Question 1

Regarding business products,

Accepted Answer

Sellers of accessory equipment usually face more competitors as it is a highly competitive market with numerous players. On the other hand, installations involve a larger investment, and the market is relatively less crowded. The other options are incorrect: A is incorrect since derived demand affects the demand for all types of business products, including accessory equipment. C is incorrect as the target market size depends on the type of accessory and its application. D is incorrect since accessories can often be treated as a capital expenditure. E is incorrect as special services and advice are equally important for both accessories and installations.

Question 2

Which of the following business products are usually treated as expense items?

Accepted Answer

Professional services and supplies are typically treated as expense items because they are consumed or used up in the normal course of business operations.

Question 3

A marketing manager developing a marketing mix to sell ______ probably needs to be concerned with grading, transportation, and storing because of seasonal production and/or perishable products.

Accepted Answer

Seasonal production and perishable products indicate that the product being sold is likely a raw material, such as fresh produce or dairy. Grading, transportation, and storage are all critical factors in ensuring the quality and freshness of these types of products, and therefore need to be carefully considered in the marketing mix.

Question 4

A Xerox photocopy machine in the university chancellor's office is an example of what type of business product?

Accepted Answer

The answer of A Xerox photocopy machine in the university...

Question 5

Which of the following is NOT a component material?

Accepted Answer

Copper ore is not a component material because it is the raw material from which copper is extracted.

Question 6

A firm which makes special batteries that boat and motorcycle manufacturers buy and install directly in their new boats and cycles is selling:

Accepted Answer

The firm is selling batteries, which are component parts that are installed in the boats and cycles by the manufacturers.

Question 7

A product which becomes part of a buyer's final product, and still requires more processing is called:

Accepted Answer

A component material is a product that becomes part of a buyer's final product and still requires additional processing. It is not considered a finished product or a raw material that requires significant processing.

Question 8

Accessory equipment:

Accepted Answer

Accessory equipment often requires knowledgeable personnel to provide technical information and support. Additionally, these personnel need to have numerous contacts to effectively distribute the equipment. The distribution does not necessarily need to be very widespread, but it does need to be fairly extensive to ensure prompt delivery. Option B best describes these requirements.

Question 9

Logs, fish, cotton, and strawberries can all be:

Accepted Answer

Logs, fish, cotton, and strawberries are all natural resources that have not yet been processed into finished goods. As such, they are considered raw materials.

Question 10

A product which becomes part of a buyer's final product and comes finished and ready for assembly is called:

Accepted Answer

A component part is a product that becomes part of a buyer's final product and comes finished and ready for assembly. Raw materials require further processing, component materials require additional processing and assembly, accessory equipment is used to enhance a buyer's final product, and an installation involves the set-up of a buyer's final product in a specific location.

Question 11

Which of the following is NOT a business raw material?

Accepted Answer

All of the above are examples of business raw materials. Logs are used in the lumber industry, coal is used in energy production, wheat is used in the food industry, and cattle are used in the meat and dairy industries.

Question 12

A Hewlett-Packard "all-in-one" printer that serves as a computer printer, fax machine, copier, and scanner would fall into which of the following business product classes?

Accepted Answer

Accessories are business products that include office equipment, which can encompass multifunction devices like an all-in-one printer. These items support office operations without being part of the final physical product offered by the business.

Question 13

Raw materials

Accepted Answer

Raw materials are unprocessed but eventually become part of a final physical good. They include both farm products and natural products.

Question 14

Bonafide Electric produces electric motors that power refrigerators, air condition units, washing machines, and many other electric appliances produced by various manufacturers. Bonafide Electric is selling

Accepted Answer

Bonafide Electric is producing electric motors which are a component part of the appliances produced by various manufacturers.

Question 15

Raw materials are different from other business products in that:

Accepted Answer

The answer of Raw materials are different from other business...

Question 16

A firm which makes stereo radios and CD players for car manufacturers who install them directly in their new cars is selling:

Accepted Answer

The firm is supplying stereo radios and CD players as component parts to car manufacturers which are then installed directly in their new cars.

Question 17

Procter and Gamble buys unprocessed logs which are handled as little as needed to move them to its plant. Eventually, they become part of P&G's disposable diapers and are considered an expense item on P&G's income statement. For P&G, logs are:

Accepted Answer

Logs are unprocessed and are used as the starting material for making disposable diapers. Hence, they are raw materials for P&G.

Question 18

Which of the following is NOT a business raw material?

Accepted Answer

While grease is used in various industries, it is not typically considered a raw material in the production of goods or services.

Question 19

Regarding accessory equipment, which of the following is NOT true?

Accepted Answer

Multiple buying influence is actually more important in the purchase of an installation than with accessory equipment.

Question 20

Sumitomo Bank, a large bank in southern California, has just purchased 120 high-speed telephone fax machines (costing about $1,300 each) to speed communications among its many offices. The purchase was made by the purchasing manager, who expects the machines to last about five years. In this case, the fax machines are:

Accepted Answer

Accessory equipment refers to less expensive and shorter-lived capital items than installations, and not part of the final product, like the fax machines in this scenario. They support office operations without being a major capital investment or integral component of the final product.

Quiz 9: Elements of Product Planning for Goods and Services

Regarding business products,

Which of the following business products are usually treated as expense items?

A marketing manager developing a marketing mix to sell ______ probably needs to be concerned with grading, transportation, and storing because of seasonal production and/or perishable products.

A Xerox photocopy machine in the university chancellor's office is an example of what type of business product?

Which of the following is NOT a component material?

A firm which makes special batteries that boat and motorcycle manufacturers buy and install directly in their new boats and cycles is selling:

A product which becomes part of a buyer's final product, and still requires more processing is called:

Accessory equipment:

Logs, fish, cotton, and strawberries can all be:

A product which becomes part of a buyer's final product and comes finished and ready for assembly is called:

Which of the following is NOT a business raw material?

A Hewlett-Packard "all-in-one" printer that serves as a computer printer, fax machine, copier, and scanner would fall into which of the following business product classes?

Raw materials

Bonafide Electric produces electric motors that power refrigerators, air condition units, washing machines, and many other electric appliances produced by various manufacturers. Bonafide Electric is selling

Raw materials are different from other business products in that:

A firm which makes stereo radios and CD players for car manufacturers who install them directly in their new cars is selling:

Procter and Gamble buys unprocessed logs which are handled as little as needed to move them to its plant. Eventually, they become part of P&G's disposable diapers and are considered an expense item on P&G's income statement. For P&G, logs are:

Which of the following is NOT a business raw material?

Regarding accessory equipment, which of the following is NOT true?