Contemporary Marketing 14th Edition by Gene Boone -Test Bank

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INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS

 

Contemporary Marketing 14th Edition by Gene Boone -Test Bank

 

Sample  Questions

 

Chapter 5—Consumer Behavior

 

TRUE/FALSE

 

  1. Consumer behavior refers to the process of ultimate buyers making purchasing decisions.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Kurt Lewin’s model of human behavior defines behavior as a function of the interactions of personal influences and pressures exerted on them by outside environmental forces.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   AP

 

  1. To better understand how consumers make buying decisions, marketers borrow extensively from the sciences of physics and biology.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Generally speaking, human behavior is primarily a function of pressures exerted by outside environmental forces on the individual.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   134

OBJ:   5-1

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Kurt Lewin’s theory of human behavior has been modified by marketers to create a model for understanding consumer behavior. In the adaptation, consumer behavior (B) is a function of the interactions of interpersonal influences (I) and personal factors (P), or essentially B = f (I, P).

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

  1. According to Kurt Lewin’s theory of human behavior, among the personal factors that come into play affecting consumer behavior are one’s attitudes, learning and perception.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The only inputs that affect a consumer’s purchasing decisions are those provided by his or her psychological makeup.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Culture can be defined as values, beliefs, preferences, and tastes that are handed down from one generation to the next.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Culture is the narrowest interpersonal determinant of consumer behavior.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   135

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The core values of American culture include humanitarianism and the desire to accumulate wealth.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. While some cultural values change over time, basic core values do not.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   135

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

  1. The United States and Europe are finding that cultural influences are growing less important in determining the purchasing behavior of consumers.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   136

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Dale and Lisa, ranchers from Wyoming, found that the meat of their large, slow-growing hogs were not selling in American grocery stores. However, the animals command premium prices in Japan where the meat is enjoyed for its flavor and fat content. The purchasing influence they are experiencing is a cultural influence.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   136

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. When using an e-tail Web site, the UK audience becomes frustrated if there is no clear information on which geography the Web site covers. Often, they will assume the site will not ship to them and move on. American audiences are more accepting of Web sites that do not designate geography, and assume the site will ship to their location. This example illustrates the cultural differences between U.S. and UK consumers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   136

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. It was not until the introduction of the Chevrolet Nova in Mexico that marketers realized “no va” in Spanish means “won’t go.” This linguistic error demonstrates how Chevrolet overlooked cultural differences in its product introduction.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   136

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Understanding culture alone will not lead a marketer to success; understanding subculture is just as essential.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   136-137

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

  1. Any non-homogeneous society will have numerous subcultures with identical modes of behavior.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   137

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Subcultures are groups within a larger culture that have their own distinct modes of behavior.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   137

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. America’s population is becoming more homogeneous as ethnic and racial minority groups blend in through assimilation into the culture.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   137

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The cultural differences among Hispanic Americans usually do not affect their preferences as consumers.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   137

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The three largest and fastest-growing U.S. ethnic subcultures are Hispanic Americans, African Americans and Asian Americans.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   138

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The Hispanic American population is not a single, homogeneous group, but instead a number of groups, each of which differs culturally from the others.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   138

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

  1. Marketers are more concerned with the acculturation experience of a Hispanic American than the country of national origin.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   138

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Highly acculturated Hispanic Americans are predominately born in the United States, and most speak English by the third generation.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   138

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The African American culture in the United States runs the gamut from new immigrants to multigenerational American families. However, this fact should be of little importance to a marketer targeting subcultures within the group.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   138

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Although they share a common heritage, the African American community should be regarded as different subcultures due to ranges in education, income, acculturation levels and demographics.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   139

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The Asian American subculture consists of more than two dozen ethnic groups, each of which brings its own language, religion and values to the marketplace.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   140

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Group membership influences an individual’s purchase decisions and behavior in both overt and subtle ways.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   140

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

  1. Status is the relative prominence of an individual who is not a member of a particular reference group.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   140

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Groups do not intentionally create formal roles, nor do they ever have expectations that roles and status will develop within their membership.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   140

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Individuals who aspire to become members of a certain group will often follow that group’s norms before becoming a group member.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. If a middle manager buys a SAAB automobile because several top executives in the firm own SAABs, this demonstrates the influence of membership groups.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The buying behavior of an individual in a group is not only affected by the norms of the group, but also by that individual’s role and status within the group.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Chris decides to proceed with a majority decision, even though the decision goes against his beliefs. Chris is exhibiting the Asch phenomenon.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

  1. A reference group’s influence on a purchasing decision of a member is often greater when the product is more conspicuous and not commonly owned.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   141

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Groups whose value structures and standards influence a person’s behavior are known as reference groups.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   141

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. While cultural and family influences significantly affect consumer behavior, the influence of reference groups on consumer behavior tends to be minimal, especially for children.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Social class is determined by a multitude of factors including wealth, IQ and social connections.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   142

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Social class has rankings determined by income, occupation, education, family background and location of residence.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   142

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. In determining class ranking, income is the most important variable.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   142

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

  1. Marketers find various methods like providing exclusive, unique or prestigious products to attract and impress the upper classes.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   142

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Opinion leaders are the first consumers to try products and then share their experience by word of mouth.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   142

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Opinion leaders rise to prominence because of their interest and expertise in certain products.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   142

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Opinion leaders gather their information only from magazines and newspapers, and then pass the information directly to the public through word of mouth.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   142

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The Internet and other media advertising have made family influences insignificant as a variable in determining purchasing behavior.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   143

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. A life insurance salesperson is selling a policy to a husband and wife, and directs his conversation both the husband and the wife. We can assume the salesperson perceives this to be a syncratic purchasing decision.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   143

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

  1. Marketers are finding new product opportunities with two-income families demanding goods and services that fill the need for convenience, health, safety and time constraints.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   143

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Familiarity with technology and individualism are two important characteristics of the teen group.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   144

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Motives are external states that direct a person toward the goal of satisfying a need.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   145

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Consumers are often motivated to purchase a product in the hopes of filling a need.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   145

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. A need is an imbalance between the consumer’s actual and desired states.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   145

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. According to Maslow’s Hierarchy of Needs, some people fixate on a need and never move beyond it.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   145-146

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Maslow’s Hierarchy of Needs begins with self-actualization needs at the lowest level, and progresses to physiological needs at the highest.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   145-146

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. According to Maslow’s Hierarchy of Needs, the desire to feel accomplishment, achievement and respect is a social need.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   146

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Later research has shown that, depending on the personal value system of an individual, he/she might skip the esteem level of Maslow’s Hierarchy of Needs and move directly toward self-actualization.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   146

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Perception is the meaning a person attributes to incoming stimuli gathered through the senses of hearing, taste, smell, touch and sight.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   146

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. A person’s perception of a product results solely from its physical characteristics such as size, color, shape and weight.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   147

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. When creating an advertisement, marketers use color instead of contrast to break through the perceptual screens of consumers.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   147

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Blogs, social networking sites and electronic bulletin boards are effective ways for a marketer to infiltrate the perceptual screens of consumers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   147

OBJ:   5-3

NAT:  AACSB Technology | CB&E Model Customer | R&D Knowledge of human behavior & society         TYP:    AP

 

 

 

  1. Closure refers to a person’s tendency to be influenced by messages that close the gap between a product’s real and perceived advantages.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   147

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Marketers are challenged to create better packaging, dynamic advertising and eye-catching promotional materials in order to maintain the perceptual screens of loyal consumers.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   147-148

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Advertising that utilizes closure has a good chance of catching the attention of consumers as they try to complete the advertising message with a limited amount of stimuli.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   147-148

OBJ:   5-4

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Consumers with strong loyalties to certain products are more difficult to reach with competitive advertising.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   148

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Brand loyalty is valued by marketers as it not only keeps consumer purchasing the product, it also acts as a buffer against competitive messages getting to the consumer.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   148

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Subliminal advertising has proven to be a very successful way to induce the purchasing behavior desired by the marketer.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   148

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

  1. Marketers realize that attitudes are highly erratic and cannot be used to determine the purchasing behaviors of consumers.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-4

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Of all the variables that marketers study, attitudes are the most important because they change frequently and can be easily influenced in favor of buying a particular product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The three components of an attitude are behavioral, affective and cognitive.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   149

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Jacqueline plans to purchase a 40-inch flat-screen television. After reading Consumer Reports, comparing technologies and prices on the Internet, and talking with friends and family who have made a similar purchase, Jacqueline makes her selection. The attitude component most apparent in this situation is cognitive behavior.

 

ANS:  T                    PTS:   1                    DIF:    3                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Ashok avoids buying certain products because of an unsatisfactory past experience with the manufacturer. Ashok is exhibiting the behavioral component of attitude.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Marketing success depends on a positive attitude, defined by a stable and balanced relationship between the behavioral, affective and cognitive components.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   149

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

  1. The decision on which retail store to shop is more often influenced by advertising and coupons than a consumer’s previous history with the store.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Shaquille purchases a refrigerator for his newly remodeled kitchen. His positive attitude about the product is a balance in the relationship between the behavioral, cognitive and affective components of his buying decision.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Over the past decade, the market for fresh spinach has increased dramatically. However, an outbreak of E. coli bacteria from certain spinach fields reduced spinach sales and changed consumer attitude about the product during that time. The attitude component most likely affected by this event was the behavioral.

 

ANS:  F                    PTS:   1                    DIF:    3                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Marketers have two ways of convincing consumers to adopt favorable attitudes toward their products: attempting to change the attitudes of consumers, or changing the product to appeal to existing attitudes.

 

ANS:  T                    PTS:   1                    DIF:    3                    REF:   149

OBJ:   5-4

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Marketers are more concerned with the current status of consumer decisions than they are with the process of how these decisions change over time.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   150

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

 

 

  1. A restaurant that places signs along the interstate to advertise its location knows the signs will act as cues, and hunger will be the drive that will create the desired response of the consumer stopping at the restaurant.

 

ANS:  T                    PTS:   1                    DIF:    3                    REF:   150

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. A money-back guarantee is a form of purchasing reinforcement.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   150

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. At specific mileage intervals, Honda sends certificates to owners of their automobiles offering discounts on repair services through the dealerships. Each repair visit is overseen by a trained service representative, and completed repairs are followed up to ensure customer satisfaction. The attention given by the dealership is called shaping – creating the desire for the customer to return to their service department whenever a repair is needed.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   151

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Successful shaping leads to strong brand loyalty.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   151

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. People tend to buy products they believe will bring them closer to their looking-glass self images.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   152

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Self-image and the looking-glass self are usually very similar, and marketers understand these are the images that drive purchasing decisions.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   152

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

  1. Mark is looking for a new car. Although his financial statements suggest he consider getting a car under $30,000, Mark is determined to purchase a new Mercedes because that is the car all the junior partners in his law firm drive. Mark’s purchasing behavior is being influenced by his ideal self-image.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   152

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Purchase decisions with significant psychological and economic consequences are defined as low-involvement decisions.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   152

OBJ:   5-4

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Purchasing music from the Apple iTunes Web site is considered a high-involvement purchase decision because music is a uniquely personal choice.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   152

OBJ:   5-4

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Consumers buy more lower-priced items than higher-priced items during the course of a year. The frequency of lower-priced purchasing decisions categorizes them as high involvement.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   152

OBJ:   5-4

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The consumer decision process is defined by six steps that move the consumer from the first step of need identification to the final step of purchasing the product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   153

OBJ:   5-4

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The steps in the consumer purchasing decision are passed through faster if a marketer has successfully shaped the consumer’s behavior.

 

ANS:  T                    PTS:   1                    DIF:    3                    REF:   153

OBJ:   5-4

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

  1. The last step in the consumer decision process may include a form of reinforcement.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   153

OBJ:   5-4

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The number of brands included in the evoked set vary depending on both the situation and the person.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   154

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The evoked set used in the search process can vary depending upon the urgency of the need.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   154

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Technology has a tremendous impact on the search process, not only due to the ease of accessing information but also for the options available for competitive shopping.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   154

OBJ:   5-5

NAT:  AACSB Technology | CB&E Model Customer | R&D Knowledge of technology, design, & production           TYP:              KN

 

  1. Marketers can expand an evoked set by demonstrating how a product’s benefits meet the consumer evaluative criteria.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   154

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The phenomenon that occurs when a consumer feels anxiety after a purchase is known as cognitive dissonance.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

 

  1. The probability of experiencing cognitive dissonance is directly related to the price of the item involved in the purchase.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. After purchasing a new oven and range, Marta was contacted by the store where she purchased the products. The salesperson inquired about the delivery, installation and her overall satisfaction. Contacting Marta after the purchase not only reduced any cognitive dissonance she felt, but also provided reinforcement for revisiting the store for future purchases.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Resolving to buy a different brand in the future may reduce cognitive dissonance in the present.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. A purchase made on the basis of a preferred brand or a limited group of acceptable brands is called limited response behavior on the part of a consumer.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Repurchasing the same brand of detergent during each trip to the grocery store is an example of limited problem-solving behavior by a consumer.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Cynthia and William enter Franklin’s Electronics to buy a television. They are replacing their 20-year-old color set, and are surprised by the array of choices utilizing the latest technology. They decide to take their time and look at every type of TV Franklin’s has to offer. The behavior they are most likely experiencing is limited problem solving.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   157

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The introduction of a new brand into an array of familiar products often triggers limited problem-solving behavior on the part of consumers.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Purchasing decisions involve three types of decision making: routine response, impulse buying, and complex problem solving.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. When consumers are minimally involved and experience little risk in a buying decision, it is likely to be a routinized response behavior.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The degree of external search increases as purchasing behavior moves from routine to limited problem solving to extended problem solving.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Considerable external searching for alternatives is typical when consumers are involved in extended problem solving.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   157

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Choosing from an array of products that include a new, unfamiliar brand in a familiar purchase situation would be considered extended problem solving.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   157

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

  1. High-involvement purchases and a careful analysis of information and choices would be classified as extended problem-solving situations.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   157

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. When extended problem solving by a consumer occurs in a buying situation, the chance of experiencing cognitive dissonance is greater than when routine response behavior is involved.

 

ANS:  T                    PTS:   1                    DIF:    3                    REF:   157

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

MULTIPLE CHOICE

 

  1. Consumer behavior refers to:
a. organizational and consumer purchase decision-making behavior.
b. customer spending patterns.
c. post-purchase decision-making behavior.
d. the consumer decision-making process.

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Kurt Lewin’s statement, rewritten to apply to consumer behavior, states:
a. B = f (I, P).
b. B = f (E, P).
c. B = (I, E).
d. P = (I, E).

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. According to psychologist Kurt Lewin, understanding consumer behavior is facilitated by an understanding of:
a. individual learning levels and group power.
b. individual psychological makeup and the influences of others.
c. attitudes and perception.
d. reference groups and personal inferences.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Kurt Lewin’s theory of consumer behavior asserts that consumer behavior is a function of personal factors and their interaction with:
a. perception.
b. learning.
c. attitudes.
d. interpersonal influences.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Jorge plans to buy a car and discusses the purchase with his parents. Their influence on this buying decision is considered:
a. impersonal.
b. interpersonal.
c. personal.
d. institutional.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   134

OBJ:   5-1

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Rachael, an advertising executive, shops for clothing at a trendy store in town. The sales clerk shows her the latest styles in bright prints and bold colors. Despite the fact these are the styles worn at her office, she rejects them and purchases a wardrobe in neutrals and black. Rachael’s decision is mostly likely driven by _____ influences.
a. impersonal
b. interpersonal
c. personal
d. institutional

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   134

OBJ:   5-1

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Which of the following statements reflects Carla’s interpersonal determinants concerning her purchase of an Apple computer?
a. She believes you get what you pay for when purchasing products.
b. She perceives that Apple offers the best customer service.
c. Her family will only buy Apple products.
d. She purchased a condo in a trendy area of town and wants her furnishings to reflect the lifestyle she leads.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   135

OBJ:   5-1

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The broadest environmental determinant of consumer behavior is:
a. folklore.
b. tradition.
c. culture.
d. status.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The interpersonal influences on consumer behavior include a person’s:
a. attitudes.
b. perceptions.
c. family.
d. self-concept.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   135

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. An example of a core value of the United States culture would be the:
a. work ethic.
b. importance of team spirit.
c. dignity of the elderly.
d. importance of personal achievement.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The core values of U.S. society:
a. change slowly over time.
b. change annually.
c. are defined in the U.S. Constitution.
d. never change.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

 

 

 

  1. A shift in cultural values away from accumulating material possessions to spending time with family and friends benefit those who market:
a. designer clothes
b. luxury cars.
c. state parks and picnic areas.
d. children’s games and toys.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   135

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Education, individualism, freedom, health and humanitarianism are some of the:
a. considerations involved in the formation of family groups.
b. objectives reached by most people.
c. buying activities related to and based internationally.
d. core values in U.S. culture.

