Deck 10: Product Concepts

Question 1

Even though the growth of the service sector worldwide has been sluggish in the past decade,the service sector now accounts for approximately one-fourth of the gross domestic product in the United States.

Answer 1

False
Growth in service has been tremendous,and the service sector accounts for about 81 percent of GDP.

Question 2

Isaac Golding,owner of a tutoring service,has developed a design for his firm that includes an owl wearing large spectacles and carrying a satchel crammed full of books and papers.He plans to use this design on all communications the firm sends out.This design is called the firm's brand name.

Answer 2

False
Such a design would be called the firm's brand mark,which is the elements of a brand that cannot be spoken.

Question 3

Branding has three main purposes: product identification,repeat sales,and new-product sales.

Answer 3

True

Question 4

Greta,the owner of House Mouse Cleaning Services,must be physically present when she cleans a house or office.The need for her presence as the service is performed is an example of the intangibility of services.

Question 5

A product may be defined as everything,both favorable and unfavorable,that a person receives in an exchange.

Question 6

An elementary school teacher purchased a ream of art paper,a box of crayons,and some modeling clay.The teacher intends to use these products in her classroom,so they would be classified as business products.

Question 7

Inez believes makeup is the most important part of her wardrobe.She spends considerable time comparing the prices,skin tones,and color options available at various cosmetics counters in department stores.For Inez,makeup is a convenience product.

Question 8

A product unknown to the potential buyers,or a known-product that the buyers does not actively seek is referred to as an undesirable product.

Question 9

Apple is known for its Macintosh,iPod,and iPhone products.Apple recently added the iPad product to its list of products.The addition of the iPad was an example of a product line extension for the company.

Question 10

Often hotels will offer deep discounts on weekends and during the off-season; for the same reason,airlines will adopt a similar pricing strategy during off-peak hours.These services cannot be stored,warehoused,or inventoried because they are perishable.

Question 11

Heterogeneity of services means the quality of a service may not be consistent.

Question 12

Insurance companies are examples of service organizations.

Question 13

Rolex watches are very expensive,can only be purchased in high-end jewelry stores located in large metropolitan areas,and most buyers will accept no substitutes.Roles watches are an example of a shopping product.

Question 14

Coca-Cola is one of the world's largest manufacturers of beverages.It makes over 2,800 different beverage products,including sparkling drinks,waters,juices,juice drinks,teas,coffees,sports drinks,and energy drinks.The great variety of beverages made by Coca-Cola represents its product mix.

Question 15

Services tend to exhibit more search qualities than do tangible goods.

Question 16

Convenience products,though inexpensive,still require considerable shopping effort by buyers.

Question 17

Services are considered inseparable because most services cannot be felt or touched in the same way most goods can be sensed.

Question 18

Chef's Catalog built its reputation on selling the highest-quality baking ingredients.The catalog retailer has added a line of fine kitchen tools and wants its customers to think of the retailer as a place to buy everything needed to bake the finest breads and desserts--not just for buying the ingredients.The marketing term for changing consumers' perceptions of the Chef's Catalog is segmentation.

Question 19

Given the many differences in majors available,living options,and image differences,universities would be classified as a heterogeneous shopping product for most people.

Question 20

Product modification occurs when changes are made in how the product functions,its quality,or some aesthetic characteristic of the product.

Question 21

Retailers love national brands because overhead is low and there are no marketing costs,and they bring higher margins than private brands.

Question 22

Brand names such as Kleenex,UPS,Sony,Chevrolet,and Kellogg's are likely to have less brand equity than brand names like Viking,Zojirishi,Schimano,and Thule.

Question 23

The _____ is the starting point in creating a marketing mix.

A) price
B) product
C) distribution channel
D) promotional media
E) production line

Question 24

Cultural traits can make a package design successful in one country and a failure in another.

Question 25

When the manufacturer of French's classic yellow mustard introduced French's Dijon mustard,French's Honey mustard,and French's Sweet Onion mustard,it was an example of cobranding.

Question 26

The most important functions of packaging are to contain and protect products,promote products,facilitate product storage,and facilitate recycling.

Question 27

When a greenhouse plant grower sells plants to nursery retailers,is selling _____ products.

A) specialty
B) consumer
C) convenience
D) business
E) unsought

Question 28

Trademark protection only lasts for five years.

