Chapter 11—Product Concepts
ESSAY
1. What is a product?
2. Describe and illustrate the four major categories of consumer products.
3. Distinguish between consumer products and business products.
4. Discuss the implications for a firm’s marketing strategy of classifying a product as a convenience,
shopping, specialty, or unsought item.
5. Discuss some of the issues a marketer should consider when marketing a shopping product.
6. Identify and describe the major categories of business products.
7. Discuss the dimensions of a product mix.
8. Identify the major stages of the product life cycle, and explain how industry sales and profits vary
across these stages.
9. For each product life cycle stage, discuss the strategic implications.
10. Explain the major stages of the product adoption process.
11. Discuss the marketing efforts that are likely to be used during the growth stage of the product life
cycle.
12. What major changes in a marketing strategy may be required as a product moves into the maturity
stage of the product life cycle?
13. Discuss the concept of “sustainability” and how it is related to product decisions.
14. What steps can be taken to reduce the risk of product failure?
MULTIPLE CHOICE
15. A(n) ____ is a concept, philosophy, or image.
a.
product
b.
good
c.
idea
d.
service
e.
issue
16. MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets
a.
services.
b.
ideas.
c.
goods.
d.
tangible products.
e.
features.
17. According to the text, a product is defined as
a.
anything the customer receives in an exchange.
b.
the physical object the customer receives in an exchange.
c.
the service that is rendered to a customer.
d.
the idea that the customer receives in an exchange.
e.
goods and services the customer receives in an exchange.
18. To make intangible products more tangible or real to the consumer, marketers often
a.
use low prices on intangible goods.
b.
use symbols or cues to help symbolize product benefits.
c.
use external reference prices.
d.
use multiple channels of distribution.
e.
offer more support services with such products.
19. Which of the following best illustrates how a firm can use a symbol to make an intangible product
more tangible?
a.
McDonald’s arches
b.
Mercedes Benz emblem
c.
Nike swoosh
d.
Traveler’s Insurance umbrella
e.
Arrows on Wrigley gum packages
20. A light bulb can be all of the following except
a.
a consumer product.
b.
a business product.
c.
either a consumer product or a business product.
d.
a business product if it is used to light an assembly line in a factory.
e.
a consumer product if it is used to light the office of the board of directors.
21. Products are classified as being business or consumer products according to the
a.
number of buyers involved in the decision.
b.
buyer’s intended use of the product.
c.
seller’s intended use of the product.
d.
location of use.
e.
types of outlets from which they are purchased.
22. Which of the following is always used to determine the classification of a good?
a.
Buyer’s intent for using the product
b.
Amount of shopping required by the buyer to obtain the product
c.
Price of the product
d.
Specific product features
e.
Industry competitors
23. Ava, a purchasing agent for Trailsend Transport, is currently buying carpet from CarpetOne Inc. for
use in an office area at Trailsend. While she is discussing the details of this carpet, the representative
from CarpetOne tells her that she can see the actual product in one of their retail stores before
finalizing the purchase. While in the retail store at CarpetOne, Ava not only approves the purchase for
the office, but also decides she would like to purchase some of the same carpet for her home. The first
carpet purchase is considered a ____ and the second carpet purchase is considered to be a ______.
a.
personal purchase; business purchase
b.
business product; business product
c.
consumer product; consumer product
d.
business product; consumer product
e.
consumer product; business product
24. Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam’s Club and has a
new tire installed. Ryan’s purchase of a new tire in this situation is considered to be
a.
a shopping good
b.
a convenience good
c.
an unsought good
d.
a specialty good
e.
an industrial good
25. Energizer batteries would be classified as which type of product?
a.
Convenience
b.
Shopping
c.
Specialty
d.
Unsought
e.
Industrial service
26. Lindsay stops by the Safeway grocery, her preferred store, on the way home from work. She picks up
her usual brand of laundry detergent and orange juice, but she sees that there are no more range-free
eggs available. Lindsay is very concerned about the ethical treatment of animals and so she leaves
Safeway and goes to another grocery to purchase the range-free eggs. Lindsay’s purchase of the
laundry detergent and orange juice would most likely be classified as _____ products. Her purchase
of the eggs would most likely be classified as ______ products.
a.
convenience; brand loyal
b.
convenience; shopping
c.
convenience; specialty
d.
shopping; specialty
e.
shopping; shopping
27. Dannon Yogurt represents what type of product for most consumers?
a.
Convenience
b.
Business
c.
Shopping
d.
Specialty
e.
