Chapter 12, Top 10 Concepts, Question and answers

1. TOP 10 Learning Questions for
(Chapter 12)
LU, QINGJUAN
December 16, 2011
Chapter 12 Setting Product Strategy

2. 1. In below five of the Product Levels-
Customer-Value Hierarchy, which one
is the Fundamental level of the
hierarchy?
A. Potential Product
B. Augmented Product
C. Expected Product
D. Basic Product
E. Core Benefit
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3. Product Levels: The
Customer-Value Hierarchy
Basic Product-the
Expected Product-
Core Benefit- marketer must turn the
attributes and
Fundamental Level core benefit into a basic
conditions of buyers
product
Potential Product-
Augmented Product- encompasses all the
exceeds customer possible augmentations
expectations and transformations for
the product
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4. 2. At the third level of the customer
value hierarchy, the marketer prepares
a(n) _____, a set of attributes and
conditions buyers normally expect
when they purchase this product.
A. Potential product
B. Expected product
C. Augmented product
D. Basic product
E. Anticipated product
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5. Customer-Value Hierarchy
At the third level, the marketer prepares an
Expected Product, a set of attributes and
conditions buyers normally expect when they
purchase this product.
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6. 3. _____ goods are purchased without
any planning or search effort.
A. Staples
B. Impulse
C. Unsought
D. Emergency
E. Nondurable
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7. Consumer- Goods Classification
Staples are goods consumers purchase on regular basis.
Impulse goods are purchased without any planning or
search effort.
Emergency goods are purchased when a need is urgent.
Unsought goods are those the consumer does not know
about or does not normally think of buying.
Nondurable goods are tangible goods normally consumed
in one or a few uses.
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8. 4. Buyers expect products to have a high
_____, which is the degree to which all the
produced units are identical and meet the
promised specifications.
A. Performance quality
B. Conformance quality
C. Durability
D. Repairability
E. Reliability
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9. Conformance Quality
Conformance Quality which is the degree to which all
the produced units are identical and meet the promised
specifications.
Durability measure of the product’s expected operating
life under natural or stressful conditions is a valued
attribute for certain products.
Reliability measure of the probability that a product will
not malfunction or fail within a specified time period
Repairability measure the ease of fixing a product when
it malfunctions or fails.
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10. 5. Tide detergent comes in two scents and
two additives creating variation with the
brand. This refers to the _____ of the product
mix.
A. Depth
B. Length
C. Width
D. Consistency
E. Breath
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11. Product Systems and Mixes
The Width of a product mix refers to how many
different product lines the company caries.
The Length of a product mix refers to the total
number of items in the mix.
If Tide comes in two scents, two formulations and
two additives, Tide has a depth of eight because
there are eight distinct variants.
The Consistency of the product mix refers to how
closely related the various product lines are in end
use.
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12. 6. A company can classify its products into four types.
Which type of product produces a high sales volume
and is heavily promoted but has low margins because
it is viewed as an undifferentiated commodity?
A. Core product
B. Staple product
C. Specialty product
D. Convenience items
E. Shopping goods
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13. Four types of Product yield different gross
margins depending on sales volume and
promotion.
Core products-high sales volume and are heavily promoted
but with low margins because then are viewed as
undifferentiated commodities.
Staples-Items with lower sales volume and no promotion.
Specialties- Items with lower sales volume but that might be
highly promoted.
Convenience items- high volume but receive less promotion.
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14. 7. A company may wish to enter the high end of
the market for more growth , higher margins, or
simply to position themselves as full-line
manufacturers. This is called a(n) _____?
A. Two-way stretch
B. Up-market stretch
C. Down-market stretch
D. Sideways stretch
E. High-end stretch
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15. Line Stretching
• Down-Market Stretch: A company positioned in the
middle market may want to introduce a lower-price
line
• Up-Market Stretch: Companies may wish to enter the
high end of the market to achieve more growth.
• Two-Way Stretch: Companies serving the middle
market might decide to stretch their line in both
directions.
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16. 8. A company normally develop product lines
rather than single products and introduce
price steps, This is _____?
A. Product-Line Pricing
B. Optional-Feature Pricing
C. Captive-Product Pricing
D. Two-part Pricing
E. By-product Pricing
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17. Product-Mix Pricing
Product-line pricing is company normally develop product
lines rather than single products and introduce price steps.
Optional-feature pricing is company offer optional products,
features, and services along with their main product.
Captive-product pricing are some products require the use of
ancillary products, or captive products.
Two-part pricing is consisting of a fixed fee plus a variable
usage fee.
By-product pricing is the production of certain goods meats,
pertroleum products and other chemicals.
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18. 9. _____ is defined as all activities of
designing and producing the container for a
product.
A. Designing
B. Packaging
C. Containerizing
D. Labeling
E. Marketing
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19. Packaging
a. Labeling may be a simple tag attached to
the product or an elaborately designed
graphic that is part of the package.
b. Packaging as all the activities of designing
and producing the container for a product.
c. Designing is particularly important is making
and marketing retail services, apparel,
packaged goods and durable equipment.
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20. 10. A _____ is a formal statement of expected
product performance by the manufacturer.
A. Guarantee
B. Label
C. Promise
D. Warranty
E. Mission statement
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21. Packaging, Labeling, Warranties, and
Guarantees
A. Packaging as all the activities of designing and
producing the container for a product.
B. Labeling may be a simple tag attached to the
product or an elaborately designed graphic that is
part of the package.
C. Warranties are formal statement of expected
product performance by the manufacturer.
D. Guarantees reduce the buyer’s perceived risk.
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22. Chapter 12 concepts
o Product is the first and most important element of marketing
mix. Product strategy calls for making coordinated decisions on
product mixes, product lines, brands, and packaging and
labeling.
o In planning its market offering, the marketer needs to think
through the five levels of the product: the core benefit, the
basic product, the expected product, the augmented product,
and the potential product, which encompasses all the
augmentations and transformations the product might
ultimately undergo.
o Products can be classified in several ways. In terms of durability
and reliability, products can be nondurable goods, durable
goods, or services.
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23. Chapter 12 concepts
Brands can be differentiated on the basis of a number
of different product or service dimensions: Product
form, features, performance, conformance, durability,
reliability, repairability, style, and design, as well as
such service dimensions as such service dimensions as
ordering ease, delivery, installation, customer training,
customer consulting, and maintenance and repair.
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24. TOP 10 Learning Questions for
(Chapter 12)
LU, QINGJUAN
December 16, 2011
Chapter 12 Setting Product Strategy