Question 29

Due to the time required to scan them,universal product codes (UPCs)are typically placed on merchandise that would be classified as shopping products.

Question 30

The consumer products are usually classified is based on:

A) how the market is segmented
B) the way the products are manufactured
C) the way products are used
D) the physical attributes of the product
E) the amount of effort consumers spend to acquire the product

Question 31

A warranty does not confirm the quality or performance of a good or service.

Question 32

Rock-Tenn produces cardboard cartons to be used by companies in the food industry.Rock-Tenn is selling _____ products.

A) specialty
B) consumer
C) business
D) convenience
E) unsought

Question 33

Why is creation of a product the starting point for the marketing mix?

A) The production department must know what to produce first.
B) Production strategy is the first of the four Ps listed in the marketing mix.
C) Determination of the price,promotional campaign,and distribution network cannot begin until the product has been specified.
D) Product development takes the longest amount of time to complete.
E) Actually,the product does not have to be the starting point--promotional strategies are often the starting point.

Question 34

Which of the following is NOT an example of a product's tangible feature?

A) brand equity
B) packaging
C) color
D) weight
E) size

Question 35

The nutrition label on a package is an example of persuasive labeling.

Question 36

A _____ is everything,both favorable and unfavorable,that a person receives in an exchange.It can be tangible,intangible,a service,an idea,or a combination of these things.

A) brand equity
B) quality
C) warranty
D) transaction
E) product

Question 37

A company that wants to market its product globally has only two branding strategies available: either use the brand name everywhere or develop a new brand name for each different market.

Question 38

Sam likes Michelin tires.If he needs new tires and Michelin's are not on sale,he is willing to pay a higher price for Michelin rather than buy some other brand.Sam is brand loyal to Michelin.

Question 39

There are so many high-definition television sets on the market,and they vary so much on price,quality,and features that consumers often have trouble comparing them.A high-definition TV would probably be considered a _____ product.

A) convenience
B) specialty
C) heterogeneous shopping good
D) homogeneous shopping good
E) generic

Question 40

All sales have an implied warranty under the Uniform Commercial Code.

Question 41

When Kyla wanted patio furniture,she visited stores that had outdoor furniture,including Home Depot,Lowe's,Target,and Howard Lumber Company to find the set that would look just right on her patio.If Kyla represents a typical patio furniture shopper,you know this product is a(n):

A) homogeneous luxury product
B) shopping specialty good
C) operating supply good
D) convenience item
E) heterogeneous shopping good

Question 42

Andrea needs to find a kennel for boarding her son's dogs.There are several different kennels in her community,and Andrea believes all of them to be basically alike.The only feature she is genuinely concerned about is low price.For Andrea,the kennel for boarding dogs would be classified as a(n)_____ product.

A) specialty
B) unsought
C) heterogeneous shopping
D) basic convenience
E) homogeneous shopping

Question 43

_____ products are searched for extensively,and substitutes are not acceptable.These products may be quite expensive,and often distribution is limited.

A) Exclusive shopping
B) Homogeneous convenience
C) Branded shopping
D) Specialty
E) Heterogeneous convenience

Question 44

_____ products are purchased with little shopping effort.These products typically are purchased regularly,usually with little planning,and require wide distribution.

A) Convenience
B) Specialty
C) Branded shopping
D) Unbranded shopping
E) Generic

Question 45

Which of the following is the best example of a convenience product?

A) concert tickets
B) chewing gum
C) jeans
D) chemical for the swimming pool
E) a birthday present

Question 46

_____ products are seen by consumers to differ in quality,style,suitability,and lifestyle compatibility.Comparisons between these products are often quite difficult because they may have unique features and different levels of quality and price.

A) Product equivalents
B) Comparative convenience products
C) Homogeneous shopping products
D) Product counterparts
E) Heterogeneous shopping products

Question 47

Harrison wanted a gas water heater.He watched newspaper ads until he found one on sale.For Harrison the water heater is a(n)_____ product.

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

Question 48

Amy stopped by the grocery store to pick up a gallon of milk.As she was waiting to check out she noticed that Soap Opera Digest had an interesting story about one of her favorite characters.As Amy is a huge fan of the long running soap,she had to buy a copy.In this example,the Soap Opera Digest is an example of a(n)_____ product.

