Marketing 2.06

Light bulbs are made to fit sockets across the U.S. This is an example of which of the following ways that standards are used:

• To establish uniform, consistent products
• To indicate where the product will be sold
• To provide consumers with product information
• To indicate how much the product will cost

How can salespeople use grades and standards?

• To set prices 
• To advertise products
• To meet customer needs
• To develop the product mix

Holiday Inn Express uses the slogan “No excuses, guaranteed” as a money-back promise to guests. This is an example of a ________.

• guarantee on goods and services
• guarantee on service
• warranty on goods
• warranty on service

Giving customers a list of locations at which they can obtain repair or replacement as part of a warranty or a guarantee provides the customer benefit of 

• service information
• legal recourse
• reduced anxiety about purchases
• increased profits

A warranty that covers the entire product is known as a(n) ___________ warranty.

• express
• implied
  
• full
• limited

Two characteristics of a good guarantee are that it should be ________.

• conditional and understandable
• unconditional and understandable
• unconditional and difficult to collect
• conditional and easy to implement

Companies that build a reputation for carrying out the terms of their warranties and guarantees generally have higher sales and more repeat customers, which result in _________________.

• unclear standards for the business
• decreased feedback from customers
• a business-oriented focus
• increased profits

The Magnuson-Moss Warranty Act of 1975 provides that warranties must be _________________.

• interpreted
• developed by consumers
• clearly expressed
• written using complex language

Sam’s new car came with a warranty that ended after 12,000 miles or one year. The warranty covered major parts. This is an example of a(n) __________ warranty.

• full
• limited
• illegal
• implied

What does the following statement illustrate: The product should be four inches long and weigh 14 ounces.

• Warranties
• Grades
• Standards
• Testimonials