Chapter 9

Marketing: Real People, Real Choices, 9e (Solomon/Marshall/Stuart)
Chapter 9 Product II: Product Strategy, Branding, and Product Management
1) Which of the following is an accurate statement about product management?

A) It is also known as quality management.
B) It is rarely team-based.
C) It is a continual process.
D) It includes responsibility for the marketing mix tools of product and promotion, but not of
price and place.
E) It involves more strategic planning than tactical planning.
Answer: C
Diff: 2
LO: 9.1: Discuss the different product objectives and strategies a firm may choose
2) When marketers develop ________ strategies, they make decisions about product benefits,
features, styling, branding, labeling, and packaging.
A) communication
B) product
C) equity
D) total quality management (TQM)
E) Six Sigma
Answer: B
Diff: 1
AACSB: Written and Oral Communication
3) Which of the following is NOT necessary for a product-related objective to be effective?

A) It should focus primarily on short-term implications.
B) It should be measurable.
C) It should be feasible.
D) It should indicate a specific time frame.
E) It should be clear.
Answer: A
Diff: 2
4) A ________ is a firm's total product offering designed to satisfy a group of target customers.
A) brand
B) product line
C) product mix
D) positioning strategy
E) marketing mix
Answer: B
Diff: 1
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5) A firm's ________ is determined by the number of separate items within the same category.
A) brand equity
B) product mix width
C) product line length
D) product quality
E) brand strategy
Answer: C
Diff: 1
6) The most appropriate strategy for a firm that wants consumers to see it as a specialist with a
clear, specific position in the market is a(n) ________.
A) full-line strategy
B) limited-line strategy
C) undifferentiated strategy
D) upward line stretch
E) downward line stretch
Answer: B
Diff: 2
AACSB: Analytical Thinking
7) A firm that plans to use a(n) ________ will add higher priced, higher quality items to its
product line.
A) upward line stretch
B) limited-line strategy
C) undifferentiated strategy
D) downward line stretch
E) cannibalization strategy
Answer: A
Diff: 2
8) Which of the following is NOT an option for extending a product line?

A) cannibalization
B) downward line stretch
C) upward line stretch
D) two-way stretch
E) filling-out strategy
Answer: A
Diff: 2
2
9) Whenever a product line or a product family is extended, there is a risk of ________, which
occurs when sales of an existing brand decline as the firm's current customers switch to the new
product.
A) product line contraction
B) disintermediation
C) cannibalization
D) brand inequity
E) brand equity
Answer: C
Diff: 1
10) An alternative to a two-way stretch is ________, adding more items within the present range
of the line.
A) cobranding
B) family branding
C) a mixing strategy
D) a filling-out strategy
E) a contracting strategy
Answer: D
Diff: 2
11) Which of the following is one of the ways that Berkowitz Piano Company can expand its
product line?
A) a product mix strategy
B) a filling-out strategy
C) societal marketing
D) internal marketing
E) line mixing
Answer: B
Diff: 2
12) A focus on serving internal customers is part of ________.