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

Question 49

The two types of shopping products are:

A) unsought and convenience
B) generic and family
C) exclusive and intensive
D) heterogeneous and homogeneous
E) consumer and business

Question 50

Bang & Olufsen make some of the best sound systems in the world.After years of development,Bang & Olufsen recently released its new BeoLab 5 speakers.For audiophiles who demand the best in audio equipment,the $19,950 Bang & Olufsen BeoLab 5 speakers represent an example of a(n)_____ product.

A) heterogeneous shopping
B) specialty
C) homogeneous shopping
D) convenience
E) exclusive

Question 51

Which type of consumer product requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores?

A) unsought product
B) secondary product
C) unique product
D) shopping product
E) selective product

Question 52

Janet will only purchase Williams and Sonoma products for her kitchen.The products are expensive but Janet feels they have the highest quality and will last a very long time.These products represent _____ products.

A) heterogeneous shopping
B) specialty
C) homogeneous shopping
D) convenience
E) business

Question 53

The convenience product marketing strategy includes:

A) wide distribution of the product
B) higher than ordinary prices
C) few retail outlets other than convenience stores
D) significantly lower promotion budgets
E) products that are not easily substitutable

Question 54

When deciding on distribution plans for specialty products,companies generally ensure that the items are:

A) made available only as private brands
B) made available in a large number of stores in a geographic area
C) made available only through the mail
D) distributed to a considerable number of stores in a geographic area
E) distributed to only a few stores in the geographic area

Question 55

Kathy is driving Chaz,her young son,home from soccer practice when Chaz say,"Mom,I'm thirsty." Kathy immediately pulls the SUV into the nearest gas station and buys Chaz a Coke.For Kathy,the Coke is best described as an example of buying a _____ product.

A) homogeneous shopping
B) heterogeneous shopping
C) convenience
D) specialty
E) component

Question 56

Compared to the other classifications of consumer products,shopping products are:

A) widely available so they need little or no promotion
B) usually less expensive than convenience products
C) purchased without significant planning
D) usually more expensive than convenience products and are found in fewer stores
E) purchased immediately after the consumer realizes he or she needs them

Question 57

Evan Zimmermann loves watches.He collects vintage Rolex sport models made between 1950 and 1960.He paid $1,500 for his first watch in 2000.Now,the watch is worth $15,000.For Evan,the vintage watches are an example of a(n)_____ product.

A) specialty
B) consumer
C) convenience
D) business
E) unsought

Question 58

_____ are products consumers see as being basically the same,so consumers shop for the lowest price.

A) Low-prestige specialty products
B) Product equivalents
C) Heterogeneous shopping products
D) Generic convenience products
E) Homogeneous shopping products

Question 59

Which of the following products is most likely to be considered an example of a heterogeneous shopping product?

A) apartment
B) laundry detergent
C) electric automobile
D) package of pens
E) dog food

Question 60

Which of the following is the best example of a shopping product for most consumers?

A) washing detergent
B) crackers
C) soft drink
D) digital camera
E) magazine

Question 61

A service cannot be touched,seen,tasted,heard,or felt in the same manner in which goods can be sensed and,therefore,is referred to as:

A) impervious
B) extraneous
C) synergistic
D) perishable
E) intangible

Question 62

Unsought products typically are products that:

A) consumers purchase when they see them in a convenient location
B) consumers definitely don't want
C) only require reminder advertising to be successful
D) require little or no decision making by the buyer
E) consumers don't know about or don't actively look for

Question 63

A(n)_____ is the result of applying human or mechanical efforts to people or objects.

A) application processor
B) profit intermediary
C) tangible product
D) service
E) nonprofit organization

Question 64

"Girls Just Wanna Have Funds" is a Washington,D.C.support group that consist of mostly young women that offers tips on budgeting and debt relief.Since you cannot evaluate the quality of the financial advice until after you have received it,this is an example of the _____ characteristic of service.

A) Reliability
B) Heterogeneous satisfaction
C) Search quality
D) Temporal quality
E) Experience quality

Question 65

In general,most consumers don't spend a lot of time thinking about their funeral.So some funeral home advertising tries to get them to think about their loved-ones and encourage preplanning their funeral.This is an attempt to get people to think about a product that most consumers do not actively seek.In other words,insurance is a(n)_____ product.

