Question 1

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

Raw materials need to be graded. Nature produces what it will; but it must be sorted and graded to satisfy various market segments. Most buyers of raw materials want ample supplies in the right grades for specific uses, for e.g. vegetables.

Question 2

Regarding installations, which is NOT true?

Accepted Answer

Installations are a boom-or-bust business. During growth periods, firms may buy installations to increase capacity. But during a downswing, sales fall off sharply.

Question 3

______ are a boom-or-bust business.

Accepted Answer

Installations are a boom-or-bust business. During growth periods, firms may buy installations to increase capacity. But during a downswing, sales fall off sharply.

Question 4

Installations:

Accepted Answer

Installations such as buildings, land rights, and major equipment are important capital items.

Question 5

______________ are capital items that cost less and are shorter-lived than installations.

Accepted Answer

Accessories are short-lived capital items cost less and last a shorter time than installations. Accessories are more standardized than installations and they're usually needed by more customers.

Question 6

Raw materials

Accepted Answer

Raw materials are unprocessed expense items that are moved to the next production process with little handling. There are two types of raw materials: (1) farm products and (2) natural products. They eventually become part of a physical product.

Question 7

Multiple-buying influence would be most likely for:

Accepted Answer

Multiple-buying influence is displayed in one-of-a-kind installations like custom-made machines and generally requires special negotiations for each sale. Negotiations often involve top management and can stretch over months or even years.

Question 8

Regarding business products,

Accepted Answer

Accessories are more standardized than installations and they're usually needed by more customers. Sellers of accessories face more competitors than seller of installations.

Question 9

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

Accepted Answer

An expense item is a product whose total cost is treated as a business expense in the year it's purchased. All the above items are treated as expense items.

Question 10

____ are short-lived capital items.

Accepted Answer

Accessories are short-lived capital items cost less and last a shorter time than installations.

Question 11

"Installation" products:

Accepted Answer

One-of-a-kind installations like office buildings and custom-made machines generally require special negotiations for each sale. Negotiations often involve top management and can stretch over months or even years.

Question 12

A local copying service is buying a new kind of high speed color copier.

Accepted Answer

For installations, multiple-buying influence and new-task buying are common.

Question 13

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 short-lived capital items such as tools and equipment used in production or office activities.

Question 14

Trane Corp. manufactures long-lived, custom-made equipment which its customers treat as capital items. Trane's sales force faces much multiple-buying influence. Trane's products, which do not become part of the customer's final product, are:

Accepted Answer

Installations such as buildings, land rights, and major equipment are important capital items where multiple-buying influence and new-task buying are common.

Question 15

Compared to installations, accessory equipment

Accepted Answer

Accessories are more standardized than installations and they're usually needed by more customers.

Question 16

Raw materials are different from other business products in that:

Accepted Answer

The need for grading is one of the important differences between raw materials and other business products. Nature produces what it will; but it must be sorted and graded to satisfy various market segments.

Question 17

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

Accessories are short-lived capital items such as tools and equipment used in production or office activities.

Question 18

Accessory equipment:

Accepted Answer

Accessory equipment need fairly widespread distribution and numerous contacts by experienced and sometimes technically trained personnel; price competition is often intense, but quality is important.

Question 19

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

Accepted Answer

Accessories are short-lived capital items such as tools and equipment used in production or office activities.

Question 20

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

Accepted Answer

Multiple buying influence is less important in the purchase of accessory equipment than for installations since they cost less and last a shorter time.

Quiz 8: Elements of Product Planning for Goods and Services

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.

Regarding installations, which is NOT true?

______ are a boom-or-bust business.

Installations:

______________ are capital items that cost less and are shorter-lived than installations.

Raw materials

Multiple-buying influence would be most likely for:

Regarding business products,

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

____ are short-lived capital items.

"Installation" products:

A local copying service is buying a new kind of high speed color copier.

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?

Trane Corp. manufactures long-lived, custom-made equipment which its customers treat as capital items. Trane's sales force faces much multiple-buying influence. Trane's products, which do not become part of the customer's final product, are:

Compared to installations, accessory equipment

Raw materials are different from other business products in that:

Accessory equipment:

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

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