Q&A
1.
Indu Indust stri rial al loca locati tion on ana analy lysi siss typ typic ical ally ly attempts to a. redu ducce co costs b. maximize sales c. focus more on human resources d. be environmentally friendly
2.
Serv Servic icee loc locat atio ion n dec decis isio ions ns typi typica call lly y atte attemp mptt to to a. a. minim inimiz izee cos costs ts b. consider global implications c. decrease labor costs d. be environmentally friendly e. none of the above
3.
A location decision for an appliance manufacturer would tend to have a(an) a. cost focus b. labor focus c. revenue focus d. environmental focus e. education focus
4.
A location decision for a traditional department store (Macy's) would tend to have a(n) a. cost focus b. labor focus c. revenue focus d. environmental focus
5.
In locat location ion plann planning ing,, environ environmen mental tal regul regulati ations ons,, cost and and availa availabil bility ity of of utili utilitie ties, s, and taxes xes are a. global bal factors b. country factors c. regional/community factors d. site-related factors e. none of the above
6.
Which hich of the fol followi lowing ng is u usu sual ally ly not one of the top considerations in choosing a manufacturing location? a. availability of labor and labor productivity b. exchange rates c. attitude of governmental units d. zoning regulations e. entertainment opportunities
7.
When making a location decision at the country level, which of these would be
considered? a. corporate desires b. land/construction costs c. air, rail, highway, waterway systems d. zoning restrictions e. location of markets
8.
Whic Which h of thes thesee fact factor orss woul would d be cons consid ider ered ed whe when n maki making ng a loca locati tion on decision at the region/community level? a. government rules, attitudes, stability, incentives b. cultural and economic issues c. zoning restrictions d. environmental impact issues e. proximity to raw materials and customers
9.
When When makin making g a locat location ion deci decisio sion n at the region/ region/com commun munity ity level, level, which which of of these these would be considered? a. government rules, attitudes, stability, incentives b. cultural and economic issues c. cost and availability of utilities d. zoning restrictions e. air, rail, highway, waterway systems
10. Which of these factors would be considered considered when making a location location decision at the the site level? a. government rules, attitudes, stability, incentives b. cultural and economic issues c. zoning regulations d. cost and availability of utilities e. proximity to raw materials and customers 11.
Tangible costs include which of the following? a. climatic conditions b. availability of public transportation c. taxes d. quality and attitude of prospective employees e. zoning regulations
12.
Intangible costs include which of the following? a. quality of prospective employees b. quality of education c. availability of public transportation d. all of the above
13.
Community Community attitud attitudes, es, zoning zoning restrict restrictions, ions, and quality quality of of labor labor force force are likely likely to be considered in which of the following fo llowing location decision methods? a. transportation method b. locational break-even analysis c. center-of-gravity method d. simulation e. factor rating method
14. Which of the following methods best considers intangible costs related to a location decision? a. crossover methods b. locational break-even analysis c. factor rating analysis
d. the transportation method e. the assignment method
15.
Evaluating Evaluating locatio location n alternati alternatives ves by compar comparing ing their their composit compositee (weighted (weighted-averag -average) e) scores scores involves a. factor rating an analysis b. cost-volume analysis c. transportation model analysis d. linear regression analysis e. crossover analysis
16.
A clothing clothing chain is is consider considering ing two two differ different ent locatio locations ns for for a new retail retail outlet. outlet. They They have identified the four factors listed in the following table as the basis for evaluation, and have assigned weights as shown on the left. The manager has rated each location on each factor, on a 100-point basis, as shown on the right. Factor
Factor Description
Weight
Barclay
Chester
1 2 3 4
Average community income Community growth potential Availability of public Labor cost
0.40 0.25 0.15 0.20
30 40 20 10
20 30 20 30
What is the score for Barclay? a. 10.00 b. 24.50 c. 25.75 d . 2 7 . 00 e. 100.0 17.
An approach approach to locati location on analysis analysis that includes includes both both qualitati qualitative ve and quantitative quantitative cons consid ider erat atio ions ns is a. locat locatio ional nal cost cost-v -vol olum umee b. factor rating c. transportation model d. assignment method e. make or buy analysis
18.
A full-ser full-service vice restaur restaurant ant is considering considering opening a new facil facility ity in a specific specific city. city. The table below shows its ratings of four factors at each of two potential sites. Factor Affluence of local population Traffic flow Parking availability Growth potential
The score for Gary Mall is . a. 120; 120; 120 120 b. 22; 24 c. 18; 120 d. 34; 28 e. none of the above 19.
Weight 0.20 0.40 0.20 0.20
Gary Mall Belt Line 30 30 20 50 40 30 10 30
and the score for Belt Line is
The cross crossover over char chartt for loca locatio tion n break-e break-even ven analys analysis is show showss
where a. fixed costs are equal for alternative locations b. variable costs are equal for alternative locations c. total costs are equal for alternative locations d. fixed costs equal variable costs
20.
The center of gravity method does not take into consideration a. the location of markets b. the volume of goods shipped to the markets c. the value of the goods shipped d. the combination of volume and distance
21.
The center-of-gravity method is used primarily to determine what type of locations? a. service locations b. manufacturing locations c. distribution center locations d. supplier locations
22.
A regional bookstore chain is about to build a distribution center that is centrally located for its eight retail outlets. It will most likely employ which of the following tools of analysis? a. assembly line balancing b. loaddistance analysis c. center-of-gravity model d. linear programming
23.
East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings. The four source locations are at coordinates shown below. Also, the volume from each source is provided. What is the center of gravity?
Athens, Texas Beaumont, Texas Carthage, Texas Denton, Texas
X-coordinate
Y-coordinate
Volume
30 20 10 50
30 10 70 50
150 350 100 200
a. X = 28.125; Y = 31.25
X = 22,000; Y = 24,000 c. X = 27.5; Y = 40 d. center of gravity = 28 e. none of the above
b.
24.
