Chapter 10—Product Concepts
TRUE/FALSE
1. A product may be defined as everything, both favorable and unfavorable, that a person receives in an
exchange.
2. An elementary school teacher purchased a ream of art paper, a box of crayons, and some modeling
clay. The teacher intends to use these products in her classroom, so they would be classified as
business products.
3. Convenience products, though inexpensive, still require considerable shopping effort by buyers.
4. Given the many differences in majors available, living options, and image differences, universities
would be classified as a heterogeneous shopping product for most people.
5. Inez believes makeup is the most important part of her wardrobe. She spends considerable time
comparing the prices, skin tones, and color options available at various cosmetics counters in
department stores. For Inez, makeup is a convenience product.
6. Rolex watches are very expensive, can only be purchased in high-end jewelry stores located in large
metropolitan areas, and most buyers will accept no substitutes. Roles watches are an example of a
shopping product.
7. A product unknown to the potential buyers, or a known-product that the buyers does not actively seek
is referred to as an undesirable product.
8. Even though the growth of the service sector worldwide has been sluggish in the past decade, the
service sector now accounts for approximately one-fourth of the gross domestic product in the United
States.
9. Insurance companies are examples of service organizations.
10. Services tend to exhibit more search qualities than do tangible goods.
11. Services are considered inseparable because most services cannot be felt or touched in the same way
most goods can be sensed.
12. Greta, the owner of House Mouse Cleaning Services, must be physically present when she cleans a
house or office. The need for her presence as the service is performed is an example of the intangibility
of services.
13. Heterogeneity of services means the quality of a service may not be consistent.
14. Often hotels will offer deep discounts on weekends and during the off-season; for the same reason,
airlines will adopt a similar pricing strategy during off-peak hours. These services cannot be stored,
warehoused, or inventoried because they are perishable.
15. Coca-Cola is one of the world’s largest manufacturers of beverages. It makes over 2,800 different
beverage products, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks,
and energy drinks. The great variety of beverages made by Coca-Cola represents its product mix.
16. Product modification occurs when changes are made in how the product functions, its quality, or some
aesthetic characteristic of the product.
17. Chef’s Catalog built its reputation on selling the highest-quality baking ingredients. The catalog retailer
has added a line of fine kitchen tools and wants its customers to think of the retailer as a place to buy
everything needed to bake the finest breads and desserts—not just for buying the ingredients. The
marketing term for changing consumers’ perceptions of the Chef’s Catalog is segmentation.
18. Apple is known for its Macintosh, iPod, and iPhone products. Apple recently added the iPad product to
its list of products. The addition of the iPad was an example of a product line extension for the
company.
19. Isaac Golding, owner of a tutoring service, has developed a design for his firm that includes an owl
wearing large spectacles and carrying a satchel crammed full of books and papers. He plans to use this
design on all communications the firm sends out. This design is called the firm’s brand name.
20. Branding has three main purposes: product identification, repeat sales, and new-product sales.
21. Brand names such as Kleenex, UPS, Sony, Chevrolet, and Kellogg’s are likely to have less brand
equity than brand names like Viking, Zojirishi, Schimano, and Thule.
22. Sam likes Michelin tires. If he needs new tires and Michelin’s are not on sale, he is willing to pay a
higher price for Michelin rather than buy some other brand. Sam is brand loyal to Michelin.
23. Retailers love national brands because overhead is low and there are no marketing costs, and they
bring higher margins than private brands.
24. When the manufacturer of French’s classic yellow mustard introduced French’s Dijon mustard,
French’s Honey mustard, and French’s Sweet Onion mustard, it was an example of cobranding.
25. Trademark protection only lasts for five years.
26. The most important functions of packaging are to contain and protect products, promote products,
facilitate product storage, and facilitate recycling.
27. The nutrition label on a package is an example of persuasive labeling.
28. Due to the time required to scan them, universal product codes (UPCs) are typically placed on
merchandise that would be classified as shopping products.
