Question 1

With respect to distribution, convenience goods are available:
A)at a large number of selective outlets.
B)at a very limited number of outlets.
C)at relatively few outlets.
D)on a widespread basis at many outlets.

Accepted Answer

Convenience goods are products that are purchased frequently, with little effort, and without much advance planning. Therefore, they need to be widely available and easily accessible to customers. Consequentially, convenience goods are usually distributed on a widespread basis at many outlets, such as supermarkets, convenience stores, drugstores, gas stations, and vending machines.

Question 2

All of the following could be considered sources of open innovation ideas, except:
A)partner firms
B)universities
C)current employees
D)investors

Accepted Answer

Open innovation involves sourcing ideas and innovations from outside the organization's boundaries, which can include partner firms, universities, and investors. Current employees, however, are considered internal sources of innovation rather than open or external sources.

Question 3

Janine recently went gluten free and is purchasing breakfast cereals for the first time. Which statement below best describes her experience?
A)she will not have success.
B)she will make a special effort to seek out and buy.
C)she will likely compare several alternatives on several criteria.
D)she will make purchases frequently and with a minimum of shopping effort.

Accepted Answer

Janine is new to purchasing gluten-free cereals, so she will likely compare several alternatives based on criteria such as taste, price, and gluten-free certification to find the best option for her dietary needs.

Question 4

You greatly admire a set of Ralph Lauren crystal goblets you see at a dinner party, and decide to buy four, despite the somewhat surprising price of $60 each. They are only available in your area in a Polo Ralph Lauren shop, 40 miles from campus. Into which classification of consumer goods would the crystal goblets fall?
A)unsought goods
B)convenience goods
C)shopping goods
D)specialty goods

Accepted Answer

Specialty goods are products that customers are willing to make a special effort to obtain because of their unique characteristics or brand identity. The fact that the goblets are only available at a specific Polo Ralph Lauren shop and the high price indicate that they are specialty goods.

Question 5

Leona hates carrying a camera with her on vacations. If she only knew of the existence of the 1/2" thick Logitech Pocket Digital camera which easily fits in any pocket. For Leona, the Logitech camera is a(n):
A)shopping good.
B)unsought good.
C)specialty good.
D)convenience good.

Accepted Answer

The Logitech Pocket Digital camera is an unsought good for Leona because she is unaware of its existence and does not actively seek it out.

Question 6

In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes. This is characteristic of:
A)specialty goods.
B)convenience goods.
C)unsought goods.
D)shopping goods.

Accepted Answer

This describes convenience goods, which are items that consumers purchase regularly without much thought and are willing to substitute with similar products. Examples include household items like bread or milk. Unlike specialty or shopping goods, where consumers have a strong preference and seek out specific brands or products, convenience goods are characterized by their ease of purchase and consumer willingness to accept substitutes.

Question 7

Shopping goods are items:
A)for which the consumer compares several alternatives on criteria, such as price, quality, or style.
B)used to assist in producing other goods and services.
C)the consumer purchases frequently and with a minimum of shopping effort.
D)such as a Rolex watch that a consumer makes a special effort to search out and buy.

Accepted Answer

Shopping goods are those for which consumers spend time comparing different options based on factors like price, quality, or style before making a purchase decision.

Question 8

Fifty percent or more of Canadian 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)unsought good.
B)specialty good.
C)shopping good.
D)convenience good.

Accepted Answer

An unsought good is a product or service that a consumer is unaware of or does not typically think about purchasing. In this case, the fact that over 50% of Canadian adults have not had their teeth checked by a dentist within the last five years indicates that dental services are not a top of mind consideration for these individuals, and are therefore an unsought good.

Question 9

In terms of promotion, which of the following types of goods would stress price, availability, and awareness?
A)specialty
B)unsought
C)shopping
D)convenienc e

Accepted Answer

Convenience goods are items that customers purchase frequently and with minimal effort, such as snacks or toiletries. As a result, promotion for convenience goods typically emphasizes price, availability, and overall awareness.

Question 10

Which of the following is the best example of a shopping good?
A)Mercedes Benz CL250
B)Roget's Thesaurus
C)CD player
D)Lexus LS 400 luxury automobile

Accepted Answer

Shopping goods are products that consumers spend time comparing quality, price, and style before making a purchase decision. A CD player fits this category as it typically involves comparison shopping.

Question 11

When Dell created a website where any individual can submit future ideas or products based on their experience with the company, Dell was using which specific strategy?
A)open innovation
B)idea generation
C)crowdsourcing
D)online ideation

Accepted Answer

Open innovation is a strategy that involves seeking ideas and input from external sources. By creating a website where anyone can submit ideas, Dell is utilizing an open innovation approach. This also involves crowdsourcing and online ideation, but the overarching strategy is open innovation.

