Question 1

The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Proctor & Gamble's in bar soaps.

Accepted Answer

The term "product line" refers to a group of products that are closely related and marketed under a single brand name. The six bar soap products produced by Procter & Gamble (Ivory, Camay, Lava, Safeguard, Zest, and Coast) are all related and part of the same product line. Therefore, the best choice is D - product line.

Question 2

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

Accepted Answer

A product line refers to a group of similar or related products offered by a firm. A product matrix refers to a chart that shows the relationship between different product lines and target markets. A product mix refers to the total set of products offered by a firm, including different product lines. Total product offer refers to the entire bundle of products, services, and benefits that a customer is offered in exchange for their money. Therefore, the best choice is B - product line.

Question 3

The combination of product lines offered by a manufacturer is called the firm's:

Accepted Answer

The answer of The combination of product lines offered by...

Question 4

Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies. In fact, taste tests suggest that the candy itself, while quite good, isn't much better than other well-known brands of chocolate. However, the company wraps its candies in expensive looking foil and places them in very attractive boxes. It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most competitors, but sales continue to grow. This success indicates that:

Accepted Answer

The success of Sweet Dream Confectioners suggests that there is more to the total product offer than just the physical product. The attractive packaging, advertising, and promotion play an important role in influencing consumer behavior and willingness to pay a higher price for the product. This highlights the importance of marketing and branding in creating value for consumers.

Question 5

LoRider Wheels sells high quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department. All of these elements are part of the offered by LoRider.

Accepted Answer

The total product offer encompasses all aspects of a product or service, including not only the physical product but also the environment, salespeople, and service department. LoRider's pleasant environment, friendly salespeople and excellent service department are all part of their total product offer. The product line refers to a group of related products offered by a company, and competitive environment is the surrounding businesses and factors that impact competition. Marginal utility package is not a relevant term in this context.

Question 6

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

Accepted Answer

The combination of factors that consumers evaluate before making a purchase decision is known as the total product offer, which includes the product itself, along with its features, design, quality, packaging, brand, warranty, and after-sales service. The other options, such as product mix (B), product differentiation (C), and product package (D), refer to specific subsets of the total product offer.

Question 7

The Procter & Gamble (P&G) Company produces bar soap, disposable diapers, deodorants, laundry detergents, cookies, cake mix, shampoo, shortening, and many other products. These products are part of P&G's:

Accepted Answer

P&G's range of products, which includes multiple product lines, is known as their product mix. The product mix includes all the products that a company produces and sells to its customers.

Question 8

In evaluating colleges, students and parents are likely to judge a school:

Accepted Answer

Students and parents are likely to judge a school based on the collection of benefits offered by the school, such as availability of scholarships, quality of facilities, student life activities, and job placement rates. While major curriculums and tuition costs are important considerations, they are not the only factors that determine the overall value of a college education. Similarly, while the anticipated rate of return on tuition investment may be a factor in decision-making, it cannot be accurately predicted and should not be the sole determining factor in choosing a college.

Question 9

Grandpa's Burger Haven sells a medium soda for $1.50, a "Single Meat" burger for $1.99, and onion rings for $1.83. However if you buy the "Single Meat Meal" the price is $5.00. Grandpa's is practicing price bundling with the "Single Meat Meal."

Accepted Answer

Price bundling is the practice of offering several products or services for sale as one combined product or service package at a special price. In this case, Grandpa's Burger Haven is offering a discount on the "Single Meat Meal" which includes a burger, fries, and soda, making it an example of price bundling.

Question 10

Admiral Motors is the dominant firm in the auto market. When Admiral announces an increase in the prices of its automobiles, Chord and Frysler, the smaller firms in the market, usually quickly announce similar price increases for their own cars. This situation is an example of demand-oriented pricing.

Accepted Answer

The answer of Admiral Motors is the dominant firm in...

