Ch.12 Exam Questions Product And Distribution Strategies

Package Title: Chapter 12, Testbank

Course Title: Boone, 18e

Chapter Number: 12

Question type: Multiple Choice

1) A single brand name such as Johnson & Johnson that is used for the entire line of products is an example of a(n) _____.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

2) A(n) _____ is a company that moves goods between producers and consumers or business users.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

3) Coca-Cola, Nike, Google, and American Express are examples of _____.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

4) _____ refers to the stages a product goes through.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

5) A(n) _____ is a distribution channel that sells primarily to retailers, other wholesalers, or business users.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.5

Section Reference 1: Explain the concept of wholesaling.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

6) _____ introduces a new product to a selected city, and can sometimes be supported with a complete marketing campaign.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

7) _____ are items a consumer seeks to purchase frequently, immediately, and with little effort.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

8) A company’s _____ is a group of related products marked by physical similarities or intended for a similar market.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

9) _____ means the product is the first one that comes to mind when a product category is mentioned.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

10) The process of coordinating the flow of goods, services, and information among members of the supply chain is called _____.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

11) In a process called the _____, new retailers enter the market by offering lower prices made possible through reductions in service.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

12) _____ is the ultimate degree of brand loyalty, in which the consumer will look for it at another outlet, special-order it from a dealer, order by mail, or search the Internet.

a) marketing intermediary

b) Test marketing

c) Brand insistence

d) Product life cycle

e) brand names

f) wholesaler

g) family brand

h) Brand awareness

i) Convenience products

j) product line

k) wheel of retailing

l) logistics

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

Question type: Essay

13) Describe product. What decisions are included in the marketing conception of a product?

Solution: A product is a bundle of physical, service, and symbolic attributes designed to satisfy consumer wants. The marketing conception of a product includes decisions about package design, brand name, trademarks, warranties, product image, new-product development, and customer service.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

14) Compare the classification of consumer goods and services to business goods and services.

Solution: Goods and services are classified as either consumer or business depending on whether the purchasers of the particular item are consumers or businesses. Consumer products are those purchased by ultimate consumers for their own use. They can be convenience products, shopping products, or specialty products. Business products are those for use either directly or indirectly in the production of other goods and services for resale. They can be classified as installations, accessory equipment, component parts and materials, raw materials, and supplies. Services can be classified as either consumer or business.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Analysis

15) Offer examples of each of the following consumer products: convenience, shopping, and business.

Solution: Convenience products include items such as newspapers, snacks, or candy. Shopping products include items such as a new sofa or television set. Examples of business products include paycheck services, large multifunctional copy machines, and raw materials.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

16) Describe the relationship between a company’s product line and product mix.

Solution: A product line is a series of related products marked by physical similarities or intended for a similar market. A product mix is the assortment of product lines and individual goods and services that a company offers to consumers and business users.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

17) Explain how services differ from goods.

Solution: Services, unlike goods, are intangible. Services are perishable, since neither consumers nor companies can stockpile them in inventory. Services are also difficult to standardize, since consumer needs, wants, and expectations vary. Finally, from a buyer’s perspective, the service provider is the service.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

18) Outline and describe the major stages of the product life cycle.

Solution: The product life cycle refers to the four stages a product goes through from the time it first enters the market until it is no longer a viable product. These stages are introduction, growth, maturity, and decline. In the introduction stage, the company tries to promote demand for its new offering; inform the market about it; give free samples to entice consumers to make a trial purchase; and explain its features, uses, and benefits. During the growth stage, sales climb quickly as new customers join early users who now are repurchasing the item. Word-of-mouth referrals and continued advertising and other special promotions by the company induce others to make trial purchases. In the maturity stage, industry sales at first increase, but they eventually reach a saturation level at which further expansion is difficult. Competition also intensifies, increasing the availability of the product. Sales continue to fall in the decline stage, the fourth phase of the product life cycle. Profits decline and may become losses as further price-cutting occurs in the reduced overall market for the item.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

19) Describe methods used to extend life cycle of a product.

Solution: A commonly used strategy for extending the life cycle is to increase customers’ frequency of use. Another strategy is to add new users. Finally, a third approach includes finding new uses for a product.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

20) What is concept testing and focus groups?

Solution: Concept testing refers to marketing research designed to solicit initial consumer reaction to new-product ideas. For example, potential consumers might be asked about proposed brand names and other methods of product identification. Focus groups are sessions in which consumers meet with marketers to discuss what they like or dislike about current products and perhaps test or sample a new offering to provide some immediate feedback.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

21) Describe how Francis Sollano is helping to create unique fashion as well as jobs.

