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Chapter 07 - Products and Brands
Chapter 07
Products and Brands
7-1
Chapter 07 - Products and Brands
4. The core product is the physical good or the service that a consumer purchases when
buying a product.
FALSE
5. A warranty, a service contract, delivery options, and installation assistance are examples of
augmented product.
TRUE
6. For many products, the packaging and labelling are an integral part of the product.
TRUE
7-2
Chapter 07 - Products and Brands
8. The depth of a company's product mix refers to the number of different categories of
products offered by the company.
FALSE
10. Specialty products are items for which the consumer comparison-shops, assessing the
attributes and prices of different products and brands.
FALSE
11. Sales of business products are directly related to the sales of products with which they are
associated.
TRUE
7-3
Chapter 07 - Products and Brands
12. Production goods and services are items used to assist in producing other goods and
services.
FALSE
13. Supplies include tools and office equipment and are usually purchased in small-order sizes
by buyers.
FALSE
15. Jeff finds little difference in taste between Coca-Cola and its competitors. Still, Jeff finds
he most often purchases Coca-Cola. This demonstrates brand equity.
TRUE
7-4
Chapter 07 - Products and Brands
16. The Ultimate Body Solutions, a manufacturer of body products, uses the brand name
Glow and Shine for the body wash, body soap, and body lotion it produces. In this scenario,
Glow and Shine is a family brand name.
TRUE
17. A family brand name saves the company the marketing funds needed to build brand equity
from scratch.
TRUE
18. A copyright legally protects a brand name and its related logo, colours, fonts, and various
combinations that exist for use in a particular category and in a part of the world.
FALSE
19. Brand personality refers to the set of human characteristics associated with a brand.
TRUE
7-5
Chapter 07 - Products and Brands
20. A generic brand is owned by a retailer and provides the retailer with the opportunity to
offer its customers a less expensive alternative to a manufacturer's brand.
FALSE
22. Generic brands lack brand equity and product recognition compared to a store brand.
TRUE
23. Marketers are free from the responsibility of considering the future of the brand since it
falls under the brand planner's duties.
FALSE
7-6
Chapter 07 - Products and Brands
25. Services:
A. represent tangible activities or benefits provided to consumers in exchange for money or
some other value.
B. refer to intangible activities, benefits, or satisfactions offered for sale.
C. cannot be stored and accessed at a later date.
D. include any activity, either tangible or intangible, provided by an organization in exchange
for monetary remuneration.
7-7
Chapter 07 - Products and Brands
26. All Round Utilities Inc. offers airline trips, financial advice, and telephone calls for sale.
These products are referred to as the company's _____.
A. non-durable goods
B. durable goods
C. services
D. offered goods
These products are the company's services. Services are defined as intangible activities,
benefits, or satisfactions such as banking, conducting an online search, visiting a doctor,
taking a vacation, going to a movie, or taking an online course.
Tangible attributes include physical characteristics such as colour or sweetness, and intangible
attributes include those aspects of a product that can't be touched.
7-8
Chapter 07 - Products and Brands
28. Ease and Relax Centre, a specialty unit providing high-end massaging services, displays
training certificates on its walls, and its brochures contain customer testimonials of satisfied
customers. By doing this, Ease and Relax Centre is dealing with the service characteristic of
_____.
A. incongruity
B. inconsistency
C. intangibility
D. inseparability
The company is dealing with the intangibility characteristic of services. Tangible attributes
include physical characteristics such as colour or sweetness, and intangible attributes include
those aspects of a product that can't be touched.
29. Visitors to a nail salon may have difficulty distinguishing between the overall look of the
salon and their perception of quality of the service they received. This demonstrates
A. intangibility of services
B. incongruity of services
C. inseparability of services from consumers
D. inflexibility of services
In most cases, consumers can't distinguish between the service and the individual who
actually provides the service.
7-9
Chapter 07 - Products and Brands
30. The brochure for Healthy & Fit Centre has photographs of people enjoying the various
gym amenities. By seeing the pictures of what is available at the gym, a customer has a better
idea of what is being sold. The brochure, thus, helps customers deal with the _____ that is
associated with the centre's services.
