ch12 setting product strategy go

TOP 10 Learning Questions for

Setting Product Strategy 12

Adventurer Alex Go12.16.11

1. In the 5 product levels of customer-value hierarchy, where does the service “inspection” belong?

A. Core BenefitB. Basic ProductC. Expected ProductD. Augmented ProductE. Potential Product

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Customer-Value Heirarchy

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Inspection is the basic product offering which provides quality/ safety as its core benefits

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Levels Definition

Core Benefit Service or benefit the customer is really buying

Basic Product Turn the benefit to an actual product

Expected Product Set of attributes and conditions buyers normally expect upon purchase

Augmented Product

Exceeding the customer expectations

Potential Product All possible transformations the offering might undergo in the future

1. In the 5 product levels of customer-value hierarchy, where does the service “inspection” belong?

A. Core BenefitB. Basic ProductC. Expected ProductD. Augmented ProductE. Potential Product

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2. An example of durable goods is ____.

A. WineB. PrinterC. Tortilla ChipsD. TissueE. Ink Cartridge

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Product classifications are essential in identifying appropriate marketing mix strategies

Accdg. to durability and tangibility, products can be classified into 3 types:

1. Non-durable goods – tangible, one of few uses

2. Durable goods – tangible, many uses3. Services - intangible

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Durable goods are those that normally survive many uses

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Some examples are: electronic gadgets, printers & cars.

2. An example of durable goods is ____.

A. WineB. PrinterC. Tortilla ChipsD. TissueE. Ink Cartridge

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3. It is the total features that affect how a product looks, feels, and functions in terms of customer req’ts.

A. FormB. StyleC. DesignD. CustomizationE. None of the above

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There are several ways that a product can differentiate itself from the competition

Form, Style, Design & Customization are some of the product aspects marketers use to stand out.

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Only design covers the totality of the product features

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• Form• Style• Customizatio

n

• Design

Either specific to shape, size, look & feel, custom made

Total features

3. It is the total features that affect how a product looks, feels, and functions in terms of customer req’ts.

A. FormB. StyleC. DesignD. CustomizationE. None of the above

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4. Convenience, shopping and specialty products are examples of product categories. What is another name for this?

A. Product FamilyB. Product ClassC. Product LineD. Product TypeE. None of the above

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The Product Hierarchy

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Product class

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-is a group of products within the product family recognized as having a certain functional coherence. It’s also known as product category.

4. Convenience, shopping and specialty products are examples of product categories. What is another name for this?

A. Product FamilyB. Product ClassC. Product LineD. Product TypeE. None of the above

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5. Which of the following is true for product mix?

A. Width refers to how closely related the various product lines are

B. Consistency refers to how many variants are offered of each product in the line

C. Depth refers to how many different product lines the company carries

D. None of the above

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A product mix has certain width, length, depth and consistency.

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None was correct. Right definitions are linked below.

Width

Consistency

Depth

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refers to how closely related the various product lines are

refers to how many variants are offered of each product in the line

refers to how many different product lines the company carries

5. Which of the following is true for product mix?

A. Width refers to the total number of items in a mix

B. Consistency refers to how many variants are offered of each product in the line

C. Depth refers to how many different product lines the company carries

D. None of the above

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6. What type of co-branding example is Cebu Pacific Citibank Credit Card?

A. Same-company co-brandingB. Joint-venture co-brandingC. Multiple-sponsor co-brandingD. Retail co-branding

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Co-branding is the combination of two or more brands into a joint product

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Citibank & Cebu Pacific are two separate entities.

Thus they are considered joint venture co-branding

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6. What type of co-branding example is Cebu Pacific Citibank Credit Card?

A. Same-company co-brandingB. Joint-venture co-brandingC. Multiple-sponsor co-brandingD. Retail co-branding

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7. Which of the following are not essential for product packaging?

A. Convey descriptive and persuasive information

B. Identify the brandC. Display product imageD. Assist at-home storage

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Packaging is all activities of designing and producing the container for a product

Packaging must achieve 5 objectivesA. Convey descriptive and persuasive

informationB. Identify the brandC. Assist at-home storageD. Facilitate product transportation and

protectionE. Aid product consumption

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Product content photo is not necessary.

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7. Which of the following are not essential for product packaging?

A. Convey descriptive and persuasive information

B. Identify the brandC. Display product photoD. Assist at-home storage

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8. ______ is a measure of the ease of fixing a product when it malfunctions or fails

A. DurabilityB. Conformance QualityC. ReliabilityD. Repairability

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Marketers may differentiate their product on the following:

A. Durability – measure of the product’s expected operating life

B. Conformance Quality- degree to which all units are identical and meet the specifications

C. Reliability- measure that a product will not malfunction

D. Repairability- measure of the ease of fixing a product when it malfunctions or fails

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Repairability = fixing

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8. ______ is a measure of the ease of fixing a product when it malfunctions or fails

A. DurabilityB. Conformance QualityC. ReliabilityD. Repairability

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9. Which of the following statements are incorrect?

A. The broad definition of a product includes events, places and services.

B. Elevators are considered capital itemsC. Absolut Vodka is highly differentiate by

styleD. Free Iphone 4s with a Globe plan of

8,000 is an example of two-part pricing

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In the chapter 12, several topics were covered under product strategy

A. Products was broadly defined as anything offered to a market to satisfy a need/ want. (services, events, persons, ideas)

B. Capital items are long lasting goods. It has 2 groups: equipments and installations (where elevators belong)

C. Style describes the look and feel of the product to the buyer. Absolut achieve this in its ads.

D. Two part pricing consist of a fixed fee plus a variable usage fee

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Letter D is considered captive product pricing

Captive-product pricing provides a low mark-up is set for the companion main product with a high mark-up for the supplies.

The plan is considered as the companion of the product (cellphone)

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9. Which of the following statements are incorrect?

A. The broad definition of a product includes events, places and services.

B. Elevators are considered capital itemsC. Absolut Vodka is highly differentiate by

styleD. Free Iphone 4s with a Globe plan of

8,000 is an example of two-part pricing

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10. The leading apparel brand, Bench, recently created high end stores and hired international stars as their endorsers. What type of line stretching is this called?

A. Down-Market StretchingB. Up-Market StretchingC. Two way StretchingD. Down-Line Stretching

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Line stretching occurs when a company lengthens its product line beyond its current range.

There are 3 types: Down-Market Stretching- introducing

lower-priced line Up-Market Stretching- entering the

high end of the market Two way Stretching – expansion on

both areas

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Since they are targeting the high end market, Bench is doing an up-market stretch

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10. The leading apparel brand, Bench, recently created high end stores and hired international stars as their endorsers. What type of line stretching is this called?

A. Down-Market StretchingB. Up-Market StretchingC. Two way StretchingD. Down-Line Stretching

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TOP 10 Learning Questions for

Setting Product Strategy 12

Adventurer Alex Go12.16.11


ch12 setting product strategy go

Business

product mix

joint product http

product class http

product hierarchy http

product classifications

product category

product levels of customer

different product lines