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(Download PDF) Marketing 3rd Edition Elliott Solutions Manual Full Chapter
(Download PDF) Marketing 3rd Edition Elliott Solutions Manual Full Chapter
Manual
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Testbank
to accompany
Prepared by
Sandra Smith
The University of Auckland
Chapter 7:
Product
a. A service is a product.
b. A physical good is a product.
*c. A service usually involves transfer of ownership.
d. A physical good is tangible; a service is intangible.
e. None of the options listed.
General Feedback:
Chapter 7 page 221, Learning Objective 1, Factual. A service is an intangible offering that does not
involve ownership.
General Feedback:
Chapter 7 page 215, Learning Objective 1, Factual. A product is a good, service or idea offered to the
market for exchange.
3. Qantas is a service provider, transporting customers from one destination point to another. During
their flights they also sell Qantas merchandise such as miniature aeroplanes. Thinking about goods and
services, which of the following statements is incorrect?
a. A service is a product.
b. A physical good is a product.
*c. A service usually involves transfer of ownership.
d. A physical good is tangible, a service is intangible.
e. None of the options listed.
General Feedback:
© John Wiley & Sons Australia, Ltd 2015
2
Chapter 7: Product
Chapter 7 page 221, Learning Objective 1, Applied. A service is an intangible offering that does not
involve ownership.
4. The total product concept broadly describes a product as a bundle of attributes, creating value for the
customer. Specifically, a product can be defined as the core product, expected product, ____________
product and ____________ product.
a. associated, final
*b. augmented, potential
c. augmented, serviced
d. associated, finished
General Feedback:
Chapter 7 page 216, Learning Objective 1, Factual. Total product concept is a view of the product that
describes the core product, expected product, augmented product and potential product in order to
analyse how the product creates value for the customer.
5. Capilano Honey differentiates its product from competing products using packaging; a fundamental
characteristic. This approach could be best described as differentiating at which level of the total product
concept?
a. Core product.
*b. Expected product.
c. Augmented product.
d. Potential product.
e. Actual product.
General Feedback:
Chapter 7 page 222-223, Learning Objective 1, Applied. The expected product describes those attributes
that actually deliver the benefit that forms the core product. Marketers generally try to differentiate their
offering using fundamental characteristics such as branding, packaging and quality standards at the
expected product level (see figure 7.2).
6. A clothing company manufactures a range of underwear, singlets, socks and t-shirts for both men and
women. This range is known as the company's:
a. product capacity.
b. product item.
c. product line.
*d. product mix.
General Feedback:
Chapter 7 page 218, Learning Objective 1, Applied. A product mix is the set of all products that an
organisation makes available to customers.
© John Wiley & Sons Australia, Ltd 2015
3
Testbank to accompany: Marketing 3e by Elliott et al.
7. As the marketing manager for Samsung, you realise the need to differentiate your range of smart
phones in the minds of your consumers. All mobile phones these days make phone calls and connect to
the internet; so at which product level are you most likely to be able to differentiate your phones from
your competitors' offerings?
a. Core.
b. Expected.
*c. Augmented.
d. None of the options listed.
e. Both a and b.
General Feedback:
Chapter 7 page 222-223, Learning Objective 1, Applied. At the augmented product level, the product
delivers a bundle of benefits that the buyer may not require as part of the basic fulfilment of their needs.
The augmented product level enables marketers to significantly differentiate their offerings from those
of competitors (see figure 7.1).
8. A dairy company manufactures a range of flavoured skim milks. This range is known as the
company's:
a. product capacity.
b. product item.
*c. product line.
d. product mix.
General Feedback:
Chapter 7 page 218, Learning Objective 1, Applied. A product line is a set of product items related by
characteristics such as end use, target market, technology or raw materials.
a. Core.
b. Expected.
*c. Augmented.
d. None of the options listed.
e. Both a and b.
General Feedback:
Chapter 7 page 222-223, Learning Objective 1, Factual. At the augmented product level, the product
delivers a bundle of benefits that the buyer may not require as part of the basic fulfilment of their needs.
The augmented product level enables marketers to significantly differentiate their offerings from those
of competitors (see figure 7.1).
10. Stable products, impulse products and emergency products are all examples of:
General Feedback:
Chapter 7 page 219, Learning Objective 1, Factual. Convenience products, also known as fast-moving
consumer goods, are inexpensive, frequently purchased consumer products that are bought with little
engagement in the decision-making process.
11. In Australia, Toyota has begun offering fixed price servicing on new cars for the first 3 years. This
approach could be best described as differentiating at which level of the total product concept?
a. Core product.
b. Expected product.
*c. Augmented product.
d. Potential product.
e. Actual product.
General Feedback:
Chapter 7 page 222-223, Learning Objective 1, Applied. At the augmented product level, the product
delivers a bundle of benefits that the buyer may not require as part of the basic fulfilment of their needs.
This can include support services, such as guarantees (see figure 7.2).
