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Unformatted text preview: es (Choice, Choice Classic, and
Reflections) represent the firm’s:
A group of closely related product items is a product line.
KEY: CB&E Model Product OBJ: 10-3 TOP: AACSB Reflective MSC: BLOOMS Application 121. Refer to Choice Homes, Inc. Choice Homes is considering acquiring a mortgage and title
company to add to its marketing power in selling homes. This acquisition would expand the
product mix width
product item width
product line length
product breadth ANS: A
By adding more product lines, Choice is expanding its product mix width.
KEY: CB&E Model Product OBJ: 10-3 TOP: AACSB Reflective MSC: BLOOMS Application 122. Refer to Choice Homes, Inc. Choice Homes is considering the development of a new category of
small homes designed to replace low-income housing in the inner city. This strategy represents a:
product line extension
product line contraction
Modifications are for existing product lines and items. A new line represents an extension.
KEY: CB&E Model Product | CB&E Model Strategy TOP: AACSB Reflective
MSC: BLOOMS Application 123. Refer to Choice Homes, Inc. In a recent survey, Choice Homes’ customers indicated that they
thought their homes were of high quality, made lots of referrals to friends, and planned to buy a
Choice Classic or Reflections home in the future. The customers’ reactions indicate that Choice
Homes has achieved:
private brand status
Brand equity indicates the brand has value because of its high awareness, perceived quality, and
brand loyalty among customers.
KEY: CB&E Model Product OBJ: 10-4 TOP: AACSB Reflective MSC: BLOOMS Application Hardie Siding Products
James Hardie began selling fiber cement siding products in the United States in 1989 to leading
builders, lumberyards, and home improvement centers. Even though ads guaranteed the product
would not rot or crack for 50 years, many builders hated the product. It was heavy to install, and
it showed every flaw in a bad framing job. In 1997, Hardie decided to run ads in traditional
lifestyle magazines and emphasize the emotional appeal of houses made with strong, weatherresistant materials. Soon consumers began asking their builders or remodelers to use the product.
Trade ads were used to explain how builders could take advantage of the interest created by the
ads in lifestyle magazines. By 2000, the HardiePlank was the number one brand of siding in
North America. James Hardie is now the third most recognized brand of building material in the world.
124. Refer to Hardie Siding Products. HardiePlank siding is best described as a(n) _____ p...
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- Fall '13