Deck 8: Product Planning and Development

Question 1

According to the textbook's broad definition of a product, which of the following is an example of a product?

A) the Iowa State Fair
B) a tax referendum
C) a performance by the community symphony
D) a book by John Grisham
E) all of the above

Answer 1

all of the above

Question 2

According to the textbook's broad definition of a product, which of the following is an example of a product?

A) an ice cream cone
B) the airplane flight from Fresno, California, to Baltimore, Maryland
C) tickets to a Green Bay Packers football game
D) a mayoral candidate
E) all of the above

Answer 2

all of the above

Question 3

The basic factor separating consumer products and business products is:

A) whether the product will be used in the manufacture of another product.
B) whether the product is sold by a wholesaler or a retailer.
C) whether the product is sold in a direct or an indirect channel of distribution.
D) the ultimate use intended for the product in its present form.
E) the cost of the product.

Answer 3

the ultimate use intended for the product in its present form.

Question 4

Which of the following is an example of a consumer product?

A) a bedspread bought by the motel owner to replace one that was ruined by a motel guest
B) a case of Gatorade purchased for the school's track team to drink
C) Mrs. Wilson's purchase of a new vacuum cleaner to clean her home
D) a tape dispenser to be used to hang "sale" signs in a small grocery store
E) Lenox plates purchased to serve food on at a restaurant

Question 5

Which of the following is an example of a consumer product?

A) a video on flower arranging targeted to owners of retail florists
B) light bulbs to replace those in a Department of Transportation road sign
C) tickets for an entire fifth grade in an elementary school to attend a showing of The Nutcracker Suite
D) a mother's purchase of a case of Dannon yogurt to feed her three small children
E) a box of tongue depressors purchased for use in a physician's office

Question 6

Which of the following is an example of a business product?

A) a biography purchased by a high school teacher who wants to have something good to read on her vacation
B) a bottle of aspirin bought by a mother who is dreading the start of summer vacation
C) a case of champagne purchased by a caterer to serve at a wedding rehearsal dinner
D) a student's subscription to The Wall Street Journal
E) a dog collar bought by a veterinarian for her own dog

Question 7

Which of the following is an example of a business product?

A) a gross of linen tablecloths that a caterer buys to use at wedding receptions
B) a dozen long-stem roses bought by a husband as a birthday gift for his wife
C) a can of liquid starch bought by a man who likes to wear crisply ironed shirts
D) a teenager's purchase of a pair of designer jeans
E) paint bought by a hardware store owner to paint his own house

Question 8

Which of the following is an example of a consumer product?

A) tomato plants purchased by a farmer who will sell the vegetables to his local supermarket
B) motor oil purchased by a mechanic for an old Corvair he is fixing up for a customer
C) ribbon, lace, buttons, and fabric purchased as stock for a crafts store
D) a dentist's purchase of audio tapes to play in her office to soothe nervous patients
E) a plane ticket bought by a young executive for a vacation trip to Tokyo

Question 9

The subdivision of consumer goods into various categories is based on:

A) price.
B) types of products.
C) how the goods were manufactured.
D) consumer buying behavior.
E) how the goods will be distributed.

Question 10

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

A) radial tires
B) Shania Twain's newest CD
C) a Twix candy bar
D) a Timex watch
E) a swimsuit

Question 11

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

A) leather driving gloves
B) Microsoft Works software
C) a wallet
D) a Bic pen
E) a silk flower arrangement

Question 12

Which of the following is LEAST likely to be thought of by its buyers as a convenience good?

A) flashlight batteries
B) radial tires
C) a copy of TV Guide
D) thumb tacks
E) Tic-Tac breath mints

Question 13

Which of the following is LEAST likely to be thought of by its buyers as a convenience good?

A) National Enquirer newspaper
B) a tennis racket
C) adhesive tape
D) fingernail clippers
E) Wrigley's chewing gum

Question 14

Which of the following statements about convenience goods is True?

A) Convenience products typically have a low unit price.
B) By definition, convenience goods are purchased infrequently.
C) Convenience products typically are large and bulky.
D) Retailers do most of the promotion for convenience goods.
E) Like any other product, convenience goods are significantly affected by fad and fashion.