12. The product life cycle has five stages: 1. ____________, 2. introduction, 3. growth, 4.
____________, 5. decline.
General Feedback:
Chapter 7 page 223, Learning Objective 2, Factual. The product life cycle has five stages: 1. new
product development, 2. introduction, 3. growth, 4. maturity, 5. decline.
*a. A product can be a consumer product or a business-to-business product, but not both.
b. A product mix is all of the products an organisation makes available to customers.
c. Business-to-business products include products that organisations use in the production of other
products.
d. business-to-business products include products that organisations use in their daily operations.
e. None of the options listed.
General Feedback:
Chapter 7 page 224, Learning Objective 1, Factual. Some products are both a consumer and a business
product. Reflex photocopy paper, for example, can be purchased as a consumer product at a discount
store to be used for a home inkjet printer, or as a business product from a wholesaler by the pallet to be
used by an organisation's office printers and photocopiers.
14. Sales and profits of your company's product are falling. New products are entering the market and
there seems to be little interest in your current product. Which stage of the product life cycle has your
product now reached?
a. Maturity.
*b. Decline.
c. Growth.
d. Free fall.
General Feedback:
Page 223. Learning Objective 2. Applied. The product life cycle has five stages: 1. new product
development, 2. introduction, 3. growth, 4. maturity, 5. decline. The decline stage sees sales and profits
fall.
15. Bonds manufactures underwear, singlets, shorts, track suits, hoodies, socks and t-shirts for men,
women and children. Bonds men's underwear is an example of a:
a. product item.
*b. product line.
c. product mix.
d. specialty product.
e. staple product.
General Feedback:
Chapter 7 page 224, Learning Objective 1, Applied. A product line is a set of closely related product
items. The product line for Bonds men's underwear includes trunks, hipsters and boxers.
16. Which of the following describes the awareness stage of the product adoption process?
*a. The consumer knows little about the product, how it works or how it can benefit them.
b. The consumer seeks information to learn about the product.
c. The consumer decides whether or not they should try the product.
d. The consumer experiences interest in the product.
© John Wiley & Sons Australia, Ltd 2015
6
Chapter 7: Product
General Feedback:
Chapter 7 page 225, Learning Objective 2, Factual. Awareness is when the consumer becomes aware of
the new product, and is created by promotional activities, word-of-mouth, incidental exposure of the
product. At this stage the consumer knows little about the product, how it works or how it can benefit
them.
17. Big Australian retail outlets such as Kmart, Big W and Target stock a wide range of consumer
products. The consumer products stocked by these retailers can be best categorised as:
General Feedback:
Chapter 7 page 224, Learning Objective 1, Applied. Consumer products are those products purchased by
households and individuals for their own private consumption. Consumer products fall into one of the
following categories: convenience products, shopping products, specialty products, and unsought
products.
18. You are adventurous, interested in new technologies, and a risk taker. With regard to the diffusion of
innovations theory, you are a(n):
*a. innovator.
b. early adopter.
c. early majority.
d. laggard.
General Feedback:
Chapter 7 page 226, Learning Objective 2, Applied. Innovators are the first adopters of new products.
People in this group are usually adventurous, interested in new technology and ideas, and willing to take
risks.
19. David has decided to buy a new pair of work shoes, so he spends his afternoon shopping for a new
pair. When classifying products, the category of 'shopping products', which includes shoes, also includes:
a. impulse products.
b. staple products.
c. emergency products.
*d. none of the options listed.
e. both a and b.
General Feedback:
Chapter 7 page 224-225, Learning Objective 1, Applied. Shopping products are irregularly purchased
items that involve moderate to high engagement with the decision-making process: consumers will often
visit a number of stores, looking at the range and comparing items based on features, quality and price.
Examples of shopping products include electrical appliances, furniture, cameras and clothing.
20. In terms of the product, most of the differentiating features are part of the ____________ product
layer of the total product concept.
*a. augmented
b. core
c. expected
d. potential
General Feedback:
Chapter 7 page 229, Learning Objective 3, Factual. If customers perceive there to be a difference
between competing products, they will examine the specific product characteristics (as well as the other
elements of the marketing mix) to assist them in making the final purchase choice. In terms of the
product, most of the differentiating features are part of the augmented product layer of the total product
concept.
21. If a consumer is prepared to spend time comparing competing offerings before making a purchase
decision, the product is most likely to be a(n):
a. unsought product.
b. specialty product.
c. convenience product.
*d. shopping product.
e. core product.
General Feedback:
Chapter 7 page 224-225, Learning Objective 1, Factual. Shopping products are irregularly purchased
items that involve moderate to high engagement with the decision-making process: consumers will often
visit a number of stores, looking at the range and comparing items based on features, quality and price.
Shopping products exhibit the following characteristics: they are expected to last a long time, they are
purchased relatively infrequently, they are stocked by a small number of retail outlets, they sell in low
volumes, and they have reasonably large profit margins.
22. The creation of products and product attributes that distinguish one product from another is known
as:
General Feedback:
Chapter 7 page 229, Learning Objective 3, Factual. Product differentiation is the creation of products
and product attributes that distinguish one product from another.
