Deck 10: Developing New Products and Services

Question 1

Which of the following statements regarding goods is most accurate?

A)In order to be classified as a product, an item must appeal to all five senses.
B)Music is not considered a product because it only involves a single sense-hearing.
C)In addition to appealing to the senses, some products also have intangible attributes.
D)To market a product that contains visual attributes you cannot use an auditory medium.
E)The aroma of chocolate chip cookies is considered a product because it affects one's senses.

Answer 1

C

Question 2

Product refers to

A)a tangible good received in exchange for a person's time and effort.
B)a tangible good received in exchange for providing value.
C)a good that has in some way been altered, combined, or improved and ultimately sold to a consumer.
D)good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for legal tender (money).
E)good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

Answer 2

E

Question 3

A product that has tangible attributes that a consumer's five senses can perceive is referred to as ___________.

A)a service
B)a product concept
C)a good
D)a stock item
E)an artifact

Answer 3

C

Question 4

A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is

A)received in exchange for legal tender (money).
B)received in exchange for money or something else of value.
C)provides the seller with a tangible profit.
D)a tangible good received in exchange for a person's time and effort.
E)a tangible good received in exchange for providing value.

Question 5

Consumer product classifications are based upon three variables: 1) effort the consumer spends on the decision, 2) frequency of purchase, and 3)

A)amount of money the customer is willing to spend.
B)number of competing products or product substitutes.
C)demographics of the consumer.
D)attributes used in making the purchase decision.
E)consumer psychographics.

Question 6

Which of the following is the best example of a nondurable good?

A)laundry detergent
B)shoes
C)insurance
D)iPod
E)laser surgery

Question 7

A product is a good, service, or idea consisting of a _________ that satisfies consumers' needs and is received in exchange for money or something else of value.

A)promise or commitment from the seller
B)bundle of tangible and intangible attributes
C)bundle of tangible attributes
D)bundle of intangible attributes
E)component parts

Question 8

The __________, introduced in 2001 and now in its fifth generation, was the first commercially successful MP3 digital player.

A)Sony X-series
B)Phillips GoGear
C)SanDisk Sansa
D)Zune HD
E)Apple iPod

Question 9

A __________ is the marketing term for a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

A)process
B)market decision
C)market factor
D)utility bundle
E)product

Question 10

An item consumed in one or a few uses, such as food product and fuel, are referred to as __________.

A)service items
B)nondurable goods
C)durable goods
D)disposable goods
E)transitory goods

Question 11

The Economist magazine predicts that the __________, "a giant iPhone on steroids," will change the landscape of the computing world.

A)iPad
B)iPhone 3GS
C)iPod shuffle
D)iPod nano
E)iPod touch

Question 12

A good has tangible attributes that a consumer's __________ can perceive.

A)innate intelligence
B)knowledge of past experiences
C)five senses
D)psychological makeup
E)emotional maturity

Question 13

This company was rated by Fortune as the world's most admired company in 2009 and Business Week often rates it as the most innovative company in the world.

A)IBM
B)Microsoft
C)3M
D)Kodak
E)Apple

Question 14

Which of the following is the best example of a nondurable good?

A)automobile
B)health care
C)hair cut
D)gasoline
E)lawn care

Question 15

Steve Jobs hopes that the iPad will change the landscape of the computing world.This means transforming not just one industry but three - computing, telecommunications, and media.Apple hopes that this industry will enable the iPad to reach a market niche between

A)laptops and pagers
B)phones and MPS players
C)cameras and phones
D)phones and laptops
E)phones and pagers

Question 16

A nondurable good is defined as a(n)

A)item consumed in one or a few uses.
B)item that usually lasts over an extended number of uses.
C)item that lasts at least one year without becoming obsolete.
D)product purchased for ultimate consumer use.
E)product used in the production of other products.

Question 17

The Apple II, Macintosh, MacBook Air, iPhone 3GS, iPod, and the iPad are all examples of a company's commitment to __________.

A)outselling their competitors
B)social responsibility
C)continuous innovation
D)using renewable resources
E)respecting their workforce

Question 18

A _________ is defined as an item consumed in one or a few uses.

A)nondurable good
B)durable good
C)sturdy good
D)resilient good
E)robust good

Question 19

Goods can be divided into __________ goods and __________ goods.

A)functional; aesthetic
B)required; desired
C)acceptable; exceptional
D)durable; nondurable
E)production; agricultural

Question 20

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as __________.

A)a consumer good
B)a product
C)a manufactured good
D)a stock item
E)merchandise

Question 21

Which of the following is considered a durable good?