Solution: Environmentalist and artist Francis Sollano has come up with the “trashion” fashion collection. Trashion is a fusion of “trash” and “fashion,” and Sollano has come up with a fashionable way to recycle found, used, and repurposed elements. Sollano’s constant new product development utilizes “making something from nothing.” As a result, new ways to think about supply chains, fashion, and retail have evolved.

Working with restaurants and shops in his hometown of Cebu in the Philippines to turn their garbage into wearable fashion and art, Sollano employs local labor to contribute to a cleaner environment while creating livelihood opportunities. In addition to creating installations and fashion made from trash, Sollano is a founding member of Youth for a Livable Cebu, which works on the development and livability of local communities. Trashion continues to serve the dual purpose of creating jobs and unique and interesting fashion.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

22) Explain how the Dollar Shave Club achieved growth despite facing competition from Gillette.

Solution: The Dollar Shave Club sends razors, shaving cream, and wipes directly to consumers, mostly men, on a subscription basis for as little as $1 to $9 per month—depending on the type of blade. The success of this idea is directly related to satisfying unmet customer needs. The rising cost of a good shave and changing consumer shopping habits have contributed to the company’s strong growth.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

23) What are the differences among a brand, a brand name, and a trademark?

Solution: A brand is a name, term, sign, symbol, design (or a combination) used to identify the products of one company and differentiate them from competing products. A brand name is that part of the brand consisting of words or letters included in a name used to identify and distinguish the company’s products from those of competitors. A trademark is a brand that has been given legal protection.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Analysis

24) Explain why choosing the right package and label is especially crucial in international marketing.

Solution: Choosing the right package is especially crucial in international marketing because marketers must be aware of such factors as language variations and cultural preferences. Package size can vary according to the purchasing patterns and market conditions of a country. Package weight is another important issue, because shipping costs are often based on weight.

Labeling is an integral part of the packaging process as well. In the United States, labeling must meet federal laws requiring companies to provide enough information to allow consumers to make value comparisons among competitive products and, in the case of food packaging, provide nutrition information on the label. Marketers who ship products to other countries have to comply with labeling requirements in those nations.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

25) Describe why the Google Glass flopped.

Solution: Google Glass, which didn’t work properly, was touted as a pair of high-tech glasses with the capability to scan surroundings and send information to the eye’s retina. However, its functionality was flawed due mainly to the need for a larger battery to fully perform its intended functions. Some call the design distracting, and the eyeglass, with a $1,500 price tag, was prone to break.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

26) Explain the requirements for and the responsibilities of a brand manager.

Solution: The career path to a brand manager typically requires a college degree and an entry-level position as a marketing analyst or sales representative. To become an assistant brand manager, with the responsibility for developing a brand’s strategy, several years of experience or a degree may be required. The most sought-after skills for brand managers include analytical skills, problem-solving abilities, creativity, strategic vision, and the intuition and ability to take action. Most brand managers also have some background and coursework in marketing or sales.

A brand manager monitors the competitive landscape of a brand’s category or segment; develops strategies to take advantage of opportunities in the marketplace; executes those strategies with the help of a cross-functional marketing team; and delivers the sales volume, market share, and profit projections forecasted by company management. As part of a company’s marketing function, a brand manager sets the strategic direction of a brand and works with various departments within the organization to execute the strategy. This includes product and strategy development, manufacturing, product extension, package design, marketing research, business and financial forecasts and analysis, and promotion.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

27) Discuss the benefits of having marketing intermediaries and provide an example.

Solution: Marketing utility is created when intermediaries help ensure that products are available for sale when and where customers want to purchase them. If you want something warm to eat on a cold winter night, you don’t call up Campbell’s Soup and ask them to ship a can of chicken noodle soup. Instead, you go to the nearest grocery store, where you find utility in the form of product availability. In addition, intermediaries perform such important services as transporting merchandise to convenient locations. Finally, by representing numerous producers, a marketing intermediary can cut the costs of buying and selling.

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

28) Differentiate between direct distribution channels and distribution channels that involve several different marketing intermediaries. Provide an example of each type.

Solution: A direct distribution channel is one that moves goods and services directly from the producer to the ultimate user, or distribution channels that involve several different marketing intermediaries. Consumers and businesses that purchase computers directly from manufacturers, such as Dell computers, are using a direct distribution channel. A marketing intermediary (also called a middleman) is a company that moves goods between producers and consumers or business users. Marketing intermediaries perform various functions that help the distribution channel operate smoothly, such as buying, selling, storing, and transporting products; sorting and grading bulky items; and providing information to other channel members. For example, a grocery store is the intermediary between Del Monte and consumers.

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Analysis

29) Describe how Local Foods helps farmers distribute their produce.