23. For which of the following products is a consumer likely to purchase with little or no engagement in
the decision-making process?
a. Specialty.
b. Unsought.
c. Convenience.
d. Shopping.
*e. Both b and c.
General Feedback:
Chapter 7 page 224-226, Learning Objective 1, Factual. Convenience products (fast-moving consumer
goods) are inexpensive, frequently purchased consumer products that are bought with little engagement
in the decision-making process. Unsought products are those purchased to solve a sudden, unexpected
need and as such are usually also purchased with little or no engagement in the decision-making process.
An example of an unsought product might be the use of a mechanic to fix a car that has malfunctioned.
24. A collection of symbols such as a name, logo, slogan and design intended to create an image in the
customer's mind that differentiates a product from competitors' products is known as the:
a. brand image.
*b. brand.
c. trace mark.
d. brand name.
General Feedback:
Chapter 7 page 232, Learning Objective 4, Factual. A brand is a collection of symbols such as a name,
logo, slogan and design intended to create an image in the customer's mind that differentiates a product
from competitors' products.
a. impulse products.
b. staple products.
c. emergency products.
*d. none of the options listed.
e. both a and b.
General Feedback:
© John Wiley & Sons Australia, Ltd 2015
9
Testbank to accompany: Marketing 3e by Elliott et al.
Chapter 7 page 224-225, Learning Objective 1, Factual. Shopping products are irregularly purchased
items that involve moderate to high engagement with the decision-making process: consumers will often
visit a number of stores, looking at the range and comparing items based on features, quality and price.
Examples of shopping products include electrical appliances, furniture, cameras and clothing.
26. By legally registering "XXXX" with IP Australia, the brewing company gained legally enforceable
rights to the exclusive use of the name. Registration officially makes the name a:
a. brand.
b. brand name.
c. brand mark.
*d. trade mark.
General Feedback:
Page 232. Learning Objective 4. Factual. A trade mark is a brand name or brand mark that has been
legally registered so as to secure exclusive use of the brand.
27. John is responsible for all the business-to-business buying that his company does. It is a small
company but there is enough buying to keep John very busy. In his role as buyer, the products that John
buys may include:
General Feedback:
Chapter 7 page 226, Learning Objective 1, Applied. Business-to-business products include parts and
materials, equipment and services and supplies.
28. Brand assets (e.g. trademarks and patents), stock price analysis, replacement cost, brand attributes,
brand loyalty and willingness-to-pay analysis, are all metrics to measure:
a. product value.
b. brand loyalty.
*c. brand equity.
d. company value.
General Feedback:
Chapter 7 page 233, Learning Objective 4, Factual. To measure the value of brands is extremely useful
to organisations. Brand equity metrics include: brand assets (e.g. trademarks and patents), stock price
analysis, replacement cost, brand attributes, brand loyalty and willingness-to-pay analysis.
a. Products may be unprofitable in the introduction phase of the product life cycle.
*b. The stage that a product is at in the product life cycle depends solely on how long the product has
been in the market.
c. The new product development phase of the product life cycle can involve substantial costs for an
organisation.
d. In the maturity phase of the product life cycle, sales will most likely peak or start to fall.
e. None of the options listed.
General Feedback:
Chapter 7 page 228-229, Learning Objective 2, Factual. Products are not simply classified based on the
number of years they have been in the market. For example, despite being around for thousands of years,
bread would not be classed as being in the final stage of its life cycle. Rather, the stages in the product
life cycle reflect the product's current place in the market and its sales and profitability (see figure 7.3).
30. The Smith's snack food company has a number of brands in addition to Smith's in its product mix,
including Doritos, Twisties, Parker's, Nobby's, Red Rock Deli, Cheetos and Burger Rings, yet these are
all known by their individual brand and not by the parent company name of Smith's. The branding
approach that Smith's is taking is an example of:
a. co-branding.
b. brand extension.
c. family branding.
*d. individual branding.
General Feedback:
Chapter 7 page 234, Learning Objective 4, Applied. Smith's is taking an individual branding approach.
a. Once a product has reached the maturity phase of the product life cycle, it is not possible to move
back to the growth stage.
b. Promotional activities to build awareness of a product are most likely to be necessary in the
introduction phase of the product life cycle.
c. Both a and b.
d. Conducting focus groups and market research can be a crucial component in the new product
development phase.
*e. Both b and d.
General Feedback:
Chapter 7 page 228-229, Learning Objective 2, Factual. The introduction stage marks the first
appearance of the product in the marketplace. The market is likely to know little or nothing about the
product, and so the organisation must often make a considerable investment in promotional activities in
© John Wiley & Sons Australia, Ltd 2015
11
Testbank to accompany: Marketing 3e by Elliott et al.
order to build awareness of, and interest in, the product - and to trigger potential customers to evaluate,
trial and purchase the new product. Although research and development can be expensive, the
organisation should make the appropriate investment at the new product development stage. If the
organisation does not conduct focus groups and market research, it risks launching a poor or
unappealing product. In addition to failing to generate profits, such a product can damage the
organisation's reputation and brand.