A) total quality management (TQM)
B) Six Sigma
C) ISO 9000
D) ISO 14000
E) ISO 22000
Answer: A
Diff: 2
AACSB: Interpersonal Relations and Teamwork
3
13) A firm's ________ is its entire range of products.
A) product line
B) product mix
C) marketing mix
D) promotional mix
E) positioning strategy
Answer: B
Diff: 1
14) When a company begins marketing a new product line in addition to its existing product
lines, it has done which of the following?
A) expanded the length of the product line
B) expanded the width of the product mix
C) expanded the depth of the product mix
D) expanded the width of the marketing mix
E) used a contraction strategy
Answer: B
Diff: 2
15) Which of the following refers to a product's overall ability to satisfy customers' expectations?
A) value proposition
B) brand equity
C) product precision
D) brand meaning
E) product quality
Answer: E
Diff: 1
16) Which of the following is a management philosophy that focuses on satisfying customers
through empowering employees to be an active part of continuous quality improvement of all
aspects of the company's operations?
A) cannibalization
B) total quality management (TQM)
C) Six Sigma
D) ISO 9000
E) ISO 14000
Answer: B
Diff: 2
4
17) ________ involves a five-step process called DMAIC (define, measure, analyze, improve,
and control) designed to improve quality.
A) Total quality management (TQM)
B) Cannibalization
C) ISO 9000
D) ISO 14000
E) Six Sigma
Answer: E
Diff: 2
18) It is most accurate to say that total quality management firms believe that it is the
responsibility of ________ employees to serve the needs of customers.
A) marketing
B) research and development
C) human resource
D) management
E) all
Answer: E
Diff: 3
19) Which of the following was developed to guarantee that an organization's products conform
to the customer's requirements?
A) Six Sigma
B) ISO 9000
C) ISO 14000
D) ISO 22000
E) TQM
Answer: B
Diff: 2
20) Which of the following helps an organization focus on minimizing any harmful effects it
may have on the environment?
A) Six Sigma
B) ISO 9000
C) ISO 14000
D) ISO 27001
E) TQM
Answer: C
Diff: 2
AACSB: Ethical Understanding and Reasoning
5
21) An American company wanting to be competitive in the European market would be most
likely to seek which type of certification?
A) ISO 14000
B) DMAIC
C) TQM
D) Six Sigma
E) ISO 22000
Answer: A
Diff: 2
22) Which of the following is designed to help a firm almost entirely reduce product and service
defects?
A) ISO 14000
B) ISO 27001
C) Six Sigma
D) TQM
E) ISO 22000
Answer: C
Diff: 2
23) Active Beverages targets the same people who watch the Gravity Games and enjoy
skateboarding, in-line skating, mountain biking, and other extreme sports. It makes high-energy
drinks for this target market. It does not attempt to make any drinks that are not targeted to this
market. Active Beverages uses a(n) ________.
A) undifferentiated marketing strategy
B) filling-out strategy
C) cannibalization strategy
D) limited-line strategy
E) brand extension strategy
Answer: D
Diff: 2
6
24) In addition to regular Alka-Seltzer, there is an Alka-Seltzer product for each of the following:
cold sufferers, people with upset stomachs, people who can't sleep, people with allergies, and
people who have severe headaches. The manufacturer of Alka-Seltzer is using a(n) ________ to
reach as many different target markets as possible.
A) full line strategy
D) undifferentiated strategy
E) upward line stretch
Answer: A
Diff: 2
25) Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its
ability to sell other Mercedes cars for $100,000 or more. Mercedes implemented a(n) ________.
A) downward line stretch
B) product line contraction
E) value stretch
Answer: A
Diff: 2
26) Heinz stopped marketing its "Bite Me" brand of frozen pizza snacks due to disappointing
sales. This is an example of a ________.
A) filling-out strategy
C) product line contraction
D) value stretch
E) cannibalization strategy
Answer: C
Diff: 2
7
27) A winery introduced a brand wine that it priced twice as high as its other wines. This is an
example of product extension by a(n) ________.
B) product mix
E) two-way stretch
Answer: D
Diff: 2
28) A company makes several different kinds of shampoo, but it did not have a dandruff
shampoo designed for women until it added Pro-Women antidandruff shampoo. This is an
example of a(n) ________.
B) upward line stretch
D) filling-out strategy
E) product line contraction
Answer: D
Diff: 2
29) A company introduced the Funday film to compete with lower-priced brands, but it found
many of its regular customers bought Funday instead of its usual, higher-priced film. The
company experienced ________.
A) an upward line stretch
B) a product line contraction
C) brand dilution
D) cannibalization
E) filling in
Answer: D
Diff: 2
8
30) A company has just one product line: it manufactures only supercomputers. This one product
line is also the company's ________.
A) branding strategy
B) marketing mix
C) product mix
D) promotional mix
E) brand equity
Answer: C
Diff: 2
31) Practically every brand of soft drink ever made is available at Mom's Soda Shop; regional
beverages from around the world can be purchased at the retailer's website. The retailer targets
people who have developed a fondness for a particular soft drink and can no longer find it. The
retailer's ________ is all types of soft drinks.
A) branding strategy
B) product objective
C) positioning strategy
D) marketing mix
E) product mix
Answer: E
Diff: 2
32) When creating product objectives, marketers should consider the long-term implications of
product decisions.
Answer: TRUE
Diff: 1
33) A company can stretch its product line either upward or downward, but not both directions.
Answer: FALSE
Diff: 2
34) A stock-keeping unit (SKU) is a unique identifier for each distinct brand.
Answer: FALSE
Diff: 2
AACSB: Information Technology
9
35) The poor quality of American products in comparison to Japanese products in the 1980s led
to the ISO quality revolution in American industry.
Answer: FALSE
Diff: 3
36) Total quality management involves all employees, regardless of their function, in continuous
quality improvement efforts.
Answer: TRUE
Diff: 2
37) The Six Sigma process is applied to products but not services.
Answer: FALSE
Diff: 2
38) A watch manufacturer added a watch to its product line that was higher priced than the
models it already carried. The company used a two-way stretch strategy.
Answer: FALSE
Diff: 2
39) Explain cannibalization. How does a line extension strategy increase the risk of
cannibalization?
Answer: Organizations often decide to extend their product lines by adding more brands or
models. Any time a new or similar product is introduced, there is a risk of cannibalization of
existing products. Cannibalization is the loss of sales of an existing product to a new item in a
product line or product family that the company has introduced. Instead of reaching new
customers, the new product may just cause current customers to switch brands. Marketers must
consider whether a new brand or model will significantly detract from their existing brands.
Diff: 2
AACSB: Reflective Thinking
10
40) How can marketers use elements of the marketing mix to improve product quality?
Answer: Product, place, price, and promotion are the elements of the marketing mix. Improving
quality through the product element might mean improving customer service support, making it
quicker and easier for customers to interact with the company and get the results they desire.
Improving quality through place could involve improving on-time delivery to customers by
reevaluating and modifying purchasing and delivery strategies. Improving quality through price
involves offering a lower price, which means reducing the firm's costs. Finally, improving
quality through promotion can mean making more information available to customers when and
where they want it.
Diff: 3
41) Why is successful product management increasingly important as technology moves forward
and the marketplace becomes more globalized?
Answer: As more competitors enter the global marketplace and as technology moves forward at
an increasing pace, more and more products are created, grow, reach maturity, and decline faster.
This means that good product decisions are more critical than ever. Marketers don't have the time
to try one thing, find out if it does not work, and then try something else.
Diff: 2
42) A car company is marketing a new car model that is larger and more luxurious than any of
the models currently in the product line. It is also significantly more expensive. Explain the
strategy this car company is using with its product line.
Answer: This car company is using an upward line stretch with this new car, adding a product
that is higher quality or has added features to the product line.
Diff: 2
43) What is the difference between a product line and a product mix?
Answer: A product line is a firm's total product offering designed to satisfy a single need or
desire of a group of target customers. A firm's product mix is its entire range of products,
encompassing all of the firm's product lines.
Diff: 2
11
44) What is the difference between ISO 9000 and ISO 14000?
Answer: Both are quality guidelines set forth by the International Organization for
Standardization; the ISO 9000 focuses on guaranteeing that an organization's products conform
to customers' requirements, while the ISO 14000 focuses on an organization's environmental
management.
Diff: 3
45) What is the difference between total quality management (TQM) and the Six Sigma process?
Answer: Six Sigma sets a specific goal for product and service quality, with a specific five-step
process to achieve that goal, while total quality management sets a goal of continuous
improvement of all of the company's operations.
Diff: 3
46) Identify four different possible meanings of product quality.

