1. Product/Service Management

Which task is part of product/service management when responding to market opportunities?

• Stopping all updates to product lines

• Obtaining and developing the product mix

• Setting only the highest possible prices

• Ignoring customer feedback on features

Fill in the blank: Managing all phases of a product’s (a)   involves planning, directing, and controlling from beginning to end.

A candy brand notices sales of one flavor are declining while a new health trend grows. What is the best management action?

• Remove all flavors from every store immediately

• Raise prices to increase revenue per unit

• Keep the same mix without any changes

• Generate ideas for new flavors that fit the trend

Match each action to its role in product/service management.

• Expanding the product mix

• Improving or updating existing products

• Maintaining relevance in the life cycle

• Generating ideas for new products

• Managing decline stage decisions

• Removing products from the market

Which statement best describes the pricing function in marketing?

• Listing product features to increase perceived quality

• Designing packaging to make products look more appealing

• Setting and changing prices to match customer value

• Advertising to create interest among target audiences

When deciding how much to charge, which two questions are most important?

• How much did we spend on ads last year?

• What are my competitors charging?

• Which color will the product box be?

• What are customers willing to pay?

Fill in the blank: Businesses adjust prices to follow market (a)   .

Match each term with its best description.

• Limited availability of products

• Scarcity

• Prices set by rival sellers

• Competitor pricing

• Price changes as inventory rises or falls

• Customer perception of value

• What buyers think a product is worth

• Law of Supply and Demand

According to the Law of Supply and Demand, what usually happens when inventory goes down?

• Prices go up

• Prices stay the same

• Prices go down

• Demand disappears

A toy store has extra stock of a popular figure after the holidays. What pricing action is most likely?

• Stop selling the figure entirely

• Lower prices to sell remaining units

• Raise prices to increase profit margins

• Keep prices unchanged for months