“Product” means: A) a physical good with all its related services.

26. “Product” means:

A) a physical good with all its related services.

B) the need-satisfying offering of a firm.

C) all of a firm’s producing and distribution activities.

D) a well-packaged item with a well-advertised brand name.

E) all the services needed with a physical good.

27. A “product” might include:

A) instructions.

B) a service which does not include a physical good at all.

C) some physical item and its related features.

D) a brand name, a package, and a warranty.

E) All of the above.

28. A product assortment is:

A) a particular product within a product line.

B) a set of products that are closely related.

C) the set of all product lines and individual products that a firm sells.

D) something offered by manufacturers but not by retailers.

E) None of the above.

29. Which of the following is NOT one of the consumer product classes discussed in the text?

A) Imitation products

B) Shopping products

C) Convenience products

D) Specialty products

E) Unsought products

30. ______________ are products a consumer needs but isn’t willing to spend much time and effort shopping for.

A) Unsought products

B) Homogeneous shopping products

C) Specialty products

D) Heterogeneous shopping products

E) Convenience products

31. Impulse products are:

A) bought quickly–as unplanned purchases–because of a strongly felt need.

B) any products that consumers search for because of a strongly felt craving.

C) any convenience products that are bought often and routinely.

D) products that potential customers do not want yet or know they can buy.

E) All of the above.

32. During a heavy rainstorm, Avery Battle slipped into a drugstore and bought an umbrella–just like the one he had at home–for $15.00 plus tax.In this case, the umbrella is:

A) a shopping product.

B) an unsought product.

C) an emergency product.

D) an impulse product.

E) a specialty product.

33. Consumer products which customers see as basically the same and want to buy at the lowest price are called:

A) homogeneous shopping products.

B) comparison products.

C) unsought products.

D) convenience products.

E) heterogeneous shopping products.

34. A producer that is selling all its products under one brand name is using ______________ brand.

A) a generic

B) a licensed

C) a national

D) an individual

E) a family

35. A “dealer brand” is sometimes called a ______________ brand.

A) local

B) manufacturer

C) private

D) regional

E) national

36. Dealer brands, compared to manufacturer brands, usually offer wholesalers and retailers:

A) higher gross margins.

B) faster turnover at reduced selling costs.

C) products which are presold to target customers.

D) more prestige.

E) less risk.

37. Which of the following is NOT one of the text’s product life cycle stages?

A) Market penetration

B) Market introduction

C) Sales decline

D) Market growth

E) Market maturity

39. Total industry profits reach their maximum during the __________ stage of the product life cycle.

A) sales decline

B) market development

C) market introduction

D) market growth

E) market maturity

40. Competition is toughest in which of the following product life cycle stages?

A) market growth.

B) market maturity.

C) market development.

D) market introduction.

41. During the SALES DECLINE stage of the product life cycle

:

A) no profits are earned.

B) price competition usually declines.

C) brand loyalty declines.

D) monopoly is typical.

E) firms with strong brands may make profits almost until the end.

42. A new product idea is more likely to move quickly through the early stages of the product life cycle when:

A) the product is compatible with the values and experiences of target customers.

B) the product can be given a trial.

C) the product’s advantages are easy to communicate.

D) the product is easy to use.

E) All of the above are correct.

43. During the introduction stage of the product life cycle,

A) most products achieve intensive distribution.

B) industry profits are at their highest.

C) promotion is likely to be needed to build primary demand.

D) “me-too” products quickly take market share away from the innovator.

E) None of the above is true.

44. Concerning the product life cycle:

A) individual products may enter and leave the market at any stage.

B) a successful introduction almost guarantees that the product will remain a success over the life cycle.

C) profits and sales begin to decline in the maturity stage.

D) All of the above are true.

E) None of the above is true.

45. According to the text, a “new product” is one that is:

A) unique.

B) new in any way for the company concerned.

C) completely new physically and conceptually.

D) physically changed.

E) None of the above.

46. According to the FTC, for a producer to call a product “new,” the product:

A) must be no more than two months old.

B) must have achieved brand insistence.

C) must be entirely new or changed in a functionally significant or substantial respect.

D) must have been changed in some way during the last year.

E) Both A and C.

47. The last step in the new-product development process is:

A) commercialization.

B) idea evaluation.

C) development.

D) screening.

E) idea generation.

48. The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called:

A) breach of warranty.

B) rule of reason.

C) product liability.

D) design enforcement.

E) product responsibility.

49. Which of the following statements about organizing for new-product development is TRUE?

A) Few new-product ideas fail when product managers control the new-product development process.

B) The specific organization arrangement may not be too important–as long as there is top-level support.

C) Marketing managers should control new-product development.

D) New-product development departments or committees usually cause delays and should be avoided.

E) All of the above are true.

50. Which of the following is NOT an example of an organizational buyer?

A) a woman buying cookware to sell to her friends and neighbors.

B) a sales rep buying a new necktie to make a good impression.

C) a wholesaler buying a delivery truck.

D) a government buyer purchasing a new desk for the mayor’s office.

E) None of the above is a good example.