Deck 9: Product Decisions

Question 1

A light globe can be considered all of the following except:

A)a consumer product.
B)a business product.
C)a business product if it is used to light an assembly line in a factory.
D)a consumer product if it is used to light the office of the board of directors.

Answer 1

D

Question 2

Minerals, chemicals, timber and agricultural products are considered:

A)process materials.
B)accessory materials.
C)MRO supplies.
D)component parts.
E)raw materials.

Answer 2

E

Question 3

According to the text, a product is defined as:

A)anything the customer receives in an exchange.
B)the physical object the customer receives in an exchange.
C)the service that is provided to a customer.
D)the idea the customer receives in an exchange.
E)goods and services the customer receives in an exchange.

Answer 3

A

Question 4

Facilities, factories and production lines with very large equipment are all classified as:

A)accessory equipment.
B)permanents.
C)installations.
D)component parts.
E)MRO supplies.

Question 5

In what ways can packaging be used strategically?

Question 6

Products are classified as being business or consumer products according to the:

A)goals of the organisation.
B)buyer's intended use of the product.
C)seller's intended use of the product.
D)location of use.
E)types of outlets from which they are purchased.

Question 7

What major issues should be considered when a package is designed?

Question 8

Products for which buyers are willing to spend much time comparing brands for differences in prices, product features and services are called __________ products.

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

Question 9

Brody is on his way to work when he realises he has a flat tyre.He heads to Kmart Tyre & Auto which is on the next corner to get a new tyre.Brody's purchase of a new tyre in this situation is considered to be a(n):

A)shopping product.
B)convenience product.
C)unsought product.
D)specialty product.
E)industrial product.

Question 10

Identify and describe the major categories of business products.

Question 11

To make intangible products more tangible or real to consumers, marketers often:

A)use low prices on intangible goods.
B)use symbols or cues to help indicate product benefits.
C)use external reference prices.
D)use multiple channels of distribution.

Question 12

A(n) __________ is a concept, philosophy or image.

A)product
B)good
C)idea
D)service
E)issue

Question 13

Describe and illustrate the four major categories of consumer products.

Question 14

Convenience products are:

A)relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.
B)frequently purchased items for which buyers are willing to exert considerable effort.
C)frequently purchased items that are found in certain retail outlets.
D)items that are expensive but are easy to purchase.
E)items that require some purchase planning and for which the buyer often will not accept substitutes.

Question 15

What functions do packages perform? Why are packaging considerations important to marketers?

Question 16

Explain the major stages of the product adoption process.

Question 17

What are the major functions of a label?

Question 18

Identify the major stages of the product life cycle, and explain how industry sales and profits vary across these stages.

Question 19

Business products are:

A)purchased for personal consumption.
B)chosen on the basis of preferences expressed by a business procurement department.
C)purchased for both their functional aspects and their psychological rewards.
D)classified according to their characteristics and intended uses.

Question 20

The Carsons are going on a holiday to Adelaide.When they lived there, Gwen Carson loved FruChocs.FruChocs are sold only in South Australia.She plans to buy two boxes at the first store she visits after they arrive.For Gwen, FruChocs represents a(n) __________ product.

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

Question 21

The intangible products that most organisations use in their operations are called:

A)component parts.
B)MRO supplies.
C)process ideas.
D)business services.
E)installations.

Question 22

Depending on how long it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards and:

A)late adopters.
B)non-adopters.
C)innovators.
D)middle adopters.
E)middle majority.

Question 23

During which stage of the product life cycle do profits peak?

A)Introduction
B)Growth
C)Decline
D)Termination
E)Maturity

Question 24

Use the following to answer questions
Gillette razors were first manufactured in 1895.Over the years, Gillette made improvements on their razors offering many 'firsts', such as the Mach3, the Sensor, and the Fusion.For many years, women were forced to use razors designed primarily for men but often marketed to women by offering them in different colours and with minimal modifications.In 1998, Gillette developed the Venus razor, based on the Mach3 but made specifically for women.Gillette promoted the Venus razor heavily, with ads on television and in other forms of media.The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications.
Tasha is shopping for personal care items at her local Target and sees a floor display for the new Venus Embrace.She had not thought about buying new razors, but the display caught her attention.Tasha is most likely in the _________ stage of the product adoption process at the present time.

A)awareness
B)attention
C)evaluation
D)trial
E)adoption

Question 25

One company markets such diverse products as Old El Paso Mexican foods, Max Factor cosmetics and Samsonite luggage.These various offerings exhibit the __________ of this firm's product mix.

A)width
B)depth
C)length
D)volume
E)dimension

Question 26

When someone considers whether a product will meet certain criteria that are critical for meeting his needs, he is in the __________ stage of the product adoption process.