Question 15

Convenience goods:

A) are promoted by both the manufacturer and the retailer.
B) are typically purchased infrequently.
C) are usually sold without any packaging.
D) have a low gross margin.
E) are seldom sold in point-of-purchase displays.

Question 16

On the side of each Energizer battery is a tester that can tell the user immediately if the battery is good. In this way, the manufacturer of Energizer batteries distinguishes its batteries from others on the market. It is hoping consumers will become more brand conscious and not treat batteries as if they were:

A) convenience goods.
B) specialty goods.
C) shopping goods.
D) accessory equipment.
E) unsought goods.

Question 17

As a result of the way in which convenience products must be marketed, their manufacturers:

A) rarely advertise because of the expense involved.
B) seldom employ wholesalers in the distribution of their products.
C) find it too expensive to sell direct to consumers.
D) are interested in selling their products in a limited number of retail outlets.
E) customarily sell their products through their own retail stores.

Question 18

In comparison to shopping goods, convenience goods usually:

A) use point-of-purchase displays.
B) sell at higher unit prices.
C) have a higher gross margin.
D) are purchased less frequently.
E) have a lower stock turnover.

Question 19

The promotion of convenience goods is:

A) a marketing function shared by their manufacturers, their wholesalers, and their retailers.
B) mostly done by their manufacturers.
C) always done by their individual retailers.
D) primarily done by middlemen.
E) never done by their manufacturers.

Question 20

Shopping goods:

A) are typically purchased infrequently.
B) are only promoted by the manufacturer.
C) have a rapid stock turnover.
D) have a low gross margin.
E) require the consumer to devote very little time to shopping.

Question 21

Which of the following is the best example of a shopping good?

A) a ream of computer paper
B) a dozen organic eggs
C) a microwave oven
D) a bottle of shampoo
E) a ticket to Adam Sadler's latest movie

Question 22

Which of the following statements about shopping goods is True?

A) Individual retailers typically carry one and only one brand of a shopping good.
B) Shopping goods typically have a low unit price.
C) Consumers use comparison shopping when purchasing a shopping good.
D) Shopping goods are not greatly affected by changes in fashion and fad.
E) Manufacturers have sole promotional responsibility for shopping goods.

Question 23

Which of the following is the best example of a shopping good?

A) breath mints
B) Good Housekeeping magazine
C) a dozen thank-you cards
D) a business suit
E) paper napkins

Question 24

Which of the following is the best example of a shopping good?

A) Rolex watch
B) mattress set
C) fingernail file
D) dog food bowl
E) fan belt for car engine

Question 25

Which of the following is NOT an example of a shopping good?

A) Easter candy
B) a computer
C) a car radio/CD player
D) a man's suit
E) a television set

Question 26

Which of the following is an example of a shopping good?

A) small potted African violet plant
B) a clothes dryer
C) brownie mix
D) needle-nose pliers
E) box of business-sized envelopes

Question 27

Specialty goods:

A) have a high stock turnover.
B) have a high gross margin.
C) usually require the buyer to engage in some comparison shopping.
D) often use point-of-purchase displays.
E) require very little time be spent on planning the purchase.

Question 28

Which of the following is the best example of a specialty good?

A) an exercise bicycle
B) fat-free ice cream
C) an Armani suit
D) potatoes
E) nail clippers

Question 29

Which of the following is the best example of a specialty good?

A) a Steinway piano
B) long-stem red roses
C) a tote bag
D) light bulbs
E) a bathroom shower curtain

Question 30

Every Thursday, the Atlanta Journal-Constitution runs a section called "Buyer's Edge." Readers of the newspaper write in and ask for help finding products. Three women wrote to the paper asking for help finding a hypoallergenic moisturizing lotion called Allercreme. It seems that it was the only brand they could use without breaking out. They had looked in a number of stores and had not located it. For these women Allercreme Petal lotion is an example of a:

A) convenience good.
B) shopping good.
C) specialty good.
D) impulse good.
E) generic product.

Question 31

Consumer brand preferences are strongest for:

A) convenience goods.
B) shopping goods.
C) specialty goods.
D) impulse goods.
E) generic products.

