Deck 15: Product and Supply Chain Management

Question 1

Product testing is the last step in the product development process.

Answer 1

True

Question 2

A major, explicit responsibility of marketing is to transform a basic product into a total product offering.

Answer 2

True

Question 3

If a firm extends a janitorial cleanser from the industrial market to reach the home market, it is following a one product/multiple markets strategy.

Answer 3

True

Question 4

Labeling information should be limited to minimum legal requirements.

Question 5

According to the Nutrition Labeling and Education Act of 1990, food products addressed must have a standard nutrition label, listing the amount of calories, fat, salt, and nutrients contained.

Question 6

There are six categories of product strategy alternatives for small businesses.

Question 7

To balance out seasonal use, some sporting goods firms manufacture both snow skis and water skis. This should provide a useful hedge against volatile shifts in market demand.

Question 8

According to the textbook's three-stage model of the life cycle of a competitive advantage, firms can exploit a competitive advantage during the "develop" stage.

Question 9

It is important that small firms gain a competitive advantage, which cannot be quickly imitated.

Question 10

It is generally easier and more beneficial for a small business to develop products that are similar to those of competitors, rather than attempt to offer a sufficiently different product.

Question 11

A brand includes only the verbal identification of a product.

Question 12

In the business analysis stage of the product development process, every new-product idea must be carefully analyzed in terms of several financial considerations.

Question 13

Strategies for goods marketing and services marketing are essentially identical.

Question 14

The four primary means firms can use to protect their tangible assets are trademarks, patents, copyrights, and trade dress.

Question 15

Packaging is a significant tool for increasing the value of the total product by creating a distinctive impression.

Question 16

Considering the business analysis stage of the product development process, a product that is completely new to a small firm should not be added to the product mix, in most cases, unless it is consistent with-or somehow related to-the existing product mix.

Question 17

Despite the limited resources of a typical small business, this type of firm should formalize the product development process.

Question 18

Trademark and service mark are legal terms indicating the exclusive right to use a brand.

Question 19

In order to be enforceable, warranties must be in writing.

Question 20

Innovative packaging is frequently a deciding factor for consumers.

Question 21

A firm's competitive advantage will never

A) last forever.
B) be duplicated by competitors.
C) lead to superior performance.
D) cost as much to develop as anticipated.

Question 22

The term channel management is synonymous with the term logistics.

Question 23

A utility patent covers the appearance of a product and everything that is an inseparable part of the product.

Question 24

Entrepreneurs often regard distribution as the most glamorous marketing activity.

Question 25

Delivery terms specify which party pays the freight costs, selects carriers, bears the risk of damage, and selects the modes of transport.

Question 26

Distribution is essential for tangible goods, but not for intangible goods.

Question 27

Distribution includes both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of products.

Question 28

The three main considerations in structuring a channel of distribution are cost, coverage, and control.

Question 29

Given the complexity of the task, entrepreneurs must use an attorney to conduct a trademark search.

Question 30

Shippers that own their own means of transport are called common carriers.

Question 31

A direct channel of distribution is one that involves no intermediaries.

Question 32

Sustainable competitive advantage is

A) rarely appreciated by the firm's owners.
B) of little consequence to profitability.
C) an idealized position that is unachievable in reality.
D) a value-creating industry position that is likely to endure over time.

Question 33

Small companies do not fare well with innovation because 95% of radical innovations are produced by large firms.

Question 34

Two brands of bar soap are two product items in one product line.

Question 35

All small firms want to grow.

Question 36

Physical distribution of products includes only transportation.

Question 37

Trade dress describes those elements of a firm's distinctive operating image that are not specifically protected under a trademark, patent, or copyright.

Question 38

F.O.B. origin, freight collect, is a delivery term that shifts all responsibility for freight costs to the buyer.

Question 39

Analysis of competitors' channels is a valuable source of information to a small business that is structuring its own distribution system.

Question 40

Asmall firm's "special signature" is called a logo.

