question

The marketing mix is the blending of the four strategy elements—product, price, distribution, and promotion—to satisfy the target market.

answer

True

question

Tangible goods and intangible services both intend to satisfy consumer wants and needs, but the marketing efforts supporting them may be vastly different.

answer

True

question

A product is a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs.

answer

True

question

Marketers think in terms of a product as a compilation of package design and labeling, brand name, price, availability, warranty, reputation, image, and customer service activities that add value for the customer.

answer

True

question

Services are intangible products.

answer

True

question

A dinner at an exclusive restaurant is a pure good.

answer

False

question

One way to distinguish goods from services is that services are inseparable from their service providers.

answer

True

question

Providers can maintain inventories of their services.

answer

False

question

Buyers rarely play any role in the creation and distribution of services.

answer

False

question

A dentist provides pure service.

answer

True

question

Internet security software that requires periodic updates and annual product upgrades is considered a pure service on the goods-services continuum.

answer

False

question

Restaurant chains often use the same room decor and dining menu at all their locations in an attempt to standardize the services they offer.

answer

True

question

Career counseling session is an example of a pure service on the goods-services continuum.

answer

True

question

A college education is an example of a pure product on the goods-services continuum.

answer

False

question

The U.S. service sector makes up only one-tenth of the nation's economy.

answer

False

question

Although the United States runs a continuing trade deficit in services, it has maintained a trade surplus in goods since 1992.

answer

False

question

The trend of backshoring, firms returning their offshore work to the U.S., is growing.

answer

True

question

Homeshoring is the practice of hiring workers to do jobs from home.

answer

True

question

Firms that practice homeshoring experience the benefit of reduction in the use of energy and other natural resources thereby decreasing their impact on the environment.

answer

True

question

Homeshoring enables firms to save on office space, furnishings, and supplies.

answer

True

question

Product strategies are essentially the same for consumer and business markets.

answer

False

question

Unsought products are marketed to consumers who may not yet recognize any need for them.

answer

True

question

An Automated Teller Machine (ATM) is an example of a convenience service.

answer

True

question

Milk is an example of a convenience product.

answer

True

question

Staples are convenience goods and services that consumers constantly replenish to maintain a ready inventory.

answer

True

question

A chocolate bar bought while standing in the checkout line is an example of staples.

answer

False

question

As consumers devote little effort to convenience product purchase decisions, marketers must strive to make these exchanges as simple as possible.

answer

True

question

Slotting allowances refer to money paid by producers to retailers to guarantee display of their merchandise.

answer

True

question

According to retailers, the purpose of slotting allowances is to cover their losses if products don't sell.

answer

True

question

In contrast to the purchase of shopping products, consumers buy convenience products only after comparing competing offerings on such characteristics as price, quality, style, and color.

answer

False

question

Shopping products typically cost less than convenience purchases.

answer

False

question

The purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.

answer

True

question

In the case of shopping products, a store's name and reputation have considerable influence on people's buying behavior.

answer

True

question

As consumers are willing to exert considerable effort to obtain specialty products, producers can promote them through relatively few retail locations.

answer

True

question

Marketers classify goods and services by considering the purchase patterns of the majority of buyers.

answer

True

question

The seller's image is very important for those marketers who sell convenience products.

answer

False

question

Convenience of location is unimportant to a consumer who wants to buy a specialty product.

answer

True

question

The classification system for business products emphasizes customer buying behavior rather than product uses.

answer

False

question

Installations are major capital investments in the B2B markets and they are often designed specifically for the purchasers.

answer

True

question

Installations' marketers typically focus their promotional efforts on employing highly trained sales representatives, often with technical backgrounds.

answer

True

question

If advertisements are used for installations, they emphasize the company's reputation and direct potential buyers to contact local sales representatives.

answer

True

question

Marketing accessory equipments requires continuous representation and dealing with the widespread geographic dispersion of purchasers.

answer

True

question

Advertising is an important component in the marketing mix for accessory equipments.

answer

True

question

Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.

answer

True

question

Price is generally the deciding factor in purchasing raw materials since the costs vary widely across markets.

answer

False

question

Supplies are also called MRO items.

answer

True

question

Extensive planning time is required for the purchase of supplies.

answer

False

question

Managers are responsible for communicating the goals of total quality management to all staff members.

answer

True

question

Managers are responsible for communicating the goals of total quality management to all staff members.

answer

True

question

Benchmarking is the method of measuring quality by comparing performance against industry leaders.

answer

True

question

Internal analysis involves gathering information about the benchmark partner to find out why the partner is perceived as the industry's best.

answer

False

question

A service encounter is a point at which a consumer interacts with a service provider.

answer

True

question

Service quality refers to the expected and perceived quality of a service offering.

answer

True

question

The motivations for marketing complete product lines include the desire to grow, enhancing the company's position in the market, optimal use of company resources, and exploiting the product lifecycle.

answer

True

question

A product line is a series of related products offered by one company.

answer

True

question

A company limits its growth potential when it concentrates on a single product, even though the company may have started that way.

answer

True

question

SUVs produced by different automobile companies constitute a single product line.

answer

False

question

The assortment of product lines and individual product offerings that a company sells is known as its product cluster.

answer

False

question

The right blend of product lines and individual products allows a firm to maximize sales opportunities within the limitations of its resources.

answer

True

question

Marketers typically measure product mixes according to width, length, and depth.

answer

True

question

The width of a product mix refers to the number of product lines the firm offers.

answer

True

question

The length of a product mix refers to the number of different products a firm sells.

answer

True

question

The depth of product mix refers to the variations in each product the firm markets in its mix.

answer

True

question

Procter & Gamble manufactures laundry detergents under the brand names of Tide, Cheer, and Gain. These brands represent the width of the product mix that Procter & Gamble offers.

answer

False

question

Product line extension refers to the development of items that would expand the width of the product mix a company has to offer.

answer

False

question

Product line extension refers to the development of items that would expand the width of the product mix a company has to offer.

answer

True

question

The product lifecycle concept applies to individual brands of a product.

answer

False

question

During the introductory stage of the product lifecycle, the public becomes acquainted with the item's merits and begins to accept it.

answer

True

question

During the growth stage of the product lifecycle, available supplies exceed industry demand for the first time.

answer

False

question

Sales of a product category continue to grow during the early part of the maturity stage but—eventually reach a plateau as the backlog of potential customers dwindles.

answer

True

question

In the maturity stage of a product lifecycle, differences between competing products diminish as competitors discover the product and promotional characteristics most desired by customers.

answer

True

question

Fad cycles are examples of traditional product lifecycles.

answer

False

question

In the maturity stage, heavy promotional outlays emphasize any differences still separating competing products, and brand competition intensifies.

answer

True

question

Most fads experience short-lived popularity and then quickly fade, although some maintain residual markets among certain segments.

answer

True

question

Product lifecycles can stretch indefinitely as a result of decisions designed to increase the frequency of use by current customers; increase the number of users for the product or change package sizes, labels, or product quality.

answer

True

question

During the maturity stage of the product lifecycle, the industry sales curve for a product reaches a minimum point as competitors exhaust the supply of potential customers.

answer

False

question

When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use as a metal cleaner, the manufacturer is attempting to extend the product's lifecycle by changing its package.

answer

False

question

The decision about whether to delete products from the product line is usually faced during the late growth and early maturity phases of the product lifecycle.

answer

False

question

The products whose lifecycles can be extended or stretched indefinitely are referred to as orphan brands.

answer

False

MKTG311_CH12_T/F – Flashcards

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