Deck 13: Products and Services for Consumers

Question 1

If a new product has the trait of relative advantage, it has guaranteed success in the marketplace.

Answer 1

False
Explanation: Analyzing the five characteristics of an innovation can assist in determining the rate of acceptance or resistance of the market to a product. A product's (1) relative advantage (the perceived marginal value of the new product relative to the old), (2) compatibility (its compatibility with acceptable behavior, norms, values, and so forth), (3) complexity (the degree of complexity associated with product use), (4) trialability (the degree of economic and/or social risk associated with product use), and (5) observability (the ease with which the product benefits can be communicated) affect the degree of its acceptance or resistance.

Question 2

From a sociological viewpoint, any idea perceived as new by a group of people is an innovation.

Answer 2

True
Explanation: From a sociological viewpoint, any idea perceived as new by a group of people is an innovation.

Question 3

If you were looking for information and strategies on a product's brand name, you would find it under the packaging component of the product component model.

Answer 3

True
Explanation: The packaging component includes style features, packaging, labeling, trademarks, brand name, quality, price, and all other aspects of a product's package.

Question 4

Though quality is always important in the consumer's mind, they, in general, do not expect it to be a given.

Question 5

The method used to communicate the idea is one of the three variables which affect the rate of diffusion of a product.

Question 6

Most of the new ideas associated with the Internet are being produced in Europe because of the number of Internet users on the continent.

Question 7

The newness of a product or brand introduced can be an important competitive advantage.

Question 8

The element of time is what differentiates diffusion (i.e., diffusion of innovations) from other types of communication research.

Question 9

Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U.S. dollars as the standard for international exchange.

Question 10

Even though most companies claim high performance quality when a product leaves the factory, the factory is still the place where most products are damaged in global marketing.

Question 11

The packaging component of the product component model contains the physical product and all its design and functional features.

Question 12

One of the three variables, which affect the rate of diffusion of a product, is the product's degree of perceived newness.

Question 13

In many countries the term product homologation is used to describe the changes mandated by local product and service standards.

Question 14

One of the core components in the product component model is the product platform.

Question 15

An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market.

Question 16

The European Commission (EC) mandate requires a product to be evaluated from manufacturing to disposal.

Question 17

Strictly speaking from a marketing point of view as well as from a definitional view, a product is a physical item.

Question 18

A well-known baby-food producer that introduced small jars of baby food in Africa complete with labels featuring a picture of a baby experienced the classic example of misinterpreted symbols--consumers thought it was ground-up babies in a jar. This would be an example of a problem with the packaging component in the product component model.

Question 19

Quality can be defined on two dimensions: market-perceived quality and performance quality.

Question 20

The perceived attributes of the innovation is a variable which affect the rate of diffusion of a product.

Question 21

Apart from market-perceived quality and performance quality, which is other form of quality testing is popular?

A) Quality perceived by internal panels
B) Quality measured by objective third parties
C) Quality assurance from internal vendors
D) Quality measured by NGO activist groups
E) Quality certified by quality circles

Question 22

Which of the following has been at the forefront of the "green movement?"

A) The United States
B) Japan
C) Europe
D) OPEC countries
E) NAFTA countries

Question 23

Which of the following countries or organizations requires that packaging material through all levels of distribution, from manufacturer to consumer, be recycled or reused?

A) The United States
B) The European Commission (EC)
C) NAFTA
D) Australia/New Zealand
E) WTO

Question 24

_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.

A) Green marketing
B) Hybrid business
C) Greenfield business
D) Greenhouse business
E) Alternative marketing

Question 25

Which are the two dimensions of quality?

A) Product quality and process quality
B) Market-perceived quality and performance quality
C) Product quality and service quality
D) Actual quality and assumed quality
E) Absolute quality and relative quality

Question 26

One of the consistencies that marketers can look forward to when marketing products abroad is that (in general) almost all labeling laws worldwide are essentially the same.

Question 27

McDonald's has just required that all of its paper packages that are used to contain its food products be biodegradable, contain no harmful inks, and be recyclable whenever possible. This would be an example of which of the following marketing strategies?

A) Envo-marketing
B) Planet marketing
C) Socialist marketing
D) Green marketing
E) Political marketing

Question 28

As part of the "green marketing" movement, the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and ____.

A) variations in standards across different member countries
B) consumer demand for environmentally friendly products
C) government subsidies for greener technologies
D) availability of alternative energy resources for production
E) management of existing inventory of conventional energy products

Question 29

Literacy rates and educational levels in our increasingly technological world have reached a point where manufacturers of international products can generally put out standardized product instructions.