Production and/or shipping costs are always considered in which of the following location decision methods? a. factor rating method b. transportation method c. locational break-even analysis d. center-of-gravity method
25.
The transportation method, when applied to location
analysis a. minimizes total fixed costs b. minimizes total production and transportation costs c. maximizes revenues d. minimizes the movement of goods 26.
Which of the following are not among the eight components of revenue and volume for the service firm? a. quality of the management b. shipment cost of finished goods
c. purchasing power of the customer-drawing area d. uniqueness of the firm's and the competitor's locations e. competition in the area 27.
Which of the following are among the eight components of revenue and volume for the service firm? a. uniqueness of the firm's and the competitor's locations b. quality of the competition c. quality of management d. purchasing power of the customer-drawing area e. all of the above
28.
Traffic counts and purchasing power analysis of drawing area are techniques associated with a. an industrial location decision b. a manufacturing location decision c. a retail or professional service location decision d. the factor rating method e. the transportation method
29.
LaQuinta Motor Inns has a competitive edge over its rivals because it a. uses regression analysis to determine which variables most influence profitability b. picks better locations than its rivals c. picks larger locations than its rivals d. builds only along Interstate highways e. all of the above
30.
Traffic counts and demographic analysis of drawing areas are associated with a. industrial location decisions b. manufacturing location decisions c. service location decisions d. the transportation method
31. Which one of the following factors does not affect the volume and revenue for a service firm? a. affluence of customer drawing area b. competition in the area c. physical qualities of facilities and neighboring businesses d. quality of the competition e. environmental regulations 32.
Location analysis techniques typically employed by service organizations include a. factor rating method b. center of gravity method c. purchasing power analysis of area d. traffic counts e. all of the above
33.
Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm? a. energy and utility costs b. attitude toward unions c. parking and
access d. cost of shipping finished goods e. labor costs
34.
Which of the following is a location analysis technique typically employed by a service organization? a. purchasing power analysis b. linear programming c. queuing theory d. crossover charts e. cost-volume analysis
35.
A jewelry store is more likely than a jewelry manufacturer to consider making a location decision. a. transportation
in
costs b. cost
of raw materials c. parking and access d. climate e. taxes
36.
Location analysis techniques typically employed by manufacturing organizations include a. transportation method b. queuing theory c. correlation analysis and traffic counts d. simulation
37.
Which of these assumptions is not associated with strategies for goods-producing location decisions? a. most major costs can be identified explicitly for each site b. focus on identifiable cost c. high customer contact issues are critical d. intangible costs can be evaluated e. location is a major determinant of cost
38. Which of the following is most likely to affect the location strategy of a manufacturing firm? a. appearance/image of the area b. utility costs c. purchasing power of drawing area d. competition in the area 39.
Geographic Information Systems can assist the location decision by a. automating center of gravity problems b. computerizing factor rating analysis c. combining geography with demographic analysis d. updating transportation method solutions e. giving good Internet placement for virtual storefronts
Answer Key Chapter 1 : 1C, 2C, 3D, 4D, 5C, 6C, 7D, 8C, 9C, 10C.
Chapter 1
1. a) b) c) d)
Which of the following function is not a core function of an organization? The operation functions The marketing (including sales) function The product/service development function The accounting & finance function
2. Most operations produce a mixture of both products & services. Which of the following businesses is closet to producing “pure” services? a) Steel company b) A Restaurant c) Counselor/therapist d) IT company
3.
Which of the following activities is not a direct responsibility of operations management? a. Planning & controlling the operations b. Designing the operation’s products, services & processes c. Developing an operations strategy for the operation d. Determining the exact mix of products & services that customers will want
4. A service encounter includes a. Face-to-face interaction b. Customers and a building c. Customers and advertising d. All of the above
5. Which a. b. c. d.
function typically employs more people than any other functional area? Information Systems Finance Operations Marketing
6. The inputs to a transformation process include all of the following except a. Materials b. People c. Assembly d. Information 7. Characteristics of services include which of the following?
a. b. c. d.
Close proximity to the customer Simultaneous production and consumption Inability to inventory All of the above
8. Which of the following would not be normally considered as a key feature of Operations Management? a. Operations is the part of an organization which creates wealth through the management of the transformation process b. World class Operations can give an organization competitive advantage c. Most new technology is implemented in Operations areas d. Operations is the area of a business where most people work e. Operations researches mathematical techniques for optimizing processes
9. Which of the following is the least likely decision to be made by Operations Managers? a. How much capacity is required to balance demand b. How to use quality techniques to reduce waste c. Deciding which market areas to manufacture products for d. Selecting the location and layout of a facility e. Designing and improving the jobs of the workforce
10. Which of the following is not a key activity of an operations manager? a. Understanding the needs of customer b. Continually learning c. Managing cash flows d. Exploiting technology to produce goods and services
Answers Key Chapter 2: 1 A, 2 C, 3 D, 4 B, 5 B, 6 B, 7 A, 8 D, 9 A, 10 B. 1. An assembly line is an example of a. a product layout b. a process layout c. a fixed position layout d. an intermittent organization
2. Which of the following characteristics is most typical of a continuous manufacturing organization? a. The firm manufactures customized product. b. The firm has a low volume of production c. The firm has a relatively low unit cost of production d. The firm creates many different products with many different characteristics 3. Layout planning is required because of (i) Efficient operations (ii) Accidents or safety hazards (iii) New products or services (iv) Morale problem
b. i & ii c. ii & iv d. i & iii e. ii, iii & iv
4. Which type of processing system tends to produce the most product variety? a. Assembl y b. job shop c. Batch d. Continuous
5. A production line is to be designed for a job with three tasks. The task times are 0.3, 1.4 & 0.7 minutes. The minimum cycle time in minutes is a. 0.3 minutes b. 1.4 minutes c. 0.7 minutes d. 2.4 minutes
6. A layout is an arrangement based on the sequence of operations that are performed during the manufacturing of a good or the delivery of a service. a. Group b. Process c. Product d. Fixed position
7. Which a. b. c. d.
one of the following fits better with a process focus? Skilled workers Standardization Specialized equipment Little work-in-process inventories
8. The location decision is both a a. Fundamental; frequent b. Easy; frequent c. Easy; infrequent d. Fundamental; infrequent
and
decision for many services.