Durable
28. Convenience products are
a.
relatively inexpensive, frequently purchased items for which buyers exert only minimal
purchasing effort.
b.
frequently purchased items for which buyers are willing to exert considerable effort.
c.
frequently purchased items that are found in certain retail outlets.
d.
items that are expensive but are easy to purchase.
e.
items that require some purchase planning and for which the buyer often will not accept
substitutes.
29. Which of the following statements does not apply to convenience goods?
a.
Consumers are brand loyal to convenience products and are not likely to substitute other
brands.
b.
Convenience products require minimal shopping effort.
c.
Marketing of convenience products requires intensive exposure of these goods in as many
stores as possible.
d.
Consumers tend to feel that the most desirable retail facility for convenience products is
the closest one.
e.
Colas, gasoline, and bread are good examples of convenience goods.
30. Products for which buyers are willing to spend much time comparing stores and brands for differences
in prices, product features, and services are called ____ products.
a.
shopping
b.
specialty
c.
service
d.
convenience
e.
unsought
31. Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to
compare rates and chose a flight on Southwest Air Lines because, for a similar price to other airlines, it
had a better reputation for service. For Shannon, this flight is an example of which type of product?
a.
Shopping
b.
Convenience
c.
Specialty
d.
Unsought
e.
Durable
32. Gap clothing stores sell primarily what type of products?
a.
Convenience
b.
Shopping
c.
Unsought
d.
Nondurable
e.
Specialty
33. Shopping products have a ____ inventory turnover and need ____ distribution outlets than
convenience goods.
a.
similar; more
b.
higher; fewer
c.
higher; more
d.
lower; more
e.
lower; fewer
34. Byron is interested in buying an antique vase for his grandmother’s birthday. He visits an antique
store and buys the first vase he sees because it is something he thinks his grandmother would like.
Byron does not visit another store and compare other vases. For Byron, this purchase is most likely
considered a(an) _____ good.
a.
convenience
b.
specialty
c.
shopping
d.
unique
e.
unsought
35. The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue
Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits
after they arrive. For Gwen, Blue Bell represents a(n) ____ product.
a.
convenience
b.
shopping
c.
specialty
d.
unsought
e.
durable
36. A specialty product
a.
requires minimal effort to purchase.
b.
is purchased frequently.
c.
requires purchase planning, and the buyer will not accept substitutes.
d.
is generally less expensive than other items in the same product class.
e.
prompts the purchaser to make comparisons among alternatives.
37. David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own
the “special” bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents.
This is an example of a(n) ____ product.
a.
shopping
b.
unique
c.
specialty
d.
historical
e.
unsought
38. As Beth and Rob search for a new home, they are interested only in houses built by a particular
builder. This purchase is characteristic of a(n) ____ product.
a.
branded
b.
non-durable
c.
unique
d.
shopping
e.
specialty
39. Jose went skiing one weekend with several of his friends. While at the slope, Jose injured his leg and
needed to see a doctor. Jose is likely going to view solutions to his problem as
a.
specialty products.
b.
installations.
c.
unsought products.
d.
shopping products.
e.
convenience products.
40. Nick Arnold’s Auto Towing Service would best be described as a(n) ____ product.
a.
convenience
b.
unsought
c.
specialty
d.
durable
e.
shopping
41. Business products are
a.
purchased for personal consumption.
b.
chosen on the basis of preferences expressed by a business procurement department.
c.
purchased for both their functional aspects and their psychological rewards.
d.
classified according to their characteristics and intended uses.
e.
not purchased by nonbusiness organizations.
42. Facilities, factories, and production lines with very large equipment are all classified as
a.
accessory equipment.
b.
permanents.
c.
installations.
d.
component parts.
e.
MRO facilities.
43. Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These
ovens are an example of which type of business product?
a.
Raw materials
b.
Installations
c.
Accessory equipment
d.
Component parts
e.
Process materials
44. As the production manager of an engineering firm, you went out and bought a metal cutting machine.
What you have purchased can best be classified as a
a.
raw material.
b.
processed component.
c.
component part.
d.
service.
e.
business product.
45. An accountant buys a supply of pencils to be used in calculating the taxes of other business firms.
Based on this information, pencils in this case would be considered what type of product?
a.
Business
b.
Process materials
c.
Raw material
d.
Convenience
e.
Consumer
46. Which of the following is not a business product?
a.
Oil to be refined into fuel
b.
Chips to be integrated into components for personal computers
c.
Paper, pens, and tape to be used in an office
d.
Marketing consulting services to aid a company in marketing a new product
e.
