)persuasive labeling
C)grade labeling
D)promotional labeling

Accepted Answer

The labeling described provides information about the product's construction features, making it an example of informational labeling.

Question 20

_____ occurs when two brands receiving equal treatment borrow from each other's brand equity.
A)Ingredient branding
B)Cooperative branding
C)Complementary branding
D)Family branding

Accepted Answer

Cooperative branding occurs when two brands collaborate and receive equal treatment, leveraging each other's brand equity.

Quiz 10: Product Concepts

Yumé Nu, a battery manufacturing company, began marketing its products as environment friendly and biodegradable even though it was not scientifically verified. In this scenario, Yumé Nu has used _____ in order to sell its products.

Remnants Perfumes is a premium, exotic women's fragrance. The manufacturers of Remnants Perfumes want to establish their products as specialty products. In this case, which of the following will be an objective of the manufacturers of Remnants Perfumes?

Which of the following statements is true of an implied warranty?

Which of the following statements is true of an express warranty?

Consumers usually buy a(n) _____ only after comparing several brands or stores on style, practicality, price, and lifestyle compatibility.

Which of the following statements is true of a specialty product?

Which of the following statements is true of trademarks?

Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its products in all European countries under the same brand name. In this scenario, Yater's Inc. has decided to use a(n) _____.

A cell phone manufacturing company is said to functionally modify one of its products if it:

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.

Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.

One of the functions of universal product codes (UPCs) is to:

Which of the following statements is true of an organization's product mix?

Compared with convenience products, shopping products are:

Nestor's Nesties, a confectionery company, sells a variety of dark chocolates, milk chocolates, gummies, fruit juices, biscuits, cereals, and even cheese. These products together constitute the company's _____.

Identify a true statement about specialty products.

Most major furniture manufacturers affix labels to their wares that explain the products' construction features, such as type of frame, number of coils, and fabric characteristics. This form of labeling is an example of _____.

_____ occurs when two brands receiving equal treatment borrow from each other's brand equity.