Deck 9: Developing New Products and Services

Question 1

Which of the following statements regarding goods is most accurate?

A)In order to be classified as a good, an item must appeal to all five senses.
B)Music is not considered a good because it only involves a single sense - hearing.
C)Some goods also have intangible attributes.
D)To market a good that contains visual attributes, you cannot use an auditory medium.
E)The aroma of chocolate chip cookies is considered an idea because it affects one's senses.

Answer 1

C

Question 2

A good has tangible attributes that a consumer's __________ can perceive.

A)cognitive intelligence
B)vision
C)knowledge of past experiences
D)five senses
E)emotional intelligence

Answer 2

D

Question 3

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as __________.

A)a utility bundle
B)a product
C)a service
D)an idea
E)merchandise

Answer 3

B

Question 4

A __________ is defined as an item consumed in one or a few uses.

A)durable good
B)convenience good
C)specialty good
D)shopping good
E)nondurable good

Question 5

Which of the following is the best example of a nondurable good?

A)laundry detergent
B)shoes
C)insurance
D)iPod
E)laser surgery

Question 6

A nondurable good is defined as a(n)

A)item consumed in one or a few uses.
B)item that usually lasts over an extended number of uses.
C)item that lasts at least one year without becoming obsolete.
D)product purchased only for the use of ultimate consumers.
E)product used in the production of other products.

Question 7

A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange

A)only for legal tender (money).
B)for providing value.
C)only for barter.
D)for a person's time and effort.
E)for money or something else of valuE.Key term definition - product.

Question 8

The division of products into durable and nondurable goods helps to __________.

A)comply with NAICS guidelines
B)address environmental concerns
C)comply with ISO 9000 requirements
D)classify products for tax purposes
E)provide direction for marketing actions

Question 9

The Apple II, Macintosh, iPod, iPhone, iPad, and CarPlay are all examples of Apple's commitment to __________.

A)sustainable procurement
B)social responsibility
C)new product development
D)using renewable resources
E)respecting its workforce

Question 10

Items consumed in one or a few uses, such as food and fuel, are referred to as __________.

A)services
B)perishable goods
C)durable goods
D)nondurable goods
E)disposable goods

Question 11

Advertising Age named its CEO Marketer of the Decade, Fortune rated it as the world's most admired company and Bloomberg Businessweek perennially identifies it as the most innovative company in the world. This firm is

A)IBM
B)Microsoft
C)3M
D)Kodak
E)Apple

Question 12

A product that has tangible attributes that a consumer's five senses can perceive is referred to as a(n)

A)good.
B)service.
C)product concept.
D)new idea.
E)artifact.

Question 13

Among consumer products, advertising and wide distribution are especially important for

A)durable goods.
B)specialty products.
C)nondurable goods.
D)production goods.
E)semidurable goods.

Question 14

As a marketing term, __________ generally includes not only physical goods, but also services and ideas as well.

A)marketing
B)invention
C)merchandise
D)product
E)concept

Question 15

The late Steve Jobs oversaw or invented innovations that revolutionized six industries. Which industry below is NOT one of them?

A)music
B)smartphones
C)personal computers
D)cable television
E)tablet devices

Question 16

Goods can be divided into __________ goods and __________ goods.

A)functional; aesthetic
B)required; desired
C)tactile; conceptual
D)durable; nondurable
E)product; service

Question 17

A product refers to

A)a tangible good received in exchange for a person's time and effort.
B)intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
C)a good that has in some way been altered, combined, or improved and sold to organizational buyers.
D)is a thought that leads to an action such as a concept for a new invention.
E)a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of valuE.Key term definition - product.

Question 18

The Apple innovation that leading car manufacturers are incorporating into their offering that allows users a "smarter, safer, and more fun way to use iPhone in the car" is referred to as

A)iPod
B)iCloud
C)iCar
D)iPad
E)CarPlay

Question 19

A product is a good, service, or idea consisting of a(n) __________ that satisfy consumers' needs and is received in exchange for money or something else of value.