A)silverware
B)caviar
C)marketing research
D)chewing gum
E)glue

Question 22

Business products are also referred to as __________.

A)B2B products
B)121 products
C)2N1 products
D)INC products
E)2B1 products

Question 23

Services refer to

A)tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
B)intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
C)activities provided to complement a tangible good-such as technical support for a computer.
D)any activity required for the production of a good that cannot be completed "in-house" and must be outsourced to another firm.
E)the human (non-mechanical) component (the workforce) that is part of the manufacturing process.

Question 24

The division of products into durable and nondurable goods is to __________.

A)comply with governmental guidelines
B)address issues of environmental concern
C)clarify classification in IS09000
D)classify products for tax purposes
E)provide direction for marketing actions

Question 25

In marketing, an idea is

A)a thought that leads to an action.
B)an inspiration that evolved from market research.
C)an observation about a series of events.
D)a concept explaining the behavior of an individual or group.
E)an observation about an individual or group and how they use a service or product.

Question 26

Advertising is important for products such as Butterfinger candy bars and Dasani bottled water that is purchased frequently and at relatively low cost.Wide distribution in retail outlets is essential.Why?

A)They are highly sought brand sensitive goods that one purchases from a wholesaler.
B)They are unsought products, so advertising targets consumers' impulsiveness.
C)They are nondurable goods and easily substitutable so consumers need to be reminded of their existence.
D)They are shopping products and can easily go out of stock.
E)They are semidurable goods, and advertising helps to maintain high inventories.

Question 27

Products that usually last over many uses, such as cars and appliances are referred to as

A)enduring goods.
B)durable goods.
C)perpetual goods.
D)reliability products.
E)nondisposable goods.

Question 28

Business products are also referred to as __________ products.

A)manufacturing
B)industrial
C)business services
D)support
E)maintenance

Question 29

Services are a significant part of the U.S.economy, exceeding __________ percent of its gross domestic product (GDP).

A)19
B)27
C)30
D)40
E)55

Question 30

A durable good is defined as a(n)

A)item consumed in one or a few uses.
B)item that usually lasts over an extended number of uses.
C)item that lasts at least one year without becoming obsolete.
D)product purchased for ultimate consumer use.
E)product used in the production of other products.

Question 31

Products that organizations buy that assist in providing other products for resale are referred to as __________.

A)reseller goods
B)wholesale goods
C)ancillary products
D)retail assortment
E)business products

Question 32

Industrial products are also referred to as __________ products.

A)manufacturing
B)business
C)organizational services
D)support
E)maintenance

Question 33

In marketing, a(n) __________ is a thought that leads to an action.

A)observation
B)inspiration
C)innovation
D)perception
E)idea

Question 34

Which of the following would most likely be considered a consumer product?

A)ball bearings
B)back hoe
C)printing press
D)suitcase
E)mainframe computer

Question 35

Which of the following statements regarding "product" is most accurate?

A)Nondurable goods would rely more on advertising while durable goods would benefit more from a personal selling strategy.
B)Durable goods would benefit more on advertising while nondurable goods would benefit more from a personal selling strategy.
C)There is little if any difference between marketing actions between durable and nondurable goods; the key difference occurs between shopping and specialty products.
D)There is little if any difference between marketing actions between durable and nondurable goods; the key difference occurs between for profit and not for profit products and services.
E)The durable and nondurable classification applies to services as well as to products.

Question 36

Among consumer products, advertising and wide distribution are especially important for

A)durable goods.
B)unsought products.
C)nondurable goods.
D)production goods.
E)semidurable goods.

Question 37

Products that are purchased by ultimate consumers are referred to as __________.

A)generic goods
B)shopping goods
C)personal items
D)commercial items
E)consumer products

Question 38

Consumer products refer to

A)products purchased by ultimate consumers.
B)products used in the production of other items.
C)products a consumer will make an effort to seek out and buy.
D)items the consumer purchases frequently and with a minimum of shopping effort.
E)products purchased for individual or private use rather than as a gift or for one's job.

Question 39

In marketing, a(n) __________ generally includes not only physical goods, but services and ideas as well.

A)action
B)product
C)concept
D)inspiration
E)observation

Question 40

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as __________.

A)services
B)enhancements
C)performance factors
D)marketing activities
E)customer facilitation

Question 41

Business products refer to

A)products that organizations buy that assist in providing other products for resale.
B)paper products and office supplies necessary for the day-to-day operations of a business.
C)ancillary services such as legal, accounting, and other consulting services necessary for the operation of a business, that cannot be achieved in-house.
D)products that are sold exclusively to businesses and services rather than to ultimate consumers.
E)product prototypes used to attract buyers for large ticket items that won't actually be constructed until a sale has been made.