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Cultural differences are particularly important for:
a. firms marketing internationally.
b. not-for-profit organizations.
c. firms marketing to a specific target market in a single city.
d. dealing with issues having historical significance.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. From which country do the majority of the Hispanic population in the U.S. originate from?
a. Brazil
b. Puerto Rico
c. Cuba
d. Mexico

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   138

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

 

  1. Analysis of the Hispanic demographics in the United States shows that all of the following statements are correct except:
a. The Hispanic market is growing rapidly.
b. Hispanics tend to be younger than the typical American.
c. Hispanics are geographically concentrated.
d. All Hispanics understand Spanish.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   138-139

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. All of the following statements concerning Asian American consumers are correct except:
a. marketing to Asian Americans presents many of the same challenges as marketing to Hispanics.
b. Asian Americans are geographically dispersed throughout the country.
c. Asian American subculture is comprised of more than two dozen ethnic groups.
d. each Asian American ethnic group has its own language and culture.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   140

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. When groups establish values and behaviors they deem appropriate for their members, those values and behaviors are called group:
a. rules.
b. norms.
c. ideals.
d. behaviors.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   140

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The relative position of an individual within a group is called:
a. cultural assimilation.
b. a role.
c. status.
d. the Asch phenomenon.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   140

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

  1. The Asch phenomenon states that individuals will:
a. follow their personal influences more closely than any other influence.
b. follow the majority opinion even if it contradicts the individual’s beliefs.
c. purchase products that maintain a positive looking-glass self.
d. avoid extended problem-solving behavior.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   141

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Peer pressure is closely related to which purchasing behavior concept?
a. Cognitive dissonance
b. Opinion leaders
c. Cultural influences
d. Asch phenomenon

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   141

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Reference group influences would most likely have the greatest impact on which product purchase?
a. Refrigerator
b. Mercedes Benz
c. iPod
d. Starbucks latte

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Reference groups have a greater impact on the purchasing decision when the:
a. consumer is already established as the opinion leader in the group.
b. purchase is hard to recognize or see by the group.
c. product is common.
d. purchase is unique and conspicuous.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

 

 

 

  1. The single group within society that is most vulnerable to reference group influence is:
a. the older consumer who feels somewhat left out of things.
b. unmarried women, many of whom feel a need for stability in their lives.
c. new immigrants who want to capture the American dream.
d. children, who base most of their buying decisions on outside influences.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   141

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Opinion leaders tend to:
a. lead the group on most issues.
b. purchase products before other consumers, and then quickly pass on their impressions of the products.
c. have above-average income.
d. avoid extended problem-solving behavior.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   142

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. When spouses independently make equal numbers of decisions about the purchases of products, they are said to be acting:
a. syncratically.
b. in a wife-dominant fashion.
c. autonomic.
d. entirely independently.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   143

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The role of each spouse in the purchasing decision is categorized by all of the roles below except the _____ role.
a. syncratic
b. husband-dominated
c. opinion leader
d. autonomic

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   143

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

  1. A newly married couple is looking to rent an apartment. The decision is likely to be:
a. syncratic.
b. made by the individual with the best credit history.
c. made by the individual with the highest income.
d. autonomic.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   143

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Due to the purchasing power of teen consumers, manufacturers and retailers are creating products that appeal to their:
a. limited attention span.
b. desire to be part of a group.
c. tendency toward individualism.
d. growing independence.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   144

OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The personal determinants of consumer behavior include the:
a. culture in which a person is raised.
b. individual’s needs and motives.
c. family to which one belongs.
d. society from which one comes.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   144

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. An imbalance between a consumer’s actual and desired states is a(n):
a. need.
b. attitude.
c. motive.
d. self-concept.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   145

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              KN

 

 

 

 

 

 

 

 

  1. Motives are an inner state that directs a person to create:
a. equilibrium between the actual and desired states.
b. excitement in attaining the need satisfaction.
c. equity between the cost and benefits of the need satisfaction.
d. energy to participate in  the limited problem-solving process.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   145

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. A person who is satisfying the most basic level of needs is operating at which level of Maslow’s Hierarchy of Needs?
a. Self-actualization
b. Esteem
c. Physiological
d. Belongingness

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   145

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Bristol-Myers Squibb, a large pharmaceutical company, has developed a campaign featuring Lance Armstrong promoting their development of anti-cancer drugs. The campaign slogan, “Together We Can Prevail” meets which criteria in Maslow’s Hierarchy of Needs?
a. Esteem
b. Belongingness
c. Safety
d. Physiological

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   145

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Helene, an industrial sales representative, made sure her company car was equipped with OnStar in case she ever had car trouble or got lost while traveling between appointments. Which level of Maslow’s Hierarchy of Needs is Helene addressing?
a. Physiological
b. Safety
c. Esteem
d. Self-actualization

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   145

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

  1. In order for an e-tailer to be successful in the long run, what consumer need must be met regardless of the products or services they are selling?
a. Esteem
b. Belongingness
c. Self-actualization
d. Safety

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   145

OBJ:   5-3

NAT:  AACSB Technology | CB&E Model Customer | R&D Knowledge of human behavior & society         TYP:    AP

 

  1. The needs for fulfillment, realizing one’s own potential, and fully using one’s talents and capabilities are examples of _____ needs.
a. self-actualization
b. physiological
c. social
d. esteem

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   146

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Joining a local bowling league for social interaction is an attempt to meet _____ needs.
a. self-actualization
b. belongingness
c. esteem
d. safety

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   146

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Perception is defined as a blend of:
a. likes and dislikes.
b. emotions and thoughts.
c. actual stimuli and wanted perception.
d. needs and wants.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   146-147

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

 

  1. All of the following are stimulus factors except:
a. basic motivations of the individual.
b. size of the object.
c. the object’s weight.
d. the object’s shape.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   147

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Which of the following would be most likely to break through a person’s perceptual screen?
a. Newspaper ad featuring white type on a black background
b. Black-and-white classified ad
c. Reducing the size of an ad
d. Using fewer colors in an ad

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   147

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Virtual reality is the:
a. transmission of marketing information in a three dimensional fashion.
b. least effective method for advertising high priced products.
c. only way that automobile dealerships can sell cars online.
d. perception that consumers can be better satisfied by purchasing products online.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   147-148

OBJ:   5-3

NAT:  AACSB Technology | CB&E Model Customer | R&D Knowledge of human behavior & society         TYP:    KN

 

  1. Advertising can break through perceptual screens with all of the following examples except:
a. closure.
b. subliminal ads.
c. blogs and electronic bulletin boards.
d. virtual reality.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   147-148

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

 

 

 

  1. Neuromarketing is defined as:
a. using the Internet to view products on informational Web sites.
b. selling products through subliminal perception.
c. eliciting emotions to stimulate purchases.
d. using technical data to appeal to the cognitive decision making tendencies in consumers.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   148

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The cognitive component of attitude:
a. is a measure of the emotional content of the attitude.
b. deals with the aesthetic content of the attitude.
c. refers to the individual’s knowledge and information about an object or concept.
d. measures the speed with which one learns about the attitude object.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Food manufacturers often set up tables in grocery stores where customers can sample featured products. The goal of this type of promotion is to influence the _____ component of attitude.
a. behavioral
b. rational
c. cognitive
d. affective

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. An advertisement that creates warm feelings of goodwill toward the advertiser and its products is altering which component of attitudes?
a. Cognitive
b. Behavioral
c. Traditional
d. Affective

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   149

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

 

  1. Rewarding purchasers of a product by sending coupons to encourage further purchases is an example of:
a. a marketer trying to revive a failing product.
b. promotional activities aimed at increasing store traffic.
c. neuromarketing.
d. reinforcement.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   150

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. In the learning process, reinforcement is:
a. the immediate expected change in behavior as a result of experience.
b. the reduction in drive that results from a proper response.
c. an individual’s reaction to a set of cues.
d. any strong stimulus that impels action.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   150

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Reinforcement in the purchasing process is illustrated in which of the following scenarios?
a. A chef purchases mushrooms for a second time from a wholesaler, even though the first order was disappointing. When the quality is poor once again, the chef cancels all future orders.
b. An appliance distributor replaces a warrantied dishwasher free of charge within two days of a service call.
c. A needle on the gas gauge signals a driver pull into a service station.
d. The smell of hot dogs at a ballpark induces a dieting man to order “a dog with everything on it.”

 

 

ANS:  B                    PTS:   1                    DIF:    3                    REF:   150

OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. People are likely to buy products they believe will move them closer to their _____ self.
a. real
b. looking-glass
c. model
d. ideal

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   152

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

  1. In the area of self-concept theory, the real self is:
a. the way the individual views himself or herself.
b. the way the individual thinks other people see him or her.
c. the individual’s personal set of objectives to which he or she aspires.
d. an objective view of the total person.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   152

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The looking-glass self is defined as:
a. an objective view of oneself.
b. the way an individual thinks others see him or her.
c. the way an individual views himself or herself.
d. a personal view of how a person wants to be.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   152

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. High-involvement decisions typically involve _____ and _____ products.
a. inexpensive; rarely purchased
b. inexpensive; frequently purchased
c. expensive; relatively simple
d. expensive; complicated

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   152

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. All of the following are low-involvement decisions except:
a. buying a latte from Starbucks
b. trying a new brand of shampoo
c. moving a checking account to a new bank
d. deciding where to order take-out pizza

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   152

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

 

 

 

  1. Which of the following product purchases would most likely require a high-involvement decision?
a. Patio furniture
b. Magazine subscription
c. Car
d. Hair dryer

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   152

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Purchases that have a potentially high level of social or economic consequences are:
a. usually undertaken with relatively little investment of time and effort.
b. known as low-involvement decisions.
c. generally made alone without the involvement of others.
d. known as high-involvement purchase decisions.

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   152

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. During the search step of the consumer decision process, the consumer:
a. realizes it’s time to make a change from the present situation.
b. develops a set of evaluative criteria to guide the purchase decision.
c. begins to notice favorable word-of-mouth communication about the product.
d. gathers information about the attainment of a desired state of affairs.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   154

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The number of alternatives a consumer actually considers in making a purchase decision is referred to as:
a. the evoked set.
b. customer options.
c. evaluative criteria.
d. cognitive choices.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   154

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

 

 

  1. The product features that a consumer considers while choosing among alternatives is known as the:
a. appraisal standards.
b. evaluative criteria.
c. assessment parameters.
d. selection rules.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   154

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The evaluative criteria used by consumers in the decision making process may be:
a. set aside if the consumer finds a better means of making the purchase decision.
b. used to identify alternative brands for consideration and possible purchase.
c. invoked during the first stage of the decision process.
d. objective facts or subjective opinions about the alternatives.

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   154

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. One of the ways in which marketers can attempt to affect the outcome of the alternative evaluation stage of the consumer decision-making process is by:
a. trying to get consumers to expand their evoked sets to include their product.
b. attempting to convince consumers that a competing brand does not meet their criteria.
c. providing persuasive evidence about their products in a useful format.
d. helping consumers to identify potential problems or needs.

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   155

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Marketers can influence the outcome of the evaluation stage of the consumer purchase decision process by:
a. attempting to convince consumers that certain attributes are more important than others in deciding which product to buy from among an array of them.
b. identifying which evaluative criteria are important to the individual, and pointing out which brand best meets those criteria.
c. trying to get the customer to reduce the size of the evoked set to exclude many of the choices.
d. attempting to convince the consumer to spend more than was budgeted for the purchase to acquire more features they might prefer.

 

 

ANS:  B                    PTS:   1                    DIF:    3                    REF:   155

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

  1. Marketers can help e decision and purchase act phases of the consumer decision-making process by:
a. introducing new variables such as a price change.
b. helping customers arrange for financing and delivery.
c. explaining the difference between two product alternatives.
d. keeping out of the way as much as possible.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. When a consumer begins to feel dissatisfied with a product or service recently purchased, the anxiety they feel is called:
a. cognitive dissonance.
b. post purchase regret.
c. product reevaluation.
d. purchase rejection.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   156

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. At which stage of the consumer decision-making process might cognitive dissonance occur?
a. Search
b. Evaluation
c. Purchase decision and purchase act
d. Post purchase evaluation

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. The post purchase evaluation of the consumer decision process attempts to measure the:
a. selling success experienced by the vendor.
b. follow-up effectiveness of the firm.
c. consumer satisfaction with the purchase.
d. advertising influence on the purchase.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

 

 

  1. Cognitive dissonance:
a. is defined as pre-purchase anxiety and doubt.
b. is more likely to occur as the cost and complexity of the purchase increases.
c. is more likely to occur when there is a balance between attitudes, beliefs, and knowledge.
d. decreases if the product does not have the desired features.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Marketers can attempt to shape the outcome of the post purchase evaluation by:
a. helping consumers to identify potential problems or needs.
b. offering personal assistance with any problem experienced with the product.
c. attempting to convince consumers that a competing brand does not meet their criteria.
d. trying to get consumers to expand their evoked sets to include their product.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   156

OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Which of the following consumer problem-solving behaviors requires the least effort?
a. Extended problem solving
b. Limited problem solving
c. Routinized response behavior
d. Impulsive buying

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. The introduction of a new brand into an array of familiar brands for which a consumer has previously set evaluative criteria may create the need for:
a. limited problem solving.
b. extended problem solving.
c. comparison shopping.
d. brand evaluation.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

 

 

  1. When a product is unique or difficult to categorize, the thought process involved in a purchase decision is known as:
a. research analysis.
b. extensive analysis buying.
c. limited problem solving.
d. extended problem solving.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

MATCHING

 

Match each definition to the corresponding term.

 

a. evoked set j. attitude
b. consumer behavior k. learning
c. culture l. self concept
d. reference group m. high-involvement purchase decision
e. Asch phenomenon n. closure
f. opinion leader o. cognitive dissonance
g. need p. routinized response behavior
h. motive q. limited problem solving
i. perception r. neuromarketing

 

 

  1. Motivating the purchasing decision by eliciting either conscious or subconscious emotions is called  _____.

 

  1. The number of alternatives the consumer actually considers in the purchasing decision is the _____.

 

  1. A situation in which the consumer invests only a small amount of time and energy is called _____.

 

  1. _____ is the process through which the ultimate buyers makes purchasing decisions about a product or service.

 

  1. _____ is rapid consumer problem solving in which no new information is considered.

 

  1. A(n) _____ describes the values, beliefs, preferences and tastes handed down from one generation to the next.

 

  1. Imbalance between beliefs and attitudes that occurs after an action or decision is taken is called _____.

 

  1. People or an institution whose opinions are valued and to whom a person looks for guidance is called a(n) _____.

 

  1. A(n) _____ is one with high levels of potential social or economic consequences.

 

  1. The _____ describes the tendency of people to conform to majority rule.

 

  1. _____ is the human tendency to perceive a complete message given an incomplete amount of stimuli.

 

  1. A(n) _____ is a trendsetter who purchases new products before others in a group, and then influences others in their purchases.

 

  1. A person’s multifaceted picture of himself or herself is called _____.

 

  1. A(n) _____ is an imbalance between a consumer’s actual and desired states.

 

  1. _____ is knowledge or skill that is acquired as a result of experience.

 

  1. An inner state that directs a person toward the goal of satisfying a need is a(n) _____.

 

  1. _____ is the meaning that a person attributes to incoming stimuli.

 

  1. A person’s enduring favorable or unfavorable evaluation, emotion, or action toward some object or idea is a(n) _____.

 

  1. ANS:  R                    PTS:   1                    DIF:    1                    REF:   148

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  A                    PTS:   1                    DIF:    1                    REF:   154

OBJ:   5-4

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  Q                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  B                    PTS:   1                    DIF:    1                    REF:   134

OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  P                    PTS:   1                    DIF:    1                    REF:   157

OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  C                    PTS:   1                    DIF:    1                    REF:   135

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  O                    PTS:   1                    DIF:    1                    REF:   156

OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  D                    PTS:   1                    DIF:    1                    REF:   141

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  M                   PTS:   1                    DIF:    1                    REF:   159

OBJ:   5-4

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  E                    PTS:   1                    DIF:    1                    REF:   141

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  N                    PTS:   1                    DIF:    1                    REF:   147

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

 

 

 

  1. ANS:  F                    PTS:   1                    DIF:    1                    REF:   142

OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  L                    PTS:   1                    DIF:    1                    REF:   152

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  G                    PTS:   1                    DIF:    1                    REF:   145

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  K                    PTS:   1                    DIF:    1                    REF:   150

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  H                    PTS:   11                  DIF:    1                    REF:   145

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  I                     PTS:   1                    DIF:    1                    REF:   146

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. ANS:  J                     PTS:   1                    DIF:    1                    REF:   148

OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

ESSAY

 

  1. Define consumer behavior. Discuss the Lewin model and how it has been adapted for consumer behavior.

 

ANS:

Consumer behavior is the process through which the individual buyer makes purchase decisions. The Lewin model defines behavioral influences as a function of the interaction of personal influences and the pressures of the external environment, or B=f (P, E). Applied to consumer behavior, purchasing decisions are a function of individual influences (learning, attitudes, perception) interacting with interpersonal influences (culture, family, relationships, peers) or B=f (P, I).

 

PTS:   1                    DIF:    3                    REF:   134                OBJ:   5-1

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

  1. Discuss the classifications of consumer behavior influences.

 

ANS:

Consumer behavior can be classified into two categories, defined as personal and interpersonal influences. Personal influences include an individual’s attitudes, learning, and perceptions. Interpersonal influences include culture, family and peers.

 

PTS:   1                    DIF:    1                    REF:   134                OBJ:   5-1

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Discuss the three categories of interpersonal determinants of consumer behavior.

 

ANS:

a) Cultural influences: the complex of values, beliefs, preferences, and tastes handed down from one generation to another in a society. Included among these would be the subcultural influences of groups within the larger culture possessing their own unique modes of behavior.
b) Social influences: the effects of groups to which individuals belong or with whom they relate in some other fashion, either through aspiration or dissociation, and from which they acquire status and roles that have an influence on purchasing decisions.
c) Family influences: often with the strongest influence, this is the influence of household members on the purchase decision process.

 

 

PTS:   1                    DIF:    2                    REF:   135-144         OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. What is a subculture? Why should marketers pay attention to subcultures? Give some examples of subculture markets that companies might pursue.

 

ANS:

Cultures are not homogeneous entities with universal values. Each culture include numerous subcultures—groups with their own distinct modes of behavior. In the United States, the three major ethnic minorities, alone, are comprised of many different subcultures that provide marketers with many untapped market opportunities. By understanding the cultures and the subcultures within, marketers can target specific segments of the society that were previously not serviced. Because of the growing demographics of these groups and the purchasing power that they carry, companies will profit tremendously by meeting their needs. Companies in recent years have identified profit potentials marketing to preteens and teens, as well as Hispanic and Asian subcultures.

 

PTS:   1                    DIF:    3                    REF:   137-138         OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

  1. Describe the Asch phenomenon and discuss its relationship to the concept of reference groups.

 

ANS:

The Asch phenomenon is the tendency of individuals to conform to majority rule, even if that majority rule acts against the beliefs of the individual. Reference groups are groups whose value structures and standards influence a person’s behavior. Therefore, the Asch phenomenon may be stronger if the individual considers the majority a reference group.

 

PTS:   1                    DIF:    2                    REF:   141                OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Discuss the concept of social class, and name the six levels of class ranking. What variables are used to determine social class?

