Click on the box next to each answer. Keep track of your own score.

1. A "product offering" consists of the core product and:
   • A. the augmented product. MAYBE Some textbooks say another answer, but this is a term   that some marketers use.  See all other answers.
   • B. the extended product. MAYBE Some textbooks say another answer, but this is a term   that some marketers use.  See all other answers.
   • C. supplemental products and symbolic/experiential attributes. MAYBE Some textbooks say another answer, but this is a term   that some marketers use.  See all other answers.
   • D. all of the above. CORRECT Whatever answer above a particular textbook might say is   the correct answer, the idea is that people buy   more than just the core product; they buy the   ministrations of a salesperson, the seller's   reputation for post-sale servicing, etc.
2. Adding a brand name to a basic physical product can imply
   • A. an overpriced product.                                          INCORRECT Lousy guess!
   • B. value added benefits. CORRECT The reputation associated with the brand name becomes  associated with the product that bears the brand  name. This adds value to the physical thing.
   • C. government approval. INCORRECT So what if somebody registered a brand name.
   • D. nothing - it's just a name. INCORRECT Yikes! You chose this by accident, right?                      
3. Customers buy products for:
   • A. the cost savings that a product provides over competition. INCORRECT So explain why people buy Rolex watches. Try answer D.
   • B. the attributes of the product. INCORRECT Close, but no cigar given other options.
   • C. the benefits that the product features provide. CORRECT Neither final consumers nor organizations buy products  for the sake of the product or even for the sake  of specific attributes. They buy products because  there is a need that is being filled by a bundle  of benefits. These benefits are provided by the  various attributes that are designed into the  product; deciding what attributes belong in a  product, however, starts with assessing the needs  of potential buyers and figuring out what  attributes provide benefits to meet those needs.
   • D. to feel good about themselves. INCORRECT Perhaps a Rolex watch makes some folks feel successful,  but that isn't why a jewelry retailer would buy one.  Try answer A.
4. Joe is a life insurance agent for Podunk Mutual.  A client suggests that Sally would be a good prospect for insurance, so Joe calls Sally.  After a few meetings, Sally agrees that this is a good product for estate planning and purchases a whole life policy.  In this situation, life insurance would be classified as a(n)
   • A. specialty product INCORRECT Although life insurance is not the sort of product that   we would expect to find for sale at a common   retailer such as Wal*Mart, and while it is sold   in a specialized, there is another classification   that we generally tie to this kind of insurance   product.
   • B. unsought product CORRECT Life insurance is something that people don't typically   think about and something that most people don't   understand very well.  An agent for a life   insurance company probably wouldn't sell much   while waiting for prospective buyers to call;   he or she must be much more proactive in   promotion activities.
5. A group of closely related product items is known as:
   • A. a product portfolio. INCORRECT  
   • B. a brand. INCORRECT  
   • C. a product line. CORRECT  
   • D. consumer products. INCORRECT  
6. Procter & Gamble has only one brand in its line of batteries, but has many brands in its line of laundry detergents (Tide, Cheer, Bounce, Gain, and many others).  We would describe the laundry detergent line to be:
   • A. deep. CORRECT "Depth" is a term used to describe the number   of products or brands that P&G has within a   product line.
   • B. wide. INCORRECT Product mix width has to do with the number of product   lines that P&G has.
7. McDonald's golden arches, Nike's swoosh, and Prudential's rock are examples of:
   • A. product lines. INCORRECT Each of brands might be associated with particular   lines, but the arches, swoosh, and rock are   not product lines themselves.
   • B. private labels. INCORRECT the term  private label  is used in the context   of retailers who sell branded products.
   • C. brand names. INCORRECT The brand name has to do with the spoken part, not the   symbol that represents the brand.
   • D. brand marks. CORRECT These are graphic symbols are meant to convey an image   that the brand represents.
8. Wal*Mart sells both Purina and its own Ol' Roy brand of dog food, the latter being sold exclusively at Wal*Mart stores.  In this example, Ol Roy is a:
   • A. manufacturer brand. INCORRECT Store brands are often made by well-known manufacturers,   but the issue here is the brand name, not the   origin of manufacture.  Note that another   term for manufacturer brand is national brand.
   • B. private label brand. CORRECT The private label or store brand is often identical to   a manufacturer's brand except for the packaging   (although not necessarily identical).
   • C. cobrand. INCORRECT Cobranding has to do with a strategy that uses two brands.  
   • D. generic brand. INCORRECT We tend to associate this term with packaging that only   identifies the product category or uses a brand   name that is not well known and not associated   with any particular manufacturer or retailer.  
9. Coke and Pepsi are:
   • A. co-brands. INCORRECT  
   • B. private labels. INCORRECT  
   • C. national brands. CORRECT  
   • D. brand extensions. INCORRECT  
10. John Cole has found a formula that, in taste tests, cannot be distinguished from that of Coca Cola.  That is, people can't tell the difference between Cole's Cola and Coca Cola without seeing the brand name on the label.  John knows, however, that he could never command the same price for Cole's Cola.  The higher price that Coca Cola is able to command in the market place is known as:
    • A. national branding. INCORRECT Coca Cola might be classified as a national or   manufacturer's brand, but that is not the issue here.