Question 42

Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are referred to as __________.

A)specialty products
B)selective products
C)shopping products
D)prestige products
E)convenience products

Question 43

In terms of price, which of the following types of goods would most likely be relatively inexpensive?

A)shopping product
B)convenience products
C)specialty products
D)unsought products
E)consumer products

Question 44

You decide to buy a new car.You talk to friends about it, research mechanical specifications in Consumer Reports, test drive different makes and models, and compare prices at several dealerships.Into which classification of consumer products would your new car purchase fall?

A)shopping product
B)specialty products
C)unsought products
D)survival products
E)convenience products

Question 45

Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision and obtain the item?

A)convenience products
B)shopping product
C)specialty products
D)unsought products
E)production goods

Question 46

Convenience products refer to

A)items that a consumer will make special efforts to seek out and buy.
B)items for which the consumer compares several alternatives on criteria, such as price, quality, or style.
C)products the consumer purchases frequently, conveniently, and with a minimum of shopping effort.
D)ancillary products used to make other products work more efficiently.
E)low-cost items for which there are numerous substitutes and generic equivalents.

Question 47

Which type of consumer product is purchased relatively infrequently and takes some time to make the purchase decision due to some comparison shopping?

A)convenience products
B)shopping product
C)specialty products
D)unsought products
E)production goods

Question 48

In terms of promotion, which of the following types of goods would stress price, availability, and awareness?

A)shopping
B)convenience
C)specialty
D)unsought
E)services

Question 49

With respect to price, which of the following types of consumer products would most likely be fairly expensive?

A)Convenience products.
B)Shopping product.
C)Specialty products.
D)Unsought products.
E)Production goods.

Question 50

With respect to distribution, shopping products are available

A)by special order from the manufacturer.
B)at an extremely small number of outlets.
C)at relatively few outlets.
D)at a large number of selective outlets.
E)on a widespread basis at many outlets.

Question 51

Specialty product refer to

A)products for which there are no close substitutes.
B)products purchased for their prestige or high perceived value.
C)products a consumer will make a special effort to search out and buy.
D)items for which the consumer compares several alternatives on several criteria such as price, quality, or style.
E)items that the consumer does not know about or knows about but does not initially buy.

Question 52

Marissa, a college student and her father, a wealthy businessman, were each considering the purchase of a new automobile.As a college student with limited financial resources, Marissa went from car dealer to car dealer in several different cities searching for the lowest price on a new economy car.She devoted a great deal of time and energy to getting the best value for her money.Marissa's father, however, knew that he would buy another new car next year.Because it was convenient, he simply went to the local auto dealer and, with little thought or effort regarding the buying decision, bought the first luxury car that he saw.For Marissa, an automobile was a __________ good; for her father, a car was a __________.

A)specialty product; shopping product
B)specialty product; convenience product
C)convenience product; specialty product
D)shopping product; a convenience product
E)convenience product; derived good

Question 53

Shopping products refer to

A)items that the consumer purchases frequently, conveniently, and with a minimum of effort.
B)items for which the consumer compares several alternatives on several criteria such as price, quality, or style.
C)items that the consumer makes a special effort to search out and buy.
D)items that the consumer does not know about or knows about but does not initially buy.
E)items that the consumer is forced to buy because they are needed for basic survival.

Question 54

In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes for which type of product?

A)convenience products
B)specialty products
C)unsought products
D)shopping products
E)services

Question 55

With respect to price and availability, shopping products are likely to be

A)relatively inexpensive and widely available.
B)relatively inexpensive but very limited availability.
C)fairly expensive, available at a large number of selective outlets.
D)very expensive, very limited availability.
E)very expensive, available at a large number of selective outlets.

Question 56

In terms of promotion, which of the following types of goods stress product differentiation from competitors?

A)shopping product
B)convenience products
C)specialty products
D)unsought products
E)services

Question 57

The type of good for which the consumer compares several alternatives on such criteria as price, quality, or style is a(n)

A)shopping product.
B)convenience product.
C)specialty product.
D)unsought product.
E)B2B product.

Question 58

With respect to distribution, convenience products are available

A)at relatively few outlets.
B)at a large number of selective outlets.
C)by special order from the manufacturer.
D)at a very limited number of outlets.
E)on a widespread basis at many outlets.

Question 59

Which of the following is the best example of a convenience product?

A)Apple iPod
B)Lexus LS 400 luxury automobile
C)flight on American Airlines
D)Roget's Thesaurus
E)toothpaste

Question 60

In terms of brand loyalty, consumers prefer specific brands, but will accept substitutes after consideration with which type of consumer products?