9. Location decisions should consider all of the following except a. Product cost b. Access to markets c. Access to labour skills
d. Local government tax incentives
10. The terms, “general purpose equipment,” “flexible and capable of customizing work” and “wide variety of goods or services” best relate to a. Project b. Job shop c. Flow shop d. Continuous flow
Answers key Chapter 3: 1 C, 2 C, 3 B, 4 D, 5 B End Chapter Quizzes
1. a) b) c) d)
A pull system Requires high levels of finished goods inventory Relies heavily on accurate sales forecasts Waits for customer orders Necessitates standardized products
2. Outsourcing is a decision with a. Unimportant b. Tactical c. Strategic d. Irrelevant
implications.
3. Buying on the basis of price alone risks problems in each of the following categories except a. b. c. d.
Capacity Quality Quantity Supplier
4. Which one is not a factor for make or buy decisions: a. b. c. d.
Cost Quality Labor Plant location
5. JIT is a a. b. c. d.
Push system Pull system Both None of these
Answers Key Chapter 4: 1 A, 2 C, 3 A, 4 D, 5 B, 6 B, 7 D, 8 C, 9 B, 10 C
End Chapter Quizzes
1. Inspection is concerned with a. Standards of quality b. Labor & energy c. Routing & Scheduling d. Modular design & customization
2. A measure of the success of an operation in producing outputs that satisfy customers is a. Efficiency b. Effectiveness c. Quality d. Profitability
3. A measure of the success of an operation in converting inputs to outputs is a. Efficiency b. Effectiveness c. Quality d. Profitability
4.
is the reintroduction of an intermediary in a supply chain. a. Disintermediation b. Re-intermediation c. Channel assembly d. Warehousing
5. Quality assurance is a function responsible for a. Controlling quality b. Managing quality c. Inspection d. Removal of defects
6. The concept of continuous improvement as applied to quality means: a. Employees will continue to get better results b. Processes will be improved by a lot of small improvement c. Processes will be improved through a few large improvements d. None 7. Which of the following is not considered part of Total Quality?
a. b. c. d.
A focus on the customers and stakeholders A process focus Participation and team work Six Sigma
8. Machine down time is an example of which type of quality cost? a. Prevention b. Appraisal c. Internal-failure d. External-failure
9. The cost of quality is a. An expression of an organization’s performance in quality in financial terms b. The difference between customers’ expectations of a product or service and their perceptions of their experience of it. c. A proactive approach towards quality management by seeking to prevent defects ever being produced. d. The inspection and testing of the outputs from a transformation process.
10. Continuous improvement is synonymous with a. Step changes b. BPR c. Kaizen d. The performance-importance matrix Part - C
1. Which of the following methods best considers intangible costs related to a location decision?
a)Weighted method b)Location break-even analysis c)Transportation method d)Assignment method e) None of the above
2. What is the major difference in focus between location decisions in the service sector and in the manufacturing sector?
a)There is no difference in focus b)The focus in manufacturing is revenue maximization, while the focus in service is cost minimization
c)The focus in service is revenue maximization, while the focus in manufacturing is cost minimization d)The focus in manufacturing is on raw materials, while the focus in service is on labour 3. Service / retail / professional location analysis typically has a:
a)Cost focus b)Revenue focus c)Labor focus d)Environmental focus 4. Efficiency is calculated as:
a)Efficiency= Standard time * Actual time b)Efficiency= Standard time/ Actual time c)Efficiency= Actual time/ standard time d) None of the above 5. The factors involved in location decisions include
a)Foreign exchange b)Attitudes c)Labor productivity d)All of the above e) None of the above 6. Industrial location analysis typically has a a)Cost
focus
b )Revenue focus c)Labor focus
d)Environmental focus
7.
Hotel chain find regression analysis useful in site location a)True b)False
8. The telemarketing industry seeks locations that have
a)Good electronic movement of data b)Low cost labour c)Adequate availability of labour d)All of the above
9.
Factors affecting location decisions include
a)Proximity to markets, proximity to suppliers, proximity to athletic facilities b)Site costs, transportation availability, labour availability c)Average age of labour force, labour costs, and number of females in college d)Utility costs, zoning, altitude of city e)All of the above 10. An aggregate plan for a manufacturing firm includes consideration of:
a)Production rates b)work-force levels c)Inventory holdings 11. A service firm's aggregate plan links the firm's strategic goals and objectives with detailed operational plans called:
a)Production plan b)Staffing plan c)Work-force schedule d) None of the above 12. Utilization is calculated as:
a)Utilization = Actual hours*Scheduled available hours b)Utilization = Actual hours/ Scheduled available hours c)Utilization = Actual hours+Scheduled available hours d) None of the above 13. Which of the following statements does NOT apply to a production plan?
a)Plans are consistent with company's strategic goals and objectives b)Enables the assessment of financial and physical resource needs without excessive detail c)Serves as a bridge between the strategic and operational plans d)Provides a view of detailed work-force schedules 14. The time horizon for an aggregate plan is typically:
a)0 - 3 months b)3 -18 months c)24 - 60 months
d) None of the above 15. A for-profit service may expect to encounter which of the following sequence of plans?
