Marketing 3.01 & 3.03

Why is the quality level of a product an important product or service management decision?

• It identifies a product's brand.
• It reflects the image of the business
• It protects the consumers.
• It refers to the way the product works.

Which is an unethical situation in product or service management?

• Vincent Electronics discontinues production of a slow-moving solar calculator
• Travis Manufacturing uses recycled materials for its product packaging.
• Donna's Dress Boutique obtains deep discounts from a new clothing designer.
• The Simpson Company embellishes the information that it places on its product labels

Which is one way businesses use computer technology to obtain information to improve their product or service mix?

• By mailing questionnaires to customers
• By tracking visitors to their websites
• By compiling detailed databases
• By preparing interactive software programs

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, which action should the company take?

• Product liability
• Product recall
• Guarantee
• Warranty

A business is behaving unethically if its product's label contains what component?

• Nutritional values
• Recyclable materials
• Mandatory requirements
• Misleading information

Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor’s brand. Which strategy would be mostappropriate 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.

Which technological tools help employees simultaneously access the same information about a business's products?

• Memory card
• Micro-portal
• Intranet
• Generator

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 firstyear, there were 50 reports of infant injuries. Which legal action will Harrison Stroller Company have to face?

• Consumer protection
• Product deletion
• Product liability
• Consumer Product Safety Act

Which is an example of an ethical issue that a product or service manager might face?

• Use of color on the label
• Use of environmentally friendly packaging
• Use of packaging as a means of promotion
• Use of nutrition information on a food label

Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product’s life cycle?

• Because sales decline in the growth stage
• Because marketing strategies are adjusted
• Because competitors have entered the market
• Because production is more efficient