1. Would a new car equipped with a bumper jack, jack handle, spare tire, and warranty be the same product as the
same car without these features? Explain.
2. Give the characteristics of shopping products, specialty products, and convenience products. Illustrate those
characteristics with examples of products that fit the categories.
3. Identify and describe the major stages of the product life-cycle.
4. At what stage in the product life-cycle would sales volume tend to decrease sharply? Why?
5. Are a product mix and a product line the same thing? Why or why not?
6. Identify and discuss the three major ways that a product mix can be improved.
7. What are the major phases involved in the new product development process?
8. Developing new products is risky, time consuming, and expensive with a high rate of failure. Nevertheless, “failing
to introduce new products can be just as hazardous.” What is meant by this quote?
9. Is McDonald’s “golden arches” symbol a brand name or a brand mark? Define each term, and state how they
differ.
10. What is brand equity? Describe the major factors that make up brand equity.
11. Would Coca-Cola be a generic brand? Why or why not? How would you expect the package and label of a generic
product to look?
12. How does product differentiation allow a firm to exert some control over a product’s price?
13. Describe non-price competition. When might it be used?
14. Under what circumstances might a firm use survival pricing objectives? How would a firm implement such a
strategy?
15. What is a status-quo pricing objective?
16. Describe the three major pricing methods that firms employ.
17. When might a firm use a price-skimming strategy? When might it use penetration pricing? Describe each strategy.
18. Identify and discuss three types of pricing associated with business products.
Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and
develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company
sells men’s clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate
production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company‘s previous owner was not aware
of the product life-cycle because the company kept items that were obviously too old and out–of-date. Also, because
of the high turnover, employees did not have good knowledge of the different product lines and did not know the
difference between a product line and a product mix. To move the company forward, Eric thought of the
following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating
the out–of-date products.
19. Refer to Your Way, Inc. What type of products is sold at Your Way?
a. Shopping products
b. Business products
c. Specialty products
d. Convenience products
e. Unique products
20. Refer to Your Way, Inc. The sewing machines are considered for Your Way.
a. raw materials
b. accessory equipment
c. component parts
d. process material
e. major equipment
21. Refer to Your Way, Inc. If Eric wanted to teach his employees about the stages of a product’s life-cycle, he should
talk about all of the following except
a. expansion.
b. decline.
c. introduction.
d. growth.
e. maturity.
22. Refer to Your Way, Inc. Which of the following descriptions should Eric use to best explain the difference between
the product line and product mix?
a. The product line is a group of similar products that differ only in relatively minor characteristics, whereas
product mix is all the products a firm offers for sale.
b. The product mix is a group of similar products that differ only in relatively minor characteristics, whereas
product line is all the products a firm offers for sale.
c. The product line is a group of unrelated products, whereas product mix is all the products a firm offers for
sale.
d. The product line is a group of similar products, whereas product mix is all products that are different.
e. There is no difference between a product line and product mix.
23. Refer to Your Way, Inc. If Eric wanted to develop a new product, he would begin with
a. concept testing.
b. screening.
c. product analysis.
d. idea generation.
e. marketing analysis.
Click It, Inc.
Travis is a salesperson for Click It, Inc. Click It does not sell products with its own brand name. Instead, its
products are created for different retail stores and carry the store brand. Travis thought that several changes
needed to be made to a particular product, but Click It management reminded him that the stores, not Click It,
owned the brand.
However, because Click It had been concerned about dropping sales, management listened to Travis‘s concerns
about the company’s pricing. He suggested using a different pricing strategy. More specifically, he felt that the
company should incorporate a multiple-unit pricing strategy because it would then allow Click It to set a single price
for multiple units. This had the potential of increasing sales and therefore profits, so management agreed to consider
Travis‘s suggestion.
24. Refer to Click It, Inc. Because Click It sells its products under different brand names, each product is a
a. manufacturer brand.
b. private brand.
c. producer brand.
d. generic brand.
e. no name brand.