A. incongruity
B. inconsistency
C. intangibility
D. inseparability
The brochure helps customers deal with the intangibility associated with the centre's services.
Tangible attributes include physical characteristics such as colour or sweetness, and intangible
attributes include those aspects of a product that can't be touched.
A private label brand, otherwise known as a store brand, is owned by a retailer that contracts
its manufacturing to major suppliers and then sells the product at its own retail stores, under
its own store brand name.
7-10
Chapter 07 - Products and Brands
32. A _____ brand has no branding at all and is produced as a cheap alternative to a
manufacturer's brand and to a private label branded product.
A. not-for-profit
B. generic
C. government
D. media
A generic brand has no branding at all and is sometimes produced as a cheap alternative to a
manufacturer's brand and to a private label branded product. A generic brand typically
highlights the main product ingredient as a means of selling the product, with its main point of
difference being price.
33. Developing, pricing, promoting, and delivering services is challenging because the quality
of a service is often _____.
A. intangible
B. invisible
C. inconsistent
D. inseparable
Developing, pricing, promoting, and delivering services is challenging because the quality of
a service is dependent on the people who provide it and it can therefore vary in consistency.
Quality can vary with each person's capabilities, experience, motivation, and even personality.
7-11
Chapter 07 - Products and Brands
Developing, pricing, promoting, and delivering services is challenging because the quality of
a service is dependent on the people who provide it and it can therefore vary in consistency.
Quality can vary with each person's capabilities, experience, motivation, and even personality.
35. Betty Smith operates a wedding planning service that aids brides-to-be in planning their
weddings by providing them with whatever equipment, supplies, and services they need. To
maintain a quality image and to assure the clients that all of its employees perform at the same
high standards, Betty provides training to each of her employees. Which unique aspect of
services is Betty trying to address in this scenario?
A. perishability
B. intangibility
C. inconsistency
D. inseparability
Betty is trying to address the issue of inconsistency across its company's employees.
Developing, pricing, promoting, and delivering services is challenging because the quality of
a service is dependent on the people who provide it and it can therefore vary in consistency.
Quality can vary with each person's capabilities, experience, motivation, and even personality.
7-12
Chapter 07 - Products and Brands
37. Fast Airlines operates five flights daily between Calgary and Toronto during the winter.
One flight leaves Calgary at 12:10 a.m. The flight has a capacity of 120 passengers. In
December, the airline was flying with full capacity. But in January, the flight has averaged
only 24 passengers, leaving 96 seats empty. The flight requires at least 60 passengers to break
even. Which unique aspect of services does this situation describe?
A. inventory
B. intangibility
C. inconsistency
D. inseparability
This scenario highlights the complexity of the inventory of services. The inventory of services
is more complex than that of goods due to the nature of services. Inventory problems exist
because services cannot necessarily be stored and accessed when in demand.
7-13
Chapter 07 - Products and Brands
38. A situation when the supply of service exceeds its demand is referred to as _____.
A. off-peak pricing
B. idle production capacity
C. inverse demand
D. excess demand
Idle production capacity is formally defined as a situation when the supply of a service
exceeds its demand.
Idle production capacity is formally defined as a situation when the supply of a service
exceeds its demand. To deal with this issue, the service industry often uses part-time
employees who are paid an hourly wage and are scheduled to work shifts.
7-14
Chapter 07 - Products and Brands
40. Andrea owns We Help, a concierge company with 63 employees providing everyday
services such as walking dogs, running errands such as going to the post office, paying bills,
and picking up groceries from supermarket.
Andrea's regular customers are provided with the same employees to run their errands in order
to ensure _____.
A. consistency
B. tangibility
C. congruity
D. flexibility
Developing, pricing, promoting, and delivering services is challenging because the quality of
a service is dependent on the people who provide it and it can therefore vary in consistency.
Quality can vary with each person's capabilities, experience, motivation, and even personality.
By providing the same employee every time to its regular customers, We Help ensures
consistency in its services.
7-15
Chapter 07 - Products and Brands
41. Andrea owns We Help, a concierge company with 63 employees providing everyday
services such as walking dogs, running errands such as going to the post office, paying bills,
and picking up groceries from supermarket.
