Chapter 11—Setting Product and Brand Strategy

True/False Questions

1. A product is anything that can be offered to a market to satisfy a want or need. True (easy) p. 212

2. The most fundamental level of a customer value hierarchy is called the expected product. False
(moderate) p. 212

3. A potential product is a set of attributes and conditions that buyers normally expect when they buy
the product. False (difficult) p. 213

4. The fourth level of the customer value hierarchy is when the marketer prepares an augmented product
that exceeds customer expectations. True (moderate) p. 213

5. Hotel guests expect a clean bed and fresh towels. This is the core benefit level of the hotel “product.”
False (easy) p. 212

6. Nondurable goods are tangible goods that are normally consumed in one or a few uses, such as beer
and soap. True (moderate) p. 214

7. Unsought goods are tangible goods that normally survive many uses, such as refrigerators. False
(moderate) p. 214

8. Shopping goods are goods that consumers do not know about or do not normally think of buying,
such as smoke detectors. False (moderate) p. 214

9. A person’s consumption system includes the way the person performs the task of getting, using,
fixing, and disposing of the product. True (easy) p. 213

10. Supplies are short-lasting goods and services that facilitate developing or managing the finished
product. True (moderate) p. 214

11. The length of a product mix refers to how many variants of each product are offered. False (difficult)
p. 214

12. Product line length refers to the total number of items in the mix. True (moderate) p. 215

13. Product line consistency refers to the total number of items in a product mix. False (moderate) p.
215

14. Stretching a product line upward runs the risk of cannibalization of the product line. False
(moderate) p. 215

15. When Suzuki announces a low-priced, fully equipped sport bike to attract customers into the
showroom, it is an example of a downward stretching of the product line. True (moderate) p. 215

16. The addition of jalapeño flavored kettle chips to the Lays snack line is an example of line-filling.
True (moderate) p. 216

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17. The most enduring meanings of a brand are its values, culture, and personality. True (easy) p. 217

18. When Coca-Cola introduced its new Vanilla Coke brand it illustrated an example of line extensions.
True (moderate) p. 222

19. One way to extend a brand is through licensing the company name for use on other products. True
(moderate) p. 223

20. A Dodge pickup with a Cummins diesel engine in it provides an example of multiple-sponsor co-
branding. False (difficult) p. 223

Multiple Choice Questions

21. An airline is considering offering Internet access and satellite-sent videos on demand in their already
posh first class sections. These additions represent _______________.
a.) the core benefit
b.) the basic product
c.) the expected product
d.) the augmented product
e.) the potential product (easy) p. 213

22. The most fundamental level of a customer value hierarchy is called the _______________.
a.) core benefit (moderate) p. 212
b.) basic product
c.) expected product
d.) augmented product
e.) potential product

23. Which of the following is the best example of a basic product?

a.) Zhou buys a used Schwinn bicycle for transportation.
b.) Marlinda stays in a Marriott because she likes the nightly mint on her pillow.
c.) Tate eats at Wendy’s because she likes the 99-cent value products.
d.) Sophie gets a clean room at the Ramada Inn. (moderate) p. 212
e.) Morgan enjoys the coupons in the Sunday newspaper.

24. A(n) _______________ is a set of attributes and conditions that buyers normally expect when they
buy the product.
a.) core benefit
b.) basic product
c.) expected product (moderate) p. 212
d.) augmented product
e.) potential product

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25. Absolute Snowboard Shop offers an extended warranty on the boards it sells; a free checkup one
month into the season; and even tunes up and delivers boards. In terms of the customer value
hierarchy, the board shop is offering a(n) _______________ product.
a.) core
b.) basic
c.) service-added
d.) expected
e.) augmented (difficult) p. 213

26. Which of the following is not a quality normally associated with services?
a.) They are intangible.
b.) They are variable.
c.) They are perishable.
d.) They are durable. (easy) p. 214
e.) They normally require more quality control.