Answer: Answers will vary, but should reflect the different meanings of quality: durability,
reliability, versatility, consistency, precision, ease of use, safety, and aesthetics.
Diff: 2
47) The product life cycle concept can be applied by marketers as a useful framework for
describing how ________.
A) to forecast product performance
B) to develop marketing strategies
C) a market responds to a product over time
D) product ideas are developed
E) a brand gains a dominant position in the market
Answer: C
Diff: 2
LO: 9.2: Understand how firms manage products throughout the product life cycle
48) All of the following are stages in the product life cycle EXCEPT which one?
A) introduction
B) adoption
C) growth
D) maturity
E) decline
Answer: B
Diff: 2
12
49) The marketing goal for a product in the growth stage of its product life cycle is to ________.
A) stabilize profit margins
B) encourage brand loyalty
C) reach peak sales levels
D) compete on the basis of price
E) maintain market share
Answer: B
Diff: 2
50) The sales peak typically occurs during which stage of the product life cycle?
A) introduction
B) youth
C) development
D) maturity
E) leveling
Answer: D
Diff: 3
51) Which stage in the product life cycle is characterized by rapidly increasing sales and
increasing profits?
A) introduction
B) youth
C) growth
D) maturity
E) development
Answer: C
Diff: 1
52) The final stage in the product life cycle is ________.