Solution: Andrew Lutsey, a Wisconsin native, has built a business serving as a fresh-produce intermediary between more than 100 Midwestern farmers and local chefs and restaurateurs in the Chicago area. Local Foods is in its third year of operations, and with sales nearing $5 million, Lutsey has learned that as an intermediary, relationships not only matter, but they also take time. With intense competition, price and service matter as well, particularly against other local and regional wholesalers, some of whom have been around for over a century. But as an intermediary between farmers and wholesale buyers, Lutsey has figured out how to differentiate Local Foods.

In Rochelle, Illinois, a hydroponic tomato farm, named MightyVine, has emerged. The demand for fresh, locally grown tomatoes is brisk during the winter months, and Local Foods delivers the “hot” tomatoes to local restaurants. For a farmer in nearby Sandwich, Illinois, Local Foods has provided a lifeline to someone who acknowledges that he struggled to figure out the logistics of the wholesale process. During the summertime, Local Foods delivers more than 1,000 pounds of the Sandwich farmer’s produce on a weekly basis to Chicago restaurants. Without Local Foods, some farmers might not otherwise have an effective way to ultimately connect with foodies in Chicago-area restaurants.

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

30) Differentiate between a merchant wholesaler and an agent or broker in terms of title to the goods.

Solution: Agents or brokers may or may not take possession of the goods they handle, but they never take title, working mainly to bring buyers and sellers together.

Difficulty: Medium

Learning Objective 1: 12.5

Section Reference 1: Explain the concept of wholesaling.

Standard 1: AACSB || Analytic

Bloomcode: Analysis

31) Explain how stores like Best Buy are attempting to handle fraud when accepting returned items from customers.

Solution: Most retailers will allow returns from customers suffering from buyers’ remorse. However, retailers like Best Buy are tracking those who return items frequently.

Using customized software, Best Buy is tracking and cracking down on serial returners. It is estimated that one in five purchases are returned to Best Buy, which the retailer says can have serious financial consequences. Serial returns can be associated with fraud, when customers either steal items from a store and return with a counterfeit receipt or without a receipt or take back used or worn merchandise on a regular basis. Best Buy will refuse to accept a return if its database records a high number of returns or large dollar amounts on specific returns from the same customer. Most retailers are well aware of so-called friendly fraud that applies to consumers not shy about “wardrobing,” using a product for a while before returning it.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

32) How can retailers influence consumer perception using the physical characteristics of their stores?

Solution: A successful retailer closely aligns its merchandising, pricing, and promotion strategies with store atmospherics, the physical characteristics of a store and its amenities, to influence consumers’ perceptions of the shopping experience. Atmospherics begin with the store’s exterior, which may use eye-catching architectural elements and signage to attract customer attention and interest. Interior atmospheric elements include store layout, merchandise presentation, lighting, color, sound, and cleanliness. A high-end store such as Nordstrom, for instance, features high ceilings in selling areas that spotlight tasteful and meticulously cared-for displays of carefully chosen items of obvious quality. Hollister has dim lights and loud music for a club-like atmosphere to attract teenagers. Bookstore Barnes & Noble has an inviting atmosphere that is warm and cozy.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

33) Offer examples of products using the three levels of distribution intensity.

Solution: Products such as milk and newspapers use intensive distribution. Products such as Porsche automobiles use exclusive distribution. Estee Lauder cosmetics use selective distribution.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Application

34) Describe the supply chain.

Solution: The supply chain is the complete sequence of suppliers that contribute to creating and delivering a good or service to business users and final consumers. The supply chain begins when raw materials used in production are delivered to the manufacturer and continues with the actual production activities that create finished goods. Finally, the finished goods move through the producer’s distribution channels to end users.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

35) How is Amazon eliminating the consumer’s trip to the store for household goods?

Solution: Amazon.com has made it as easy as the click of a button, called Dash, to order paper towels, laundry detergent, and toilet paper. This one-click option, made possible through a small Internet-enabled hardware device, bypasses the “middle man” and creates a direct connection between Amazon and its buyers. The Dash button, offered for free, can conveniently be placed near products that typically need replenishing—for example, on a washing machine or alongside a paper towel holder. The device uses Wi-Fi to send a message to a consumer’s Amazon account, automatically ordering the needed item. To stay competitive, retailers must sell across multiple channels, while engaging and providing a personalized shopping experience to consumers.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Application

Question type: Multiple Choice

36) Which of these describes a bundle of physical, service, and symbolic characteristics designed to satisfy consumer wants?

a) Benefits

b) Product

c) Trademark

d) Logistics

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

37) A marketer’s product strategy focuses on a product’s

a) benefits.

b) symbolic attributes.

c) service attributes.

d) physical characteristics.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

38) Goods and services are classified as either consumer or business, depending on the

a) amount of service required on the item

b) buying motives of the purchasers

c) cost of the particular item

d) purchasers of the particular item as consumers or businesses

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

39) What are consumer products usually classified as?

