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cturers of systems such as razors and ink jet printers use a system of pricing called “twopart pricing”—one price for the disposable products and another for the “hardware.” Answer: False Pages: 388–389 Level of difficulty: Hard89. A pricing system in which there is a “fixed” fee and then a variable “usage” fee is called bundling. Answer: False Page: 389 Level of difficulty: Hard90. Pure bundling occurs when a firm offers goods both individually and in bundles. Answer: False Page: 389 Level of difficulty: Medium91. Cobranding is when two or more wellknown existing brands are bined into a joint product and/or marketed together in some fashion. Answer: True Page: 390 Level of difficulty: Medium92. Ingredient branding can take on a form called “selfbranding” in which the pany advertises its own branded ingredients. Answer: True Page: 391 Level of difficulty: Medium93. Packaging is all the activities of designing and producing the container for a product. Answer: True Page: 393 Level of difficulty: Easy94. Packaging has been called the fifth “P” by marketers because it can be an element of product strategy. Answer: True Page: 392 Level of difficulty: Hard95. Various factors have contributed to the growth of packaging as a “fifth P” and include selfservice, consumer affluence, consumer independence, pany and brand image, and innovation opportunities. Answer: False Pages: 392–393 Level of difficulty: Medium96. Labels can identify the product and must contain legal statements that under various Federal laws cannot be misleading, false, or deceptive. Answer: True Pages: 394–395 Level of difficulty: Medium97. Warranties must be written to be legally enforceable. Answer: True Page: 395 Level of difficulty: Hard98. Warranties are formal statements of expected product performance by the manufacturer. Answer: True Page: 395 Level of difficulty: Easy99. Guarantee’s greatest contribution to a product’s success is that they decrease the buyer’s perceived risk in the purchase of the product. Answer: True Page: 396 Level of difficulty: Hard100. Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market. Answer: False Page: 396 Level of difficulty: HardEssay 101. In planning its market offering, the marketer must address the five product levels of the customer value hierarchy. Describe the “customer value hierarchy” and identify the five levels of product contained within. Suggested Answer: Each layer adds more customer value, and the five levels are: (1) it begins with the core benefit—the service or benefit the customer is really buying。 (2) the basic product—where the marketer has to turns it into the core benefit。 (3) expected product—a set of attributes and conditions buyers normally expect when they purchase this product。 (4) the augmented product—the marketer exceeds customer expectations。 (5) and finally the potential product—which enpasses all the possible augmentations and transformations the product or offering might undergo in the future. These five elements constitute the buyers consumption system. Pages: 372–373 Level of difficulty: Easy102. The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas. List these four main areas of consumer shopping habits and explain what elements are included within. Suggested Answer: The four main areas are: (1) convenience goods that are bought frequently, immediately, and with a minimum of effort。 (2) shopping goods are goods that the consumer in the process of selection and purchase characteristically pares on such bases as suitability, quality, price, and style。 (3) specialty goods, which have unique characteristics, or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort。 and (4) unsought goods, which are those goods that the consumer does not know about or does not normally think of buying. Page: 374 Level of difficulty: Medium103. Industrialgoods can be classified in terms of how they enter the production process and their relative costliness. Explain the three groups of industrial goods. Suggested Answer: The three groups of industrial goods include: (1) material and parts, which are goods that enter the manufacturer’s product pletely. Raw materials (farm and natural products) and manufacturers materials and parts (ponent materials and ponent parts) pose this first group. (2) Capital items are longlasting goods that facilitate developing or managing the finished product, such as machinery (installations and equipment). And (3) supplies and business services, which are shortterm goods and services that facilitate developing or managing the finished product (maintenance and repair and operating supplies) are included here. Business supplies include advisory services and other “services” necessary for the ongoing operation of the business. Pages: 374–376 Level of difficulty: Hard 104. When differentiated, products can then be branded. List the possible ways that physical products can be differentiated. Suggested Answer: Products can be differentiated according to: form, features, performance quality, conformance quality, durability, reliability, reparability, and style. Pages: 376–377 Level of difficulty: Easy105. Explain the concepts of product line width, length, depth, and consistency. Suggested Answer: The width of a product mix refers to how many different product lines the pany carries. The depth of a product mix refers to the total number of items in the mix. The length of a product mix refers to how many variants are offered of each product in the line and is determined by dividing the total number of items by the number of lines. The consistency of the product mi