A) maturity
B) decline
C) brand dilution
D) cannibalization
E) equity
Answer: B
Diff: 1
13
53) In which stage of the product life cycle will promotional expenditures be especially high in
an attempt to create consumer awareness?
A) product development
B) introduction
C) decline
D) maturity
E) youth
Answer: B
Diff: 2
54) Which stage in the product life cycle is usually the longest?
A) introduction
B) development
C) growth
D) maturity
E) decline
Answer: D
Diff: 2
55) In which stage of the product life cycle would a firm most likely use price reductions and
reminder advertising to encourage customers to replace worn-out items?
A) growth
B) youth
C) maturity
D) adoption
E) leveling
Answer: C
Diff: 2
56) A manufacturer of a product in the decline stage of its product life cycle would be LEAST
likely to do which of the following?
A) continue producing the product for loyal users
B) reduce the advertising budget for the product
C) phase out production of the product
D) advertise heavily without changing the product or its target market
E) withdraw most marketing support for the product and rely on e-commerce
Answer: D
Diff: 3
14
57) A manufacturer with a product in the decline stage of the product life cycle would most
likely decide to ________ if there is reason to believe that there will be a small but continuing
demand for the product.
A) maintain the product without change
B) let existing stocks of the product run out
C) drop the product immediately
D) search for replacements
E) increase sales promotion efforts
Answer: A
Diff: 3
58) ________ is the product life cycle period when sales fall off and profits drop.
A) Maturity
B) Decline
C) Development
D) Divestment
E) Leveling
Answer: B
Diff: 1
59) Kitchen dishcloths are often difficult to rinse clean and typically dry slowly. A company
developed a disposable kitchen cloth that rinses easily and dries quickly. Because this is a new
product to the market, it can be said to be in the ________ stage of its product life cycle.
A) competitive
B) trial
C) introduction
D) growth
E) youth
Answer: C
Diff: 2
15
60) There are numerous kinds of shampoo, including vitamin-enriched, fruit-enhanced, color-
reviving, therapeutic, and so on. Shampoo that simply promises to clean hair, however, has seen
declining sales, has little or no advertising, and has been phased out by most manufacturers.
Shampoo that makes no other promise than to clean hair is in the ________ stage of its product
life cycle.
A) maturity
B) leveling
C) repositioning
D) withdrawal
E) decline
Answer: E
Diff: 2
61) Recently a company brought a miniature version of its cereal bars to market. The nugget-
sized product was very successful because it was not messy. Another company then introduced a
similar product under its own brand. Mini-cereal bars are most likely in the ________ stage of
their product life cycle.
A) introduction
B) youth
C) growth
D) brand dilution
E) extension
Answer: C
Diff: 3
62) Over the past 100 years or so, Binney and Smith's Crayola crayons have become household
staples in more than 80 countries around the world. The company occasionally tinkers with the
product's marketing mix to maintain market share. Crayola crayons are in the ________ stage of
the product life cycle.
A) growth
B) extension
C) development
D) maturity
E) decline
Answer: D
Diff: 2
16
63) The length of the introduction stage of the product life cycle is typically the same for all
products.
Answer: FALSE
Diff: 2
64) Each year, the majority of new products that are introduced fail.
Answer: TRUE
Diff: 2
65) A buttery spread designed to help lower cholesterol levels is a product with a number of new
competitors entering the market. This product is most likely in the introduction stage of its
product life cycle.
Answer: FALSE
Diff: 2
66) Why do so many products fail to make it past the introduction stage of the product life cycle?
Answer: For a new product to be successful, consumers must first know about it. Then they
must believe it is something they want or need. The intense promotional costs of this stage, as
well as the firm's need to recoup its investment in developing the product, put a lot of pressure on
the firm to quickly establish and then increase sales. If marketers cannot successfully do this,
then the new product is unlikely to leave the introduction stage.
Diff: 2
AACSB: Application of Knowledge
67) Each product will have a life cycle, although its exact shape and length is not known in
advance. Briefly explain each step in the product life cycle.
Answer: Introduction is a period of slow sales growth as the product is introduced in the market.
Profits are nonexistent in this stage because of the heavy expenses of product introduction.
Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of
slowdown in sales growth because the product has achieved acceptance by most potential buyers.
Profits level off or decline because of increased marketing outlays to defend the product against
competition. Decline is the period when sales fall off and profits drop. A company may seek to
maintain a product hoping competition will diminish or drop it.
Diff: 3
17
68) Why might ad expenditures be high for products in the introductory stage of the product life
cycle?
Answer: Consumers have very little awareness about such products; promotional spending can
enhance customer awareness. Without awareness of the product, consumers will not purchase the
new product.
Diff: 2
69) Why might ad expenditures remain high in the growth stage of the product life cycle?
Answer: Though sales are increasing for such products, competition becomes fierce as
competitors attempt to enter the market; therefore, ad dollars remain high in an effort to offset
competitive threats.
Diff: 2
70) A ________ is a name, term, symbol, or other unique element of a product that identifies one
firm's products and sets it apart from the competition.
A) patent
B) brand
C) license
D) position
E) value proposition
Answer: B
Diff: 1
LO: 9.3: Explain how branding and packaging strategies contribute to product identity
71) The triangular red Nabisco logo is an example of a ________.

A) patent
B) brand mark
C) trade character
D) brand meaning
E) cobrand
Answer: B
Diff: 2
18
72) According to your text, which of the following is probably the most used and most
recognized form of branding?
A) brand name
B) trade character
C) patent
D) logo
E) copyright
Answer: A
Diff: 2
73) A good brand name should do all of the following EXCEPT fit ________.
A) the target market
B) the competition
C) the customer's culture
D) the product's benefits
E) legal requirements
Answer: B
Diff: 2
74) Which of the following is NOT a desirable quality for a brand name?
A) It should suggest something about the product's benefits.
B) It should be easy to pronounce and remember.
C) It should be a long word to get attention.
D) It needs to fit legal requirements.
E) It should make sense in the customer's culture.
Answer: C
Diff: 2
75) A ________ is the legal term for a brand name, brand mark, or trade character.
A) trademark
B) patent
C) copyright
D) logo
E) corporate mark
Answer: A
Diff: 1
19
76) Which of the following is the symbol in the U.S. for legal registration of a trademark?
A) ™
B) ®
C) ©
D) ¶
E) №
Answer: B
Diff: 2
77) Which of the following statements about brand equity is NOT true?
A) Brand equity means a brand has customer loyalty.
B) Brand equity refers to the brand's value to an organization.
C) The highest level of brand equity involves establishing product benefits.
D) Brand equity gives a firm the power to capture and hold onto a larger share of the market and
to sell at prices with higher profit margins.
E) Brand equity can provide a competitive advantage.
Answer: C
Diff: 3
78) The concept of ________ encompasses the beliefs and associations that a consumer has
about a brand.
A) brand meaning
B) brand storytelling
C) brand equity
D) product quality
E) total quality
Answer: A
Diff: 1
79) Which of the following most accurately describes a brand extension?

A) a new product that combines the power of two or more brand names
B) a new product sold under an established brand name
C) a new product added to the lower end of a product mix
D) a new product added to the higher end of a product mix
E) a new product line added to a product mix
Answer: B
Diff: 2
20
80) Which of the following marketing strategies runs the greatest risk of brand dilution?
A) brand extension
B) brand storytelling
C) generic branding
D) ingredient branding
E) sustainable packaging
Answer: A
Diff: 2
81) A family brand strategy is also called a(n) ________ strategy.

