Question 1

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called
A) cyclical phases.
B) roller coaster revenue.
C) product stages.
D) product growth and decline.
E) product life-cycle.

Accepted Answer

The pattern described in the question best fits the product life-cycle model, which includes the stages of introduction, growth, maturity, and decline. As a product gains popularity and becomes more widely adopted, sales and profits increase, reaching a peak during the maturity stage before eventually declining as the market becomes saturated or new products emerge.

Question 2

In which order do the stages of the product life-cycle occur?
A) Growth, introduction, maturity, decline
B) Introduction, maturity, slowdown, decline
C) Innovation, distribution, maturity, decline
D) Introduction, growth, maturity, decline
E) Introduction, growth, slowdown, decline

Accepted Answer

The correct order of the stages of the product life-cycle is Introduction, growth, maturity, and decline. This is because the product is introduced to the market, gains acceptance and popularity, reaches a mature stage where sales peak, and eventually declines in sales due to saturation or newer products entering the market. The other options do not accurately reflect the correct order of the stages.

Question 3

Appliances, men's suits, and ____ are examples of shopping products.
A) bicycles
B) process materials
C) chewing gum
D) soft drinks
E) cranes

Accepted Answer

Shopping products are those that require comparison shopping and effort by the consumer before purchase. Appliances and men's suits are typical examples of shopping products as they require research, evaluation, and comparison before purchasing. Bicycles are also similar to these products as they require research and evaluation before buying. Process materials, chewing gum, soft drinks, and cranes are not examples of shopping products because they are either raw materials or convenience products that are purchased with minimal effort and decision-making.

Question 4

Automobile fenders are an example of
A) accessory equipment.
B) raw materials.
C) process materials.
D) component parts.
E) supplies.

Accepted Answer

Automobile fenders are a type of component part as they are necessary to build the final product, in this case, a car. They are not classified as raw materials, process materials, accessories, or supplies.

Question 5

Carmen Cattucci wanted to buy a new car.She visited several dealers to compare prices, styles, and dealer reputations.Finally, she bought a car from a local dealer.The purchase of a car is an example of a
A) convenience product.
B) specialty product.
C) business product.
D) shopping product.
E) major equipment item.

Accepted Answer

The purchase of a car involves comparing prices, styles, and dealer reputations, which suggests that it is a shopping product.

Question 6

Chris and Kimberly White decided to buy new furniture for their bedroom.They spent considerable time shopping around, comparing prices and styles.Bedroom furniture is best classified as a ____ product.
A) convenience
B) business
C) shopping
D) specialty
E) major equipment

Accepted Answer

Since the Whites spent considerable time shopping and comparing prices and styles, it indicates that the bedroom furniture is a shopping product, which requires consumers to compare and evaluate alternatives before making a purchase decision.

Question 7

All of the following are business products except
A) colour televisions in the electronics department of a large retail store.
B) iron ore in a steel plant.
C) small hand tools in an automobile repair shop.
D) toner cartridges in the supply closet of a word processing centre.
E) a new appliance in someone's home.

Accepted Answer

The other options are all products that are used by businesses in their operations, whereas a new appliance in someone's home is a consumer product.

Question 8

Which of the following is an example of a raw material that would be used in the production of a physical product?
A) Steel sheets
B) Paper
C) Plastic
D) Timber
E) Gasoline

Accepted Answer

The answer of Which of the following is an example...

Question 9

____ become(s) a part of the physical product and consist(s) of either finished items ready for assembly or products that need little processing before assembly.
A) Process materials
B) Supplies
C) Accessory equipment
D) Component parts
E) Major equipment

Accepted Answer

Component parts are the items that become a part of the physical product and require little processing before assembly. They are typically purchased from suppliers and are then used in the assembly or production process. Examples of component parts include bolts, screws, and other small parts that are necessary for the finished product but are not produced in-house.

Question 10

Iron ore in a steel plant is an example of
A) supplies.
B) component parts.
C) raw materials.
D) process materials.
E) accessory equipment.

Accepted Answer

Iron ore is a natural resource that is mined and processed to become the raw material for steel production. As such, it is considered a raw material.

Question 11

Renee collects antique Fabergé eggs.For most of these eggs, only one or a few were created of each design.These eggs would best be classified as ____ products.
A) Specialty
B) convenience
C) Business
D) Shopping
E) Luxury

Accepted Answer

Specialty products are unique or rare items that consumers are willing to expend time, money, and effort to obtain. Antique Fabergé eggs are one-of-a-kind, and people who collect them are likely to seek them out specifically and pay a premium price for them.

Question 12

A consumer product for which buyers will not accept a substitute, for which purchasers do not compare alternatives, and that is purchased infrequently and with extra effort on the buyer's part is a ____ product.
A) Luxury
B) business
C) specialty
D) shopping
E) convenience

Accepted Answer

A specialty product is characterized by the fact that buyers are willing to make an extra effort to obtain it, and are not willing to accept substitutes or compare alternatives. These products are typically high-end, exclusive or unique, and often carry a prestige factor. Examples of specialty products include luxury cars, high-end jewelry, and designer clothing.