    • B. brand equity. CORRECT The difference between the value of the known brand vs.   the unknown brand is equity.  A brand name   can have enough value that it can be sold for   millions of dollars for the name alone and can   be maintained on the books as an asset,
    • C. a brand extension. INCORRECT This has nothing to do with this example, although the   notion of brand extension is fair game for an exam.
    • D. a differentiation strategy. INCORRECT Differentiation has nothing to do with this example.
11. Dell computers carry the names of three brands on the cover: Dell, Intel, and Microsoft.  This illustrates the use of:
    • A. product line extension. INCORRECT Extension has to do with using a successful brand name   in the launch of additional or new products.
    • B. brand equity. INCORRECT Brand equity has to do with the additional value that a   brand name brings to the product.  Although   these additional brand names probably do bring   additional value to the product, another answer   is a better answer for this example.
    • C. cobranding. CORRECT Dell is creating an image of quality in its association   with these other brands, but is also providing   promotion for these other brands.  This   is an alliance that is for the good of all three   brands.
    • D. a product portfolio. INCORRECT Product portfolio has to do with an organization's   product mix, or the lines of products that it has.
12. If you are dissatisfied with the current position of a brand, you probably should:
    • A. attempt to reposition the brand. CORRECT  
    • B. create a brand extension. INCORRECT  
    • C. co-brand the product. INCORRECT  
    • D. divest of the product line. INCORRECT  
13. In the maturity state of the classic product life cycle curve, total industry sales are generally:
    • A. growing INCORRECT  
    • B. flat CORRECT  
    • C. declining INCORRECT  
14. In the maturity state of the classic product life cycle curve, total industry profits are generally:
    • A. increasing INCORRECT As a generalization, we would expect profits for an   industry as a whole to be growing during the   growth stage. By the time the industry reaches   maturity, we typically expect fewer competitors   but a great deal of competition among those who   remain. This drives down prices and profits.   Check Answer B for a more complete explanation.
    • B. flat INCORRECT Read Answer A and then return to see the rest of the   explanation here on Answer B. While competition   typically drives down prices and profits for an   industry in the mature stage, the competitor who   has relatively high market share is likely to have   higher profits than other competitors. Profits   can be way down for some, while the largest   competitors can enjoy higher profits with   relatively little threat from smaller competitors.
    • C. declining CORRECT Read answer A for more explanation. A strategy is to   invest capital into building market share during   the growth stage; the smaller competitors at the   maturity stage find it costly to compete, leaving   the larger competitors to enjoy reasonable profits.
15. easyJet.com developed an excellent reputation for low-cost air travel in Europe.  After getting into the rental car business, the company gave this business the easyRentacar.com brand, attempting to leverage the "easy" brand.  This tactic of choosing the easyRentacar.com brand name is known as:
    • A. corporate branding. INCORRECT  
    • B. corporate parent brand. INCORRECT  
    • C. a brand extension. CORRECT  
    • D. co-branding. INCORRECT  
16. For the Toyota Corolla model of car, "Toyota" is:
    • A. a co-brand. INCORRECT  
    • B. a corporate parent brand. CORRECT  
    • C. brand equity. INCORRECT  
    • D. a global brand. INCORRECT  
17. A known brand often conveys an aura of high quality.  This creates:
    • A. generics. INCORRECT  
    • B. a distinct product brand. INCORRECT  
    • C. a brand extension. INCORRECT  
    • D. brand equity. CORRECT  
18. Sam's Choice is a brand created by Cott Beverages specifically for Wal*Mart.  Sam's Choice is a(n):
    • A. national brand. INCORRECT  
    • B. value brand. CORRECT  
    • C. private label. CORRECT  
    • D. generic. INCORRECT  
19. Computers are often sold with a sticker on the case which says "Intel Inside".  This marketing strategy is a classic example of:
    • A. brand extensions. INCORRECT  
    • B. co-branding. CORRECT  
    • C. private labels. INCORRECT  
    • D. global marketing. INCORRECT  
20. People perceive Mastercard to have higher fees than the Discover credit card.  This illustrates a difference in:
    • A. brand loyalty. INCORRECT  
    • B. brand personality. INCORRECT  
    • C. brand awareness. INCORRECT  
    • D. positioning. CORRECT  
21. When a new Starbucks was built near an existing McDonald's, sales at McDonald's went down.  True or false: This is an example of cannibalization.
    • A. True. INCORRECT  
    • B. False. CORRECT  
    • C. Either could be true. INCORRECT  
    • D. Not enough information is given to decide. INCORRECT  
22. Product "quality" has to do with:
    • A. the degree of superiority of a firm's products. INCORRECT This is a lousy definition because it doesn't define  what is meant by "superiority."
    • B. conformance to the customer's expectations. CORRECT If a customer wants a particular shade of red, adding   more pigment doesn't create better quality; it   just creates the wrong color.  Adding a more   expensive kind of pigment doesn't create better   quality; it just creates the wrong color.    Quality can also have to do with issues of   consistency.