 

ANS:

Social class is the categorization of people based upon their income, education, occupation, family background, and place of residence. Occupations and incomes of working parents are usually the determining factor. The six categories are upper-upper class, lower-upper class, upper-middle, lower-middle class, working class and lower class. Buying behavior can be affected by the class that one aspires to reach. Marketers use this to their advantage by producing more affordable versions of high-end products. Upper-upper class consumers are lured with one-of-a-kind products and services.

 

PTS:   1                    DIF:    3                    REF:   142                OBJ:   5-2

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Who is an opinion leader? Why are they important to marketers, and how has the Internet affected the power of opinion leaders?

 

ANS:

Opinion leaders are usually the trendsetters of a group. They are willing to try products first and convey their experiences by word of mouth. Their testimonials set the tone for purchases by others in the group. Opinion leaders are usually experts, or at least have a strong interest in certain products. This interest motivates them to seek out information through advertising, the Internet, manufacturers, and other sources. With the advent of the Internet, opinion leaders quickly share information with other opinion leaders. The collective sum of information filters down to individuals and can even be used by the marketers in a more formal fashion to promote the product(s).

 

PTS:   1                    DIF:    2                    REF:   142-143         OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

 

 

  1. Marketers define the role of each spouse in terms of four categories. List the categories and provide an example of a purchase decision that traditionally falls into each category.

 

ANS:

Autonomic role: An equal number of decisions are made by spouses acting independently. Purchases of personal-care products fall into this category.

 

Husband-dominant: The husband ultimately makes the purchase decision. Life insurance and investments most often fall into this category.

 

Wife-dominant: The wife makes the purchase decisions. More often than not, these are the smaller consumer products for home and family including clothing, home accessories and furnishings.

 

Syncratic: Refers to joint decisions by spouses. Buying a home, automobile or other high-priced consumer products usually falls into this category.

 

PTS:   1                    DIF:    3                    REF:   143                OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Discuss the role of children and teenagers in the consumer marketplace. How are marketers targeting this market?

 

ANS:

Over the past few decades, the purchasing power of the huge market that children and teenagers represent has increased tremendously. Parents, especially in the Hispanic subculture, tend to spend more discretionary dollars on their children than past generations. Both children and teens have more purchasing say within the families – influencing everything from breakfast cereals to electronics purchases. Marketers recognize this and build youth-oriented messages into the general advertising campaign. Use of celebrity endorsements has risen as children are more likely to want a product that a celebrity endorses. While just as influenced as children, teens add the element of individualism to the marketing dynamics. They want to belong to the group, but somehow stand out. Hence, marketers are finding creative ways to allow them to customize or personalize products.

 

PTS:   1                    DIF:    3                    REF:   144                OBJ:   5-2

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Explain the difference between a need and a motive. Provide examples of each.

 

ANS:

A need is an imbalance between a consumer’s actual and desired states. An example of a need would be an individual purchasing an umbrella to use while walking from the commuter train to the office. A motive is an inner state that directs a person toward the goal of satisfying a need. Staying dry would be the motive for an individual to purchase the umbrella.

 

PTS:   1                    DIF:    1                    REF:   145                OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

  1. Discuss Maslow’s hierarchy of needs, and list a product that can be promoted to fulfill each need. What is the primary criticism of this theory?

 

ANS:

Maslow developed a hierarchy with different levels of needs. A person must at least partially satisfy lower-level needs, according to Maslow, before higher needs can affect behavior. The five levels of needs are physiological needs, safety needs, social/belongingness needs, esteem needs and self-actualization needs. Some products that can fill needs include exercise equipment (physiological), baby gates (safety), designer jeans (belongingness), luxury automobile (esteem) and participation in a charity event (self-actualization).

 

Although Maslow pointed out that individuals can get stuck at certain levels, his critics discovered that some individuals can actually skip levels.

 

PTS:   1                    DIF:    3                    REF:   145-146         OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. What is perception?

 

ANS:

Perception is the meaning that a person attributes to incoming stimuli gathered through the five senses of sight, hearing, touch, taste, and smell(called the stimulus factors), and the individual factors that includes experiences, motivations and expectations.

 

PTS:   1                    DIF:    1                    REF:   146                OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. What are perceptual screens? Explain ways in which marketers can overcome these screens.

 

ANS:

Since consumers are bombarded with marketing messages, many pay attention to only those messages that manage to break through their perceptual screens – the mental filtering processes through which all inputs must pass.

 

Marketers must determine which stimuli evoke responses from consumers, and then create a message that will stand out and gain the attention of prospective customers. Some evidence indicates that consumers respond best to large ads. Color and contrast in advertising are also important stimuli. The concept of closure – the human tendency to perceive a complete picture from an incomplete stimulus – can help marketers create a message that stands out. Testimonials from opinion leaders and other experienced purchasers can open individuals to new products.

 

PTS:   1                    DIF:    3                    REF:   147-148         OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

  1. Discuss the three components of attitude and how marketers can change attitudes.

 

ANS:

The three components of attitude are cognitive, affective and behavioral. The cognitive component refers to the individual’s information and knowledge about an object or concept. It may be changed by introducing new information to the consumer. The affective component deals with feelings or emotional reactions. It may be changed by appealing to a consumer’s emotions (especially powerful emotions, such as fear and love). The behavioral component involves tendencies to act in a certain manner. It is the tendency to act a certain way. Marketers can use incentives such as coupons, samples, or rebates to alter consumer behavior and change consumer attitudes.

 

PTS:   1                    DIF:    2                    REF:   149                OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. As a marketing research intern for a personal-care products company, you are asked to present information on the learning process to the marketing department. Discuss the elements of learning you would include in your presentation. What advice would you give your peers about shaping?

 

ANS:

Learning, as used in marketing, refers to the immediate or expected changes in consumer behavior as a result of experience. The learning process includes drive, or the stimulus that impels action. It relies on cues, which are any objects in the environment that determines the nature of the response to a drive, and finally the response – the individuals’s reaction to the cues and the drive. After the response is made, there is reinforcement. This post purchase variable is the reduction in drive that results from a proper response. The stronger the reinforcement, the more likely the consumer will recreate the response, or purchase, in the future. Through the creation of a series of reward and reinforcement scenarios for positive purchasing decisions, a consumer will be shaped. Ultimately, shaping creates a brand-loyal customer.

 

PTS:   1                    DIF:    3                    REF:   151                OBJ:   5-3

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Discuss the four components of self-concept and explain how marketers can utilize this information.

 

ANS:

Self-concept refers to the way a person thinks about himself/herself, and is comprised of the following four components:

a) Real self – an objective view of the total person.
b) Self-image – the way a person sees himself/herself.
c) Looking-glass self – the way an individual thinks others see him/her
d) Ideal self – the view to which an individual aspires; this represents what individuals want to be, and can be used by marketers to convince consumers that buying certain products or services will move them closer to their ideal self-images.

 

 

PTS:   1                    DIF:    2                    REF:   152                OBJ:   5-3

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

 

  1. Explain the difference between a high-involvement purchase decision and a low-involvement purchase decision. Give an example of each and explain your classifications.

 

ANS:

A high-involvement purchase decision is one with potentially large social or economic consequences. A low-involvement purchase decision is more of a routine decision that involves little risk. An example of a high-involvement purchase decision would be the decision to purchase a new car (an expensive purchase that is often financed over several years). An example of a low-involvement decision would be buying toothpaste (an inexpensive product that is purchased frequently). Making a mistake while buying a car has much greater economic consequences than buying the wrong toothpaste.

 

PTS:   1                    DIF:    3                    REF:   152-153         OBJ:   5-4

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. List and describe the steps in the consumer decision process.

 

ANS:

The steps in the consumer decision process include:

 

a) Problem recognition – the consumer becomes aware of a significant discrepancy between the existing state of affairs and a desired state of affairs.
b) Search – gathers information related to attaining the desired state of affairs.
c) Evaluation of alternatives – evaluating alternatives identified in the search process.
d) Purchase decision and purchase act – narrowing the alternatives down to one.
e) Post purchase evaluation – eliminating dissonance, if needed.

 

 

PTS:   1                    DIF:    2                    REF:   153                OBJ:   5-5

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. What are evaluative criteria? What are some of the evaluative criteria a consumer might use while searching for an apartment?

 

ANS:

Evaluative criteria are the features that a consumer considers in choosing among alternatives. For many consumers, while shopping for an apartment, some of the evaluative criteria would be monthly rent, location, type of unit, number of bedrooms and availability of parking.

 

PTS:   1                    DIF:    2                    REF:   154                OBJ:   5-5

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

 

 

 

 

  1. Define cognitive dissonance. How can marketers manage a consumer’s cognitive dissonance?

 

ANS:

Cognitive dissonance is the anxiety that results from an imbalance between a person’s attitudes, beliefs and knowledge. Dissonance tends to occur more with high-involvement and higher-priced products, especially when the alternatives would have proven to be a better choice. Marketers can eliminate dissonance by providing information to support the product, either written or through customer service. Courtesy phone calls as follow-up are examples of one-to-one marketing to ensure customer satisfaction. Marketers can also capitalize on the failure of competitors to satisfy consumers with previous sales by enticing the consumer to switch products, thus increasing consumer satisfaction.

 

PTS:   1                    DIF:    2                    REF:   156                OBJ:   5-6

NAT:  AACSB Analytic | CB&E Model Customer | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Describe the three categories of problem solving behavior and provide an example for each.

 

ANS:

The three categories of problem solving behavior are:

a) Routinized response behavior – Consumers purchase items by choosing a preferred brand or from a limited group of acceptable brands. Purchasing shampoo is an example.
b) Limited problem solving – Consumers set evaluative criteria but encounter a new, unknown brand. Alternatively, an old choice changes, requiring re-evaluation. An example would be the introduction of a new flavor to the Coffeemate non-dairy cream line.
c) Extended problem solving – Consumers encounter brands that are new to them or are difficult to categorize or evaluate. The number of choices and the speed at which new technologies are being introduced cause consumers shopping for televisions to spend a large amount of time deciding on which format would best meet their needs.

 

 

PTS:   1                    DIF:    3                    REF:   157                OBJ:   5-6

NAT:  AACSB Reflective Thinking | CB&E Model Customer | R&D Knowledge of human behavior & society           TYP:              AP

 

 

Chapter 11—Product and Service Strategies

 

TRUE/FALSE

 

  1. The marketing mix is the blend of four elements of a marketing strategy, that is, product, price, distribution, and promotion, that a firm develops to satisfy a chosen target market.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A product is simply a physical item designed to satisfy a customer’s wants and needs.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. While a consumer views a product as a want satisfier, a marketer sees the product as combination of elements that give value to a consumer.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A college education is a product.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   344

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The broad view of product recognizes that consumers buy satisfaction, not just a thing they can hold in their hands.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Because they do not have physical features that buyers can see, hear, smell, taste, or touch prior to purchase, services are said to be intangible.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The goods-services continuum is defined as a product that requires continued interaction with the manufacturer for services that might include maintenance, upgrades, servicing, and repair. Examples of this type of relationship include cars and auto dealerships, or software and technical support.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. One way to distinguish a good from a service is that a service is inseparable from the service provider.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. A local gas station has installed a new food and beverage mart. Since this represents a service outside the gas station’s primary business, it falls outside the broad view of product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. On the goods-services continuum, a meal at a fine restaurant is considered a pure good, even when one considers that excellent service is part of what one values in the experience.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A goods-services continuum is a method for visualizing the differences and similarities between goods and services.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Hair styling is a pure service.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

  1. Internet security software that requires periodic updates and annual product upgrades is considered a pure service on the products-services continuum.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Marketers are realizing that, although the practice can be difficult, it is possible to maintain inventories of services by careful storage and cataloging.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Consumer perceptions of a service do not reflect their perceptions of the service provider itself.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Services are perishable and cannot be stockpiled or inventoried.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Services are less diverse than pure products.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Customers at IHOP expect almost the same service as expected at Spago’s in Beverly Hills because of the narrow variation found in service quality.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

  1. Hotels often use the same room decor and dining menu at all their locations in an attempt to standardize the services they offer.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Service transactions seldom require interaction between buyer and seller at the production and distribution stages.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The service sector of the U.S. economy is only one-third as large as the manufacturing sector.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Although the United States runs a continuing trade deficit in goods, it has maintained a trade surplus in services since 1992.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Trade surpluses in the service sector can potentially be affected by offshoring of customer service and technical support operations to places like India.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model International Perspective | R&D Managing strategy & innovation     TYP:    KN

 

  1. The service industries showing the most growth potential are wireless communications, data backup and storage, and meal preparation.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. Homeshoring is the process of returning jobs to the United States after attempts to offshore have proven ineffective or costly.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Increased competition has forced traditional service industries to de-emphasize the marketing mix and focus on superior customer service in order to compete effectively in the marketplace.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Competitive advantages are not possible in the service sector, so service providers must find other ways to differentiate themselves.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Product strategies are essentially the same for consumer and business markets.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   348

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The classification system for business products emphasizes buying behavior rather than product uses.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   348

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Consumer products are classified as convenience, shopping, specialty, and unsought.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Impulse purchase items are marketed to consumers who may not yet recognize a need for them.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Examples of impulse goods and services include stopping at a car wash on the way home, or buying a pack of gum while standing in the checkout line.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. In terms of planning time involved in a purchase, convenience and specialty products take very little time, while shopping products take an extensive amount of time.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   349-351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Emergency goods are purchased after careful reflection on whether they are really needed.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A product a customer keeps on hand and replenishes when the product runs out is called a staple.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Two of the most important variables in the purchase of a convenience product is the location of the store, and the location of the product within the store.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349-350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Shopping products can be a good or service. In either case, the purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. Homogeneous products can be easily differentiated, often using obvious characteristics such as style, color, and fit.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Drexel Furniture Company aggressively markets its bedroom and kitchen furniture. Since these products are well-known, the price is likely to be the only factor on which consumers will base their decisions.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Some specialty product companies intentionally limit the range of retailers that carry their products in order to add to their cachet.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Service companies can provide the same service to both businesses and consumers.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A hair salon is considered a people-based business, while a company that cleans air ducts is considered equipment-based.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A decision by Kawasaki Motors to build an automobile assembly plant in India but employ only Japanese production workers on the assembly line would not be considered an installation because the employees making the product are not natives of India.

 

ANS:  F                    PTS:   1                    DIF:    3                    REF:   352

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. Representatives who sell installations to the business market often provide technical expertise along with tangible goods.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Price typically does not dominate purchase decisions for installations in the business market. The purchasing firm buys such products on the basis of efficiency and performance.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. If a company that is marketing installations to the business market uses advertising at all, it emphasizes the company’s reputation and directs potential buyers to contact local sales representatives.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Accessory equipment for the business market includes such products as hand tools, portable drills, and laptop computers.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Advertising is seldom an important component in the marketing mix for accessory equipment products.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Component parts and materials are unfinished industrial products from one producer that eventually become part of the finished product of another producer.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. When the Big Bottle Brewing purchases barley malt and hops, it is assured of standardized raw materials of uniform quality due to the fact that most raw materials are graded prior to sale.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. MRO items, although relatively standardized, are rarely subject to heavy price competition.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The buying and selling of business services is such a specialized activity that it seldom involves alliances among different types of firms.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   356

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Total Quality Management (TQM) improves quality primarily by using end-of-the-line inspections to identify products that don’t meet specifications.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The Malcolm Baldrige National Quality Award is the highest national recognition for quality that a U.S. company can receive.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. The ISO 9002 standards were developed in Asia to assist businesses in selecting suppliers who have met certain specifications for quality.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking seeks to identify how business leaders recognize superior marketing performance in their industries and develop a system for continuously comparing and measuring performance against outstanding performers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The purpose of benchmarking is to achieve the minimum acceptable performance for releasing a product into the marketplace.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The three main activities in benchmarking are identifying processes that need improvement, comparing internal processes against similar activities of industry leaders, and implementing changes to improve quality.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The first step in the benchmarking process is to identify the world’s best performers.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking requires two types of analyses: strategic and tactical.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. The service encounter is the point at which the consumer interacts with the service provider.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The expected and perceived quality of a service offering has little effect on the competitiveness of a company.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. SUVs produced by Toyota, Ford, and Chrysler constitute a single product line.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Towels and sheets marketed under the Martha Stewart name can be considered a linens product line.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Companies with one product line have unlimited growth potential.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. L. L. Bean’s offering of a product line of “outdoor activity products” that include everything from boots to sleeping bags exemplifies their belief in the degree of relationship among those products existing in the mind of the consumer.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   361

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Extending a product line allows a firm to maximize sales opportunities without being limited by its resources.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The product mix is the assortment of product lines and individual product offerings that a company sells.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Marketers typically define product mixes using concepts of size, number, and price.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The length of a product mix refers to the number of different products a firm sells.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Depth of product mix refers to the variations of each product that a firm includes in its mix.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Proctor & Gamble manufactures laundry detergents under the brand names of Tide, Cheer, and Gain. These brands represent the depth of the product line.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Product line extension refers to the development of items to be included in a product line that are similar to existing items and are intended as substitutes for them.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Hershey’s introduction of a sugar-free version of its candy bar is an example of line extension.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. During the initial stage of the product life cycle, firms work to stimulate demand for the new market entry.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Technical problems are common during the introductory stage of the product life cycle as companies fine tune product design.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Word-of-mouth reports and mass advertising have very little effect on hesitant buyers making an initial product purchase during the growth stage of the product life cycle.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. To compete effectively during the growth stage of a product’s life cycle, firms should not make changes or improvements to the product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. During the maturity stage of the product life cycle, firms can increase their sales and market shares only at the expense of their competitors.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the maturity stage of the product life cycle, the industry sales curve for a product reaches a minimum point as the competitors exhaust the supply of potential customers.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the decline stage of the product life cycle, the preferred marketing strategy is to increase prices to ensure profitability.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Actions taken by marketers early in the introductory stage of the product life cycle can extend the product life cycle indefinitely.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use as a metal cleaner, the manufacturer is attempting to extend the product’s life by increasing its frequency of use.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   366-367

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Progresso Foods has introduced single-serving cans of soup for one-person households. By offering the traditional product in a smaller package to reach a new target market, the company hopes to extend the life cycle of its product offering.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   367