a)Business plan; staffing plan; work-force schedule b)Business plan; production plan; work-force schedule c)Financial plan; staffing plan; master production schedule d)Annual plan; production plan; master production schedule
16. The operations area input to the aggregate plan includes:
a)Demand forecasts b)Cost data c)work-force capacities d)Product design changes 17. Aggressive alternatives for coping with demand requirements include:
a)Anticipation inventory b)Creative pricing c)Employee hiring and layoffs d)Use of subcontractors 18. A reactive strategy that is sometimes called the capacity strategy may be characterized as: a) Chase #1: vary work-force level to match demand
b)Chase #2: vary output rate to match demand c)Level #1: constant work-force level d)Level #2: constant output rate 19. Planned capacity is:
a)Planned capacity = Demonstrated capacity * Efficiency * Utilization factor b)Planned capacity = Designed capacity * Efficiency / Utilization factor c)Planned capacity = Designed capacity * Efficiency * Utilization factor d) None of the above 20. The aggregate planning strategy that is most likely to impact the productivity of manufacturing workers, adversely, is:
a)Hiring of temporary workers b)Use of overtime c)Layoff of workers d)Building anticipation inventory 21. A linear programming model CANNOT be used when which of the following are true?
a)An optimal production plan is desired b)The values of decision variables are fractional c)A set of linear constraints may be defined d)Cross product relationships exist between two or more decision variables
22.
Basic element of operations Management is:
a)Customer demand b)Operating system/Process c)Process capacity d)All of the above 23. The transportation method may be used to determine the costs of alternative strategies for anticipation inventory when which of the following data are available?
a)work-force capacity per planning period b)Aggregate demand per planning period c)Beginning inventory d)All of the above 24. Which of the following statements are true about anticipation inventory?
a)Inventory increases during periods of light demand b)Use of anticipation inventory is a reactive alternative to arrive at an acceptable aggregate plan c)Increase in anticipation inventory leads to increases in pipeline inventory d)Both a and b 25. When following a utilization strategy, which alternative relies on external sources of production?
a)Overtime/undertime b)Subcontracting c)Back orders d)Stock outs
26.A major department store initiates a business plan that gets translated into an operational plan called a
a)Production plan b)Staffing plan c)Master production schedule d)Work-force schedule
27. An appliance manufacturer initiates a business plan that gets translated into an operational plan called a
a)Production plan b)Staffing plan c)Master production schedule d)Work-force schedule 28. Which one is not a factor for make or buy decisions:
a)Cost b)Quality c)Labor d)Plant location 29. Which one is correct?
a)Designed capacity > Planned capacity > Demonstrated capacity b)Designed capacity > Demonstrated capacity > Planned capacity c)Designed capacity = Demonstrated capacity > Planned capacity d)All of the above 30. Plant Productivity is:
a)Productivity = Inputs/Outputs b)Productivity = lnputs*Outputs c)Productivity = Outputs//lnputs d) None of the above 31. A service encounter includes
a)Face-to-face interaction b)Customers and a building c)Customers and advertising d)All of the above 32. Which function typically employs more people than any other functional area?
a)Information Systems b)Finance c)Operations d)Marketing
33. The inputs to a transformation process include all of the following except
a)Materials b)People c)Assembly d)Information 34. An assembly line is an example of
a)A product layout b)A process layout c)A fixed position layout d)An intermittent organization 35. Which of the following characteristics is most typical of a continuous manufacturing organization?
a)The firm manufactures customized product. b)The firm has a low volume of production c)The firm has a relatively low unit cost of production d)The firm creates many different products with many different characteristics 36. Which type of processing system tends to produce the most product variety?
a)Assembly b)Job shop c)Batch d)Continuous
Buying on the basisQuizzes of price alone risks problems in each of the following categories End37.Chapter except
a)Capacity b)Quality c)Quantity d)Supplier 38.Which one is not a factor for make or buy decisions: a)Cost b)Quality c)Labor d)Plant location 39JIT is a a)Push system b)Pull system c)Both d) None of these 40. The word management in quality assurance describes many different functions, encompassing a policy management a)Policy Management b)HRM, Safety control c)Component control & management of other resources d) None of the above
Chapter 9
Product, Services, and Branding Strategies
Multiple Choice
If you are lookingQuizzes for enlightenment in all the wrong places, _____ companies are eager End1. Chapter to help. Feeling good is the new religion. These companies are the newest of the new prophets, turning the old notion of hope in a jar on its head. a. auto b. cosmetics c. toy d. food (b; Moderate; p. 275)
2.
Tony and Tiny have a _____ company with a mission statement: “To aid in the evolution of human consciousness.” We think color therapy is going to be the new medicine,” said Tony. a. auto b. cosmetic c. toy d. food (b; Moderate; p. 276)
3.
At the 5S store in SoHo, you buy things that are “energizing,” “nurturing,” or “adoring.” Here are products that are not intended to make you look better, but to make you act better, feel better, and be a better person. What kind of a store is this? a. food b. toy c. electronics d. cosmetics (d; Easy; p. 276)
4.
_____, the General Motors of the cosmetics world, has a passionately held belief that the appeal is first the spirituality, and then the products. a. Avon Company b. Heaven Sent Company c. Estee Lauder Companies d. Proctor and Gamble (c; Challenging; p. 276)
5.
The cosmetic’s image, its promises and positioning, its ingredients, its name and package, the company that makes it, the stores that sell it—all become a part of the total cosmetic product. What is one thing they do not try to sell? a. lifestyle b. self-expression
c. service-profit chain End Chapter Quizzes d. achievement (c; Easy; p.276)
6.
We define a _____ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. a. private brand b. service variability c. service d. product (d; Easy; p. 276)
7.
_____ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. a. Line extensions b. Services c. Brands d. Consumer products (b; Easy; p. 276)
8.
Product is a key element in _____. At one extreme, it may consist of pure tangible goods or at the other extreme pure services. a. market offering b. brand equity c. brand extension d. co-branding (a; Easy; p. 277)
9.
