Chapter 11
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.
Which of the following is always used to determine the classification of a good?
Buyer's intent for using the product
What are a marketing manager's two options during the decline stage?
Attempt to postpone the decline or accept its inevitability
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
Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ___________ products.
Convenience
Which of the following is most likely to be considered a convenience good?
Gatorade
A(n) _____ is a concept, philosophy, or image.
Idea
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 is the most typical example of a new product introduction?
Pringles sold in snack-size containers
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.
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
Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?
Traveler's Insurance umbrella
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.
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
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
Business products are
classified according to their characteristics and intended uses.
Cadillac recognized it needed to revitalize its brand and attract different market segments. These are indications that Cadillac's products were primarily in the ______ stage of the product life cycle.
decline
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
When are marketers least likely to change a product's design, style, or other attributes?
decline
Sales usually start to decline during the __________ stage of the product life cycle.
end of the maturity
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
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
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
Sales start at zero and profits are negative during the ____ stage of the product life cycle.
introduction
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
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
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
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
What measure of the product mix involves the number of product lines a company offers?
width
A product mix is best described as
all products offered by a firm
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
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
MRO supplies
A company wanting to maintain market share during the maturity stage requires moderate to large
advertising expenditures
According to the text, a product is defined as
anything the customer receives in an exchange
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 individual moves into the adoption stage of the adoption process at the point when he or she
begins using that specific product
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
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
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
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
Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of
depth of product mix
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
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
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
Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle.
growth
Aggressive pricing is typical during the ___________ stage of the product life cycle.
growth
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
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
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
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
The four major stages of a product life cycle include
introduction, growth, maturity, and decline.
The last group to adopt a new product, _________, is oriented toward the past and is suspicious of new products.
laggards
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
Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods.
lower; fewer
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
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
Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product
mix
During the introduction stage of a successful product, profits are usually
negative & 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
Minerals, chemicals, timber, and agricultural products are considered
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
Gap clothing stores sell primarily what type of products?
shopping
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
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
During the maturity stage
some competitors are forced out