Test on Product Decisions in Marketing Management
Product Decisions in Marketing Management: A Student Guide
General test for UNIT 6: Product decisions
12 questions
Question 1: Based on the provided study materials on brand functions, which of the following statements accurately describe benefits a brand offers to sellers?
A. Brands lead to increased effectiveness of marketing plans.
B. Brands provide superior satisfaction to consumers due to prestige or image.
C. Brands enable higher margins for sellers.
D. Brands offer legal protection through trademarks, serving as a competitive advantage.
Explanation: According to the 'BRAND: FUNCTIONS' section in the study materials, benefits for sellers include 'Increased effectiveness of your marketing plans', 'Higher margins', and 'Trademark: offers legal protection Competitive advantage'. 'Superior satisfaction thanks to the prestige or brand image' is listed as a benefit for consumers, not sellers.
Question 2: According to the BCG matrix strategies, which of the following statements is true?
A. Question Mark products require investment to gain share, as there's a risk they could become Dog products.
B. Star products generate a lot of money and require little investment due to their high market share.
C. Cash Cow products are typically eliminated because they don't make much profit and tie up resources.
D. Dog products are where companies should invest to generate growth and improve market position.
Explanation: The study materials state that for Question Mark products, if investment is not made to gain share, there is a risk they will become Dog products. Star products require investment for growth, not little investment. Cash Cow products generate cash and profits, and are not typically eliminated. Dog products are usually to be eliminated, not invested in for growth.
Question 3: According to the study materials, which statement accurately defines a dimension of the product range or portfolio?
A. Range width is the sum of all the products with their different presentations.
B. Range length is the number of lines contained in the portfolio.
C. Line depth is the number of products in a line.
D. Product coherence refers to the total number of models in a product category.
Explanation: The study materials define Line depth as 'number of products in a line.' Range width is 'number of lines contained in the portfolio,' and Range length is the 'sum of all the products with their different presentations.' Product coherence refers to the relationship between product lines, not a dimension based on the number of models.
Question 4: According to the study materials, which elements are categorized under the 'Formal Aspects' level of the product concept?
A. Brand and Packaging
B. Delivery and Warranty
C. Basic Benefits and After-sales Experiences
D. Image and Training
Explanation: The study materials state that 'FORMAL ASPECTS' include 'Brand', 'Packaging', 'Style/Design', and 'Label'. Therefore, 'Brand and Packaging' correctly represent elements categorized under 'Formal Aspects'. 'Delivery', 'Warranty', 'Image', 'Training', and 'After-sales Experiences' are classified under 'ADDITIONAL ASPECTS' or the 'Augmented Product' level, while 'Basic Benefits' represent the foundational level.
Question 5: According to the study materials, which of the following are characteristics of an effective brand name?
A. Briefness
B. Exclusive market share
C. Euphony
D. Internationally applicable
Explanation: The study materials list the characteristics of a brand name as: Briefness, Euphony, Pronounceable, Easy to remember, Suggestive, Positive, Original, Free of registration, and Internationally applicable. Exclusive market share is not mentioned as a characteristic of a brand name.