a) Capital items, convenience items, and specialty products

b) Convenience products, shopping products, and specialty products

c) Convenience products and expense items

d) Expense items and capital items

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

40) Which of the following best describes convenience products?

a) Items a consumer seeks to purchase frequently, immediately, and with little effort

b) Items typically purchased only after the buyer has compared competing products in competing stores

c) Goods that a purchaser is willing to make a special effort to obtain

d) Goods and services such as payroll services and huge multifunction copying machines used in operating an organization

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

41) _______ are products purchased only after the consumer has compared competing products in competing stores on the basis of price, quality, style, and color.

a) Business products

b) Shopping products

c) Specialty products

d) Convenience products

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

42) For which of these products, number of retail outlets are many?

a) Business products and specialty products

b) Shopping products and specialty products

c) Specialty products and unsought products

d) Convenience products and unsought products

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

43) For which of these products, store image is unimportant?

a) Business products and specialty products

b) Shopping products and specialty products

c) Specialty products and unsought products

d) Convenience products and unsought products

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

44) Life insurance and burial services are examples of which type of products?

a) Specialty products

b) Shopping products

c) Unsought products

d) Convenience products

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

45) Which type of products have exclusive distribution with very few wholesalers and retailers and one or a few outlets?

a) Specialty products

b) Shopping products

c) Unsought products

d) Convenience products

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

46) Only a few dealers of ABC Corp., an automobile manufacturer, are located in the Los Angeles metropolitan area. For buyers who will accept no substitute, ABC automobiles are

a) specialty products.

b) convenience products.

c) shopping products.

d) business products.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

47) Vickie owns a store that prepares gourmet chocolates, which are hand-made and sold on the premises. What type of product is Vickie selling?

a) Accessory

b) Specialty

c) Shopping

d) Convenience

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

48) Brady wants to replace his old mattress with a new soft-foam mattress and has spent almost a week researching different brands and prices. When he is ready to buy, Brady will be purchasing a(n) _____ product.

a) convenience

b) shopping

c) specialty

d) accessory

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

49) Which of the following classifications of products apply to business goods and services?

a) Supplies and specialty products

b) Specialty products and convenience products

c) Installation and accessory equipment

d) Shopping products and expense items

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

50) A portable drill is classified as which of the following?

a) Accessory equipment

b) Shopping products

c) Specialty products

d) Capital item

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

51) The tires of race cars are classified as

a) supplies.

b) specialty products.

c) accessory equipment.

d) component parts and materials.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

52) When Garden Galore Corp. purchases light bulbs for everyday use, it is purchasing

a) expense items.

b) component parts.

c) raw materials.

d) supplies.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

53) Natural resources, such as iron ore used in producing finished goods, are classified as

a) accessory equipment.

b) supplies.

c) raw materials.

d) component parts and materials.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

54) General Mills products include Betty Crocker, Pillsbury, Haagen-Dazs, Green Giant, Hamburger Helper, and Progresso. These examples constitute General Mills’

a) distribution strategy.

b) product mix.

c) product cluster.

d) product line.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

55) Cornell Corp. sells a range of products like Panther cellphones, Ober laptops, and Zappa music players. These products represent the _____ of Cornell Corp.

a) product life cycle

b) product line

c) product cluster

d) product mix

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

56) Which of these best describe a group of related products marked by physical similarities or intended for a similar market?

a) Product life cycle

b) Product line

c) Product cluster

d) Product mix

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

57) Which of these best describe the assortment of product lines and individual goods and services that a company offers to consumers and business users?

a) Product life cycle

b) Logistics

c) Product cluster

d) Product mix

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

58) A product line is a group of _____ products marked by physical

a) related; similarities.

b) unrelated; similarities.

c) related; differences.

d) unrelated; differences.

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

59) Coke, Diet Coke, Cherry Coke, Coke Zero, and Coke with Lime constitute Coca Cola’s _____ of soft drinks.

a) product mix

b) product life cycle

c) product cluster

d) product line

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

60) BeamAll Corp. manufactures sunscreens with various sun protection factors, which constitutes the company’s

a) product line.

b) product cluster.

c) product life cycle.

d) product mix.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

61) Tech Toys, an electronic retailer’s collection of high-tech gadgets and electronic equipment encompasses the company’s

a) product cluster.

b) distribution strategy.

c) product mix.

d) product line.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

62) In a process called the _____, products pass through a series of stages from their initial appearance to their decline.

a) wheel of retailing

b) product identification

c) pricing cycle

d) product life cycle

Difficulty: Easy

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

63) Vincent’s car breaks down on the highway. He searches for car towing services on his smart phone and calls one for help. This is an example of a(n)

a) shopping product.

b) specialty product.

c) convenience product.

d) unsought product.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

64) In ______ stage of the product life cycle, profits generally first appear.

