Chapter 11

Product and Service Strategies

MATCHING
Match each item with the correct statement below.
a
.
marketing mix h
.
product mix
b
.
benchmarking i. unsought product
c
.
product j. maturity stage
d
.
convenience product k
.
raw materials
e
.
shopping product l. total quality management
f
.
specialty product m
.
product lifecycle
g
.
product line n
.
installations
1. The _____ is the blending of the four strategy elements to fit the needs and preferences of a target market.
2. bundle of physical! service! and symbolic attributes is a"n# _____.
$. product that is purchased frequently! immediately! and with minimal effort is classified as a"n# _____.
%. "n# _____ is marketed to consumers who may not yet recogni&e the need for it.
'. product that a consumer purchases after comparing competing offerings is called a"n# _____.
(. "n# _____ offers unique characteristics that cause buyers to pri&e those particular brands.
). The specialty products of the business market are called _____.
*. +arm products and mineral products are examples of _____.
,. _____ is a continuous effort to improve products and work processes.
1-. +irms often rely on _____ to set performance standards and achieve superior performance resulting in a
competitive advantage in the marketplace.
11. series of related products offered by one company is a"n# _____.
12. ssortment of product offerings sold by a firm is called the _____.
1$. The four stages that a product will progress through is called the _____.
1%. .ales of a product category continue to grow during the early part of the _____! but eventually reach a
plateau as the backlog of potential customers dwindles.
MULTIPLE CHOICE
1. /istinguishing services from goods! all of the following statements are correct except0
a
.
services are intangible.
b
.
services are inseparable from service providers.
c
.
services are easy to standardi&e.
d
.
services are perishable.
2. +inancial .ervices 1nc. had call centers in 2alaysia where employees worked in shifts to cater to merican
customers at all times. 3owever! after receiving persistent complaints about unsatisfactory service quality
and increasing inefficiency! the organi&ation decided to bring the call centers back to the 4... This is an
example of0
a
.
outsourcing.
b
.
offshoring.
c
.
backshoring.
d
.
homeshoring.
$. consumer expects to purchase convenience products0
a
.
without having full knowledge about what is sought.
b
.
immediately and with minimal effort.
c
.
after visiting numerous stores and comparing prices.
d
.
by traveling any distance required to get what is wanted.
%. company manufacturing hair care products introduced a shampoo with keratin to enhance hair quality and
reduce hair breakage and hair loss. To ensure the right spot on the supermarket shelves! the company paid
retailers a substantial amount of money. The money paid is called0
a
.
push money.
b
.
a rebate.
c
.
a premium.
d
.
a slotting allowance.
'. .upermarkets usually display items such as candy! gum! and maga&ines near the checkout counter because
they are0
a
.
purchased on impulse.
b
.
easier to replenish.
c
.
subject to shoplifting.
d
.
purchased infrequently.
(. 5onvenience products that customers constantly replenish to maintain a ready inventory may be categori&ed
as0
a
.
staples.
b
.
impulse items.
c
.
emergency items.
d
.
specialty items.
). 6hich of the following products relies least on personal selling7
a
.
.pecialty products
b
.
.hopping products
c
.
4nsought products
d
.
5onvenience products
*. 6hile in 8est 8uy! a customer takes a great deal of time comparing the quality! features! and prices of a
number of refrigerators. 6hat type of products is this customer examining7
a
.
9uxury products
b
.
5onvenience products
c
.
3omogeneous shopping products
d 3eterogeneous specialty products
.
,. 5onsumers who are well aware of the brands they prefer and are willing to make a special effort to obtain
them are primarily interested in _____ products.
a
.
impulse
b
.
convenience
c
.
shopping
d
.
specialty
1-. 8usiness products would ordinarily include all of the following except0
a
.
installations.
b
.
accessory equipment.
c
.
specialty products.
d
.
component parts.
11. 6hich of the following business products would be classified as an installation7
a
.
:et engines
b
.
;ffice furniture
c
.
<hotocopier
d
.
=egional shopping center
12. <roducts that are considered capital investments but whose useful lives are generally much shorter than
those of installations are known as0
a
.
accessory equipment.
b
.
operating supplies.
c
.
component parts.
d
.
business services.
1$. .park plugs! batteries! and tires that are included with the purchase of a car are examples of0
a
.
installations.
b
.
accessory equipment.
c
.
component parts and materials.
d
.
supplies.
1%. 1n the business market! fax paper! pencils! and office stationery are examples of0
a
.
maintenance items.
b
.
repair items.
c
.
operating supplies.
d
.
accessory equipment.
1'. 8enchmarking seeks to achieve superior performance that results in a competitive advantage in the
marketplace by all of the following except0
a
.
continuously repeating the process to search for and identify areas that need
improvement.
b
.
comparing internal processes with similar processes of industry leaders.
c
.
identifying processes that need improvement.
d
.
increasing production at a lower cost>per>unit.
1(. =ussell works for a cell phone provider. 6hen dealing with customers he always conveys confidence that he
can provide the exact assistance they need. 6hich service quality variable is =ussell exhibiting7
a
.
ssurance
b
.
=esponsiveness
c
.
?mpathy
d
.
=eliability
1). /omino@s has been very consistent in terms of their offerings across their outlets as well as their 2% hours
home service which is Awithin $- minutes or free.B 8y offering such a dependable service! they have been
exhibiting0
a
.
reliability.
b
.
responsiveness.
c
.
empathy.
d
.
tangibles.
1*. fter careful research! a well known company producing personal care products such as soaps and
shampoos! decides to produce and market baby soaps. This implies0
a
.
an increase in product mix depth for this company.
b
.
an increase in product mix width for this company.
c
.
an increase in the product lifecycle.
d
.
an increase in the cobranding capabilities of this company.
1,. The number of product lines a firm offers is referred to as0
a
.
depth.
b
.
width.
c
.
clusters.
d
.
length.
2-. dding individual offerings that appeal to different market segments is known as a product0
a
.
mix.
b
.
line.
c
.
line extension.
d
.
line depth.
21. firmCs marketing strategy should emphasi&e stimulating initial demand during the _____ stage of the
product lifecycle.
a
.
introduction
b
.
stabili&ation
c
.
growth
d
.
maturity
22. <otential customers are unaware of a product in its introductory stage! therefore promotion in this stage
concentrates on0
a
.
informing the market about the item and explaining its features! uses! and benefits.
b
.
reducing the si&e of the available market through selective advertising.
c
.
test marketing.
d
.
communicating new uses for the product.
2$. 6idgets were introduced a few years ago. The number of companies making widgets has increased recently!
drawn by high profits. t the same time! differentiated products for different market segments have begun
to emerge. 6idgets appear to be in the _____ stage of the product lifecycle.
a
.
growth
b
.
introductory
c
.
maturity
d
.
decline
2%. 1n the _____ stage! market supplies exceed the demand! as a result of which a firm can increase its sales only
at the expense of its competitors.
a
.
introductory
b
.
growth
c
.
maturity
d
.
decline
2'. characteristic of the decline stage of the product lifecycle is that0
a
.
profits decline and may even be negative.
b
.
distribution is increased.
c
.
available products exceed demand for the first time.
d
.
only mass advertising can improve sales.
2(. <roducts with abbreviated lifecycles are called0
a
.
trends.
b
.
perishables.
c
.
fads.
d
.
staples.
2). dvertising that warns consumers about the dangers of overexposure to the sun! even during winter months!
is an attempt by marketers of sunscreen to0
a
.
raise awareness of skin cancer.
b
.
find new uses for the product.
c
.
change product quality.
d
.
increase the frequency of use.