A)promise or commitment exchanged between a seller and a buyer
B)bundle of tangible and intangible attributes
C)assortment of value-possessing activities
D)array of physical attributes
E)collection of tangible qualities

Question 20

Which of the following statements regarding goods is most accurate?

A)Nondurable goods would rely more on advertising than durable goods.
B)Durable goods would benefit more on advertising than nondurable goods.
C)There is little if any difference between marketing actions between durable and nondurable goods.
D)Nondurable goods would rely more on personal selling than durable goods.
E)The durable and nondurable classification applies to services as well as to products.

Question 21

Consumer products refer to

A)products used in the production of other items.
B)products purchased by the ultimate consumer.
C)products an industrial buyer will make an effort to seek out and buy.
D)items purchased frequently and with a minimum of shopping effort.
E)products that assist directly or indirectly in providing products for resalE.Key term definition - consumer products.

Question 22

Which of the following is the best example of a nondurable good?

A)automobile
B)e-reader
C)baseball
D)gasoline
E)shoes

Question 23

Intangible items such as airline trips, financial advice, or telephone service that an organization provides to consumers are referred to as

A)production goods.
B)support products.
C)services.
D)goods.
E)benefits.

Question 24

Products that usually last over many uses, such as cars and appliances, are referred to as

A)endurable goods.
B)nondisposable goods.
C)imperishable goods.
D)reliable products.
E)durable goods.

Question 25

Services contribute how much to the U.S. gross domestic product as compared with goods?

A)services contribute about the same
B)services contribute about half as much
C)services contribute about twice as much
D)services contribute about one quarter as much
E)services are not a component of GDP

Question 26

Cars and appliances are classified as

A)reusable goods.
B)nondisposable goods.
C)imperishable goods.
D)reliable products.
E)durable goods.

Question 27

Services refer to

A)ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.
B)intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
C)philanthropic activities performed in without expectations of monetary remuneration.
D)any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.
E)any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

Question 28

Durable goods emphasize which of the following elements of the promotional mix?

A)sales promotion
B)personal selling
C)advertising
D)public relations
E)direct marketing

Question 29

A durable good is defined as a(n)

A)item consumed in one or a few uses.
B)item that usually lasts over an extended number of uses.
C)item that lasts at least one year without becoming obsolete.
D)product purchased only for the use of ultimate consumers.
E)product used in the production of other products.

Question 30

Advertising is most important for which of the following products?

A)bicycle
B)toaster
C)orange juice
D)deck furniture
E)watch

Question 31

Which of the following is considered an idea?

A)haircut
B)birdfeeder
C)theater production
D)marketing class
E)security

Question 32

Which of the following is considered a service?

A)lamp
B)motorcycle
C)potato chips
D)a marketing class
E)environmentalism

Question 33

Services are

A)the tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
B)the activities provided to complement a tangible good, such as technical support for a computer.
C)the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
D)any activity required for the production of a good that cannot be completed "in-house" and must be outsourced to another firm.
E)the human (nonmechanical) component that is part of the manufacturing process.

Question 34

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as __________.

A)services
B)goods
C)products
D)marketing mix
E)ideas

Question 35

As shown in Figure 9-1 above, which of the following statements is most accurate?

A)Services are a smaller part of the gross domestic product than are goods.
B)In 2012, goods represent a larger part of the gross domestic product than services.
C)In 1995, services were worth almost $1 billion.
D)Until 1980, goods and services contributed almost equally to the gross domestic product (GDP).
E)In 2012, goods were 50 percent of the GDP.

Question 36

Which of the following statements about services is most accurate?

A)Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale.
B)The marketing of services is, in a practical sense, identical to the marketing of products or ideas since they both satisfy customer needs.
C)Only 10% of all jobs created in the United States are in the services sector.
D)In the U.S., services contribute about twice the value of goods to the GDP.
E)There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

Question 37

In marketing, a(n) __________ is a thought that leads to a product or action.

A)observation
B)inspiration
C)innovation
D)idea
E)perception

Question 38

Which of the following is considered a durable good?

A)silverware
B)caviar
C)marketing research
D)chewing gum
E)voting

Question 39

In marketing, an idea is

A)a thought that leads to a product or action.
B)an inspiration that evolved from market research.
C)an observation about a series of events.
D)a concept explaining the behavior of an individual or group.
E)an observation about an individual or group and how they use a service or product.