Question 12

The manner in which a consumer good is classified depends on the individual. One person may view a camera as a_________ and visit several stores before deciding on a Brand, whereas a friend may view cameras as a_________ and will only buy a Nikon.
A)convenience good; specialty good
B)specialty good; prestige good
C)shopping good; specialty good
D)prestige good; unsought good

Accepted Answer

A camera can be classified as both a shopping good (which requires consumer research and comparison) and a specialty good (which consumers are willing to make an extra effort to purchase). The scenario given in the question exemplifies this as one person is willing to visit several stores while another is loyal to one specific brand.

Question 13

In terms of price, which of the following types of goods would most likely be relatively inexpensive?
A)specialty goods
B)shopping goods
C)unsought goods
D)convenience goods

Accepted Answer

Convenience goods are items that consumers need on a regular basis and are readily available in stores. These items are often low priced and frequently purchased, which allows for cost-efficient production and distribution.

Question 14

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 goods would your new car purchase fall?
A)specialty goods
B)shopping goods
C)unsought goods
D)convenience goods

Accepted Answer

The act of researching, testing, and comparing different makes and models of cars indicates that this purchase falls under the category of shopping goods where consumers engage in a comparative evaluation of several potential options before making a purchase decision.

Question 15

Websites such as IDEO and InnoCentive use _________to obtain ideas.
A)crowdsourcing
B)"free time"
C)real-time feedback
D)online ideation

Accepted Answer

IDEO and InnoCentive both utilize crowdsourcing, which is the practice of leveraging a large group of people (usually online) to gather ideas, solve problems, or complete tasks. This method allows for a diverse range of perspectives and experiences to contribute to the ideation process.

Question 16

With respect to price, which of the following types of consumer goods would most likely be fairly expensive?
A)unsought goods
B)convenience goods
C)specialty goods
D)shopping goods

Accepted Answer

The answer of With respect to price, which of the...

Question 17

Which type of consumer good is purchased relatively infrequently and takes some time to make the purchase decision due to some comparison shopping?
A)shopping goods
B)convenience goods
C)unsought goods
D)specialty goods

Accepted Answer

Shopping goods are products that consumers purchase infrequently and usually take time to compare prices and quality before making a purchase decision. Examples include clothing, appliances, and furniture. Convenience goods are products that consumers purchase frequently and without much thought, such as snacks or household cleaning supplies. Unsought goods are products that consumers are not actively seeking to purchase, such as funeral services or life insurance. Specialty goods are products that are unique and have few substitutes, such as luxury cars or high-end jewelry.

Question 18

All of the following are advantages in using virtual reality test marketing, except:
A)it is often less expensive
B)it can often be more expensive
C)it can often reduce the time to market

Accepted Answer

The statement "it can often be more expensive" contradicts the first part of the statement which says "advantages." Therefore, option B is not an advantage of using virtual reality test marketing. The other two options, A and C, are advantages of using virtual reality test marketing.

Question 19

Which of the following is most likely to be an example of an unsought good?
A)Lexus LS 400 luxury automobile
B)Ceramic French poodle
C)CD player
D)Flight on Air Canada

Accepted Answer

Unsought goods are items that the consumer does not know about or does not normally think of buying. A ceramic French poodle fits this description best, as it is not a common or necessary item that people actively seek out.

Question 20

Burberry makes fine raincoats, clothing, and other items, many featuring the company's distinctive plaids. Originally found only in Great Britain, Burberry has opened exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry is selling in which classification of consumer goods?
A)unsought goods
B)convenience goods
C)shopping goods
D)specialty goods

Accepted Answer

Burberry's products are considered specialty goods because they are high-end, high-quality products that are unique and sought after by a specific group of consumers who are willing to pay a premium for them. The exclusive shops and focus on brand recognition also support this classification.

Quiz 10: Developing New Products and Services

With respect to distribution, convenience goods are available:

All of the following could be considered sources of open innovation ideas, except:

Janine recently went gluten free and is purchasing breakfast cereals for the first time. Which statement below best describes her experience?

Leona hates carrying a camera with her on vacations. If she only knew of the existence of the 1/2" thick Logitech Pocket Digital camera which easily fits in any pocket. For Leona, the Logitech camera is a(n) :

In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes. This is characteristic of:

Shopping goods are items:

Fifty percent or more of Canadian 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) :

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

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

When Dell created a website where any individual can submit future ideas or products based on their experience with the company, Dell was using which specific strategy?

The manner in which a consumer good is classified depends on the individual. One person may view a camera as a_ and visit several stores before deciding on a Brand, whereas a friend may view cameras as a_ and will only buy a Nikon.

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

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 goods would your new car purchase fall?

Websites such as IDEO and InnoCentive use _________to obtain ideas.

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

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

All of the following are advantages in using virtual reality test marketing, except:

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