a) decline

b) introductory

c) growth

d) maturity

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

65) In which stage of the product life cycle do competitors enter the field with similar offerings?

a) Introductory stage

b) Decline stage

c) Maturity stage

d) Growth stage

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

66) In which stage of the product life cycle the company tries to promote demand for its new offering; inform the market about it; give free samples to entice consumers to make a trial purchase; and explain its features, uses, and benefits?

a) Introduction stage

b) Decline stage

c) Maturity stage

d) Growth stage

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

67) In which stage of the product life cycle do sales reach a saturation level, making further sales expansion difficult?

a) Maturity stage

b) Growth stage

c) Introductory stage

d) Decline stage

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

68) Kerry has been analyzing the competitive standings of one of her products. Since she began her operation, 20 similar products have appeared, forcing her to change distribution strategies. Kerry has also changed pricing strategies in order to remain competitive. Sales volume has dipped, and she suspects sales of her product have reached a saturation level. This item is in which of the following stages of the product life cycle?

a) Decline stage

b) Growth stage

c) Maturity stage

d) Introductory stage

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

69) E-readers were introduced with great success. Additional companies have entered the market and sales have continued steadily. E-readers are an example of a product in the _____ stage of the product life cycle.

a) growth

b) introduction

c) maturity

d) decline

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

70) Finau Inc. has been involved in intensive price competition with one of its products. Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item. This product has reached the _____ stage of the product life cycle.

a) growth

b) introductory

c) maturity

d) decline

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

71) Which of the following is inconsistent with a product in its decline stage?

a) Producers are beginning to leave the industry.

b) Prices begin to decline sharply.

c) Few changes occur in the product features.

d) Promotion activities are kept to a minimum.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

72) Radhika is developing a new product and is working with specialists from her organization to eliminate ideas that cannot be developed within the company’s resources. Radhika is in what stage of product development?

a) Test marketing

b) Product development

c) Screening

d) Commercialization

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

73) Amber is assessing a new product’s potential sales and competitive strengths and will obtain initial consumer reaction before the product is sold. Amber is in what stage of product development?

a) Commercialization

b) Test marketing

c) Concept development and business analysis

d) Screening

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

74) Alberto works for Kahl Inc) an electronic goods manufacturer, and is producing a new washer/dryer unit. He is collaborating with the marketing staff to arrange for a series of designs, tests, and functioning prototypes. Alberto is working in which stage of new-product development?

a) Test marketing

b) Screening

c) Commercialization

d) Product development

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

75) Which of the following is a reason why some companies skip test marketing?

a) Test marketing can alert competitors about a company’s strategies.

b) Test marketing is conducted only in selected regions.

c) Competitors can skew results by lowering prices or running special promotions.

d) Test marketing allows a company to determine the product’s performance in full-scale production.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

76) While marketing a new wireless phone, Martins Corp. decided to skip the _____ stage of product development due to the expense of developing a limited production run, as well as concern over revealing product strategies to the competition.

a) concept development and business analysis

b) test marketing

c) product development

d) screening

Difficulty: Easy

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

77) Whytech, which was previously well known for its desktop computers, finds that two of its competitors have withdrawn from the market because of the introduction of affordable laptops in the market. This allows Whytech to garner minor profits. In which of the following stages of the product life cycle is Whytech’s product?

a) The growth stage

b) The maturity stage

c) The introduction stage

d) The decline stage

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

78) A company that is a pioneer in bionics has developed prosthetic limbs that can respond to commands from the brain. They bring in potential recipients in order to make sure that the prostheses are functioning well with different injury types. Which of the following stages of product development does this scenario represent?

a) Focus group testing

b) Concept testing

c) Test marketing

d) Commercialization

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

79) A brand that has been given legal protection is known as a

a) patent.

b) copyright.

c) trademark.

d) royalty.

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

80) Which of the following is necessary for a brand to be effective?

a) It should be ambiguous.

b) It should be created with the use of jargon.

c) It should be easy to pronounce.

d) It should be a generic word.

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

81) When Kroger’s grocery store puts its own line of detergent on the shelf next to Tide, the store is promoting its _____ brand.

a) individual

b) private

c) manufacturer

d) family

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

82) Advertising slogans, such as “Just Do It” or “Obey Your Thirst,” are _____ that are given legal protection solely to the brand’s owner.

a) catchphrases

b) registered phrases

c) brand names

d) trademarks

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

83) Dole Food Company uses a(n) _____ brand to market the company’s entire line of food products, including canned fruits, and packaged salads.

a) family

b) private

c) individual

d) distribution

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

84) Procter & Gamble markets laundry soap with the brand names of Tide, Cheer, and Dash. Each brand targets a specific market segment. Procter & Gamble is using _____ branding.

a) individual

b) generic

c) family

d) private

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

85) Which of the following is a benefit of family branding?

