Question 1

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________.

Accepted Answer

The two groups of capital items are installations and equipment.

Question 2

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________.

Accepted Answer

Conformance quality refers to the degree to which a product or service meets the specified standards or expectations. In this case, if every Ford GT is able to accelerate to 50 miles per hour within 10 seconds as designed, the model is said to have high conformance quality.

Question 3

Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.

Accepted Answer

Bread and milk are not examples of impulse goods, as they are typically planned and necessary purchases for most households. Impulse goods are items that are purchased on a whim or impulse, usually without prior planning or intention. Examples of impulse goods may include candy, snacks, or small impulse buys at the checkout line.

Question 4

For ________ to be valued for products like vehicles and kitchen appliances, it should not be associated with an excessive price premium and the product must not be subject to rapid technological obsolescence.

Accepted Answer

Durability is the ability of a product to withstand wear, pressure, or damage over time. For a product like vehicles and kitchen appliances to be valued, they must be durable and not subject to rapid technological obsolescence. If a product is not durable, it will not be able to provide sustained value for the money spent on it, leading to a negative customer experience.

Question 5

Industrial goods can be classified in terms of how they enter the production process and their relative costliness. Identify the three groups of industrial goods.

Accepted Answer

The answer of Industrial goods can be classified in terms...

Question 6

To the manufacturer, a well-designed product is easy to make and distribute; to the customer, it is pleasing to look at and easy to use.

Accepted Answer

A well-designed product aims to meet both the manufacturer's needs for ease of production and distribution, and the customer's needs for aesthetic appeal and usability.

Question 7

Which of the following are tangible goods that normally survive many uses?

Accepted Answer

Durable goods are tangible goods that are expected to survive many uses. Generic goods refer to non-branded products, core benefits refer to the basic utility provided by a product or service, convenience goods refer to products that are purchased frequently and with minimal effort, and unsought goods are products that consumers do not actively seek out, such as funeral services or insurance for a young person.

Question 8

In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the "customer-value hierarchy" and identify the five levels of product contained within.

Accepted Answer

The answer of In planning its market offering, the marketer...

Question 9

Realizing that although household products is a huge category-taking up an entire supermarket aisle or more-it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________.

Accepted Answer

The passage states that Method Products is competing in the crowded market based on the superior design of their dish soap container.

Question 10

A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Accepted Answer

The definition provided fits best with the concept of a product, which can take many different forms including those listed in the question. The other answer choices do not adequately capture the breadth of offerings that can satisfy a want or need.

Question 11

Capital items are long-lasting goods that facilitate developing or managing the finished products.

Accepted Answer

Capital items are durable goods that are used to manufacture finished products or provide services. They are long-lasting and do not require frequent replacement. Examples of capital items include machinery, equipment, buildings, and vehicles.

Question 12

Firms should design the highest performance level possible for their products.

Accepted Answer

Designing the highest performance level possible may not always meet the needs or preferences of all customers and can lead to unnecessary costs, making products less competitive in terms of price and utility. It's important for firms to balance performance with customer needs and cost-effectiveness.

Question 13

Describe the six main service differentiators.

Accepted Answer

The answer of Describe the six main service differentiators....

Question 14

Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

Accepted Answer

Marketers traditionally use criteria such as durability, tangibility, and use to classify products. For example, products can be classified as durable or non-durable depending on their tendency to last over time. Tangible products are physical things that can be touched and felt, while intangible products are not. Finally, products can be classified according to their intended use, such as consumer goods for personal use, or industrial goods for use in businesses or production.

Question 15

The five product levels add more customer value, and together they constitute a(n) ________.

Accepted Answer

The five product levels (core benefit, basic product, expected product, augmented product, and potential product) are parts of the customer-value hierarchy, which is a model that represents the different levels of customer value that a product can offer. Therefore, the correct answer is D.

Question 16

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product.

Accepted Answer

The potential product refers to all the possible augmentations and transformations a product might undergo to satisfy customers and differentiate itself from competitors. This concept includes all enhancements and changes that could be made in the future to meet customer needs and preferences more effectively.

Question 17

Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

Accepted Answer

By providing extensive training and consulting services to customers, manufacturers can differentiate their products and provide added value to customers.

Question 18

Smith & Adams Poultry set up a computer system so that its customers (restaurants and hotels) can directly inform its central supply system about purchase volumes and dates, as well as automatically receive confirmation of orders and shipments. This is an example of a company differentiating its service in terms of ________.

Accepted Answer

Smith & Adams Poultry is differentiating its service in terms of ordering ease by setting up a computer system that allows customers to directly inform its central supply system about purchase volumes and dates, as well as automatically receive confirmation of orders and shipments. This makes the ordering process easier and more efficient for customers.

Question 19

You know that marketers have traditionally classified products based on characteristics of durability, tangibility, and use. You also know that each product type has an appropriate marketing-mix strategy attached. In analyzing your company's products, you decide to list each of these products and the appropriate marketing-mix strategy to understand where your products "fit." List these products and their appropriate marketing-mix strategies.

Accepted Answer

The answer of You know that marketers have traditionally classified...

Question 20

When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy?

Accepted Answer

The shopper's expectation of new shoes covering his or her feet and allowing unobstructed walking is at the level of basic product, which refers to the core benefit or service that the product offers to the customer.

Quiz 9: Setting Product Strategy and Introducing New Offerings