Deck 10: Product and Service Strategies

Question 1

Which company is a pure service firm?

A) Walmart
B) Microsoft
C) Starbucks
D) Royal Bank of Canada

Answer 1

D

Question 2

How would you generally classify consumer goods such as milk, bread, and soft drinks?

A) convenience products
B) utilitarian products
C) shopping products
D) specialty products

Answer 2

A

Question 3

What type of product is marketed to consumers who may NOT yet recognize a need for them?

A) specialty
B) consumer
C) convenience
D) unsought

Answer 3

D

Question 4

According to marketing decision makers, why do people buy products?

A) to acquire items that are distinctively different than the competitive offerings
B) to satisfy their wants and needs
C) to save time by selecting items that are easy to find on the shelves
D) to satisfy price and value requirements

Question 5

Which product is, for most consumers, unsought?

A) designer clothes
B) magazines
C) long-term insurance
D) furniture

Question 6

Which of the following is most likely to be categorized as a consumer product as well as a business product?

A) natural gas
B) iron ore
C) concrete mixers
D) agriculture produce

Question 7

Richard generally frequented Brewz, a coffeehouse chain, when he was in Florida. However, when his company shifted him to China, he found that the Brewz in Shanghai does not offer the same quality service. Which of the following best explains this differential perception in service quality?

A) Companies cannot easily standardize services.
B) Buyers often play important roles in the creation and distribution of services.
C) Services are perishable and intangible.
D) Providers cannot make inventories of their services.

Question 8

Approximately what percentage of the Canadian economy is made up of the service sector?

A) 25
B) 50
C) 75
D) 90

Question 9

Which of the following best describes a product?

A) the physical characteristics of an item that one can buy for personal, professional, or organizational use
B) the costs and benefits that the seller promotes in various marketing messages
C) assurances, reliability, and tangibles all at once
D) a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs

Question 10

Which of the following comes closest to providing pure service?

A) a retail store
B) an automobile dealership
C) a coffee shop
D) a fitness gym

Question 11

Which product would generally be classified as a staple?

A) plumbing repair kit
B) personal computer
C) gasoline
D) magazine

Question 12

What distinguishes a service from a good?

A) Services are tangible.
B) Services are inseparable from service providers.
C) Services are easy to standardize.
D) Services can be inventoried.

Question 13

Which of the following industries does NOT belong to the service sector?

A) investment banking
B) agriculture
C) retailing
D) health care

Question 14

Which term refers to a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs?

A) byproduct
B) construct
C) product
D) cluster

Question 15

The moderately priced Days Inn and the upscale Four Seasons Hotel both provide sleeping accommodations, but their respective guests have considerably different expectations of service. Why do their expectations differ?

A) Companies cannot standardize services.
B) Service quality shows wide variations.
C) Services are inseparable from their providers.
D) Services have a high perishable rate.

Question 16

Using the broad application of the word product, how can a television set best be described?

A) as an obsolete technology in comparison with the Internet
B) as a means of providing entertainment
C) as a lucrative item for appliance stores
D) as a machine used to receive broadcast signals

Question 17

Which of the following comes closest to providing a pure good?

A) a company that manufactures and installs elevators
B) a cleaning service
C) a data storage company
D) an advertising agency

Question 18

Christopher owns the best hair salon in the city. The clients swear by Christopher, and brides and bridesmaids flock for him for weddings. Which statement best explains this situation?

A) Companies cannot easily standardize services.
B) Service standards show wide variations.
C) Services are inseparable from the service providers.
D) Services are perishable and intangible.

Question 19

Gourmet restaurants and fast food chains cater to the same want satisfaction-a place to eat. However, at the gourmet restaurants you experience finely prepared cuisine served by a highly trained wait staff while at the fast food chains you may have to serve yourself. Which statement best represents this difference?

A) Services are intangible.
B) Companies cannot easily standardize services.
C) Services are perishable.
D) Service standards show wide variations.

Question 20

How might you categorize convenience products that customers constantly replenish in order to maintain a ready inventory?

A) staples
B) impulse items
C) emergency items
D) specialty items

Question 21

Which product relies least on location of purchasing opportunity?

A) specialty
B) shopping
C) unsought
D) convenience

Question 22

After researching and comparing several types of alarm clocks, Trisha decided on one that gives a choice of being wakened to music, bird calls, or ocean waves. In this case, what type of product would the alarm clock be classified as?

A) shopping
B) impulse
C) convenience
D) specialty

Question 23

What would most likely have the greatest influence on a decision to buy a heterogeneous shopping product?

A) product's style
B) store's name and reputation
C) store's location
D) price and perceived value of the product

Question 24

Beaux, a clothing boutique store, specializes in high-end evening wear for women. Most of their dresses are custom-made for their elite customers. What type of products is Beaux offering?

A) impulse
B) convenience
C) shopping
D) specialty

Question 25

Which product would generally be considered as a staple?

