Exam 10: Product and Service Strategies

Thomasville Furniture Company aggressively markets its bedroom and kitchen furniture. Since these products are well known, price is likely to be the only factor on which consumers will base their decisions.

Emergency goods are purchased after careful reflection on whether they are really needed.

How are consumer goods such as soap, milk, and deodorants generally classified?

One of the major problems with the classification system for consumer products is that not all goods and services fit into just one category.

Accessory equipment for the business market includes products such as hand tools, portable drills, and laptop computers.

Which variable of service quality best represents the service provider's understanding of the customer's needs?

Because they do not have physical features that buyers can see, hear, smell, taste, or touch prior to purchase, services are said to be intangible.

The purpose of benchmarking is to achieve the minimum acceptable performance for releasing a product into the marketplace.

Representatives that sell installations to the business market often provide technical expertise along with tangible goods.

Discuss two challenges presented by the consumer product classification system.

What type of product are consumers primarily interested in when they are well aware of the brands they prefer and are willing to make a special effort to obtain them?

A goods-services continuum is a method for visualizing the differences and similarities between goods and services.

Match each item to the statement or sentence listed below. a.marketing mix b.benchmarking c.product d.convenience product e.shopping product f.specialty product g.product line h.product mix i.unsought product j.maturity stage k.raw materials l.total quality management m.product life cycle n.installations o.services p.impulse goods q.wholesaler r.business-to-business (B2B) s.supplies t.emergency goods u.component parts v.staples w.line extension -Farm products and mineral products are examples of _____.

An Automated Teller Machine (ATM) is an example of a convenience service.

Word-of-mouth reports and mass advertising have very little effect on hesitant buyers making an initial product purchase during the growth stage of the product life cycle.

Business buyers do not expect a firm that manufactures one product to make related products as well.

Ryan is looking for a professional watch that he buys, at most, once every few years. Since he doesn't favour a particular brand, he spends a great deal of time comparing price and quality, as well as visiting the few retail outlets that sell high-end watches. What type of product is Ryan about to purchase?

Internet security software that requires periodic updates and annual product upgrades is considered a pure service on the goods-services continuum.

Define product. How do marketers perceive products?

During the maturity stage of the product life cycle, the industry sales curve for a product reaches a minimum point as the competitors exhaust the supply of potential customers.