CHAPTER 11
Product Concepts
1. What
is a product?

2. Describe
and illustrate the four major categories of consumer products.

3. Distinguish
between consumer products and business products.

4. Discuss
the implications for a firm’s marketing strategy of classifying a product as a
convenience, shopping, specialty, or unsought item.

5. Discuss
some of the issues a marketer should consider when marketing a shopping
product.

6. Identify
and describe the major categories of business products.

7. Discuss
the dimensions of a product mix.

8. Identify
the major stages of the product life cycle, and explain how industry sales and
profits vary across these stages.

9. For
each product life cycle stage, discuss the strategic implications.

10. Explain
the major stages of the product adoption process.

11. Discuss
the marketing efforts that are likely to be used during the growth stage of the
product life cycle.

12. What
major changes in a marketing strategy may be required as a product moves into
the maturity stage of the product life cycle?

13. Why
do products fail?

14. What
steps can be taken to reduce the risk of product failure?

15. A(n)
_____ is a concept, philosophy, or image.
a) product
b) good
c) idea
d) service
e) issue

16. MADD
(Mothers Against Drunk Driving) is a nonprofit organization that primarily
markets
a) services.
b) ideas.
c) goods.
d) tangible
products.
e) features.

17. According
to the text, a product is defined as
a) anything
the customer receives in an exchange.
b) the
physical object the customer receives in an exchange.
c) the
service that is rendered to a customer.
d) the
idea that the customer receives in an exchange.
e) goods
and services the customer receives in an exchange.

18. To
make intangible products more tangible or real to the consumer, marketers often
a) use
low prices on intangible goods.
b) use
symbols or cues to help symbolize product benefits.
c) use
external reference prices.
d) use
multiple channels of distribution.
e) offer
more support services with such products.

19. Which
of the following best illustrates how a firm can use a symbol to make an
intangible product more tangible?
a) McDonald’s
arches
b) Mercedes
Benz emblem
c) Nike
swoosh
d) Traveler’s
Insurance umbrella
e) Arrows
on Wrigley gum packages

20. A
light bulb can be considered all of the following except
a) a
consumer product.
b) a
business product.
c) either
a consumer product or a business product.
d) a
business product if it is used to light an assembly line in a factory.
e) a
consumer product if it is used to light the office of the board of directors.

21. Products
are classified as being business or consumer products according to the
a) goals
of the organization.
b) buyer’s
intended use of the product.
c) seller’s
intended use of the product.
d) location
of use.
e) types
of outlets from which they are purchased.

22. Which
of the following is always used to determine the classification of a good?
a) Buyer’s
intent for using the product
b) Amount
of shopping required by the buyer to obtain the product
c) Price
of the product
d) Specific
product features
e) Industry
competitors

23. Megan
Avakian, who works as a purchasing agent for Greyhound Transport, buys
carpeting for use in an office area at Greyhound. What determines whether this
carpeting is a consumer or a business product?
a) Price
b) Selling
organization
c) Terms
of the sale
d) Buyer’s
intended use of the product
e) Benefits
the product provides

24. Which
of the following is most likely to be considered a convenience good?
a) A
lamp
b) A
haircut
c) Running
shoes
d) Gatorade
e) Concert
tickets purchased online

25. Energizer
batteries would be classified as which type of product?
a) Convenience
b) Shopping
c) Specialty
d) Unsought
e) Industrial
service

26. Products
which are relatively inexpensive and frequently purchased with minimal effort
are classified as ___________ products.
a) shopping
b) convenience
c) industrial
d) specialty
e) unsought

27. Dannon
Yogurt represents what type of product for most consumers?
a) Convenience
b) Business
c) Shopping
d) Specialty
e) Durable

28. Convenience
products are
a) relatively
inexpensive, frequently purchased items for which buyers exert only minimal
purchasing effort.
b) frequently
purchased items for which buyers are willing to exert considerable effort.
c) frequently
purchased items that are found in certain retail outlets.
d) items
that are expensive but are easy to purchase.
e) items
that require some purchase planning and for which the buyer often will not
accept substitutes.

29. Which
of the following statements does not apply to convenience goods?
a) Consumers
are brand loyal to convenience products and are not likely to substitute other
brands.
b) Convenience
products require minimal shopping effort.
c) Marketing
of convenience products requires intensive exposure of these goods in as many
stores as possible.
d) Consumers
tend to feel that the most desirable retail facility for convenience products
is the closest one.
e) Colas,
gasoline, and bread are good examples of convenience goods.

