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Model-Based Product Line Engineering
(MBPLE): The Feature-Based Path to Product
Lines Success
Product positioning starts with company engineers or product managers, not target customers. - answer-False
The extent that a market share grows is directly dependent on the strength of a business's product positioning and marketing effort. - answer-True
A weak product position with a strong marketing effort will fail to deliver the desired level of market share. - answer-True
In a price-sensitive market, product positioning generally requires a higher price because this is the only source of differentiation that target customers value. - answer-False
OrganicMeals Inc. is an American firm that manufactures frozen, vegetarian burgers made from organic ingredients under the brand name VegDelite. The firm markets a core product, the Chipotle Veg Burger, under the VegDelite
brand. After success of its core product, the firm adds other burgers under the VegDelite brand, such as the Crunchy Garden burger, the Vegan Special burger, and the Spicy Trip burger. In this example, OrganicMeals Inc. uses which of the following strategies?
A) a horizontal brand-line extension strategy
B) a cobranding strategy
C) a new product-market brand extension strategy
D) a vertical brand-line extension strategy
E) a product bundling strategy - answer-D) a vertical brand-line extension strategy
Within the dimensions of product performance, a poor performance in which of the following would be a "quality killer"?
A) features
B) conformance
C) appearance
C) inadequate product line development
D) product or service failures
E) customer dissatisfaction - answer-B) poor record on social issues
Quality aesthetics as a source of differentiation are of value only when all other aspects of quality are met with respect to customer quality expectations.
If a business fails to deliver acceptable or expected levels of serviceability and appearance, an advantage in other dimensions of product performance will not matter. - answer-False
Service can be an important source of differentiation when it comes to positioning strategies. - answer-True
Businesses with a low-cost advantage in markets in which price is an important determinant of customer value can use low prices as a basis for product positioning. - answer-True
The total cost of purchase excludes the customer's ownership costs. - answer- False
A brand-encoding system helps in understanding how to position a product with a brand name for a specific market and desired image. - answer-True
Invented names are company or brand names that create a direct connection to something real and that can be associated with a direct experience. - answer-False
Companies with high brand awareness can more easily introduce new products and enter new markets. - answer-True
An umbrella brand refers to a new product that is a vertical brand extension of the core product. - answer-False
A(n) ________ strategy offers the customer the opportunity to purchase each of the items separately at a sale price or bundled with an additional level of savings.
A) vertical brand extension
B) impure product bundling
C) horizontal brand extension
D) pure product bundling
E) mixed bundling - answer-E) mixed bundling
A(n) ________ strategy involves the sale of two or more products at an overall price that is lower than the total price that a customer would pay to purchase the products separately.
A) impure product bundling
B) vertical brand extension
C) cobranding
D) pure product bundling
E) horizontal brand extension - answer-D) pure product bundling
Which of the following is a product position factor influencing a business's market share?
A) media advertising
B) sales force
C) service quality
D) physical distribution
E) retailing and merchandising - answer-C) service quality
Which of the following service quality dimensions refers to employee competency with respect to knowledge and courtesy?
A) extended services
B) appearance
C) customer empathy
D) service assurance
E) service reliability - answer-D) service assurance
The brand equity of LifeSecure Inc., an American health insurance firm, was diminished when its top executives were subject to money laundering allegations. Which type of brand liability does this best represent?
A) customer dissatisfaction
B) poor product conformance
The price he paid for the computer, software, and accessories was lower than the total price that he would have paid if he had purchased the products separately. In this example, HardDigits Inc. uses which of the following product line extension strategies?
A) product bundling
B) umbrella branding
C) product cobranding
D) product diversification
E) disintermediation - answer-A) product bundling
Mathis Inc. is a home appliance manufacturing firm based in Vermont that sells its products under the brand name GoodHome. The firm initially built a reputation in the household appliances market for its high-quality products. After an extensive market research, the firm used its brand reputation to expand into the home furnishing industry. In this example, Mathis Inc. uses which of the following product line extension strategies?