Question 40

Which of the following is considered a service?

A)online banking
B)bathing suit
C)silverware
D)washing machine
E)freedom

Question 41

Convenience products refer to

A)items that consumers will make special efforts to seek out and buy.
B)items for which consumers compare several alternatives on criteria such as price, quality, or style.
C)products consumers purchase frequently and with a minimum of shopping effort.
D)ancillary products used to make other products work more efficiently.
E)low-cost items for which there are numerous substitutes and generic equivalents.

Question 42

With respect to distribution, convenience products are available

A)at relatively few outlets.
B)at a large number of specialty outlets.
C)only online from the manufacturer.
D)only at convenience stores.
E)on a widespread basis at many outlets.

Question 43

Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are referred to as __________.

A)specialty products
B)selective products
C)shopping products
D)prestige products
E)convenience products

Question 44

Which of the following would most likely be considered a consumer product?

A)bricks
B)cotton fiber
C)printing press
D)suitcases
E)mainframe computer

Question 45

In terms of price, which of the following types of consumer product would be relatively inexpensive?

A)shopping product
B)convenience product
C)specialty product
D)unsought product
E)supplies

Question 46

Business products are also referred to as __________.

A)B2B products
B)B2C products
C)B4B products
D)BOB products
E)B4C products

Question 47

The type of good for which the consumer compares several alternatives on such criteria as price, quality, and style is a(n)

A)shopping product.
B)convenience product.
C)specialty product.
D)unsought product.
E)B2B product.

Question 48

Which type of consumer product is purchased relatively infrequently and the purchase decision takes some time because the consumer compares offerings during the shopping experience?

A)convenience product
B)shopping product
C)specialty product
D)unsought product
E)discretionary product

Question 49

Consumer product classifications differ in terms of the: (1) effort the consumer spends on the decision; (2) frequency of purchase; and (3) the

A)amount of money the customer is willing and able to spend.
B)number of competing or substitute products.
C)demographics of the consumer.
D)attributes used in making the purchase decision.
E)consumer segmentation characteristics.

Question 50

In terms of promotion, which of the following type of product would stress price, availability, and awareness?

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

Question 51

Products organizations buy that assist in providing other products for resale are referred to as __________.

A)reseller goods
B)wholesale goods
C)business products
D)ancillary products
E)retail products

Question 52

Business products are also referred to as __________.

A)commodities
B)industrial products
C)wares
D)resale products
E)merchandise

Question 53

Which of the following is the best example of a convenience product?

A)Kindle Fire
B)Lexus LS 460 luxury automobile
C)flight on United Airlines
D)Roget's Thesaurus
E)Hidden Valley Ranch salad dressing

Question 54

Business products refer to

A)products organizations buy that assist in providing other products for resale.
B)supplies necessary for the day-to-day operations of a business.
C)ancillary services necessary for the operation of a business.
D)products that are sold exclusively to for-profit businesses.
E)products purchased by the ultimate consumer.

Question 55

With respect to distribution, shopping products are available

A)by special order from the manufacturer.
B)at an extremely small number of outlets.
C)at relatively few outlets.
D)at a large number of selective outlets.
E)on a widespread basis at many outlets.

Question 56

Products that are purchased by the ultimate consumer are referred to as __________.

A)generic products
B)end user goods
C)personal items
D)merchandise
E)consumer products

Question 57

Shopping products refer to items that the consumer

A)purchases frequently, conveniently, and with a minimum of effort.
B)compares several alternatives on criteria such as price, quality, or style.
C)makes a special effort to search out and buy.
D)does not know about or knows about but does not initially buy.
E)buys as a result of buying others' consumer products, such as impulse purchases.

Question 58

Industrial products are also referred to as __________ products.

A)consumer
B)merchandise
C)organizational
D)resale
E)business

Question 59

An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT:

A)a business product.
B)a nondurable good.
C)a B2B product.
D)a durable good.
E)a consumer product.

Question 60

In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes for which type of product?

