Chapter 3 - Product

Question 1

Which of the following best explains the meaning of the term “Value package”?

a) The combination of function, features and benefits that a consumer gets, or hopes to get when purchasing a product.
b) The combination product, price promotion and place needed to satisfy target customers.
c) The idea that a business should view its customers as an asset.
d) The idea that a product’s value to a business has a finite life cycle.

Answer 1

a) The combination of function, features and benefits that a consumer gets, or hopes to get when purchasing a product.

Question 2

The value package that comes with purchasing a Mercedes Benz automobile would include all of the following except:

a) The ability to transport passengers and luggage
b) The reputation of German engineering
c) The prestige that comes from owning a luxury car
d) High resale value
e) There is no exception in this list, all 4 are part of Mercedes’ value package

Answer 2

e) There is no exception in this list, all 4 are part of Mercedes’ value package

Question 3

Which of the following describes the key difference between convenience products and shopping products?

a) Convenience products generally cost more
b) Shopping products tend to involve more careful evaluation of alternatives
c) Shopping products tend to be goods whereas convenience service tend to be services
d) Shopping products tend to be high contact whereas convenience products tend to be low contact

Answer 3

b) Shopping products tend to involve more careful evaluation of alternatives

Question 4

A wedding dress is expensive, and will be remembered by a bride for the rest of her life. The buyer of a wedding dress will spend a good deal of time and emotional energy making sure to select the “perfect” dress. These are the characteristics of which type of product?

a) Shopping
b) Emotional
c) Luxury
d) Speciality

Answer 4

d) Speciality

Question 5

At which stage of the product life cycle is revenue not yet sufficient to offset development costs?

a) Maturity
b) Shake-out
c) Introduction
d) Extension
e) Growth

Answer 5

c) Introduction

Question 6

At which stage of the product life cycle do sales begin to climb and the product begins to show a profit?

a) Expansion
b) Adolescence
c) Development
d) Extension
e) Growth

Answer 6

e) Growth