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WorksheetsMarketing 3.01-3.03
Total questions: 30
Worksheet time: 15mins
To meet the needs of its customers and help it achieve its company goals, a drugstore offers a large assortment of products, known as its product __________.
Depth
Mix
Width
Consistency
At a grocery store, you might decide to buy a bottle of Coca-Cola, a DiGiorno frozen pizza, and a can of Dole pineapple chunks. Each of these purchases is a product ___________.
Width
Mix
Item
Line
Which of the following is an example of a product line?
Kraft meats
A1 Steak Sauce
Philadelphia Cream Cheese
Capri Sun
Which of the following is a way a business can classify a product line?
Width
Depth
Trading up
Customer group
A technology company that offers its products in many different colors and at several different price points likely has a __________ product mix.
Shallow
Narrow
Broad
Deep
Which of the following is one of the elements included in judging the consistency of a company’s product lines?
End use
Product names
Packaging
Life cycle
Which of the following is an example of a business with a broad product mix?
Car dealership
Discount store
Candy store
Jeweler
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
Why would a business use a broad product mix?
To assure that the product lines are related
To promote one-stop shopping
To focus marketing efforts on a few product lines
To decrease legal liabilities
Why would a business use a shallow product mix?
To promote one-stop shopping
To allow the company to meet the needs of a variety of consumers
To control costs
To use a wide range of prices
A salon recently added nail services to its product mix. This strategy is called ___________.
contraction.
trading up.
expansion.
alteration
Which of the following is a reason for a business to add product items or lines to its product mix?
To improve products for social good
To satisfy customers’ desire for variety
To limit costs
To conflict with another product in the mix
A fast-food company offers burgers, chicken nuggets, pizza, and French fries. Eventually, the company realizes that the pizzas are not profitable and decides to stop selling them. Which product-mix strategy is the company using?
Trading down
Trading up
Alteration
Contraction
Why would a business remove or delete product items or lines from its product mix?
To appeal to a new market
To offer customers complementary products
To increase market risk
To avoid legal liabilities
A shampoo company decides to update its packaging to appeal to new customer attitudes and give its products fresh appeal. Which product-mix strategy is this company using?
Consistency
Expansion
Alteration
Contraction
Which of the following is a reason that a business would make changes to its products?
To keep up with changing consumer preferences
To make room for other products
To spread risk over a wider area
To predict the success of the changed product
Why would a business add higher priced products to its product mix?
To enhance the image of the company
To overcome production problems
To limit costs
To reduce legal liability
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.
A high-end department store decides to start selling a lower-priced line of clothing to appeal to a different market. Which product-mix strategy is the department store using?
Trading down
Alteration
Contraction
Expansion
Which of the following is a disadvantage associated with the addition of a lower priced product or line to a company’s product mix?
Customers may refuse to believe that better quality merchandise can be purchased from the business.
Sales of established products may decline.
The company’s reputation may be damaged.
Competition may be fierce among higher end competitors.
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
Which is a way that a business can extend the life cycle of an established product?
By promoting the product to current users
By finding new uses for the product
By restricting distribution
By attracting consumers who are innovators
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 activity is addressed in the product- or service-management function?
Setting discounts to clear products from inventory
Determining where products will be offered for sale
Focusing promotional activities on a new product’s release
Eliminating products that are slow sellers
Why should a business continue to monitor an established product?
To determine the acceptance of a product by a limited market
To establish a solid marketing plan
To make changes in order to extend a product's life cycle
To evaluate how a product might fit the firm's product mix
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 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.
Why does a company need to know the life-cycle stages of its products?
To prevent imitators from entering the market
To find new uses for the product
To predict the length of the life cycle
To adapt its marketing strategies
Which technological tools help employees simultaneously access the same information about a business's products?
Memory card
Micro-portal
Intranet
Generator
Why might profits sometimes decline for a company 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
A business is behaving unethically if its product's label contains what component?
Nutritional values
Recyclable materials
Mandatory requirements
Misleading information