32. Products that only indicate the product category, and do not promote a specific brand name are
known as:
General Feedback:
Chapter 7 page 235, Learning Objective 4, Factual. Generic brands are those products that only indicate
the product category. These products do not promote a specific brand name.
33. Which of the following should be a part of the new product development process?
General Feedback:
Chapter 7 page 229-231, Learning Objective 2, Factual. Once a prototype has been produced, the
product should be tested in a market setting. Test marketing activities enable a 'real world' assessment of
the entire marketing mix that supports the product. This is an important step before proceeding with full
commercialisation. It is better to work out any problems with the marketing mix in a smaller test market
than to need to take corrective action nationwide.
34. Recently, many major retailers such as David Jones have teamed up with financial institutions such
as American Express, to launch credit cards. This is known as:
*a. co-branding.
b. franchising.
c. licensing.
d. a partnership.
General Feedback:
Chapter 7 page 236, Learning Objective 4, Applied. Co-branding is the use of two or more brand names
on the same product.
35. Which of the following depicts the stages of the product adoption process in the correct sequence?
General Feedback:
Chapter 7 page 231-232, Learning Objective 2, Factual. The product adoption process entails five
sequential stages: awareness, interest, evaluation, trial, and adoption (see figure 7.4).
36. There are three main types of packaging: primary packaging, secondary packaging and
____________ packaging.
*a. shipping
b. inner
c. outer
d. product
General Feedback:
Chapter 7 page 239, Learning Objective 5, Factual. There are three main types of packaging: primary
packaging, secondary packaging and shipping packaging.
37. A cricket bat manufacturer supplies its latest model bat to an Australian cricketer to use as part of a
sponsorship arrangement. According to the diffusion of innovations theory, to which category would the
Australian cricketer most likely belong in this instance?
a. Early majority.
*b. Early adopters.
c. Laggards.
d. Late majority.
e. Growth.
General Feedback:
Chapter 7 page 232-233, Learning Objective 2, Applied. Early adopters are likely to be careful choosers
of new products and are often opinion leaders who are respected by peers and people in the other
categories (see figure 7.5).
38. Sometimes a variation or derivative of an existing product can be added to the product line rather
than superseding the original product. This is known as a:
a. modification.
*b. line extension.
c. repositioned item.
d. brand extension.
General Feedback:
Chapter 7 page 243, Learning Objective 6, Factual. A line extension is a new product that is closely
related to an existing product in a product line.
39. When it comes to innovative products such as smart phones, older generations have a tendency to be
risk-averse; they prefer to stick to what they know. Many older consumers still look for phones that only
make calls, are relatively large and have big keypad numbers. According to the diffusion of innovations
theory, this most risk-averse group of consumers for new products are:
a. innovators.
*b. laggards.
c. the late majority.
d. early adopters.
e. early majority.
General Feedback:
Chapter 7 page 232-233, Learning Objective 2, Applied. Laggards are the last adopters. They are often
wary of new products and ideas, and generally prefer products that are familiar (see figure 7.5).
40. As products approach the decline phase of the product life cycle, which of the following will not
help the product to possibly enjoy a new phase of growth?
a. Product upgrades.
b. Line extensions.
*c. Product deletion.
d. Product repositioning.
General Feedback:
Chapter 7 page 244, Learning Objective 6, Factual. Line extensions, product upgrades and repositioning
can all help keep a product out of the decline phase. For some products, these approaches can move the
product back in the life cycle to enjoy a new phase of growth.
41. Choose the best answer to complete the following sentence. Product differentiation should:
General Feedback:
Chapter 7 page 236, Learning Objective 3, Factual. Product differentiation is the creation of products
and product attributes that distinguish one product from another. Differentiating features can be used in
the product's promotional activities to emphasise the value of the product and differentiate it from
competitors.
42. In terms of the total product concept, product differentiation occurs mainly at the __________level.
*a. augmented
b. core
c. expected
d. life cycle
e. growth
General Feedback:
Chapter 7 page 236, Learning Objective 3, Factual. Most of the differentiating features are part of the
augmented product layer of the total product concept.
a. Features.
b. Quality.
c. Design.
d. Brand.
*e. All of the options listed.
General Feedback:
Chapter 7 page 236-237, Learning Objective 3, Factual. Some of the characteristics that customers may
perceive to be differentiators include design, brand, image, style, quality, features and price.
44. Which of the following could not potentially be an example of product differentiation?
General Feedback:
Chapter 7 page 236-237, Learning Objective 3, Factual. Product differentiation is the creation of
products and product attributes that distinguish one product from another. The physical attributes of a
product, such as its design, features and quality, have a major influence on customer perceptions.
Specific product features that permit a product to perform particular tasks can be added to, or taken away
from, the basic product on offer. Product quality can be a major source of competitive advantage for
some companies. A product can also be differentiated based on support services. Such services can
encourage repeat purchases, positive 'word-of-mouth' promotion and customer loyalty.
45. Which of the following best describes the concept of product differentiation?
a. How a product evolves as it moves from one phase of the product life cycle to the next.