Question 13

An order of calculators with new features just arrived for the finance department of Nike.These calculators represent
A) major equipment.
B) process materials.
C) component parts.
D) accessory equipment.
E) office materials.

Accepted Answer

Accessory equipment refers to items that support office operations but are not part of the main manufacturing process or considered major equipment. Calculators for the finance department, especially with new features, fit this category as they assist in administrative tasks rather than being central to the production of goods or services.

Question 14

A wrench used to make adjustments to machinery that produces copper wire is classified as
A) raw material.
B) component part.
C) process material.
D) major equipment.
E) accessory equipment.

Accepted Answer

The wrench is an accessory equipment as it is used to make adjustments to machinery that produces copper wire. Accessory equipment is the tools and equipment used to support the production process, and they do not typically become part of the final product.

Question 15

Which business product classification is most appropriate for the wire used inside a stereo system?
A) Raw material
B) Major equipment
C) Accessory equipment
D) Component part
E) Process material

Accepted Answer

The wire used inside a stereo system is a component part because it is an integral part of the system and contributes to its functionality. It is not a raw material or major equipment, nor is it an accessory equipment or process material.

Question 16

Mama Mia restaurant purchased two large ovens for its kitchen.These ovens are an example of which type of business product?
A) Convenience product
B) Accessory equipment
C) Major equipment
D) Component parts
E) Process material

Accepted Answer

Major equipment refers to the durable and long-lasting goods that are used directly in the production of other goods or services. The ovens purchased by Mama Mia restaurant fall under the category of major equipment as they are essential for cooking food and are a necessary part of their kitchen setup.

Question 17

Sheet steel to be used in making automobile fenders is an example of
A) raw materials.
B) supplies.
C) component parts.
D) accessory equipment.
E) process materials.

Accepted Answer

The answer of Sheet steel to be used in making...

Question 18

Paper, pencils, oils, and ____ are examples of supplies.
A) stamping machines
B) cleaning agents
C) Cranes
D) Calculators
E) Lathes

Accepted Answer

The other options do not fit the category of supplies for art or office work. Stamp machines, cranes, and lathes are industrial equipment, while calculators are office equipment. Cleaning agents, however, are supplies commonly used in art and office settings for maintaining cleanliness and organization.

Question 19

If Texas Instruments hires an accounting firm to compute the company's taxes, the accounting firm is providing a(n) ____ service.
A) business
B) governmental
C) institutional
D) tangible
E) mandatory

Accepted Answer

The accounting firm is providing a business service, as it offers specialized expertise (in this case, tax computation) to another business (Texas Instruments). Business services are intangible and are aimed at supporting the operations of other businesses.

Question 20

Which of the following is not generally considered to be a stage in the product life-cycle?
A) Introduction
B) Growth
C) Maturity
D) Transition
E) Decline

Accepted Answer

The stage "Transition" is not generally considered to be a stage in the product life-cycle. The typical stages include Introduction, Growth, Maturity, and Decline.

Quiz 12: Aproduct Development and Pricing Strategies

When a product experiences sales revenue and profit increases, reaches a peak, and then declines, it goes through what is called

In which order do the stages of the product life-cycle occur?

Appliances, men's suits, and ____ are examples of shopping products.

Automobile fenders are an example of

Carmen Cattucci wanted to buy a new car.She visited several dealers to compare prices, styles, and dealer reputations.Finally, she bought a car from a local dealer.The purchase of a car is an example of a

Chris and Kimberly White decided to buy new furniture for their bedroom.They spent considerable time shopping around, comparing prices and styles.Bedroom furniture is best classified as a ____ product.

All of the following are business products except

Which of the following is an example of a raw material that would be used in the production of a physical product?

____ become(s) a part of the physical product and consist(s) of either finished items ready for assembly or products that need little processing before assembly.

Iron ore in a steel plant is an example of

Renee collects antique Fabergé eggs.For most of these eggs, only one or a few were created of each design.These eggs would best be classified as ____ products.

A consumer product for which buyers will not accept a substitute, for which purchasers do not compare alternatives, and that is purchased infrequently and with extra effort on the buyer's part is a ____ product.

An order of calculators with new features just arrived for the finance department of Nike.These calculators represent

A wrench used to make adjustments to machinery that produces copper wire is classified as

Which business product classification is most appropriate for the wire used inside a stereo system?

Mama Mia restaurant purchased two large ovens for its kitchen.These ovens are an example of which type of business product?

Sheet steel to be used in making automobile fenders is an example of

Paper, pencils, oils, and ____ are examples of supplies.

If Texas Instruments hires an accounting firm to compute the company's taxes, the accounting firm is providing a(n) ____ service.

Which of the following is not generally considered to be a stage in the product life-cycle?