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Product/Service Management
Product Liability/Product Mix
Positioning/Brand Loyalty
Random
Pricing
100
Which activity is addressed in the product/service management function? 1-Setting discounts to clear products from inventory 2-Determining where products will be offered for sale 3-Focusing promotional activities on a new-product release 4-Eliminating products that are slow sellers
4-Eliminating products that are slow sellers
100
Lakeview Manufacturing produces canned tuna fish for consumers and pets. After the company decided to expand its market to three additional states, it discovered that the pet products were labeled incorrectly. They had been packaged and distributed as consumer products. To correct this problem, what action should the company take? 1-Product liability 2-Product recall 3-Guarantee 4-Warranty
2-Product recall
100
A drawback of brands as compared to unbranded products is that they usually 1-differentiate products. 2-must be sold at higher prices. 3-create brand loyalty 4-require trademark registration
2-must be sold at higher prices.
100
How do companies make brand promises to their customers? 1-They provide customers with a sworn statement. 2-They meet or exceed customer expectations on a consistent basis. 3-Salespeople verbally make brand promises to each customer. 4-They fulfill special requests for customers.
2-They meet or exceed customer expectations on a consistent basis.
100
What is an example of an unethical pricing practice? 1-A company prices its products low in an attempt to drive its competitors out of business. 2-A business increases its prices when the cost of the materials to make the products increases. 3-A firm sets a business objective to increase its profit margins over the next five years. 4-A business prices a new product line to reflect high quality and status.
1-A company prices its products low in an attempt to drive its competitors out of business.
200
Why might profits sometimes decline for the company that first introducted the product during the growth stage of a product's life cycle? 1-Because sales decline in the growth stage 2-Because marketing strategies are adjusted 3-Because competitors have entered the market 4-Because production is more efficient
3-Because competitors have entered the market
200
Harrison Stroller Company manufactures baby strollers. The business launched a new stroller line in hopes of increasing its market share. The new model featured neon, plastic, musical toys on the front bar of the stroller. By the middle of the first year, there were 50 reports of infant injuries. What legal action will Harrison Stroller Company have to face? 1-Consumer protection 2-Product deletion 3-Product liability 4-Consumer Product Safety Act
3-Product liability
200
In what stage of brand loyalty do people become aware of the brand? 1-Recognition 2-Satisfaction 3-Insistence 4-Preference
1-Recognition
200
Why do companies use brands for their products? 1-To differentiate their products 2-To charge higher prices 3-To encourage materialism 4-To demonstrate creativity
1-To differentiate their products
200
What is the advantage to a business of using bar-code pricing? 1-Easier for customers to read 2-Reduces required business security 3-Easier to change prices 4-Reduces number of employees needed for sales
3-Easier to change prices
300
Which of the following is an unethical situation in product/service management? 1-Vincent Electronics discontinues production of a slow-moving solar calculator 2-Travis Manufacturing uses recycled materials for its product packaging. 3-Donna's Dress Boutique obtains deep discounts from a new clothing designer. 4-The Simpson Company embellishes the information that it places on its product labels
4-The Simpson Company embellishes the information that it places on its product labels
300
Which of the following is a reason that a business would make changes to its products? 1-To keep up with changing consumer preferences 2-To spread risk over a wider area 3-To predict the success of the changed product 4-To make room for other products
1-To keep up with changing consumer preferences
300
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? 1-Price and quality 2-Features and benefits 3-Unique characteristics 4-Relation to other products in a line
3-Unique characteristics
300
What costs do businesses usually include in the price of their products? 1-Regulations 2-Inflation 3-Transportation 4-Orientation
3-Transportation
300
Companies A, B, and C sell similar products. Together, they recently decided to sell their products for the same price. In what unethical activity are the businesses engaging? 1-Bait-and-switch 2-Price fixing 3-Loss-leader pricing 4-Gray markets
2-Price fixing
400
Why should a business continue to monitor an established product? 1-To determine the acceptance of a product by a limited market 2-To make sure that a marketing plan is firmly in place 3-To make changes in order to extend a product's life cycle 4-To evaluate how a product might fit the firm's product mix
3-To make changes in order to extend a product's life cycle
400
Why would a business use a broad product mix? 1-To assure that the product lines are related 2-To promote one-stop shopping 3-To decrease legal liabilities 4-To relate the products to the target market
2-To promote one-stop shopping
400
Company XYZ sells condensed soups and promotes them by saying, "Great taste, great price." Company XYZ is positioning its product according to what strategy? 1-Relationship to other products 2-Features and benefits 3-Unique characteristics 4-Price and quality
4-Price and quality
400
What pricing tactic might be considered questionable by some businesses? 1-Matching the prices of a competitor 2-Developing a complex pricing structure 3-Marking up prices to earn a profit 4-Providing a reference price
2-Developing a complex pricing structure
400
Why do some new companies set their selling prices as low as they can? 1-To eliminate all possible competition 2-To get market share as fast as possible 3-To earn a high return on investment 4-To quickly make a large profit
2-To get market share as fast as possible
500
A business is behaving unethically if its product's label contains 1-nutritional values. 2-recyclable materials. 3-mandatory requirements. 4-misleading information.
4-misleading information.
500
Why does a company need to know what stage of the product life cycle its products are in? 1-To prevent imitators from entering the market 2-To find new uses for the product 3-To predict the length of the life cycle 4-To adapt its marketing strategies
4-To adapt its marketing strategies
500
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? 1-Price and quality 2-Features and benefits 3-Unique characteristics 4-Relationship to other products
2-Features and benefits
500
Why must all businesses incorporate their values into every aspect of their operations? 1-This will reinforce their promises to customers and build the brands. 2-It is less expensive to operate if everyone buys into the same thing. 3-It gives businesses something interesting to advertise. 4-There will be less employee resistance if there is a standard philosophy.
1-This will reinforce their promises to customers and build the brands.
500
What would be the most appropriate pricing strategy for a business in a small town where unemployment has skyrocketed and the economy is in a downturn? 1-Below-cost pricing 2-High-level pricing 3-Odd-cents pricing 4-Flexible pricing
4-Flexible pricing