Andrea is so well-liked that her customers recommend her instead of her business to people
who are looking for someone to perform similar services. Their inability to see the distinction
between Andrea and her services is an example of the _____ of services.
A. inconsistency
B. perishability
C. incongruity
D. inseparability
42. Andrea owns We Help, a concierge company with 63 employees providing everyday
services such as walking dogs, running errands such as going to the post office, paying bills,
and picking up groceries from supermarket.
Andrea realizes that the economic momentum is slowing down. Major corporations that were
her regular clients have trimmed their budgets and are not using her services any longer.
Andrea now has more employees than she needs. This situation is an example of _____.
A. off-peak pricing
B. idle production capacity
C. inverse demand
D. excess demand
This is an example of idle production capacity at Andrea's company. Idle production capacity
is formally defined as a situation when the supply of a service exceeds its demand.
7-16
Chapter 07 - Products and Brands
43. Fast & Swift, a sedan manufacturer, has introduced Spectra, a leisure car that boasts of an
eco-friendly model at a comparatively lower price. The first 50 buyers are given a three-year
warranty on their purchase.
Spectra is being introduced as a leisure car. This implies that the car will be used primarily for
the purpose of relaxation. Which of the following product concepts is being discussed here?
A. formal product
B. core product
C. augmented product
D. future product
This scenario focuses on the core product concept. The core product refers to the fundamental
benefit that a consumer derives from having the product.
44. Fast & Swift, a sedan manufacturer, has introduced Spectra, a leisure car that boasts of an
eco-friendly model at a comparatively lower price. The first 50 buyers are given a three-year
warranty on their purchase.
The eco-friendly design and features of Spectra are the _____ product.
A. formal
B. core
C. actual
D. future
The actual product is the physical good or the service that a consumer purchases when buying
a product. The eco-friendly design and features are Spectra's actual products.
7-17
Chapter 07 - Products and Brands
45. Fast & Swift, a sedan manufacturer, has introduced Spectra, a leisure car that boasts of an
eco-friendly model at a comparatively lower price. The first 50 buyers are given a three-year
warranty on their purchase.
The three-year warranty provided to the first 50 buyers refers to the _____ product.
A. formal
B. core
C. augmented
D. future
The warranty offered by Spectra is an augmented product. The augmented product refers to
the additional features and attributes that accompany a product, such as a warranty, a service
contract, delivery options, installation assistance, or a website used to distinguish the product
from competitive offerings.
Packages and labels also provide many functional benefits, such as protection or facilitating
product usage. In addition, they serve as platforms from which to communicate brand
imagery, brand logos, detailed product information, and the occasional special offer.
7-18
Chapter 07 - Products and Brands
47. The craft beer industry in Canada has more than 500 small producers. As such, it is
difficult to capture consumers' interest. For this reason _____ is particularly important.
A. distinctive packaging
B. the core product
C. product copyrights
D. private label brands
With so many similar products available to consumers, it is critical that product packaging
capture the buyer's attention and be easily remembered.
A product line is a group of similar products with the same product and brand name. It is
directed to the same general target market and is marketed together as one line to retailers and
consumers.
7-19
Chapter 07 - Products and Brands
49. Help Around Inc. is a company that gives all of its profits to charities. The company
produces popcorn, salsa, pasta sauce, and salad dressings under the Help Around brand name.
These product lines refer to the company's product _____.
A. mix
B. unit
C. category
D. portfolio
50. Product lines are part of a company's product _____, the combination of product lines
offered by a company.
A. mix
B. type
C. class
D. category
Product lines are part of a company's product mix. Product mix refers to the array of product
lines marketed by a company.
7-20
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series of sections were made, the youngest embryos being cut into
sections five microns thick, the older stages ten microns or more in
thickness.
The Egg
Figures 1, 1a (Plate VI.)
The egg (Fig. 1) is a perfect ellipse, the relative lengths of whose
axes vary considerably in the eggs of different nests and slightly in
the eggs of the same nest. Of more than four hundred eggs
measured, the longest was 85 mm.; the shortest 65 mm. Of the
same eggs, the greatest short diameter was 50 mm.; the least short
diameter was 38 mm. The average long diameter of these four
hundred eggs was 73.74 mm.; the average short diameter was 42.59
mm. The average variation in the long axis of the eggs of any one
nest was 11.32 mm., more than twice the average variation in the
short axis, which was 5.14 mm. No relation was noticed between the
size and the number of eggs in any one nest. Ten eggs of average
size weighed 812 grams—about 81 grams each.