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. The decision about whether to delete products from the product line is usually faced during the late growth and early maturity phases of the product life cycle.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A firm may decide to carry an unprofitable item in its product mix in order to provide a complete line for its customers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Occasionally, shortages of raw materials prompt firms to discontinue production and marketing of formerly profitable products.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Marketers never drop profitable items from their product lines, even when those items really don’t fit into the existing product line.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Orphan brands are products that are purchased from companies that go out of business.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

MULTIPLE CHOICE

 

  1. Using the broad application of the word “product,” a television set is a(n):
a. obsolete technology in comparison with the Internet.
b. means of providing entertainment.
c. lucrative item for appliance stores.
d. machine used to receive broadcast signals.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   342-345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A product is:
a. the physical attributes of something one can buy.
b. whatever the seller says it is.
c. a bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs.
d. a thing that’s impossible to define, since everyone sees it differently.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Which of the following comes closest to providing a pure good?
a. A company that manufactures and installs elevators
b. A cleaning service
c. A data storage company
d. An advertising agency

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Which of the following companies is a pure service firm?
a. Wal-Mart
b. Microsoft
c. Starbucks
d. Delta Airlines

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   345-346

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. All of the following industries belong to the service sector except:
a. investment banking.
b. retailing.
c. agriculture.
d. health care.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345-346

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

 

 

  1. Distinguishing services from goods, all of the following statements are correct except:
a. services are intangible.
b. services are inseparable from service providers.
c. services are easy to standardize.
d. services are perishable.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345-346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Motel 6 and the Ritz-Carlton both provide sleeping accommodations, but their respective guests have considerably different expectations of service. This is because:
a. companies cannot standardize services.
b. services are inseparable from their providers.
c. service quality shows wide variations.
d. services have a high perishable rate.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Products marketed to consumers who may not yet recognize a need for them are _____ products.
a. unsought
b. consumer
c. convenience
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-3               NAT:  AACSB Analytic | CB&E Model Product | R&D Foundational skills

TYP:   KN

 

  1. Which of the following products are, for most consumers, unsought?
a. Designer clothes
b. Magazines
c. Long-term insurance
d. Furniture

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

 

  1. Consumer goods such as milk, bread, and soft drinks are generally classified as _____ products.
a. convenience
b. utilitarian
c. shopping
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Supermarkets usually display items such as candy, gum, and magazines near the checkout counter because they are:
a. purchased on impulse.
b. easier to replenish.
c. subject to shoplifting.
d. purchased infrequently.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A consumer expects to purchase convenience products:
a. without having full knowledge about what is sought.
b. immediately and with minimal effort.
c. after visiting numerous stores and comparing prices.
d. by traveling any distance required to get what is wanted.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following products relies least on personal selling?
a. Specialty products
b. Shopping products
c. Unsought products
d. Convenience products

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

  1. After researching and comparing several types of alarm clocks, Trisha decided on one that gives a choice of being wakened to music, bird calls, or ocean waves. In this case, the alarm clock would be classified as a(n) _____ product.
a. shopping
b. impulse
c. convenience
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Which of the following products typically has the longest distribution channel length?
a. Convenience products.
b. Staples
c. Specialty products
d. Shopping products

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Convenience products that customers constantly replenish to maintain a ready inventory may be categorized as:
a. staples.
b. impulse items.
c. emergency items.
d. specialty items.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following products would generally be classified as a staple?
a. Plumbing repair kit
b. Personal computer
c. Gasoline
d. Newspaper

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

 

 

  1. Consumer shopping products typically include items such as:
a. Coca-Cola and Snapple Iced Tea.
b. bread, milk, and gasoline.
c. clothing, furniture, and appliances.
d. Rolex watches and BMW automobiles.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Of the following, which would most likely have the greatest influence on a decision to buy a heterogeneous shopping product?
a. Product’s style
b. Store’s name and reputation
c. Location of the store
d. Price and perceived value of the product

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. While in Best Buy, a customer takes a great deal of time comparing the quality, features, and prices of a number of refrigerators. What type of products is this customer examining?
a. Homogenized shopping products
b. Convenience products
c. Homogeneous shopping products
d. Heterogeneous specialty products

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Ryan is looking for a professional watch that he buys, at most, once every few years. Since he doesn’t favor a particular brand, he spends a great deal of time comparing price and quality, as well as visiting the few retail outlets that sell high-end watches. Which type of product is Ryan about to purchase?
a. Unsought
b. Specialty
c. Convenience
d. Shopping

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

  1. Which of the following correctly matches consumer factors and marketing mix factors in the consumer products classification system?
a. Specialty products – personal selling is not important
b. Convenience products – consumer makes infrequent purchases of these products
c. Shopping products – relatively short channel of distribution is typical
d. Emergency products – these are unsought products

 

 

ANS:  C                    PTS:   1                    DIF:    3                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Consumers who are well aware of the brands they prefer and are willing to make a special effort to obtain them are primarily interested in _____ products.
a. impulse
b. convenience
c. shopping
d. specialty

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Financial, legal, and medical services constitute:
a. convenience services.
b. shopping goods.
c. specialty services.
d. customized services.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Which of the following products relies least on location of purchasing opportunity?
a. Specialty products
b. Shopping products
c. Unsought products
d. Convenience products

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

  1. Business products would ordinarily include all of the following except:
a. installations.
b. accessory equipment.
c. specialty products.
d. component parts.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following business products would be classified as an installation?
a. Jet engines
b. Office furniture
c. Copy paper
d. Regional shopping center

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   353

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. _____ are business products most similar to consumer specialty products.
a. Installations
b. Accessory equipment
c. Raw materials
d. Component parts and materials

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   353

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In the business market, the purchasing firm buys installations:
a. from the vendor who offers it at the lowest price.
b. to be as generally useful instead of having a specific purpose.
c. for efficiency and performance over their useful life.
d. as quickly as possible without extensive negotiations.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   353-354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

  1. Sandra is working on a purchase decision for her company. The product under consideration is expensive, has a short distribution channel, and isn’t purchased frequently. In addition, Sandra is working closely with a seller’s marketing representative. Which type of product is Sandra’s company considering purchasing?
a. Accessory equipment
b. Installations
c. Component parts and materials
d. Supplies

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   353-354

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Products that are considered capital investments but whose useful lives are generally much shorter than those of installations are known as:
a. accessory equipment.
b. operating supplies.
c. component parts.
d. business services.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   354-355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A basic characteristic of accessory equipment in the business market is that it is:
a. purchased by groups involving a large number of decision makers.
b. not considered a capital item.
c. a capital item with a shorter useful life than an installation.
d. a convenience product of the industrial market.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Wholesalers called industrial distributors are major vendors of:
a. standardized products of uniform quality that are made on a contractual basis.
b. MRO items.
c. installations for the industrial market.
d. accessory equipment for the business market.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. Industrial distributors are more often found selling:
a. accessory equipment.
b. business services.
c. raw materials.
d. installations.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Spark plugs, batteries, and tires that are included with the purchase of a car are examples of:
a. installations.
b. accessory equipment.
c. component parts and materials.
d. supplies.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The business market needs a regular, continuous supply of finished products of uniform quality as:
a. raw materials.
b. accessory equipment.
c. maintenance items.
d. component parts and materials.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Raw materials resemble component parts and materials in that they are:
a. considered capital investments to be held for several years.
b. part of the buyers’ final products.
c. finished products before they enter into the production of other products.
d. expended without finding their way into finished goods.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

  1. Business products classified as raw materials are:
a. price-sensitive items.
b. specialty products for the industrial market.
c. either farm products or natural products.
d. MRO items.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. All of the following are raw materials except:
a. coal.
b. copper.
c. iron ore.
d. steel.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In the business market, fax paper, pencils, and office stationery are examples of:
a. maintenance items.
b. repair items.
c. operating supplies.
d. accessory equipment.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. When a company institutes a continuous effort to improve products and work processes, they are practicing:
a. total quality management.
b. benchmarking.
c. ISO 9002 certification.
d. process improvement.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

  1. Which of the following is the first main activity involved in benchmarking?
a. Identifying the world’s leading performers
b. Identifying internal processes to be improved
c. Identifying how the best goods are produced
d. Identifying critical market segments

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking seeks to achieve superior performance that results in a competitive advantage in the marketplace by all of the following except:
a. continuously repeating the process to search for and identify areas that need improvement.
b. comparing internal processes with similar processes of industry leaders.
c. identifying processes that need improvement.
d. producing more product output at a lower cost-per-unit.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   357-358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting?
a. Assurance
b. Responsiveness
c. Empathy
d. Reliability

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Tina is a customer service representative for an Internet service provider. While dealing with elderly customers, Tina takes extra time and effort in explaining to them how to access the Internet and check e-mails.She understands their point of view, and realizes that they may need more explaination than the tech savvy younger generation . Which service quality variable is Tina exhibiting?
a. Assurance
b. Responsiveness
c. Empathy
d. Reliability

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. ABC Airlines emphasizes a lot on their crew uniform and the presentable look of their infrastructure. By doing this which service quality variable is ABC Airlines exhibiting?
a. Assurance
b. Responsiveness
c. Tangibles
d. Empathy

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Domino’s has been very consistent in terms of their offerings across their outlets as well as their 24 hours home service which is “within 30 minutes or free.” By offering such a dependable service, they have been exhibiting:
a. reliabllity.
b. responsiveness.
c. empathy.
d. tangibles.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A product _____ is a series of related products offered by one company.
a. assortment
b. mix
c. line
d. formula

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   359

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Which of the following is a single product line?
a. Four-door sedans offered by various automakers
b. 125 passenger jets manufactured by Airbus and Boeing
c. Hershey Kisses in a variety of flavors including almond, dark chocolate, and caramel
d. Different brands of toothpaste

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

  1. In a process called _____, products pass through a series of stages from their initial appearance to their decline.
a. product life potential
b. promotional cycle
c. pricing cycle
d. product life cycle

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The combination of product lines represents a company’s product:
a. mix.
b. cluster.
c. lifecycle.
d. concept.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. If Honda were to acquire a bicycle manufacturer, it would add to the _____ of Honda’s product mix.
a. depth
b. width
c. length
d. cluster

 

 

ANS:  B                    PTS:   1                    DIF:    3                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The number of product lines a firm offers is referred to as:
a. depth.
b. width.
c. clusters.
d. length.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

  1. Adding individual offerings that appeal to different market segments is known as a product:
a. mix.
b. line.
c. line extension.
d. line depth.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Johnson & Johnson manufactures more than 100 brands in nearly 50 product categories. The total number of products they manufacture is called the product:
a. line extension.
b. cluster map.
c. mix length.
d. life cycle expectancy.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A firm’s marketing strategy should emphasize stimulating initial demand during the _____ stage of the product life cycle.
a. introduction
b. stabilization
c. growth
d. maturity

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Strategic & systems skills

TYP:   KN

 

  1. Potential customers are unaware of a product when in its introductory stage, therefore promotion in this stage concentrates on:
a. informing the market about the item and explaining its features, uses, and benefits.
b. reducing the size of the available market through selective advertising.
c. test marketing.
d. communicating new uses for the product.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

  1. During the introductory stage of the product life cycle:
a. competitors rush into the market with offerings similar to those of the innovator.
b. technical problems are common as companies fine-tune product design.
c. heavy promotional outlays emphasize differences that exist between products.
d. profits for the product category decline, sometimes actually becoming negative.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In which stage of the product life cycle do profits become more substantial?
a. Decline stage
b. Introductory stage
c. Growth stage
d. Maturity stage

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A characteristic of the growth stage of the product life cycle is that:
a. low prices are established.
b. effective competitors improve and modify their products.
c. early buyers of the product make their initial purchases.
d. buyers are hesitant to make repurchases.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Widgets were introduced a few years ago. The number of companies making widgets has increased recently, drawn by high profits. At the same time, differentiated products for different market segments have begun to emerge. Widgets appear to be in the _____ stage of the product life cycle.
a. growth
b. introductory
c. maturity
d. decline

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Competition between brands intensifies during which stage of the product life cycle?
a. Maturity stage
b. Introductory stage
c. Growth stage
d. Diminishing demand period

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Product differentiation and heavy advertising most often occur during the _____ stage of the product life cycle.
a. maturity
b. introductory
c. growth
d. decline

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the maturity stage of the product life cycle:
a. sales volumes rise rapidly as new customers make initial purchases and earlier purchasers buy again.
b. some firms try to differentiate their products on the basis of quality, reliability, and service.
c. financial losses are common as firms incur heavy promotion costs.
d. innovations or shifts in consumer preferences bring about a decline in industry sales.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Greta has been analyzing the competitive standing of one of her products. Since Greta’s product was introduced, 20 similar products have appeared, forcing her to change distribution strategies. Greta has also needed to change pricing strategies in order to remain competitive. Sales volume has dipped, and she suspects sales of her product have reached a saturation level. At what stage of the product life cycle is the product?
a. Introductory
b. Growth
c. Maturity
d. Decline

 

 

ANS:  C                    PTS:   1                    DIF:    3                    REF:   365

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

  1. A viable marketing strategy would be to promote the differences that separate competing products during the _____ stage of the product life cycle.
a. introduction
b. stabilization
c. growth
d. maturity

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A characteristic of the decline stage of the product life cycle is that:
a. profits decline and may even be negative.
b. distribution is increased.
c. available products exceed demand for the first time.
d. selective demand is cultivated.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Genuine Products has been involved in intensive price competition with another company. Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item. This product appears to have reached the _____ stage of the product life cycle.
a. introductory
b. maturity
c. decline
d. growth

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Fashions with abbreviated life cycles are called:
a. trends.
b. perishables.
c. fads.
d. staples.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

  1. Advertising that warns consumers about the dangers of overexposure to the sun, even during winter months, is an attempt by marketers of sunscreen to:
a. raise awareness of skin cancer.
b. find new uses for the product.
c. change product quality.
d. increase the frequency of use.

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   366

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. In the late 1990s, Las Vegas witnessed a growth in the number of newly built casinos targeting the family vacation market. Advertising their facilities to families was an attempt to:
a. fill a high vacancy rate.
b. increase the number of users.
c. sell tickets to family shows.
d. enhance the city’s image.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   366

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

MATCHING

 

Match each item with the correct statement below.

 

a. marketing mix h. product mix
b. benchmarking i. unsought product
c. product j. maturity stage
d. convenience product k. raw materials
e. shopping product l. total quality management
f. specialty product m. product life cycle
g. product line n. installations

 

 

  1. _____ is a continuous effort to improve products and work processes.

 

  1. The _____ is the blending of the four strategy elements to fit the needs and preferences of a target market.

 

  1. Farm products and mineral products are examples of _____.

 

  1. Firms often rely on _____ to set performance standards and achieve superior performance resulting in a competitive advantage in the marketplace.

 

  1. Sales of a product category continue to grow during the early part of the _____, but eventually reach a plateau as the backlog of potential customers dwindles.

 

  1. A bundle of physical, service, and symbolic attributes is a(n) _____.

 

  1. A product that is purchased frequently, immediately, and with minimal effort is classified as a(n) _____.

 

  1. A(n) _____ is marketed to consumers who may not yet recognize the need for it.

 

  1. A product that a consumer purchases after comparing competing offerings is called a(n) _____.

 

  1. Assortment of product offerings sold by a firm is called the _____.

 

  1. A(n) _____ offers unique characteristics that cause buyers to prize those particular brands.

 

  1. A series of related products offered by one company is a(n) _____.

 

  1. The specialty products of the business market are called _____.

 

  1. The four stages that a product will progress through is called the _____.

 

  1. ANS:  L                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  A                    PTS:   1                    DIF:    1                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  K                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  B                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  J                     PTS:   1                    DIF:    1                    REF:   365

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  C                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  D                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  I                     PTS:   1                    DIF:    1                    REF:   361-362

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  E                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  H                    PTS:   1                    DIF:    1                    REF:   359

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  F                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  G                    PTS:   1                    DIF:    1                    REF:   364-365

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  N                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  M                   PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

ESSAY

 

  1. List the six factors that distinguish services from goods.

 

ANS:

1. Services are intangible.
2. Services are inseparable from providers.
3. Services are perishable.
4. It is difficult for firms to standardize services.
5. Buyers often play important roles in the creation and distribution of services.
6. Service quality shows wide variations.

 

 

PTS:   1                    DIF:    2                    REF:   345-346         OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. What are the three categories of convenience products? Give examples of each type.

 

ANS:

The three categories of convenience products are impulse goods and services (magazines and candy at the checkout aisle), staples (toiletries, detergents, milk, bread, and gasoline), and emergency goods and services (first-aid kit, snow blowers, and bottled water).

 

PTS:   1                    DIF:    2                    REF:   349-350         OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

 

 

 

  1. List and describe the categories of consumer products. How does this grouping influence the method in which the products are marketed?

 

ANS:

The most commonly used classification of consumer products divides products into three groups. Products consumers wish to purchase frequently, immediately, and with minimal effort are called convenience products. Products which are purchased after comparisons of product alternatives are made, based on factors such as price, style, and color, are called shopping products. Finally, products possessing some unique characteristics that cause consumers to prize a particular brand and to exert considerable effort to obtain that brand are called specialty products.

 

Knowing the group in which a product belongs to helps describe the behavior of consumers with regard to purchase planning time, frequency, willingness to shop, and whether or not there is a connection between the product price and perceived quality. Further, marketing mix decisions concerning price, promotion, and distribution are made easier. For example, the prices of convenience products are generally low, while prices for shopping and specialty goods are relatively higher. Also, the distribution channel length for convenience products is usually long, while the channel for shopping and specialty goods is shorter.

 

PTS:   1                    DIF:    3                    REF:   349-351         OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Discuss the characteristics of shopping products. What are homogeneous and heterogeneous products?

 

ANS:

Shopping products are products that the consumer lacks complete information about prior to the purchase, but gathers needed information during the buying process. The competitive offerings of shopping products are compared. Products that consumers consider to be very similar are considered homogeneous, and price and value are usually the prime consideration in the purchase. Heterogeneous products have perceived differences, and a purchase may be based on any number of variables including quality, appeal, uniqueness, color, and style.

