Deck 8: Product Decisions

Question 1

Which of the following statements does not apply to convenience goods?

A) Consumers are brand loyal to convenience products and are not likely to substitute other brands.
B) Convenience products require minimal shopping effort.
C) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible.
D) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one.
E) Colas, gasoline, and bread are good examples of convenience goods.

Answer 1

A

Question 2

A specialty product:

A) requires minimal effort to purchase.
B) is purchased frequently.
C) requires purchase planning, and the buyer will not accept substitutes.
D) is generally less expensive than other items in the same product class.
E) prompts the purchaser to make comparisons among alternatives.

Answer 2

C

Question 3

When a sudden problem confronts a consumer, such as emergency car repair, he or she is likely going to view solutions to that problem as:

A) specialty products.
B) installations.
C) unsought products.
D) shopping products.
E) convenience products.

Answer 3

C

Question 4

Discuss some of the issues a marketer should consider when marketing a shopping product.

Question 5

Identify and describe the major categories of business products.

Question 6

Give an example of a mature product and discuss what changes in a marketing strategy may be required as a product moves into the maturity stage of the product life cycle?

Question 7

Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ____ products.

A) shopping
B) convenience
C) industrial
D) specialty
E) unsought

Question 8

To make intangible products more tangible or real to the consumer, marketers often:

A) use low prices on intangible goods.
B) use symbols or cues to help symbolize product benefits.
C) use external reference prices.
D) use multiple channels of distribution.
E) offer more support services with such products.

Question 9

Why might products fail?

Question 10

Identify the major stages of the product life cycle, and identify different consumer products that may be in each stage.

Question 11

Facilities, factories, and production lines with very large equipment are all classified as:

A) accessory equipment.
B) permanents.
C) installations.
D) component parts.
E) MRO facilities.

Question 12

Which of the following is always used to determine the classification of a good?

A) Buyer's intent for using the product
B) Amount of shopping required by the buyer to obtain the product
C) Price of the product
D) Specific product features
E) Industry competitors

Question 13

A light bulb can be considered all of the following except:

A) a consumer product.
B) a business product.
C) either a consumer product or a business product.
D) a business product if it is used to light an assembly line in a factory.
E) a consumer product if it is used to light the office of the board of directors.

Question 14

Buyers do not compare alternatives when shopping for ____ products.

A) convenience
B) specialty
C) shopping
D) unique
E) unsought

Question 15

Describe and illustrate the four major categories of consumer products.

Question 16

Energizer batteries would be classified as which type of product?

A) Convenience
B) Shopping
C) Specialty
D) Unsought
E) Industrial service

Question 17

Which of the following is not a business product?

A) Oil to be refined into fuel
B) Chips to be integrated into components for personal computers
C) Paper, pens, and tape to be used in an office
D) Marketing consulting services to aid a company in marketing a new product
E) Calculators bought to help individuals complete their personal federal income tax forms

Question 18

Distinguish the difference between convenience and speciality consumer products and give an example of each one.

Question 19

Discuss the marketing efforts that are likely to be used during the growth stage of the product life cycle.

Question 20

According to the text, a product is defined as:

A) anything the customer receives in an exchange.
B) the physical object the customer receives in an exchange.
C) the service that is rendered to a customer.
D) the idea that the customer receives in an exchange.
E) goods and services the customer receives in an exchange.

Question 21

"Business Services" is not a category or type of business product.

Question 22

Aggressive pricing is typical during the ____ stage of the product life cycle.

A) decline
B) growth
C) introduction
D) plateau
E) stabilization

Question 23

A product's classification can influence its price, distribution, and promotion.

Question 24

During the introduction stage of a successful product, profits are usually:

A) at their highest point.
B) negative and decreasing.
C) negative and increasing.
D) positive and increasing.
E) declining.

Question 25

Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product.

Question 26

The difference between absolute and relative product failure is:

A) absolute product failure can be fixed by repositioning or improving the product, whereas relative product failure is permanent.
B) relative product failure loses money on its investment, whereas absolute product failure returns a small profit.
C) relative product failure is the result of poor timing, whereas absolute product failure is the result of the lack of the ability to provide benefits that satisfy customers' desires.
D) absolute product failure is caused by design problems, whereas relative product failure is caused by poor promotion or distribution.
E) absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.

Question 27

What measure of the product mix involves the number of product lines a company offers?

A) Quality
B) Consistency
C) Depth
D) Width
E) Size

Question 28

During the growth stage of the product life cycle, marketers must:

A) fortify the product position.
B) move to exclusive distribution.
C) raise the price.
D) increase promotion as a percentage of sales.
E) introduce private brands.

Question 29

The buyer's intent can determine whether an item is classified as a consumer or a business product.

Question 30

All of the following are reasons why new products fail except:

A) overestimated market size.
B) followed a systematic plan.
C) distributed insufficiently.
D) had poor timing.
E) promoted poorly.

Question 31

A product need not be a physical product.

Question 32

A product mix is best described as:

A) all products offered by a firm.
B) product, distribution, promotion, and price.
C) many products sold by one firm.
D) all products of a particular type.
E) a group of closely related products that are considered a unit because of market, technical, or end-use considerations.

Question 33

The width of a product mix is measured by the number of product:

A) dimensions in the product line.
B) features in each brand.
C) items in the product line.
D) lines a company offers.
E) specialties a company offers.

Question 34

A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

Question 35

A product item is best described as a:

A) component of a marketing mix.
B) particular brand.
C) specific characteristic of a product.
D) specific version of a product.
E) unit of measure for the product.

Question 36

In which stage of the product life cycle do profits peak?

A) Introduction
B) Growth
C) Decline
D) Termination
E) Maturity

Question 37

A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called:

A) harvesting.
B) investing.
C) realigning.
D) divesting.
E) mixing.

Question 38

Supporting services, such as installation and guarantees, are part of a product.

Question 39

Minerals, chemicals, timber, and agricultural products are considered ______

A) process materials.
B) accessory materials.
C) MRO supplies.
D) component parts.
E) raw materials.

Question 40

Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and:

A) production activities.
B) service assistance.
C) specialty industrial products.
D) computer programming and operation services.
E) MRO supplies.

Question 41

Changing the product's quality is a distinct alternative in the maturity stage of the product life cycle.

Question 42

The depth of a product mix is measured by the average number of product types in a product line.

Question 43

When an organization introduces a new product, people do not all begin the adoption process at the same time, nor do they move through the process at the same speed.

Question 44

Advertising used in the decline stage may prolong the life of the product.

Question 45

Communicating product benefits to consumers is very important in the introduction stage.

Question 46

Sometimes new marketing channels open up in the decline stage.

Question 47

Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of aggressive competition.

Question 48

The success of launching a new product is based primarily on luck.

Question 49

The original marketing strategy should not be altered in any way as a product travels through the stages of the product life cycle because consumers can become confused.

Question 50

Promotion decreases in importance during a product's decline stage.

Question 51

Many products never get beyond the introduction stage.

Question 52

Price cuts are typical in a product's growth stage.

Question 53

Product mix refers to a related group of products in the product line.

Question 54

A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product mix.

Question 55

One of the most common reasons new products fail is because of a company's failure to match product offerings to customer needs.

Question 56

If a company repositions a relative product failure, that product might become a successful member of the product line.

Question 57

A product mix is the composite or total group of products that an organization makes available to customers.

Question 58

The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.