A) cobranding
B) licensing
C) umbrella brand
D) store brand
E) national brand
Answer: C
Diff: 2
82) P&G makes Tide, Cheer, Ivory Snow, and Bold detergents as well as PertPlus, Rejoice, and
Vidal Sassoon shampoos. Through its use of a separate and unique brand name for each of these
products, Procter & Gamble is using a(n) ________ strategy.
A) umbrella brand
B) family brand
C) individual brand
D) private-label brand
E) cobranding
Answer: C
Diff: 2
83) Through ________, one firm sells another firm the right to use a legally protected brand
name for a specific purpose for a specific period of time.
A) umbrella branding
B) store branding
C) franchising
D) licensing
E) trademarking
Answer: D
Diff: 1
21
84) Toronto-based Loblaw supermarket chain developed President's Choice brand products to
sell exclusively in its stores. President's Choice is an example of a ________.
A) manufacturer brand
B) national brand
C) cobrand
D) generic brand
E) private-label brand
Answer: E
Diff: 2
85) What is the most logical explanation that retailers carry private-label brands?
A) to eliminate the need for competitive advantages
B) to encourage transaction marketing
C) to support trade promotions
D) to earn more profit
E) to prevent sales cannibalization
Answer: D
Diff: 3
86) Which of the following is essentially no branding at all?

A) national branding
B) ingredient branding
C) generic branding
D) sub-branding
E) store branding
Answer: C
Diff: 1
87) In a competition between ________ and ________ brands, retailers have the advantages of
controlling what products will be stocked, where products will be stocked, what prices will be
charged, and which products will be featured in local print promotions.
A) national; manufacturer
B) national; private-label
C) store; private-label
D) national; licensed
E) manufacturer; licensed
Answer: B
Diff: 2
22
88) Which of the following is true about generic brands?
A) They are national brands.
B) They were first developed during the last period of economic prosperity in the United States.
C) They were designed to appeal to the price-conscious consumer.
D) They are store brands.
E) They are manufacturer brands.
Answer: C
Diff: 2
89) ________ is an agreement between two brands to work together in marketing a new product.
A) Manufacturer branding
B) Cobranding
C) Franchising
D) Family branding
E) Umbrella branding
Answer: B
Diff: 2
90) In ________, branded materials become component parts of other branded products.
A) family branding
B) private-label branding
C) umbrella branding
D) manufacturer branding
E) ingredient branding
Answer: E
Diff: 2
91) Breyers and Reese's have worked together to create Breyers Ice Cream with Reese's Peanut
Butter Cups. This is an example of ________.
A) family branding
B) ingredient branding
C) private-label branding
D) individual branding
E) generic branding
Answer: B
Diff: 2
23
92) Which approach to measuring brand equity focuses on the ability of a brand to charge a
higher price than the price charged by an unbranded equivalent?
A) revenue premium metrics
B) financial market metrics
C) product-market outcomes metrics
D) equity-identity metrics
E) customer mind-set metrics
Answer: C
Diff: 2
93) Which of the following types of brand equity metrics would most likely be based on
information gathered through consumer surveys?
A) revenue premium metrics
B) financial market metrics
C) brand venture metrics
D) equity-identity metrics
E) customer mind-set metrics
Answer: E
Diff: 3
94) Product packaging can do all of the following EXCEPT which one?
A) protect the product
B) provide service
C) communicate brand personality
D) make the product easier to store
E) create a competitive advantage
Answer: B
Diff: 2
95) ________ involves designing and producing the container or cover for a product.
A) Labeling
B) Licensing
C) Packaging
D) Retailing
E) Servicing
Answer: C
Diff: 1
24
96) Which of the following is true of the Universal Product Code (UPC)?
A) It is a five-digit number used to control inventory.
B) It is a package communication element.
C) It is legally required for products with dual distribution channels.
D) It is used only by companies that have more than one retail outlet.
E) It prevents product cannibalization.
Answer: B
Diff: 2
97) Which of the following is NOT true of the Universal Product Code (UPC)?
A) It is printed on the side or bottom of all non-perishable items sold in grocery stores and other
mass-merchandising outlets.
B) It supplies information about the type of item.
C) It identifies the manufacturer of the product.
D) It is read by an electronic scanner.
E) Retailers use information from UPC bars to track sales and control inventory.
Answer: A
Diff: 3
98) Firms interested in using socially responsible packaging that is less harmful to the
environment are developing ________.
A) aesthetic packaging
B) sustainable packaging
C) ingredient packaging
D) venture packaging
E) copycat packaging
Answer: B
Diff: 2
99) Using the strategy of ________, a marketer designs a package that closely resembles the look
of the national branded product with which it is competing.
A) aesthetic packaging
B) sustainable packaging
C) ingredient packaging
D) venture packaging
E) copycat packaging
Answer: E
Diff: 2
25
100) Which of the following controls package communications and labeling in the United States?
A) the Food and Drug Administration (FDA)
B) the Nutrition Labeling and Education Act
C) the Nutrition Facts Panel
D) the Federal Fair Packaging and Labeling Act
E) the Consumer Bill of Rights
Answer: D
Diff: 3
101) Which of the following is NOT required by the U.S. Food and Drug Administration (FDA)
on the labels of most foods sold in the United States?
A) amount of saturated fat in the product
B) sources of all ingredients in the product
C) amount of cholesterol in the product
D) number of calories in the product
E) amount of protein in the product
Answer: B
Diff: 3
102) Which of the following would be information included in a UPC code?

