47. A wrench used to make adjustments to machinery that produces copper wire is classified as
a. raw material.
b. component part.
c. process material.
d. major equipment.
e. accessory equipment.
48. An order of calculators with new features just arrived for the finance department of Nike. These calculators
represent
a. major equipment.
b. process materials.
c. component parts.
d. accessory equipment.
e. office materials.
49. Which business product classification is most appropriate for the wire used inside a stereo system?
a. Raw material
b. Major equipment
c. Accessory equipment
d. Component part
e. Process material
50. Automobile fenders are an example of
a. accessory equipment.
b. raw materials.
c. process materials.
d. component parts.
e. supplies.
51. become(s) a part of the physical product and consist(s) of either finished items ready for assembly or
products that need little processing before assembly.
a. Process materials
b. Supplies
c. Accessory equipment
d. Component parts
e. Major equipment
52. Sheet steel to be used in making automobile fenders is an example of
a. raw materials.
b. supplies.
c. component parts.
d. accessory equipment.
e. process materials.
53. Paper, pencils, oils, and are examples of supplies.
a. stamping machines
b. cleaning agents
c. cranes
d. calculators
e. lathes
54. If Texas Instruments hires an accounting firm to compute the company’s taxes, the accounting firm is providing
a(n) service.
a. business
b. governmental
c. institutional
d. tangible
e. mandatory
55. When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through
what is called
a. cyclical phases.
b. roller coaster revenue.
c. product stages.
d. product growth and decline.
e. product life-cycle.
56. In which order do the stages of the product life-cycle occur?
a. Growth, introduction, maturity, decline
b. Introduction, maturity, slowdown, decline
c. Innovation, distribution, maturity, decline
d. Introduction, growth, maturity, decline
e. Introduction, growth, slowdown, decline
57. Which of the following is not generally considered to be a stage in the product life-cycle?
a. Introduction
b. Growth
c. Maturity
d. Transition
e. Decline
58. The first stage of the product life-cycle is the stage.
a. inventive
b. launching
c. discovery
d. introduction
e. growth
59. All of the following are characteristics of the introduction stage of the product life-cycle except
a. usually, a low profit or even a loss.
b. the appearance on the market of refinements or extensions of the original product.
c. relatively few competitors.
d. often, high price.
e. low consumer awareness and acceptance of the product.
60. The marketing challenge of making potential customers aware of the product’s existence and its features, benefits,
and uses is prevalent in which of the product life-cycle stages?
a. Introduction
b. Maturity
c. Extension
d. Decline
e. Growth
61. The product life-cycle stage in which consumer awareness and acceptance of the product are low, there are few
competitors, and there is a gradual rise in sales because of promotion is called
a. extension.
b. introduction.
c. growth.
d. decline.
e. maturity.
62. The product life-cycle stage in which there is a rapid sales increase, other firms have begun to market competing
products, and lower unit costs and an overall tendency toward increased profit prevail is called
a. growth.
b. extension.
c. introduction.
d. decline.
e. maturity.
63. Sales of XYZ Corporation’s digital video cameras are rising rapidly, profits are peaking, and competitors are
entering the market. XYZ is able to maintain its market lead. Judging from this example, the digital video camera is
in which stage of the product life-cycle?
a. Introduction
b. Decline
c. Maturity
d. Growth
e. Evaluation
64. Koolers Incorporated feels that at its current stage-growth-it needs to meet its competition. It can best do this by all
of the following means except
a. initiating product improvements.
b. expanding the product line to appeal to specialized market segments.
c. lowering prices.
d. emphasizing customer service and prompt credit for defective products.
e. eliminating less profitable versions of the product.
65. The product life-cycle stage in which there is a decrease in the rate of sales growth, the sales curve begins to
decline, and dealers simplify their product lines is called
a. growth.
b. decline.
c. extension.
d. introduction.
e. maturity.
66. Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging
and new uses in products such as toothpaste and cat litter. These new uses of products and other modifications are
generally created during the phase of the product life-cycle.
a. growth
b. introduction
c. maturity
d. extension
e. decline
67. All of the following are characteristics of the maturity stage of the product life-cycle except
a. a peak in the sales curve.
b. a decline in the sales curve.
c. simplification of product lines.
d. increased distribution.
e. increased price competition.