29. A company that wants to market its product globally has only two branding strategies available: either
use the brand name everywhere or develop a new brand name for each different market.
30. Cultural traits can make a package design successful in one country and a failure in another.
31. A warranty does not confirm the quality or performance of a good or service.
32. All sales have an implied warranty under the Uniform Commercial Code.
MULTIPLE CHOICE
1. A _____ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be
tangible, intangible, a service, an idea, or a combination of these things.
a.
brand equity
b.
quality
c.
warranty
d.
transaction
e.
product
2. The _____ is the starting point in creating a marketing mix.
a.
price
b.
product
c.
distribution channel
d.
promotional media
e.
production line
3. Why is creation of a product the starting point for the marketing mix?
a.
The production department must know what to produce first.
b.
Production strategy is the first of the four Ps listed in the marketing mix.
c.
Determination of the price, promotional campaign, and distribution network cannot begin
until the product has been specified.
d.
Product development takes the longest amount of time to complete.
e.
Actually, the product does not have to be the starting point—promotional strategies are
often the starting point.
4. Which of the following is NOT an example of a product’s tangible feature?
a.
brand equity
b.
packaging
c.
color
d.
weight
e.
size
5. When a greenhouse plant grower sells plants to nursery retailers, is selling _____ products.
a.
specialty
b.
consumer
c.
convenience
d.
business
e.
unsought
6. Rock-Tenn produces cardboard cartons to be used by companies in the food industry. Rock-Tenn is
selling _____ products.
a.
specialty
b.
consumer
c.
business
d.
convenience
e.
unsought
7. The consumer products are usually classified is based on:
a.
how the market is segmented
b.
the way the products are manufactured
c.
the way products are used
d.
the physical attributes of the product
e.
the amount of effort consumers spend to acquire the product
8. There are so many high-definition television sets on the market, and they vary so much on price,
quality, and features that consumers often have trouble comparing them. A high-definition TV would
probably be considered a _____ product.
a.
convenience
b.
specialty
c.
heterogeneous shopping good
d.
homogeneous shopping good
e.
generic
9. _____ products are purchased with little shopping effort. These products typically are purchased
regularly, usually with little planning, and require wide distribution.
a.
Convenience
b.
Specialty
c.
Branded shopping
d.
Unbranded shopping
e.
Generic
10. The convenience product marketing strategy includes:
a.
wide distribution of the product
b.
higher than ordinary prices
c.
few retail outlets other than convenience stores
d.
significantly lower promotion budgets
e.
products that are not easily substitutable
11. Amy stopped by the grocery store to pick up a gallon of milk. As she was waiting to check out she
noticed that Soap Opera Digest had an interesting story about one of her favorite characters. As Amy
is a huge fan of the long running soap, she had to buy a copy. In this example, the Soap Opera Digest
is an example of a(n) _____ product.
a.
specialty
b.
convenience
c.
business
d.
shopping
e.
unsought
12. Compared to the other classifications of consumer products, shopping products are:
a.
widely available so they need little or no promotion
b.
usually less expensive than convenience products
c.
purchased without significant planning
d.
usually more expensive than convenience products and are found in fewer stores
e.
purchased immediately after the consumer realizes he or she needs them
13. Kathy is driving Chaz, her young son, home from soccer practice when Chaz say, “Mom, I’m thirsty.”
Kathy immediately pulls the SUV into the nearest gas station and buys Chaz a Coke. For Kathy, the
Coke is best described as an example of buying a _____ product.
a.
homogeneous shopping
b.
heterogeneous shopping
c.
convenience
d.
specialty
e.
component
14. Which of the following is the best example of a convenience product?
a.
concert tickets
b.
chewing gum
c.
jeans
d.
chemical for the swimming pool
e.
a birthday present
15. Which type of consumer product requires comparison shopping because it is usually more expensive
than a convenience product and is found in fewer stores?
a.
unsought product
b.
secondary product
c.
unique product
d.
shopping product
e.