A) the customer's contact information
B) the ingredients of the product
C) the manufacturer of the product
D) the retailer of the product
E) the expiration date of the product
Answer: C
Diff: 2
103) Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even
though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand ________.
A) extension
B) equity
C) service
D) valuation
E) specialization
Answer: B
Diff: 2
104) Oreos and Coke are both examples of ________.
26
A) store brands
B) cobrands
C) private-label brands
D) national brands
E) ingredient brands
Answer: D
Diff: 2
105) Arm & Hammer began as a producer of baking soda. Now the company manufactures
detergents, deodorants, and fabric softeners under the Arm & Hammer brand name. Arm &
Hammer uses a ________ strategy.
A) brand extension
B) product line contraction
C) downward line stretch
D) cannibalization
E) cobranding
Answer: A
Diff: 2
106) Kellogg's has marketed Special K cereal for a number of years to a loyal customer base. Its
introduction of a new cereal called Special K with Red Berries is an example of a(n) ________
strategy.
A) cannibalization
B) cobranding
C) brand extension
E) downward line stretch
Answer: C
Diff: 2
27
107) The J. M. Smuckers Company makes jams, jellies, fruit spreads, and ice cream toppings. All
of these products are sold using the Smuckers brand name. This company uses a(n) ________
strategy.
A) store brand
B) private-label brand
C) cobranding
E) family brand
Answer: E
Diff: 2
108) Disney allowed a paint manufacturer to produce paint using the Disney brand name for a
specific period of time. Disney paint is an example of ________.
A) licensing
B) cobranding
C) family branding
E) private-label branding
Answer: A
Diff: 2
109) Mattel teamed with Coca-Cola to market Soda Fountain Sweetheart Barbie. This is an
example of ________.
A) generic branding
B) family branding
C) franchising
D) cobranding
E) ingredient branding
Answer: D
Diff: 2
28
110) Which of the following is an advantage offered by cobranding?
A) Manufacturers do not have to invest in creating their own brand names.
B) Retailers have exclusive products that cannot be purchased from competitors.
C) Advertising, sales, promotion, and marketing can be managed independently.
D) Brand equity is stabilized.
E) A company can expand its existing brand into a category it otherwise might have difficulty
entering alone.
Answer: E
Diff: 3
111) Existing brand equity can hamper the success of a brand extension strategy.
Answer: FALSE
Diff: 2
112) Discount retailers such as Walmart do not sell private-label brands.

Answer: FALSE
Diff: 2
113) Packaging plays an important role in communicating brand personality.

Answer: TRUE
Diff: 2
114) Marketers should consider the packaging of other brands within the category when
designing their brand's packaging.
Answer: TRUE
Diff: 2
115) The UPC is a global system of product identification.

Answer: FALSE
Diff: 3
116) The Food and Drug Administration (FDA) controls all package communications and
labeling in the United States.
Answer: FALSE
Diff: 2
29
117) The Food and Drug Administration (FDA) requires most food labels in the United States to
state how much fat, cholesterol, and protein are in each serving of the product.
Answer: TRUE
Diff: 2
118) Marketers want to increase brand dilution, which refers to the spread of interest in and
knowledge about a brand among target consumers.
Answer: FALSE
Diff: 2
119) The Clorox Company marketed a new product called Clorox Oxygen Action multipurpose
stain reliever. This is an example of a brand extension.
Answer: TRUE
Diff: 2
120) Heinz and Jack Daniels worked together to produce Jack Daniels grilling sauce. This is an
example of cobranding.
Answer: TRUE
Diff: 2
121) Discuss the concept of escalating levels of commitment to a brand. How do consumers
progress in loyalty to a brand?
Answer: At the lowest level, consumers really have no loyalty to a brand and will switch brands
for any reason. Moving up, though, consumers look at brand performance and imagery, focusing
on what it does for them. The next level is more emotional, with consumers forming beliefs
about the brand and having emotional reactions to it. The highest level of brand loyalty occurs
when consumers bond with the brand and feel they have a real relationship with it. This
relationship may be based on one of many different kinds of attachment, such as self-concept,
nostalgia, interdependence, or even love.
Diff: 2
30
122) As a retailer, why might you increase the number of private-label brands you sell?
Answer: Private-label or store brands are the retailer's exclusive trade name. Retailers choose a
private-label branding strategy because they generally make more profit on store brands than on
national or manufacturer brands. Private-label branding is also important when retailers seek to
maintain a consistent store image and build brand equity that belongs to their store rather than a
manufacturer.
Diff: 2
123) What is ingredient branding? Why would manufacturers want to engage in ingredient
branding?
Answer: Ingredient branding is a form of cobranding in which branded materials are used as
ingredients or component parts of other branded products. The practice of ingredient branding
has two primary benefits. First, it attracts customers to the host brand because the ingredient
brand is familiar and has a strong brand reputation for quality. Second, the ingredient brand's
firm can sell more of its product, not to mention the additional revenues it gets from the licensing
agreement.
Diff: 2
124) How can a marketer use a package to communicate with consumers?