A) a cobranding extension strategy
B) a horizontal brand-line extension strategy
C) a vertical brand-line extension strategy
D) a product bundling extension strategy
E) a new product-market brand extension strategy - answer-E) a new product- market brand extension strategy
Which of the following is a differentiation and product positioning strategy?
A) bundling and unbundling
B) product elimination
C) brand encoding
D) low cost of purchase
E) product line extensions - answer-D) low cost of purchase
Frosty Inc. is an American firm that manufactures and markets a line of ice creams under the brand name Frosty Delight. Together with Magic Bakes, a popular brand of baking mixes and canned frostings, the firm introduces a line of Frosty Magic Bakes, a line of ice cream cake mixes. The new product line, Frosty Magic Bakes, uses the logos of both Frosty Delight and Magic Bakes. This is an example of ________.
M.L. Manufacturers Inc. is an American clothes manufacturing firm that sells women's fashion apparel under the brand name DressChic. After extensive market research, the firm introduces a line of children's clothes under the brand name Mischief and a line of affordable work wear for women under the brand name DressSmart. In this example, M.L. Manufacturers Inc. uses which of the following strategies?
A) a horizontal brand-line extension strategy
B) a product bundling strategy
C) a cobranding strategy
D) a new product-market brand extension strategy
E) a vertical brand-line extension strategy - answer-A) a horizontal brand-line extension strategy
Which of the following is a brand and product line strategy?
A) brand differentiation
B) bundling and unbundling
C) product differentiation
D) low cost of purchase
E) brand identity - answer-B) bundling and unbundling
Within the dimensions of service quality, which of the following is a "quality enhancer"?
A) appearance
B) reputation
C) performance
D) service reliability
E) customer empathy - answer-E) customer empathy
Which of the following is true about licensing?
A) It refers to the transfer of trademark rights held by one party to another party.
In the context of brand name development, which of the following is true about an invented name?
A) It is associated with an experience.
B) It is based on the names of company founders.
C) It strives to build an association between the brand name and the core function of the brand.
D) It is built from root words and morphemes.
E) It aims to evoke a positive attribute or a feeling. - answer-D) It is built from root words and morphemes.
Which of the following involves the transfer of quality perceptions derived from a core product or brand to product line extensions that use the same brand name?
A) an umbrella branding strategy
B) a mixed bundling strategy
C) a vertical integration strategy
D) a product unbundling strategy
E) a pure product bundling strategy - answer-A) an umbrella branding strategy
Within the dimensions of product performance, which of the following is a "quality driver"?
A) durability
B) reputation
C) reliability
D) conformance
E) serviceability - answer-A) durability
Brand equity is equal to ________.
A) total brand assets divided by total brand liabilities
B) total company assets minus total company liabilities
B) company assets divided by company liabilities
C) company liabilities minus brand liabilities
D) brand assets minus brand liabilities
E) company assets minus company liabilities - answer-E) company assets minus company liabilities
Red Hot Mexican Grill, a chain of Mexican-style casual dining restaurants in America, has traditional Mexican décor throughout the restaurant and the waiters are dressed in Mexican hats. This is best an example of ________.
A) service assurance
B) appearance
C) responsiveness
D) service reliability
E) performance - answer-B) appearance
Which of the following statements is true about branding?
A) A brand name provides customers with a way to quickly comprehend the brand's primary benefits.
B) An internally focused business is best prepared to build a brand identity that would be meaningful to target customers.
C) The first step in developing a brand identity is to focus on product features rather than customer benefits.
D) Functional names refer to brand names that are associated with an experience.
E) A brand-encoding system refers to the measures taken to protect a brand name. - answer-A) A brand name provides customers with a way to quickly comprehend the brand's primary benefits.
In the context of brand name development, ________ names are either built from root words and morphemes or are poetic constructions based on the rhythm or experience of saying them.
A) invented