 

PTS:   1                    DIF:    2                    REF:   350                OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. List five questions that classify consumer services.

 

ANS:

1. What is the nature of the service?
2. What type of relationship does the service organization have with its customers?
3. How much flexibility is there for customization and judgment on the part of the service provider?
4. Do demand and supply for the service fluctuate?
5. How is the service delivered?

 

 

PTS:   1                    DIF:    2                    REF:   351-352         OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Discuss two challenges presented by the consumer product classification system.

 

ANS:

First, the consumer product classification system assumes that all products fit neatly into one category. Many products share characteristics of more than one category. The purchase of an automobile, for example, has characteristics of both a shopping and specialty product. For some consumers, it may be more of a shopping product, while for others it may be more of a specialty product. Second, consumers differ in their buying patterns. For instance, one person may make an emergency visit to a dentist because of a toothache, while another may extensively compare prices, office hours, and other factors before selecting a dentist.

 

PTS:   1                    DIF:    3                    REF:   352                OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. What are the major types of business products? What is the basis for this classification?

 

ANS:

Business products are classified on the basis of product uses rather than on the customer buying behavior. The five categories of business products are installations, accessory equipment, component parts and materials, raw materials, and supplies.

1.Installations are the speciality products of the business market,such as new factories,heavy equipment and telecommunication systems.

2.Accessory equipment are capital items that are typically less expensive and shorter lived than installations, such as hand tools, portable drills, and laptop computers.

3.Component parts and materials are finished business products that actually become part of the final product.

4.Raw materials are similar to component parts and materials in that they are used in producing the final product. They are farm and natural products such as eggs, coal, lumber and meat.

5.Suppliers are regular expense items that are necessary in the firms daily operation but are not part of the final product.

 

PTS:   1                    DIF:    1                    REF:   353-355         OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. What is Total Quality Management (TQM)? Discuss the standards the United States and Europe have established in the quality management movement.

 

ANS:

a) Total Quality Management (TQM) is a firm’s expectation that employees continually improve products and work processes with the goal of achieving customer satisfaction and world-class performance.
b) The United States has established the Malcolm Bainbridge Award for excellence in quality management.
c) The European Union has developed ISO 9002 standards, which set international standards for quality management and assurance. These standards are designed to ensure consistent quality among products manufactured and sold throughout the nations of the European Union. Firms outside the European Union, fearing exclusion from this market, have moved quickly to meet the ISO 9002 standards.

 

 

PTS:   1                    DIF:    3                    REF:   357                OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Define benchmarking and discuss how it helps to improve a marketing strategy.

 

ANS:

Benchmarking is a process where an organization can continuously compare and measure itself against industry leaders to learn how the best become the best. Its purpose is to achieve superior performance that results in a competitive advantage in the marketplace.

 

Benchmarking involves:

a) Identifying processes that need improvement.
b) Comparing internal processes against similar processes of industry leaders in order to determine a firm’s strengths and weaknesses. This establishes a baseline for comparison. An external analysis does the same for the firm’s competition. A comparison of both sets of analysis can provide an objective basis for comparison of one’s firm with all others.
c) Implementing improvements and measuring the effect of new work practices on a continuing basis.

 

 

PTS:   1                    DIF:    2                    REF:   357-358         OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. What are the five variables of service quality? Define service gap.

 

ANS:

The five variables are: tangibles, reliability, responsiveness, assurances, and empathy. A service gap is the difference between the level of service customers expect and the level they think they’ve received. The service gap can be either favorable (better than expected) or unfavorable (worse than expected).

 

PTS:   1                    DIF:    2                    REF:   358-359         OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

  1. How do elements of the marketing mix change during the product life cycle?

 

ANS:

Marketing mix goals in the introductory stage include development of distribution channels and introductory promotion to stimulate primary demand. Sometimes new product features may also be presented. During the growth period, with the entrance of competitors, it is important to stimulate trial through promotional inducements and word-of-mouth in an effort to develop selective demand. Price decreases are a major marketing mix change in the maturity period as firms seek to gain and maintain market share. Firms may move into international markets to offset mature domestic markets. Price decreases often continue into the decline stage. This further decreases profits for many firms and leads to a product deletion decision.

 

PTS:   1                    DIF:    2                    REF:   363-366         OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Identify and describe the stages of the product life cycle.

 

ANS:

a) Introductory Stage – Demand is stimulated for a new market entry. New technical features are often introduced to a new product category. Promotional campaigns directed toward consumers and channel members stress information about the new item. Financial losses are common due to high costs associated with promotion and research and development.
b) Growth Stage – This stage begins as demand reaches a level so that the firm begins to realize substantial profits from its earlier investment. Similar products begin to appear on the market.
c) Maturity Stage – Industry sales reach a plateau as the backlog of potential customers dwindles. Competition intensifies and individual firms’ profits decline. Promotional campaigns emphasize differences between competing brands. Some firms differentiate their offerings by emphasizing product attributes such as quality, reliability, and service. Available products exceed industry demand for the first time. Companies can only increase market share at the expense of competitors’ sales. Prices begin to fall, which usually leads to decreased revenues for all firms.
d) Decline Stage — Innovations and/or shifting consumer preferences lead to an absolute decline in industry sales. Industry profits decline or become negative, and firms drop these items from their product lines and seek to replace them with alternative items.

 

 

PTS:   1                    DIF:    3                    REF:   363-366         OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

 

 

  1. Explain the concept of extending the product life cycle, and list actions that can be taken.

 

ANS:

Product life-cycle extension is a frequently-used strategy taken to add to the time period in which a product can continue to be profitably sold. Marketing managers can accomplish this and extend product life cycles indefinitely through actions they can take. Efforts to extend product life cycles can be especially successful if action is taken in the maturity stage. These actions are:

a) Increase the frequency of product usage by consumers.
b) Increase the number of users of the product.
c) Find new uses for the product.
d) Change the package size, product labels, or product quality.

 

 

PTS:   1                    DIF:    3                    REF:   366-367         OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

Chapter 11—Product and Service Strategies

 

TRUE/FALSE

 

  1. The marketing mix is the blend of four elements of a marketing strategy, that is, product, price, distribution, and promotion, that a firm develops to satisfy a chosen target market.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A product is simply a physical item designed to satisfy a customer’s wants and needs.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. While a consumer views a product as a want satisfier, a marketer sees the product as combination of elements that give value to a consumer.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A college education is a product.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   344

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The broad view of product recognizes that consumers buy satisfaction, not just a thing they can hold in their hands.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Because they do not have physical features that buyers can see, hear, smell, taste, or touch prior to purchase, services are said to be intangible.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The goods-services continuum is defined as a product that requires continued interaction with the manufacturer for services that might include maintenance, upgrades, servicing, and repair. Examples of this type of relationship include cars and auto dealerships, or software and technical support.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. One way to distinguish a good from a service is that a service is inseparable from the service provider.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. A local gas station has installed a new food and beverage mart. Since this represents a service outside the gas station’s primary business, it falls outside the broad view of product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. On the goods-services continuum, a meal at a fine restaurant is considered a pure good, even when one considers that excellent service is part of what one values in the experience.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A goods-services continuum is a method for visualizing the differences and similarities between goods and services.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Hair styling is a pure service.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

  1. Internet security software that requires periodic updates and annual product upgrades is considered a pure service on the products-services continuum.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Marketers are realizing that, although the practice can be difficult, it is possible to maintain inventories of services by careful storage and cataloging.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Consumer perceptions of a service do not reflect their perceptions of the service provider itself.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Services are perishable and cannot be stockpiled or inventoried.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Services are less diverse than pure products.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Customers at IHOP expect almost the same service as expected at Spago’s in Beverly Hills because of the narrow variation found in service quality.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

  1. Hotels often use the same room decor and dining menu at all their locations in an attempt to standardize the services they offer.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Service transactions seldom require interaction between buyer and seller at the production and distribution stages.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The service sector of the U.S. economy is only one-third as large as the manufacturing sector.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Although the United States runs a continuing trade deficit in goods, it has maintained a trade surplus in services since 1992.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Trade surpluses in the service sector can potentially be affected by offshoring of customer service and technical support operations to places like India.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model International Perspective | R&D Managing strategy & innovation     TYP:    KN

 

  1. The service industries showing the most growth potential are wireless communications, data backup and storage, and meal preparation.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. Homeshoring is the process of returning jobs to the United States after attempts to offshore have proven ineffective or costly.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Increased competition has forced traditional service industries to de-emphasize the marketing mix and focus on superior customer service in order to compete effectively in the marketplace.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Competitive advantages are not possible in the service sector, so service providers must find other ways to differentiate themselves.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Product strategies are essentially the same for consumer and business markets.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   348

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The classification system for business products emphasizes buying behavior rather than product uses.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   348

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Consumer products are classified as convenience, shopping, specialty, and unsought.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Impulse purchase items are marketed to consumers who may not yet recognize a need for them.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Examples of impulse goods and services include stopping at a car wash on the way home, or buying a pack of gum while standing in the checkout line.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. In terms of planning time involved in a purchase, convenience and specialty products take very little time, while shopping products take an extensive amount of time.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   349-351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Emergency goods are purchased after careful reflection on whether they are really needed.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A product a customer keeps on hand and replenishes when the product runs out is called a staple.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Two of the most important variables in the purchase of a convenience product is the location of the store, and the location of the product within the store.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349-350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Shopping products can be a good or service. In either case, the purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. Homogeneous products can be easily differentiated, often using obvious characteristics such as style, color, and fit.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Drexel Furniture Company aggressively markets its bedroom and kitchen furniture. Since these products are well-known, the price is likely to be the only factor on which consumers will base their decisions.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Some specialty product companies intentionally limit the range of retailers that carry their products in order to add to their cachet.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Service companies can provide the same service to both businesses and consumers.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A hair salon is considered a people-based business, while a company that cleans air ducts is considered equipment-based.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A decision by Kawasaki Motors to build an automobile assembly plant in India but employ only Japanese production workers on the assembly line would not be considered an installation because the employees making the product are not natives of India.

 

ANS:  F                    PTS:   1                    DIF:    3                    REF:   352

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. Representatives who sell installations to the business market often provide technical expertise along with tangible goods.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Price typically does not dominate purchase decisions for installations in the business market. The purchasing firm buys such products on the basis of efficiency and performance.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. If a company that is marketing installations to the business market uses advertising at all, it emphasizes the company’s reputation and directs potential buyers to contact local sales representatives.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Accessory equipment for the business market includes such products as hand tools, portable drills, and laptop computers.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Advertising is seldom an important component in the marketing mix for accessory equipment products.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Component parts and materials are unfinished industrial products from one producer that eventually become part of the finished product of another producer.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. When the Big Bottle Brewing purchases barley malt and hops, it is assured of standardized raw materials of uniform quality due to the fact that most raw materials are graded prior to sale.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. MRO items, although relatively standardized, are rarely subject to heavy price competition.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The buying and selling of business services is such a specialized activity that it seldom involves alliances among different types of firms.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   356

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Total Quality Management (TQM) improves quality primarily by using end-of-the-line inspections to identify products that don’t meet specifications.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The Malcolm Baldrige National Quality Award is the highest national recognition for quality that a U.S. company can receive.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. The ISO 9002 standards were developed in Asia to assist businesses in selecting suppliers who have met certain specifications for quality.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking seeks to identify how business leaders recognize superior marketing performance in their industries and develop a system for continuously comparing and measuring performance against outstanding performers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The purpose of benchmarking is to achieve the minimum acceptable performance for releasing a product into the marketplace.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The three main activities in benchmarking are identifying processes that need improvement, comparing internal processes against similar activities of industry leaders, and implementing changes to improve quality.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The first step in the benchmarking process is to identify the world’s best performers.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking requires two types of analyses: strategic and tactical.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. The service encounter is the point at which the consumer interacts with the service provider.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The expected and perceived quality of a service offering has little effect on the competitiveness of a company.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. SUVs produced by Toyota, Ford, and Chrysler constitute a single product line.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Towels and sheets marketed under the Martha Stewart name can be considered a linens product line.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Companies with one product line have unlimited growth potential.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. L. L. Bean’s offering of a product line of “outdoor activity products” that include everything from boots to sleeping bags exemplifies their belief in the degree of relationship among those products existing in the mind of the consumer.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   361

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Extending a product line allows a firm to maximize sales opportunities without being limited by its resources.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The product mix is the assortment of product lines and individual product offerings that a company sells.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Marketers typically define product mixes using concepts of size, number, and price.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The length of a product mix refers to the number of different products a firm sells.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Depth of product mix refers to the variations of each product that a firm includes in its mix.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Proctor & Gamble manufactures laundry detergents under the brand names of Tide, Cheer, and Gain. These brands represent the depth of the product line.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Product line extension refers to the development of items to be included in a product line that are similar to existing items and are intended as substitutes for them.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Hershey’s introduction of a sugar-free version of its candy bar is an example of line extension.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. During the initial stage of the product life cycle, firms work to stimulate demand for the new market entry.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Technical problems are common during the introductory stage of the product life cycle as companies fine tune product design.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Word-of-mouth reports and mass advertising have very little effect on hesitant buyers making an initial product purchase during the growth stage of the product life cycle.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. To compete effectively during the growth stage of a product’s life cycle, firms should not make changes or improvements to the product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. During the maturity stage of the product life cycle, firms can increase their sales and market shares only at the expense of their competitors.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the maturity stage of the product life cycle, the industry sales curve for a product reaches a minimum point as the competitors exhaust the supply of potential customers.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the decline stage of the product life cycle, the preferred marketing strategy is to increase prices to ensure profitability.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Actions taken by marketers early in the introductory stage of the product life cycle can extend the product life cycle indefinitely.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use as a metal cleaner, the manufacturer is attempting to extend the product’s life by increasing its frequency of use.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   366-367

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Progresso Foods has introduced single-serving cans of soup for one-person households. By offering the traditional product in a smaller package to reach a new target market, the company hopes to extend the life cycle of its product offering.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   367

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. The decision about whether to delete products from the product line is usually faced during the late growth and early maturity phases of the product life cycle.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A firm may decide to carry an unprofitable item in its product mix in order to provide a complete line for its customers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Occasionally, shortages of raw materials prompt firms to discontinue production and marketing of formerly profitable products.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Marketers never drop profitable items from their product lines, even when those items really don’t fit into the existing product line.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Orphan brands are products that are purchased from companies that go out of business.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

MULTIPLE CHOICE

 

  1. Using the broad application of the word “product,” a television set is a(n):
a. obsolete technology in comparison with the Internet.
b. means of providing entertainment.
c. lucrative item for appliance stores.
d. machine used to receive broadcast signals.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   342-345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A product is:
a. the physical attributes of something one can buy.
b. whatever the seller says it is.
c. a bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs.
d. a thing that’s impossible to define, since everyone sees it differently.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Which of the following comes closest to providing a pure good?
a. A company that manufactures and installs elevators
b. A cleaning service
c. A data storage company
d. An advertising agency

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Which of the following companies is a pure service firm?
a. Wal-Mart
b. Microsoft
c. Starbucks
d. Delta Airlines

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   345-346

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. All of the following industries belong to the service sector except:
a. investment banking.
b. retailing.
c. agriculture.
d. health care.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345-346

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

 

 

  1. Distinguishing services from goods, all of the following statements are correct except:
a. services are intangible.
b. services are inseparable from service providers.
c. services are easy to standardize.
d. services are perishable.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345-346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Motel 6 and the Ritz-Carlton both provide sleeping accommodations, but their respective guests have considerably different expectations of service. This is because:
a. companies cannot standardize services.
b. services are inseparable from their providers.
c. service quality shows wide variations.
d. services have a high perishable rate.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Products marketed to consumers who may not yet recognize a need for them are _____ products.
a. unsought
b. consumer
c. convenience
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-3               NAT:  AACSB Analytic | CB&E Model Product | R&D Foundational skills

TYP:   KN

 

  1. Which of the following products are, for most consumers, unsought?
a. Designer clothes
b. Magazines
c. Long-term insurance
d. Furniture

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

 

  1. Consumer goods such as milk, bread, and soft drinks are generally classified as _____ products.
a. convenience
b. utilitarian
c. shopping
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Supermarkets usually display items such as candy, gum, and magazines near the checkout counter because they are:
a. purchased on impulse.
b. easier to replenish.
c. subject to shoplifting.
d. purchased infrequently.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A consumer expects to purchase convenience products:
a. without having full knowledge about what is sought.
b. immediately and with minimal effort.
c. after visiting numerous stores and comparing prices.
d. by traveling any distance required to get what is wanted.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following products relies least on personal selling?
a. Specialty products
b. Shopping products
c. Unsought products
d. Convenience products

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

  1. After researching and comparing several types of alarm clocks, Trisha decided on one that gives a choice of being wakened to music, bird calls, or ocean waves. In this case, the alarm clock would be classified as a(n) _____ product.
a. shopping
b. impulse
c. convenience
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Which of the following products typically has the longest distribution channel length?
a. Convenience products.
b. Staples
c. Specialty products
d. Shopping products

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Convenience products that customers constantly replenish to maintain a ready inventory may be categorized as:
a. staples.
b. impulse items.
c. emergency items.
d. specialty items.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following products would generally be classified as a staple?
a. Plumbing repair kit
b. Personal computer
c. Gasoline
d. Newspaper

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

 

 

  1. Consumer shopping products typically include items such as:
a. Coca-Cola and Snapple Iced Tea.
b. bread, milk, and gasoline.
c. clothing, furniture, and appliances.
d. Rolex watches and BMW automobiles.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Of the following, which would most likely have the greatest influence on a decision to buy a heterogeneous shopping product?
a. Product’s style
b. Store’s name and reputation
c. Location of the store
d. Price and perceived value of the product

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. While in Best Buy, a customer takes a great deal of time comparing the quality, features, and prices of a number of refrigerators. What type of products is this customer examining?
a. Homogenized shopping products
b. Convenience products
c. Homogeneous shopping products
d. Heterogeneous specialty products

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Ryan is looking for a professional watch that he buys, at most, once every few years. Since he doesn’t favor a particular brand, he spends a great deal of time comparing price and quality, as well as visiting the few retail outlets that sell high-end watches. Which type of product is Ryan about to purchase?
a. Unsought
b. Specialty
c. Convenience
d. Shopping