*b. The creation of products and product attributes that distinguish one product from another.
c. The creation of physical goods that are distinguished from competitor's physical goods.
d. The creation of services that are distinguished from competitor's services.
e. None of the options listed.
General Feedback:
Chapter 7 page 236, Learning Objective 3, Factual. Product differentiation is the creation of products
and product attributes that distinguish one product from another.
46. A brand:
a. is a collection of symbols.
b. is a name.
c. is a slogan.
d. is a design.
*e. can be all of the options listed.
General Feedback:
Chapter 7 page 238, Learning Objective 4, Factual. The brand name can be one of the most important
aspects in a customer's purchase decision. Brand refers to a collection of symbols, such as the name,
logo, slogan and design, intended to create an image in the customer's mind that differentiates a product
from competitors' products.
General Feedback:
Chapter 7 page 238, Learning Objective 4, Factual. A brand can identify one item, a family of items, or
all the items of a seller. Brands play a particularly important role in high-involvement purchase
decisions. Most consumers will prefer a well-known, reputed brand over a cheaper, unknown brand
when making high-involvement purchases.
48. McDonald's 'golden arches', Qantas's 'flying kangaroo' and the International Olympic Committee's
'Olympic rings' are examples of:
a. brand names.
*b. brand marks.
c. brand image.
d. brand equity.
e. None of the options listed.
General Feedback:
Chapter 7 page 239, Learning Objective 4, Applied. Brand marks are the part of a brand not made up of
words - they often consist of symbols or designs. McDonald's 'Golden Arches', Qantas's 'Flying
Kangaroo' and the International Olympic Committee's 'Olympic Rings' are among the most recognisable
brand marks.
a. A trade mark legally registers a brand name or brand mark in order that an organisation may
exclusively use it in the market.
b. Brand equity is the added value that a brand gives a product.
*c. Brand equity is determined by the organisation rather than the consumer.
d. Brand loyalty can be a brand equity metric.
e. A customer's brand loyalty, once established, will never change.
General Feedback:
Chapter 7 page 239-238, Learning Objective 4, Factual. The added value that a brand gives a product is
known as brand equity. All of the value in products arises from the choices that consumers make among
those brands offered to them for purchase; brand equity is therefore a consumer-based concept.
50. Smith's Snackfood Company has a number of brands in its product mix, including Doritos, Twisties
and Burger Rings. This is an example of:
a. family branding.
b. brand extension.
*c. individual branding.
d. brand equity.
e. None of the options listed.
General Feedback:
© John Wiley & Sons Australia, Ltd 2015
17
Testbank to accompany: Marketing 3e by Elliott et al.
Chapter 7 page 240-242, Learning Objective 4, Applied. Individual branding uses a different brand on
each product, giving each its own specific identity. Individual branding can: help position a product in
the marketplace, help reach a different market segment, and avoid confusion with existing branded
products. For example, Smith's Snackfood Company has a number of brands in addition to Smith's in its
product mix, including Doritos, Twisties, Parker's, Nobby's, Red Rock Deli, Cheetos and Burger Rings,
and yet these are all known by their individual brand names and not by the parent company name of
Smith's.
a. It may be an effective way of introducing new products via trading off the established reputation of a
brand.
b. It may assist in reducing the cost of promoting the new product.
*c. Both a and b could be benefits of a family branding strategy.
d. Neither a nor b could be benefits of a family branding strategy.
e. Only one product will be associated with the brand.
General Feedback:
Chapter 7 page 241, Learning Objective 4, Factual. Family branding uses the same brand on several of
the organisation's products. A family branding strategy can be an effective way to introduce new
products when a brand has an established reputation. The new product entering the market with the
family brand connection will immediately benefit from the customer's existing association of that brand
with quality or value. This can also assist in reducing the cost of promoting the new product.
52. The Virgin Group's forays into music, air travel, mobile phones and credit cards could be best
described as a(n):
General Feedback:
Chapter 7 page 241, Learning Objective 4, Applied. Brand extension gives an existing brand name to
new product in a different category. The Virgin Group has demonstrated one of the best uses of brand
extension, with the same brand proving successful across music, air travel, mobile phones and credit
cards.
a. Manufacturer brands are owned by producers and clearly identified at the point of sale.
b. Private label brands are owned by resellers (such as wholesalers and retailers).
c. Manufacturer brands are the most common type of brand.
© John Wiley & Sons Australia, Ltd 2015
18
Chapter 7: Product
General Feedback:
Chapter 7 page 241, Learning Objective 4, Factual. Manufacturer brands are owned by producers and
are the most common type of brand. Products sold under manufacturer brands are clearly identified with
the producer at the point of sale. Private label brands are owned by resellers, such as wholesalers or
retailers, and are not identified with the manufacturer. Private label brands are becoming more popular
as wholesalers and retailers seek increased exposure and increased turnover.
54. When Woolworths Supermarkets introduces brands such as Woolworths Fresh, Woolworths
HomeBrand, and Woolworths Select onto its shelves, these are examples of:
a. generic brands.
*b. private label brands.
c. manufacturer brands.
d. co-branding.
e. None of the options listed.
