Question 1

Service firms may serve consumer markets or business markets, but not both.

Accepted Answer

Service firms can serve both consumer markets and business markets. For example, a accounting firm can serve individual consumers for tax preparation as well as serve business clients for bookkeeping and financial planning.

Question 2

Advertising is seldom an important component in the marketing mix for accessory equipment products.

Accepted Answer

Advertising can be an important component in the marketing mix for accessory equipment products as it helps to increase brand awareness, promote new or updated products, and differentiate the product from competitors. However, other components such as personal selling or public relations may also be more effective in reaching the target market.

Question 3

In terms of planning time involved in a purchase, convenience and specialty products take very little time, while shopping products take an extensive amount of time.

Accepted Answer

Convenience products typically take very little planning time as they are bought frequently and with minimal effort. Specialty products, however, often involve a significant amount of planning and time because they are unique and of high value, leading consumers to spend more time making a decision. Shopping products fall in between, requiring a moderate amount of planning and time as consumers compare several options before making a purchase.

Question 4

When Big Bottle Brewing Company purchases barley, malt, and hops, it is assured of standardized raw materials of uniform quality due to the fact that most raw materials are graded prior to sale.

Accepted Answer

Raw materials such as barley, malt, and hops are typically graded prior to sale, which ensures a standardized and uniform quality for Big Bottle Brewing Company when purchasing these materials.

Question 5

MRO items, although relatively standardized, are rarely subject to heavy price competition.

Accepted Answer

MRO items can be subject to price competition due to the availability of multiple suppliers and the increasing trend of online marketplaces.

Question 6

Business buyers do NOT expect a firm that manufactures one product to make related products as well.

Accepted Answer

Business buyers may expect a firm that manufactures one product to make related products as well, especially if they are complementary or necessary for the use of the main product. For example, a company that produces printers may also offer ink cartridges and paper.

Question 7

The ISO 9001:2000 standards were developed in Asia to assist businesses in selecting suppliers that have met certain specifications for quality.

Accepted Answer

The ISO 9001:2000 standards were developed by the International Organization for Standardization (ISO) and are not specific to any region or country. They provide a framework for improving the quality management system of an organization, not just for selecting suppliers.

Question 8

If a company that is marketing installations to the business market uses advertising at all, it emphasizes the company's reputation and directs potential buyers to contact local sales representatives.

Accepted Answer

The company emphasizes its reputation and encourages potential buyers to contact local sales representatives.

Question 9

Component parts and materials are unfinished industrial products from one producer that eventually become part of the finished product of another producer.

Accepted Answer

The answer of Component parts and materials are unfinished industrial...

Question 10

Consumer products are classified as convenience, shopping, and specialty.

Accepted Answer

This is true. Consumer products are classified into three categories - convenience products, shopping products, and specialty products, based on consumer buying behavior.

Question 11

A slotting allowance is money paid by a producer to a retailer to guarantee display of its merchandise.

Accepted Answer

A slotting allowance is a payment made by a manufacturer or supplier to a retailer to ensure that their product is displayed in a prominent and advantageous location within the retail store. Retailers may charge slotting fees for carrying a new product or repositioning an existing one in their store. These fees are to cover the costs associated with rearranging the store shelves, updating pricing labels, etc. Slotting allowances are a common practice in the food and beverage industry, and they are intended to incentivize retailers to stock and promote certain products.

Question 12

Price typically does NOT dominate purchase decisions for installations in the business market.The purchasing firm buys such products on the basis of efficiency and performance.

Accepted Answer

The statement is true. Businesses prioritize efficiency and performance over price when purchasing installations.

Question 13

Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.

Accepted Answer

Purchasers need consistent supplies of the same quality products in order to ensure proper functioning and compatibility with their production process.

Question 14

One of the major problems with the classification system for consumer products is that not all goods and services fit into just one category.

Accepted Answer

This is true. Many products and services have features that could fit into multiple categories, or may not fit squarely into any established category.

Question 15

Total Quality Management (TQM) improves quality primarily by using end-of-the-line inspections to identify products that don't meet specifications.

Accepted Answer

TQM is a comprehensive management approach that involves all employees in continuous improvement efforts to enhance the quality of products and services. It focuses on preventing defects rather than just detecting them through end-of-the-line inspections. TQM involves a range of activities such as employee training, process improvement, customer satisfaction measurement, and supplier involvement to achieve quality excellence.

Question 16

The National Quality Institute defines international criteria for quality management and quality assurance.

Accepted Answer

The National Quality Institute does not define international criteria; such criteria are typically set by organizations like the International Organization for Standardization (ISO).

Question 17

Benchmarking seeks to identify how business leaders recognize superior marketing performance in their industries and develop a system for continuously comparing and measuring performance against outstanding performers.

Accepted Answer

Benchmarking is a process of comparing one's performance metrics against industry best practices or competitors to identify areas of improvement and develop an action plan for better performance. It involves recognizing superior performance, measuring performance, and comparing it to outstanding performers.

Question 18

Representatives that sell installations to the business market often provide technical expertise along with tangible goods.

Accepted Answer

Representatives who sell installations to the business market typically offer technical assistance and knowledge in addition to physical products.

Question 19

Accessory equipment for the business market includes products such as hand tools, portable drills, and laptop computers.

Accepted Answer

Accessory equipment for the business market does include products such as hand tools, portable drills, and laptop computers.

Question 20

The purpose of benchmarking is to achieve the minimum acceptable performance for releasing a product into the marketplace.

Accepted Answer

The purpose of benchmarking is to measure and compare the performance of a product or process against industry standards or competitors in order to identify areas for improvement and increase performance beyond the minimum acceptable level. It is not solely focused on meeting minimum requirements for release into the marketplace.

Quiz 9: Product and Service Strategies