30. Products
for which buyers are willing to spend much time comparing stores and brands for
differences in prices, product features, and services are called ______
products.
a) shopping
b) specialty
c) service
d) convenience
e) unsought

31. Shannon
Hill needed to buy an airline ticket to visit her parents. She called several
airlines to compare rates and chose a flight on Southwest Air Lines because,
for comparable prices, it had a better reputation for service. For Shannon,
this flight is an example of which type of product?
a) Shopping
b) Convenience
c) Specialty
d) Unsought
e) Industrial

32. Gap
clothing stores sell primarily what type of products?
a) Convenience
b) Shopping
c) Unsought
d) Nondurable
e) Specialty

33. Shopping
products have a _____ inventory turnover and need _____ distribution outlets
than convenience goods.
a) similar;
more
b) higher;
fewer
c) higher;
more
d) lower;
more
e) lower;
fewer

34. Buyers
do not compare alternatives when shopping for ______ products.
a) convenience
b) specialty
c) shopping
d) unique
e) unsought

35. The
Carsons are going on a vacation back to Texas. When they lived there, Gwen
Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to
buy two boxes at the first store she visits after they arrive. For Gwen, Blue
Bell represents a(n) ___________ product.
a) convenience
b) shopping
c) specialty
d) unsought
e) durable

36. A
specialty product
a) requires
minimal effort to purchase.
b) is
purchased frequently.
c) requires
purchase planning, and the buyer will not accept substitutes.
d) is
generally less expensive than other items in the same product class.
e) prompts
the purchaser to make comparisons among alternatives.

37. David
Wilson is an avid collector of Major League Baseball memorabilia. He greatly
desires to own the “special” bat that got the slugger Sammy Sosa a seven-game
suspension due to its illegal contents. This is an example of a(n) ______
product.
a) shopping
b) unique
c) specialty
d) historical
e) unsought

38. As
Beth and Rob Barker search for a new home, they are interested only in houses
built by a particular builder. This purchase is characteristic of a(n)
___________ product.
a) convenience
b) unsought
c) disposable
d) shopping
e) specialty

39. When
a sudden problem confronts a consumer, such as emergency automobile repair, he
or she is likely going to view solutions to that problem as
a) specialty
products.
b) installations.
c) unsought
products.
d) shopping
products.
e) convenience
products.

40. Nick
Arnold’s Auto Towing Service would best be described as a(n) __________ product.
a) convenience
b) unsought
c) specialty
d) durable
e) shopping

41. Business
products are
a) purchased
for personal consumption.
b) chosen
on the basis of preferences expressed by a business procurement department.
c) purchased
for both their functional aspects and their psychological rewards.
d) classified
according to their characteristics and intended uses.
e) not
purchased by nonbusiness organizations.

42. Facilities,
factories, and production lines with very large equipment are all classified as
a) accessory
equipment.
b) permanents.
c) installations.
d) component
parts.
e) MRO
facilities.

43. Tojitos
Mexican Restaurant purchased several large ovens for use in remodeling its
kitchens. These ovens are an example of which type of business product?
a) Raw
materials
b) Installations
c) Accessory
equipment
d) Component
parts
e) Process
materials

44. As
the production manager of an engineering firm, you went out and bought a metal
cutting machine. What you have purchased can best be classified as a
a) raw
material.
b) processed
component.
c) component
part.
d) service.
e) business
product.

45. An
accountant buys a supply of pencils to be used in calculating the taxes of other
business firms. Based on this information, pencils in this case would be
considered what type of product?
a) Business
b) Process
materials
c) Raw
material
d) Convenience
e) Consumer

46. Which
of the following is not a business product?
a) Oil
to be refined into fuel
b) Chips
to be integrated into components for personal computers
c) Paper,
pens, and tape to be used in an office
d) Marketing
consulting services to aid a company in marketing a new product
e) Calculators
bought to help individuals complete their personal federal income tax forms

47. Large
tools and machines used in a production process for a considerable length of
time are classified as
a) installations.
b) accessory
equipment.
c) component
parts.
d) raw
materials.
e) MRO
supplies.

48. Business
products are classified into the following seven categories according to
characteristics and intended uses: raw materials, installations, accessory
equipment, component parts, process materials, business services, and
a) production
activities.
b) service
assistance.
c) specialty
industrial products.
d) computer
programming and operation services.
e) MRO
supplies.

49. Minerals,
chemicals, timber, and agricultural products are considered
a) process
materials.
b) accessory
materials.
c) MRO
supplies.
d) component
parts.
e) raw
materials.

50. A
distributor of plumbing supplies purchases a desktop computer to aid in
inventory control. This computer is an example of which type of business
product?
a) Raw
material
b) Installations
c) Accessory
equipment
d) Component
part
e) Process
material

51. Although
they become part of a larger product, _______ can often be easily identified
and distinguished on the larger product.
a) component
parts
b) accessory
parts
c) raw
materials
d) process
materials
e) MRO
supplies

52. Business
products that are purchased routinely, do not become part of finished goods,
and are expense items rather than capital goods are called
a) raw
materials.
b) installations.
c) accessory
equipment.
d) component
parts.
e) process
materials.