Calculators bought to help individuals complete their personal federal income tax forms
47. Intuitiv Manufacturing’s large plastics molding machine suddenly broke down during its day shift.
When considering the purchase of available alternatives, Intiutiv decided to rent one for the next two
years instead of buying one. In this situation, the large plastics molding machine it rented would be
classified as
a.
an installation.
b.
accessory equipment.
c.
an unsought good.
d.
a process material.
e.
MRO supplies.
48. Business products are classified into the following seven categories according to characteristics and
intended uses: raw materials, installations, accessory equipment, component parts, process materials,
business services, and
a.
production activities.
b.
service assistance.
c.
specialty industrial products.
d.
computer programming and operation services.
e.
MRO supplies.
49. Minerals, chemicals, timber, and agricultural products are considered
a.
process materials.
b.
accessory materials.
c.
MRO supplies.
d.
component parts.
e.
raw materials.
50. A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This
computer is an example of which type of business product?
a.
Raw material
b.
Installations
c.
Accessory equipment
d.
Component part
e.
Process material
51. Although they become part of a larger product, ____ can often be easily identified and distinguished
on the larger product.
a.
component parts
b.
accessory parts
c.
raw materials
d.
process materials
e.
MRO supplies
52. Business products that are purchased routinely, do not become part of finished goods, and are expense
items rather than capital goods are called
a.
raw materials.
b.
installations.
c.
accessory equipment.
d.
component parts.
e.
process materials.
53. A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an
example of a(n)
a.
component part.
b.
specialty item.
c.
accessory equipment.
d.
raw material.
e.
process material.
54. Brain Games, Inc. is a marketing research company which markets primarily to consumer products
organizations. Brain Games provides products that are most likely considered
a.
component parts.
b.
MRO supplies.
c.
process ideas.
d.
business services.
e.
installations.
55. Products used directly in the production of a final product but are not easily identifiable are
categorized as
a.
accessory products.
b.
component parts.
c.
MRO supplies.
d.
assembly components.
e.
process materials.
56. A product item is best described as a
a.
component of a marketing mix.
b.
particular brand.
c.
specific characteristic of a product.
d.
specific version of a product.
e.
unit of measure for the product.
57. Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products.
These products make up Sara Lee’s product
a.
line.
b.
item.
c.
mix.
d.
width.
e.
depth.
58. A product line is defined as
a.
products that can be designated as a unique offering among the organization’s products.
b.
products that an organization makes available to consumers.
c.
a group of closely related products that are considered a unit because of marketing,
technical, or end-use considerations.
d.
a specific group of products that are offered to the market.
e.
products that are sold by the same firm or a division of a firm.
59. Brunswick’s bowling balls, bowling bags, and shoes are individual product ____ for this sporting
goods manufacturer.
a.
menus
b.
mixes
c.
lines
d.
life cycles
e.
ensembles
60. A product mix is best described as
a.
all products offered by a firm.
b.
product, distribution, promotion, and price.
c.
many products sold by one firm.
d.
all products of a particular type.
e.
a group of closely related products that are considered a unit because of market, technical,
or end-use considerations.
61. Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue
of
a.
width of product mix.
b.
product mix consistency.
c.
depth of product mix.
d.
a market mix.
e.
a promotion mix.
62. The depth of a product mix is measured by the average number of
a.
convenience products as compared with the number of specialty products.
b.
different product lines offered by the company.
c.
different products offered in each product line.
d.
specialty products as compared with the number of convenience products.
e.
product features that the company offers.
63. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey’s
Kisses, Reese’s Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey’s
product mix
a.
width.
b.
depth.
c.
length.
d.
volume.
e.
life cycle.
64. One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and
Samsonite luggage. These various offerings exhibit this firm’s product mix
a.
width.
b.
depth.
c.
length.
d.
volume.
e.
dimension.
65. The various products carried by a retailer can also have dimensions of width and depth. For example,
Dick’s Sporting Goods carries sports clothes, shoes, exercise equipment, hunting and fishing
equipment, camping supplies, and other products. Bass Pro Shops carries fishing equipment, but has a
larger selection of different models and brands. In this case, the product mix of Dick’s Sporting Goods
is ___, and the product mix of Bass Pro Shops is ____.
a.
deep; wide
b.
wide and deep; wide and shallow
c.
deep and wide; deep and wide
d.
wide; deep
e.
wide; long
66. The width of a product mix is measured by the number of product
a.
dimensions in the product line.
b.
features in each brand.
c.
items in the product line.
d.
lines a company offers.
e.
specialties a company offers.