68. Razor Company’s blades are in the maturity stage of the product life-cycle. How can the company strengthen its
market share?
a. Eliminate less profitable versions of the product
b. Redesign the packaging
c. Make no style changes
d. Emphasize customer service
e. Watch for the early buying patterns
69. A product usually declines because of technological advances or environmental factors or because
a. the item is very popular.
b. the price is too low.
c. consumers have switched to competing brands.
d. the price is too high.
e. no ads or sales incentives have been used.
70. General Mills has been able to extend the life of Bisquick baking mix by
a. significantly improving the product’s formulation.
b. providing good customer service.
c. including recipes in the box.
d. improved advertising.
e. using personal selling.
71. If Tyson, a poultry producer, decided to start producing veggie burgers, this would be an example of
a. developing an entirely new product line.
b. expanding the depth of the marketing mix.
c. extending an existing product line.
d. an aesthetic product modification.
e. narrowing the marketing mix.
72. Borden, Inc. offers pasta, snacks, grocery, and dairy items as well as films, adhesives, and other nonfood products.
These products are referred to as Borden’s
a. product mix.
b. product line.
c. product differentiation.
d. product life-cycle.
e. inventory mix.
73. When Pepsi introduced Mountain Dew Code Red, it was
a. expanding the width of its marketing mix.
b. increasing the depth of a product mix.
c. making minor modifications that did not broaden the marketing mix.
d. narrowing its marketing mix.
e. replacing poorly performing products.
74. WD–40, Inc. markets only one product, its namesake chemical lubricant. The company offers the product in several
different container sizes: smaller ones for household use, and larger ones for industrial use. WD–40 would be
considered as having a
a. wide product mix.
b. broad product line.
c. narrow product mix.
d. differentiated product line.
e. brand name.
75. Car Tunes, a national car stereo retailer, markets stereos and speakers. The company will soon sell car alarms and
cellular phones to its product mix.
a. modify
b. broaden
c. narrow
d. customize
e. adapt
76. When a company changes one or more of a product’s characteristics to manage its product mix, it is engaging in
modification.
a. quality
b. functional
c. aesthetic
d. product
e. market
77. For product modification to be effective, all but which of the following conditions must be met?
a. The modification should make the product more consistent with consumers‘ desires.
b. The product must be modifiable.
c. Consumers must be able to perceive that a modification has been made.
d. Modification should allow the product to provide greater satisfaction.
e. The product must be an appliance.
78. When Duracell came out with a new battery that significantly outlasted the company‘s earlier product, the battery
had undergone a(n) modification.
a. functional
b. feature
c. quality
d. aesthetic
e. market
79. The redesign of a bicycle to improve its safety is an example of a(n) modification.
a. visual
b. functional
c. quality
d. aesthetic
e. texture
80. What type of product modification is likely to make the greatest impact on a food product?
a. Quantity
b. Aesthetic
c. Functional
d. Versatility
e. Texture
81. After several years of success with the product line, Procter & Gamble introduced its popular Sure deodorant in
three new scents. This is an example of modification.
a. functional
b. feature
c. quality
d. aesthetic
e. market
82. Why should companies develop and introduce new products?
a. To keep their product designers busy
b. Because failing to do so can threaten the future success of the firm
c. Because it is relatively inexpensive and therefore worth the time
d. To replace deleted products so the broadness of the marketing mix remains unchanged
e. Because new products are almost always successful
83. Products that are designed to be similar to and compete with existing products of other firms are called
a. innovations.
b. generics.
c. imitations.
d. house brands.
e. adaptations.
84. Entirely new products are called
a. innovations.
b. generics.
c. imitations.
d. house brands.
e. adaptations.
85. The stage in the evolution of a new product in which a pool of ideas is created is called
a. product development.
b. screening.
c. idea generation.
d. test marketing
e. business analysis.
86. TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food
items would appeal to them for dessert or snacks. The company is in which phase of new product development?
a. Idea generation
b. Product development
c. Test marketing
d. Screening
e. Business analysis