Question 1

Bread, gasoline, and ____ are examples of convenience products.
A) Cars
B) furniture
C) newspapers
D) large appliances
E) a cruise

Accepted Answer

Convenience products are items that are typically low-cost and frequently purchased, such as bread and gasoline. Newspapers also fit this category as they are often purchased for their convenience in offering daily news updates. Cars, furniture, large appliances, and a cruise are not typically considered convenience products as they are more expensive and/or are not purchased as frequently for convenience.

Question 2

Consumers would most likely treat personal computers as ____ products.
A) business
B) convenience
C) specialty
D) shopping
E) luxury

Accepted Answer

Personal computers are typically considered shopping products because consumers spend time comparing different brands, models, and prices before making a purchase. They are not bought as frequently as convenience products, and they require more thought and effort to choose than specialty or luxury items, which are sought after for their unique characteristics or brand prestige. Unlike business products, which are purchased for operational needs in a business context, personal computers can be bought by individuals for personal or home use based on specific preferences and comparisons.

Question 3

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 realised 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previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date.Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line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two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-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.

Accepted Answer

The question asks which of the following Eric should not talk about when teaching employees about product life-cycle stages. Expansion is not one of the established stages of a product life-cycle, so it would not be relevant to the discussion. The other options, introduction, growth, maturity, and decline, are established stages of a product life-cycle and would be important for employees to understand when managing inventory and sales.

Question 4

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.
-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.

Accepted Answer

Click It sells products created for different retail stores and carry the store brand, which makes it a private brand.

Question 5

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.
-Refer to Click It, Inc.As Click It managers 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 minimisation.
E) target return on investment.

Accepted Answer

Profit minimisation is not a major pricing objective; typically, companies aim for profit maximisation, not minimisation.

Question 6

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) organisational

Accepted Answer

Consumer products are intended primarily for personal or household use. Convenience products are items that consumers purchase frequently and with minimal effort such as toothbrushes, snacks, or newspapers. Business products are goods and services used by organizations to help in their operations. Specialty products are unique items that consumers are willing to make a special effort to obtain, such as luxury cars or artisanal chocolate. Organizational products are goods and services used by businesses in their operations, such as office supplies or machinery.

Question 7

Energiser batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more than one battery at a time.Energiser batteries would be classified as a ____ product.
A) Household
B) Shopping
C) Luxury
D) specialty
E) convenience

Accepted Answer

Energiser batteries are sold in multipacks to make it more convenient for the consumer, which indicates they are a convenience product.

Question 8

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

Accepted Answer

A business product is intended for use in producing other goods or services, as it is used in the operations of a business.

Question 9

If, in the midst of daily operating activities, Jane Smith finds that the office has run out of paper for the copy machine, she quickly purchases more at the local office supply store.In this case, she is a
A) specialty shopper.
B) convenience shopper.
C) business customer.
D) supply purchaser.
E) personal consumer.

Accepted Answer

The answer of If, in the midst of daily operating...

Question 10

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 realised 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.
-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.

Accepted Answer

If Eric wants to develop a new product, he would begin with idea generation, which is the process of creating, developing, and screening ideas for new products.

Question 11

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.
-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

Accepted Answer

Travis is referring to brand equity, which is the value added to the products by the brand name and reputation. Even though Click It does not sell products under its own brand name, it is still important to consider the brand equity of the store brands they create products for. This is because customers may be more likely to purchase a product from a store with a strong brand reputation, even if they are not familiar with the specific product.

Question 12

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 realised 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.
-Refer to Your Way, Inc.What types of product are sold at Your Way?
A) Shopping products
B) Business products
C) Specialty products
D) Convenience products
E) Unique products

Accepted Answer

The answer of Your Way, Inc.
Eric buys companies that are...

Question 13

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 realised 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.
-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.

Accepted Answer

The best description to explain the difference between product line and product mix is that the product line refers to a group of similar products that differ only in relatively minor characteristics. On the other hand, the product mix is all the products a firm offers for sale.

Question 14

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 realised 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.
-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

Accepted Answer

The sewing machines are considered major equipment for Your Way, Inc. because they are essential for the production of the company's products, which in this case are men's clothing and accessories. Major equipment refers to large tools or machinery used in the production process, which is exactly the role sewing machines play in a clothing manufacturing facility.

Question 15

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.
-Refer to Click It, Inc.When Click It displays information on a product or its package, this refers to
A) supply.
B) pricing.
C) labelling.
D) brand equity.
E) demand.

Accepted Answer

When Click It displays information on a product or its package, this refers to labeling.

Question 16

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.

Accepted Answer

A product encompasses everything one receives in an exchange, including tangible goods, services, and intangible benefits.

Question 17

Consumers would most likely treat candy bars as ____ products.
A) business
B) shopping
C) specialty
D) convenience
E) household

Accepted Answer

Candy bars are frequently purchased as impulse buys or snacks while on the go, making them a convenience product.

Question 18

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.

Accepted Answer

This is the most commonly used and recognized classification of consumer products. Shopping products are those that consumers purchase less frequently and usually require some research and comparison before buying. Convenience products are purchased frequently and with very little thought or effort, such as toothpaste or milk. Specialty products are unique and often high-end products that consumers are willing to go out of their way to purchase, such as designer clothing or luxury cars.

Question 19

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.
-Refer to Click It, Inc.The multiple-unit pricing strategy suggested by Travis is a ____ strategy.
A) new product
B) Psychological
C) Equilibrium
D) promotional
E) Place

Accepted Answer

The multiple-unit pricing strategy is considered a psychological strategy because it encourages consumers to purchase more units by offering a perceived value or discount for buying in bulk, which can influence consumer behavior.

Question 20

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

Accepted Answer

The use of the product determines if it is a consumer product or a business product. Staples that are purchased for personal use at home would be a consumer product, while staples that are purchased for use in an office would be a business product. The other options such as quantity purchased, basic function provided, and whether it is purchased for cash or credit do not determine the type of product. The need satisfied could be relevant but not always conclusive.

Quiz 12: Aproduct Development and Pricing Strategies

Bread, gasoline, and ____ are examples of convenience products.

Consumers would most likely treat personal computers as ____ products.

A good or service that is intended primarily for personal or household use is called a(n) ____ product.

Energiser batteries are sold in multipacks to make it more convenient for the consumer, who usually needs more than one battery at a time.Energiser batteries would be classified as a ____ product.

A good or service intended primarily for use in producing other goods or services is a ____ product.

If, in the midst of daily operating activities, Jane Smith finds that the office has run out of paper for the copy machine, she quickly purchases more at the local office supply store.In this case, she is a

Everything that one receives in an exchange, including all tangible and intangible attributes and expected benefits, is called a

Consumers would most likely treat candy bars as ____ products.

Consumer products can be divided into the following three categories:

For a product such as staples, which of the following determines whether it is a consumer product or a business product?