Many companies are moving to a new level in creating value for their customers. They are developing and delivering total customer experiences. Whereas products are tangible and services are intangible, experiences are _____. a. product quality b. memorable c. unsought product d. internal marketing (b; Moderate; p. 277)
End Chapter Quizzes 10. Product planners need to think about products and services on three levels. Each level adds more customer value. The most basic level is the _____, which addresses the question, “What is the buyer really buying?” a. actual product b. augmented product c. core benefit d. co-branding (c; Challenging; p. 279)
11. Product planners need to think about products and services on three levels. The third level is that the product planners must build on a(n) _____ around the core benefit and actual product by offering additional consumer services and benefits. a. augmented product b. brand equity c. brand extension d. industrial product (a; Challenging; p. 279)
12. Product planners must design the actual product and find ways to _____ it in order to create the bundle of benefits that will provide the most satisfying customer experience. a. core benefit b. package c. brand d. augment (d; Challenging; p. 279)
13. Products and services fall into two broad classes based on the types of consumers that use them. Which is one of these broad classes? a. industrial products b. brand equity c. co-branding d. brand extension (a; Moderate; p. 281)
14. _____ are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products. a. Services b. Consumer products c. Line extensions
d. Industrial products End(b; Chapter Quizzes Easy; p. 280)
15. _____ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons. a. Shopping products b. Brands c. Services d. Industrial Products (a; Moderately; p. 280)
16. _____ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. a. Shopping products b. Unsought products c. Specialty products d. Industrial Products (c; Moderate; p. 280)
17. _____ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts. a. Specialty products b. Line extensions c. Unsought products d. Shopping products (c; Easy; p. 281)
18. _____ are those products purchased for further processing or for use in conducting a business. a. Unsought products b. Specialty products c. Shopping products d. Industrial products (d; Easy; p. 281)
End Chapter Quizzes 19. The three groups of industrial products and services include all of the following except _____. a. materials and parts b. capital items c. maintenance and operations d. supplies and services (c; Moderate; p. 281)
20. One of the three groups of industrial products includes materials and parts. Which is not one of the material parts? a. farm products such as wheat b. natural products such as iron ore c. nonraw materials d. petroleum (c; Easy; p. 281)
21. Manufactured materials and parts are sold directly to _____. Price and service are the major marketing factors; branding and advertising tend to be less important. a. consumers b. industrial users c. brand extensions d. co-branders (b; Challenging; p. 281)
22. _____ are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment. a. Materials b. Parts c. Capital items d. Specialty products (c; Moderate; p. 281)
23. Which of the following capital items is not considered an accessory part of equipment? The billing department needs to know so they can be classified correctly.
a. buildings End Chapter Quizzes b. hand tools c. lift trucks d. desks (a; Moderate; p. 281)
24. The final group of business products is _____ and _____. These include paper, pencils, lubricants, paint, nails, and brooms. a. supplies; services b. capitals; installations c. raw materials; farm products d. specialty products; unsought products (a; Easy; p. 282)
25. _____ consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization. a. Person marketing b. Organization marketing c. Internal marketing d. Service variability (b; Challenging; p. 282)
26. What is a major tool companies use to market themselves to various publics — such as General Electric states, “We bring good things to life”? a. person marketing b. corporate image advertising c. product quality d. product line (b; Challenging; p. 282)
27. _____ consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.
a. Corporate image advertising End Chapter Quizzes b. Organization marketing c. Person marketing d. Social marketing (a; Moderate; p. 282)
28. _____ involves activities undertaken to create, maintain, or change attitudes towards particular cities, states, and regions. Texas advertises “it’s like a whole other country.” a. Idea marketing b. Place marketing c. Social marketing d. Interactive marketing (b; Easy; p. 282)
29. _____ can also be marketed. In one sense, all marketing is the marketing of this. It can be specific such as Crest toothpastes “create smiles every day.” a. Co-branding b. Internal marketing c. Ideas d. Unsought products (c; Moderate; p. 283)
30. _____ is defined as the use of commercial marketing concepts and tools in programs designed to influence individual’s behavior to improve their well-being and that of society. a. Unsought product b. Internal marketing c. Social marketing d. Product line (c; Easy; p. 283)
31. Marketing efforts, which include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are called _____. a. specialty product b. social marketing c. shopping product
d. consumer product End(b; Chapter Quizzes Moderate; p. 283)
32. The Ad Council of America has developed dozens of _____ advertising campaigns, including classics such as “Smoky Bear,” “Keep America Beautiful,” and “Only You Can Prevent Forest Fires.” a. social b. brand equity c. service d. product line (a; Moderate; p. 282)
33. Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by _____ such as quality, features, and style and design. a. private brand b. product attributes c. consumer product d. product mix (b; Challenging; p. 283)
34. _____ is one of the marketer’s major positioning tools. It has a direct impact on product or service performance; thus, it is closely linked to customer value and satisfaction. a. Packaging b. Product quality c. Social marketing d. Specialty product (b; Easy; p. 283)
35. _____ is an approach in which all the company’s people are involved in constantly improving the products, services, and business processes. a. Product quality b. Brand equity c. Total quality management d. Specialty product (c; Easy; p. 284)
36. You have just read an article on the latest research about product quality. You want to
tell your supervisor that product quality has two dimensions. End Chapter Quizzes dimensions?
What is one of these
a. consistency b. brand c. convenience product d. specialty product (a; Easy; p. 284)
37. Beyond quality level, high quality also can mean high levels of quality consistency. Here, product quality means _____ — freedom from defects and consistency in delivering a targeted level of performance. a. private brand b. product quality c. total quality management d. conformance quality (d; Challenging; p. 284)
38. A product can be offered with varying _____. A stripped-down model, one without any extras, is the starting point. a. co-branding b. features c. product quality d. service variability (b; Easy; p. 284)
39. The company periodically surveys buyers who have used a product and ask questions such as, “Which specific features of the product do you like the most?” The company can then assess each feature’s _____ to customers versus its _____ to the company. a. cost; line extension b. cost; service c. value; cost d. service; line extension (c; Challenging; p. 284)
40. A sensational _____ may grab attention and produce pleasing aesthetics, but it does not necessarily make the product perform better. a. design b. style
c. variable End Chapter Quizzes d. service-profit chain (b; Moderate; p. 284)
41. _____ is more than skin deep—it goes to the very heart of the product. It contributes to a product’s usefulness as well as to its looks. a. Style b. Design c. Packing d. Brand (b; Easy; p. 284)
42. Good style and design can do many things. What is one thing it cannot do? a. attract attention b. improve product performance c. cut production costs d. cause unsought product reputation (d; Easy; p. 284)
43. A(n) _____ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service. a. service b. brand c. co-branding d. internal marketing (b; Easy; p. 285)
44. _____ involves designing and producing the container or wrapper for a product. a. Packaging b. Product line c. Service d. Branding (a; Easy; p. 286)
45. Like New Products wants to improve its packaging after reading customer responses to its customer opinion poll. Which is not a function of packaging? a. Its purpose is to contain and protect the product. b. It contains the brand mark. c. It protects children. d. It determines product quality.