Question 41

A small firm can try to increase sales of an existing product by all of the following except

A) convincing nonusers in the market to become customers.
B) persuading current customers to use more of the product.
C) alerting current customers to new uses for the product.
D) emphasizing diversification.

Question 42

The name Xerox is a

A) generic label.
B) brand.
C) trade dress.
D) copyrighted designation.

Question 43

An entrepreneur opened a small business producing high-quality paper products. She decided to place a multicolored pine tree on all product boxes and on the sign outside the facilities, to symbolize the business. This symbol is an example of

A) a brand.
B) a trademark.
C) a service mark.
D) trade dress.

Question 44

Joe Kott has established a successful formed cement products business by developing an inventory control method and delivery service that gets products to construction sites faster than his rivals. If Kott continues to improve this system and stay ahead of his competitors, it can be a source of

A) sustainable competitive advantage.
B) total quality management.
C) business process reengineering.
D) competitive adjustment.

Question 45

All of the following are stages in a formal product development process except

A) business analysis.
B) idea accumulation.
C) product testing.
D) product conceptualization.

Question 46

Important rules of thumb in naming a product include all of the following except

A) choosing a descriptive name.
B) selecting a name that is easy to pronounce and remember.
C) selecting a name that can be used appropriately for only a single product line.
D) using a name that can have legal protection.

Question 47

The below listed outcomes are all "fruits" of competitive advantage except

A) superior profitability
B) increased market share
C) lowered financial risk
D) improved customer satisfaction

Question 48

If a small firm is to maintain its performance over time, it is essential to

A) produce a continuous stream of competitive advantages.
B) extend the competitive advantage of the firm.
C) replicate the strategies that have led to success in the past.
D) retain the personnel who made the firm successful in the first place.

Question 49

Key factors to consider when conducting the business analysis phase of the new product development process include all of the following except

A) cost of development and introduction.
B) total product development.
C) available personnel and facilities.
D) the product's relationship to existing product lines.

Question 50

The initial stage in a formal product development process is the _____ stage.

A) business analysis
B) idea accumulation
C) product testing
D) total product development

Question 51

To maintain it performance, the small business must launch a new competitive advantage

A) and keep that competitive advantage alive.
B) and make adjustments to that competitive advantage over time.
C) that rival firms can see and respond to.
D) before the current strategy has run its course.

Question 52

A verbal or symbolic means of identifying a product is referred to as a

A) brand.
B) trademark.
C) service mark.
D) trade dress.

Question 53

Karen McMasters grew her business on eBay to over $3.5 million in sales in 2007 selling _____.

A) organic canned vegetables
B) baby products
C) highly specialized quilts
D) home made soap

Question 54

The collection of product lines within a firm's ownership and control is referred to as the

A) product depth.
B) product accumulation.
C) product line consistency.
D) product mix.

Question 55

All of the following are legitimate sources of new product ideas within the framework of a formal product development process except

A) business personnel.
B) customer requests or suggestions.
C) government-owned patents.
D) competitor-owned patents.

Question 56

According to Clayton Christensen's statistics, _____ % of all innovations that eventually became successful started out in the wrong direction.

A) 27
B) 76
C) 93
D) 42

Question 57

The competitive advantage life cycle has three stages, including the ____ stage.

A) determination
B) distill
C) decline
D) delimit

Question 58

Every new product must be carefully analyzed in terms of financial considerations in the _____ stage of the product development process.

A) business analysis
B) idea accumulation
C) product testing
D) total product development

Question 59

Which of the following is not part of the product life cycle as depicted in Exhibit 15-3?

A) introduction
B) growth
C) sustainability
D) decline

Question 60

The _____ stage of the product development process entails planning for branding, packaging, and other supporting efforts such as pricing and promotion.

A) business analysis
B) idea accumulation
C) product conceptualization
D) total product development

Question 61

Warranties are important for products

A) that are relatively inexpensive.
B) that are frequently purchased.
C) that are relatively complex to repair.
D) regardless of how they are positioned in the market.

