MKTG CH 11 T OR F

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A buyer becomes aware of the product during the evaluation phase of the product adoption process.

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.

F

A seller's profits peak in the maturity stage of a product's life cycle

F

Accessory equipment becomes a part of the finished product.

F

Being a product pioneer guarantees a product's success.

F

Business Services" is not a category or type of business product.

F

Buyers want to exert only minimal effort to obtain shopping products

F

Component parts usually need to be processed significantly before they are used in production.

F

Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable

F

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

F

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

F

During the growth stage, promotion costs rise as a percentage of total sales

F

Early adopters are the first group of consumers to adopt a new product

F

Failure of a new product is always absolute.

F

Following a consistent customer-focused plan does not help new products become successful

F

In the awareness stage of the product adoption process, the buyer seeks information about the product

F

Intensive competition causes price increases during the growth stage of the product life cycle

F

Obtaining a specialty product involves a considerable amount of comparison activity.

F

Per-unit gross margins on convenience products are relatively high.

F

Product mix refers to a related group of products in the product line.

F

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

F

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

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.

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

F

The success of launching a new product is based primarily on luck.

F

The two major product categories are business and institutional

F

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

F

Trial is the first stage of the product adoption process.

F

Unfinished furniture is considered to be a convenience product because it is relatively inexpensive

F

When a successful brand such as Frito-Lay develops a new product, it will always succeed

F

"The people to check with" are the early adopters.

T

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

T

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

T

A product mix is the composite or total group of products that an organization makes available to customers

T

A product need not be a physical product.

T

A product's classification can influence its price, distribution, and promotion.

T

A service is intangible and is the result of the application of human or mechanical efforts to people or objects

T

Advertising used in the decline stage may prolong the life of the product

T

Bread is usually a convenience product

T

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

T

Communicating product benefits to consumers is very important in the introduction stage

T

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

T

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

T

Laggards are the last to adopt a new product and usually distrust new products

T

Many products are in the maturity stage of the product life cycle

T

Many products never get beyond the introduction stage

T

New products seldom generate enough sales to bring immediate profits

T

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

T

Price cuts are typical in a product's growth stage.

T

Process materials are used directly in the production of products

T

Procter & Gamble has a wider product mix than does Baskin Robbins

T

Profits decline in the maturity stage, largely because of increased competition

T

Promotion decreases in importance during a product's decline stage.

T

Sales peak in a product's maturity stage.

T

Sellers can sometimes prolong a product's life cycle

T

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

T

Sometimes new marketing channels open up in the decline stage.

T

Strategies relating to price become more mixed during a product's maturity stage

T

Supporting services, such as installation and guarantees, are part of a product

T

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.

T

The buyer's intent can determine whether an item is classified as a consumer or a business product

T

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

T

The first adopters of a product are the innovators.

T

Use of the product is the most important means of distinguishing consumer products from business products.

T

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.

T


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