Question 32

In the marketing of specialty goods,:

A) retailers absorb all advertising costs.
B) wholesalers are always important.
C) few retail outlets are used.
D) retailers have complete control over how the advertising for the good is handled.
E) indirect distribution channels are common.

Question 33

Which of the following products is LEAST likely to be considered an unsought product by the average consumer?

A) a subscription to the local newspaper
B) toilet paper
C) a bicycle
D) a television set
E) a loaf of bread

Question 34

Which of the following products is the BEST example of an unsought product for the average member of Generation X?

A) sheets and towels
B) burial insurance
C) a plane ticket to Orlando, Florida
D) a home equity loan
E) replacement storm windows

Question 35

Because most dog owners do not know it exists, Sun Spot, a spray that protects dogs from ultraviolet rays, is best categorized as a(n) _____ good.

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

Question 36

If people in Africa where malaria is a serious problem do not know the existence of a new anti-malarial drug, than it is a(n) _____ good.

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

Question 37

One of the problems with fluorescent tubes is that they sometimes will shatter, creating quite a mess. The shattering bulbs also pose a real danger in many situations. There is a shatterproof fluorescent tube on the market, but because most people don't know such a product is available, the shatterproof light falls into the category of _____ good.

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

Question 38

By applying knowledge of the consumer goods classifications, an astute marketer could tell you that _____ presents the biggest marketing challenge for its marketers.

A) prepaid burial insurance
B) re-releases of songs by former country music stars like Hank Williams and Patsy Cline
C) leftover Easter candy the week after Easter
D) arts and crafts supplies
E) Corvettes made before 1968

Question 39

The two main categories of raw materials are:

A) all agricultural products and minerals.
B) minerals and land.
C) animal products and minerals.
D) crops and minerals.
E) agricultural products and products found in their natural state.

Question 40

As a type of business good, raw materials:

A) have very little standardization.
B) are purchased in small quantities.
C) are typically sold directly from the producer to the business user.
D) always have very short negotiation periods.
E) must be supported with after-the-sale service.

Question 41

Which of the following is an example of a raw material for a company that produces jams and jellies?

A) vats used in manufacturing
B) pectin used for thickening the jelly
C) jars in which the jams and jellies are sold
D) refined sugar
E) fruit

Question 42

Which of the following is an example of a raw material for a bakery?

A) the pans used for baking the bread
B) the wooden boards used for kneading bread
C) the talent of the bakery chef
D) the natural honey it uses as a glaze
E) the dishwashing soap used for cleaning bread pans

Question 43

Which of the following statements about the marketing of raw materials in their natural state is True?

A) The supply of these products is limitless.
B) The supply of these products is easily replenished.
C) Many small producers are involved.
D) These products have a high unit value.
E) Standardization and grading are commonplace.

Question 44

Which of the following statements about the marketing of agricultural products as a class of raw materials is True?

A) The supply of these products is uniform.
B) The source of these products is nearly always close to its markets.
C) These products are typically perishable.
D) A few large producers are involved in their production.
E) Product differentiation is a key marketing strategy for agricultural products.

Question 45

As a type of business good, fabricating parts and materials:

A) are purchased in large quantities.
B) require very little, if any, promotion.
C) do not usually require an advance buying contract.
D) have high unit prices.
E) are not standardized.

Question 46

Which of the following is an example of a fabricating part for a manufacturer of baseball uniforms?

A) the buttons that go on the front of the shirts
B) the sewing machines used to make the uniforms
C) the labor used to manufacture the uniform
D) the cardboard boxes used to store and ship the uniforms
E) all of the above

Question 47

Which of the following is an example of a fabricating material for a manufacturer of designer sweaters?

A) buttons
B) rhinestones
C) knitting machines
D) wool yarn
E) packaging for shipping to distributors

Question 48

Which of the following examples are best classified as fabricating parts and materials?

A) flea spray, dog shampoo, and leashes used in a dog grooming business
B) tires, batteries, and blades used to manufacture lawn mowers
C) gas, oil, and antifreeze used by a taxi driver
D) seed, fertilizer, and herbicides used by a farmer
E) computer software, printers, and monitors used by a statistician

Question 49

Which of the following is an example of fabricating parts and materials used by a book publisher?

