Deck 14: Developing and Pricing Goods and Services

Question 1

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Answer 1

True

Question 2

Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

Answer 2

False

Question 3

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Answer 3

True

Question 4

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

Question 5

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

Question 6

A product line is a group of products that are physically similar or are intended for a similar market.

Question 7

Fast food restaurants must constantly monitor all sources of information for new-product ideas.

Question 8

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

Question 9

The term product line describes the combination of product mixes offered by a manufacturer.

Question 10

Fast food restaurants, like Carl's Jr., pride themselves on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at one of those restaurants.

Question 11

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Question 12

The several product lines that a company offers for sale make up that organization's product mix.

Question 13

When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

Question 14

Product development is a key activity in any modern business, anywhere in the world.

Question 15

Low prices can often help retailers create an attractive total product offer.

Question 16

The critical component of a total product offer is always a low price.

Question 17

A single product line may contain several competing brands.

Question 18

The image created by advertising is part of the total product offer of a product.

Question 19

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Question 20

Successful businesses constantly monitor consumer wants and needs.

Question 21

The marketing efforts for convenience and specialty goods are essentially the same.

Question 22

A traditional McDonald's and a McCafe are examples of the McDonald's Corporation product mix.

Question 23

Convenience goods are products that the consumer wants to purchase frequently and with minimal effort.

Question 24

A bank's product line may include safety deposit boxes, car loans, and checking accounts.

Question 25

The concepts of product lines and product mixes apply to marketers of both products and services.

Question 26

Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small.

Question 27

According to the Adapting to Change box, social celebrity-driven mobile games are not making as much money as app developers expected.

Question 28

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

Question 29

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

Question 30

The most common classification of consumer goods and services is based on producer or manufacturer behavior in the market.

Question 31

At Affordable Appliances stores, all new products are offered with an extended service contract, as well as free delivery and installation. By offering these value enhancers, Isuzu's has added to their total product offer.

Question 32

Car dealers realize that consumers focus exclusively on price and warranty.

Question 33

Artisan breads, bagels, sandwiches, soups, and pastries are products that would be included in the product mix of a cafe.

Question 34

The characteristics of specialty goods restrict their effective sale online.

Question 35

The uniqueness of convenience goods and services stimulates consumers to make an extra effort to purchase them.

Question 36

Creative product differentiation can enable a small business to increase market share.

Question 37

One common way of classifying consumer goods is based on consumer purchasing behavior.

Question 38

While service providers offer product lines, they are unable to offer product mixes.

Question 39

Unsought goods and services fail to provide the benefits consumers expect.

Question 40

Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.

Question 41

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Question 42

Shopping goods and services are purchased only after consumers compare value, quality, style, and price of competing goods and services.

Question 43

Capital items are industrial goods that are expensive and last a long time.

Question 44

The two types of industrial goods are production goods and unsought goods.

Question 45

Some goods can be classified as either consumer goods or as industrial goods.

Question 46

Industrial goods are sold in the B2B market.

Question 47

Successful marketing of convenience and specialty goods require different marketing mixes.

Question 48

A shopping good for one consumer could be a specialty good for another consumer.

Question 49

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

Question 50

Industrial goods and services are used to produce other products.

Question 51

Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that newspapers are classified as convenience goods.

Question 52

Jackson is the owner of a small pizzeria and draws a variety of competition-from other local restaurants offering pizza to the large national chains. The small size of Jackson's business prevents him from successfully utilizing a product differentiation strategy.

Question 53

Consumers are best served by providing specialty goods in convenient locations.

Question 54

Paper clips, stationery, and other office supplies used by businesses are types of industrial support goods.

Question 55

Unsought goods and services are purchased on impulse and provide no added value to consumers.

Question 56

Most consumers view specialty goods as having a variety of acceptable substitutes.

Question 57

As a promotional strategy, advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

Question 58

The classification of goods or services into a particular class depends on the individual consumer.

Question 59

Specialty goods are often marketed through specialty magazines.

Question 60

A pickup truck can be classified as either a consumer good or an industrial good.

Question 61

The trend toward self-service retailers has increased the importance of packaging.

Question 62

While packaging innovations benefit the consumer, they have vastly increased the workload of retailers.

Question 63

While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.

Question 64

More than any other component of a total product offer, technology has reduced the importance of packaging.

Question 65

Cool Down Drinks, a national producer of soft drinks, wants to differentiate its products from those of other providers. To implement this strategy successfully will require Cool Down to create tangible differences in the physical product it offers.

Question 66

Packaging is an important part of the total product offer.

Question 67

One function of effective packaging is to protect the goods inside during handling and storage, as well as deter product tampering and theft.

Question 68

While White Glove Cleaners offers home and commercial cleaning services no different from competitors, the company is unable to utilize a product differentiation strategy.

Question 69

One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.

Question 70

Today, the packaging of products has been given a greater role in product promotion.

Question 71

The exclusive goal companies expect of packaging is to protect the product from damage in transit.

Question 72

Land Movers Equipment Company sells used heavy construction equipment such as bulldozers and cranes. Land Movers products represent examples of an accessory equipment industrial good.

Question 73

While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.

Question 74

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Question 75

As a result of increased advertising and well-trained salespeople, packaging is less important than in the past.

Question 76

Regardless of changes in packaging, the total product offer remains unchanged.

Question 77

Louis expects to visit a variety of retailers and websites to compare features, quality, and prices of different speaker equipment brands. This behavior indicates that for Louis a speaker system is a shopping good.

Question 78

One function of effective packaging is to attract the attention of consumers.

Question 79

Gabriella strongly prefers a specific brand of gourmet coffee. Since there is only one store in her area that sells her brand, she makes an extra effort to purchase this item. Gabriella's purchasing behavior indicates for her this product is a specialty good.

Question 80

Securitas Financial Services purchased several new computers and laser printers for office use. These items would be correctly classified as accessory equipment.