Unformatted text preview: tion 116. Refer to Alberto Culver Company. The toiletries, household, and professional divisions compose
Alberto Culver’s product mix:
Product mix width refers to the number of product lines that an organization offers.
KEY: CB&E Model Product OBJ: 10-3 TOP: AACSB Reflective MSC: BLOOMS Application 117. Refer to Alberto Culver Company. If a marketer looks only at the toiletries division and notes the
brands and items within only that division, he or she is analyzing the _____ of the product line.
Product line depth is the number of product items in a product line.
KEY: CB&E Model Product OBJ: 10-3 TOP: AACSB Reflective MSC: BLOOMS Application 118. Refer to Alberto Culver Company. Why would the Alberto Culver Company be interested in
increasing its product depth?
To even out seasonal sales patterns
To attract buyers with different preferences
To increase sales and profits by further
segmenting the market
To capitalize on economies of scale in
To do all of these things
TOP: AACSB Reflective Thinking
MSC: BLOOMS Application REF: 159-160
KEY: CB&E Model Product Choice Homes, Inc.
Choice Homes, Inc., based in Texas, built its reputation by building high-quality new homes,
often at prices less than “used” ones. Choice Homes used mass purchasing power, innovative
high-tech communications among employees to coordinate the building process, and other entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time
homeowners-to-be in an effort to get people out of apartments so they can experience the
“American Dream” of home ownership for the same price as rent. Choice Homes later developed
the “Choice Classic” brand name for higher-end homes targeted at wealthier dual-income
couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes,
especially for current Choice home owners who are ready to “move up” to a larger home.
Recently, Choice Homes started a third line of homes called “Reflections,” which are expensive,
custom-designed homes located in exclusive, prestigious neighborhoods.
119. Refer to Choice Homes, Inc. Kurt McKinney has just received a large inheritance and wants to
have his “dream” home built. He knows exactly the architectural design he wants. He wants a
particular Reflections home. The type of consumer product he wishes to buy is best classified as
McKinney is searching for an expensive item for which he will not accept a substitute.
KEY: CB&E Model Product OBJ: 10-2 TOP: AACSB Reflective MSC: BLOOMS Application 120. Refer to Choice Homes, Inc. The three different brands of hom...
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