MKTG 351: Test 2 Review - Chapter 10

True/False: "Business Services" is not a category or type of business product.

False

True/False: A buyer becomes aware of the product during the evaluation phase of the product adoption process.

False

True/False: A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

False

True/False: A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of products.

False

True/False: A seller's profits peak in the maturity stage of a product's life cycle.

False

True/False: Accessory equipment becomes a part of the finished product.

False

True/False: Being a product pioneer guarantees a product's success.

False

True/False: Buyers want to exert only minimal effort to obtain shopping products.

False

True/False: Component parts usually need to be processed significantly before they are used in production.

False

True/False: Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.

False

True/False: Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of aggressive competition.

False

True/False: During a product's maturity stage, all sales promotion efforts are focused on consumers.

False

True/False: During the growth stage, promotion costs rise as a percentage of total sales.

False

True/False: Early adopters are the first group of consumers to adopt a new product.

False

True/False: Failure of a new product is always absolute.

False

True/False: Following a consistent customer-focused plan does not help new products become successful.

False

True/False: In the awareness stage of the product adoption process, the buyer seeks information about the product.

False

True/False: Intensive competition causes price increases during the growth stage of the product life

False

True/False: Obtaining a specialty product involves a considerable amount of comparison activity.

False

True/False: Per-unit gross margins on convenience products are relatively high.

False

True/False: Product mix refers to a related group of products in the product line.

False

True/False: The core product element of the total product can include installation, delivery, training, and financing.

False

True/False: The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.

False

True/False: The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.

False

True/False: The original marketing strategy should not be altered in any way as a product travels through the stages of the product life cycle because consumers can become confused.

False

True/False: The success of launching a new product is based primarily on luck.

False

True/False: The two major product categories are business and institutional.

False

True/False: The width of a product mix refers to the number of generic products offered by a company.

False

True/False: Trial is the first stage of the product adoption process.

False

True/False: Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.

False

True/False: Use of the product is the most important means of distinguishing consumer products from business products.

False

True/False: When a successful brand such as Frito-Lay develops a new product, it will always succeed.

False

Which of the following is most likely to be considered a convenience good?

Gatorade

True/False: Profits decline in the maturity stage, largely because of increased competition.

True

True/False: Promotion decreases in importance during a product's decline stage.

True

True/False: Sales peak in a product's maturity stage.

True

True/False: Sellers can sometimes prolong a product's life cycle.

True

True/False: Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product.

True

True/False: Sometimes new marketing channels open up in the decline stage.

True

True/False: Strategies relating to price become more mixed during a product's maturity stage.

True

True/False: Supporting services, such as installation and guarantees, are part of a product.

True

True/False: The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product.

True

True/False: The buyer's intent can determine whether an item is classified as a consumer or a business product.

True

True/False: The depth of a product mix is measured by the average number of product types in a product line.

True

True/False: The first adopters of a product are the innovators.

True

True/False: When an organization introduces a new product, people do not all begin the adoption process at the same time, nor do they move through the process at the same speed.

True

What measure of the product mix involves the number of product lines a company offers?

Width

Nick Arnold's Auto Towing Service would best be described as a(n) __________ product.

unsought

When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely going to view solutions to that problem as

unsought products.

To make intangible products more tangible or real to the consumer, marketers often

use symbols or cues to help symbolize product benefits.

True/False: "The people to check with" are the early adopters.

True

True/False: A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product mix.

True

True/False: A product mix is the composite or total group of products that an organization makes available to customers.

True

True/False: A product need not be a physical product.

True

True/False: A product's classification can influence its price, distribution, and promotion.

True

True/False: A service is intangible and is the result of the application of human or mechanical efforts to people or objects.

True

True/False: Advertising used in the decline stage may prolong the life of the product.

True

True/False: Bread is usually a convenience product.

True

True/False: Changing the product's quality is a distinct alternative in the maturity stage of the product life cycle.

True

True/False: Communicating product benefits to consumers is very important in the introduction stage.

True

True/False: If a company repositions a relative product failure, that product might become a successful member of the product line.

