Market-Based Management Chapter 7: Product Positioning,
Branding, an Product Line Strategies
1. Product positioning starts with company engineers or product managers, not target customers.: False
2. The extent that a market share grows is directly dependent on the strength of a business's product positioning
and marketing effort.: True
3. A weak product position with a strong marketing effort will fail to deliver the desired level of market share.:
True
4. In a price-sensitive market, product positioning generally requires a higher price because this is the only
source of differentiation that target customers value.: False
5. Quality aesthetics as a source of differentiation are of value only when all other aspects of quality are met
with respect to customer quality expecta- tions.: True
6. 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.: False
7. Service can be an important source of differentiation when it comes to positioning strategies.: True
8. 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.: True
9. The total cost of purchase excludes the customer's ownership costs.: False
10.A brand-encoding system helps in understanding how to position a prod- uct with a brand name for a
specific market and desired image.: True
11.Invented names are company or brand names that create a direct connec- tion to something real and that
can be associated with a direct experience.: - False
12.Companies with high brand awareness can more easily introduce new products and enter new
markets.: True
13. An umbrella brand refers to a new product that is a vertical brand extension of the core product.: False
14.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
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20
, Market-Based Management Chapter 7: Product Positioning,
Branding, an Product Line Strategies
C) horizontal brand extension
D) pure product bundling
E) mixed bundling: E) mixed bundling
15.The intent of umbrella branding is to enhance the effectiveness of mar- keting programs and to increase
demand for product line extensions by transferring brand awareness and perceptions of quality from the
umbrella brand.: True
16.Which of the following is true about pure product bundling strategy?
A) It involves the sale of two or more products at an overall price that is cheaper than purchasing the
products separately.
B) It is shown to be more profitable than mixed bundling strategies.
C) It creates a base from which to introduce line extensions that enhance market penetration at a lower
cost.
D) It takes advantage of the potential synergy of two brands that share a common market space.
E) It involves entering new product-markets.: A) It involves the sale of two or more products at an overall price that is
cheaper than purchasing the products separately.
17.The purpose of line extensions under an umbrella brand is to leverage the awareness and image of the
umbrella brand.: True
18.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
2/
20
, Market-Based Management Chapter 7: Product Positioning,
Branding, an Product Line Strategies
Study online at https://quizlet.com/_6uhwek
E) horizontal brand extension: D) pure product bundling
19.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: C) service quality
20.Which of the following is a marketing effort factor influencing a business's market share?
A) brand image
B) product differentiation
C) price
D) product breadth
E) sales promotions: E) sales promotions
21.George recently purchased a computer from HardDigits Inc., a firm that sells assembled desktop computers
and other electronic products. Included in his purchase were an inkjet printer, a web camera, and an office
software program that included a word processor, a spreadsheet, and a photo editor. 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
3/
20
Branding, an Product Line Strategies
1. Product positioning starts with company engineers or product managers, not target customers.: False
2. The extent that a market share grows is directly dependent on the strength of a business's product positioning
and marketing effort.: True
3. A weak product position with a strong marketing effort will fail to deliver the desired level of market share.:
True
4. In a price-sensitive market, product positioning generally requires a higher price because this is the only
source of differentiation that target customers value.: False
5. Quality aesthetics as a source of differentiation are of value only when all other aspects of quality are met
with respect to customer quality expecta- tions.: True
6. 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.: False
7. Service can be an important source of differentiation when it comes to positioning strategies.: True
8. 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.: True
9. The total cost of purchase excludes the customer's ownership costs.: False
10.A brand-encoding system helps in understanding how to position a prod- uct with a brand name for a
specific market and desired image.: True
11.Invented names are company or brand names that create a direct connec- tion to something real and that
can be associated with a direct experience.: - False
12.Companies with high brand awareness can more easily introduce new products and enter new
markets.: True
13. An umbrella brand refers to a new product that is a vertical brand extension of the core product.: False
14.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
1/
20
, Market-Based Management Chapter 7: Product Positioning,
Branding, an Product Line Strategies
C) horizontal brand extension
D) pure product bundling
E) mixed bundling: E) mixed bundling
15.The intent of umbrella branding is to enhance the effectiveness of mar- keting programs and to increase
demand for product line extensions by transferring brand awareness and perceptions of quality from the
umbrella brand.: True
16.Which of the following is true about pure product bundling strategy?
A) It involves the sale of two or more products at an overall price that is cheaper than purchasing the
products separately.
B) It is shown to be more profitable than mixed bundling strategies.
C) It creates a base from which to introduce line extensions that enhance market penetration at a lower
cost.
D) It takes advantage of the potential synergy of two brands that share a common market space.
E) It involves entering new product-markets.: A) It involves the sale of two or more products at an overall price that is
cheaper than purchasing the products separately.
17.The purpose of line extensions under an umbrella brand is to leverage the awareness and image of the
umbrella brand.: True
18.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
2/
20
, Market-Based Management Chapter 7: Product Positioning,
Branding, an Product Line Strategies
Study online at https://quizlet.com/_6uhwek
E) horizontal brand extension: D) pure product bundling
19.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: C) service quality
20.Which of the following is a marketing effort factor influencing a business's market share?
A) brand image
B) product differentiation
C) price
D) product breadth
E) sales promotions: E) sales promotions
21.George recently purchased a computer from HardDigits Inc., a firm that sells assembled desktop computers
and other electronic products. Included in his purchase were an inkjet printer, a web camera, and an office
software program that included a word processor, a spreadsheet, and a photo editor. 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
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20
