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
True
Easy
111. Supporting services, such as installation and guarantees, are part of a product.
a.
True
b.
False
True
Easy
112. The core product element of the total product can include installation, delivery, training, and financing.
a.
True
b.
False
False
Easy
True
Easy
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
True
Easy
115. Use of the product is the most important means of distinguishing consumer products from business products.
a.
True
b.
False
True
Easy
116. The two major product categories are business and institutional.
a.
True
b.
False
False
True
Easy
117. A product’s classification can influence its price, distribution, and promotion.
a.
True
b.
False
True
Easy
118. Bread is usually a convenience product.
a.
True
b.
False
True
Moderate
119. Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.
a.
True
b.
False
False
Easy
120. Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.
a.
True
b.
False
False
Moderate
121. Per-unit gross margins on convenience products are relatively high.
a.
True
b.
False
False
Moderate
122. The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.
a.
True
b.
False
False
Moderate
123. Buyers want to exert only minimal effort to obtain shopping products.
a.
True
b.
False
False
Moderate
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
True
125. Obtaining a specialty product involves a considerable amount of comparison activity.
a.
True
b.
False
False
Easy
126. Accessory equipment becomes a part of the finished product.
a.
True
b.
False
False
Easy
127. Component parts usually need to be processed significantly before they are used in production.
a.
True
b.
False
False
Easy
128. Process materials are used directly in the production of products.
a.
True
Easy
b.
False
129. “Business Services” is not a category or type of business product.
a.
True
b.
False
False
Moderate
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
False
Moderate
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
True
Easy
True
Easy
132. Product mix refers to a related group of products in the product line.
a.
True
b.
False
False
Easy
133. The depth of a product mix is measured by the average number of product types in a product line.
a.
True
b.
False
True
Easy
134. The width of a product mix refers to the number of generic products offered by a company.
a.
True
b.
False
False
Easy
135. A product mix is the composite or total group of products that an organization makes available to customers.
a.
True
b.
False
True
Easy
136. Procter & Gamble has a wider product mix than does Baskin Robbins.
a.
True
b.
False
True
Moderate
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
False
Moderate
138. Many products never get beyond the introduction stage.
a.
True
b.
False
True
Easy
139. Communicating product benefits to consumers is very important in the introduction stage.
a.
True
b.
False
True
140. New products seldom generate enough sales to bring immediate profits.
a.
True
b.
False
True
Easy
141. Price cuts are typical in a product’s growth stage.
a.
True
b.
False
True
Easy
142. During the growth stage, promotion costs rise as a percentage of total sales.
a.
True
b.
False
False
Moderate
143. Intensive competition causes price increases during the growth stage of the product life cycle.
a.
True
b.
False
Easy
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
False
Moderate
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
True
Easy
146. Profits decline in the maturity stage, largely because of increased competition.
a.
True
b.
False
True
Easy
False
Moderate
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
True
Easy
149. Many products are in the maturity stage of the product life cycle.
a.
True
b.
False
True
Easy
150. Changing the product’s quality is a distinct alternative in the maturity stage of the product life cycle.
a.
True
b.
False
True
Moderate
False
Moderate
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
False
Moderate
152. During a product’s maturity stage, all sales promotion efforts are focused on consumers.
a.
True
b.
False
False
Moderate
153. Strategies relating to price become more mixed during a product’s maturity stage.
a.
True
b.
False
True
Easy
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
True
155. Sometimes new marketing channels open up in the decline stage.
a.
True
b.
False
True
Moderate
156. Promotion decreases in importance during a product’s decline stage.
a.
True
b.
False
True
Moderate
157. Advertising used in the decline stage may prolong the life of the product.
a.
True
b.
False
True
Moderate
158. Sellers can sometimes prolong a product’s life cycle.
a.
True
b.
False
Easy
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
True
Easy
160. Trial is the first stage of the product adoption process.
a.
True
b.
False
False
Easy
161. A buyer becomes aware of the product during the evaluation phase of the product adoption process.
a.
True
b.
False
False
Easy
True
Easy
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
True
Easy
164. The first adopters of a product are the innovators.
a.
True
b.
False
True
Easy
165. Early adopters are the first group of consumers to adopt a new product.
a.
True
b.
False
False
Easy
False
Easy
166. Laggards are the last to adopt a new product and usually distrust new products.
a.
True
b.
False
True
Easy
167. When a successful brand such as Frito-Lay develops a new product, it will always succeed.
a.
True
b.
False
False
Moderate
168. Explain the difference between brand name and trademarks.
Easy
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?