General Feedback:
Chapter 7 page 241, Learning Objective 4, Applied. Private label brands are owned by resellers, such as
wholesalers or retailers, and are not identified with the manufacturer. They are also known as private
brands, dealer brands, house brands or store brands. Private label brands are often made by
manufacturers that have their own manufacturer brands in the same product category. The underlying
product is often very similar. Woolworths has been expanding its private label brands (Woolworths
Fresh, Woolworths Select, Woolworths HomeBrand, Woolworths Organics and Woolworths Naytura),
substantially reducing the shelf space given to manufacturer brands.
55. A toy manufacturer who enters into an agreement with the owners of 'The Simpsons' brand name to
sell Simpsons toys and associated merchandise would most likely be in a __________ agreement with
the Simpson's brand owner.
a. franchise
*b. licensing
c. brand equity
d. brand loyalty
e. None of the options listed.
General Feedback:
Chapter 7 page 242, Learning Objective 4, Applied. Some organisations want to avoid the time and
expense of establishing their own special brand name. Such organisations can enter a licensing
agreement to use the names and symbols of other brands for a fee. For example, a toy manufacturer can
become the licensee in a licensing agreement with the owners of the 'Star Wars' or 'The Simpsons' brand
names and thus sell merchandise such as plush toys, figurines, clothes or school stationary branded with
the licensor's brand.
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Testbank to accompany: Marketing 3e by Elliott et al.
56. The David Jones American Express Credit Card could best be described as:
General Feedback:
Chapter 7 page 243, Learning Objective 4, Applied. Co-branding is the use of two or more brand names
on the same product. Often the co-branding is done by established brands and there is some
complementary fit in the minds of consumers. Many credit card companies have teamed up with well-
known retail, airline or charity partners so that purchases with the credit card benefit all parties involved.
The David Jones American Express Credit Card has a rewards program in which cardholders receive
'Bonus Gift Points' when purchasing goods at David Jones or associated stores worldwide (including
Selfridges, Harrods, Harvey Nichols, Nordstrom and Galeries Lafayetteare). With such ventures, neither
brand should lose their individual identities, although one may be the dominant brand.
57. Which one of the following would not be a potential function or role of product packaging?
General Feedback:
Chapter 7 page 244-245, Learning Objective 5, Factual. Packaging can become an important
recognisable way for customers to identify a particular product, much like a brand. Many products need
some kind of packaging to make them more convenient to store and use, and to protect them from waste,
damage or spoilage. As well as its functional features, packaging also plays an important role in
promoting the product. It can gain people's attention at the retailer, make customers aware of the product
and/or its contents, differentiate it from competitors' offerings and help build a particular message or
image about the product.
58. A protective seal on the nozzle of a liquid container, designed to stop a product's contents from
leaking is an example of:
a. primary packaging.
*b. secondary packaging.
c. shipping packaging.
d. both a and c.
e. None of the options listed.
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Chapter 7: Product
General Feedback:
Chapter 7 page 244-245, Learning Objective 5, Applied. The secondary package is the material used to
hold or protect a product. It can be removed and discarded after purchase.
59. How could an organisation demonstrate its environmental credentials via product packaging?
General Feedback:
Chapter 7 page 244-245, Learning Objective 5, Factual. If a company wants to show that it is socially
aware or eco-friendly, it can reduce the amount of secondary packaging that has to be thrown away,
ensure that no dangerous or eco-damaging material is used in the packaging, or use recyclable bottles or
containers.
General Feedback:
Chapter 7 page 244-245, Learning Objective 5, Factual. As a form of marketing tool, packaging can be
changed. Marketers may want to change the package to: (1) express to customers that the product has
changed in some way, such as shape, size or ingredients; (2) update the style of package or logo to
broaden the customer appeal; or (3) emphasise certain elements to further differentiate it from the
competition.
61. A new gaming console from Sony or Nintendo that supersedes a previous model could best be
described as:
a. a line extension.
*b. a product modification.
c. repositioning.
d. a core product.
e. None of the options listed.
General Feedback:
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Testbank to accompany: Marketing 3e by Elliott et al.
Chapter 7 page 250, Learning Objective 6, Applied. Product modifications are changes in one or more
characteristics of a product that allow the resultant product to supersede the earlier one. This is
frequently seen in high technology products; for example, each generation of game consoles from
Nintendo and Sony tend to supersede the previous ones.
62. Foster's Group has for many years been very successful with its VB (Victoria Bitter) beer brand.
When it launched its VB mid-strength lager, which was aimed at a different segment of the market, this
could be best described as:
General Feedback:
Chapter 7 page 250, Learning Objective 6, Applied. Line extensions are new products that are closely
related to existing products in the product line. The development of line extensions is seen as a less risky
and less expensive way to introduce a product. Line extensions are the most common form of 'new'
product. A line extension product is, by definition, similar to existing products, but can focus on a
different market segment or segment needs. The Foster's Group took this approach to its Victoria Bitter
brand when it launched VB Midstrength Lager, aimed at the mid-strength (approximately 3.5 per cent
alcoholic content) beer market and specifically at competing with Lion Nathan's XXXX Gold mid-
strength beer.
a. Adjusting the marketing mix for a product may allow an organisation to reposition it in the minds of
consumers.
b. Repositioning may enable a product to move back from the maturity phase into the growth phase of
the product life cycle.
c. Product obsolescence may be planned.
d. Product obsolescence may be unplanned.