67. The four major stages of a product life cycle include
a.
prosperity, recession, depression, and recovery.
b.
specialty, convenience, shopping, and unsought goods.
c.
decline, stabilization, exposure, and growth.
d.
introduction, growth, maturity, and decline.
e.
awareness, interest, trial, and adoption.
68. Sales of Schwinn’s apartment-sized exercise machine have experienced a steady climb; however, the
profits have been negative. The Schwinn exercise machine is most likely in the ____ stage of the
product life cycle.
a.
decline
b.
growth
c.
initial
d.
maturity
e.
introduction
69. During the introduction stage of a successful product, profits are usually
a.
at their highest point.
b.
negative and decreasing.
c.
negative and increasing.
d.
positive and increasing.
e.
declining.
70. Which of the following is the most typical example of a new product introduction?
a.
Pringles sold in snack-sized containers
b.
A brand-new nut discovered in Africa
c.
A car that uses no oil or gasoline
d.
Shoes that literally make you run faster
e.
A device that cools your car while parked outside
71. Marissa, a product manager, thinks her company’s InstaCup coffee maker is currently in the growth
stage of the product life cycle. If so, the profits for the InstaCup coffee maker ___ and the number of
competitors ____.
a.
are negative; is growing
b.
have peaked; is growing
c.
are declining; is growing
d.
have peaked; is declining
e.
are declining; is declining
72. An ad that stresses “Get the real Proactiv Solution; accept no substitutes!” is best geared for which
stage of the product life cycle?
a.
Introduction
b.
Growth
c.
Stabilization
d.
Expansion
e.
Decline
73. In which stage of the product life cycle do profits begin to decrease?
a.
Introduction
b.
Growth
c.
Maturity
d.
Decline
e.
Recovery
74. Grand Resorts Hawaii has just celebrated its first profit since opening two years ago. Grand Resorts
Hawaii is most likely in the ____ stage of the product life cycle.
a.
Maturity
b.
Growth
c.
Introduction
d.
Market testing
e.
Stability
75. Which stage in the product life cycle is critical to a product’s survival because competitive reactions to
the product’s success during this period will affect the product’s life expectancy?
a.
Decline
b.
Expansion
c.
Growth
d.
Introduction
e.
Stabilization
76. During the growth stage of the product life cycle, marketers must
a.
fortify the product position.
b.
move to exclusive distribution.
c.
raise the price.
d.
increase promotion as a percentage of sales.
e.
introduce private brands.
77. Aggressive pricing is typical during the ____ stage of the product life cycle.
a.
decline
b.
growth
c.
introduction
d.
plateau
e.
stabilization
78. Achieving greater penetration of the market is typically a business goal during the ____ stage of the
product life cycle.
a.
maturity
b.
growth
c.
introduction
d.
market testing
e.
decline
79. Which of the following tactics would typically be employed when a product is in the growth stage of
its life cycle?
a.
Lowering prices after developmental costs have been recovered
b.
Raising promotion expenditures as a percentage of total sales
c.
Moving from intensive to selective distribution
d.
Raising prices to encourage competitors to enter the market
e.
Reducing the number of product models in the product line
80. When a business finds itself squeezed out of a market for a product or loses interest in that product, it
is a sign of being in the ____ stage of the product life cycle.
a.
maturity
b.
growth
c.
introduction
d.
market reduction
e.
decline
81. During the maturity stage
a.
product modifications are unnecessary.
b.
there is less emphasis on changing a product’s price.
c.
marketing strategies are rarely altered.
d.
some competitors are forced out.
e.
limited advertising expenditures are required to maintain market share.
82. Heinz promoting its vinegar as an effective cleaner for wall, glass, kitchen, and bathroom surfaces
would most likely be a strategy for the ____ stage of the product life cycle.
a.
introduction
b.
decline
c.
growth
d.
maturity
e.
competitive
83. When a product experiences an increase in the number of competitors, it is usually in the _____ stage
of the product life cycle; however, when that competition becomes intense, it is in the ____ stage.
a.
introduction; maturity
b.
introduction; growth
c.
growth; decline
d.
growth; maturity
e.
maturity; decline
84. When banks add new services during the maturity stage, the objective they are most likely trying to
achieve is
a.
pruning items from the product line.
b.
generating cash flow.
c.
maintaining their market share.
d.
filling geographic gaps.
e.
increasing their share of the customer.
85. A common business objective of the ____ stage of the product life cycle is to generate cash flow.
a.
maturity
b.
growth
c.
introduction
d.
market reduction
e.
decline