27. Which of the following best describes the way in which the user performs the tasks of getting, using,
fixing, and disposing of the product?
a.) consumption system (moderate) p. 213
b.) distribution system
c.) purchasing system
d.) convenience system
e.) shopping system

28. Which of the following is not normally true of durable goods?

a.) They survive many uses.
b.) They require more personal selling and service.
c.) They command higher margins.
d.) They require more seller guarantees.
e.) They are more variable in their delivery of core needs. (moderate) p. 214

29. _______________ are tangible goods that are normally consumed in one or a few uses such as beer
and soap.
a.) Nondurable goods (easy) p. 214
b.) Durable goods
c.) Extensive goods
d.) Specialty goods
e.) Unsought goods

30. Which of the following is the BEST example of nondurable goods?

a.) living room furniture
b.) aluminum cookware
c.) watches
d.) breakfast cereals (easy) p. 214
e.) computer monitors

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31. Which of the following are tangible goods that normally survive many uses?
a.) nondurable goods
b.) durable goods (easy) p. 214
c.) extensive goods
d.) specialty goods
e.) unsought goods

32. Products that are bought frequently, immediately, and with little effort, such as newspapers or snack
items are called _______________ goods.
a.) nondurable
b.) convenience (easy) p. 214
c.) heterogeneous shopping
d.) staples
e.) homogeneous shopping

33. Bowers will drive hours to buy an item for his Nirvana memorabilia collection. It is hard to find good
and original items associated with Nirvana because there are so many collectors of this memorabilia.
In terms of the consumer-goods classification, Nirvana memorabilia is an example of a
_______________ good.
a.) convenience
b.) nondurable
c.) heterogeneous shopping
d.) specialty (moderate) p. 214
e.) homogeneous shopping

34. _______________ are goods that consumers do not know about or do not normally think of buying,
such as smoke detectors.
a.) Convenience goods
b.) Shopping goods
c.) Specialty goods
d.) Unsought goods (moderate) p. 214
e.) Homogeneous goods

35. Unprocessed grain, cotton, iron ore, and bulk copper are all classified as _______________.
a.) component materials
b.) capital items
c.) supplies and business services
d.) raw materials (moderate) p. 214
e.) component parts

36. Computer chips, heavy duty batteries, and wiring assemblies are all examples of _______________.
a.) component materials
b.) capital items
c.) supplies and business services
d.) raw materials
e.) component parts (moderate) p. 214

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37. Long-lasting goods such as a metal stamping equipment or an industrial drill press are classified as
_______________.
a.) component parts
b.) supplies and business services
c.) capital items (moderate) p. 214
d.) component materials
e.) operating supplies

38. _______________ are short-lasting goods and services that facilitate developing or managing a
finished product.
a.) Supplies (moderate) p. 214
b.) Commodities
c.) Component parts
d.) Office equipment
e.) Component materials

39. The number of different product lines offered by a company is termed the product mix’s
_______________.
a.) depth
b.) length
c.) flexibility
d.) width (moderate) p. 214
e.) consistency

40. The __________ of a product line refers to how many variants of each product are offered.
a.) depth (moderate) p. 214
b.) length
c.) flexibility
d.) width
e.) consistency

41. Which of the following refers to the total number of items in the mix?
a.) depth
b.) length (moderate) p. 214
c.) flexibility
d.) width
e.) consistency

42. The _______________ of the product mix refers to how closely related the various product lines are
in end use, production requirements, distribution channels, or in some other way.
a.) depth
b.) breadth
c.) length
d.) width
e.) consistency (moderate) p. 214

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43. When Honda added the Passport and CRV SUVs, and the Odyssey minivan to its range of automotive
offerings it engaged in _______________.
a.) line featuring
b.) line pruning
c.) line filling (moderate) p. 216
d.) line dancing
e.) line modernization

44. Which of the following is a risk associated with a downward stretch strategy?
a.) The new low-end item will definitely cannibalize higher-end items.
b.) The downscale product may cannibalize the core brand. (difficult) p. 215
c.) The low-end item might provoke more competition as other companies move to the low end.
d.) Higher-end competitors may be too firmly entrenched for the company to recoup its investment
costs.
e.) The professionalism of the sales force may become a problem when they are asked to serve the
low end of the market.

45. The addition of jalapeño flavored kettle chips to the Lays snack line is an example of
_______________.
a.) a downward stretch
b.) an upward stretch
c.) line augmentation
d.) a two-way stretch
e.) line-filling (moderate) p. 216

46. The Craftsman tools is an example of the brand conveying which level of meaning?
a.) attributes (moderate) p. 217
b.) values
c.) features
d.) benefits
e.) personality

47. When the manufacturer of Snapper lawn mowers runs ads that equate its products with the power of
the dependable turtle, it is conveying the _______________ of the brand.
a.) attributes (moderate) p. 217
b.) features
c.) values
d.) benefits
e.) personality