*e. All of the options listed.
General Feedback:
Chapter 7 page 250-251, Learning Objective 6, Factual. Line extensions, product modifications and
repositioning can all help keep a product out of the decline phase. For some products, these approaches
can move the product back in the life cycle to enjoy a new phase of growth. Organisations that want to
continue in the market will often make some change to the marketing mix with the expectation that this
will reposition it in the minds of consumers, increase profits and move the product into a growth stage
again. If a marketing manager uses the product life cycle concept, variations in the marketing mix will
be timed to coordinate with the product's market situation. Product obsolescence may be either planned
or unplanned.
a. A product manager is a person who is responsible for managing an organisation's marketing activities
that are aimed at a particular market segment.
b. A marketer cannot influence how a product is positioned in a consumer's mind.
c. Even though a product category may be in the decline phase of the product life cycle, it is possible
that a brand within that product category may be in the growth phase.
d. A marketer may be able to reposition a product in a consumer's mind by adjusting the marketing mix.
*e. Both c and d are correct.
General Feedback:
Chapter 7 page 247-251, Learning Objective 6, Factual. While a product category as a whole may be in
the growth or maturity phases of its life cycle, particular brands within the product category may be in
the introductory or decline phases. This is most easily seen in relation to products subject to fashion,
such as clothes. For some organisations, there may be the need to change an aspect of the marketing mix
to reposition themselves in the market. This may be to stay relevant to the changing needs of customers,
or in reaction to changes by a competitor. An organisation can physically change a product, its design,
packaging or add-on services, and its price, distribution or promotional packages, in order to reposition
it in the eyes of customers.
65. Define 'product'. Explain some of the different ways to view and analyse products and product
attributes.
Correct Answer:
Chapter 7 page 221-226, Learning Objective 1, Factual. A product is a good, service or idea offered to
the market for exchange. It can be tangible, intangible or a combination of both. Marketers can better
understand and analyse products using the total product concept, which describes four levels of a
product: core product, expected product, augmented product, and potential product. Products can be
classified as consumer products (products purchased by individuals to satisfy personal and household
needs) and business products (products bought by an organisation to be used in its operations or in the
production of its own products).
66. Describe the product life cycle, new product development and the product adoption process.
Correct Answer:
Chapter 7 page 228-234, Learning Objective 2, Factual. The concept of product life cycle proposes that
a product passes through five stages: new product development, introduction, growth, maturity, and
decline. Products must be managed throughout the product life cycle to maximise their contribution to
the organisation's marketing objectives.
New product development has eight stages: idea generation, screening (eliminating unviable ideas),
concept evaluation, marketing strategy, business analysis (how the new product will affects costs, sales
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Testbank to accompany: Marketing 3e by Elliott et al.
67. Outline how an organisation can differentiate its products to obtain a competitive advantage.
Correct Answer:
Chapter 7 page 235-237, Learning Objective 3, Factual. Product differentiation is the creation of
products and product attributes that distinguish one product from another. Most of the differentiation of
products occurs in the augmented product layer of the total product concept. Design, brand image, style,
add-on services, quality and features are the major product attributes that can be used to differentiate
offerings from competitors' products.
68. Explain the value of branding and the major issues involved in brand management.
Correct Answer:
Chapter 7 page 238-243, Learning Objective 4, Factual. Brand refers to a collection of symbols, such as
the name, logo, slogan and design intended to create an image in the customer's mind that differentiates
a product from competitors' products. Brands can play a major role in a consumer's choice of a product,
particularly for high-involvement products, as a well-known brand with a good reputation will more
likely be chosen than a cheaper, unknown brand. A brand can help speed up consumer decision making
by identifying specific preferred products, and can provide a form of self-expression and status, as well
as denoting product quality. Brand equity is broadly defined as the added value that a brand gives a
product. It is underpinned by brand loyalty. Brand equity metrics include brand assets (e.g. trademarks
and patents), stock price analysis, replacement cost, brand attributes, brand loyalty and willingness-to-
pay analysis. A high brand equity can be a valuable asset for a company and provide a strong
competitive advantage.
Correct Answer:
Chapter 7 pags 244-246, Learning Objective 5, Factual. Packaging can be a very important part of a
product. The main functions of a package are to protect the product and promote the product. Many
products need some kind of packaging to make it more convenient to store and use while protecting it
from waste, damage or spoilage. However, as well as its functional features, a package is also used as a
marketing tool to gain people's attention at the retailer, make customers aware of the product and/or its
contents, differentiate it from competitors' offerings and help build a particular message or image about
the product. As a form of marketing tool, the package can be changed. Marketers may want to change
the package to express to customers that the product has changed in some way such as in terms of shape
or ingredients, update the style of package or logo to broaden the customer appeal, or emphasise certain
elements to further differentiate it from the competition.