Answer: A marketer can use a package to communicate brand personality through effective use
of colors, words, shapes, and images. In addition to brand identity, the package can provide facts
and important consumer tips, as well as warranty information and ways to contact the company.
The choice of packaging can make an aesthetic statement about the brand or convey a brand's
commitment to social responsibility. For instance, many brands are now marketed in green
packaging that is less harmful to the environment than other materials.
Diff: 2
125) Briefly explain the history of regulations concerning packaging and labels.
Answer: The Fair Packaging and Labeling Act of 1966 controls package communications and
labeling. The law aims to make labels provide information that is useful to consumers. The
Nutritional Labeling and Education Act of 1990 requires sellers to provide detailed nutritional
information on food products. In addition, the Food and Drug Administration requires labels to
provide information about calories, fat, carbohydrates, protein, and vitamin content.
Diff: 3
31
126) What are the four "easy" tests brand designers use in selecting a good brand name? Choose
a brand and explain how it passes these tests.
Answer: The four "easy" tests brand designers use to judge a brand name are whether the name
is easy to say, easy to spell, easy to read, and easy to remember. Specific brand answers will vary.
Diff: 3
127) How is it possible for a company in the United States to have protection for a brand even if
it has not legally registered it?
Answer: In the United States, common-law protection exists if the firm has used the name and
established it over a period of time.
Diff: 3
128) Panasonic markets a line of digital cameras that use Leica lenses. Leica lenses are legendary
for their superb image quality. Panasonic is known for its consumer electronics. What marketing
strategy are Panasonic and Leica implementing? Support your answer.
Answer: Panasonic and Leica are implementing cobranding. Cobranding benefits both partners
when the combination of the two brands provides more customer recognition power than either
brand on its own.
Diff: 2
129) Why might a firm want to use sustainable packaging? Describe one type of sustainable
packaging in your answer.
Answer: A firm might want to use sustainable packaging, such as using recycled materials to
produce the package, to reduce the environmental impact of the package. The firm can show
customers its commitment to act in a socially responsible manner through its packaging choices.
Diff: 2
130) Briefly explain what the U.S. Food and Drug Administration (FDA) requires on food labels
and why.
Answer: The FDA requires marketers to provide a great deal of information on food labels,
including the amount of fat, saturated fat, calories, cholesterol, carbohydrates, protein, vitamins,
and trans fat. These regulations are designed to force firms to be accurate in describing their
products so that consumers can know exactly what they are buying.
Diff: 3
32
131) In small firms, the marketing function is usually handled by a ________ who is responsible
for new-product planning, advertising, working with the company's sales representatives, and
marketing research.
A) single marketing manager
B) brand manager
C) product category manager
D) market manager
E) venture team manager
Answer: A
Diff: 2
LO: 9.4: Describe how marketers structure organizations for new and existing product
management
132) ________ are responsible for the positioning of a brand and developing its brand equity.
They are likely to team with sales, finance, and logistics staff members as part of customer
business teams who work with major retail accounts.
A) Product category managers
B) Brand managers
C) Venture team managers
D) Market managers
E) Sales managers
Answer: B
Diff: 2
management
133) Which of the following is a disadvantage of the brand management system?

A) a tendency to avoid price differentiation
B) too much focus on the supplementary and complementary roles of all product lines
C) a tendency to overemphasize short-term gains in sales
D) an interdependent structure that can undermine personal responsibility
E) too much focus on establishing brand equity
Answer: C
Diff: 3
management
33
134) Which of the following is true about a brand manager and a product category manager?
A) They are two titles for the same job.
B) They have the same functional responsibilities.
C) They probably work for large firms.
D) They are mainly responsible for financial decisions.
E) They do not consider new product lines.
Answer: C
Diff: 2
management
135) Which of the following accurately describes a product category manager?

A) A product category manager works for a company that relies solely on individual branding.
B) A product category manager is responsible for moving a company's product mix from generic
to branded.
C) A product category manager coordinates the development of brand equity for a specific brand
name.
D) A product category manager is also called a sales manager.
E) A product category manager coordinates the mix of product lines within a general product
category and is responsible for the addition of new product lines.
Answer: E
Diff: 2
management
136) Within the market manager structure, managers focus on ________.

A) specific customer groups rather than specific products
B) specific products rather than specific customer groups
C) one or two specific brands
D) all company brands and all company customers
E) new product development and marketing
Answer: A
Diff: 2
management
137) Which of the following is most useful when a firm offers a variety of products that serve the
needs of a wide range of customers?
A) the single marketing manager structure
B) the independent brand manager structure
C) the sales manager structure
D) the product category manager structure
E) the market manager structure
Answer: E
Diff: 3
management
34
138) When large companies undertake new-product development, they typically enlist specialists
in different areas to create a ________ within the organization.
A) focus group
B) product category team
C) sales team
D) venture team
E) cross-functional brand team
Answer: D
Diff: 2
management
139) Venture teams focus exclusively on which of the following?