48. SecuRite alarm systems is a brand name that conveys what level of brand meaning?
a.) attributes
b.) values
c.) personality, attributes, and benefits
d.) benefits (difficult) p. 217
e.) user

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49. “Animal,” the drummer for the Route 66 Killers is running low on replacement drum sticks. He
heads downtown to AMP Music, but finds they do not carry his favorite brand, Pro-Mark. Instead of
buying other-branded sticks, Animal chooses to order online from musiciansfriend.com. This is an
example of _______________.
a.) brand acceptability
b.) brand awareness
c.) brand loyalty (moderate) p. 217
d.) brand perception
e.) brand preference

50. Brand equity _______________.

a.) is tied closely to specific product lines
b.) is closely related to the number of customers who are devoted to the brand (difficult) p. 218
c.) reduces the amount of product management effort a company needs to expend
d.) may actually hinder the launching of brand extensions
e.) will be destroyed when the product’s manufacturer launches a premium pricing strategy

51. _________ refers to estimating the total financial value of the brand.
a.) Brand loyalty
b.) Brand equity
c.) Brand valuation (moderate) p. 218
d.) Brand identity
e.) Brand building

52. A company produces several different products and wants to avoid confusion between its different
products. Its best choice for a branding strategy would be _______________.
a.) store brand names
b.) a blanket family name
c.) brand name licensing
d.) separate family names for all products (difficult) p. 221
e.) a company trade name with individual product names

53. A diet supplement product has the brand name of Mega-Mass. This is a desirable brand name because
it exhibits which of the following brand name characteristics?
a.) The brand name suggests something about the product’s benefit. (difficult) p. 221
b.) The brand name sounds like a lot of other similar muscle-enhancing products.
c.) The brand name is static and suggests no action.
d.) The brand name promises success.
e.) The brand name emphasizes the product’s features.

54. Using an existing brand name and extending to new sizes or flavors in the existing product category
is called _______________.
a.) line extension (moderate) p. 222
b.) brand extension
c.) multibrands
d.) co-brands
e.) complex brands

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55. Mars recently tested a fudge-flavored Snickers candy. Mars is using a _______________ strategy
with the Snickers brand.
a.) multibrand
b.) brand extension
c.) new brand
d.) line extension (moderate) p. 222
e.) co-brand

56. Line extensions result in _______________.

a.) new excitement and commitment
b.) the ability of one brand to benefit from the strength of another brand
c.) a higher chance of survival for the new product (difficult) p. 222
d.) instant recognition and early acceptance
e.) the guaranteed success of a premium pricing strategy

57. Many consumers now view brands as being of relatively equal value, and are therefore less loyal to a
particular brand. This is called
a.) brand laddering
b.) brand parity (moderate) p. 220
c.) brand equity
d.) brand acquisition
e.) brand extension

58. When the Harley-Davidson Motor Company licensed its logo for use on special edition Ford F150
trucks, it was an example of a manufacturer using a(n) _______________ strategy.
a.) innovation
b.) line extension
c.) brand extension
d.) multibrand
e.) co-brand (moderate) p. 223

59. New brand names introduced in the same product category are called ______________.
a.) line extension
b.) brand extension
c.) multibrands (moderate) p. 223
d.) co-brands
e.) complex brands

60. DaimlerChrysler markets vehicles under the brand names of Jeep, Chrysler, Mercedes, Mini Cooper,
and Dodge, all targeted to different market segments. DaimlerChrysler is using a(n)
_______________ strategy.
a.) innovation
b.) line extension
c.) brand extension
d.) multibrand (moderate) p. 223
e.) co-brand

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61. The King Ranches of Texas and Hawaii authorized Ford Motor Company to use their name and logo
for a special edition F150 pickup. This is an example of the use of a _______________ strategy.
a.) line extension
b.) co-branding (moderate) p. 223
c.) repositioning
d.) brand extension
e.) line filling

62. Kid-oriented yogurt cups are falling from favor as moms and kids are showing a preference for
drinkable forms of yogurt packaged in tubes. Manufacturers of cup-based yogurts think they still
have a good product – one that has nutritional benefits for consumers. Their best branding strategy
would be _______________.
a.) line extension
b.) co-branding
c.) repositioning (moderate) p. 223
d.) brand extension
e.) multibranding

63. White Castle wanted to attract more health-conscious consumers by adding a grilled chicken
sandwich, the “Chicken Castle” to its menu. This is an example of a _______________ strategy.
a.) line extension
b.) co-branding
c.) repositioning (moderate) p. 223
d.) brand extension
e.) multibranding