Question 30

More and more companies are offering a mix of products and services to their customers. This leads to a blurring of the distinction between products and services leading to new terms like:

A) market applications.
B) market solutions.
C) product portfolio.
D) market offerings.
E) product basket.

Question 31

Brand image is at the very core of business identity and strategy.

Question 32

The support services component of the product component model contains such items as repair and maintenance and warranties.

Question 33

Which of the following represents the shift of power in the marketplace?

A) From a producers' to a sellers' market
B) From a sellers' to a customers' market
C) From a buyers' to a users' market
D) From a producers' to a outsourcers' market
E) From a producers' market to a third-party vendors' market

Question 34

Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this Vital has achieved product ____.

A) homologation
B) standardization
C) dilution
D) flexibility
E) repositioning

Question 35

Consumer services are distinguished by four unique characteristics--intangibility, inseparability, homogeneity, and longevity.

Question 36

Increasingly complementary products must be considered in the marketing of a variety of high-tech products.

Question 37

Global competition is placing new emphasis on some basic tenets of business. All of the following represent the major trends EXCEPT:

A) longer product life cycles.
B) importance of quality.
C) competitive prices.
D) innovative products.
E) shift of power from sellers' to customers' market.

Question 38

The vast majority of services enter foreign markets by licensing, franchising, or direct investment.

Question 39

In many countries, the term used to describe the changes mandated by local product and service standards is product ____.

A) localization
B) blending
C) standardization
D) dilution
E) homologation

Question 40

According to the text it has been reported that consumers in "Eastern" cultures are more likely to understand and appreciate brand extensions because of their more holistic thinking than consumers in "Western" cultures with their more analytical thinking patterns.

Question 41

An important first step in adapting a product to a foreign market is to determine:

A) the degree of newness as perceived by the intended market.
B) the cost of the adapted product in the foreign market.
C) the advertising parallels with the domestic market.
D) the ability of a sales force to sell the product.
E) the match to religious doctrine(s) in the foreign country.

Question 42

Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object?

A) The use of the Internet in the diffusion process
B) The age appearance of the innovation
C) The number of marketing personnel dedicated to diffusion
D) The method used to communicate the idea
E) The shelf live of the diffusion object

Question 43

Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model shown in the text, in which of the following component categories would Simone's talents most likely be used?

A) Core component
B) Support services component
C) Packaging component
D) Functional component
E) Global component

Question 44

Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 45

The product platform, design features, and functional features are all found in which of the following components of the product component model used in the text?

A) Core component
B) Support services component
C) Packaging component
D) Functional component
E) Global component

Question 46

Installation, repair and maintenance, deliveries, and warranties are all found in which of the following components of the product component model used in the text?

A) Core component
B) Support services component
C) Packaging component
D) Functional component
E) Global component

Question 47

Everett Rogers notes that crucial elements in the diffusion of new ideas are all of the following EXCEPT:

A) innovation.
B) communication channels.
C) time.
D) members of a social system.
E) government support.

Question 48

All of the following illustrate how products (product concepts) have been rejected by cultures because they did not meet the norms, values, or behavior patterns of the culture EXCEPT:

A) many financial services in Muslim countries.
B) body jewelry in Japan.
C) pork and pork products in Scotland.
D) filter cigarettes in Asia.
E) whiskey and beer in Ireland.

Question 49

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience?

A) Relative advantage
B) Compatibility
C) Complexity
D) Trialability
E) Observability

Question 50

In general, the rate of diffusion can be postulated as negatively related to ____.

A) relative advantage
B) compatibility
C) trialability
D) complexity
E) observability

Question 51

From a sociological viewpoint, any idea perceived as new by a group of people is a(n) ____.

A) creation
B) adaptation
C) ideation
D) homologation
E) innovation

Question 52

Innovative product ideas reach markets with varying rates of diffusion based on the time variable. All of the following are actual examples of this phenomenon EXCEPT:

A) microwave ovens took 20 years to catch on in the United States.
B) the contraceptive pill took only a few years to be accepted in the United States.
C) modern math took only about five years to be diffused through the U.S. school systems.
D) the idea of kindergartens took nearly 50 years to gain total acceptance in the United States.
E) color televisions were available in 1949 but not widely accepted in the market until 1985.

Question 53

Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of economic and/or social risk, or _____ associated with product use.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 54

According to Everett Rogers, the goal of the diffusion researcher and the marketer are to shorten the time lag between:

A) the time that a product is made and the time that retailers place the product in inventory.
B) the time that a budget is constructed and the time needed funds reach communication channels.
C) the time that an investment is made and the time that a profit is turned.
D) introduction of an idea or product and its widespread adoption.
E) introduction of an idea or product and when revisions can be made.