selective product
16. Harrison wanted a gas water heater. He watched newspaper ads until he found one on sale. For
Harrison the water heater is a(n) _____ product.
a.
shopping
b.
convenience
c.
component
d.
unsought
e.
specialty
17. The two types of shopping products are:
a.
unsought and convenience
b.
generic and family
c.
exclusive and intensive
d.
heterogeneous and homogeneous
e.
consumer and business
18. Which of the following is the best example of a shopping product for most consumers?
a.
washing detergent
b.
crackers
c.
soft drink
d.
digital camera
e.
magazine
19. _____ are products consumers see as being basically the same, so consumers shop for the lowest price.
a.
Low-prestige specialty products
b.
Product equivalents
c.
Heterogeneous shopping products
d.
Generic convenience products
e.
Homogeneous shopping products
20. Andrea needs to find a kennel for boarding her son’s dogs. There are several different kennels in her
community, and Andrea believes all of them to be basically alike. The only feature she is genuinely
concerned about is low price. For Andrea, the kennel for boarding dogs would be classified as a(n)
_____ product.
a.
specialty
b.
unsought
c.
heterogeneous shopping
d.
basic convenience
e.
homogeneous shopping
21. _____ products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility.
Comparisons between these products are often quite difficult because they may have unique features
and different levels of quality and price.
a.
Product equivalents
b.
Comparative convenience products
c.
Homogeneous shopping products
d.
Product counterparts
e.
Heterogeneous shopping products
22. When Kyla wanted patio furniture, she visited stores that had outdoor furniture, including Home
Depot, Lowe’s, Target, and Howard Lumber Company to find the set that would look just right on her
patio. If Kyla represents a typical patio furniture shopper, you know this product is a(n):
a.
homogeneous luxury product
b.
shopping specialty good
c.
operating supply good
d.
convenience item
e.
heterogeneous shopping good
23. Which of the following products is most likely to be considered an example of a heterogeneous
shopping product?
a.
apartment
b.
laundry detergent
c.
electric automobile
d.
package of pens
e.
dog food
24. _____ products are searched for extensively, and substitutes are not acceptable. These products may be
quite expensive, and often distribution is limited.
a.
Exclusive shopping
b.
Homogeneous convenience
c.
Branded shopping
d.
Specialty
e.
Heterogeneous convenience
25. Bang & Olufsen make some of the best sound systems in the world. After years of development, Bang
& Olufsen recently released its new BeoLab 5 speakers. For audiophiles who demand the best in audio
equipment, the $19,950 Bang & Olufsen BeoLab 5 speakers represent an example of a(n) _____
product.
a.
heterogeneous shopping
b.
specialty
c.
homogeneous shopping
d.
convenience
e.
exclusive
26. Janet will only purchase Williams and Sonoma products for her kitchen. The products are expensive
but Janet feels they have the highest quality and will last a very long time. These products represent
_____ products.
a.
heterogeneous shopping
b.
specialty
c.
homogeneous shopping
d.
convenience
e.
business
27. Evan Zimmermann loves watches. He collects vintage Rolex sport models made between 1950 and
1960. He paid $1,500 for his first watch in 2000. Now, the watch is worth $15,000. For Evan, the
vintage watches are an example of a(n) _____ product.
a.
specialty
b.
consumer
c.
convenience
d.
business
e.
unsought
28. When deciding on distribution plans for specialty products, companies generally ensure that the items
are:
a.
made available only as private brands
b.
made available in a large number of stores in a geographic area
c.
made available only through the mail
d.
distributed to a considerable number of stores in a geographic area
e.
distributed to only a few stores in the geographic area
29. _____ products are products that are not known about or not actively searched for by consumers.
These products require aggressive personal selling and highly persuasive advertising.
a.
Hidden
b.
Specialty
c.
Equity
d.
Unsought
e.