64. An example of a secondary package would be a _______________.

a.) bag of Sunkist oranges
b.) carton containing twelve cans of Pepsi (moderate) p. 224
c.) can of Libby’s brand vienna sausage
d.) bag of Fit ‘N Trim dog food
e.) bottle of Mountain Dew soda

65. Some companies are offering cardboard (as opposed to plastic) refill packages of liquid detergent and
fabric softener to cut down on solid waste. This environmentally aware packaging is an example of
a(n) _______________.
a.) Self-service opportunity
b.) consumer affluence
c.) image repositioning
d.) innovation opportunity (difficult) p. 224
e.) social perception

66. The green bottle that holds Quaker State motor oil contributes to Quaker State’s marketing effort in
the sense that _______________.
a.) it looks pretty
b.) it aids in the self-service function
c.) it helps consumers feel more affluent
d.) it helps build company and brand image (moderate) p. 224
e.) it allows Quaker State to be more innovative

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67. When Staples receives their order for Sharpie brand permanent markers, the case inside the shipping
box is called _______________.
a.) the primary package
b.) the secondary package (easy) p. 224
c.) the shipping package
d.) individual package
e.) unit package

68. Yamaha makes engines, musical instruments, and motorcycles, among other products. If Yamaha
decided to enter the farm equipment industry with the Yamaha brand, this would be an example of
_______________.
a.) brand dilution
b.) multibranding
c.) experiential brands
d.) functional branding
e.) brand extension (moderate) pp. 222-223

69. Amazon.com has a good brand name because the name _______________.
a.) suggests something about the product’s benefits
b.) suggests product qualities
c.) tells where the company is based
d.) is distinctive (moderate) p. 221
e.) is easily forgotten

70. Which of the following would be considered a line extension for the Coca-Cola Company?
a.) Diet Caffeine-Free Coke (moderate) p. 222
b.) Minute Maid Orange Juice
c.) Orangina Orange Soda
d.) Inca Kola
e.) Georgia Coffee

Essay Questions

71. The Japanese restaurant chain Beni-Hana provides a chef that cooks the meal in an entertaining way
on a large table in front of your group. List and explain the five product levels as they relate to the
Beni-Hana experience.

Answer:
The core benefit of a visit to Beni-Hana is a full stomach. The basic product includes food, seating,
and entertainment. The expected product probably includes a basic level of freshness, hygiene, and
nutrition. The augmented product would be anything that goes above and beyond the diners’
expectations, such as a chef that tells jokes or explains about Japanese culture as he prepares the meal.
The potential product could include any number of services or products added to the basic Beni-Hana
experience described. Examples might be free rice wine samples, cooking participation by the diners,
or embossed napkins that you can take home with you.
(moderate) pp. 212-213

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72. In a short essay, explain how a marketer can classify a product according to durability and tangibility
and determine the marketing strategies for the corresponding classifications. Give examples from
both the consumer market and the industrial market.

Answer:
Nondurable goods are tangible goods normally consumed in one or a few uses. Because these goods
are consumed quickly and purchased frequently, the appropriate strategy is to make them available in
many locations, charge only a small markup, and advertise heavily to induce trial to build preference.
Examples for consumer market: beer, candy bar, and soap. Examples for industrial market: glue
stick, stamps, disposable syringes, and paper towels. Durable goods are tangible goods that normally
survive many uses. Durable goods normally require more personal selling and service, command a
higher margin, and require more seller guarantees. Examples for consumer market: refrigerator,
automobile, lawn mower, and clothing. Examples for industrial market: copying machine, computer,
laser printer, walk-in freezer, and dog kennel. Services are intangible, inseparable, variable, and
perishable products. As a result they normally require more quality control, supplier credibility, and
adaptability. Examples for consumer market: day care, haircut, vacation cruise, and maid service.
Examples for industrial market: management consulting, accounting, and an employment agency.
(difficult) p. 214

73. Competition in the soft drink industry is intense. In a short essay, describe a soft drink brand you are
familiar with—Coca-Cola, Fanta Orange, 7Up, Mountain Dew, etc.—in terms of the six levels of
meaning a product brand has.

Answer: (moderate) p. 217

74. Detail Aaker’s five levels of customer attitude toward a brand. What is brand equity and how is it
related to the Aaker’s five levels?

