Sample questions for Chapters 7 and 8Product

1) ________ refer to a form of product that consists of activities, benefits, or satisfactions

offered for sale that are essentially intangible.
A) Co-brands
B) Line extensions
C) Services
D) Pure products
E) Horizontal extensions


2) Which of the following is a pure tangible good?
A) shampoo
B) a spa treatment
C) financial advice
D) a meal at a restaurant
E) a medical check-up


3) Which of the following would be considered part of an augmented product rather than that of
an actual product or core customer value?
A) product features
B) warranty
C) brand name
D) design
E) packaging


4) Which statement about convenience products is most likely true?
A) They are distributed exclusively in only one or a few outlets per market area.
B) They are products that consumers rarely consider buying.
C) Luxury cars and designer clothes are examples of convenience products.
D) Consumers need to make special purchasing efforts to buy such products.
E) They are bought by consumers frequently and with minimal comparison.



5) Which of the following is an example of a convenience product?
A) candy
B) furniture
C) life insurance
D) automobile
E) refrigerator





6) ________ products are less frequently purchased consumer products and services that
customers compare carefully on suitability, quality, price, and style.
A) Convenience
B) Capital
C) Unsought
D) Shopping
E) Secondary


7) Which of the following is an example of a shopping product?
A) toothpaste
B) fast food
C) laundry detergent
D) television
E) candy


8) ________ products are consumer products and services with unique characteristics or brand
identifications for which a significant group of buyers is willing to make more effort than usual
to purchase.
A) Unsought
B) Obsolete
C) Intangible
D) Convenience
E) Specialty


9) Expanding a product line by adding more items within the present range of the line is known
as product line ________.
A) stretching
B) widening
C) strengthening
D) mixing
E) filling


10) Lengthening a product line beyond its current range is referred to as product line ________.
A) filling
B) strengthening
C) mixing
D) stretching
E) widening

11) Product mix width refers to the ________.
A) number of versions offered for each product in the line
B) ways in which the various product lines are related
C) number of different product lines the company carries
D) total number of items a company carries within its product lines
E) total market share captured by the entire product line


12) Brand ________ is the differential effect that knowing the brand name has on customer
response to the product and its marketing.
A) capital
B) loyalty
C) wealth
D) esteem
E) equity


13) Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics
it uses. The company has positioned its brand based on ________.
A) product benefits
B) product attributes
C) beliefs and values
D) market share
E) brand loyalty

14) ________ involves using an existing brand name for a new product category.
A) Line extension
B) Co-branding
C) New branding
D) Brand extension
E) Multibranding

15) Store brands are also known as ________ brands.
A) national
B) manufacturer's
C) private
D) extended
E) licensed




16) A company's external sources of new product ideas include its ________.
A) managers
B) salespeople
C) engineers
D) manufacturing staff
E) suppliers

17) Which statement is most likely true about idea generation in the new product development
process?
A) Idea generation is most effective when it occurs after idea screening.
B) Most companies set a limit for the number of ideas generated to simplify the process.
C) Intrapreneurial programs enable customers to contribute to the idea generation process.
D) Idea generation is usually followed by procedures that reduce the total number of ideas.
E) A company can either develop ideas through internal or external sources but not through both.

18) The stage in which a product concept is presented to groups of target consumers physically
or symbolically is referred to as ________.
A) concept testing
B) concept development
C) test marketing
D) marketing strategy development
E) crowdsourcing

19) In a sequential new product development process, concept testing is most likely to be
followed by ________.
A) idea screening
B) marketing strategy development
C) business analysis
D) product development
E) test marketing

20) In a sequential new product development process, which of the following is true of the
product development step?
A) Product development is usually followed by a business analysis of the product.
B) Product development involves introducing a product into realistic market settings.
C) Product development avoids testing products on actual customers due to liability concerns.
D) Product development is usually followed by test marketing.
E) Product development helps top management review profit projections


21) In which of the following cases is little or no test marketing most likely recommended for a
new product?
A) when the product requires a major investment
B) when management is unsure of the projected demand for the product
C) when the risks associated with introducing the product are high
D) when management is unsure of the marketing program for the product
E) when the costs of developing and introducing the product are low

22) Which of the following statements is most likely true about the product life cycle?
A) Throughout the product introduction stage, sales are zero.
B) The growth stage is the longest stage of the product life cycle.
C) Profits are nonexistent in the growth stage.
D) Growth is a period of rapid market acceptance and increasing profits.
E) Maturity is the period when sales fall off but profits continue to rise.

23) Which of the following is true of the product life cycle (PLC)?
A) All products generally go through all five stages of the PLC.
B) All products pass through the stages of PLC in the same order.
C) It is generally difficult to forecast the sales level at each PLC stage.
D) The PLC concept can be applied to styles but not to fashions and fads.
E) Product forms have longer life cycles than product classes.

24) Which of the following would most likely have the longest duration in a market and be
characterized by several periods of renewed interest?
A) a style
B) a fashion
C) a fad
D) a trend
E) a drift

25) When a product hits the ________ stage, profits level off or decline because of increased
marketing outlays to defend the product against competition.
A) production
B) decline
C) maturity
D) test marketing
E) conception