True

True/False: Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain market share.

True

True/False: Laggards are the last to adopt a new product and usually distrust new products.

True

True/False: Many products are in the maturity stage of the product life cycle.

True

True/False: Many products never get beyond the introduction stage.

True

True/False: New products seldom generate enough sales to bring immediate profits.

True

True/False: One of the most common reasons new products fail is because of a company's failure to match product offerings to customer needs.

True

True/False: Price cuts are typical in a product's growth stage.

True

True/False: Process materials are used directly in the production of products.

True

True/False: Procter & Gamble has a wider product mix than does Baskin Robbins.

True

Which of the following is always used to determine the classification of a good?

Buyer's intent for using the product

A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product?

Accessory equipment

What are a marketing manager's two options during the decline stage?

Attempt to postpone the decline or accept its inevitability

An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person?

Awareness

As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory for cars was available. Based on this information, she is now in what stage of the product adoption process for this item?

Awareness

An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product?

Business

Megan Avakian, who works as a purchasing agent for Greyhound Transport, buys carpeting for use in an office area at Greyhound. What determines whether this carpeting is a consumer or a business product?

Buyer's intended use of the product

Which of the following is not a business product?

Calculators bought to help individuals complete their personal federal income tax forms

Which of the following statements does not apply to convenience goods?

Consumers are brand loyal to convenience products and are not likely to substitute other brands.

Dannon Yogurt represents what type of product for most consumers?

Convenience

Energizer batteries would be classified as which type of product?

Convenience

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. Shaving razors fall into which of the following classification of consumer products?

Convenience products

When are marketers least likely to change a product's design, style, or other attributes?

Decline

When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is this individual?

Evaluation

Which of the following is not a stage in the buyer's product adoption process?

Exploration

An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle?

Growth

In which stage of the product life cycle do profits begin to decrease?

Growth

In which stage of the product life cycle do profits peak?

Growth

Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy?

Growth

Which stage of the product life cycle begins when a business reaches the breakeven point with the product?

Growth

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product?

Installations

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. When Gillette developed the Venus razor in 1998, in which stage of the product life cycle was the Venus?

Introduction

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that there are more departure times and more stops in smaller towns along the way. Megabus is most likely in which of the following stages of the product life cycle?

Introduction

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?

Lowering prices after developmental costs have been recovered

Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer?

Maturity

Which stage of the product life cycle is characterized by intense competition?

Maturity

Which of the following is the most typical example of a new product introduction?

Pringles sold in snack-sized containers

Gap clothing stores sell primarily what type of products?

Shopping

Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product?

Shopping

Which of the following best defines the interest stage in the product adoption process?

The buyer seeks information and is receptive to learning about the product.

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that there are more departure times and more stops in smaller towns along the way. What product(s) is Megabus marketing?

The ride between the cities, which is the core product, plus the supplemental features of Wi-Fi, video screens, and other technology.

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?

Traveler's Insurance umbrella

When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to stimulate which stage of the product adoption process?

Trial

A light bulb can be considered all of the following except

a consumer product if it is used to light the office of the board of directors.

A product line is defined as

a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.

The difference between absolute and relative product failure is

absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later.

Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called

accessory equipment.

A company wanting to maintain market share during the maturity stage requires moderate to large

advertising expenditures.

A product mix is best described as

all products offered by a firm.

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that there are more departure times and more stops in smaller towns along the way. When Greyhound launched the BoltBus and NeOn bus lines, this is an example of

an extension in the width of the product mix.

According to the text, a product is defined as

anything the customer receives in an exchange.

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. Tasha is shopping for personal care items at her local Target. She walks by one aisle and sees a floor-standing display for the new Venus Embrace. She hadn't thought about buying a new razor, but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in at the present time?

attention

An individual moves into the adoption stage of the adoption process at the point when he or she

begins using that specific product.

As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a

business product.

The intangible products that most organizations use in their operations are called

business services.

Products are classified as being business or consumer products according to the

buyer's intended use of the product.

