Maketing 351 (Cousley) Test3 T/F
T F Warranties and customer training are examples of customer services.
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T F 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.
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T F During a product's maturity stage, all sales promotion efforts are focused on consumers.
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T F During the growth stage, promotion costs rise as a percentage of total sales.
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T F Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development
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T F Functional modifications make an existing product more durable.
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T F In the awareness stage of the product adoption process, the buyer seeks information about the product.
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T F Intensive competition causes price increases during the growth stage of the product life cycle.
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T F Line extensions are less common than other new products because line extensions are more expensive and more risky.
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T F New products are classified solely as innovations that have never been sold by any organization
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T F New-product development does not include planning for advertising.
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T F Obtaining a specialty product involves a considerable amount of comparison activity.
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T F Per-unit gross margins on convenience products are relatively high.
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T F Product design is the process of creating and designing products so that consumers perceive them as different from competing products.
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T F Product mix refers to a related group of products in the product line.
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T F Product support services are important mainly for products that are mechanical in nature.
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T F Quality modification of an existing product aims at changing the product's safety, convenience, or versatility.
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T F Quality modifications never seek to reduce product quality.
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T F Sales personnel are an external source for new product ideas.
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T F Test marketing is an extension of the product screening process.
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T F Test marketing should be conducted when a product has been given a low probability of success.
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T F The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.
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T F The core product element of the total product can include installation, delivery, training, and financing.
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T F The decision to drop a product should always be a unanimous decision of the management team.
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T F The dropping approach to product deletion generates a sales spurt just before removing the product from the market.
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T F The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.
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T F The majority of new-product projects initiated by major companies reach the commercialization stage.
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T F 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.
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T F 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.
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T F The phase-out approach to product deletion exploits any strengths left in the product.
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T F The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence.
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T F The sum of all the product's physical characteristics is called product quality.
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T F The two major product categories are business and institutional.
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T F The width of a product mix refers to the number of generic products offered by a company.
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T F To manage products effectively, the product manager must be independent of other departments.
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T F Trial is the first stage of the product adoption process.
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T F Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.
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T F The depth of a product mix is measured by the average number of product types in a product line.
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T F The major drawback in using aesthetic modifications is that their value is determined subjectively
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T F The product development stage determines the technical feasibility of producing the new product.
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T F The runout approach to product deletion is used for technologically obsolete products.
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T F There is no best approach to managing products.
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T F Time spent in test marketing can benefit a firm's competitors.
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T F Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.
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T F Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of aggressive competition.
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T F "Business Services" is not a category or type of business product.
F
T F A buyer becomes aware of the product during the evaluation phase of the product adoption process.
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T F 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.
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T F A runout approach to product deletion lets the product decline without changing the marketing strategy.
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T F A seller's profits peak in the maturity stage of a product's life cycle.
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T F Accessory equipment becomes a part of the finished product.
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T F Buyers want to exert only minimal effort to obtain shopping products
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T F Component parts usually need to be processed significantly before they are used in production
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T F Concept testing gives reliable feedback, but at a relatively high cost.
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T F Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions
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T F Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.
F
T F The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.
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T F "The people to check with" are the early adopters.
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T F A brand manager is a type of product manager.
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T F A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product mix.
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T F 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.
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T F A product mix is the composite or total group of products that an organization makes available to customers.
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T F A product's classification can influence its price, distribution, and promotion.
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T F A service is intangible and is the result of the application of human or mechanical efforts to people or objects.
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T F Advertising used in the decline stage may prolong the life of the product.
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T F An important question in the business analysis stage of new-product development is, "Will this product meet our profit goal?"
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T F Automobile makers rely heavily on aesthetic modifications.
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T F Brand and product managers operate cross-functionally.
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T F Business analysis provides a tentative sketch of a product's profitability.
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T F Changing the product's quality is a distinct alternative in the maturity stage of the product life cycle.
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T F Communicating product benefits to consumers is very important in the introduction stage
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T F Consistency of product quality means giving consumers the quality they expect every time they purchase a product.
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T F Designing a product that customers perceive as different from competing products is an example of product differentiation.
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T F During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.
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T F Estimates of sales are an important component of business analysis.
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T F Functional modifications help an organization achieve and maintain a progressive image.
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T F Functional modifications usually require that the product be redesigned
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T F How a pair of jeans looks, regardless of the price, is an example of styling.
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T F If you buy McDonald's French fries in Fort Collins, Colorado, and later buy McDonald's French fries in College Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.
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T F Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain market share.
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T F Many of the so-called new products that are launched each year are in fact line extensions.
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T F Many products are in the maturity stage of the product life cycle.
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T F Many products never get beyond the introduction stage.
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T F New products seldom generate enough sales to bring immediate profits.
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T F Price cuts are typical in a product's growth stage.
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T F Process materials are used directly in the production of products.
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T F Procter & Gamble has a wider product mix than does Baskin Robbins.
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T F Product managers can be responsible for a single product, a product line, or several products.
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T F Profits decline in the maturity stage, largely because of increased competition.
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T F Promotion decreases in importance during a product's decline stage.
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T F Relatively few product ideas are put into the product development stage.
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T F Sales peak in a product's maturity stage.
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T F Sellers can sometimes prolong a product's life cycle.
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T F Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product.
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T F Sometimes new marketing channels open up in the decline stage.
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T F Strategies relating to price become more mixed during a product's maturity stage.
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T F Supporting services, such as installation and guarantees, are part of a product.
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T F Systematic reviews of a company's product mix aid in determining when product deletion is necessary.
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T F Test marketing is a sample launching of the entire marketing mix.
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T F Test marketing is used by companies of all sizes, primarily because of the perceived risk of product failure on the open market and the associated consequences.
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