A) a copying machine
B) spellchecking software
C) desks, filing cabinets, and office chairs
D) computer
E) paper and ink for printing

Question 50

Harriet & Henderson manufactures socks. It buys yarn by the 100-pound lot. This yarn in spun into the fabric from which the company makes its socks. For Harriet & Henderson yarn is an example of a(n):

A) fabricating material.
B) operating supply.
C) installation.
D) accessory equipment.
E) fabricating part.

Question 51

Which of the following statements about the marketing of fabricating materials and parts is True?

A) Long channels of distribution are normally used.
B) Quantities purchased are typically small.
C) Buying decisions are usually made on the basis of price and the service provided by the seller.
D) Middlemen are never used.
E) Most fabricating materials and parts do not undergo any further processing.

Question 52

Which of the following statements about fabricating parts and materials is True?

A) Tires for cars and batteries for engines are examples of fabricating parts.
B) Brand is generally the most important consideration when purchasing fabricating products.
C) Most fabricating products are marketed by wholesalers.
D) Microprocessors for computers are an example of fabricating materials.
E) Fabricating parts and materials are usually purchased in large quantities.

Question 53

Artemisia is an herb that is an essential ingredient in a new drug that is extremely effective anti-malarial drug. As a type of business good, artemisia is a(n):

A) installation.
B) operating supply.
C) accessory material.
D) facilitating material.
E) shopping good.

Question 54

As a type of business good, installations:

A) have a limited supply.
B) have a low unit price.
C) are purchased frequently.
D) can be custom-made.
E) do not require postsale service.

Question 55

The characteristics of installations that differentiate them from other categories of business goods is that they:

A) do not depreciate.
B) directly affect the scale of operation for the buyer.
C) are always classified as modified rebuys.
D) are unaffected by technological obsolescence.
E) require a totally different promotional mix.

Question 56

Wholesalers are LEAST likely to be used in the marketing of:

A) operating supplies.
B) consumer goods.
C) accessory equipment.
D) installations.
E) fabricating materials.

Question 57

Which of the following is an example of an installation?

A) a dump truck
B) a movable display unit for a brand of soft drink
C) a charcoal grill
D) a farmer's silo used to store his annual wheat harvest
E) all of the above

Question 58

Which of the following is the best example of an installation?

A) a walk-in refrigerator used to keep flowers fresh
B) the wire rack displays used in the children's department of a department store
C) a parking lot for a shopping center
D) a moveable sign for in front of a convenience store
E) the popcorn machine in a theater

Question 59

As a type of business good, accessory equipment:

A) typically has a short life.
B) requires no promotion.
C) is completely standardized.
D) uses a direct channel of distribution.
E) is usually purchased in small quantities.

Question 60

Which of the following is an example of accessory equipment for a store that sells breads and pastries?

A) bread pans
B) cash register
C) ovens for baking
D) yeast, bread, and sugar
E) uniforms for employees

Question 61

Which of the following is an example of accessory equipment for a bookstore?

A) the customer parking lot
B) books for a window display
C) book shelves
D) boxes in which to return unsold books
E) a receipt book

Question 62

Which of the following is an example of accessory equipment for a taxidermy company that prepares trophy animals for display?

A) formaldehyde for preserving
B) glass eyes
C) a receipt book
D) a refrigerating unit
E) cleaning rags

Question 63

Which of the following statements about accessory equipment is True?

A) The market for accessory equipment is generally confined to medium- and large-size organizations.
B) Manufacturers of accessory equipment often use middlemen because individual orders may be relatively small.
C) Accessory equipment orders are usually large.
D) By law, all sales of accessory equipment must be made through middlemen.
E) Accessory equipment is comparable to convenience goods in the consumer market.

Question 64

As a type of business good, operating supplies:

A) are frequently purchased.
B) are usually purchased in extremely large quantities.
C) are not typically sold through advance buying contracts.
D) have long negotiation periods.
E) use a direct channel of distribution.

Question 65

Operating supplies in the business market are comparable to _____ goods in the consumer market.

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

Question 66

Which of the following is NOT an example of an operating supply for a shoe manufacturer?