A) products in the maturity stage of the product life cycle
B) products in the growth stage of the product life cycle
C) relationships with large, important customers
D) the development of a new product
E) the promotional plan for a new product
Answer: D
Diff: 1
management
140) The term skunk works is associated with which of the following?
A) total quality management (TQM)
B) Six Sigma
C) product category teams
D) cross-functional teams
E) venture teams
Answer: E
Diff: 2
management
35
141) A firm's skunk works department would most likely be located ________.
A) in a central part of the firm's main office building
B) in the most productive section of the company
C) away from the firm's traditional offices
D) at the headquarters of the firm's largest customer
E) as close as possible to the firm's communication specialists
Answer: C
Diff: 2
management
142) General Foods produces many different brands of coffee, including Brim, Maxim, Maxwell
House, International Coffees, Sanka, and Yuban. Each brand is likely to have its own ________.
A) venture team
B) market manager
C) product category manager
D) communication manager
E) brand manager
Answer: E
Diff: 2
management
143) Kodak markets cameras, film, X-ray film and equipment, printers, printer accessories,
motion picture film, and touch screen sensors. Kodak is likely to have ________ who coordinate
the mix of the product lines.
A) brand managers
B) product category managers
C) venture teams
D) communication teams
E) market managers
Answer: B
Diff: 2
management
36
144) Colgate-Palmolive replaced its brand management structure with a product category
management structure. A manager who had once managed Colgate toothpaste now manages all
of the company's dental products. Under Colgate's new system, a product category manager
would have ________.
A) profit and loss responsibility for all dental products
B) completely different duties than the brand manager had
C) less direct authority to achieve goals
D) no authority over functions, other than marketing, that affect dental products
E) no authority over international dental product sales
Answer: A
Diff: 3
management
145) A manufacturer of acrylic, latex, and nitrile gloves sells to medical laboratories, factories
where employees handle chemicals, companies that manufacture micro-tech equipment, and
cleaning services. The company is organized to better satisfy the specific needs of each of its
four target markets, so it uses a ________ structure.
A) product category
B) market manager
C) brand manager
D) venture team
E) family brand
Answer: B
Diff: 2
management
146) The effectiveness of product strategies depends on the managers who carry them out.
Answer: TRUE
Diff: 2
management
147) Depending upon the organization, product management may include brand managers,
product category managers, and market managers.
Answer: TRUE
Diff: 2
management
37
148) A venture team is typically composed of a brand manager, product category manager, and
market manager.
Answer: FALSE
Diff: 2
management
149) Brand managers may push too hard with coupons or other price incentives to the point that
customers will refuse to buy the product without these promotions.
Answer: TRUE
Diff: 2
management
150) Long-term profitability will not be affected if the brand managers offer an excess of
coupons or cents-off packages to customers.
Answer: FALSE
Diff: 2
management
151) The market manager structure would probably not be useful when firms offer a variety of
products that serve the needs of a wide range of customers.
Answer: FALSE
Diff: 2
management
152) A brand manager serves essentially the same function as a product category manager.
Answer: FALSE
Diff: 2
management
38
153) How does a product category manager differ from a market manager?
Answer: The focus of each position is different. A product category manager is responsible for
developing and implementing the marketing plan for all of the brands and products within a
product category. A market manager is responsible for developing and implementing the
marketing plans for all products sold to a particular customer group. A product category manager
will have more expertise in a particular product line, while a market manager will have more
expertise in serving a particular market segment.
Diff: 2
management
154) What are some of the potential responsibilities of brand managers employed at P&G?
Answer: Procter & Gamble brand managers operate like internal consultants to cross-functional
teams. They are responsible for positioning brands and developing brand equity. They are likely
to work with sales and finance as well as logistic staff members as a part of cross-functional
teams.
Diff: 2
management
155) Explain the potential problems associated with the brand management system.
Answer: Because brand managers within one firm may be in competition against each other,
they may push too hard for short-term sales with coupons and other sales promotions for their
own brand that damage other brands and, in the long run, hurt brand equity.
Diff: 3
management
39

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Marketing: Real People, Real Choices, 9e (Solomon/Marshall/Stuart)

Chapter 9 Product II: Product Strategy, Branding, and Product Management

1) Which of the following is an accurate statement about product management?

3) Which of the following is NOT necessary for a product-related objective to be effective?

8) Which of the following is NOT an option for extending a product line?

12) A focus on serving internal customers is part of ________.

46) Identify four different possible meanings of product quality.

52) The final stage in the product life cycle is ________.

71) The triangular red Nabisco logo is an example of a ________.

79) Which of the following most accurately describes a brand extension?

81) A family brand strategy is also called a(n) ________ strategy.

86) Which of the following is essentially no branding at all?

102) Which of the following would be information included in a UPC code?

104) Oreos and Coke are both examples of ________.

112) Discount retailers such as Walmart do not sell private-label brands.

113) Packaging plays an important role in communicating brand personality.

115) The UPC is a global system of product identification.

124) How can a marketer use a package to communicate with consumers?

133) Which of the following is a disadvantage of the brand management system?

135) Which of the following accurately describes a product category manager?

136) Within the market manager structure, managers focus on ________.

139) Venture teams focus exclusively on which of the following?

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