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

  1. Which of the following correctly matches consumer factors and marketing mix factors in the consumer products classification system?
a. Specialty products – personal selling is not important
b. Convenience products – consumer makes infrequent purchases of these products
c. Shopping products – relatively short channel of distribution is typical
d. Emergency products – these are unsought products

 

 

ANS:  C                    PTS:   1                    DIF:    3                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Consumers who are well aware of the brands they prefer and are willing to make a special effort to obtain them are primarily interested in _____ products.
a. impulse
b. convenience
c. shopping
d. specialty

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Financial, legal, and medical services constitute:
a. convenience services.
b. shopping goods.
c. specialty services.
d. customized services.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Which of the following products relies least on location of purchasing opportunity?
a. Specialty products
b. Shopping products
c. Unsought products
d. Convenience products

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

  1. Business products would ordinarily include all of the following except:
a. installations.
b. accessory equipment.
c. specialty products.
d. component parts.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following business products would be classified as an installation?
a. Jet engines
b. Office furniture
c. Copy paper
d. Regional shopping center

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   353

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. _____ are business products most similar to consumer specialty products.
a. Installations
b. Accessory equipment
c. Raw materials
d. Component parts and materials

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   353

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In the business market, the purchasing firm buys installations:
a. from the vendor who offers it at the lowest price.
b. to be as generally useful instead of having a specific purpose.
c. for efficiency and performance over their useful life.
d. as quickly as possible without extensive negotiations.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   353-354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

  1. Sandra is working on a purchase decision for her company. The product under consideration is expensive, has a short distribution channel, and isn’t purchased frequently. In addition, Sandra is working closely with a seller’s marketing representative. Which type of product is Sandra’s company considering purchasing?
a. Accessory equipment
b. Installations
c. Component parts and materials
d. Supplies

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   353-354

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Products that are considered capital investments but whose useful lives are generally much shorter than those of installations are known as:
a. accessory equipment.
b. operating supplies.
c. component parts.
d. business services.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   354-355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A basic characteristic of accessory equipment in the business market is that it is:
a. purchased by groups involving a large number of decision makers.
b. not considered a capital item.
c. a capital item with a shorter useful life than an installation.
d. a convenience product of the industrial market.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Wholesalers called industrial distributors are major vendors of:
a. standardized products of uniform quality that are made on a contractual basis.
b. MRO items.
c. installations for the industrial market.
d. accessory equipment for the business market.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. Industrial distributors are more often found selling:
a. accessory equipment.
b. business services.
c. raw materials.
d. installations.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Spark plugs, batteries, and tires that are included with the purchase of a car are examples of:
a. installations.
b. accessory equipment.
c. component parts and materials.
d. supplies.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The business market needs a regular, continuous supply of finished products of uniform quality as:
a. raw materials.
b. accessory equipment.
c. maintenance items.
d. component parts and materials.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Raw materials resemble component parts and materials in that they are:
a. considered capital investments to be held for several years.
b. part of the buyers’ final products.
c. finished products before they enter into the production of other products.
d. expended without finding their way into finished goods.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

  1. Business products classified as raw materials are:
a. price-sensitive items.
b. specialty products for the industrial market.
c. either farm products or natural products.
d. MRO items.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. All of the following are raw materials except:
a. coal.
b. copper.
c. iron ore.
d. steel.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In the business market, fax paper, pencils, and office stationery are examples of:
a. maintenance items.
b. repair items.
c. operating supplies.
d. accessory equipment.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. When a company institutes a continuous effort to improve products and work processes, they are practicing:
a. total quality management.
b. benchmarking.
c. ISO 9002 certification.
d. process improvement.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

  1. Which of the following is the first main activity involved in benchmarking?
a. Identifying the world’s leading performers
b. Identifying internal processes to be improved
c. Identifying how the best goods are produced
d. Identifying critical market segments

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking seeks to achieve superior performance that results in a competitive advantage in the marketplace by all of the following except:
a. continuously repeating the process to search for and identify areas that need improvement.
b. comparing internal processes with similar processes of industry leaders.
c. identifying processes that need improvement.
d. producing more product output at a lower cost-per-unit.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   357-358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting?
a. Assurance
b. Responsiveness
c. Empathy
d. Reliability

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Tina is a customer service representative for an Internet service provider. While dealing with elderly customers, Tina takes extra time and effort in explaining to them how to access the Internet and check e-mails.She understands their point of view, and realizes that they may need more explaination than the tech savvy younger generation . Which service quality variable is Tina exhibiting?
a. Assurance
b. Responsiveness
c. Empathy
d. Reliability

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. ABC Airlines emphasizes a lot on their crew uniform and the presentable look of their infrastructure. By doing this which service quality variable is ABC Airlines exhibiting?
a. Assurance
b. Responsiveness
c. Tangibles
d. Empathy

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Domino’s has been very consistent in terms of their offerings across their outlets as well as their 24 hours home service which is “within 30 minutes or free.” By offering such a dependable service, they have been exhibiting:
a. reliabllity.
b. responsiveness.
c. empathy.
d. tangibles.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A product _____ is a series of related products offered by one company.
a. assortment
b. mix
c. line
d. formula

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   359

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Which of the following is a single product line?
a. Four-door sedans offered by various automakers
b. 125 passenger jets manufactured by Airbus and Boeing
c. Hershey Kisses in a variety of flavors including almond, dark chocolate, and caramel
d. Different brands of toothpaste

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

  1. In a process called _____, products pass through a series of stages from their initial appearance to their decline.
a. product life potential
b. promotional cycle
c. pricing cycle
d. product life cycle

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The combination of product lines represents a company’s product:
a. mix.
b. cluster.
c. lifecycle.
d. concept.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. If Honda were to acquire a bicycle manufacturer, it would add to the _____ of Honda’s product mix.
a. depth
b. width
c. length
d. cluster

 

 

ANS:  B                    PTS:   1                    DIF:    3                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The number of product lines a firm offers is referred to as:
a. depth.
b. width.
c. clusters.
d. length.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

  1. Adding individual offerings that appeal to different market segments is known as a product:
a. mix.
b. line.
c. line extension.
d. line depth.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Johnson & Johnson manufactures more than 100 brands in nearly 50 product categories. The total number of products they manufacture is called the product:
a. line extension.
b. cluster map.
c. mix length.
d. life cycle expectancy.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A firm’s marketing strategy should emphasize stimulating initial demand during the _____ stage of the product life cycle.
a. introduction
b. stabilization
c. growth
d. maturity

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Strategic & systems skills

TYP:   KN

 

  1. Potential customers are unaware of a product when in its introductory stage, therefore promotion in this stage concentrates on:
a. informing the market about the item and explaining its features, uses, and benefits.
b. reducing the size of the available market through selective advertising.
c. test marketing.
d. communicating new uses for the product.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

  1. During the introductory stage of the product life cycle:
a. competitors rush into the market with offerings similar to those of the innovator.
b. technical problems are common as companies fine-tune product design.
c. heavy promotional outlays emphasize differences that exist between products.
d. profits for the product category decline, sometimes actually becoming negative.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In which stage of the product life cycle do profits become more substantial?
a. Decline stage
b. Introductory stage
c. Growth stage
d. Maturity stage

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A characteristic of the growth stage of the product life cycle is that:
a. low prices are established.
b. effective competitors improve and modify their products.
c. early buyers of the product make their initial purchases.
d. buyers are hesitant to make repurchases.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Widgets were introduced a few years ago. The number of companies making widgets has increased recently, drawn by high profits. At the same time, differentiated products for different market segments have begun to emerge. Widgets appear to be in the _____ stage of the product life cycle.
a. growth
b. introductory
c. maturity
d. decline

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Competition between brands intensifies during which stage of the product life cycle?
a. Maturity stage
b. Introductory stage
c. Growth stage
d. Diminishing demand period

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Product differentiation and heavy advertising most often occur during the _____ stage of the product life cycle.
a. maturity
b. introductory
c. growth
d. decline

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the maturity stage of the product life cycle:
a. sales volumes rise rapidly as new customers make initial purchases and earlier purchasers buy again.
b. some firms try to differentiate their products on the basis of quality, reliability, and service.
c. financial losses are common as firms incur heavy promotion costs.
d. innovations or shifts in consumer preferences bring about a decline in industry sales.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Greta has been analyzing the competitive standing of one of her products. Since Greta’s product was introduced, 20 similar products have appeared, forcing her to change distribution strategies. Greta has also needed to change pricing strategies in order to remain competitive. Sales volume has dipped, and she suspects sales of her product have reached a saturation level. At what stage of the product life cycle is the product?
a. Introductory
b. Growth
c. Maturity
d. Decline

 

 

ANS:  C                    PTS:   1                    DIF:    3                    REF:   365

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

  1. A viable marketing strategy would be to promote the differences that separate competing products during the _____ stage of the product life cycle.
a. introduction
b. stabilization
c. growth
d. maturity

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A characteristic of the decline stage of the product life cycle is that:
a. profits decline and may even be negative.
b. distribution is increased.
c. available products exceed demand for the first time.
d. selective demand is cultivated.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Genuine Products has been involved in intensive price competition with another company. Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item. This product appears to have reached the _____ stage of the product life cycle.
a. introductory
b. maturity
c. decline
d. growth

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Fashions with abbreviated life cycles are called:
a. trends.
b. perishables.
c. fads.
d. staples.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

  1. Advertising that warns consumers about the dangers of overexposure to the sun, even during winter months, is an attempt by marketers of sunscreen to:
a. raise awareness of skin cancer.
b. find new uses for the product.
c. change product quality.
d. increase the frequency of use.

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   366

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. In the late 1990s, Las Vegas witnessed a growth in the number of newly built casinos targeting the family vacation market. Advertising their facilities to families was an attempt to:
a. fill a high vacancy rate.
b. increase the number of users.
c. sell tickets to family shows.
d. enhance the city’s image.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   366

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

MATCHING

 

Match each item with the correct statement below.

 

a. marketing mix h. product mix
b. benchmarking i. unsought product
c. product j. maturity stage
d. convenience product k. raw materials
e. shopping product l. total quality management
f. specialty product m. product life cycle
g. product line n. installations

 

 

  1. _____ is a continuous effort to improve products and work processes.

 

  1. The _____ is the blending of the four strategy elements to fit the needs and preferences of a target market.

 

  1. Farm products and mineral products are examples of _____.

 

  1. Firms often rely on _____ to set performance standards and achieve superior performance resulting in a competitive advantage in the marketplace.

 

  1. Sales of a product category continue to grow during the early part of the _____, but eventually reach a plateau as the backlog of potential customers dwindles.

 

  1. A bundle of physical, service, and symbolic attributes is a(n) _____.

 

  1. A product that is purchased frequently, immediately, and with minimal effort is classified as a(n) _____.

 

  1. A(n) _____ is marketed to consumers who may not yet recognize the need for it.

 

  1. A product that a consumer purchases after comparing competing offerings is called a(n) _____.

 

  1. Assortment of product offerings sold by a firm is called the _____.

 

  1. A(n) _____ offers unique characteristics that cause buyers to prize those particular brands.

 

  1. A series of related products offered by one company is a(n) _____.

 

  1. The specialty products of the business market are called _____.

 

  1. The four stages that a product will progress through is called the _____.

 

  1. ANS:  L                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  A                    PTS:   1                    DIF:    1                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  K                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  B                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  J                     PTS:   1                    DIF:    1                    REF:   365

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  C                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  D                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  I                     PTS:   1                    DIF:    1                    REF:   361-362

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  E                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  H                    PTS:   1                    DIF:    1                    REF:   359

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  F                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  G                    PTS:   1                    DIF:    1                    REF:   364-365

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  N                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  M                   PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

ESSAY

 

  1. List the six factors that distinguish services from goods.

 

ANS:

1. Services are intangible.
2. Services are inseparable from providers.
3. Services are perishable.
4. It is difficult for firms to standardize services.
5. Buyers often play important roles in the creation and distribution of services.
6. Service quality shows wide variations.

 

 

PTS:   1                    DIF:    2                    REF:   345-346         OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. What are the three categories of convenience products? Give examples of each type.

 

ANS:

The three categories of convenience products are impulse goods and services (magazines and candy at the checkout aisle), staples (toiletries, detergents, milk, bread, and gasoline), and emergency goods and services (first-aid kit, snow blowers, and bottled water).

 

PTS:   1                    DIF:    2                    REF:   349-350         OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

 

 

 

  1. List and describe the categories of consumer products. How does this grouping influence the method in which the products are marketed?

 

ANS:

The most commonly used classification of consumer products divides products into three groups. Products consumers wish to purchase frequently, immediately, and with minimal effort are called convenience products. Products which are purchased after comparisons of product alternatives are made, based on factors such as price, style, and color, are called shopping products. Finally, products possessing some unique characteristics that cause consumers to prize a particular brand and to exert considerable effort to obtain that brand are called specialty products.

 

Knowing the group in which a product belongs to helps describe the behavior of consumers with regard to purchase planning time, frequency, willingness to shop, and whether or not there is a connection between the product price and perceived quality. Further, marketing mix decisions concerning price, promotion, and distribution are made easier. For example, the prices of convenience products are generally low, while prices for shopping and specialty goods are relatively higher. Also, the distribution channel length for convenience products is usually long, while the channel for shopping and specialty goods is shorter.

 

PTS:   1                    DIF:    3                    REF:   349-351         OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Discuss the characteristics of shopping products. What are homogeneous and heterogeneous products?

 

ANS:

Shopping products are products that the consumer lacks complete information about prior to the purchase, but gathers needed information during the buying process. The competitive offerings of shopping products are compared. Products that consumers consider to be very similar are considered homogeneous, and price and value are usually the prime consideration in the purchase. Heterogeneous products have perceived differences, and a purchase may be based on any number of variables including quality, appeal, uniqueness, color, and style.

 

PTS:   1                    DIF:    2                    REF:   350                OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. List five questions that classify consumer services.

 

ANS:

1. What is the nature of the service?
2. What type of relationship does the service organization have with its customers?
3. How much flexibility is there for customization and judgment on the part of the service provider?
4. Do demand and supply for the service fluctuate?
5. How is the service delivered?

 

 

PTS:   1                    DIF:    2                    REF:   351-352         OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Discuss two challenges presented by the consumer product classification system.

 

ANS:

First, the consumer product classification system assumes that all products fit neatly into one category. Many products share characteristics of more than one category. The purchase of an automobile, for example, has characteristics of both a shopping and specialty product. For some consumers, it may be more of a shopping product, while for others it may be more of a specialty product. Second, consumers differ in their buying patterns. For instance, one person may make an emergency visit to a dentist because of a toothache, while another may extensively compare prices, office hours, and other factors before selecting a dentist.

 

PTS:   1                    DIF:    3                    REF:   352                OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. What are the major types of business products? What is the basis for this classification?

 

ANS:

Business products are classified on the basis of product uses rather than on the customer buying behavior. The five categories of business products are installations, accessory equipment, component parts and materials, raw materials, and supplies.

1.Installations are the speciality products of the business market,such as new factories,heavy equipment and telecommunication systems.

2.Accessory equipment are capital items that are typically less expensive and shorter lived than installations, such as hand tools, portable drills, and laptop computers.

3.Component parts and materials are finished business products that actually become part of the final product.

4.Raw materials are similar to component parts and materials in that they are used in producing the final product. They are farm and natural products such as eggs, coal, lumber and meat.

5.Suppliers are regular expense items that are necessary in the firms daily operation but are not part of the final product.

 

PTS:   1                    DIF:    1                    REF:   353-355         OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. What is Total Quality Management (TQM)? Discuss the standards the United States and Europe have established in the quality management movement.

 

ANS:

a) Total Quality Management (TQM) is a firm’s expectation that employees continually improve products and work processes with the goal of achieving customer satisfaction and world-class performance.
b) The United States has established the Malcolm Bainbridge Award for excellence in quality management.
c) The European Union has developed ISO 9002 standards, which set international standards for quality management and assurance. These standards are designed to ensure consistent quality among products manufactured and sold throughout the nations of the European Union. Firms outside the European Union, fearing exclusion from this market, have moved quickly to meet the ISO 9002 standards.

 

 

PTS:   1                    DIF:    3                    REF:   357                OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Define benchmarking and discuss how it helps to improve a marketing strategy.

 

ANS:

Benchmarking is a process where an organization can continuously compare and measure itself against industry leaders to learn how the best become the best. Its purpose is to achieve superior performance that results in a competitive advantage in the marketplace.

 

Benchmarking involves:

a) Identifying processes that need improvement.
b) Comparing internal processes against similar processes of industry leaders in order to determine a firm’s strengths and weaknesses. This establishes a baseline for comparison. An external analysis does the same for the firm’s competition. A comparison of both sets of analysis can provide an objective basis for comparison of one’s firm with all others.
c) Implementing improvements and measuring the effect of new work practices on a continuing basis.

 

 

PTS:   1                    DIF:    2                    REF:   357-358         OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. What are the five variables of service quality? Define service gap.

 

ANS:

The five variables are: tangibles, reliability, responsiveness, assurances, and empathy. A service gap is the difference between the level of service customers expect and the level they think they’ve received. The service gap can be either favorable (better than expected) or unfavorable (worse than expected).

 

PTS:   1                    DIF:    2                    REF:   358-359         OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

  1. How do elements of the marketing mix change during the product life cycle?

 

ANS:

Marketing mix goals in the introductory stage include development of distribution channels and introductory promotion to stimulate primary demand. Sometimes new product features may also be presented. During the growth period, with the entrance of competitors, it is important to stimulate trial through promotional inducements and word-of-mouth in an effort to develop selective demand. Price decreases are a major marketing mix change in the maturity period as firms seek to gain and maintain market share. Firms may move into international markets to offset mature domestic markets. Price decreases often continue into the decline stage. This further decreases profits for many firms and leads to a product deletion decision.

 

PTS:   1                    DIF:    2                    REF:   363-366         OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Identify and describe the stages of the product life cycle.