Shopping
30. Unsought products typically are products that:
a.
consumers purchase when they see them in a convenient location
b.
consumers definitely don’t want
c.
only require reminder advertising to be successful
d.
require little or no decision making by the buyer
e.
consumers don’t know about or don’t actively look for
31. Alice is a very busy person and she hates to spend her time with yard work. She really likes the idea of
a synthetic lawn. However, she has never pursued the idea as she has two dogs in her back yard. June
does not know that several manufactures make synthetic grass that with an antibacterial agent to
minimize odors for pet owners. For Alice, the dog friendly synthetic lawns are a(n) _____ product
because she doesn’t know the product exists.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
convenience
e.
exclusive
32. Freda was proud of her shiny new iPhone. She was disappointed when she began to notice scratches
on its display surface. If Freda had of known about the clear static cling protective films that were
available to protect the iPhone display from scratches, she could have avoided this annoying problem.
For Freda, the protective films are a(n) _____ product.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
convenience
e.
consumer
33. In general, most consumers don’t spend a lot of time thinking about their funeral. So some funeral
home advertising tries to get them to think about their loved-ones and encourage preplanning their
funeral. This is an attempt to get people to think about a product that most consumers do not actively
seek. In other words, insurance is a(n) _____ product.
a.
heterogeneous shopping
b.
specialty
c.
unsought
d.
business
e.
consumer
34. A(n) _____ is the result of applying human or mechanical efforts to people or objects.
a.
application processor
b.
profit intermediary
c.
tangible product
d.
service
e.
nonprofit organization
35. “Girls Just Wanna Have Funds” is a Washington, D.C. support group that consist of mostly young
women that offers tips on budgeting and debt relief. As they state on their Web site, their goal is to
help women break financial ceilings “one stiletto at a time.” Girls Just Wanna Have Funds is providing
a _____ that is helpful to women that want to be financially savvy.
a.
synergy
b.
tangible resource
c.
tangible product
d.
service
e.
good
36. The service sector:
a.
has remained steady at 44 million jobs in the United States for the last 20 years
b.
employs roughly 81 percent of the U.S. workforce
c.
is rarely capital intensive, as most services do not need high technology
d.
is decreasing in importance in the United States
e.
tends to create fewer new jobs than the manufacturing industry
37. PayPal allows you to pay for items that you buy at online sites such as eBay without exposing your
credit card or bank account number. To use PayPal you simply select PayPal when checking out at the
online store, and then allow PayPal to pay directly from a credit card or from your PayPal balance or
linked bank account. PayPal would be classified as a:
a.
good
b.
tangible resource
c.
tangible product
d.
service
e.
nonprofit organization
38. All of the following are unique characteristics that distinguish services from goods EXCEPT:
a.
intangible
b.
inseparable
c.
searchable
d.
heterogeneous
e.
perishable
39. A service cannot be touched, seen, tasted, heard, or felt in the same manner in which goods can be
sensed and, therefore, is referred to as:
a.
impervious
b.
extraneous
c.
synergistic
d.
perishable
e.
intangible
40. A(n) _____ is a characteristic that can be easily assessed prior to purchase, such as the softness of a
mattress or the color of curtains.
a.
search quality
b.
intangible attribute
c.
experience quality
d.
credence quality
e.
heterogeneity feature
41. David and Kathy are trying to decide where to go on vacation. David has suggested a cruise. Since
neither of them have been on a cruise before, they will be unable to assess the _____ of a cruise until
they actually take the vacation.
a.
tangible attribute
b.
experience quality
c.
creative quality
d.
credence quality
e.
heterogeneity feature
42. “Girls Just Wanna Have Funds” is a Washington, D.C. support group that consist of mostly young
women that offers tips on budgeting and debt relief. Since you cannot evaluate the quality of the
financial advice until after you have received it, this is an example of the _____ characteristic of
service.
a.
Reliability
b.
Heterogeneous satisfaction
c.
Search quality
d.
Temporal quality
e.