Question 62

Technologies Limited, a small producer of closed-circuit, handheld radio communication devices marketed to contractors (walkie-talkies), wants to expand. Using its knowledge of communication technologies, it developed a cellular-based phone system designed for contractors. Technologies Limited is employing a _____ product strategy.

A) multiple products/one market
B) multiple products/multiple markets
C) modified product/one market
D) modified product/multiple markets

Question 63

When a small firm operates with more than one channel of distribution, it is said to be using

A) multiple distribution.
B) dual distribution.
C) channel integration.
D) intermediary replication.

Question 64

Effective evaluation of warranty policies should focus on all of the following except

A) legal implications.
B) service capability.
C) customer perceptions.
D) former practices.

Question 65

A product strategy that includes a new product that is quite different from existing products

A) can be very risky.
B) is often used by small businesses.
C) will likely determine the future direction of the firm.
D) is encouraged, as long as it represents no more than half of the firm's product offerings.

Question 66

Explicit functions of packaging include all of the following except

A) increasing the quality of the total product.
B) distinguishing the product from competitors' products.
C) influencing customers.
D) protecting the product.

Question 67

Small businesses can protect their intangible assets by means of any of the following except

A) trademarks.
B) patents.
C) copyrights.
D) formal redress.

Question 68

Written Instruments, a maker of plastic ballpoint pens targeted at school-aged children, decided to market an additional line of pens. However, this small business was concerned that the introduction of a new ballpoint pen would reduce sales of the existing product in its current market niche. Therefore, Written Instruments created a high-quality, felt-tip pen targeted at business executives in order to expand sales. This company was employing a ____ product strategy.

A) multiple products/one market
B) multiple products/multiple markets
C) one product/multiple markets
D) modified product/multiple markets

Question 69

A copyright notice should include

A) the symbol (c).
B) the date the work was published.
C) the name of the copyright owner's company.
D) a listing of all other copyrights held by the owner.

Question 70

In general, the most appropriate and effective product strategy to use in the initial stage of a small business is the _____ product strategy.

A) one product/one market
B) one product/multiple markets
C) multiple products/one market
D) multiple products/multiple markets

Question 71

Intermediaries exist because

A) they can perform the distribution function better than the producer or user of the product.
B) they reach geographic areas with much less expense.
C) risk levels are low.
D) customer needs are highly specialized.

Question 72

____ encompasses both the physical movement of products and the establishment of intermediary relationships.

A) Logistics
B) Distribution
C) Physical distribution
D) Marketing management

Question 73

The United States Patent and Trade Office rejected Microsoft's 1990 effort to gain exclusive rights to the name Windows. This decision illustrates the fact that

A) copyright protection has its limits.
B) design patents do not cover computer software applications.
C) trade dress will not cover the "look and feel" of a product, as Microsoft claimed.
D) common-law rights do not always justify trademark protection over a generic term.

Question 74

A copyright provides protection for the duration of the creator's life, plus

A) 25 years.
B) 70 years.
C) 75 years.
D) 100 years.

Question 75

All of the following are product strategy alternatives except

A) multiple products strategies.
B) one product strategies.
C) product market strategies.
D) modified product strategies.

Question 76

Auto Shine is introducing an improved version of its existing car wax targeted at luxury car owners. The firm has decided to leave the original product in the mix and aim the new product at the original target market. Auto Shine is employing a _____ product strategy.

A) multiple products/one market
B) multiple products/multiple markets
C) modified product/one market
D) modified product/multiple markets

Question 77

Which of the following is not true with respect to labeling?

A) It shows the product brand.
B) It is an informative tool for consumers.
C) It should include only the minimum legal requirements.
D) It should emphasize brand visibility.

Question 78

The distinctive operating image of a product, including features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques, can be protected

A) by copyright.
B) by patent.
C) as trade dress.
D) as a registered concept.

Question 79

A legal term indicating the exclusive right of a firm to use a brand to identify a product is a

A) copy mark.
B) trademark.
C) service mark.
D) trade dress.

Question 80

Both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of the products are included in

A) distribution.
B) logistics.
C) middlemen.
D) channels.