A) paper towels
B) computer paper
C) shoe dye
D) air conditioner filters
E) order forms

Question 67

Which of the following is the best example of a list of operating supplies?

A) degreaser, cleaning rags, mops, and buckets for cleaning a restaurant kitchen
B) cash register, book shelves, and computer for bookstore
C) flowers, vases, scissors, tissue paper, and bows for use by a florist
D) tires, mufflers, uniforms, and tools used by a mechanic
E) fertilizer, plants, lawn mowers, and gardening hand tools used by a landscaper

Question 68

Which of the following statements about the market for operating supplies for businesses is True?

A) There is little price competition.
B) Brand preference is important.
C) Purchasers of operating supplies usually spend a considerable amount of time comparison shopping.
D) Typically, operating supplies are purchased in large quantities.
E) Producers usually make extensive use of wholesaling middlemen.

Question 69

A manufacturer that wants to sustain its revenues and profits should engage in new-product development because:

A) federal regulations require that a certain percentage of a company's products must be new.
B) products inevitably pass through a product life cycle that culminates in a sales decline.
C) new products are always the most profitable ones.
D) copyright protections last for only 5 years unless the product is somehow revitalized.
E) consumers do not like to buy products that are not innovative.

Question 70

Why do new products fail?

A) They are not given the marketing support they need by their manufacturer.
B) They are poorly positioned in the market.
C) They are not significantly different from products already on the market.
D) Consumers perceive the products as offering poor value in relation to their prices.
E) All of the above are reasons why new products fail.

Question 71

Why do new products fail?

A) They are given too much marketing support by their manufacturer.
B) They are poorly positioned in the market.
C) They are significantly different from products already on the market.
D) Consumers perceive the products as offering great value in relation to their prices.
E) All of the above are reasons why new products fail.

Question 72

Which of the following is the best example of a really innovative new product?

A) the addition of cinnamon flavoring to Pebbles cereal
B) a computerized prosthetic leg for amputees that simulates walking and allows full mobility
C) a new television comedy about a group of friends who hang around together and talk a lot about their own lives
D) a game show where someone has the opportunity to win one million dollars
E) a square container for Morton salt-replacing the old cylinder model

Question 73

The development process for a new product should be guided by:

A) brainstorming.
B) concept testing.
C) an explicit new product strategy.
D) an examination of the external microenvironment.
E) the determination of a pricing strategy.

Question 74

Assume the goal for Spalding is to maintain market share in the health fitness equipment business. Which of the following describes an appropriate new-product strategy for the company?

A) Adopt environmentally-safe packaging.
B) Raise its product prices by 10 percent.
C) Introduce portable exercise equipment that can be used anywhere and at anytime.
D) Develop a treadmill that directly competes with Nordic Track.
E) Reduce the number of products it now manufactures.

Question 75

A company should engage in a structured new-product development process in order to:

A) guarantee the success of the new product.
B) increase the likelihood of customer satisfaction with the new product.
C) develop the ideal marketing mix.
D) locate the perfect target market.
E) do all of the above.

Question 76

Which of the following is NOT one of the stages in the structured new-product development process?

A) a business analysis
B) an environmental audit
C) idea screening
D) a market test
E) prototype development

Question 77

Management is in the _____ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product.

A) business analysis
B) environmental audit
C) idea screening
D) market test
E) prototype development

Question 78

During the business analysis stage of new-product development for a new musical variety show featuring a different million-record seller solo entertainer or group each week, the production company would;

A) estimate market demand for such a television show.
B) determine which artists would be willing to participate in such a program.
C) set fees for performing artists.
D) find a venue in which to film the shows.
E) tape a sample show and get audience reaction.

Question 79

During the business analysis stage of the new-product development process, the management of a company will:

A) evaluate consumer responses to test models of the new product.
B) recommit the company to the marketing concept.
C) conduct market tests.
D) perform an environmental analysis.
E) do none of the above.

Question 80

During the prototype development stage for a new musical variety show featuring a different million-record selling solo entertainers or groups each week, the production company would;

A) estimate market demand for such a television show.
B) determine which artists would be willing to participate in such a program.
C) set fees for performing artists.
D) find a venue in which to film the shows.
E) tape a sample show to determine that all of the show's technical requirements can be met.