A)interest
B)awareness
C)evaluation
D)trial
E)adoption

Question 27

Use the following to answer questions
Gillette razors were first manufactured in 1895.Over the years, Gillette made improvements on their razors offering many 'firsts', such as the Mach3, the Sensor, and the Fusion.For many years, women were forced to use razors designed primarily for men but often marketed to women by offering them in different colours and with minimal modifications.In 1998, Gillette developed the Venus razor, based on the Mach3 but made specifically for women.Gillette promoted the Venus razor heavily, with ads on television and in other forms of media.The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications.
Molly has been using Bic disposable razors for the last 10 years.She does not see the need to spend more money on razors, but she has found that it is becoming more difficult to find the Bic, so she is considering trying the Venus Embrace.Molly is definitely not a(n) __________ in the product adopter categories and is more likely to be a(n) __________.

A)innovator; early adopter
B)early adopter; innovator
C)early majority; early adopter
D)innovator; early majority
E)innovator; late majority

Question 28

Sales usually start to decline during the __________ stage of the product life cycle.

A)beginning of the termination
B)end of the growth
C)beginning of the decline
D)beginning of the growth
E)end of the maturity

Question 29

The most important function of packaging is to:

A)offer convenience to customers.
B)protect the product and maintain its functionality.
C)communicate information to the customer.
D)attract the attention of the customer.

Question 30

Products that are used directly in the production of a final product but that are not easily identifiable are categorised as:

A)accessory products.
B)component parts.
C)MRO supplies.
D)assembly components.
E)process materials.

Question 31

Sales start at zero and profits are negative during the __________ stage of the product life cycle.

A)decline
B)growth
C)initial
D)maturity
E)introduction

Question 32

An individual moves into the adoption stage of the product adoption process when she:

A)is motivated to learn more about the product.
B)begins using the product.
C)seriously considers whether the product will satisfy her needs.
D)experiences the product for the first time.
E)becomes aware that the product exists.

Question 33

Use the following to answer questions
Gillette razors were first manufactured in 1895.Over the years, Gillette made improvements on their razors offering many 'firsts', such as the Mach3, the Sensor, and the Fusion.For many years, women were forced to use razors designed primarily for men but often marketed to women by offering them in different colours and with minimal modifications.In 1998, Gillette developed the Venus razor, based on the Mach3 but made specifically for women.Gillette promoted the Venus razor heavily, with ads on television and in other forms of media.The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications.
Razors fall into which classification of consumer products?

A)Convenience products
B)Shopping products
C)Substitute products
D)Specialty products
E)Accessory equipment

Question 34

A distributor of plumbing supplies purchases a desktop computer to aid in inventory control.This computer is an example of which type of business product?

A)Raw material
B)Installations
C)Accessory equipment
D)Component part
E)Process material

Question 35

The last group to adopt a new product, known as __________, are oriented towards the past and are suspicious of new products.

A)non-adopters
B)laggards
C)innovators
D)late adopters
E)the late majority

Question 36

A common business objective of the __________ stage of the product life cycle is to generate cash flow.

A)maturity
B)growth
C)introduction
D)market reduction
E)decline

Question 37

Mercedes recognised that it needed to revitalise its brand and attract different market segments.These are indications that Mercedes' products were primarily in the __________ stage of the product life cycle.

A)maturity
B)growth
C)introduction
D)market testing
E)decline

Question 38

The depth of a product mix is measured by the average number of:

A)convenience products as compared with the number of specialty products.
B)different product lines offered by the company.
C)different products offered in each product line.
D)specialty products as compared with the number of convenience products.
E)product features that the company offers.

Question 39

Use the following to answer questions
Gillette razors were first manufactured in 1895.Over the years, Gillette made improvements on their razors offering many 'firsts', such as the Mach3, the Sensor, and the Fusion.For many years, women were forced to use razors designed primarily for men but often marketed to women by offering them in different colours and with minimal modifications.In 1998, Gillette developed the Venus razor, based on the Mach3 but made specifically for women.Gillette promoted the Venus razor heavily, with ads on television and in other forms of media.The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications.
When Gillette developed the Venus razor in 1998, it was in the __________ stage of the product life cycle.

A)introduction
B)growth
C)profit
D)maturity
E)decline

Question 40

A company manufactures desserts, breads, pantyhose, meats and a variety of other products.These products made up their product:

A)line.
B)item.
C)mix.
D)width.
E)depth.

Question 41

Many products never get beyond the introduction stage.

Question 42

Profits decline during the maturity stage largely because of increased competition.

Question 43

Obtaining a specialty product involves a considerable amount of comparison activity.

Question 44

A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical or end-use considerations.

Question 45

The original marketing strategy should not be altered in any way as a product travels through the stages of the product life cycle because consumers can become confused.

Question 46

Sometimes new marketing channels open up during the decline stage.

Question 47

A buyer becomes aware of the product during the evaluation phase of the product adoption process.

Question 48

The width of a product mix refers to the number of generic products offered by a company.

Question 49

Creativity in developing a label is not worth the effort; most people prefer that products be labelled with only the brand name and relevant consumer information.

Question 50

A product need not be a physical product.

Question 51

If Cottee's were to introduce a boysenberry-flavoured cordial and still continue to produce its other flavours, this would be an example of:

A)aesthetic modification.
B)line extension.
C)feature modification.
D)quality modification.
E)a new-to-the-world product.

Question 52

Communicating product benefits to consumers is very important during the introduction stage of the product life cycle.

Question 53

A service is intangible and is the result of the application of human or mechanical efforts to people or objects.