a) Each product within the line is given a different name.

b) It builds competition within the company.

c) Each brand markets to a unique target market.

d) When a new product is introduced, consumers and retailers recognize the brand name.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

86) Marco wants a particular brand of golf ball, but his local pro shop does not have it. Instead of buying a substitute, Marco goes home and orders his preferred brand online. Marco is at which stage of brand loyalty?

a) Brand awareness

b) Brand insistence

c) Brand preference

d) Brand recognition

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

87) Stacy stops at the grocery store to purchase detergent. Tide is her favorite brand, but if another detergent is less expensive, she buys it. This is an example of

a) brand recognition.

b) brand preference.

c) brand awareness.

d) brand insistence.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

88) Mercedes-Benz is an example of a company that benefits from the added value of its successful name. This brand _____ can result in financial gain due to large market shares and less price sensitivity.

a) awareness

b) recognition

c) equity

d) association

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

89) Round Pie Inc. (RPI), an international pizza restaurant chain, is the first company that is thought of by most people when the product category of pizzas is mentioned. This instance illustrates RPI’s

a) brand awareness.

b) concept testing.

c) brand insistence.

d) test marketing.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

90) A(n) _____ is the major supplier designated by a business customer to assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer.

a) brand manager

b) analyst

c) category advisor

d) associate

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

91) Which of the following is NOT a benefit of using the Universal Product Code (UPC)?

a) It controls inventory.

b) It speeds up retail transactions.

c) It provides caloric and nutrition information.

d) It evaluates customer purchases.

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

92) Marcello’s job is to make sure that his company’s goods are transferred from the warehouse to retailers in a timely fashion. Marcello’s job involves the _____ function.

a) distribution

b) production

c) finance

d) management

Difficulty: Easy

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

93) A brand gained immense popularity, and its name passed into common usage. Which of the following is true of this brand name?

a) It is no longer an individual brand.

b) It is no longer legally protectable.

c) It has now achieved brand insistence.

d) It is now a trademark.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

94) A company that sells its products in urban areas of different countries decides to market its products in rural regions of these countries as well. Which of the following changes should be made to the packaging of the product?

a) The color scheme should match the country’s flag.

b) The packages should be bigger.

c) The labels should be in the local language.

d) The product information should be omitted.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

95) Ugo Corp. buys, stores, and transfers cosmetic goods produced by Haven Inc. and sells them to consumers or business users. This scenario indicates that Ugo is a

a) direct distribution channel.

b) category advisor.

c) sales office.

d) marketing intermediary.

Difficulty: Easy

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

96) The use of direct distribution channels is most common in the _____ market.

a) business-to-business (B2B)

b) automobile

c) business-to-consumer (B2C)

d) professional services

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

97) Federico purchased a new PC from Dell Computer’s web site. He purchased his product via a(n)

a) direct distribution channel.

b) indirect distribution channel.

c) wholesaler.

d) retailer.

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

98) The Pampered Chef sells gourmet cooking supplies to consumers through the use of cooking parties at the homes of its salespeople. The Pampered Chef is a _____ retailer and uses

a) store; direct selling.

b) store; direct-response retailing.

c) nonstore; direct selling.

d) nonstore; direct-response retailing.

Difficulty: Easy

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

99) _____ stock the products they distribute and fill orders from their inventories.

a) Merchant wholesalers

b) Manufacturers’ reps

c) Sales offices

d) Sales branches

Difficulty: Medium

Learning Objective 1: 12.5

Section Reference 1: Explain the concept of wholesaling.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

100) Crafty Covers Inc. (CCI) sells some of its products like cellphone covers, sling bags, and wallets, by storing, displaying, and selling them in gift shops, supermarkets, and drug stores. This implies that CCI is a

a) limited-function merchant wholesaler.

b) merchant wholesaler.

c) rack jobber.

d) drop shipper.

Difficulty: Hard

Learning Objective 1: 12.5

Section Reference 1: Explain the concept of wholesaling.

Standard 1: AACSB || Analytic

Bloomcode: Application

101) Nino Warehousing Services stores various types of merchandise in its warehouses but requires third party shipping services to collect and deliver shipments to their destinations. What type of intermediary is Nino Warehousing Services?

a) A limited-function merchant wholesaler

b) A full-function merchant wholesaler

c) A sales office

d) A manufacturers’ agent

Difficulty: Medium

Learning Objective 1: 12.5

Section Reference 1: Explain the concept of wholesaling.

Standard 1: AACSB || Analytic

Bloomcode: Application

102) Stores like Sam’s Club and Costco which sell to members only are an example of a

a) warehouse club.

b) discount store.

c) supercenter.

d) factory outlet.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

103) The first step in developing a competitive retailing strategy is to

a) decide on general product categories.

b) decide on the best location.

c) identify a target market.

d) identify the necessary level of customer service.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

104) Vending machines are an example of

a) direct selling.

b) direct-response retailing.

c) automatic merchandising.

d) indirect selling.

