Deck 9: Product and Service Strategies

Question 1

Which of the following industries does NOT belong to the service sector?

A) investment banking
B) agriculture
C) retailing
D) health care

Answer 1

B

Question 2

Which of the following products typically has the longest distribution channel?

A) convenience products
B) staples
C) specialty products
D) shopping products

Answer 2

A

Question 3

What type of product is marketed to consumers who may NOT yet recognize a need for them?

A) specialty
B) consumer
C) convenience
D) unsought

Answer 3

D

Question 4

What distinguishes a service from a good?

A) Services are intangible.
B) Services are inseparable from service providers.
C) Services are easy to standardize.
D) Services are perishable.

Question 5

Which of the following products relies LEAST on personal selling?

A) specialty products
B) shopping products
C) unsought products
D) convenience products

Question 6

Which of the following products are, for MOST consumers, unsought?

A) designer clothes
B) magazines
C) long-term insurance
D) furniture

Question 7

How would you generally classify consumer goods such as milk, bread, and soft drinks?

A) as convenience products
B) as utilitarian products
C) as shopping products
D) as specialty products

Question 8

Which of the following are consumer shopping products?

A) Coca-Cola and Gatorade
B) bread, milk, and gasoline
C) clothing, furniture, and appliances
D) Rolex watches and BMW automobiles

Question 9

Which of the following companies is a pure service firm?

A) Walmart
B) Microsoft
C) Starbucks
D) Royal Bank of Canada

Question 10

Using the broad application of the word product, how can a television set best be described?

A) as an obsolete technology in comparison with the Internet
B) as a means of providing entertainment
C) as a lucrative item for appliance stores
D) as a machine used to receive broadcast signals

Question 11

The moderately priced Days Inn and the upscale Four Seasons Hotel both provide sleeping accommodations, but their respective guests have considerably different expectations of service.Why do their expectations differ?

A) Companies cannot standardize services.
B) Service quality shows wide variations.
C) Services are inseparable from their providers.
D) Services have a high perishable rate.

Question 12

What does a consumer expect when purchasing convenience products?

A) that they can purchase them without having full knowledge about what is sought
B) that they can purchase them immediately and with minimal effort
C) that they should purchase them after visiting numerous stores and comparing prices
D) that they may have to travel any distance to get what is wanted

Question 13

Which of the following comes closest to providing a pure good?

A) a company that manufactures and installs elevators
B) a cleaning service
C) a data storage company
D) an advertising agency

Question 14

Why do grocery stores usually display items such as candy, gum, and magazines near the checkout counter?

A) because they are purchased on impulse
B) because they are easier to replenish
C) because they are subject to shoplifting
D) because they are purchased infrequently

Question 15

Which of the following best describes a product?

A) the physical characteristics of an item that one can buy for personal, professional, or organizational use
B) the costs and benefits that the seller promotes in various marketing messages
C) assurances, reliability, and tangibles all at once
D) a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs

Question 16

Approximately what percentage of the Canadian economy is made up of the service sector?

A) 25 percent
B) 50 percent
C) 70 percent
D) 90 percent

Question 17

How might you categorize convenience products that customers constantly replenish in order to maintain a ready inventory?

A) staples
B) impulse items
C) emergency items
D) specialty items

Question 18

According to marketing decision makers, why do people buy products?

A) to acquire items that are distinctively different than the competitive offerings
B) to satisfy their wants and needs
C) to save time by selecting items that are easy to find on the shelves
D) to satisfy price and value requirements

Question 19

Which of the following products would generally be classified as a staple?

A) plumbing repair kit
B) personal computer
C) gasoline
D) magazine

Question 20

Which of the following would MOST likely have the greatest influence on a decision to buy a heterogeneous shopping product?

A) the product's style
B) the store's name and reputation
C) the store's location
D) the price and perceived value of the product

Question 21

What type of products are financial, legal, and medical services?

A) convenience services
B) shopping goods
C) customized services
D) specialty services

Question 22

What is the basic characteristic of accessory equipment in the business market?

A) It is purchased by groups involving a large number of decision makers.
B) It is not considered a capital item.
C) It is a capital item with a shorter useful life than an installation.
D) It is a convenience product of the industrial market.

Question 23

What are business products that are re-classified as raw materials called?

A) price-sensitive items
B) specialty products for the industrial market
C) either farm products or natural products
D) MRO items

Question 24

Which of the following is NOT a raw material?

A) coal
B) copper
C) iron ore
D) steel

Question 25

What type of product are consumers primarily interested in when they are well aware of the brands they prefer and are willing to make a special effort to obtain them?

A) impulse
B) convenience
C) shopping
D) specialty

Question 26

Why do raw materials resemble component parts and materials?

A) They are considered capital investments to be held for several years.
B) They are part of the buyers' final products.
C) They are finished products before they enter into the production of other products.
D) They are expended without finding their way into finished goods.

