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.