Difficulty: Easy

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

105) Peapod is an online grocery service that saves customers’ time by selecting, packing, and delivering groceries to customers. Peapod is utilizing a _____ retail strategy.

a) pricing

b) promotional

c) customer service

d) product

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

106) Which of the following is true of nonstore retailers?

a) They do not provide warranties on their products.

b) They compete on the basis of delivery.

c) They compete on the basis of the quality of their products.

d) They use atmospherics to influence their customers’ perceptions.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

107) If a company’s target market is small and buyers are concentrated in a specific geographical area, which distribution channel would be most effective?

a) Direct channel

b) Use of multiple market intermediaries

c) Long distribution channel

d) Producer to wholesaler to retailer to consumer

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

108) Which of the following statements is true of selective distribution?

a) It requires cooperation by many intermediaries, including wholesalers and retailers, to achieve maximum coverage.

b) It can reduce total marketing costs and establishes strong working relationships within the channel.

c) It can limit market coverage in a specific geographical region.

d) It suits relatively expensive specialty products.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

109) Newspapers and magazines use which approach to distribution intensity?

a) Exclusive distribution

b) Scrambled distribution

c) Intensive distribution

d) Selective distribution

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

110) Intensive distribution is a strategy used by the marketers of which of the following products?

a) Luxury cars

b) Computers

c) Soft drinks

d) Premium watches

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

111) Exclusive distribution is well suited for

a) luxury automobiles.

b) low-priced convenience goods.

c) products sold at superstores.

d) franchised specialty goods.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

112) Which of the following approaches limits market coverage in a specific geographical region?

a) Intensive distribution

b) Selective distribution

c) Exclusive distribution

d) Scrambled distribution

Difficulty: Easy

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

113) Where does the supply chain begin?

a) Creation of the good or service

b) Delivery of the good or service to a marketing intermediary

c) Producer

d) Delivery of raw materials

Difficulty: Easy

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

114) Where does the supply chain end?

a) Producer

b) Wholesaler

c) Customer

d) Physical distribution system

Difficulty: Easy

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

115) Sophia’s job is to coordinate the flow of raw materials from suppliers to her company’s various production facilities. Which of the following best describes what Sophia does?

a) Logistics

b) Inventory management

c) Supply chain

d) Physical distribution

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Application

116) What method of transportation accounts for the majority of finished goods finding their way to consumers?

a) Air freight

b) Water

c) Railroads

d) Trucks

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

117) Which of the following is a result of the shift in product distribution practices from a single channel approach to a multiple channel approach?

a) Products take longer to reach the customer.

b) Retailers store their merchandise in a single location for better accessibility.

c) More intermediaries are required for managing stock.

d) Customers can choose how they receive a product.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

Question type: True/False

118) A product is a bundle of physical, service, and symbolic characteristics.

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

119) One product may be considered a shopping product by one consumer and a convenience product by another consumer.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

120) The appropriate distribution, promotion, and pricing strategies are essentially the same for most business and consumer products.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

121) Paycheck services would be classified as specialty products.

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

122) The three categories of business products are convenience goods, shopping goods, and specialty products.

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

123) Dembe drives 40 minutes on a road to buy Starbucks coffee even though there is a Dunkin Donuts 10 minutes away from his apartment. In this case, Starbucks coffee is considered a specialty product.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

124) A new computer server is classified as an expense item.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

125) In a consumer’s mind, the service provider is the service.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

126) A company’s product line is a group of related products marked by similar physical characteristics.

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

127) A company’s product mix refers to the same thing as a company’s product line.

Difficulty: Easy

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

128) Gillette produces several different types of razors. These different types of razors represent Gillette’s product line.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

129) For Kellogg’s, the company’s product line constitutes the assortment of cereals manufactured under the Kellogg’s name, such as Corn Flakes and Raisin Bran.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

130) Arm & Hammer is expanding its product line when it branches out from baking soda into laundry detergent and toothpaste.

Difficulty: Medium

Learning Objective 1: 12.1

Section Reference 1: Explain product strategy and how to classify goods and services.

Standard 1: AACSB || Analytic

Bloomcode: Application

131) Different products will stay in each stage of the product life-cycle for varying amounts of time.

Difficulty: Easy

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

132) The early stages of a product’s life cycle are generally the most profitable for the company because there is little competition.