Moderate; p. 286) Quizzes End(d; Chapter 46. At the very least, the _____ identifies the product or brand. It might also describe several things about the product. a. line extension b. social marketing c. label d. specialty product (c; Easy; p.288)
47. Labels may mislead customers, fail to describe important ingredients, or fail to include needed safety warnings. As a result, several federal and state laws regulate labeling. The most prominent is the _____. a. Co-branding Act of 1972 b. Labeling Act of 1970 c. Packaging Act of 1968 d. Fair Packaging and Labeling Act (d; Easy; p. 288)
48. _____ requires sellers to provide detailed nutritional information on food products, and recent sweeping acts by the Food and Drug Administration regulate the use of healthrelated terms such as low-fat, light, and high fiber. a. Fair Packaging and Labeling Act of 1966 b. The Nutritional Labeling and Educational Act of 1990 c. Labeling Act of 1970 d. Packaging Act of 1970 (b; Moderate; p. 288)
49. Customer service is another element of product strategy. The first step is to survey customers periodically to asses the value of current services and to obtain ideas for new ones. From this careful monitoring, Cadillac has learned that buyers are very upset by repairs that are not done correctly the first time. What is the name of these types of services? a. brand equity services b. product support services c. social marketing services d. unsought product services (b; Challenging; p. 288)
50. A _____ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.
a. product line Quizzes End Chapter b. line extension c. private brand d. convenience product (a; Moderate; p. 289)
51. Berkowitz Piano Company can lengthen its product line in one of two common ways. Which is one of these ways that might prove productive? a. internal marketing b. line filling c. product mix d. social marketing (b; Easy; p. 289)
52. An alternative to product line stretching is _____ — adding more items within the present range of the line. There are several reasons for doing this; some are to reach for extra profits, satisfy dealers, use excess capacity, and to plug holes to keep out competitors. a. product mix b. interactive marketing c. product line filling d. co-branding (c; Challenging; p. 289)
53. An organization with several product lines has a _____. This consists of all the product lines and items that a particular seller offers for sale. a. product mix b. brand line c. consumer mix d. packaging mix (a; Moderate; p. 290)
54. Product mix _____ refers to the number of different product lines the company carries. Procter & Gamble markets 250 brands organized into many product lines. a. length b. height c. width d. perimeter (c; Moderate; p. 290)
55. Product line _____ refers to the number of versions offered of each product in the line.
Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking End Chapter Quizzes Soda formulations. a. length b. depth c. height d. width (b; Challenging; p. 290)
56. The _____ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. a. depth b. length c. width d. consistency (d; Moderate; p. 290)
57. A company can increase its business in four ways. Which is not one of these ways? a. It can add new product lines, thus widening its product mix. b. It can lengthen its existing product lines. c. It can add more versions of each product and thus deepen its product mix. d. The company can discontinue some of its lines. (d; Easy; p. 291)
58. Some analysts see _____ as the major enduring asset of a company, outlasting the company’s specific products and facilities. a. brands b. convenience products c. specialty products d. unsought products (a; Easy; p. 291)
59. Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna even though the Kroger tuna costs $0.15 less per can. This is known as brand _____. a. extension b. equity c. specialty
d. service End(b; Chapter Quizzes Moderate; p. 291)
60. The fundamental asset underlying brand equity is _____ — the value of the customer relationships that the brand creates. A powerful brand is important, but what it really represents is a set of loyal customers. a. customer mix b. customer equity c. line equity d. service variability (b; Challenging; p. 291)
61. Marketers need to position their brands clearly in target customers minds. They can position brands at any of three levels. At the lowest level, they can position the brand on _____. a. interactive marketing b. internal marketing c. product attributes d. strong beliefs and values (c; Moderate; p.292)
62. Marketers need to position their brands clearly in target customers’ minds. The strongest brands go beyond attribute or benefit positioning. They are positioned on _____. a. desirable benefit b. good packaging c. service inseparability d. strong beliefs and values (d; Easy; p. 292)
63. Desirable qualities for a brand name include all of the following except _____. a. It should suggest something about the product’s benefits and qualities. b. It should be easy to pronounce, recognize, and remember. c. The brand should almost always be a long word to get attention. d. The name should translate easily into foreign languages.
