123. T F A product need not be a physical product.
124. T F A service is intangible and is the result of the application of human or mechanical efforts to people or objects.
125. T F Supporting services, such as installation and guarantees, are part of a product.
126. T F The core product element of the total product can include installation, delivery, training, and financing.
127. T F The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product.
128. T F The buyer’s intent can determine whether an item is classified as a consumer or a business product.
129. T F Use of the product is the most important means of distinguishing consumer products from business products.
130. T F The two major product categories are business and institutional.
131. T F A product’s classification can influence its price, distribution, and promotion.
132. T F Bread is usually a convenience product.
133. T F Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.
134. T F Unfinished furniture is considered to be a convenience product because it is relatively inexpensive.
135. T F Per-unit gross margins on convenience products are relatively high.
136. T F The gross margin percentage on convenience goods is usually fairly high because they are low-priced items.
137. T F Buyers want to exert only minimal effort to obtain shopping products.
138. T F Service, repair work, and accessories may be important considerations in a consumer’s decision to purchase a particular shopping product.
139. T F Obtaining a specialty product involves a considerable amount of comparison activity.
140. T F Accessory equipment becomes a part of the finished product.
141. T F Component parts usually need to be processed significantly before they are used in production.
142. T F Process materials are used directly in the production of products.
143. T F “Business Services” is not a category or type of business product.
144. T F A product line is a particular version of a product that can be designated as a distinct offering on the organization’s list of products.
145. T F A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.
146. T F Product mix refers to a related group of products in the product line.
147. T F The depth of a product mix is measured by the average number of product types in a product line.
148. T F The width of a product mix refers to the number of generic products offered by a company.
149. T F A product mix is the composite or total group of products that an organization makes available to customers.
150. T F Procter & Gamble has a wider product mix than does Baskin Robbins.
151. T F The original marketing strategy should not be altered in any way as a product travels through the stages of the product life cycle because consumers can become confused.
152. T F Many products never get beyond the introduction stage.
153. T F Communicating product benefits to consumers is very important in the introduction stage.
154. T F New products seldom generate enough sales to bring immediate profits.
155. T F Price cuts are typical in a product’s growth stage.
156. T F During the growth stage, promotion costs rise as a percentage of total sales.
157. T F Intensive competition causes price increases during the growth stage of the product life cycle.
158. T F Distribution outlets become more difficult to secure during the growth stage of a product’s life cycle because of aggressive competition.
159. T F Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain market share.
160. T F Profits decline in the maturity stage, largely because of increased competition.
161. T F A seller’s profits peak in the maturity stage of a product’s life cycle.
162. T F Sales peak in a product’s maturity stage.
163. T F Many products are in the maturity stage of the product life cycle.
164. T F Changing the product’s quality is a distinct alternative in the maturity stage of the product life cycle.
165. T F The marketing mix should be left alone during the maturity stage of the product life cycle; tampering with it may bring an early death to the product.
166. T F During a product’s maturity stage, all sales promotion efforts are focused on consumers.
167. T F Strategies relating to price become more mixed during a product’s maturity stage.
168. T F A business can justify keeping a product as long as it contributes to profits or enhances the effectiveness of a product mix.
169. T F Sometimes new marketing channels open up in the decline stage.
170. T F Promotion decreases in importance during a product’s decline stage.
171. T F Advertising used in the decline stage may prolong the life of the product.
172. T F Sellers can sometimes prolong a product’s life cycle.
173. T F When an organization introduces a new product, people do not all begin the adoption process at the same time, nor do they move through the process at the same speed.
174. T F Trial is the first stage of the product adoption process.
175. T F A buyer becomes aware of the product during the evaluation phase of the product adoption process.
176. T F In the awareness stage of the product adoption process, the buyer seeks information about the product.
177. T F “The people to check with” are the early adopters.
178. T F The first adopters of a product are the innovators.
179. T F Early adopters are the first group of consumers to adopt a new product.
180. T F Laggards are the last to adopt a new product and usually distrust new products.
181. T F One of the most common reasons new products fail is because of a company’s failure to match product offerings to customer needs.
182. T F Being a product pioneer guarantees a product’s success.
183. T F The success of launching a new product is based primarily on luck.
184. T F When a successful brand such as Frito-Lay develops a new product, it will always succeed.
185. T F Failure of a new product is always absolute.
186. T F If a company repositions a relative product failure, that product might become a successful member of the product line.
187. T F Following a consistent customer-focused plan does not help new products become successful.