 

ANS:

a) Introductory Stage – Demand is stimulated for a new market entry. New technical features are often introduced to a new product category. Promotional campaigns directed toward consumers and channel members stress information about the new item. Financial losses are common due to high costs associated with promotion and research and development.
b) Growth Stage – This stage begins as demand reaches a level so that the firm begins to realize substantial profits from its earlier investment. Similar products begin to appear on the market.
c) Maturity Stage – Industry sales reach a plateau as the backlog of potential customers dwindles. Competition intensifies and individual firms’ profits decline. Promotional campaigns emphasize differences between competing brands. Some firms differentiate their offerings by emphasizing product attributes such as quality, reliability, and service. Available products exceed industry demand for the first time. Companies can only increase market share at the expense of competitors’ sales. Prices begin to fall, which usually leads to decreased revenues for all firms.
d) Decline Stage — Innovations and/or shifting consumer preferences lead to an absolute decline in industry sales. Industry profits decline or become negative, and firms drop these items from their product lines and seek to replace them with alternative items.

 

 

PTS:   1                    DIF:    3                    REF:   363-366         OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

 

 

  1. Explain the concept of extending the product life cycle, and list actions that can be taken.

 

ANS:

Product life-cycle extension is a frequently-used strategy taken to add to the time period in which a product can continue to be profitably sold. Marketing managers can accomplish this and extend product life cycles indefinitely through actions they can take. Efforts to extend product life cycles can be especially successful if action is taken in the maturity stage. These actions are:

a) Increase the frequency of product usage by consumers.
b) Increase the number of users of the product.
c) Find new uses for the product.
d) Change the package size, product labels, or product quality.

 

 

PTS:   1                    DIF:    3                    REF:   366-367         OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

Chapter 11—Product and Service Strategies

 

TRUE/FALSE

 

  1. The marketing mix is the blend of four elements of a marketing strategy, that is, product, price, distribution, and promotion, that a firm develops to satisfy a chosen target market.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A product is simply a physical item designed to satisfy a customer’s wants and needs.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. While a consumer views a product as a want satisfier, a marketer sees the product as combination of elements that give value to a consumer.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A college education is a product.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   344

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The broad view of product recognizes that consumers buy satisfaction, not just a thing they can hold in their hands.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Because they do not have physical features that buyers can see, hear, smell, taste, or touch prior to purchase, services are said to be intangible.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The goods-services continuum is defined as a product that requires continued interaction with the manufacturer for services that might include maintenance, upgrades, servicing, and repair. Examples of this type of relationship include cars and auto dealerships, or software and technical support.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. One way to distinguish a good from a service is that a service is inseparable from the service provider.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. A local gas station has installed a new food and beverage mart. Since this represents a service outside the gas station’s primary business, it falls outside the broad view of product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. On the goods-services continuum, a meal at a fine restaurant is considered a pure good, even when one considers that excellent service is part of what one values in the experience.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A goods-services continuum is a method for visualizing the differences and similarities between goods and services.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Hair styling is a pure service.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

  1. Internet security software that requires periodic updates and annual product upgrades is considered a pure service on the products-services continuum.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Marketers are realizing that, although the practice can be difficult, it is possible to maintain inventories of services by careful storage and cataloging.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Consumer perceptions of a service do not reflect their perceptions of the service provider itself.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of human behavior & society           TYP:              AP

 

  1. Services are perishable and cannot be stockpiled or inventoried.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Services are less diverse than pure products.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Customers at IHOP expect almost the same service as expected at Spago’s in Beverly Hills because of the narrow variation found in service quality.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

  1. Hotels often use the same room decor and dining menu at all their locations in an attempt to standardize the services they offer.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Service transactions seldom require interaction between buyer and seller at the production and distribution stages.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The service sector of the U.S. economy is only one-third as large as the manufacturing sector.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Although the United States runs a continuing trade deficit in goods, it has maintained a trade surplus in services since 1992.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Trade surpluses in the service sector can potentially be affected by offshoring of customer service and technical support operations to places like India.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model International Perspective | R&D Managing strategy & innovation     TYP:    KN

 

  1. The service industries showing the most growth potential are wireless communications, data backup and storage, and meal preparation.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. Homeshoring is the process of returning jobs to the United States after attempts to offshore have proven ineffective or costly.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   347

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Increased competition has forced traditional service industries to de-emphasize the marketing mix and focus on superior customer service in order to compete effectively in the marketplace.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Competitive advantages are not possible in the service sector, so service providers must find other ways to differentiate themselves.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-2

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Product strategies are essentially the same for consumer and business markets.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   348

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The classification system for business products emphasizes buying behavior rather than product uses.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   348

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Consumer products are classified as convenience, shopping, specialty, and unsought.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Impulse purchase items are marketed to consumers who may not yet recognize a need for them.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Examples of impulse goods and services include stopping at a car wash on the way home, or buying a pack of gum while standing in the checkout line.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. In terms of planning time involved in a purchase, convenience and specialty products take very little time, while shopping products take an extensive amount of time.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   349-351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of human behavior & society

TYP:   KN

 

  1. Emergency goods are purchased after careful reflection on whether they are really needed.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A product a customer keeps on hand and replenishes when the product runs out is called a staple.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Two of the most important variables in the purchase of a convenience product is the location of the store, and the location of the product within the store.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   349-350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Shopping products can be a good or service. In either case, the purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. Homogeneous products can be easily differentiated, often using obvious characteristics such as style, color, and fit.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Drexel Furniture Company aggressively markets its bedroom and kitchen furniture. Since these products are well-known, the price is likely to be the only factor on which consumers will base their decisions.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Some specialty product companies intentionally limit the range of retailers that carry their products in order to add to their cachet.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Service companies can provide the same service to both businesses and consumers.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A hair salon is considered a people-based business, while a company that cleans air ducts is considered equipment-based.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A decision by Kawasaki Motors to build an automobile assembly plant in India but employ only Japanese production workers on the assembly line would not be considered an installation because the employees making the product are not natives of India.

 

ANS:  F                    PTS:   1                    DIF:    3                    REF:   352

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. Representatives who sell installations to the business market often provide technical expertise along with tangible goods.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Price typically does not dominate purchase decisions for installations in the business market. The purchasing firm buys such products on the basis of efficiency and performance.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. If a company that is marketing installations to the business market uses advertising at all, it emphasizes the company’s reputation and directs potential buyers to contact local sales representatives.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Accessory equipment for the business market includes such products as hand tools, portable drills, and laptop computers.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Advertising is seldom an important component in the marketing mix for accessory equipment products.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Component parts and materials are unfinished industrial products from one producer that eventually become part of the finished product of another producer.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. When the Big Bottle Brewing purchases barley malt and hops, it is assured of standardized raw materials of uniform quality due to the fact that most raw materials are graded prior to sale.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. MRO items, although relatively standardized, are rarely subject to heavy price competition.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The buying and selling of business services is such a specialized activity that it seldom involves alliances among different types of firms.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   356

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Total Quality Management (TQM) improves quality primarily by using end-of-the-line inspections to identify products that don’t meet specifications.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The Malcolm Baldrige National Quality Award is the highest national recognition for quality that a U.S. company can receive.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. The ISO 9002 standards were developed in Asia to assist businesses in selecting suppliers who have met certain specifications for quality.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking seeks to identify how business leaders recognize superior marketing performance in their industries and develop a system for continuously comparing and measuring performance against outstanding performers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The purpose of benchmarking is to achieve the minimum acceptable performance for releasing a product into the marketplace.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The three main activities in benchmarking are identifying processes that need improvement, comparing internal processes against similar activities of industry leaders, and implementing changes to improve quality.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The first step in the benchmarking process is to identify the world’s best performers.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking requires two types of analyses: strategic and tactical.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. The service encounter is the point at which the consumer interacts with the service provider.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The expected and perceived quality of a service offering has little effect on the competitiveness of a company.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. SUVs produced by Toyota, Ford, and Chrysler constitute a single product line.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Towels and sheets marketed under the Martha Stewart name can be considered a linens product line.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Companies with one product line have unlimited growth potential.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   360

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. L. L. Bean’s offering of a product line of “outdoor activity products” that include everything from boots to sleeping bags exemplifies their belief in the degree of relationship among those products existing in the mind of the consumer.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   361

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Extending a product line allows a firm to maximize sales opportunities without being limited by its resources.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The product mix is the assortment of product lines and individual product offerings that a company sells.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Marketers typically define product mixes using concepts of size, number, and price.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The length of a product mix refers to the number of different products a firm sells.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Depth of product mix refers to the variations of each product that a firm includes in its mix.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Proctor & Gamble manufactures laundry detergents under the brand names of Tide, Cheer, and Gain. These brands represent the depth of the product line.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Product line extension refers to the development of items to be included in a product line that are similar to existing items and are intended as substitutes for them.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Hershey’s introduction of a sugar-free version of its candy bar is an example of line extension.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. During the initial stage of the product life cycle, firms work to stimulate demand for the new market entry.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Technical problems are common during the introductory stage of the product life cycle as companies fine tune product design.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Word-of-mouth reports and mass advertising have very little effect on hesitant buyers making an initial product purchase during the growth stage of the product life cycle.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. To compete effectively during the growth stage of a product’s life cycle, firms should not make changes or improvements to the product.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

  1. During the maturity stage of the product life cycle, firms can increase their sales and market shares only at the expense of their competitors.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the maturity stage of the product life cycle, the industry sales curve for a product reaches a minimum point as the competitors exhaust the supply of potential customers.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the decline stage of the product life cycle, the preferred marketing strategy is to increase prices to ensure profitability.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Actions taken by marketers early in the introductory stage of the product life cycle can extend the product life cycle indefinitely.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use as a metal cleaner, the manufacturer is attempting to extend the product’s life by increasing its frequency of use.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   366-367

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Progresso Foods has introduced single-serving cans of soup for one-person households. By offering the traditional product in a smaller package to reach a new target market, the company hopes to extend the life cycle of its product offering.

 

ANS:  T                    PTS:   1                    DIF:    1                    REF:   367

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. The decision about whether to delete products from the product line is usually faced during the late growth and early maturity phases of the product life cycle.

 

ANS:  F                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A firm may decide to carry an unprofitable item in its product mix in order to provide a complete line for its customers.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Occasionally, shortages of raw materials prompt firms to discontinue production and marketing of formerly profitable products.

 

ANS:  T                    PTS:   1                    DIF:    2                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Marketers never drop profitable items from their product lines, even when those items really don’t fit into the existing product line.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Orphan brands are products that are purchased from companies that go out of business.

 

ANS:  F                    PTS:   1                    DIF:    1                    REF:   368

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

MULTIPLE CHOICE

 

  1. Using the broad application of the word “product,” a television set is a(n):
a. obsolete technology in comparison with the Internet.
b. means of providing entertainment.
c. lucrative item for appliance stores.
d. machine used to receive broadcast signals.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   342-345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A product is:
a. the physical attributes of something one can buy.
b. whatever the seller says it is.
c. a bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs.
d. a thing that’s impossible to define, since everyone sees it differently.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Which of the following comes closest to providing a pure good?
a. A company that manufactures and installs elevators
b. A cleaning service
c. A data storage company
d. An advertising agency

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Which of the following companies is a pure service firm?
a. Wal-Mart
b. Microsoft
c. Starbucks
d. Delta Airlines

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   345-346

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. All of the following industries belong to the service sector except:
a. investment banking.
b. retailing.
c. agriculture.
d. health care.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345-346

OBJ:   11-2

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

 

 

  1. Distinguishing services from goods, all of the following statements are correct except:
a. services are intangible.
b. services are inseparable from service providers.
c. services are easy to standardize.
d. services are perishable.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   345-346

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Motel 6 and the Ritz-Carlton both provide sleeping accommodations, but their respective guests have considerably different expectations of service. This is because:
a. companies cannot standardize services.
b. services are inseparable from their providers.
c. service quality shows wide variations.
d. services have a high perishable rate.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   346

OBJ:   11-1

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Products marketed to consumers who may not yet recognize a need for them are _____ products.
a. unsought
b. consumer
c. convenience
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-3               NAT:  AACSB Analytic | CB&E Model Product | R&D Foundational skills

TYP:   KN

 

  1. Which of the following products are, for most consumers, unsought?
a. Designer clothes
b. Magazines
c. Long-term insurance
d. Furniture

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   348

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

 

  1. Consumer goods such as milk, bread, and soft drinks are generally classified as _____ products.
a. convenience
b. utilitarian
c. shopping
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

  1. Supermarkets usually display items such as candy, gum, and magazines near the checkout counter because they are:
a. purchased on impulse.
b. easier to replenish.
c. subject to shoplifting.
d. purchased infrequently.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A consumer expects to purchase convenience products:
a. without having full knowledge about what is sought.
b. immediately and with minimal effort.
c. after visiting numerous stores and comparing prices.
d. by traveling any distance required to get what is wanted.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following products relies least on personal selling?
a. Specialty products
b. Shopping products
c. Unsought products
d. Convenience products

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

  1. After researching and comparing several types of alarm clocks, Trisha decided on one that gives a choice of being wakened to music, bird calls, or ocean waves. In this case, the alarm clock would be classified as a(n) _____ product.
a. shopping
b. impulse
c. convenience
d. specialty

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Which of the following products typically has the longest distribution channel length?
a. Convenience products.
b. Staples
c. Specialty products
d. Shopping products

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Convenience products that customers constantly replenish to maintain a ready inventory may be categorized as:
a. staples.
b. impulse items.
c. emergency items.
d. specialty items.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following products would generally be classified as a staple?
a. Plumbing repair kit
b. Personal computer
c. Gasoline
d. Newspaper

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Knowledge of general business functions           TYP:              AP

 

 

 

 

 

 

  1. Consumer shopping products typically include items such as:
a. Coca-Cola and Snapple Iced Tea.
b. bread, milk, and gasoline.
c. clothing, furniture, and appliances.
d. Rolex watches and BMW automobiles.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Of the following, which would most likely have the greatest influence on a decision to buy a heterogeneous shopping product?
a. Product’s style
b. Store’s name and reputation
c. Location of the store
d. Price and perceived value of the product

 

 

ANS:  A                    PTS:   1                    DIF:    3                    REF:   350

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. While in Best Buy, a customer takes a great deal of time comparing the quality, features, and prices of a number of refrigerators. What type of products is this customer examining?
a. Homogenized shopping products
b. Convenience products
c. Homogeneous shopping products
d. Heterogeneous specialty products

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Ryan is looking for a professional watch that he buys, at most, once every few years. Since he doesn’t favor a particular brand, he spends a great deal of time comparing price and quality, as well as visiting the few retail outlets that sell high-end watches. Which type of product is Ryan about to purchase?
a. Unsought
b. Specialty
c. Convenience
d. Shopping

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

  1. Which of the following correctly matches consumer factors and marketing mix factors in the consumer products classification system?
a. Specialty products – personal selling is not important
b. Convenience products – consumer makes infrequent purchases of these products
c. Shopping products – relatively short channel of distribution is typical
d. Emergency products – these are unsought products

 

 

ANS:  C                    PTS:   1                    DIF:    3                    REF:   350

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Consumers who are well aware of the brands they prefer and are willing to make a special effort to obtain them are primarily interested in _____ products.
a. impulse
b. convenience
c. shopping
d. specialty

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Financial, legal, and medical services constitute:
a. convenience services.
b. shopping goods.
c. specialty services.
d. customized services.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Which of the following products relies least on location of purchasing opportunity?
a. Specialty products
b. Shopping products
c. Unsought products
d. Convenience products

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

  1. Business products would ordinarily include all of the following except:
a. installations.
b. accessory equipment.
c. specialty products.
d. component parts.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Which of the following business products would be classified as an installation?
a. Jet engines
b. Office furniture
c. Copy paper
d. Regional shopping center

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   353

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. _____ are business products most similar to consumer specialty products.
a. Installations
b. Accessory equipment
c. Raw materials
d. Component parts and materials

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   353

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In the business market, the purchasing firm buys installations:
a. from the vendor who offers it at the lowest price.
b. to be as generally useful instead of having a specific purpose.
c. for efficiency and performance over their useful life.
d. as quickly as possible without extensive negotiations.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   353-354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

  1. Sandra is working on a purchase decision for her company. The product under consideration is expensive, has a short distribution channel, and isn’t purchased frequently. In addition, Sandra is working closely with a seller’s marketing representative. Which type of product is Sandra’s company considering purchasing?
a. Accessory equipment
b. Installations
c. Component parts and materials
d. Supplies

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   353-354

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Products that are considered capital investments but whose useful lives are generally much shorter than those of installations are known as:
a. accessory equipment.
b. operating supplies.
c. component parts.
d. business services.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   354-355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A basic characteristic of accessory equipment in the business market is that it is:
a. purchased by groups involving a large number of decision makers.
b. not considered a capital item.
c. a capital item with a shorter useful life than an installation.
d. a convenience product of the industrial market.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   354

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Wholesalers called industrial distributors are major vendors of:
a. standardized products of uniform quality that are made on a contractual basis.
b. MRO items.
c. installations for the industrial market.
d. accessory equipment for the business market.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

  1. Industrial distributors are more often found selling:
a. accessory equipment.
b. business services.
c. raw materials.
d. installations.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Spark plugs, batteries, and tires that are included with the purchase of a car are examples of:
a. installations.
b. accessory equipment.
c. component parts and materials.
d. supplies.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The business market needs a regular, continuous supply of finished products of uniform quality as:
a. raw materials.
b. accessory equipment.
c. maintenance items.
d. component parts and materials.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Raw materials resemble component parts and materials in that they are:
a. considered capital investments to be held for several years.
b. part of the buyers’ final products.
c. finished products before they enter into the production of other products.
d. expended without finding their way into finished goods.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

  1. Business products classified as raw materials are:
a. price-sensitive items.
b. specialty products for the industrial market.
c. either farm products or natural products.
d. MRO items.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. All of the following are raw materials except:
a. coal.
b. copper.
c. iron ore.
d. steel.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In the business market, fax paper, pencils, and office stationery are examples of:
a. maintenance items.
b. repair items.
c. operating supplies.
d. accessory equipment.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   355

OBJ:   11-4

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. When a company institutes a continuous effort to improve products and work processes, they are practicing:
a. total quality management.
b. benchmarking.
c. ISO 9002 certification.
d. process improvement.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

  1. Which of the following is the first main activity involved in benchmarking?
a. Identifying the world’s leading performers
b. Identifying internal processes to be improved
c. Identifying how the best goods are produced
d. Identifying critical market segments

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Benchmarking seeks to achieve superior performance that results in a competitive advantage in the marketplace by all of the following except:
a. continuously repeating the process to search for and identify areas that need improvement.
b. comparing internal processes with similar processes of industry leaders.
c. identifying processes that need improvement.
d. producing more product output at a lower cost-per-unit.