70. Explain key aspects of product management and positioning through the product life cycle.
Correct Answer:
Chapter 7 page 247-251, Learning Objective 6, Factual. Within an organisation, the marketing issues
surrounding products can be managed through a functional approach or by using product managers,
brand managers or market managers. The last three approaches are often better able to coordinate all of
the activities across the organisation to ensure the product strategy is implemented well. In addition to
introducing new products, an organisation can capitalise on existing products by modifying products or
creating line extensions.
The organisation needs to manage the positioning of the product in the marketplace and it may
sometimes be necessary to reposition the product during the product life cycle. Line extensions, product
upgrades and repositioning can all help keep a product out of the decline phase. For some products,
these approaches can move the product back in the life cycle to enjoy a new phase of growth.
Many products eventually become obsolete. A product in decline may be taking valuable resources from
away from other opportunities. Product deletion is the process of eliminating a product from the product
mix. Product deletion must be managed in such a way as to minimise discontent among customers of the
deleted product. Otherwise the discontent can affect sales of continuing products.
He had been like the herd, and had fled from his beloved in the
day of her shadowed fame. He thought of his defection with deepest
regret; yet it seemed to him that to have done otherwise would have
been to palter with the truth.
This burden of sad thought made him more desirous than another
man would have been to lose his sense of individual pain in the
sorrows of others. Parish priests had gone among the poor of
Bridford before Cyril’s time, but none with such a ready ear for their
complaints.
There was a small household which had a peculiar interest for
Cyril. A widow and her son occupied a wretched back room in one of
the wretched houses in a blind alley, a festering lane shut from the
air and light by the overshadowing bulk of a huge factory, whereof
the chimney, although under legal covenant to consume its own
smoke, rained showers of blacks upon the surrounding
neighbourhood, like the spray from a perennial soot fountain.
Nothing could be more squalid than the house in which Mrs. Joyce
and Emmanuel Joyce, her son, lived. Their neighbours were no
cleaner or tidier than the rest of the community. There was the usual
all-pervading odour of fried herrings, and decaying cabbage-leaves.
The back yard, nine feet by six, was a horror to stop the nose at. The
eye was offended by hideous sights, the ear was outraged by foulest
language, and yet in this leper-house there was one spot which the
infected air of the place had not tainted.
Mrs. Joyce and her son had contrived to impart neatness and
order, and even a certain respectability to the one small back room
on the ground-floor, which constituted their house and home. Very
small were the means by which they had achieved this result, but the
result was palpable to every eye.
‘It’s well to be them,’ said the mother of many children, peering
with longing eyes into the neatly kept parlour. ‘If I had no childer I
might make my place tidy; but where there’s childer there’s muck.’
Emmanuel Joyce was a cobbler by trade. Now of all trades
perhaps cobbling is about one of the most unpleasant with which to
be brought into immediate contact, but Emmanuel, who paid his
weekly rent punctually, and was in that respect a striking exception,
had obtained leave to erect a small shed in the angle of the yard
next his window. This shed was looked at with envious eyes by some
of his fellow-lodgers, and talked of invidiously as an encroachment;
but here Emmanuel squatted at his work in all weathers, and here he
kept his tools, and those crippled boots and shoes upon which he
exercised his healing art.
In the parlour he had contrived to build a couple of enclosed beds
on the Scotch principle, which, though wanting in airiness, were tidy
and decent. At night a curtain divided the one small room into two,
and by day this curtain drawn back and neatly looped up, made one
of the decorations of the neat parlour. A tall stand of flower-pots,
Emmanuel’s dearest care, screened the loathesomeness of the yard,
and made the one window a bank of foliage and gay colour. The
shabby odds and ends of furniture shone with the beeswax and
labour which Mrs. Joyce bestowed upon them in the intervals of her
plain sewing. There were cheap prints on the wall above the
mantelpiece, and on each side of the fireplace there were three deal
shelves, containing Emmanuel’s much-prized collection of books, all
picked up at odd times from the rubbish-box of a second-hand
bookseller, and rebound and furbished by Emmanuel’s own
dexterous hands.
‘My son is a great reader,’ Mrs. Joyce said proudly, during Cyril’s
first visit. ‘He keeps the money other young men spend on beer to
buy books with.’
Cyril went over to the shelves and looked at the books. Their
character told him more about Emmanuel Joyce’s way of thinking
than the mother would have cared to tell. There was an odd volume
of Shelley, another of Keats, a Milton, and a Shakespeare. So much
for the poets. Then came Rousseau’s ‘Confessions,’ in English, Tom
Payne’s ‘Age of Reason,’ and a dozen other books all more or less
infidel in their tendency.
‘Your son goes to church, I hope?’ said Cyril, after he had
examined the books.
The widow hung her head, and began to fidget with the corner of
her print apron.
‘I’m sorry to say he’s no church-goer, sir. It’s his only fault. He was
brought up very strict, a little too strict, perhaps. We were chapel