Question 54

Laggards are the last to adopt a new product and usually distrust new products.

Question 55

Price cuts are typical during a product's growth stage.

Question 56

When an organisation introduces a new product, all people do not begin the adoption process at the same time or move through the process at the same speed.

Question 57

Process materials are used directly in the production of products.

Question 58

The people to follow are the early adopters.

Question 59

A product mix is the composite or total group of products that an organisation makes available to customers.

Question 60

Bread is usually a convenience product.

Question 61

Product deletion can best be described as the process of deleting a product from the product mix when it:

A)is perceived as a failure by top management.
B)is reviewed negatively by a systematic review board.
C)increases production costs and decreases profits.
D)no longer responds to promotional efforts.
E)no longer satisfies a sufficient number of customers.

Question 62

After a company has created a prototype during the product development stage, the product's performance, or __________, must be tested.

A)appeal to customers
B)dependability
C)durability
D)functionality
E)pricing

Question 63

Wendy tells Bryce that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs and resulting profits.Wendy is asking Bryce to proceed to which stage of the new-product development process?

A)Idea generation
B)Business analysis
C)Commercialisation
D)Test marketing
E)Screening

Question 64

Product ideas are analysed to determine whether they match the company's objectives and resources during the __________ phase of new-product development.

A)concept testing
B)idea generation
C)business analysis
D)product development
E)screening

Question 65

As Mark works on the prototype for a new action-oriented computer game, he is engaging in which phase of the new-product development process?

A)Idea generation
B)Commercialisation
C)Test marketing
D)Screening
E)Product development

Question 66

Changes that affect a product's versatility, effectiveness, convenience or safety are called __________ modifications.

A)functional
B)formal
C)aesthetic
D)quality
E)package

Question 67

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell or visual characteristics are called __________ modifications.

A)aesthetic
B)functional
C)operational
D)quality
E)feature

Question 68

The phase of new-product development in which a small sample of potential buyers is presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called:

A)concept testing.
B)customer response testing.
C)idea analysis.
D)test marketing.
E)screening.

Question 69

Sandra and Jacob are preparing budgets for a new product as well as finalising plans for the full-scale marketing and manufacturing of the new iRobot vacuum cleaner.They are in the __________ phase of the new-product development process.

A)test marketing
B)business analysis
C)concept testing
D)product development
E)commercialisation

Question 70

A genuinely new product - like the iPod once was - offers:

A)lower prices than existing products.
B)at least two new product features.
C)innovative benefits to consumers.
D)better value than existing products.
E)at least two new product features at a lower price.

Question 71

A new variety of Doritos is initially introduced in some areas of New South Wales, Victoria and Tasmania.After its initial success, Smith's markets the Doritos in those entire states, then in Queensland, and finally the entire country.Smith's is using a __________ for its new variety of Doritos.

A)multi-stage introduction
B)rollout approach
C)test-market expansion
D)mass commercialisation
E)trickle-down approach

Question 72

All of the following are major steps in developing a new product except:

A)test marketing.
B)evaluation of competitors' efforts.
C)screening.
D)business analysis.
E)idea generation.

Question 73

Dan bought a new billiards table from Lindstrom's, but the day after it was delivered, he noticed a problem with the way one of the pockets was strung.Because it was the weekend, he didn't expect to have it repaired immediately.However, when he rang to leave a message, someone answered the phone and arranged to send out a qualified repairer who would come straight to Dan's house within an hour.Lindstrom's is most likely differentiating itself through:

A)support of its level of quality.
B)product support services.
C)a help line feature.
D)product features.
E)customer requests.

Question 74

Nando's wants to expand its line of food products.The managers sent surveys to customers to determine which food items would appeal to them.Nando's is currently in the __________ phase of new-product development.

A)business analysis
B)product development
C)test marketing
D)screening
E)idea generation

Question 75

Which of the following is a disadvantage of the gradual introduction of a product to the market?

A)It is easier logistically to introduce a product all at once.
B)It is difficult to slow down production enough for a gradual introduction.
C)It allows competitors to monitor the results of the new product.
D)It prevents product differentiation based on geographical differences.

Question 76

Top managers at ABC Microwave believe they have a successful working prototype for their new product and plan to go directly to regional commercialisation of the new product.In this instance, they are contemplating skipping the __________ phase of the new-product development process.

A)screening
B)test marketing
C)product development
D)business analysis
E)idea generation

Question 77

Quality modifications are changes that relate to a product's:

A)dependability and durability.
B)effectiveness and versatility.
C)price and availability.
D)reliability and value.
E)value and durability.

Question 78

Competitive interference with a test marketing program is called:

A)tactical interference.
B)jamming.
C)test interference.
D)squeezing.
E)ramming.

Question 79

Marketers begin to make decisions about labelling, packaging, branding, pricing and promotion during:

A)commercialisation.
B)screening.
C)concept testing.
D)product development.
E)test marketing.

Question 80

The three major ways to modify a product include:

A)aesthetic, quality and functional changes.
B)extensions, generations and upgrades.
C)colour, size and quantity modifications.
D)styling, product feature and product design updates.