CHAPTER 7
CRS Questions & Answers
PRODUCT, SERVICES, AND
BRANDING STRATEGY
What is the core benefit for travelers who stay
overnight at hotels?
1. Free continental breakfast and newspaper
2. Relaxation and a good night’s sleep
3. In-room iron, hairdryer, and Internet access
4. Location near the airport
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What is the core benefit for travelers who stay
overnight at hotels?
1. Free continental breakfast and newspaper
2. Relaxation and a good night’s sleep
3. In-room iron, hairdryer, and Internet access
4. Location near the airport
Core benefits address the question, “What is the
buyer really buying?” Room amenities, location,
and the free newspaper and breakfast are part of
the actual and augmented products.
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Luxury goods such as Rolex watches, Porsche
automobiles or expensive crystal are examples
of _____ products.
1. convenience
2. specialty
3. unsought
4. shopping
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Luxury goods such as Rolex watches, Porsche
automobiles or expensive crystal are examples
of _____ products.
1. convenience
2. specialty
3. unsought
4. shopping
Specialty goods such as those listed above are not widely
available at all locations, requiring buyers to travel further
distances and make a special purchase effort.
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The Chicago Tribune purchases a new printing
press for its newspaper. This would be an
example of a(n):
1. Service or supply
2. Part or material
3. Capital item - installation
4. Capital item - accessory
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The Chicago Tribune purchases a new printing
press for its newspaper. This would be an
example of a(n):
1. Service or supply
2. Part or material
3. Capital item - installation
4. Capital item - accessory
Installation items consist of major purchases and
fixed equipment that are used in the production or
operation of the firm’s business.
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Mercedes introduced C-Class cars for $30,000
without hurting its ability to sell other models
priced at $100,000 or more. The new car was
an example of successful:
1. Downward line stretching
2. Sideward line stretching
3. Upward line stretching
4. Product line filling
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Mercedes introduced C-Class cars for $30,000
without hurting its ability to sell other models
priced at $100,000 or more. The new car was
an example of successful:
1. Downward line stretching
2. Sideward line stretching
3. Upward line stretching
4. Product line filling
Mercedes lengthened its product line beyond its current
range with the addition of the C-Class car.
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Avon markets more than 1,300 items and
Kmart stocks more than 15,000 items.
These items are examples of the:
1. Product line
2. Line filling
3. Product mix
4. Line extension
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Avon markets more than 1,300 items and
K-Mart stocks more than 15,000 items.
These items are examples of the:
1. Product line
2. Line filling
3. Product mix
4. Line extension
The product mix consists of all the product lines and
items that a particular seller has to offer for sale.
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The extent to which products in a product mix
are related to each other constitutes a product
mix’s:
1. Depth
2. Width
3. Consistency
4. Match
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The extent to which products in a product mix
are related to each other constitutes a product
mix’s:
1. Depth
2. Width
3. Consistency
4. Match
Consistency refers to how closely products are
related with respect to end use functions,
production requirements, or distribution channels.
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When two companies place their brand names
on the same product, they are _______ the
product.
1. licensing
2. private branding
3. multibranding
4. co-branding
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When two companies place their brand names
on the same product, they are _______ the
product.
1. licensing
2. private branding
3. multibranding
4. co-branding
Co-branding creates great consumer appeal and greater
brand equity and allows companies to enter product
categories they might otherwise have difficulty accessing.
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Equate brand drugs are sold through Wal-Mart
and Sam’s Club stores throughout the U.S. The
Equate brand is an example of a:
1. Private brand
2. Generic brand
3. Licensed brand
4. Manufacturer brand
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Equate brand drugs are sold through Wal-Mart
and Sam’s Club stores throughout the U.S. The
Equate brand is an example of a:
1. Private brand
2. Generic brand
3. Licensed brand
4. Manufacturer brand
Private brands (also called store brands or distributor
brands) are those associated with a particular retailer
and only available at those stores.
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Hotels and resorts charge lower prices in the
off-season to offset the ______________ of
service characteristics.
1. Inseparability
2. Variability
3. Intangibility
4. Perishability
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Hotels and resorts charge lower prices in the
off-season to offset the ______________ of
service characteristics.
1. Inseparability
2. Variability
3. Intangibility
4. Perishability
Unsold hotel rooms cannot be inventoried and stored for
sale at a later time; therefore, lower prices are set during
the off-season to stimulate room demand.
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Which of the following is NOT a part of the
service-profit chain?
1. Internal service quality
2. External service quality
3. Satisfied and productive employees
4. Satisfied and loyal customers
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Which of the following is NOT a part of the
service-profit chain?
1. Internal service quality
2. External service quality
3. Satisfied and productive employees
4. Satisfied and loyal customers
More effective and efficient customer value creation and
service delivery result in the service-profit chain element
called greater service value.
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