Business products are

classified according to their characteristics and intended uses.

A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n)

component part.

Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product.

component parts

Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods.

lower; fewer

Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ___________ stage of its life cycle.

decline

The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____ stage.

decline

Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the _____ stage of the product life cycle as possibilities for elimination.

decline

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of

depth of product mix.

Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix

depth.

The depth of a product mix is measured by the average number of

different products offered in each product line.

When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as

divesting.

Aggressive pricing is typical during the ___________ stage of the product life cycle.

growth

Sales usually start to decline during the __________ stage of the product life cycle.

end of the maturity

A group of closely related product items that are related because of marketing, technical, or end-use considerations is a product

line.

All of the following are reasons why new products fail except

followed a systematic plan.

During the growth stage of the product life cycle, marketers must

fortify the product position.

An example of a convenience product is

gasoline.

Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle.

growth

A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called

harvesting.

A(n) _____ is a concept, philosophy, or image.

idea

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets

ideas.

When banks add new services during the maturity stage, the objective they are most likely trying to achieve is

increasing their share of the customer.

Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of

ineffective branding.

Gillette shaving razors were first manufactured in 1895. Over the years, Gillette made improvements on their razors offering many "firsts" such as the Mach3, the Sensor, and the Fusion. For many years, women were forced to use razors designed primarily for men, but often marketed to women by offering them in different colors and with minimal modifications. In 1998 Gillette developed the Venus razor, based on the Mach3 but made specifically for women. Gillette promoted the Venus razor heavily, with television ads and other forms of media. The Gillette product line, now owned by Procter & Gamble, continues to introduce new versions of the Venus, such as the Venus Embrace, which has additional blades and other modifications. Molly has been using a Bic disposable razor for her shaving needs for the last ten years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more difficult to find the Bic, and so she is considering the Venus Embrace. Molly is definitely not a(n) _______ in the product adopter categories, and is more likely to be _____.

innovator; a late majority

Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and

innovators.

People who enjoy trying new products and are often the first to do so are known as

innovators.

Facilities, factories, and production lines with very large equipment are all classified as

installations.

Large tools and machines used in a production process for a considerable length of time are classified as

installations.

Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer.

lines

The width of a product mix is measured by the number of product

lines a company offers.

Megabus is a new line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound Lines, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound, has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on NeOn bus from Buffalo, NY to New York City is $50.00 roundtrip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greynound's traditional line is that there are more departure times and more stops in smaller towns along the way. Casey is searching the website of Megabus.com for the schedule and fares of a trip between Buffalo, NY and New York City. Case is most likely in which of the following stages of the product adoption process?

interest

Sales start at zero and profits are negative during the ____ stage of the product life cycle.

introduction

The four major stages of a product life cycle include

introduction, growth, maturity, and decline.

A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle.

maturity

A common business objective of the ___________ stage of the product life cycle is to generate cash flow.

maturity

Heinz promoting its vinegar as an effective cleaner for wall, glass, and kitchen and bathroom surfaces would most likely be a strategy for the _____ stage of the product life cycle.

maturity

Price strategies become more mixed during the ___________ stage of the product life cycle.

maturity

The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ___________ stage of the product life cycle.

maturity

When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ___________ stage of the product life cycle.

maturity

When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ___________ stage of the product life cycle.

maturity

During the introduction stage of a successful product, profits are usually

negative and increasing.

When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned, and customers were no longer clamoring for these type of products. The reason this product failed is

poor timing.

Products used directly in the production of a final product but are not easily identifiable are categorized as

process materials.

Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and

raw materials.

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

A specialty product

requires purchase planning, and the buyer will not accept substitutes.

During the decline stage of the product life cycle,

sales rapidly decrease.

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ______ products.

shopping

During the maturity stage

some competitors are forced out.

As Beth and Rob Barker search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ___________ product.

specialty

Buyers do not compare alternatives when shopping for ______ products.

specialty

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ______ product.

specialty

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ___________ product.

specialty

A product item is best described as a

specific version of a product.

When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ___________ stage of the product adoption process.

trial

One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix

width.