25. Refer to Click It, Inc. When Travis thinks of products and brands adding value to the company that sells them,
which concept is he referring to?
a. Equilibrium brand
b. Brand extension
c. Generic name
d. Brand demand
e. Brand equity
26. Refer to Click It, Inc. When Click It displays information on a product or its package, this refers to
a. supply.
b. pricing.
c. labeling.
d. brand equity.
e. demand.
27. Refer to Click It, Inc. As Click It management considers the pricing issues, they should know that all of the
following are major pricing objectives except
a. status-quo pricing.
b. market-share goals.
c. survival.
d. profit minimization.
e. target return on investment.
28. Refer to Click It, Inc. The multiple-unit pricing strategy suggested by Travis is a(n) strategy.
a. new product
b. psychological
c. equilibrium
d. promotional
e. place
29. Everything that one receives in an exchange, including all tangible and intangible attributes and expected benefits, is
called a
a. package.
b. contract.
c. product.
d. trade.
e. warranty.
30. A good or service that is intended primarily for personal or household use is called a(n) product.
a. convenience
b. business
c. specialty
d. consumer
e. organizational
31. A good or service intended primarily for use in producing other goods or services is a product.
a. production
b. business
c. specialty
d. component
e. supply
32. For a product such as staples, which of the following determines whether it is a consumer product or a business
product?
a. Quantity purchased
b. Use of the product
c. Basic function the product provides
d. Whether it is purchased for cash or credit
e. Need satisfied
33. Consumers would most likely treat candy bars as products.
a. business
b. shopping
c. specialty
d. convenience
e. household
34. Energizer batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more
than one battery at a time. Energizer batteries would be classified as a product.
a. household
b. shopping
c. luxury
d. specialty
e. convenience
35. Consumer products can be divided into the following three categories:
a. convenience, shopping, and business.
b. shopping, convenience, and specialty.
c. convenience, component, and accessory.
d. shopping, component, and specialty.
e. business, specialty, and shopping.
36. Bread, gasoline, and are examples of convenience products.
a. cars
b. furniture
c. newspapers
d. large appliances
e. a cruise
37. Consumers would most likely treat personal computers as products.
a. business
b. convenience
c. specialty
d. shopping
e. luxury
38. Chris and Kimberly White decided to buy new furniture for their bedroom. They spent considerable time shopping
around, comparing prices and styles. Bedroom furniture is best classified as a product.
a. convenience
b. business
c. shopping
d. specialty
e. major equipment
39. Carmen Cattucci wanted to buy a new car. She visited several dealers to compare prices, styles, and dealer
reputations. Finally, she bought a car from a local dealer. The purchase of a car is an example of a
a. convenience product.
b. specialty product.
c. business product.
d. shopping product.
e. major equipment item.
40. Appliances, men‘s suits, and are examples of shopping products.
a. bicycles
b. process materials
c. chewing gum
d. soft drinks
e. cranes
41. Renee collects antique Fabergé eggs. For most of these eggs, only one or a few were created of each design.
These eggs would best be classified as products.
a. specialty
b. convenience
c. business
d. shopping
e. luxury
42. A consumer product for which buyers will not accept a substitute, for which purchasers do not compare
alternatives, and that is purchased infrequently and with extra effort on the buyer’s part is a product.
a. luxury
b. business
c. specialty
d. shopping
e. convenience
43. Which of the following is an example of a raw material that would be used in the production of a physical product?
a. Steel sheets
b. Paper
c. Plastic d.
Timber e.
Gasoline
44. Iron ore in a steel plant is an example of
a. supplies.
b. component parts.
c. raw materials.
d. process materials.
e. accessory equipment.
45. Mama Mia restaurant purchased two large ovens for its kitchen. These ovens are an example of which type of
business product?
a. Convenience product
b. Accessory equipment
c. Major equipment
d. Component parts
e. Process material
46. All of the following are business products except
a. color televisions in the electronics department of a large retail store.
b. iron ore in a steel plant.
c. small hand tools in an automobile repair shop.
d. toner cartridges in the supply closet of a word processing center.
e. a new appliance in someone’s home.