Question 1

Pencils,brooms,and gloves are examples of ________,while factories,water towers,and airplanes are examples of ________.
A)capital items;expense items
B)supplies;installations
C)services;capital items
D)expense items;capital items
E)capital items;supplies

Accepted Answer

Pencils, brooms, and gloves are all items that are expenses, while factories, water towers, and airplanes are all capital items. Expense items are used up quickly and are not expected to last long, while capital items are long-lasting and are considered assets to a company.

Question 2

Assuming a company has been gathering ideas for new products,what is the next step in the development process?
A)Test marketing
B)Prototype development
C)Business analysis
D)Concept testing
E)Screening

Accepted Answer

After gathering ideas for new products, the next step in the development process is to screen those ideas to identify the most viable options for further development. Screening involves evaluating each idea based on its potential for success, considering factors such as market demand, competition, and production feasibility. Once ideas have been screened, the most promising ones can then move on to concept testing, business analysis, prototyping, and eventually test marketing.

Question 3

For many years,ServiceMaster focused on residential customers,but now it has added business and industry services.This is an example of
A)product mortality.
B)product positioning.
C)multiple product lines.
D)product differentiation.
E)the product mix.

Accepted Answer

ServiceMaster's decision to add business and industry services represents a move into multiple product lines, as opposed to simply expanding its existing product mix or differentiating its products from competitors.

Question 4

Bread is an example of a(n)________,while the catering for a wedding reception is an example of a(n)________.
A)shopping good;shopping service
B)convenience good;specialty good
C)specialty good;specialty service
D)convenience good;specialty service
E)shopping good;shopping good

Accepted Answer

Bread is a convenience good, which is a product that consumers purchase frequently, immediately, and with minimal effort. Catering for a wedding reception, on the other hand, is a specialty service, which is a service that is unique, customized, and often expensive or difficult to obtain. Therefore, option D, convenience good for bread and specialty service for catering, is the most appropriate answer.

Question 5

Which defining word or phrase below best captures the meaning of capital items?
A)Bulk loads
B)Directly used in the production process
C)To the consumer within a year
D)Permanent
E)Governmental purchase

Accepted Answer

"Permanent" is the best choice because capital items are long-term investments in a business's production process and are not intended for immediate consumption or resale. They are expected to have a useful life of multiple years and are considered to be permanent fixtures in a business's operations.

Question 6

Coffee,potato chips,and AA batteries are examples of ________,while tires are an example of ________.
A)shopping goods;shopping services
B)convenience goods;shopping goods
C)specialty goods;specialty services
D)convenience goods;specialty services
E)shopping goods;shopping goods

Accepted Answer

Coffee, potato chips, and AA batteries are convenience goods because they are items that consumers purchase frequently and with minimal effort. Tires are shopping goods because they require more thought and comparison before purchase.

Question 7

Ford offers four different models of the Escort which run the gamut from the three-door sport model to the five-door sedan.This represents
A)a product offering.
B)multiple product lines.
C)a product line.
D)a product blend.
E)a product mix.

Accepted Answer

The different models of the Escort offered by Ford represent a product line, as they all fall under the Escort brand and share similar features and functionality. A product mix would refer to all the different product lines offered by Ford, while a product blend is not a recognized marketing term. Multiple product lines would refer to Ford offering completely different types of products, such as cars, trucks, and motorcycles.

Question 8

Advertisements for the Swatch Chrono watch remind consumers that they don't get just "real" features like shock and water resistance when they buy the product.This is an example of
A)the value package.
B)emotional advertising.
C)institutional advertising.
D)product differentiation.
E)focusing on the visible features of a product.

Accepted Answer

The answer of Advertisements for the Swatch Chrono watch remind...

Question 9

Buildings,manufacturing equipment,computers,and desks are examples of ________ purchased by companies that make other goods.
A)impulse items
B)capital items
C)current expenses
D)fixed expenses
E)expense items

Accepted Answer

Buildings, manufacturing equipment, computers, and desks are all examples of capital items, which are long-term investments made by companies to produce other goods or provide services. Capital items are distinguished from expense items, which are shorter-term purchases that are consumed or used up within a shorter period and do not have a long-lasting impact on a company's operations.

Question 10

What is the purpose of the screening stage of the product development process?
A)To identify potential production problems
B)To identify the benefits which consumers want
C)To actively seek out ideas for new products
D)To eliminate all ideas that do not mesh with the firm's objectives,abilities,or expertise
E)To compare costs and benefits of the proposed product

Accepted Answer

The screening stage of the product development process is designed to eliminate ideas that do not fit with the firm's objectives, abilities, or expertise. This is important because it helps focus resources on ideas that have the potential to be successful and is a key factor in ensuring that new products align with strategic goals.

Question 11

Stereos,tires,business suits,and furniture are examples of ________ goods.
A)convenience
B)impulse
C)coincidental
D)shopping
E)specialty

Accepted Answer

Shopping goods are products that customers compare on the basis of quality, price, and style in the process of selecting and purchasing. Stereos, tires, business suits, and furniture fall under this category. Convenience goods (A) are products that customers buy frequently and with minimal effort, such as bread or toothpaste, while impulse goods (B) are products that spur-of-the-moment purchases, such as candy or magazines. Coincidental goods (C) are products that are purchased by default, such as bottled water at a hotel. Specialty goods (E) are products that are unique or of high quality and for which buyers will make a special effort to purchase, such as a luxury car or diamond jewelry.

Question 12

You are asked to come up with a new widget.What would your first step be?
A)Idea screening
B)Idea generation
C)Commercialization
D)Business analysis
E)Test marketing

Accepted Answer

The first step in developing a new widget would be to generate ideas. This could involve brainstorming sessions, market research, or identifying gaps in the market. Once ideas have been generated, they can then be screened, analyzed, and tested to determine their viability and potential for success.

