Marketing PSM – Flashcards
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Teri purchased a new car and expects for the entertainment system to work smoothly. Which warranty is Teri expecting to be fulfilled?
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Implied
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What is a purpose of warranties and guarantees?
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To protect the producer and the seller
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Any business that transports goods across state lines must comply with standards set by
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government agencies
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A customer buys a CD player and receives a printed warranty card stating the action the company will take if the CD player does not work properly. This is an example of a(n) ________________ warranty.
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Express
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Why do many professional organizations develop standards for their members to follow?
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To promote product safety
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Which is an example of an implied warranty?
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A customer buys a toaster and assumes it will toast bread
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When products are graded by nongovernmental agencies, the grading is
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voluntary
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How does the use of grades and standards affect the buying and selling process?
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It enables customers to buy without having to inspect each product.
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What is an example of an employee reinforcing a firm's image through his/her job performance?
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Jack politely asks if his customer would like a beverage while s/he waits for car service.
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One way a company can reinforce its image is by
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training its employees.
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John communicates through all advertisements that his employees go through extensive training. What is John doing?
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Making a brand promise
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When a business publicly pledges to provide all of its customers with quick, courteous service, what is it doing?
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Making a brand promise
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One way of reinforcing the company's image through employee performance is by making sure employees have
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thorough knowledge of the products
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Which of the following is a policy that the WNJ Company might implement to reinforce its image as an efficient and responsive business?
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Requiring employees to respond to customer inquiries within 24 hours
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A business's brand promise is what the business intends to
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provide the customer
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What will probably happen to a business if it continuously fails to deliver on its brand promise?
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Lose credibility
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What is an example of an ethical issue that a product/service manager might face?
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Use of environmentally friendly packaging
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Why should a business continue to monitor an established product?
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To make changes in order to extend a product's life cycle
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Which activity is addressed in the product/service management function?
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Eliminating products that are slow sellers
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Why might profits sometimes decline for the company that first introducted the product during the growth stage of a product's life cycle?
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Because competitors have entered the market
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Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor's brand. What strategy would be most appropriate to use in this situation?
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Modify the product to renew customer interest
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Why does a company need to know what stage of the product life cycle its products are in?
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To adapt its marketing strategies
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What is a technologically advanced method that allows businesses to produce products that are specialized for a very few customers?
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Mass customization
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What is one way businesses use computer technology to obtain information to improve their product/service mix?
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Tracking visitors to their web sites
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Why is the quality level of a product an important product/service management decision?
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It reflects the image of the business.
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Which of the following is a way that a business can extend the life cycle of an established product?
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By finding new uses for the product
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Which of the following is an unethical situation in product/service management?
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The Simpson Company embellishes the information that it places on its product labels
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A business is behaving unethically if its product's label contains
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misleading information.
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Which of the following technological tools helps a business's employees simultaneously access the same information about the business's products?
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Intranet
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When a company uses its product wrapping to promote the preservation of an endangered animal species, i its engaging in an ethical practice called
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cause packaging
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Why would a business use a broad product mix?
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To promote one-stop shopping
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Which of the following is a reason that a business would make changes to its products?
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To keep up with changing consumer preferences
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Company XYZ sells condensed soups and promotes them by saying, "Great taste, great price." Company XYZ is positioning its product according to what strategy?
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Price and quality
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In what stage of brand loyalty do people become aware of the brand?
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Recognition
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Why do companies use brands for their products?
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To differentiate their products
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A business that says it tries harder because its product is not number one, is using product positioning to
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compete
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Brand or trade names are used primarily to identify a
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product
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A company advertises that its products are durable lightweight, and come in a variety of colors. What strategy is the company using to position its product?
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Features and benefits
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A company that makes ink pens claims no other pen on the market uses a type of ink that changes color when exposed to light. The company is positioning its product according to what strategy?
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Unique characteristics
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A drawback of brands as compared to unbranded products is that they usually
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must be sold at higher prices