Question 27

After researching and comparing several types of alarm clocks, Trisha decided on one that gives a choice of being wakened to music, bird calls, or ocean waves.In this case, what type of product would the alarm clock be classified as?

A) shopping
B) impulse
C) convenience
D) specialty

Question 28

What are industrial distributors MOST often found selling?

A) accessory equipment
B) business services
C) raw materials
D) installations

Question 29

Which of the following business products are MOST similar to consumer specialty products?

A) installations
B) accessory equipment parts
C) raw materials
D) component parts and materials

Question 30

Sandra is working on a purchase decision for her company.The product under consideration is expensive, has a short distribution channel, and isn't purchased frequently.In addition, Sandra is working closely with a seller's marketing representative.Which type of product is Sandra's company considering purchasing?

A) accessory equipment
B) an installation
C) component parts and materials
D) supplies

Question 31

What are products that are considered capital investments but whose useful lives are generally much shorter than those of installations known as?

A) accessory equipment
B) operating supplies
C) component parts
D) business services

Question 32

Which of the following business products would be classified as an installation?

A) jet engine
B) office furniture
C) copy paper
D) regional shopping centre

Question 33

Which of the following products relies LEAST on location of purchasing opportunity?

A) specialty products
B) shopping products
C) unsought products
D) convenience products

Question 34

What are purchases included with a car, such as spark plugs, batteries, and tires, examples of?

A) installations
B) accessory equipment
C) component parts and materials
D) supplies

Question 35

While in Best Buy, a customer takes a great deal of time comparing the quality, features, and prices of a number of refrigerators.What type of products is this customer examining?

A) heterogeneous shopping products
B) homogeneous shopping products
C) homogeneous convenience products
D) heterogeneous specialty products

Question 36

Which of the following correctly matches consumer factors and marketing mix factors in the consumer products classification system?

A) Specialty products-personal selling is not important.
B) Convenience products-a consumer makes infrequent purchases of these products.
C) Emergency products-these are unsought products.
D) Shopping products-a relatively short channel of distribution is typical.

Question 37

Ryan is looking for a professional watch that he buys, at most, once every few years.Since he doesn't favour a particular brand, he spends a great deal of time comparing price and quality, as well as visiting the few retail outlets that sell high-end watches.What type of product is Ryan about to purchase?

A) unsought
B) specialty
C) convenience
D) shopping

Question 38

In the business market, what is an important factor for a purchasing firm who is buying installations?

A) the lowest price
B) general usefulness instead of having a specific purpose
C) speed of installation without extensive negotiations
D) efficiency and performance over their useful life

Question 39

Some wholesalers are called "industrial distributors." What are these wholesalers a major vendor of?

A) standardized products of uniform quality that are made on a contractual basis
B) MRO items
C) installations for the industrial market
D) accessory equipment for the business market

Question 40

Which of the following would NOT ordinarily be included as a business product?

A) installations
B) accessory equipment
C) specialty products
D) component parts

Question 41

In the business market, what are computer paper, pencils, and office stationery examples of?

A) maintenance items
B) repair items
C) operating supplies
D) accessory equipment

Question 42

Which of the following is a single product line?

A) four-door sedans offered by various automakers
B) 125-passenger jets manufactured by Airbus and Boeing
C) Hershey Kisses in a variety of flavours
D) different brands of toothpaste

Question 43

During what stage of the product life cycle should a firm's marketing strategy emphasize stimulating initial demand?

A) introduction
B) stabilization
C) growth
D) maturity

Question 44

What is a series of related products offered by one company called?

A) a product assortment
B) a product mix
C) a product formula
D) a product line

Question 45

What is a company practising when it institutes a continuous effort to improve products and work processes?

A) total quality management
B) benchmarking
C) ISO 9002 certification
D) process improvement

Question 46

What does the combination of product lines represent?

A) a company's product mix
B) a company's product cluster
C) a company's product lifecycle
D) a company's product concept

Question 47

Russell works for a cell phone provider.When dealing with customers he always conveys confidence that he can provide the exact assistance they need.Which service quality variable is Russell exhibiting?

A) assurance
B) responsiveness
C) empathy
D) reliability

Question 48

If Honda were to acquire a bicycle manufacturer, what would it add to Honda's product mix?

A) depth
B) width
C) length
D) cluster

Question 49

Which of the following is NOT an activity for benchmarking?

A) continuously repeating the process to search for and identify areas that need improvement
B) comparing internal processes with similar processes of industry leaders
C) identifying processes that need improvement
D) producing more product output at a lower cost-per-unit

Question 50

At what stage of the product life cycle does a firm start to realize substantial profits from its investments?

A) decline stage
B) introductory stage
C) growth stage
D) maturity stage

Question 51

What is the first main activity involved in benchmarking?

A) identifying the world's leading performers
B) identifying internal processes to be improved
C) identifying how the best goods are produced
D) identifying critical market segments

Question 52

Johnson & Johnson manufactures more than 90 brands in nearly 50 product categories.What is the total number of products the company manufactures called?

