Chapter 14: Connect Master Intro to Business

A business just purchased new phones for the office. How should the phones be classified?

As accessory equipment

What kind of products are found in the B2B market?

Industrial

Which business products are in their natural, unadulterated state?

Raw materials

Which of the following is classified as an installation?

The construction of a building

What are two important features of brands?

They promote repeat sales. They make it easier to enter new markets.

What is an example of the convenience class of consumer products?

A bottle of water

What is an example of the shopping class of consumer products?

A pair of sandals to wear in the summer

What is an innovation?

A product that customers see as being newer or better than existing products

From the following list, select all of the examples of discontinuous innovation.

A technology company introduces a new headband that improves concentration and mental performance by stimulating brain waves. An agricultural equipment company produces a new robot capable of destroying weeds and scaring away pests. A medical device manufacturer develops a new wand that can detect a range of diseases by simply passing over the patient's body.

From the following list, select all of the examples of continuous innovation.

Adding elastane to a line of workout clothes to make them stretchier and more durable Changing the shape of earbuds to make them more comfortable

What is a total product offering?

All the features that potential buyers evaluate in a product.

Select all of the places a consumer might purchase products in the shopping class.

Amazon, an online retailer Forever 21, a clothing retailer Anthropologie, a clothing retailer

A company is building a new wing to its factory. How should the new wing be classified?

As an installation

A business purchased a fleet of long-haul trucks. How should the trucks be classified?

As capital items

Which market sells items to consumers for their personal use?

B2C

Convenience Shopping

Batteries, Sports drinks, Chewing gum Smartphones, Clothes, Computers

What term refers to the value a firm derives from the factors, such as emotions, that people associate with a specific brand name?

Brand equity

Which of these markets consists of industrial goods and services?

Business

What are three ways branding helps create value?

By publicizing the company name and building trust By getting repeat sales By differentiating the product from competitors' products

Which business products are usually purchased only rarely?

Capital items

From the list below, select all of the activities that occur during the idea generation stage of the new product development process.

Companies gather ideas from customers, suppliers, and competitors. Companies listen to employees or research-and-development specialists.

Which business products are used in other products?

Components parts

Which of the following is accessory equipment?

Computers

Which of these markets involve marketing products to individuals or households for personal use?

Consumer

From the following list, select all of the factors that are common reasons why innovation occurs.

Consumer needs frequently change. New products are rarely successful. Some products require years to develop.

What is a true statement about the shopping class of consumer products?

Consumers compare products before they make a purchase.

A food manufacturer makes a small change to the recipe of its popular breakfast bars to reduce the amount of refined sugar used. The bars now contains less sugar as the closest competitor. Which type of innovation does this represent?

Continuous innovation

Which class of consumer products are purchased very often?

Convenience

A pharmaceutical company introduces a brand new medication that prevents the development of skin cancer. Which type of innovation does this represent?

Discontinuous

Which type of innovation involves the production of a completely new product that radically changes how people live?

Discontinuous innovation

A footwear company makes a significant change to its flagship line of running shoes, adding Bluetooth transmitters capable of sending data to fitness trackers or smartphones. Which type of innovation does this represent?

Dynamically continuous innovation

An appliance company decides to completely overhaul its line of dishwashers, making them controllable by smartphone or another connected device. Which type of innovation does this exemplify?

Dynamically continuous innovation

Because Google Glass was met with criticism and pulled from the market shortly after its launch, it can be considered which type of new product?

Failed

Commercialization Test marketing Product development Product analysis Product screening Idea generation

Full-scale production and marketing of the product begins. The product is introduced to a small geographical market to observe consumers' reactions. A product prototype, or preliminary version, is made. Companies analyze the costs associated with producing a product to gauge its profitability. Ideas that are too expensive, time-consuming, or unprofitable are eliminated. Companies listen to employees, research-and-development specialists, customers, suppliers, and even competitors.

Select all of the places where consumer products from the convenience class are usually purchased.

