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| 1 | |
Which of the following is the best example of a product line? |
| | A) | General Motors offers passenger cars, small trucks, and tractor trailers. |
| | B) | Sony offers DVD players, compact disk players, and video game consoles |
| | C) | Kellogg offers Special K, Raisin Bran, Corn Flakes, and a variety of other cold ready-to-eat cereals. |
| | D) | Hewlett Packard offers scanners, printers and personal computers. |
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| 2 | |
__________ are products that the consumer buys only after comparing quality and price from a variety of sellers. |
| | A) | Shopping goods |
| | B) | Specialty goods |
| | C) | Convenience goods |
| | D) | Unsought goods |
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| 3 | |
June Daye lives in the southern part of Alabama where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She had to look in the Yellow Pages to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represent an example of a(n): |
| | A) | unsought service. |
| | B) | industrial service . |
| | C) | specialty service. |
| | D) | convenience service. |
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| 4 | |
Which of the following statements about packaging is the most accurate? |
| | A) | Changes in packaging can actually change the product itself and open up large new markets. |
| | B) | Packaging is usually the simplest and least critical element of a firm's promotional strategy. |
| | C) | For most products, packaging performs only one basic function, to protect the goods inside during shipping, handling and storage. However, this is a critical function, so packaging must be given a high priority. |
| | D) | Packaging is crucial in the marketing of goods, but much less important in the marketing of services. |
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| 5 | |
The brand names that are used by producers that distribute products nationally are called: |
| | A) | manufacturers' brand names. |
| | B) | product category brands. |
| | C) | generic brand names. |
| | D) | universal brand names. |
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| 6 | |
___________ is the stage of new product development that involves promoting the product to distributors and developing advertising and sales campaigns to generate and maintain consumer interest in the product. |
| | A) | Commercialization |
| | B) | Brand identification |
| | C) | Product differentiation |
| | D) | Merchandising |
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| 7 | |
The stages of the product life cycle include: |
| | A) | production, inventory, exchange, usage, and disposal. |
| | B) | conception, testing, production, commercialization, and obsolescence. |
| | C) | introduction, growth, maturity, and decline. |
| | D) | opportunity recognition, product proposal, production commitment, market acceptance, market preference, market decay, and obsolescence. |
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| 8 | |
The number of units that must be sold for the total revenue to equal the total cost is called the: |
| | A) | adaptive price. |
| | B) | equilibrium price. |
| | C) | contribution margin. |
| | D) | break-even point. |
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| 9 | |
A skimming pricing strategy is designed to: |
| | A) | allow lower income households the ability to purchase a particular good or service. |
| | B) | drive competitors out of business in order to achieve a monopoly position in the market. |
| | C) | create an exclusive, global image for a company's products. |
| | D) | price the product high in order to earn the highest possible profit while there is little competition. |
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| 10 | |
Which of the following statements about nonprice competition is most accurate? |
| | A) | While still important, nonprice competition is becoming less critical to many firms as the Internet grows. |
| | B) | Marketers often rely on nonprice differences in their competitive strategy to enhance a relatively homogeneous product. |
| | C) | Nonprice competition is much more important to large firms than it is to small firms. |
| | D) | Just as microeconomic theory suggests, in the real world firms have always found that nonprice competition must play a secondary role that supplements the more important competition based on price. |
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