Deck 14: Developing and Pricing Goods and Services

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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 11

A single product line may contain several competing brands.

Question 12

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

Question 13

Successful businesses constantly monitor consumer wants and needs.

Question 14

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

Question 15

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.

Question 16

McDonald's prides itself on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at a McDonald's.

Question 17

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

Question 18

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.

Question 19

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 20

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

Question 21

According to the Adapting to Change box, a social media presence isn't needed for small businesses to connect with customers.

Question 22

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

Question 23

The characteristics of specialty goods restrict their effective sale over the Internet.

Question 24

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

Question 25

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

Question 26

Whole grain breads, bagels, bread sticks, sandwiches, soup, and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

Question 27

The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.

Question 28

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

Question 29

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

Question 30

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

Question 31

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 32

At Isuzu's Appliance Store, 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 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

Question 40

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

Question 41

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

Question 42

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

Question 43

Industrial goods and services are used to produce other products.

Question 44

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

Question 45

Industrial goods are sold in the B2B market.

Question 46

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

Question 47

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

Question 48

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

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

Specialty goods are often marketed through specialty magazines.

Question 58

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

Question 59

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

Question 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

In recent years, the packaging of products has been given a greater role in product promotion.

Question 66

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

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good.

Question 74

Since Kazam Cleaners offers home and office cleaning services no different from competitors, the company cannot utilize a product differentiation strategy.

Question 75

Beyonce Financial Services purchased several new computers and a sophisticated printer for office use. These items would be correctly classified as accessory equipment.

Question 76

Packaging is an important part of the total product offer.

Question 77

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

Question 78

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

Question 79

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus. His largest competitors are large nationally known organizations. The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Question 80

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