(moderate) p. 218
75. French Connection has a very popular clothing line brand name, FCUK. Their motto is “vive le fcuk:
British fashion with a French accent.” Discuss how this brand name might attract the kinds of
customers French Connection wants.

Answer:
FCUK is a very aggressive brand name which seeks to offend while making money for the company.
In terms of levels of brand meaning, the name does not say much about product attributes. It does not
speak to the benefits of wearing the clothes. It probably speaks to the company’s values and culture
(in-your-face). The personality of the FCUK brand is, again, considered aggressive, and this extends
to the type of person that is attracted to a brand that is obviously meant to offend someone. One
would expect that the FCUK brand would appeal to consumers with strong personalities, who want to
be different and don’t mind showing it. They are likely to rail against the status quo and try to shock
others through their behavior and clothing choices.
(difficult) p. 217

Mini-Cases

Mini-Case 11-1
In the processed meat industry, Sara Lee Meats (SLM) is a star. Sara Lee had almost $4.6 billion in sales
last year with sales in more 140 nations. It owns and operates meat-processing plants in 40 different
nations. SLM’s business strategy includes product innovation, acquisitions and mergers, and market
leadership in a number of different categories. Its growth strategies support an annual 6 percent growth in

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sales. Important U.S. brands in the Sara Lee product line are Kahn’s, Jimmy Dean, Hillshire Farms,
Bryan, State Fair, and Best’s Kosher, and Tastefuls! According to SLM executive George Chivari, “We
work very hard at Sara Lee on brand equity. . . . We have to make sure our new ideas are not only
profitable and achieve big volume for our [retail] customers, but also that they are consistent with the
quality of the brand and there is a good fit.” One of SLM’s recent new products that seems to have a
good fit with the company’s other products was Tastefuls! Tastefuls! brand is described as a lunch
combination. It features two small sandwiches, chips, and dessert. The lunch combination was
developed and marketed by Jimmy Dean foods, a company that prior to the introduction of this product
had just made sausage.

76. Refer to Mini-Case 11-1. Given what you have read about Sara Lee Meats, you would think that its
executives want you to classify the SLM products as _______________.
a.) homogeneous shopping products
b.) specialty products (moderate) p. 214
c.) convenience products
d.) staples
e.) impulse products

77. Refer to Mini-Case 11-1. When Hillshire Farms, a manufacturer of various kinds of sausages,
introduced a new line of sausages made with turkey meat under the Hillshire Farms brand, it was an
example of a _______________ strategy.
a.) co-branding
b.) brand licensing
c.) line extension
d.) multibranding
e.) brand extension (moderate) pp. 222-223

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78. Refer to Mini-Case 11-1. The introduction of Tastefuls! was an example of a _______________
strategy.
a.) multibranding (moderate) p. 223
b.) family branding
c.) co-branding
d.) licensed branding
e.) brand extension

Mini-Case 11-2
Volkswagen plans to enter the sport-luxury car market with an upscale automobile based on the Passat
platform. The new car will have all-wheel drive, a small-block V-8 engine, GPS navigation equipment,
leather interior, and 18” low profile tires, among other attributes. Base prices are expected to start at
$43,995, though few options are not already included. Promotion will focus on men in their 30s and 40s
who are successful at their jobs, report annual incomes in excess of $100,000, and who like speed and
high technology.

79. Refer to Mini-Case 11-2. A person who only views cars as a way to get from point A to point B
would see this vehicle in terms of a(n) _______________.
a.) potential product
b.) augmented product
c.) expected product
d.) basic product
e.) core benefit (easy) p. 213

80. Refer to Mini-Case 11-2. The Passat fully-loaded with all the “bells and whistles” is priced in the
mid-high $30,000s. This example of VW moving upscale is called _________ and is especially risky
because __________.
a.) market stretching; starting a new car brand can costs millions of dollars
b.) upmarket line stretching; it could cannibalize VW’s core brand (difficult) p. 215
c.) brand building; awareness of the brand could be too great and cause shortages
d.) cult branding; consumers might reject VW as a luxury automobile producer
e.) brand dilution; consumer may stop thinking about the brand

81. Refer to Mini-Case 11-2. VW will call the car the LS8-C, which stands for Luxuriöser Sport 8-
Cylinder. This brand name is based on _______________.
a.) the attributes of the car (moderate) p. 217
b.) the benefits of the car
c.) the personality of the car
d.) the driver/user of the car
e.) the culture of the company

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