Deck 14: Developing and Pricing Goods and Services

Question 1

When consumers calculate the value of a product,they look at the benefits and then subtract the cost.

Answer 1

True

Question 2

While service providers offer product lines,they are unable to offer product mixes.

Answer 2

False

Question 3

The several product lines that a company offers for sale make up that organization's product mix.

Answer 3

True

Question 4

McDonald's prides itself on offering precisely the same menu around the world so that customers know exactly what to expect when they eat at a McDonald's.

Question 5

In evaluating a total product offer,value enhancers such as service,guarantees,reputation of the seller,etc.are as important to customers as the basic product.

Question 6

Successful businesses constantly monitor consumer wants and needs.

Question 7

Fast-food organizations must constantly monitor all sources of information for new product ideas.

Question 8

A product line is a group of products that are physically similar or are intended for a similar market.

Question 9

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

Question 10

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Question 11

The critical component of a total product offer is always a low price.

Question 12

Low prices can often help retailers create an attractive total product offer.

Question 13

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

Question 14

Once an organization surveys the consumer's wants and needs,has designed a group of products to meet those needs,and begun to market them in stores,the organization is assured of success.

Question 15

Price,store surroundings,service,and brand name are all elements that consumers evaluate in a total product offer.

Question 16

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Question 17

The term product line describes the combination of product mixes offered by a manufacturer.

Question 18

The image created by advertising is part of the total product offer of a product.

Question 19

A single product line may contain several competing brands.

Question 20

Product development is a key activity in any modern business,anywhere in the world.

Question 21

Whole grain breads,bagels,bread sticks,sandwiches,soup,and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

Question 22

The uniqueness of convenience goods and services stimulate consumers to make an extra effort to purchase them.

Question 23

Unsought goods and services are products consumers do not actively seek out for purchase on a regular basis.

Question 24

The most common classification of consumer goods and services is based on producer or manufacturer behavior in the market.

Question 25

The characteristics of specialty goods restrict their effective sale over the Internet.

Question 26

The concepts of product lines and product mixes apply to marketers of products and services.

Question 27

The marketing efforts for convenience and specialty goods are essentially the same.

Question 28

Miller Light Beer,Maxwell House Coffee,Jell-O brand gelatin,Kraft Mayonnaise,and Marlboro Cigarettes,were all at one time products of the Philip Morris Company.These products represented a part of the product line Philip Morris offered.

Question 29

Unsought goods and services fail to provide the benefits consumers expect.

Question 30

At Isuzu's Appliance Store,all new products are offered with an extended service contract,as well as free delivery and installation.By offering these value enhancers,Isuzu's has added to their total product offer.

Question 31

In order for product differentiation to be effective,real product differences must be identified so that one product is clearly better than others.

Question 32

Creative product differentiation can enable a small business to increase market share.

Question 33

Marketers use pricing,advertising,and packaging to differentiate their products from competitors' products even when actual differences are quite small.

Question 34

Successful marketing of convenience and specialty goods require different marketing mixes.

Question 35

A traditional McDonald's and a McCafe the outlet that sells premium coffee and pastries similar to a Starbucks)are examples of the McDonald's Corporation product mix.

Question 36

Car dealers realize that consumers focus exclusively on price and warranty.

Question 37

Shopping goods and services are purchased only after consumers compare value,quality,style,and price of competing goods and services.

Question 38

A bank's product line may include safety deposit boxes,car loans,and traveler's checks.

Question 39

One common way of classifying consumer goods is based on consumer purchasing behavior.

Question 40

Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.

Question 41

Consumers are best served by providing specialty goods in convenient locations.

Question 42

A shopping good for one consumer could be a specialty good for another consumer.

Question 43

Industrial goods and services are used to produce other products.

Question 44

Newspapers are sold daily in a wide variety of locations.This widespread distribution suggests that newspapers are classified as convenience goods.

Question 45

Capital items are industrial goods that are expensive and last a long time.

Question 46

The two types of industrial goods are production goods and unsought goods.

Question 47

Since Kazam Cleaners offers home and office cleaning services no different from competitors,the company can not utilize a product differentiation strategy.

Question 48

Some goods can be classified as either consumer goods or as industrial goods.

Question 49

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus.His largest competitors are large nationally known organizations.The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Question 50

Accessory equipment consists of capital items that cost less and are shorter lived than installation items.

Question 51

Most consumers view specialty goods as having a variety of acceptable substitutes.

Question 52

Specialty goods are often marketed through specialty magazines.

Question 53

As a promotional strategy,advertising is more important in the marketing of industrial goods than it is in the marketing of consumer goods.

Question 54

Mystic Beverages,a producer of soft drinks,wants to differentiate its products from those of other soft drink providers.To implement this strategy successfully will require Mystic to create tangible differences in the physical product it offers.

Question 55

Equipment maintenance and repair of equipment used by businesses is an industrial support good.

Question 56

The classification of goods or services into a particular class depends on the individual consumer.

Question 57

Industrial goods are sold in the B2B market.

Question 58

A pickup truck can be classified as either a consumer good or an industrial good.

Question 59

Paper clips,stationery,and other office supplies used by businesses are types of industrial support goods.

Question 60

Unsought goods and services are purchased on impulse and provide no added value to consumers.

Question 61

In recent years,the packaging of products has been given a greater role in product promotion.

Question 62

One function of effective packaging is to attract the attention of consumers.

Question 63

The exclusive goal companies expect of packaging is to protect the product from damage in transit.

Question 64

Gabe intends to visit a variety of retailers of sound equipment comparing features,quality,and prices of different brands at each store.This behavior indicates that for Gabe a sound system is a shopping good.

Question 65

More than any other component of a total product offer,technology has reduced the importance of packaging.

Question 66

A brand includes practically all means of identifying a product.

Question 67

One function of effective packaging is to protect the goods inside during handling and storage,as well as deter product tampering and theft.

Question 68

While the packaging of services has not yet captured the attention of businesses,technological improvements will likely create new opportunities.

Question 69

Thigpen Equipment Company sells used heavy construction equipment such as bulldozers and cranes.Thigpen's products represent examples of an accessory equipment industrial good.

Question 70

The trend towards self-service retailers has increased the importance of packaging.

Question 71

Stella strongly prefers a specific brand of gourmet coffee.Because there is only one store in her area that sells this brand,she makes an extra effort to purchase this item.Stella's purchasing behavior indicates for her this product is a specialty good.

Question 72

As a result of increased advertising and well-trained salespeople,packaging is less important than in the past.

Question 73

Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted.Unfortunately,firms seldom find that improvements in packaging impact market share and profits.

Question 74

One function of effective packaging is to provide information regarding warranties,benefits,and uses of the good inside the package.

Question 75

Packaging is an important part of the total product offer.

Question 76

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Question 77

Regardless of changes in packaging,the total product offer remains unchanged.

Question 78

While the Universal Product Code UPC)improves efficiency at the retail check-out counter,it has increased problems in controlling inventory.

Question 79

While packaging innovations benefit the consumer,they have vastly increased the workload of retailers.

Question 80

Beyonce Financial Services purchased several new personal computers and a sophisticated color laser printer for office use.These items would be correctly classified as accessory equipment.