2 12. Company XYZ sells condensed soups and promotes them by saying, “Great taste, great price.” Company XYZ is positioning its product according to what strategy?A. Relationship to other productsB. Features and benefitsC. Unique characteristicsD. Price and quality
3 DPrice and quality. The promotional slogan is positioning the product as having great taste at a great price. The taste is a quality. The promotion does not address specific features and benefits of the product such as “30% more chicken then the competition” or “Helps lower cholesterol.” The company is not claiming that its soups have a characteristic that is different than that of competitors. The soups are not positioning according to other products because the slogan does not include information about other products that the company produces.
4 13. A company advertises that its products are durable, lightweight, and come in a variety of colors. What strategy is the company using to position its product?A. Price and qualityB. Features and benefitsC. Unique characteristicsD. Relationship to other products
5 BFeatures and benefits. The company is positioning its products according to their specific features and benefits. Color is one of a product’s attributes or features. Being durable and lightweight are benefits. The company is not advertising quality or price, or unique characteristics not available from the competition. The company does not mention its other products.
6 14. A company that makes ink pens claims that no other pen on the market uses on the market uses a type of ink that changes color when exposed to light. The company is positioning its product according to what strategy?A. Price and qualityB. Features and benefitsC. Unique characteristicsD. Relation to other products in a line
7 CUnique charateristics. The company is positioning its product according to unique characteristics because it is claiming that its product does something that no other product can do. The ink changing color in light is a feature, but it is a unique characteristic that is not available on other pens. The company is not positioning according to the quality or the price of the pens or their relationship to other products.
8 15. Why do companies use brands for their products? A. To differentiate their productsB. To charge higher pricesC. To encourage materialismD. To demonstrate creativity
9 ATo differentiate their products. Companies want their products to be perceived as different from those of other companies. They can do this through the use of brands. Charging higher prices and encouraging materialism are seen by consumers as negative aspects of brands. Creating an appealing brand often requires creativity, but demonstrating creativity is not a purpose of using brands.
10 16. In what stage of brand loyalty do people become aware of the brand? A. RecognitionB. SatisfactionC. InsistenceD. Preference
11 ARecognition. Brand recognition is the stage of brand loyalty in which consumers become aware of a brand’s existence. Brand preference is when customers prefer to purchase a brand based on their positive experiences with that brand. Brand insistence occurs when a customer will only purchase that brand because of his/her satisfaction with it.
12 34. A business that says it tries harder because its product is not number one, is using product positioning to_______.A. MotivateB. OrganizeC. UpgradeD. Compete
16 36. A drawback of brands as compared to unbranded products is that they usually______. A. Differentiate products.B. Must be sold at higher prices.C. Create brand loyalty.D. Require trademark registration.