Voeltzkow (78) states that the form of the egg of the Madagascar
crocodile is very variable. No two eggs in the same nest are exactly
alike, some being elliptical, some “egg-shaped,” and some
“cylindrical with rounded ends.” The average size is 68 mm. by 47
mm., shorter and thicker than the average alligator egg.
When first laid, the eggs are pure white, and are quite slimy for a
few hours, but they generally become stained after a time by the
damp and decaying vegetation composing the nest in which they are
closely packed.
The shell is thicker and of a coarser texture than that of the hen’s
egg. Being of a calcareous nature, it is easily dissolved in dilute
acids.
The shell membrane is in two not very distinct layers, the fibers of
which, according to S. F. Clarke, are spirally wound around the egg
at right angles to each other. No air-chamber, such as is found in the
hen’s egg, is found in any stage in the development.
In most—probably all normal—eggs a white band appears around
the lesser circumference a short time after being laid. This chalky
band, which is shown at about its maximum development in Fig. 1a,
is found, on removal of the shell, to be caused, not by a change in
the shell, but by the appearance of an area of chalky substance in
the shell membranes. Clarke thinks this change in the membrane is
to aid in the passage of gases to and from the developing embryo.
Generally this chalky area forms a distinct band entirely around the
shorter circumference of the egg, but sometimes extends only partly
around it. It varies in width from about 15 mm. to 35 mm., being
narrowest at its first appearance. Sometimes its borders are quite
sharp and even (Fig. 1a); in other cases they are very irregular. If the
embryo dies the chalky band is likely to become spotted with dark
areas.
The shell and shell membrane of the egg of the Madagascar
crocodile are essentially the same as those just described, except
that the shell is sometimes pierced by small pores that pass entirely
through it. The same chalky band surrounds the median zone of the
egg (78).
The white of the egg is chiefly remarkable for its unusual density,
being so stiff that the entire egg may be emptied from the shell into
the hand and passed from one hand to the other without danger of
rupturing either the mass of albumen or the enclosed yolk. The
albumen, especially in the immediate neighborhood of the yolk,
seems to consist of a number of very thin concentric layers. It varies
in color, in different eggs, from a pale yellowish white, its usual color,
to a very decided green.
As might be expected, no chalazæ are present.
The yolk is a spherical mass, of a pale yellow color, lying in the
center of the white. Its diameter is so great that it lies very close to
the shell around the lesser circumference of the egg, so that it is
there covered by only a thin layer of white, and care must be taken in
removing the shell from this region in order not to rupture the yolk.
The yolk substance is quite fluid and is contained in a rather delicate
vitelline membrane.
The albumen and yolk of the crocodile’s egg, as described by
Voeltzkow, differ from those of the alligator only in the color of the
albumen, which in the crocodile is normally light green (78).
As pointed out by Clarke, the position of the embryo upon the yolk
is subject to some variation. During the earliest stages it may occur
at the pole of the yolk nearest the side of the egg; later it may
generally be found toward the end of the egg; and still later it shifts
its position to the side of the egg. It is probable, as Clarke says, that
the position at the end of the egg secures better protection by the
greater amount of white, at that point, between the yolk and the
shell; while the later removal to the side of the egg, when the
vascular area and the allantois begin to function, secures a better
aëration of the blood of the embryo.
Around the embryo, during the stages that precede the formation
of the vascular area, is seen an irregular area of a lighter color and a
mottled appearance. This area is bounded by a distinct, narrow,
white line, and varies in size from perhaps a square centimeter to
one third the surface of the yolk.
During the earliest stages of development the embryo is very
transparent; so that, as there is no fixed place upon the yolk at which
it may be expected to occur, it is often very difficult to find. Owing to
this transparency, to the extreme delicacy of the embryo, and to the
character of the white, the removal of an early embryo from the egg
of the alligator is a difficult operation and is accomplished only after
some practice.