A)services
B)convenience products
C)specialty products
D)unsought products
E)shopping product

Question 61

Considering the common classification of consumer products, which of the following products will have the most limited distribution?

A)Duncan Hines cake mixes
B)Polaroid cameras
C)Quaker State motor oil
D)Rolex watches
E)Sony stereos

Question 62

According to Figure 10-1 above, column "D" would represent what type of product?

A)shopping
B)convenience
C)specialty
D)prestige
E)unsought

Question 63

Burberry makes fine raincoats, clothing, and other items, many featuring the company's distinctive plaids.Originally found only in Great Britain, Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality.Burberry is selling which classification of consumer products?

A)Convenience products.
B)Shopping products.
C)Specialty products.
D)Unsought products.
E)Survival products.

Question 64

Leona hates carrying a camera with her on vacations.If she only knew of the existence of the ½" thick Logitech Pocket Digital camera, which easily fits in any pocket! For Leona, the Logitech camera is a(n)

A)shopping product.
B)convenience product.
C)specialty product.
D)unsought product.
E)business product.

Question 65

Which of the following best illustrates the concept of derived demand?

A)The number of retail stores in a downtown area decreases and demand for retail goods increases.
B)An increase in the number of new single-family homes results from a spurt in the gross national product.
C)The heat wave results in an increased demand for air conditioners.
D)Container ship manufacturers experience an increase in sales because more products are demanded from Asia to be sold in the U.S.and must be transported by ship.
E)Honda's reducing its car prices causes GM to do the same.

Question 66

Products a consumer will make a special effort to search out and buy are referred to as

A)derived goods.
B)shopping products.
C)convenience products.
D)specialty products.
E)prestige products.

Question 67

In terms of promotion, which of the following types of goods stress status and uniqueness of brand?

A)shopping product
B)convenience products
C)specialty products
D)unsought products
E)services

Question 68

In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of goods?

A)shopping product
B)convenience products
C)specialty products
D)unsought products
E)services

Question 69

According to Figure 10-1 above, column "B" would represent what type of product?

A)shopping
B)convenience
C)specialty
D)prestige
E)unsought

Question 70

With respect to price, which of the following types of consumer products would most likely be very expensive?

A)convenience products
B)shopping product
C)specialty products
D)unsought products
E)production goods

Question 71

You greatly admire a set of Waterford crystal serving bowls you see at a dinner party, and decide to buy two, despite the price of $250 each.They are only available in your area in a Waterford shop 40 miles from campus.Into which classification of consumer products would the crystal bowls fall?

A)convenience products
B)shopping products
C)specialty products
D)unsought products
E)derived goods

Question 72

With respect to promotion, which of the following strategies would most likely be used for unsought products?

A)consumer and trade sales promotions
B)uniqueness and status of the brand
C)generating awareness
D)differentiation from competitive brands
E)price, availability and awareness

Question 73

Fifty percent or more of American adults have not had their teeth checked by a dentist within the last five years.For these people dental services would be classified as a(n)

A)shopping product.
B)convenience product.
C)specialty product.
D)unsought product.
E)business product.

Question 74

Which of the following is most likely to be an example of an unsought product?

A)snow shovel
B)cell phone
C)cancer insurance
D)calculator
E)gym membership

Question 75

According to Figure 10-1 above, column "A" would represent what type of product?

A)shopping
B)convenience
C)specialty
D)prestige
E)unsought

Question 76

The demand for a business product that results from the demand for a consumer product is referred to as

A)unit demand.
B)contrived demand.
C)primary demand.
D)secondary demand.
E)derived demand.

Question 77

Distribution is very limited with which of the following types of consumer products?

A)shopping product
B)convenience products
C)specialty products
D)unsought products
E)services

Question 78

According to Figure 10-1 above, column "C" would represent what type of product?

A)shopping
B)convenience
C)specialty
D)prestige
E)unsought

Question 79

Very infrequent purchases and only some comparison shopping are characteristic of the purchasing behavior for a type of consumer service (such as cosmetic dentistry) that a prospective buyer may not initially want.These types of goods are referred to as

A)shopping products.
B)convenience products.
C)specialty products.
D)unsought products.
E)support products.

Question 80

Unsought products are

A)any products associated with disease or death.
B)products that were once very popular but that have become obsolete and difficult to find.
C)elements of a company's product line that do not perform as well as other products in the line.
D)products which the consumer does not know about, or knows about but does not initially want.
E)products that people choose to ignore because they find them offensive from a moral or ethical perspective.