Gas stations Drug stores

Select all of the aspects of the total product offering that make purchasing a product less financially risky.

Guarantees Warranty

What is an example of the unsought class of consumer products?

Home insurance after buying your first home

Which of the following is classified as capital items?

Industrial robots

Which statement about the development of the Apple iPad is true?

It had a long development time.

What are true statements about the total product offering? More than one answer may be correct.

It includes product labeling and packaging. It includes product warranty and financing. It refers to all the features that potential buyers evaluate in a product.

What is a true statement about the B2B market?

It sells products to businesses.

Which product is considered obsolete?

Landline telephone

Select all of the reasons why innovation occurs.

Long development time Frequent failure of new products Product obsolescence

What is a brand manager primarily responsible for?

Managing the marketing mix for one brand

Which type of brand is in use when a single company creates a product, then brands the product using the company name?

Manufacturer's

______ brands are named after the individual company that creates the product or service.

Manufacturer's

Continuous innovation Dynamically continuous innovation Discontinuous innovation

Modest improvements or slight tweaks to an existing product to distinguish it from competitors Marked changes to an existing product causing customers to learn how to use the product or change behavior A totally new product radically changing how people live

Specialty Unsought

Motorcycles, Wedding dresses, Paintings Life insurance after beginning a family, Emergency kits after a disaster, Home security system after a break-in

Brand awareness Brand preference Brand insistence

People recognize the brand. People regularly use the brand. People refuse to accept substitutes for the brand.

From the following list, select all of the components of the total product offering.

Price Packaging Maker's reputation

What are industrial goods?

Products that businesses use to produce other products

Brand equity Brand loyalty

Refers to the value a firm derives from the factors people associate with a particular brand, Includes emotional associations Refers to customer satisfaction with a specific brand resulting in repeat purchases, Includes brand awareness, preference, and insistence

Which class of consumer products require consumers to go out of their way to buy them?

Speciality

Chris is a weather aficionado. He recently purchased a weather station for his home that records temperature, rainfall, and barometric pressure. He bought the item from an online retailer that sells weather stations and associated accessories. Which class of purchase was the weather station?

Specialty

Tanya makes quilts. Every few years, she takes sewing machine to the Ye Aulde Quilt Shoppe to have it fixed because the store is highly recommended by other quilters. What class of consumer products is available at the quilt store?

Specialty

Which of these is an example of a product that had a long development time?

Tesla automobile

Which of these is an example of a purchaser of B2C products?

The Jones household

What are two important features of brands?

They help set the company's products apart from competitors' products. They publicize the company name and build customer trust.

What is a true statement about the specialty class of consumer products?

They require effort to purchase.

What is the purpose of branding?

To help consumers identify a product and organization

What are the two primary purposes of packaging?

To promote the product To protect the product

What is an example of the specialty class of consumer products?

Tools for fixing a typewriter

Todd's basement flooded after a creek in his neighborhood overflowed. He realizes he should probably purchase flood insurance. In this case, what class of purchase is flood insurance?

Unsought

The parts of a brand that can be expressed in words are ______.

brand names

Brands create value for companies by making it easier for them to enter new markets with the help of ______, which is when customer familiarity with the brand lends the company credibility.

brand recognition

The business-to- ___ market consists of all those individuals or households that want goods or services for their personal use.

consumer

Product ______ involves attracting consumers by showing them how a product is unlike products offered by the competition.

differentiation

When done effectively, branding creates brand recognition, which is tied to credibility and makes it easier for the brand to ______.

enter new markets

The value a company gets from the factors that people associate with a specific brand is brand ______.

equity

Goods used to produce other products are known as ___ goods

industrial

When consumers are satisfied with a particular brand to the point where they make repeat purchases, they are displaying brand ______.

loyalty

Netflix has named the service it makes and sells after the company itself. This is an example of a(n) ______ brand.

manufacturer's

A product that is sourced from a manufacturer then sold under a different brand name is part of a(n) ______ brand.

private-label