Question 1

Bread, gasoline, and ____ are examples of convenience products.

Accepted Answer

Convenience products are those that are purchased frequently, immediately, and with a minimum of effort, such as newspapers. Cars, large appliances, and furniture are considered shopping products as they require more time and effort to purchase. A cruise is a specialty product as it is expensive and purchased infrequently.

Question 2

Everything that one receives in an exchange, including all tangible and intangible attributes and expected benefits, is called a

Accepted Answer

A product encompasses everything one receives in an exchange, including tangible goods, services, and intangible benefits.

Question 3

For a product such as staples, which of the following determines whether it is a consumer product or a business product?

Accepted Answer

The use of the product determines whether it is a consumer product or a business product. If the product is used by individuals or households for personal consumption, then it is a consumer product. However, if it is used by businesses or organizations for their daily operations or to produce other goods and services, then it is a business product. In the case of staples, if they are purchased for personal use at home, they are a consumer product, but if they are purchased for use in an office or commercial setting, they are a business product. The other options may be factors that influence purchasing decisions but do not necessarily determine whether the product is a consumer or business product.

Question 4

Click It, Inc.
Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion.
-Refer to Click It, Inc. The multiple-unit pricing strategy suggested by Travis is a ____ strategy.

Accepted Answer

The multiple-unit pricing strategy, where a single price is set for multiple units, is considered a psychological pricing strategy because it encourages customers to buy more units at what they perceive to be a bargain, thus potentially increasing sales volume and profits.

Question 5

Consumer products can be divided into the following three categories:

Accepted Answer

The most common categorization of consumer products is into convenience, shopping, and specialty products. However, the options provided in the question do not match this exact categorization. Among the given options, the closest match is B, which categorizes products into shopping, convenience, and specialty.

Question 6

Click It, Inc.
Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion.
-Refer to Click It, Inc. As Click It managers considers the pricing issues, they should know that all of the following are major pricing objectives except

Accepted Answer

Profit minimization is not a major pricing objective for businesses. Companies typically aim to maximize profits, not minimize them. The other options listed are common objectives in pricing strategies.

Question 7

If, in the midst of daily operating activities, Jane Smith finds that the office has run out of paper for the copy machine, she quickly purchases more at the local office supply store. In this case, she is a

Accepted Answer

Jane Smith is acting as a business customer because she is purchasing paper for the office's operational needs, which is a business-related activity.

Question 8

Chris and Kimberly White decided to buy new furniture for their bedroom. They spent considerable time shopping around, comparing prices and styles. Bedroom furniture is best classified as a ____ product.

Accepted Answer

The fact that the Whites spent considerable time shopping around, comparing prices and styles indicates that bedroom furniture is a shopping product, which requires more effort and comparison before making a purchase decision than convenience products. Business products are purchased for use in a business or organization, specialty products are unique and have a limited market, and major equipment refers to large and expensive items such as machinery or vehicles.

Question 9

Energizer batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more than one battery at a time. Energizer batteries would be classified as a ____ product.

Accepted Answer

The fact that Energizer batteries are sold in multipacks to make it more convenient for the consumer classifies them as a convenience product. Convenience products are low-priced and frequently purchased products that consumers buy with little conscious planning.

Question 10

Consumers would most likely treat personal computers as ____ products.

Accepted Answer

Personal computers are typically considered shopping products because consumers spend time comparing different brands, models, and prices before making a purchase. They are not bought as frequently as convenience products, and they require more thought and effort to choose than specialty or luxury items, which are sought after for their unique characteristics or brand prestige. Unlike business products, which are purchased for operational needs in a business context, personal computers can be bought by individuals for personal or home use based on specific preferences and comparisons.

Question 11

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc. If Eric wanted to teach his employees about the stages of a product's life-cycle, he should talk about all of the following except

Accepted Answer

The question asks which stage of a product's life cycle Eric should not talk about, and the only option not mentioned in the passage is expansion. Therefore, the correct answer is A.

Question 12

Click It, Inc.
Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion.
-Refer to Click It, Inc. When Click It displays information on a product or its package, this refers to

Accepted Answer

The display of information on a product or package is typically referred to as labeling.

Question 13

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc. The sewing machines are considered ____ for Your Way.

Accepted Answer

The sewing machines are considered major equipment for Your Way, Inc. because they are essential for the production of the company's products, which in this case are men's clothing and accessories. Major equipment refers to large tools or machinery used in the production process, which is exactly the role sewing machines play in a clothing manufacturing facility.

Question 14

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc. Which of the following descriptions should Eric use to best explain the difference between the product line and product mix?

Accepted Answer

Product line refers to a group of similar products that differ in relatively minor characteristics, whereas product mix refers to all the products a firm offers for sale. Therefore, option A correctly explains the difference between the two terms.

Question 15

A good or service that is intended primarily for personal or household use is called a(n) ____ product.

Accepted Answer

Consumer products are intended for personal or household use by individuals, as opposed to business products that are intended for use by other businesses. Convenience, specialty, and organizational products are all subcategories of consumer products.

Question 16

Click It, Inc.
Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion.
-Refer to Click It, Inc. When Travis thinks of products and brands adding value to the company that sells them, which concept is he referring to?

Accepted Answer

Travis is referring to brand equity, which is the value that a brand adds to a product or company beyond the physical attributes of the product itself. Travis believes that changes to the product could increase its value and appeal to customers, which would ultimately add to Click It's brand equity.

Question 17

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc. If Eric wanted to develop a new product, he would begin with

Accepted Answer

Developing a new product begins with idea generation, which involves generating a large number of ideas from various sources. Once Eric has generated a sufficient number of ideas, he can move on to the screening, product analysis, marketing analysis, and concept testing stages.

Question 18

Consumers would most likely treat candy bars as ____ products.

Accepted Answer

Candy bars are commonly bought on-the-go and are often impulse purchases, making them a convenience product.

Question 19

A good or service intended primarily for use in producing other goods or services is a ____ product.

Accepted Answer

The answer of A good or service intended primarily for...

Question 20

Click It, Inc.
Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its products are created for different retail stores and carry the store brand. Travis thought that several changes needed to be made to a particular product, but Click It management reminded him that the stores, not Click It, owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis's concerns about the company's pricing. He suggested using a different pricing strategy. More specifically, he felt that the company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider Travis's suggestion.
-Refer to Click It, Inc. Because Click It sells its products under different brand names, each product is a

Accepted Answer

Click It sells its products under different retail store brands, which makes them private brands. Private brands are created and sold exclusively for a specific retailer and are not available for other markets.

Quiz 13: A: Creating and Pricing Products That Satisfy Customers