Question 55

The success of a firm taking inventions to market is referred to as ____.

A) conversion ability
B) product penetration
C) diffusion
D) marketization
E) mass customization

Question 56

Carolyn is interested in marketing her company's diet products in Asia. She is studying what acceptable behavior, norms, and values in Asian markets. Carolyn is studying ____.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 57

According to Everett Rogers, which is the element that differentiates diffusion from other types of communications research?

A) Breakthrough innovation
B) Communications channels
C) Time
D) Social system
E) Government support

Question 58

_____ is the process by which innovation spreads.

A) Diffusion
B) Filtering
C) Dissolution
D) Trickle-down
E) Cascading

Question 59

Which of the following is not one of the Everett Rogers crucial elements in the diffusion of new ideas?

A) An innovation
B) Communication through certain channels
C) New ideas are communicated over time
D) New ideas are sent to members of a social system
E) New ideas are automatically placed in an incubation zone

Question 60

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

A) Poor product knowledge
B) Noise in the communication channel
C) Market analyst's self-reference criteria
D) Multitude of competing products
E) Market analyst's intelligence quotient

Question 61

Any influence that the company of manufacture, assembly, or design has on a consumer's positive or negative perception of a product is called the:

A) plus or minus effect.
B) polar effect.
C) transfer effect.
D) alteration effect.
E) country-of-origin effect.

Question 62

Services are distinguished by all of the following unique characteristics EXCEPT:

A) intangibility.
B) inseparability.
C) heterogeneity.
D) perishability.
E) repeatability.

Question 63

In Russia products are placed into two categories-"ours" and "imported." This is an example of:

A) cultural revisionism
B) ethnocentrism
C) conversion to capitalism
D) communist mentality
E) structural marketing orientation

Question 64

Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, service providers would find it to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market?

A) Protectionism
B) Controls on transborder data flows
C) Protection of intellectual property
D) Cultural requirements for adaptation
E) Language translation barriers

Question 65

Consumer services are distinguished by four unique characteristics. List and characterize each of these four unique characteristics.

Question 66

Discuss the two dimensions of quality.

Question 67

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms to meet local differences in five different foreign markets, the _____ of the product component model would be component that would be in consideration.

A) core component
B) support services component
C) packaging component
D) functional component
E) global component

Question 68

Which of the following is the largest services export of the United States?

A) Media and entertainment
B) International tourism
C) Healthcare
D) Research and development
E) Education services

Question 69

Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches to the above?

A) Intangibility
B) Inseparability
C) Profitability
D) Heterogeneity
E) Perishability

Question 70

Because a service is individually produced and is virtually unique, the service is said to have:

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

Question 71

Four kinds of barriers face consumer services marketers in the global marketplace. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the foreign market itself and not from outside sources?

A) Protectionism
B) Controls on transborder data flows
C) Protection of intellectual property
D) Cultural requirements for adaptation
E) Language translation barriers

Question 72

Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model?

A) Core component
B) Support services component
C) Packaging component
D) Functional component
E) Global component

Question 73

Describe the process called product homologation.

Question 74

How do the vast majority of services enter a foreign market?

A) Exporting
B) Importing
C) Licensing, franchising, or direct investment
D) Through brokers
E) Through agent intermediaries

Question 75

In some countries maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would management need to make improvement if problems such as the one above are going to be solved?

A) Core component
B) Support services component
C) Packaging component
D) Functional component
E) Global component

Question 76

Mark Townes is a dentist in Denver. During a four-day stretch in March, the snows in Denver were so bad that not one single patient was able to come for appointments with Dr. Townes. Since all of the appointments were missed, he made absolutely no money for the four days even though all of his normal expenses were still there. Which of the following best explains the particular difficulty Mark is facing?

A) Intangibility
B) Inseparability
C) Profitability
D) Heterogeneity
E) Perishability

Question 77

Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which of the following would not fit in the "best" stereotype scheme?

A) English tea
B) American chocolate
C) French perfume
D) Chinese silk
E) Jamaican rum

Question 78

Everett Rogers notes that four crucial elements impact the diffusion of new ideas. What are those elements?

Question 79

Draw and correctly label the product component model shown in the text.

Question 80

The worldwide use of a name, term, sign, symbol, design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors is called a/an:

A) trademark.
B) copymark.
C) global brand.
D) brand's equity position.
E) owner's mark.