Question 11

When consumers calculate the value of a product, they:

Accepted Answer

Consumers typically evaluate the value of a product by considering the benefits the product provides and then subtracting the cost of acquiring it. This allows them to determine whether the product is worth the investment in their eyes. A and D are not accurate representations of how consumers typically calculate value, and B is flawed because nontangible elements, such as brand perception, can often play a role in a consumer's estimation of value.

Question 12

Community Catering Services, Inc. advertises that they are the "friendliest caterers in town." Their prices are no lower than the rates charged by competing caterers, but they put a lot of emphasis on getting to know the needs of their customers. They tailor their efforts to meet these needs, providing a unique dining experience that exactly matches the customer's expectations. Community Catering is likely to find that this approach is more effective in achieving its goals than the use of aggressive price- cutting.

Accepted Answer

By focusing on customer service and tailoring their efforts to meet customer needs, Community Catering Services, Inc. is likely to build a loyal customer base and differentiate themselves from competitors, which can be more effective than solely relying on price-cutting.

Question 13

Borden, Inc. makes pasta, dairy items, and adhesives. These different types of products are referred to as Borden's:

Accepted Answer

Borden's different types of products (pasta, dairy items, and adhesives) make up its product mix, which encompasses all the product lines that Borden offers. Therefore, the best choice is B) product mix. A) product line refers to a group of products within a product mix that are closely related. C) product differentiation refers to the process of distinguishing a product from its competitors. D) product life cycle refers to the stages a product goes through from launch to eventual decline.

Question 14

Budd's Floral Shoppe is located in a large town that has several other florists. The owner, Rose Budd, is likely to find that the presence of many larger competitors means that the only way she can survive is to charge rock bottom prices.

Accepted Answer

It is not necessarily true that the only way for Budd's Floral Shoppe to survive is to charge low prices. There are other strategies that they can use such as niche marketing, offering unique products or services, or better customer service that can help them differentiate themselves from their competitors.

Question 15

Which of the following would be included in evaluating the total product offer of benefits that consumers consider when buying a good or service?

Accepted Answer

The answer of Which of the following would be included...

Question 16

The Coca Cola Company produces Diet Coke, Diet Coke with Splenda, and Coke Zero along with a number of other flavors. These products are part of Coke's:

Accepted Answer

A product line refers to a group of products that are similar in nature and function, and are marketed under the same brand. In this case, Diet Coke, Diet Coke with Splenda, and Coke Zero are all products under the Diet Coke brand, making them part of Coke's product line.

Question 17

Whether a consumer thinks a product provides the best value depends upon:

Accepted Answer

The answer of Whether a consumer thinks a product provides...

Question 18

The "Spotlight on Small Business" box in Chapter 14 suggests the product offered by Dream Dinners is the:

Accepted Answer

The "Spotlight on Small Business" box in Chapter 14 describes Dream Dinners as a company that provides a unique experience in which customers come in and prepare pre-packaged meals alongside other customers. The focus is on providing a fun, social activity while also meeting the needs of busy families.

Question 19

Restaurants, like other businesses, often find that the best way to succeed in the market is to:

Accepted Answer

Listening to customers and adapting products to their needs allows restaurants to cater to the preferences of their target market, which can lead to increased customer satisfaction and loyalty, ultimately resulting in success in the market. Creating a product for an exceptionally high price may not be sustainable in the long run, while focusing solely on advertising and personal selling may not be enough to keep customers coming back. Opening more stores in a single year may lead to market saturation and potentially diluting the brand's identity.

Question 20

Webster Industries is one of the first producers of a unique consumer product. The company has chosen a low price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Webster's approach to pricing is a classic example of the skimming strategy.

Accepted Answer

The statement is incorrect. The described pricing strategy is not an example of skimming, but rather penetration pricing, which is the opposite strategy. Skimming involves setting a high initial price for a new product in order to maximize profits from early adopters, then gradually lowering the price as competition enters the market.

Quiz 14: Developing and Pricing Goods and Services