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b.
False
110. A service is intangible and is the result of the application of human or mechanical efforts to people or objects.
a.
True
b.
False
111. Supporting services, such as installation and guarantees, are part of a product.
a.
True
b.
False
112. The core product element of the total product can include installation, delivery, training, and financing.
a.
True
b.
False
113. The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the
sounds and smells all contribute to the experiential element of its total product.
a.
True
b.
False
114. The buyer's intent can determine whether an item is classified as a consumer or a business product.
a.
True
b.
False
115. Use of the product is the most important means of distinguishing consumer products from business products.
a.
True
b.
False
116. The two major product categories are business and institutional.
a.
True
b.
False
117. A product's classification can influence its price, distribution, and promotion.
a.
True
b.
False
118. Bread is usually a convenience product.
a.
True
b.
False
119. Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.
a.
True
b.
False
120. Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.
a.
True
b.
False
121. Per-unit gross margins on convenience products are relatively high.
a.
True
b.
False
122. The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.
a.
True
b.
False
123. Buyers want to exert only minimal effort to obtain shopping products.
a.
True
b.
False
124. Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a
particular shopping product.
a.
True
b.
False
125. Obtaining a specialty product involves a considerable amount of comparison activity.
a.
True
b.
False
126. Accessory equipment becomes a part of the finished product.
a.
True
b.
False
127. Component parts usually need to be processed significantly before they are used in production.
a.
True
b.
False
128. Process materials are used directly in the production of products.
a.
True
b.
False
129. "Business Services" is not a category or type of business product.
a.
True
b.
False
130. A product line is a particular version of a product that can be designated as a distinct offering on the organization's
list of products.
a.
True
b.
False
131. A product line includes a group of closely related product items that are considered to be a unit because of marketing,
technical, or end-use considerations.
a.
True
b.
False
132. Product mix refers to a related group of products in the product line.
a.
True
b.
False
133. The depth of a product mix is measured by the average number of product types in a product line.
a.
True
b.
False
134. The width of a product mix refers to the number of generic products offered by a company.
a.
True
b.
False
135. A product mix is the composite or total group of products that an organization makes available to customers.
a.
True
b.
False
136. Procter & Gamble has a wider product mix than does Baskin Robbins.
a.
True
b.
False
137. The original marketing strategy should not be altered in any way as a product travels through the stages of the
product life cycle because consumers can become confused.
a.
True
b.
False
138. Many products never get beyond the introduction stage.
a.
True
b.
False
139. Communicating product benefits to consumers is very important in the introduction stage.
a.
True
b.
False
140. New products seldom generate enough sales to bring immediate profits.
a.
True
b.
False
141. Price cuts are typical in a product's growth stage.
a.
True
b.
False
142. During the growth stage, promotion costs rise as a percentage of total sales.
a.
True
b.
False
143. Intensive competition causes price increases during the growth stage of the product life cycle.
a.
True
b.
False
144. Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of
aggressive competition.
a.
True
b.
False
145. Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain
market share.
a.
True
b.
False
146. Profits decline in the maturity stage, largely because of increased competition.
a.
True
b.
False
147. A seller's profits peak in the maturity stage of a product's life cycle.
a.
True
b.
False
148. Sales peak in a product's maturity stage.
a.
True
b.
False
149. Many products are in the maturity stage of the product life cycle.
a.
True
b.
False
150. Changing the product's quality is a distinct alternative in the maturity stage of the product life cycle.
a.
True
b.
False
151. The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may
bring an early death to the product.
a.
True
b.
False
152. During a product's maturity stage, all sales promotion efforts are focused on consumers.
a.
True
b.
False
153. Strategies relating to price become more mixed during a product's maturity stage.
a.
True
b.
False
154. A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product
mix.
a.
True
b.
False
155. Sometimes new marketing channels open up in the decline stage.
a.
True
b.
False
156. Promotion decreases in importance during a product's decline stage.
a.
True
b.
False
157. Advertising used in the decline stage may prolong the life of the product.
a.
True
b.
False
158. Sellers can sometimes prolong a product's life cycle.
a.
True
b.
False
159. When an organization introduces a new product, people do not all begin the adoption process at the same time, nor
do they move through the process at the same speed.
a.
True
b.
False
160. Trial is the first stage of the product adoption process.
a.
True
b.
False
161. A buyer becomes aware of the product during the evaluation phase of the product adoption process.
a.
True
b.
False
162. In the awareness stage of the product adoption process, the buyer seeks information about the product.
a.
True
b.
False
163. "The people who are in-the-know" are the early adopters.
a.
True
b.
False
164. The first adopters of a product are the innovators.
a.
True
b.
False
165. Early adopters are the first group of consumers to adopt a new product.
a.
True
b.
False
166. Laggards are the last to adopt a new product and usually distrust new products.
a.
True
b.
False
167. When a successful brand such as Frito-Lay develops a new product, it will always succeed.
a.
True
b.
False
168. Explain the difference between brand name and trademarks.
169. What is brand loyalty? Explain the three degrees of brand loyalty.
170. How do sellers benefit from the use of brand names and brand marks?
171. What are private distributor brands? Describe their characteristics.
172. What is brand equity, and what are the major elements that underlie brand equity?
173. What are the factors that marketers should consider while selecting a brand name?
174. Discuss the branding strategies marketers can use. What are the two policies used by a firm to brand its products?
175. What steps should a marketer take to protect a brand name from use by others?
176. What is co-branding? Explain what makes co-branding effective.
177. What functions do packages perform? What are the factors marketers should consider when developing packages?
