Chapter 7

What is the core customer value for travelers who stay overnight at hotels?

• Free continental breakfast and newspaper

• Relaxation and a good night’s sleep

• In-room iron, hairdryer, and Internet access

• Location near the airport

Soft drinks, soap, and magazines are examples of ______ products.

• Convenience

• Specialty

• Unsought

• Shopping

A hospital purchases a new MRI machine costing millions of dollars. This is an example of a:

• Service or supply

• Part or material

• Capital item—installation

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:

• Downward line stretching

• Sideward line stretching

• Upward line stretching

• Product line filling

Kraft markets several brands in multiple product categories, such as cheese and dairy products, cereals, and sauces. These items are examples of the:

• Product line

• Line filling

• Product mix

• Line extension

The number of different product lines a company carries constitutes a product mix’s:

• Depth

• Width

• Consistency

• Match

Tom is willing to pay more for name brand products because he believes that he attains greater value. This describes which concept?

• Intangibility

• Brand superiority

• Brand extension

• Brand equity

Kenmore appliances and Craftsman tools are brands that can only be purchased in Sears department stores. These brands are examples of:

• Private brands

• Generic brands

• Licensed brands

• Manufacturer brands

Honda, a popular brand of automobile, also markets several other products with the Honda name, such as motorcycles, generators, and lawn equipment. This is an example of which brand development strategy?

• Line extension

• Brand extension

• New market

• Multibrand

Hotels and resorts charge lower prices in the off-season to offset the ______ of service characteristic.

• Inseparability

• Variability

• Intangibility

• Perishability