A)convenience products
B)specialty products
C)unsought products
D)shopping products
E)supplies

Question 61

With respect to promotion, which of the following strategies would most likely be used for unsought products?

A)offering consumer and trade sales promotions
B)establishing the uniqueness and status of the brand
C)generating awareness
D)differentiating the brand from competitive brands
E)stressing price and availability in advertising

Question 62

In terms of promotion, which of the following type of consumer product stresses status and brand uniqueness?

A)specialty product
B)convenience product
C)shopping product
D)unsought product
E)discretionary product

Question 63

Distribution is very limited with which of the following type of consumer product?

A)shopping product
B)convenience product
C)discretionary product
D)prepurchase product
E)specialty product

Question 64

Burberry makes fine raincoats, clothing, and other items, many that feature the company's distinctive plaid. Originally found only in Great Britain, Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry is selling which classification of consumer product?

A)convenience product
B)shopping product
C)discretionary product
D)unsought product
E)specialty product

Question 65

With respect to price, which of the following type of consumer product would usually be very expensive?

A)convenience product
B)shopping product
C)discretionary product
D)specialty product
E)unsought product

Question 66

In terms of promotion, which of the following type of consumer product stresses product differentiation from competitors?

A)shopping product
B)convenience product
C)specialty product
D)unsought product
E)discretionary product

Question 67

You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall?

A)convenience products
B)shopping products
C)unsought products
D)specialty products
E)discretionary products

Question 68

Which of the following is most likely to be an example of an unsought product?

A)iPod MP3 player
B)Lexus LS 460 luxury automobile
C)flight on American Airlines to Phoenix
D)Roget's Thesaurus
E)Ivory soap

Question 69

Which of the following is most likely to be an example of an unsought product?

A)snow shovel
B)smartphone
C)gym membership
D)calculator
E)burial insurance

Question 70

-According to Figure 9-2 above, column A would represent which type of product?

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

Question 71

A newly-invented apple peeling and coring machine for the consumer market would be considered a(n)

A)shopping product.
B)convenience product.
C)specialty product.
D)unsought product.
E)discretionary product.

Question 72

Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision?

A)convenience product
B)shopping product
C)specialty product
D)unsought product
E)discretionary product

Question 73

In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of consumer product?

A)shopping product
B)convenience product
C)specialty product
D)unsought product
E)discretionary product

Question 74

In terms of brand loyalty, consumers prefer specific brands but will accept substitutes for which type of consumer product?

A)shopping product
B)convenience product
C)specialty product
D)unsought product
E)discretionary product

Question 75

Very infrequent purchases with some comparison shopping are characteristic of the purchasing behavior for a type of consumer product (such as a thesaurus) that a prospective buyer may not initially want. This type of consumer service is referred to as a(n)

A)unsought product.
B)shopping product.
C)convenience product.
D)specialty product.
E)support product.

Question 76

With respect to price and availability, shopping products are likely to be

A)relatively inexpensive and widely available.
B)relatively inexpensive but very limited availability.
C)very expensive and available at a large number of selective outlets.
D)very expensive with very limited availability.
E)fairly expensive and available at a large number of selective outlets.

Question 77

Fifty percent or more of American adults have not had their teeth checked by a dentist within the last five years. For these people, dental services would most likey be classified as a(n)

A)shopping product.
B)convenience product.
C)specialty product.
D)unsought product.
E)business product.

Question 78

Unsought products are

A)any products associated with impulse buys at the supermarket checkout counter.
B)products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle.
C)items within a company's product line that do not perform as well as others in the line.
D)products that the consumer does not know about or knows about but does not initially want.
E)products that people choose to ignore because they find them offensive from a moral or ethical perspectivE.Key term definition - unsought products.

Question 79

Specialty products refer to

A)products for which there are no close substitutes.
B)products purchased for their prestige or high perceived value.
C)products a consumer will make a specific effort to search out and buy.
D)items for which the consumer compares several alternatives on several criteria such as price, quality, or style.
E)items that the consumer does not know about or knows about but does not initially buy.

Question 80

You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall?

A)specialty product
B)unsought product
C)discretionary product
D)shopping product
E)convenience product