Question 13

Which of the following is correct regarding the product mix and product line concepts?
A)A product line is broader than a product mix.
B)The product mix refers to the group of products a company has available for sale.
C)The product line concept applies to physical products,while the product mix concept applies only to services.
D)A product line focuses on convenience goods,while a product mix focuses on shopping goods.
E)A product line is almost always more expensive than a product mix.

Accepted Answer

The product mix refers to the group of products a company has available for sale, while a product line refers to a group of related products within a company's product mix.

Question 14

Which of the following is correct with regard to the concept of a "product"?
A)The product is made up of the visible features and benefits.
B)When consumers buy a product,they are also buying an image and a reputation.
C)Products are normally classified into two basic groups: those that are consumed in a short period of time and those that last a long time.
D)The value package is the objective features of the product.
E)For a computer,most items in the value package are tangible.

Accepted Answer

When consumers buy a product, they are not only buying the physical features and benefits, but also the image and reputation associated with the product. This is why branding and marketing play such an important role in product success. Option A and D are incorrect as they both refer to the objective features of the product, which is only one aspect of a product. Option C is incorrect as it oversimplifies the classification of products, and option E is incorrect as many items in the value package of a computer, such as software or warranties, are intangible.

Question 15

Light bulbs,pencils,pads of paper,and lubricating oils for machines are examples of ________ purchased by companies that make other goods.
A)capital items
B)fixed expense goods
C)expense items
D)depreciation goods
E)impulse items

Accepted Answer

These items are considered expense items because they are commonly used and have a short lifespan, meaning they need to be replaced frequently. Capital items, on the other hand, are larger and more expensive assets that are essential for production, such as machinery or buildings. Fixed expense goods refer to expenses that remain the same over a period of time, such as rent or salaries. Depreciation goods are assets that decrease in value over time, such as vehicles or computers. Impulse items are typically consumer goods purchased on a whim, such as candy or magazines.

Question 16

Goods which are very important,expensive,and rarely purchased are ________ goods.
A)shopping
B)impulse
C)convenience
D)coincidental
E)specialty

Accepted Answer

Specialty goods are those products that are unique and not easily available. They are purchased infrequently, and customers are often willing to pay a premium price for them. Examples include luxury vehicles, designer clothing, and high-end jewelry.

Question 17

Diamond rings,Rolex watches,Godiva chocolates,and Rolls Royces are examples of
A)a product mix.
B)convenience goods.
C)shopping goods.
D)a product line.
E)specialty goods.

Accepted Answer

These items are examples of specialty goods, which are products that are unique and often high-priced, consumers will go out of their way to buy them, and they are typically not purchased frequently.

Question 18

Suppose you work for a firm that manufactures and sells pet accessories.As part of your job,you frequently visit city parks and observe how people interact with their pets.You also talk to the staff members of veterinary clinics to discover how people relate to their pets.This activity is consistent with the ________ phase of new product development.
A)idea generation
B)business analysis
C)prototype development
D)screening
E)product testing

Accepted Answer

The activity of observing how people interact with their pets and talking to staff members of veterinary clinics is consistent with the idea generation phase of new product development. This is because the goal of idea generation is to gather as much information as possible about potential customers and their needs, which can then be used to create new product ideas.

Question 19

Why are businesses interested in the development of new products?
A)The federal government encourages every product manufacturer to spend 1 percent of revenue on new product development.
B)New products are necessary to stay in business.
C)New products keep the warranty and service departments busy.
D)New products provide the fun that marketing managers need.
E)Product development provides an opportunity for large tax write-offs.

Accepted Answer

New products are necessary to stay competitive and relevant in the market. Without innovation and development, businesses risk falling behind their competitors and losing market share.

Question 20

Black & Decker makes toasters,vacuum cleaners,electric drills,and a variety of other appliances and tools.This is Black & Decker's
A)product blend.
B)product offering.
C)product mix.
D)product line.
E)multiple product lines.

Accepted Answer

A product mix refers to the full range of products offered by a company, which in this case includes toasters, vacuum cleaners, and electric drills among other products.

Quiz 12: Understanding Marketing Principles and Developing Products

Pencils,brooms,and gloves are examples of ,while factories,water towers,and airplanes are examples of .

Assuming a company has been gathering ideas for new products,what is the next step in the development process?

For many years,ServiceMaster focused on residential customers,but now it has added business and industry services.This is an example of

Bread is an example of a(n) ,while the catering for a wedding reception is an example of a(n) .

Which defining word or phrase below best captures the meaning of capital items?

Coffee,potato chips,and AA batteries are examples of ,while tires are an example of .

Ford offers four different models of the Escort which run the gamut from the three-door sport model to the five-door sedan.This represents

Advertisements for the Swatch Chrono watch remind consumers that they don't get just "real" features like shock and water resistance when they buy the product.This is an example of

Buildings,manufacturing equipment,computers,and desks are examples of ________ purchased by companies that make other goods.

What is the purpose of the screening stage of the product development process?

Stereos,tires,business suits,and furniture are examples of ________ goods.

You are asked to come up with a new widget.What would your first step be?

Which of the following is correct regarding the product mix and product line concepts?

Which of the following is correct with regard to the concept of a "product"?

Light bulbs,pencils,pads of paper,and lubricating oils for machines are examples of ________ purchased by companies that make other goods.

Goods which are very important,expensive,and rarely purchased are ________ goods.

Diamond rings,Rolex watches,Godiva chocolates,and Rolls Royces are examples of

Why are businesses interested in the development of new products?

Black & Decker makes toasters,vacuum cleaners,electric drills,and a variety of other appliances and tools.This is Black & Decker's