Chapter 11 Marketing MULTIPLE CHOICE 1.

Distinguishing services from goods, all of the following statements are correct except: a. services are intangible. b. services are inseparable from service providers. c. services are easy to standardize. d. services are perishable. 2. Financial Services Inc. had call centers in Malaysia where employees worked in shifts to cater to American customers at all times. However, after receiving persistent complaints about unsatisfactory service quality and increasing inefficiency, the organization decided to bring the call centers back to the U.S. This is an example of: a. outsourcing. b. offshoring. c. backshoring. d. homeshoring. 3. A consumer expects to purchase convenience products: 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. 4. A 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 called: a. push money. b. a rebate. c. a premium. d. a slotting allowance. 5. Supermarkets usually display items such as candy, gum, and magazines near the checkout counter because they are: a. purchased on impulse. b. easier to replenish. c. subject to shoplifting. d. purchased infrequently. 6. Convenience products that customers constantly replenish to maintain a ready inventory may be categorized as: a. staples. b. impulse items. c. emergency items. d. specialty items. 7. Which of the following products relies least on personal selling? a. Specialty products b. Shopping products c. Unsought products d. Convenience products

8. While in Best Buy, a customer takes a great deal of time comparing the quality, features, and prices of a number of refrigerators. What type of products is this customer examining? a. Luxury products b. Convenience products c. Homogeneous shopping products d. Heterogeneous specialty products 9. Consumers 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 10. Business products would ordinarily include all of the following except: a. installations. b. accessory equipment. c. specialty products. d. component parts. 11. Which of the following business products would be classified as an installation? a. Jet engines b. Office furniture c. Photocopier d. Regional shopping center 12. Products that are considered capital investments but whose useful lives are generally much shorter than those of installations are known as: a. accessory equipment. b. operating supplies. c. component parts. d. business services. 13. Spark plugs, batteries, and tires that are included with the purchase of a car are examples of: a. installations. b. accessory equipment. c. component parts and materials. d. supplies. 14. In the business market, fax paper, pencils, and office stationery are examples of: a. maintenance items. b. repair items. c. operating supplies. d. accessory equipment. 15. Benchmarking seeks to achieve superior performance that results in a competitive advantage in the marketplace by all of the following except: 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. 16. Russell works for a cell phone provider. When dealing with customers he always conveys confidence that he can provide the exact assistance they need. Which service quality variable is Russell exhibiting?

a. b. c. d.

Assurance Responsiveness Empathy Reliability

17. Dominos has been very consistent in terms of their offerings across their outlets as well as their 24 hours home service which is within 30 minutes or free. By offering such a dependable service, they have been exhibiting: a. reliability. b. responsiveness. c. empathy. d. tangibles. 18. After careful research, a well known company producing personal care products such as soaps and shampoos, decides to produce and market baby soaps. This implies: 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. 19. The number of product lines a firm offers is referred to as: a. depth. b. width. c. clusters. d. length. 20. Adding individual offerings that appeal to different market segments is known as a product: a. mix. b. line. c. line extension. d. line depth. 21. A firm's marketing strategy should emphasize stimulating initial demand during the _____ stage of the product lifecycle. a. introduction b. stabilization c. growth d. maturity 22. Potential customers are unaware of a product in its introductory stage, therefore promotion in this stage concentrates on: a. informing the market about the item and explaining its features, uses, and benefits. b. reducing the size of the available market through selective advertising. c. test marketing. d. communicating new uses for the product. 23. Widgets were introduced a few years ago. The number of companies making widgets has increased recently, drawn by high profits. At the same time, differentiated products for different market segments have begun to emerge. Widgets appear to be in the _____ stage of the product lifecycle. a. growth b. introductory c. maturity d. decline

24. In 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 25. A characteristic of the decline stage of the product lifecycle is that: 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. 26. Products with abbreviated lifecycles are called: a. trends. b. perishables. c. fads. d. staples. 27. Advertising that warns consumers about the dangers of overexposure to the sun, even during winter months, is an attempt by marketers of sunscreen to: a. raise awareness of skin cancer. b. find new uses for the product. c. change product quality. d. increase the frequency of use.