A) product line extension
B) product cluster map
C) product mix length
D) product life cycle expectancy

Question 53

Widgets were introduced a few years ago.The number of companies making widgets has increased recently, drawn by high profits.At the same time, differentiated products for different market segments have begun to emerge.What stage of the product life cycle do widgets appear to be in?

A) growth
B) introductory
C) maturity
D) decline

Question 54

What type of problem is common for companies during the introductory stages of a product life cycle?

A) Competitors rush into the market with offerings similar to those of the innovator.
B) Technical problems are common as companies fine-tune product design.
C) Heavy promotional outlays emphasize differences that exist between products.
D) Profits for the product category decline, sometimes actually becoming negative.

Question 55

What is a characteristic of the growth stage of the product life cycle?

A) low prices are established
B) effective competitors improve and modify their products
C) early buyers of the product make their initial purchases
D) buyers are hesitant to make repurchases

Question 56

Which of the following has a mandate of advancing the quality movement in Canada by providing advice on change management, organizing events to promote quality, and offering educational certification programs?

A) ISO 9002
B) Total Quality Management
C) the National Quality Institute
D) Six Sigma

Question 57

What is the number of product lines a firm offers referred to as?

A) depth
B) width
C) clusters
D) length

Question 58

Potential customers are unaware of a product during its introductory stage; therefore, what does promotion in this stage concentrate on?

A) explaining the product features, uses, and benefits
B) reducing the size of the available market through selective advertising
C) test-marketing
D) communicating new uses for the product

Question 59

What is adding individual offerings that appeal to different market segments known as?

A) product mix
B) product line
C) product line extension
D) product line depth

Question 60

In what process do products pass through a series of stages from their initial appearance to their decline?

A) product life potential
B) promotional cycle
C) pricing cycle
D) product life cycle

Question 61

Because they do NOT have physical features that buyers can see, hear, smell, taste, or touch prior to purchase, services are said to be intangible.

Question 62

While a consumer views a product as a want satisfier, a marketer sees the product as a combination of elements that give value to a consumer.

Question 63

Genuine Products has been involved in intensive price competition with another company.Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item.What stage of the product life cycle does this product appear to have reached?

A) introductory
B) maturity
C) decline
D) growth

Question 64

A university education is a product.

Question 65

What is advertising that warns consumers about the dangers of overexposure to the sun, even during winter months, an attempt by marketers of sunscreen to do?

A) raise awareness of skin cancer
B) find new uses for the product
C) change product quality
D) increase the frequency of product use

Question 66

A local gas station has installed a new food and beverage mart.Since this represents a service outside the gas station's primary business, it falls outside the broad view of product.

Question 67

The marketing mix is the blend of product, price, distribution, and promotion that a firm develops as its marketing strategy to satisfy a chosen target market.

Question 68

What is a characteristic of the decline stage of the product life cycle?

A) Profits can become negative.
B) Distribution is increased.
C) Available products exceed demand for the first time.
D) Selective demand is cultivated.

Question 69

One way to distinguish a good from a service is that a service is inseparable from the service provider.

Question 70

Greta has been analyzing the competitive standing of one of her products.Since the item was introduced, 20 similar products have appeared, forcing her to change distribution and pricing strategies in order to remain competitive.Sales volume has dipped and she suspects sales of her product have reached a saturation level.At what stage of the product life cycle is the item?

A) introductory
B) growth
C) maturity
D) decline

Question 71

The broad view of product recognizes that consumers buy satisfaction, not just a thing they can hold in their hands.

Question 72

In the late 1990s, Las Vegas witnessed a growth in the number of newly built casinos targeting the family vacation market.What was advertising their facilities to families an attempt to do?

A) fill a high vacancy rate
B) increase the number of users
C) sell tickets to family shows
D) enhance the city's image

Question 73

At what stage of the product life cycle should a viable marketing strategy promote the differences that separate competing merchandise?

A) introduction
B) stabilization
C) growth
D) maturity

Question 74

A product is simply a physical item designed to satisfy a customer's wants and needs.

Question 75

Services are perishable and cannot be stockpiled or inventoried.

Question 76

The goods-services continuum is defined as a product that requires continued interaction with the manufacturer for services that might include maintenance, upgrades, servicing, and repair.Examples of this type of relationship include cars and auto dealerships, or software and technical support.

Question 77

During what stage of the product life cycle does product differentiation and heavy advertising MOST often occur?

A) maturity
B) introductory
C) growth
D) decline

Question 78

During what stage of the product life cycle does competition between brands intensify?

A) diminishing demand period
B) introductory stage
C) growth stage
D) maturity stage

Question 79

Some firms try to differentiate their products during the maturity stage of the product life cycle.Which of the following do these firms use as a basis for differentiation?

A) rapid market share growth
B) quality, reliability, and service
C) lower promotion costs
D) maintenance of strategy that has worked well until now

Question 80

What are fashions with abbreviated life cycles called?

A) trends
B) perishables
C) fads
D) staples