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   357-358

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting?
a. Assurance
b. Responsiveness
c. Empathy
d. Reliability

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Tina is a customer service representative for an Internet service provider. While dealing with elderly customers, Tina takes extra time and effort in explaining to them how to access the Internet and check e-mails.She understands their point of view, and realizes that they may need more explaination than the tech savvy younger generation . Which service quality variable is Tina exhibiting?
a. Assurance
b. Responsiveness
c. Empathy
d. Reliability

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

  1. ABC Airlines emphasizes a lot on their crew uniform and the presentable look of their infrastructure. By doing this which service quality variable is ABC Airlines exhibiting?
a. Assurance
b. Responsiveness
c. Tangibles
d. Empathy

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Domino’s has been very consistent in terms of their offerings across their outlets as well as their 24 hours home service which is “within 30 minutes or free.” By offering such a dependable service, they have been exhibiting:
a. reliabllity.
b. responsiveness.
c. empathy.
d. tangibles.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   359

OBJ:   11-5

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A product _____ is a series of related products offered by one company.
a. assortment
b. mix
c. line
d. formula

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   359

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. Which of the following is a single product line?
a. Four-door sedans offered by various automakers
b. 125 passenger jets manufactured by Airbus and Boeing
c. Hershey Kisses in a variety of flavors including almond, dark chocolate, and caramel
d. Different brands of toothpaste

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   363

OBJ:   11-6

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

  1. In a process called _____, products pass through a series of stages from their initial appearance to their decline.
a. product life potential
b. promotional cycle
c. pricing cycle
d. product life cycle

 

 

ANS:  D                    PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. The combination of product lines represents a company’s product:
a. mix.
b. cluster.
c. lifecycle.
d. concept.

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   361

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. If Honda were to acquire a bicycle manufacturer, it would add to the _____ of Honda’s product mix.
a. depth
b. width
c. length
d. cluster

 

 

ANS:  B                    PTS:   1                    DIF:    3                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. The number of product lines a firm offers is referred to as:
a. depth.
b. width.
c. clusters.
d. length.

 

 

ANS:  B                    PTS:   1                    DIF:    1                    REF:   362

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

  1. Adding individual offerings that appeal to different market segments is known as a product:
a. mix.
b. line.
c. line extension.
d. line depth.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Johnson & Johnson manufactures more than 100 brands in nearly 50 product categories. The total number of products they manufacture is called the product:
a. line extension.
b. cluster map.
c. mix length.
d. life cycle expectancy.

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   362

OBJ:   11-7

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. A firm’s marketing strategy should emphasize stimulating initial demand during the _____ stage of the product life cycle.
a. introduction
b. stabilization
c. growth
d. maturity

 

 

ANS:  A                    PTS:   1                    DIF:    1                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Strategic & systems skills

TYP:   KN

 

  1. Potential customers are unaware of a product when in its introductory stage, therefore promotion in this stage concentrates on:
a. informing the market about the item and explaining its features, uses, and benefits.
b. reducing the size of the available market through selective advertising.
c. test marketing.
d. communicating new uses for the product.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

  1. During the introductory stage of the product life cycle:
a. competitors rush into the market with offerings similar to those of the innovator.
b. technical problems are common as companies fine-tune product design.
c. heavy promotional outlays emphasize differences that exist between products.
d. profits for the product category decline, sometimes actually becoming negative.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   364

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. In which stage of the product life cycle do profits become more substantial?
a. Decline stage
b. Introductory stage
c. Growth stage
d. Maturity stage

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A characteristic of the growth stage of the product life cycle is that:
a. low prices are established.
b. effective competitors improve and modify their products.
c. early buyers of the product make their initial purchases.
d. buyers are hesitant to make repurchases.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Widgets were introduced a few years ago. The number of companies making widgets has increased recently, drawn by high profits. At the same time, differentiated products for different market segments have begun to emerge. Widgets appear to be in the _____ stage of the product life cycle.
a. growth
b. introductory
c. maturity
d. decline

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

  1. Competition between brands intensifies during which stage of the product life cycle?
a. Maturity stage
b. Introductory stage
c. Growth stage
d. Diminishing demand period

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Product differentiation and heavy advertising most often occur during the _____ stage of the product life cycle.
a. maturity
b. introductory
c. growth
d. decline

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. During the maturity stage of the product life cycle:
a. sales volumes rise rapidly as new customers make initial purchases and earlier purchasers buy again.
b. some firms try to differentiate their products on the basis of quality, reliability, and service.
c. financial losses are common as firms incur heavy promotion costs.
d. innovations or shifts in consumer preferences bring about a decline in industry sales.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Greta has been analyzing the competitive standing of one of her products. Since Greta’s product was introduced, 20 similar products have appeared, forcing her to change distribution strategies. Greta has also needed to change pricing strategies in order to remain competitive. Sales volume has dipped, and she suspects sales of her product have reached a saturation level. At what stage of the product life cycle is the product?
a. Introductory
b. Growth
c. Maturity
d. Decline

 

 

ANS:  C                    PTS:   1                    DIF:    3                    REF:   365

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

  1. A viable marketing strategy would be to promote the differences that separate competing products during the _____ stage of the product life cycle.
a. introduction
b. stabilization
c. growth
d. maturity

 

 

ANS:  D                    PTS:   1                    DIF:    2                    REF:   365

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. A characteristic of the decline stage of the product life cycle is that:
a. profits decline and may even be negative.
b. distribution is increased.
c. available products exceed demand for the first time.
d. selective demand is cultivated.

 

 

ANS:  A                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Genuine Products has been involved in intensive price competition with another company. Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item. This product appears to have reached the _____ stage of the product life cycle.
a. introductory
b. maturity
c. decline
d. growth

 

 

ANS:  C                    PTS:   1                    DIF:    2                    REF:   365-366

OBJ:   11-8

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. Fashions with abbreviated life cycles are called:
a. trends.
b. perishables.
c. fads.
d. staples.

 

 

ANS:  C                    PTS:   1                    DIF:    1                    REF:   366

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

  1. Advertising that warns consumers about the dangers of overexposure to the sun, even during winter months, is an attempt by marketers of sunscreen to:
a. raise awareness of skin cancer.
b. find new uses for the product.
c. change product quality.
d. increase the frequency of use.

 

 

ANS:  D                    PTS:   1                    DIF:    3                    REF:   366

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

  1. In the late 1990s, Las Vegas witnessed a growth in the number of newly built casinos targeting the family vacation market. Advertising their facilities to families was an attempt to:
a. fill a high vacancy rate.
b. increase the number of users.
c. sell tickets to family shows.
d. enhance the city’s image.

 

 

ANS:  B                    PTS:   1                    DIF:    2                    REF:   366

OBJ:   11-9

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

MATCHING

 

Match each item with the correct statement below.

 

a. marketing mix h. product mix
b. benchmarking i. unsought product
c. product j. maturity stage
d. convenience product k. raw materials
e. shopping product l. total quality management
f. specialty product m. product life cycle
g. product line n. installations

 

 

  1. _____ is a continuous effort to improve products and work processes.

 

  1. The _____ is the blending of the four strategy elements to fit the needs and preferences of a target market.

 

  1. Farm products and mineral products are examples of _____.

 

  1. Firms often rely on _____ to set performance standards and achieve superior performance resulting in a competitive advantage in the marketplace.

 

  1. Sales of a product category continue to grow during the early part of the _____, but eventually reach a plateau as the backlog of potential customers dwindles.

 

  1. A bundle of physical, service, and symbolic attributes is a(n) _____.

 

  1. A product that is purchased frequently, immediately, and with minimal effort is classified as a(n) _____.

 

  1. A(n) _____ is marketed to consumers who may not yet recognize the need for it.

 

  1. A product that a consumer purchases after comparing competing offerings is called a(n) _____.

 

  1. Assortment of product offerings sold by a firm is called the _____.

 

  1. A(n) _____ offers unique characteristics that cause buyers to prize those particular brands.

 

  1. A series of related products offered by one company is a(n) _____.

 

  1. The specialty products of the business market are called _____.

 

  1. The four stages that a product will progress through is called the _____.

 

  1. ANS:  L                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  A                    PTS:   1                    DIF:    1                    REF:   344

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  K                    PTS:   1                    DIF:    1                    REF:   355

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  B                    PTS:   1                    DIF:    1                    REF:   357

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  J                     PTS:   1                    DIF:    1                    REF:   365

OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  C                    PTS:   1                    DIF:    1                    REF:   345

OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  D                    PTS:   1                    DIF:    1                    REF:   349

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  I                     PTS:   1                    DIF:    1                    REF:   361-362

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  E                    PTS:   1                    DIF:    1                    REF:   351

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  H                    PTS:   1                    DIF:    1                    REF:   359

OBJ:   11-7

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  F                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. ANS:  G                    PTS:   1                    DIF:    1                    REF:   364-365

OBJ:   11-6

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  N                    PTS:   1                    DIF:    1                    REF:   354

OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. ANS:  M                   PTS:   1                    DIF:    1                    REF:   363

OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

ESSAY

 

  1. List the six factors that distinguish services from goods.

 

ANS:

1. Services are intangible.
2. Services are inseparable from providers.
3. Services are perishable.
4. It is difficult for firms to standardize services.
5. Buyers often play important roles in the creation and distribution of services.
6. Service quality shows wide variations.

 

 

PTS:   1                    DIF:    2                    REF:   345-346         OBJ:   11-1

NAT:  AACSB Analytic | CB&E Model Product | R&D Knowledge of general business functions

TYP:   KN

 

  1. What are the three categories of convenience products? Give examples of each type.

 

ANS:

The three categories of convenience products are impulse goods and services (magazines and candy at the checkout aisle), staples (toiletries, detergents, milk, bread, and gasoline), and emergency goods and services (first-aid kit, snow blowers, and bottled water).

 

PTS:   1                    DIF:    2                    REF:   349-350         OBJ:   11-3

NAT:  AACSB Reflective Thinking | CB&E Model Product | R&D Managing strategy & innovation

TYP:   AP

 

 

 

 

 

 

 

 

 

 

 

  1. List and describe the categories of consumer products. How does this grouping influence the method in which the products are marketed?

 

ANS:

The most commonly used classification of consumer products divides products into three groups. Products consumers wish to purchase frequently, immediately, and with minimal effort are called convenience products. Products which are purchased after comparisons of product alternatives are made, based on factors such as price, style, and color, are called shopping products. Finally, products possessing some unique characteristics that cause consumers to prize a particular brand and to exert considerable effort to obtain that brand are called specialty products.

 

Knowing the group in which a product belongs to helps describe the behavior of consumers with regard to purchase planning time, frequency, willingness to shop, and whether or not there is a connection between the product price and perceived quality. Further, marketing mix decisions concerning price, promotion, and distribution are made easier. For example, the prices of convenience products are generally low, while prices for shopping and specialty goods are relatively higher. Also, the distribution channel length for convenience products is usually long, while the channel for shopping and specialty goods is shorter.

 

PTS:   1                    DIF:    3                    REF:   349-351         OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Discuss the characteristics of shopping products. What are homogeneous and heterogeneous products?

 

ANS:

Shopping products are products that the consumer lacks complete information about prior to the purchase, but gathers needed information during the buying process. The competitive offerings of shopping products are compared. Products that consumers consider to be very similar are considered homogeneous, and price and value are usually the prime consideration in the purchase. Heterogeneous products have perceived differences, and a purchase may be based on any number of variables including quality, appeal, uniqueness, color, and style.

 

PTS:   1                    DIF:    2                    REF:   350                OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. List five questions that classify consumer services.

 

ANS:

1. What is the nature of the service?
2. What type of relationship does the service organization have with its customers?
3. How much flexibility is there for customization and judgment on the part of the service provider?
4. Do demand and supply for the service fluctuate?
5. How is the service delivered?

 

 

PTS:   1                    DIF:    2                    REF:   351-352         OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Discuss two challenges presented by the consumer product classification system.

 

ANS:

First, the consumer product classification system assumes that all products fit neatly into one category. Many products share characteristics of more than one category. The purchase of an automobile, for example, has characteristics of both a shopping and specialty product. For some consumers, it may be more of a shopping product, while for others it may be more of a specialty product. Second, consumers differ in their buying patterns. For instance, one person may make an emergency visit to a dentist because of a toothache, while another may extensively compare prices, office hours, and other factors before selecting a dentist.

 

PTS:   1                    DIF:    3                    REF:   352                OBJ:   11-3

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. What are the major types of business products? What is the basis for this classification?

 

ANS:

Business products are classified on the basis of product uses rather than on the customer buying behavior. The five categories of business products are installations, accessory equipment, component parts and materials, raw materials, and supplies.

1.Installations are the speciality products of the business market,such as new factories,heavy equipment and telecommunication systems.

2.Accessory equipment are capital items that are typically less expensive and shorter lived than installations, such as hand tools, portable drills, and laptop computers.

3.Component parts and materials are finished business products that actually become part of the final product.

4.Raw materials are similar to component parts and materials in that they are used in producing the final product. They are farm and natural products such as eggs, coal, lumber and meat.

5.Suppliers are regular expense items that are necessary in the firms daily operation but are not part of the final product.

 

PTS:   1                    DIF:    1                    REF:   353-355         OBJ:   11-4

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. What is Total Quality Management (TQM)? Discuss the standards the United States and Europe have established in the quality management movement.

 

ANS:

a) Total Quality Management (TQM) is a firm’s expectation that employees continually improve products and work processes with the goal of achieving customer satisfaction and world-class performance.
b) The United States has established the Malcolm Bainbridge Award for excellence in quality management.
c) The European Union has developed ISO 9002 standards, which set international standards for quality management and assurance. These standards are designed to ensure consistent quality among products manufactured and sold throughout the nations of the European Union. Firms outside the European Union, fearing exclusion from this market, have moved quickly to meet the ISO 9002 standards.

 

 

PTS:   1                    DIF:    3                    REF:   357                OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Define benchmarking and discuss how it helps to improve a marketing strategy.

 

ANS:

Benchmarking is a process where an organization can continuously compare and measure itself against industry leaders to learn how the best become the best. Its purpose is to achieve superior performance that results in a competitive advantage in the marketplace.

 

Benchmarking involves:

a) Identifying processes that need improvement.
b) Comparing internal processes against similar processes of industry leaders in order to determine a firm’s strengths and weaknesses. This establishes a baseline for comparison. An external analysis does the same for the firm’s competition. A comparison of both sets of analysis can provide an objective basis for comparison of one’s firm with all others.
c) Implementing improvements and measuring the effect of new work practices on a continuing basis.

 

 

PTS:   1                    DIF:    2                    REF:   357-358         OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. What are the five variables of service quality? Define service gap.

 

ANS:

The five variables are: tangibles, reliability, responsiveness, assurances, and empathy. A service gap is the difference between the level of service customers expect and the level they think they’ve received. The service gap can be either favorable (better than expected) or unfavorable (worse than expected).

 

PTS:   1                    DIF:    2                    REF:   358-359         OBJ:   11-5

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

  1. How do elements of the marketing mix change during the product life cycle?

 

ANS:

Marketing mix goals in the introductory stage include development of distribution channels and introductory promotion to stimulate primary demand. Sometimes new product features may also be presented. During the growth period, with the entrance of competitors, it is important to stimulate trial through promotional inducements and word-of-mouth in an effort to develop selective demand. Price decreases are a major marketing mix change in the maturity period as firms seek to gain and maintain market share. Firms may move into international markets to offset mature domestic markets. Price decreases often continue into the decline stage. This further decreases profits for many firms and leads to a product deletion decision.

 

PTS:   1                    DIF:    2                    REF:   363-366         OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

  1. Identify and describe the stages of the product life cycle.

 

ANS:

a) Introductory Stage – Demand is stimulated for a new market entry. New technical features are often introduced to a new product category. Promotional campaigns directed toward consumers and channel members stress information about the new item. Financial losses are common due to high costs associated with promotion and research and development.
b) Growth Stage – This stage begins as demand reaches a level so that the firm begins to realize substantial profits from its earlier investment. Similar products begin to appear on the market.
c) Maturity Stage – Industry sales reach a plateau as the backlog of potential customers dwindles. Competition intensifies and individual firms’ profits decline. Promotional campaigns emphasize differences between competing brands. Some firms differentiate their offerings by emphasizing product attributes such as quality, reliability, and service. Available products exceed industry demand for the first time. Companies can only increase market share at the expense of competitors’ sales. Prices begin to fall, which usually leads to decreased revenues for all firms.
d) Decline Stage — Innovations and/or shifting consumer preferences lead to an absolute decline in industry sales. Industry profits decline or become negative, and firms drop these items from their product lines and seek to replace them with alternative items.

 

 

PTS:   1                    DIF:    3                    REF:   363-366         OBJ:   11-8

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

 

 

 

 

 

 

 

 

 

 

 

  1. Explain the concept of extending the product life cycle, and list actions that can be taken.

 

ANS:

Product life-cycle extension is a frequently-used strategy taken to add to the time period in which a product can continue to be profitably sold. Marketing managers can accomplish this and extend product life cycles indefinitely through actions they can take. Efforts to extend product life cycles can be especially successful if action is taken in the maturity stage. These actions are:

a) Increase the frequency of product usage by consumers.
b) Increase the number of users of the product.
c) Find new uses for the product.
d) Change the package size, product labels, or product quality.

 

 

PTS:   1                    DIF:    3                    REF:   366-367         OBJ:   11-9

NAT:  AACSB Analytic | CB&E Model Product | R&D Managing strategy & innovation

TYP:   KN

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