Challenging; pp. 292-293) End(c; Chapter Quizzes
64. Manufacturers’ brands have long dominated the retail scene. In recent times, however, an increasing number of retailers and wholesalers have created their own _____ (or store brands). a. slotting fees b. private brands c. specialty product d. service variability (b; Easy; p. 293)
65. In the so-called battle of the brands between manufacturers’ and private brands, _____ have many advantages. They control what products they stock, where they go on the shelf, and which ones they will feature in local circulars. a. unsought products b. convenience products c. specialty products d. retailers (d; Moderate; p.293)
66. Most retailers also charge manufacturers _____ — payments demanded by retailers before they will accept new products and find a place for them on the shelves. a. slotting fees b. private fees c. line extension fees d. product line fees (a; Easy; p. 294)
67. Most manufacturers take years and spend millions to create their own brand names. However, some companies _____ names or symbols previously created by other manufacturers, names of well-known celebrities, and/or characters from popular movies and books. For a fee, any of these can provide an instant and proven brand name. a. service b. license c. market d. package
Moderate; p. 294) Quizzes End(b; Chapter
68. _____ occurs when two established brand names of different companies are used on the same product. a. Brand extension b. Brand equity c. Co-branding d. Internal marketing (c; Moderate; p. 295)
69. In most _____ situations, one company licenses another company’s well-known brand to use in combination with its own. a. brand extension b. brand equity c. co-branding d. internal marketing (c; Easy; p. 295)
70. As one Nabisco manager puts it, ”Giving away your brand is a lot like giving away your _____ — you want to make sure everything is perfect.” a. package b. product line c. child d. product quality (c; Easy; p. 296)
71. A company has four choices when it comes to developing brands. What is not one of those choices? a. line extension b. brand extension c. multibrands d. width and depth extension (d; Challenging; p. 296)
_____ occur(s) when a company introduces additional items in a given product category End72.Chapter Quizzes under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. a. Line extensions b. Product mix c. Interactive marketing d. Service variability (a; Moderate; p. 296)
73. One risk of _____ is that sales may come at the expense of other items in the line. It works best when it takes sales away from competing brands, not when it “cannibalizes” the company’s other items. a. brand extension b. line extension c. packaging d. social marketing (b; Moderate; p. 296)
74. A _____ involves the use of a successful brand name to launch new or modified products in a new category. a. brand equity b. product line c. brand extension d. private brand (c; Moderate; p. 296)
75. _____ offer(s) a way to establish different features and appeal to different buying motives. It also allows a company to lock up more reseller shelf space. Or the company may want to protect its major brand by setting up flanker or fighter brands. a. New brands b. Interactive marketing c. Product quality d. Multibrands (d; Challenging; p. 297)
76. Retailers have become concerned that there are already too many brands, with too few differences between them. Thus, Procter & Gamble and other large consumer- product marketers are now pursuing _____ strategies—weeding out weaker brands and focusing
their marketing dollars only on brands that can achieve the number-one or number-two End Chapter Quizzes market share positions in their categories. a. megabrand b. service inseparability c. social marketing d. unsought product (a; Moderate; p. 297)
77. Companies must carefully manage their brands. First, the brand’s positioning must be continuously communicated to consumers. Major brand marketers often spend huge amounts on advertising to create brand _____ and to build preference and loyalty. a. extension b. awareness c. packaging d. internal marketing (b; Easy; p. 297)
78. Advertising campaigns can help to create name recognition, brand knowledge, and maybe even some brand preference. However, the fact is that brands are not maintained by advertising but by the _____. a. marketing b. line extensions c. brand experience d. product mix (c; Easy; p. 297)
79. The brand’s positioning will not take hold fully unless everyone in the company lives the brand. Therefore the company needs to train its people to be _____. a. customer-centered b. specialty-centered c. convenience-centered d. line-extension-centered (a; Moderate; p. 298)
80. The brand’s positioning will not take hold fully unless everyone in the company lives the brand. This suggests that managing a company’s brand assets can no longer be left only to _____. a. product line b. product mix c. brand extension d. brand managers
Easy; p. 298) End(d; Chapter Quizzes 81. Canada Dry and Colgate-Palmolive have appointed _____ managers to maintain and protect their brand’s images, associations, and quality, and to prevent short-term actions by over-eager brand managers from hurting the brand. a. product line b. service c. brand equity d. brand extension (c; Moderate; p. 298)
82. The recent wave of corporate mergers and acquisitions has decided, “We need a master brand to leave all our old names behind.” What is this called? a. product mix b. rebranding c. brand equity d. consumer branding (b; Easy; p. 298)
83. Building a(n) _____ and re-educating customers can be a huge undertaking for a company. It cost tens of millions of dollars just for a special four-week advertising campaign to announce the new name, followed by considerable ongoing advertising expenses to the Verizon Company. a. product mix b. service intangibility c. new image d. internal marketing (c; Easy; p. 298)
84. A company must consider four special service characteristics when designing marketing programs. Which is not one of these characteristics? a. intangibility b. inseparability c. perishability d. interactive marketing (d; Challenging; p. 298)
85. _____ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. a. Service inseparability b. Service variability c. Service intangibility
d. Service perishability End(c; Chapter Quizzes Moderate; p. 299)
_____ means that Quizzes services cannot be separated from their providers, whether the End86.Chapter providers are people or machines. a. Service intangibility b. Service inseparability c. Service variability d. Service perishability (b; Moderate; p. 299)
87. JB Auto Detailing’s customers have noticed that the quality of services depends on who provides them as well as when, where, and how they are provided. What have the customers noticed? a. service intangibility b. service inseparability c. service variability d. service perishability (c; Moderate; p. 299)
88. A barber cannot inventory haircuts. _____ means that services cannot be stored for a later sale or use. a. Service intangibility b. Service inseparability c. Service variability d. Service perishability (d; Easy; p. 299)
89. In a product business, products are fairly standardized and can sit on shelves waiting for customers. But in a service business, front-line service employees and the support processes backing these employees participate in _____. a. interaction b. co-branding c. industrial marketing d. internal marketing (a; Challenging; p. 300)
90. _____ means that the service firm must effectively train and motivate its customercontact employees and supporting service people to work as a team to provide customer satisfaction. a. Service inseparability b. Service intangibility c. Service variability d. Internal marketing
Moderate; p. 301) Quizzes End(d; Chapter
True – False
91. Estee Lauder Company is the General Motors of the cosmetics world. (True; Easy; p. 276)
92. The cosmetic company Aveda sells more than just a tangible product. They sell lifestyle, self-expression, exclusivity, and spirituality. (True; Easy; p. 276)