A) lawn mower
B) laptop
C) dishwashing liquid
D) luxury perfume

Question 26

What does a consumer expect when purchasing convenience products?

A) that they can purchase them without having full knowledge about what is sought
B) that they can purchase them immediately and with minimal effort
C) that they should purchase them after visiting numerous stores and comparing prices
D) that they may have to travel any distance to get what is wanted

Question 27

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) impulse
B) convenience
C) shopping
D) specialty

Question 28

When Sara developed a headache due to stress just before an important sales presentation, she quickly bought an aspirin from a nearby pharmacy. What type of product did Sara buy?

A) shopping
B) emergency
C) staple
D) impulse

Question 29

Which product relies least on personal selling?

A) specialty
B) shopping
C) unsought
D) convenience

Question 30

While in Best Buy, a customer takes a great deal of time comparing the quality, features, and prices of a number of refrigerators. What is this customer examining?

A) heterogeneous shopping products
B) homogeneous shopping products
C) homogeneous convenience products
D) heterogeneous specialty products

Question 31

Which of the following are consumer shopping products?

A) Coca-Cola and Gatorade
B) bread, milk, and gasoline
C) clothing, furniture, and appliances
D) Rolex watches and BMW automobiles

Question 32

Why do grocery stores usually display items such as candy, gum, and magazines near the checkout counter?

A) They are purchased on impulse.
B) They are easier to replenish.
C) They are subject to shoplifting.
D) They are purchased infrequently.

Question 33

Which statement best describes convenience products?

A) Consumers generally don't have prior need recognition of convenience products before purchasing them.
B) Consumers generally tend to purchase convenience products immediately and with minimal effort.
C) Consumers tend to buy convenience products after a long-term evaluation of competing products in the market.
D) Consumers tend to buy convenience products because of the prestige associated with their ownership.

Question 34

Which statement best describes a shopping product?

A) It is a product that consumers purchase after comparing competing offers.
B) It is a product with unique characteristics that cause buyers to prize those brands.
C) It is a product bought in response to unexpected and urgent needs.
D) It is a product purchased on the spur of the moment.

Question 35

What type of convenience product do customers constantly replenish to maintain a ready inventory?

A) staples
B) impulse goods
C) emergency goods
D) shopping products

Question 36

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?

A) unsought
B) specialty
C) convenience
D) shopping

Question 37

Which statement best describes a specialty product?

A) It is a product marketed to consumers who may not yet recognize a need for them.
B) It is a product with unique characteristics that cause buyers to prize those brands.
C) It is a product bought in response to unexpected and urgent needs.
D) It is a product purchased on the spur of the moment.

Question 38

What type of products are financial, legal, and medical services?

A) convenience services
B) shopping goods
C) customized services
D) specialty services

Question 39

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

A) convenience
B) utilitarian
C) shopping
D) specialty

Question 40

Which product typically has the longest distribution channel?

A) convenience
B) staples
C) specialty
D) shopping

Question 41

Which business product would be classified as an installation?

A) paper clips
B) office filing cabinets
C) liquid inkjet printers
D) underground mining loaders

Question 42

Which of the following correctly matches consumer factors and marketing mix factors in the consumer products classification system?

A) specialty products-personal selling is not important
B) convenience products-a consumer makes infrequent purchases of these products
C) emergency products-these are unsought products
D) shopping products-a relatively short channel of distribution is typical

Question 43

In the business market, what is an important factor for a purchasing firm who is buying installations?

A) the lowest price
B) general usefulness instead of having a specific purpose
C) speed of installation without extensive negotiations
D) efficiency and performance over their useful life

Question 44

Which of the following is NOT a raw material?

A) coal
B) copper
C) iron ore
D) steel

Question 45

Using the consumer products classification system, which statement best describes the marketing mix factors for a specialty product?

A) It generally has low price.
B) The seller's image is unimportant.
C) Its number of sales outlets tends to be very high.
D) It relies on personal selling by producers.

Question 46

Some wholesalers are called "industrial distributors." What are these wholesalers a major vendor of?

A) standardized products of uniform quality that are made on a contractual basis
B) MRO items
C) installations for the industrial market
D) accessory equipment for the business market

Question 47

What are products that are considered capital investments but whose useful lives are generally much shorter than those of installations known as?

A) accessory equipment
B) operating supplies
C) component parts
D) business services

Question 48

In the context of the business products, what are capital items that typically cost less and last for shorter periods than installations are called?

A) shopping products
B) accessory equipment
C) supplies
D) impulse products

Question 49

Which business product is most similar to consumer specialty products?

A) installations
B) accessory equipment parts
C) raw materials
D) component parts and materials

Question 50

What is the basic characteristic of accessory equipment in the business market?

A) It is purchased by groups involving a large number of decision makers.
B) It is not considered a capital item.
C) It is a capital item with a shorter useful life than an installation.
D) It is a convenience product of the industrial market.

Question 51

Which business product would be classified as an installation?

A) jet engine
B) office furniture
C) copy paper
D) regional shopping centre

Question 52

What are purchases included with a car, such as spark plugs, batteries, and tires, examples of?

