Question 1

Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since all the appointments were missed, he did not make any money for those four days, even though his normal expenses remained. Which of the following characteristics of services is affecting Dr. Townes' business?
A) Indivisibility
B) Inseparability
C) Profitability
D) Heterogeneity
E) Perishability

Accepted Answer

A service is perishable in that once created it cannot be stored but must be consumed simultaneously with its creation.

Question 2

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?
A) Media and entertainment.
B) International tourism.
C) Healthcare.
D) Research and development.
E) Education services.

Accepted Answer

International tourism is by far the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted.

Question 3

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.

Accepted Answer

Insurance, dry cleaning, hotel accommodations, and airline passenger or freight service, are intangible and have intrinsic value resulting from a process, a performance, or an occurrence that exists only while it is being created.

Question 4

The success achieved by firms when they take their inventions to market is referred to as _____.
A) conversion-ability
B) product penetration
C) diffusion
D) marketization
E) mass customization

Accepted Answer

Conversion-ability is the success firms have when they take inventions to market. Three main factors seem to favor conversion: patience, focus on a few important innovations, and experience.

Question 5

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 criterion.
D) Multitude of competing products.
E) Market analyst's intelligence quotient.

Accepted Answer

A market analyst's self-reference criterion (SRC) may cause a perceptual bias when interpreting the characteristics of a product. Thus, instead of evaluating product characteristics from the foreign user's frame of reference, the marketer might analyze them from his or her frame of reference, leading to a misinterpretation of the product's cultural importance.

Question 6

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

Accepted Answer

The core component consists of the physical product-the platform that contains the essential technology-and all its design and functional features. It is on the product platform that product variations can be added or deleted to satisfy local differences.

Question 7

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

Accepted Answer

A service is heterogeneous in that it is individually produced and is thus unique.

Question 8

A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?
A) Support services component.
B) Design component.
C) Core component.
D) Packaging component.
E) Functional component.

Accepted Answer

The support services component includes repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts. The literacy rates and educational levels of a country may require a firm to change a product's instructions.

Question 9

In general, the rate of diffusion can be postulated as negatively related to _____.
A) relative advantage
B) compatibility
C) trialability
D) complexity
E) observability

Accepted Answer

In general, the rate of diffusion can be postulated as positively related to relative advantage, compatibility, trialability, and observability but negatively related to complexity.

Question 10

Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as ______.
A) intangibility
B) inseparability
C) profitability
D) heterogeneity
E) perishability

Accepted Answer

A service is heterogeneous in that it is individually produced and is thus unique.

Question 11

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.

Accepted Answer

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

Question 12

Bagel's foods had to change the labeling on their products to meet the specifications regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is in focus in the above scenario is the _____.
A) support services component
B) packaging component
C) functional component
D) design component
E) core component

Accepted Answer

The packaging component includes style features, packaging, labeling, trademarks, brand name, quality, price, and all other aspects of a product's package. Labeling laws vary from country to country and do not seem to follow any predictable pattern.

Question 13

A characteristic of a service is that it is _____, since it cannot be stored and must be consumed simultaneously with its creation.
A) definite
B) separable
C) heterogeneous
D) tangible
E) perishable

Accepted Answer

Services are perishable in that once created it cannot be stored but must be consumed simultaneously with its creation.

Question 14

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, 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.

Accepted Answer

The core component consists of the physical product-the platform that contains the essential technology-and all its design and functional features. It is on the product platform that product variations can be added or deleted to satisfy local differences.

Question 15

The product platform, design features, and functional features are all found in the _____ component of the product, according to the product component model.
A) core
B) support
C) packaging
D) functional
E) global

Accepted Answer

The core component consists of the physical product-the platform that contains the essential technology-and all its design and functional features. It is on the product platform that product variations can be added or deleted to satisfy local differences. Refer to Exhibit 13.2-Product Component Model.

Question 16

Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.
A) packaging component
B) functional component
C) core component
D) technical component
E) support services component

Accepted Answer

The core component consists of the physical product-the platform that contains the essential technology-and all its design and functional features. It is on the product platform that product variations can be added or deleted to satisfy local differences.

Question 17

If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the _____ component of the product, according to the product component model.
A) core
B) support
C) design
D) maintenance
E) packaging

Accepted Answer

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

Question 18

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the _____ component of the product.
A) core
B) support services
C) packaging
D) functional
E) global

Accepted Answer

The support services component includes repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts.

Question 19

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 the management need to make improvements if problems such as the one above are to be solved?
A) Core component.
B) Functional component.
C) Packaging component.
D) Support services component.
E) Design component.

Accepted Answer

The support services component includes repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts. Refer to Exhibit 13.2-Product Component Model.

Question 20

The washing machines marketed by Taichi failed in Asian markets as those countries lacked the skills necessary to repair and maintain their products. Also, the washing machines spares available in local markets were not compatible with these machines. This product failure was a result of lack of attention by the company to the _____ component of the product.
A) core
B) design
C) packaging
D) support services
E) global

Accepted Answer

The support services component includes repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts.

Quiz 13: Products and Services for Consumers

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

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?

The success achieved by firms when they take their inventions to market is referred to as _____.

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

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 in consideration.

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

A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?

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

Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as ______.

A characteristic of a service is that it is _____, since it cannot be stored and must be consumed simultaneously with its creation.

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, in which of the following component categories would Simone's talents most likely be used?

The product platform, design features, and functional features are all found in the _____ component of the product, according to the product component model.

If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the _____ component of the product, according to the product component model.

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the _____ component of the product.