Experience quality
43. A characteristic that consumers may have difficulty assessing even after purchase because they do not
have the necessary knowledge or experience is referred to as _____ quality.
a.
search
b.
experience
c.
credence
d.
abstract
e.
inert
44. Alec had his gall bladder removed, but he was unconscious during the operation. In fact, even though
he has an incision, he really has no way of knowing if the service was actually performed even after it
was allegedly performed. That is because medical services such as this exhibit _____ qualities.
a.
credence
b.
perishable
c.
experience
d.
search
e.
Homogeneity
45. Which of the following services would be most likely to exhibit strong credence qualities?
a.
a math tutorial service
b.
the repair of a leaky drain
c.
the preparation of a dead body for burial
d.
tax return preparation
e.
a landscaping service that mows lawns
46. Which unique characteristic of services means consumers must be present during the production?
a.
intangibility
b.
inseparability
c.
heterogeneity
d.
perishability
e.
connectivity
47. Management-labor mediation, child care, and college preparation classes are all services that are
produced and consumed at the same time. All of these services exhibit the service characteristic of:
a.
inseparability
b.
intangibility
c.
heterogeneity
d.
perishability
e.
variability
48. It is difficult for most of us to talk about mistakes we have made. Unfortunately, for organizations like
Consumer Credit Counseling to help you work through your financial issues, you must be willing to
honestly discuss your financial condition. In other words, for these organizations to help you must be
actually involved in the process of developing your financial plan, which points to the _____ nature of
services.
a.
intangibility
b.
inseparability
c.
heterogeneity
d.
perishability
e.
flexibility
49. Which unique characteristic of services is the variability of the inputs and outputs of services, which
causes services to tend to be less standardized and less uniform than goods?
a.
intangibility
b.
inseparability
c.
heterogeneity
d.
perishability
e.
flexibility
50. It is difficult to achieve consistency and standardization of services because of which service
characteristic?
a.
customization
b.
simultaneous production and consumption
c.
intangibility
d.
perishability
e.
heterogeneity
51. A reading service for the visually impaired requires each reader applicant to prepare and submit a one-
hour interview tape of material chosen by the service to determine whether the reader has pleasing
vocal characteristics and is accent-free so that it is not necessary to use the same reader every time.
The reading service is trying to limit problems associated with the service characteristic of:
a.
tangibility
b.
credence quality
c.
heterogeneity
d.
simultaneous production and consumption
e.
flexibility
52. Community Trust Bank has always prided itself on the friendliness of its employees. However, the
results of a recent mystery shopper study indicated that the bank tellers rarely greeted customers or
thanked them after the transaction. As a result, all bank employees that have customer contact are
going through a training program to enhance customer service. What unique aspect of services is
Community Trust attempting to address?
a.
heterogeneity
b.
perishability
c.
intangibility
d.
simultaneous production and consumption
e.
unfocused targeting
53. Due to service _____, services cannot be stored, warehoused, or inventoried.
a.
tangibility
b.
variability
c.
intangibility
d.
perishability
e.
heterogeneity
54. David and Kathy like to take their young son, Chaz, to Moe’s for lunch after church on Sunday. While
they like to eat at Moe’s anytime, Sunday is particularly good because it’s “kids-eat-free” day at Moe’s
southwestern grill. Until Moe’s began the reduced pricing program, Sundays were very slow. Now it is
one of the busiest days of the week. This price reduction was a way to contend with the service
characteristic of:
a.
variability
b.
perishability
c.
intangibility
d.
inseparability
e.
simultaneous production and consumption
55. A product line is a group of products that are closely related because the:
a.
products share the same product managers
b.
products all function in a similar manner and provide similar benefits
c.
same company developed the idea for each product
d.
products are all sold under the same brand name
e.
products are all priced about the same
56. There are a number of toothpastes marketed under the Crest brand including Cavity-protection Crest,
Sensitive-teeth Protection Crest, Baking Soda Crest, Tarter Protection Crest, and Crest for Kids. The
large variety of toothpastes under the Crest brand is an example of a:
a.
marketing mix
b.
product line
c.
product mix
d.
product equity
e.
product modification