Question 1

Which business product would be classified as an installation?
A) paper clips
B) office filing cabinets
C) liquid inkjet printers
D) underground mining loaders

Accepted Answer

Installations are major capital investments and often involve complex machinery or equipment that is integral to the operations of a business. Underground mining loaders fall into this category as they are significant investments used in the mining industry for moving material. Paper clips, office filing cabinets, and liquid inkjet printers, while important, do not represent the same level of investment or complexity and are typically classified under supplies, office equipment, and accessories respectively.

Question 2

Which of the following correctly matches consumer factors and marketing mix factors in the consumer products classification system?
A) specialty products-personal selling is not important
B) convenience products-a consumer makes infrequent purchases of these products
C) emergency products-these are unsought products
D) shopping products-a relatively short channel of distribution is typical

Accepted Answer

Shopping products typically involve a relatively short channel of distribution as consumers often compare options and make more deliberate purchasing decisions, requiring more direct access to the product.

Question 3

In the business market, what is an important factor for a purchasing firm who is buying installations?
A) the lowest price
B) general usefulness instead of having a specific purpose
C) speed of installation without extensive negotiations
D) efficiency and performance over their useful life

Accepted Answer

Efficiency and performance over their useful life are crucial for purchasing firms when buying installations because these factors directly impact the long-term value and operational cost-effectiveness of the investment.

Question 4

Which of the following is NOT a raw material?
A) coal
B) copper
C) iron ore
D) steel

Accepted Answer

Steel is not a raw material; it is an alloy made by combining iron and other elements, making it a processed product rather than a raw material. Coal, copper, and iron ore are all examples of raw materials extracted from the earth and used in their natural form or after minimal processing.

Question 5

Using the consumer products classification system, which statement best describes the marketing mix factors for a specialty product?
A) It generally has low price.
B) The seller's image is unimportant.
C) Its number of sales outlets tends to be very high.
D) It relies on personal selling by producers.

Accepted Answer

Specialty products often involve more personalized selling efforts by producers due to their unique characteristics and higher value, distinguishing them from other types of consumer products that might rely more on widespread distribution or advertising.

Question 6

Some wholesalers are called "industrial distributors." What are these wholesalers a major vendor of?
A) standardized products of uniform quality that are made on a contractual basis
B) MRO items
C) installations for the industrial market
D) accessory equipment for the business market

Accepted Answer

The answer of Some wholesalers are called "industrial distributors." What...

Question 7

What are products that are considered capital investments but whose useful lives are generally much shorter than those of installations known as?
A) accessory equipment
B) operating supplies
C) component parts
D) business services

Accepted Answer

Accessory equipment refers to items that, while necessary for production or operations, have a shorter useful life compared to major installations or machinery. These can include tools, office equipment, and computers, which are capital investments but are not as durable or long-lasting as primary facilities or heavy machinery.

Question 8

In the context of the business products, what are capital items that typically cost less and last for shorter periods than installations are called?
A) shopping products
B) accessory equipment
C) supplies
D) impulse products

Accepted Answer

Accessory equipment refers to capital items that are less expensive and have a shorter lifespan than major installations. These items are essential for the operation of a business but do not constitute the main production equipment. Examples include office furniture, laptops, and small machinery.

Question 9

Which business product is most similar to consumer specialty products?
A) installations
B) accessory equipment parts
C) raw materials
D) component parts and materials

Accepted Answer

Installations, like consumer specialty products, are significant purchases often involving considerable buyer effort and comparison. Both are high-value items that customers buy less frequently, seeking specific features or brands.

Question 10

What is the basic characteristic of accessory equipment in the business market?
A) It is purchased by groups involving a large number of decision makers.
B) It is not considered a capital item.
C) It is a capital item with a shorter useful life than an installation.
D) It is a convenience product of the industrial market.

Accepted Answer

Accessory equipment is considered a capital item but typically has a shorter useful life compared to installations, which are more permanent and expensive.

Question 11

Which business product would be classified as an installation?
A) jet engine
B) office furniture
C) copy paper
D) regional shopping centre

Accepted Answer

A regional shopping centre is a large, permanent structure that is built to house multiple businesses. It is an installation because it is a fixed asset that is not easily moved.

Question 12

What are purchases included with a car, such as spark plugs, batteries, and tires, examples of?
A) installations
B) accessory equipment
C) component parts and materials
D) supplies

Accepted Answer

These items are considered component parts and materials because they are integral to the functioning of the car and are used up or incorporated into the final product.

