Marketing: Product Service Management

1. 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?

• Take the product off the market

• Do nothing; fluctuations in sales are common

• Modify the product to renew customer interest

• Triple the advertising budget for the product

A business that offers a great many items in a product line has a __________ product mix.

• shallow

• broad

• deep

• narrow

A salon recently added nail services to its product mix. This strategy is called

• contraction

• expansion

• trading up.

• alteration

Which of the following is a reason for a business to have a narrow product mix:

• To allow the company to specialize

• To use a wide range of prices

• To allow the company to meet the needs of a variety of consumers

• To reduce the costs of the goods the company purchases for resale

A product-mix strategy in which a business removes, or deletes, product items or lines from its product mix is

• trading down.

• trading up

• alteration

• contraction

Which of the following is not a type of convenience goods:

• Impulse items

• Emergency Items

• Consumable supplies

• Staple items

Which of the following is a way a business can set up a product line:

• Width

• Depth

• Trading up

• Customer group

Which of the following is a disadvantage associated with the addition of a higher priced product or line to a company’s product mix:

• It increases market risk.

• It can damage customer goodwill.

• Success is difficult to predict.

• Sales of established products may decline.

What is a technologically advanced method that allows businesses to produce products that are specialized for a very few customers?

• Intermittent conversion

• Automatic production

• Computerized robotics

• Mass customization

Comparing of different brands will take place when customers are purchasing

• Shopping goods

• Unsought goods

• Specialty goods

• Convenience goods