93. We define a service as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. (False; Easy; p. 276)
94. Co-branding is a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Examples are banking, hotel, airline, retail, tax preparation, and home repair. (False; Moderate; p. 276)
95. Sony must offer more than just a camcorder. It must provide consumers with a complete solution to their picture taking problems. This is called an augmented product. (True; Challenging; p. 279)
96. Unsought products are products and services that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort. (False; Easy; p. 281)
97. Shopping products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style. End(True; Chapter Quizzes Moderate; p. 280)
98. Programs that include public health campaigns to reduce smoking, alcoholism, drug abuse, and overeating are examples of the social idea known as social marketing. (True; Easy; p. 282)
99. Style is a larger concept than design. Design describes the appearance of a product. (False; Moderate; p. 284)
100. The brand of a product can determine its consumer value. (True; Moderate; p. 285)
101. Packaging does not include the material necessary to ship a product. (False; Easy; p. 286)
102. Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics. (False; Moderate; p. 288)
103. Quaker® produces a variety of cereals. This variety is called its product line. (True; Moderate; p. 289)
104. A company’s product mix has four important dimensions: width, length, depth, and consistency. (True; Easy; p. 290)
105. Dove marketers can go beyond the brand’s cleansing cream attributes and talk about the resulting benefit of softer skin. This is known as product attributes in brand positioning. (False; Challenging; p. 292)
One important quality for a brand name is that it should translate easily into foreign End106.Chapter Quizzes languages. (True; Easy; p. 293)
107. An increasing number of retailers and wholesalers have created their own brands —such as Wal-Mart offers Sam’s Choice beverages and food products. This is called co branding. (False; Challenging; p. 293)
108. When a company introduces a new brand name in the same product category it is called line extension. (False; Challenging; p. 296)
109. Customers come to know a brand through a wide range of contacts and touch points. These include word of mouth, personal interactions with company people, telephone interactions, and company Web pages. Many brands are not maintained by advertising but by brand experience. (True; Easy; p. 297)
110. An example of service variability is that within a given Marriot hotel, one registrationdesk employee may be cheerful and efficient, whereas another may be unpleasant and slow. (True; Challenging; p. 299)
111. Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided. (False; Challenging; p. 299)
112. In a product business, products are fairly standardized and can sit on shelves waiting for customers. In a service business, the customer and front-line service employee interact to create the service. (True; Easy; p. 300)
113. The service-profit chain means the set of all product lines and items that a particular seller offers for sale. (False; Challenging; p. 300)
End Chapter Quizzes 114. A big part in managing service differentiation is in the company’s service delivery. (True; Moderate; p. 302)
115. Customer retention is perhaps the best measure of quality—a service firm’s ability to hang on to its customers depends on how consistently it delivers value to them. (True; Easy; p. 303)
116. Managing service productivity can take place when a company increases the quality of their service by giving up some of their output. (True; Moderate; p. 303) 117. The government cannot prevent companies from adding products through acquisitions if the effect threatens to lessen competition. (False; Moderate; p. 304)
118. Internal marketers face special challenges. They must figure out what products to introduce to other countries. (False; Moderate; p. 304)
119. In international product and service marketing it is important to know what different colors mean to different countries. (True; Easy; p. 305)
120. In international product and service marketing, many banks were afraid to go global and held off for quite a while. (False; Moderate; p. 305)
121. Retailers such as Wal-Mart, Kmart, Toys “R” Us, Office Depot, and Disney are among the first businesses to go global. (False; Challenging; p. 306)
122. Service companies wanting to operate in other countries are usually welcomed with open arms. Manufacturers usually face restrictions when attempting to sell their products in
another country. Quizzes End(False; Chapter Challenging; p. 306)
Essay
123. Products and services fall into two broad classes based on the types of consumers that use them. Name these two broad classes and describe how they are different from each other.
Consumer products—those bought by final consumers—are usually classified according to consumer shopping habits. Industrial products—purchased for further processing or for use in conducting a business—include materials and parts. (Moderate; p. 276)
124. Name and describe three decisions that companies make regarding their individual products and services, product lines, and product mixes.
Product attribute decisions involve product quality, features, and style and design. Branding decisions include selecting a brand name and developing a brand strategy. Packaging provides many key benefits, such as protection, economy, convenience, and promotion. There are additional answers to this question also. (Easy; p. 284-285)
125. A manufacturer has four brand sponsorship options. Describe what they are. It can launch a manufacturer’s brand (or national brand). It can sell to resellers who use a private brand. It can market licensed brands. It can join forces with another company to co brand a product. (Challenging; pp. 293-296)
126. A company has four choices when it comes to developing brands. Describe what they
are. End Chapter Quizzes It can introduce line extensions. The company can introduce brand extension. It can introduce multibrands. It can begin new brands (new brand names in new product categories). (Moderate; pp. 296-297)
127. Services are characterized by four key characteristics. Name and describe these four characteristics. Intangible—they cannot be seen, tasted, felt, heard, or smelled before they are bought. Inseparable—they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Variable—their quality may vary greatly, depending on who provides them and when, where, and how. Perishable—they cannot be stored for later sale or use. (Challenging; p. 299)
128. Good service companies focus attention on both customers and employees. Describe what the service-profit chain and internal marketing are, and how they differ from each other. The service-profit chain links service firm profits with employee and customer satisfaction. Internal marketing by a service firm is to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction. The first deals with employees and customers. The second deals with training employees. (Challenging; pp. 300-301)
129. What are three ways a company manages competitive service differentiation? One solution is to develop a differentiated offer. Another way is that companies can differentiate their service delivery by having more and reliable customer- contact people, by developing a superior physical environment in which the service product is delivered. Service companies can work on differentiating their images through symbols and branding. (Challenging; pp. 302-303)
End Chapter Quizzes 130. Describe two special challenges that international marketers must consider to be successful in marketing to other countries. First, they must figure out what products and services to introduce and in which countries. Then, they must decide how much to standardize or adapt their products and services for world markets. (Challenging; pp. 304-306)