Question 13

Which of the following would NOT ordinarily be included as a business product?
A) installations
B) accessory equipment
C) specialty products
D) component parts

Accepted Answer

Specialty products are typically consumer goods that are unique or high-value and are purchased less frequently, often with a significant amount of buyer effort and comparison. Business products, on the other hand, are used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers. Installations, accessory equipment, and component parts are all examples of business products.

Question 14

Why do raw materials resemble component parts and materials?
A) They are considered capital investments to be held for several years.
B) They are part of the buyers' final products.
C) They are finished products before they enter into the production of other products.
D) They are expended without finding their way into finished goods.

Accepted Answer

Raw materials resemble component parts and materials because they are part of the buyers' final products, meaning they are incorporated into the final goods produced by the buyer.

Question 15

Which of the following can be classified as accessory equipment?
A) natural gas pipelines
B) bottling units
C) desktop computers
D) printer cartridges

Accepted Answer

The answer of Which of the following can be classified...

Question 16

In the business market, what are sound systems, batteries, and tires that are included in the manufacturing of a car are examples of?
A) installations
B) accessory equipment
C) component parts and materials
D) supplies

Accepted Answer

These items are considered component parts and materials because they are integral parts that are assembled into the final product, in this case, a car. They are not standalone products but components that are necessary for the car's construction and operation.

Question 17

Sandra is working on a purchase decision for her company. The product under consideration is expensive, has a short distribution channel, and isn't purchased frequently. In addition, Sandra is working closely with a seller's marketing representative. Which type of product is Sandra's company considering purchasing?
A) accessory equipment
B) an installation
C) component parts and materials
D) supplies

Accepted Answer

The product described is an installation, which is typically expensive, purchased infrequently, has a short distribution channel, and often involves direct interaction with the seller's marketing representatives to tailor the product to the buyer's needs.

Question 18

Ryan, a successful entrepreneur, is planning to get into the petroleum business. He has bought two jack-up rigs running into millions of dollars to start the business. What type of product are these rigs examples of?
A) installations
B) accessory equipment
C) supplies
D) component parts

Accepted Answer

Jack-up rigs are large, expensive, and durable pieces of equipment used in the exploration and production of petroleum. They are considered installations because they are significant capital investments that are typically installed and used for a long period in operations.

Question 19

Using the consumer products classification system, which statement best describes the consumer factors for specialty products?
A) Consumers tend to purchase specialty products frequently.
B) Consumers always compare price and quality between competing products.
C) Consumers tend to regard convenience of location as very important.
D) Consumers tend to plan extensively before buying them.

Accepted Answer

Specialty products are those for which consumers have a strong preference and are willing to expend considerable effort to search for and purchase. They often involve extensive planning and research before the purchase is made, unlike convenience or shopping products where location and price comparisons are more critical.

Question 20

What are industrial distributors most often found selling?
A) accessory equipment
B) business services
C) raw materials
D) installations

Accepted Answer

Industrial distributors are most often found selling accessory equipment, which includes tools, office equipment, and other items that support the production process but are not part of the final product.

Quiz 10: Product and Service Strategies

Which business product would be classified as an installation?

Which of the following correctly matches consumer factors and marketing mix factors in the consumer products classification system?

In the business market, what is an important factor for a purchasing firm who is buying installations?

Which of the following is NOT a raw material?

Using the consumer products classification system, which statement best describes the marketing mix factors for a specialty product?

Some wholesalers are called "industrial distributors." What are these wholesalers a major vendor of?

What are products that are considered capital investments but whose useful lives are generally much shorter than those of installations known as?

In the context of the business products, what are capital items that typically cost less and last for shorter periods than installations are called?

Which business product is most similar to consumer specialty products?

What is the basic characteristic of accessory equipment in the business market?

Which business product would be classified as an installation?

What are purchases included with a car, such as spark plugs, batteries, and tires, examples of?

Which of the following would NOT ordinarily be included as a business product?

Why do raw materials resemble component parts and materials?

Which of the following can be classified as accessory equipment?

In the business market, what are sound systems, batteries, and tires that are included in the manufacturing of a car are examples of?

Ryan, a successful entrepreneur, is planning to get into the petroleum business. He has bought two jack-up rigs running into millions of dollars to start the business. What type of product are these rigs examples of?

Using the consumer products classification system, which statement best describes the consumer factors for specialty products?

What are industrial distributors most often found selling?