Difficulty: Easy

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

133) A manufacturer of a new moisturizing shampoo offers free samples to all potential consumers. The product is generally in the introductory stage.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

134) Companies, during a product’s maturity stage, concentrate on capturing competitors’ customers, often dropping prices to further the appeal.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

135) During the introductory stage, companies aggressively protect their market share and distinguish their products from those of competitors.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

136) During the growth stage, sales climb quickly as new customers join early users who, depending on the cost and type of item, are now repurchasing.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

137) Sales volume fades late in the Growth stage, and some of the weaker competitors leave the market.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

138) Barnes and Noble starts earning 30% more profit a month after their new e-reader hit the shelves. Consumers continuously recommend the new product to friends. The e-reader is in the growth stage.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Application

139) When a product begins to enter the decline stage, promotion activities increase substantially.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

140) Some products can be highly profitable during the later stages of their life cycle because the initial development costs have already been recovered.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

141) Focus groups are sessions in which customers meet with marketers to express their opinions about products.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

142) Some companies will dodge the process of test marketing in order to avoid having their competitors learn of their strategies.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

143) The commercialization stage is also known as the product launch.

Difficulty: Medium

Learning Objective 1: 12.2

Section Reference 1: Briefly describe the four stages of the product life cycle.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

144) Trademark protection extends to design logos, slogans, packaging elements, and product features such as color and shape.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

145) Product managers, unlike category managers, have profit responsibility for their product group.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

146) A manufacturer can always use the same strategies for generating brand names in overseas markets as they would in their native country’s markets.

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

147) A brand manager or product manager plans and implements the balance of promotional, pricing, distribution, and product arrangements.

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

148) Nicoletta is aware of both Coke and Pepsi, but she buys whichever is on sale. Nicoletta is at the stage of brand recognition but not yet at the stage of brand preference.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Application

149) A consumer who is at the stage of brand insistence will go out of their way to buy a product belonging to that brand, whether it be traveling to a store farther away or making an online purchase.

Difficulty: Medium

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

150) Packaging and labeling play a major role in a company’s overall product strategy.

Difficulty: Easy

Learning Objective 1: 12.3

Section Reference 1: Discuss product identification.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

151) Physical distribution is the movement of products from producer to user.

Difficulty: Easy

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

152) The two major components of an organization’s distribution strategy are direct distribution and the use of marketing intermediaries.

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

153) Consumers are examples of marketing intermediaries.

Difficulty: Easy

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

154) An example of marketing intermediaries is wholesalers.

Difficulty: Easy

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

155) Marketing intermediaries often create financial burdens for manufacturers.

Difficulty: Easy

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

156) Retailers such as Home Depot and Auto Zone are examples of marketing intermediaries.

Difficulty: Medium

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Application

157) Sales offices often store all inventories.

Difficulty: Easy

Learning Objective 1: 12.4

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

158) Merchant wholesalers are independently owned and take actual title to the goods they handle.

Difficulty: Medium

Learning Objective 1: 12.5

Section Reference 1: Explain the concept of wholesaling.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

159) Agents and brokers may take possession of the goods they handle, but they never take title.

Difficulty: Medium

Learning Objective 1: 12.5

Section Reference 1: Outline the major components of an effective distribution strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

160) Wholesalers are primarily owned by manufacturers.

Difficulty: Medium

Learning Objective 1: 12.5

Section Reference 1: Explain the concept of wholesaling.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

161) Lands’ End and other catalog retailers are classified as nonstore, direct sellers of goods.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

162) One advantage of Internet retailing is that adding a large product mix to a Web site is less costly than making room on a store’s shelves.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

163) Examples of automatic merchandising are Pampered Chef items that are purchased at house parties.

Difficulty: Easy

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

164) According to the wheel of retailing, new types of retailers enter the market and gain a competitive foothold by offering superior service.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

165) Retailers base their pricing decisions on the costs of purchasing products from other channel members.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

166) A company’s most important consideration in choosing a distribution channel is competition.

Difficulty: Easy

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

167) To reach a target market with a small number of buyers, a direct distribution channel is often the best choice.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

168) By providing convenient locations with free parking, shopping centers have replaced downtown shopping in many urban areas.

Difficulty: Medium

Learning Objective 1: 12.6

Section Reference 1: Describe how to develop a competitive retail strategy.

Standard 1: AACSB || Analytic

Bloomcode: Comprehension

169) Complex, expensive products generally require long distribution channels.

Difficulty: Easy

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

170) Intensive distribution generally suits low-priced convenience goods.

Difficulty: Easy

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

171) A selective distribution contract requires cooperation by many intermediaries, including wholesalers and retailers, to achieve maximum coverage.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

172) Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

173) Physical distribution is a major focus for logistics management.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

174) Transportation by truck is extremely economical.

Difficulty: Easy

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge

175) Transportation by truck is generally less expensive than transportation by water.

Difficulty: Medium

Learning Objective 1: 12.7

Section Reference 1: Identify distribution channel decisions and logistics.

Standard 1: AACSB || Analytic

Bloomcode: Knowledge