A) heterogeneous shopping
B) specialty
C) unsought
D) business
E) consumer

Question 66

Which unique characteristic of services means consumers must be present during the production?

A) intangibility
B) inseparability
C) heterogeneity
D) perishability
E) connectivity

Question 67

It is difficult for most of us to talk about mistakes we have made.Unfortunately,for organizations like Consumer Credit Counseling to help you work through your financial issues,you must be willing to honestly discuss your financial condition.In other words,for these organizations to help you must be actually involved in the process of developing your financial plan,which points to the _____ nature of services.

A) intangibility
B) inseparability
C) heterogeneity
D) perishability
E) flexibility

Question 68

PayPal allows you to pay for items that you buy at online sites such as eBay without exposing your credit card or bank account number.To use PayPal you simply select PayPal when checking out at the online store,and then allow PayPal to pay directly from a credit card or from your PayPal balance or linked bank account.PayPal would be classified as a:

A) good
B) tangible resource
C) tangible product
D) service
E) nonprofit organization

Question 69

A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience is referred to as _____ quality.

A) search
B) experience
C) credence
D) abstract
E) inert

Question 70

Freda was proud of her shiny new iPhone.She was disappointed when she began to notice scratches on its display surface.If Freda had of known about the clear static cling protective films that were available to protect the iPhone display from scratches,she could have avoided this annoying problem.For Freda,the protective films are a(n)_____ product.

A) heterogeneous shopping
B) specialty
C) unsought
D) convenience
E) consumer

Question 71

Which of the following services would be most likely to exhibit strong credence qualities?

A) a math tutorial service
B) the repair of a leaky drain
C) the preparation of a dead body for burial
D) tax return preparation
E) a landscaping service that mows lawns

Question 72

Alec had his gall bladder removed,but he was unconscious during the operation.In fact,even though he has an incision,he really has no way of knowing if the service was actually performed even after it was allegedly performed.That is because medical services such as this exhibit _____ qualities.

A) credence
B) perishable
C) experience
D) search
E) Homogeneity

Question 73

David and Kathy are trying to decide where to go on vacation.David has suggested a cruise.Since neither of them have been on a cruise before,they will be unable to assess the _____ of a cruise until they actually take the vacation.

A) tangible attribute
B) experience quality
C) creative quality
D) credence quality
E) heterogeneity feature

Question 74

"Girls Just Wanna Have Funds" is a Washington,D.C.support group that consist of mostly young women that offers tips on budgeting and debt relief.As they state on their Web site,their goal is to help women break financial ceilings "one stiletto at a time." Girls Just Wanna Have Funds is providing a _____ that is helpful to women that want to be financially savvy.

A) synergy
B) tangible resource
C) tangible product
D) service
E) good

Question 75

Alice is a very busy person and she hates to spend her time with yard work.She really likes the idea of a synthetic lawn.However,she has never pursued the idea as she has two dogs in her back yard.June does not know that several manufactures make synthetic grass that with an antibacterial agent to minimize odors for pet owners.For Alice,the dog friendly synthetic lawns are a(n)_____ product because she doesn't know the product exists.

A) heterogeneous shopping
B) specialty
C) unsought
D) convenience
E) exclusive

Question 76

Management-labor mediation,child care,and college preparation classes are all services that are produced and consumed at the same time.All of these services exhibit the service characteristic of:

A) inseparability
B) intangibility
C) heterogeneity
D) perishability
E) variability

Question 77

A(n)_____ is a characteristic that can be easily assessed prior to purchase,such as the softness of a mattress or the color of curtains.

A) search quality
B) intangible attribute
C) experience quality
D) credence quality
E) heterogeneity feature

Question 78

All of the following are unique characteristics that distinguish services from goods EXCEPT:

A) intangible
B) inseparable
C) searchable
D) heterogeneous
E) perishable

Question 79

The service sector:

A) has remained steady at 44 million jobs in the United States for the last 20 years
B) employs roughly 81 percent of the U.S.workforce
C) is rarely capital intensive,as most services do not need high technology
D) is decreasing in importance in the United States
E) tends to create fewer new jobs than the manufacturing industry

Question 80

_____ products are products that are not known about or not actively searched for by consumers.These products require aggressive personal selling and highly persuasive advertising.

A) Hidden
B) Specialty
C) Equity
D) Unsought
E) Shopping