A) installations
B) accessory equipment
C) component parts and materials
D) supplies

Question 53

Which of the following would NOT ordinarily be included as a business product?

A) installations
B) accessory equipment
C) specialty products
D) component parts

Question 54

Why do raw materials resemble component parts and materials?

A) They are considered capital investments to be held for several years.
B) They are part of the buyers' final products.
C) They are finished products before they enter into the production of other products.
D) They are expended without finding their way into finished goods.

Question 55

Which of the following can be classified as accessory equipment?

A) natural gas pipelines
B) bottling units
C) desktop computers
D) printer cartridges

Question 56

In the business market, what are sound systems, batteries, and tires that are included in the manufacturing of a car are examples of?

A) installations
B) accessory equipment
C) component parts and materials
D) supplies

Question 57

Sandra is working on a purchase decision for her company. The product under consideration is expensive, has a short distribution channel, and isn't purchased frequently. In addition, Sandra is working closely with a seller's marketing representative. Which type of product is Sandra's company considering purchasing?

A) accessory equipment
B) an installation
C) component parts and materials
D) supplies

Question 58

Ryan, a successful entrepreneur, is planning to get into the petroleum business. He has bought two jack-up rigs running into millions of dollars to start the business. What type of product are these rigs examples of?

A) installations
B) accessory equipment
C) supplies
D) component parts

Question 59

Using the consumer products classification system, which statement best describes the consumer factors for specialty products?

A) Consumers tend to purchase specialty products frequently.
B) Consumers always compare price and quality between competing products.
C) Consumers tend to regard convenience of location as very important.
D) Consumers tend to plan extensively before buying them.

Question 60

What are industrial distributors most often found selling?

A) accessory equipment
B) business services
C) raw materials
D) installations

Question 61

What is the first main activity involved in benchmarking?

A) identifying the world's leading performers
B) identifying internal processes to be improved
C) identifying how the best goods are produced
D) identifying critical market segments

Question 62

Which of the following has a mandate of advancing the quality movement in Canada by providing advice on change management, organizing events to promote quality, and offering educational certification programs?

A) ISO 9002
B) Total Quality Management
C) Excellence Canada
D) Six Sigma

Question 63

What is a series of related products offered by one company called?

A) product assortment
B) product mix
C) product formula
D) product line

Question 64

Which of the following is a single product line?

A) four-door sedans offered by various automakers
B) 125-passenger jets manufactured by Airbus and Boeing
C) Hershey Kisses in a variety of flavours
D) different brands of toothpaste

Question 65

Which of the following consists of intangible products that firms buy to facilitate their production and operating processes?

A) installations
B) accessories
C) business services
D) operating supplies

Question 66

Which term refers to the point at which the customer and service provider interact?

A) encounter
B) locus
C) platform
D) zone

Question 67

If Honda were to acquire a bicycle manufacturer, what would it add to Honda's product mix?

A) depth
B) width
C) length
D) cluster

Question 68

Which of the following involves measuring quality by comparing the company's performance against the industry leaders?

A) benchmarking
B) social referencing
C) satisficing
D) social loafing

Question 69

What is the number of product lines a firm offers referred to as?

A) depth
B) width
C) clusters
D) length

Question 70

What is a company practising when it institutes a continuous effort to improve products and work processes?

A) total quality management
B) benchmarking
C) ISO 9002 certification
D) process improvement

Question 71

What is adding individual offerings that appeal to different market segments known as?

A) product mix
B) product line
C) product line extension
D) product line depth

Question 72

What are finished business products of one producer that become part of the final products of another producer are called?

A) installations
B) accessory equipment
C) supplies
D) component parts and materials

Question 73

What does the combination of product lines represent?

A) product mix
B) product cluster
C) product lifecycle
D) product concept

Question 74

Which product is most likely to be promoted through advertisements rather than through personal selling?

A) oil rigs
B) laptops
C) raw cotton
D) mineral ores

Question 75

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

A) tangibles
B) assurances
C) empathy
D) reliability

Question 76

What does external analysis, conducted during the process of benchmarking, involve?

A) establishing a baseline for comparison with industry leaders
B) identifying business processes that need improvement
C) identifying the strengths and weaknesses of the firm's internal processes
D) gathering information about competing firms perceived as leading performers

Question 77

Which variable of service quality best represents the readiness to serve one's customers?

A) tangibles
B) assurances
C) responsiveness
D) empathy

Question 78

Which of the following is NOT an activity for benchmarking?

A) continuously repeating the process to search for and identify areas that need improvement
B) comparing internal processes with similar processes of industry leaders
C) identifying processes that need improvement
D) producing more product output at a lower cost-per-unit

Question 79

In the business market, what are computer paper, pencils, and office stationery examples of?

A) maintenance items
B) repair items
C) operating supplies
D) accessory equipment

Question 80

Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting?

A) assurance
B) responsiveness
C) empathy
D) reliability