Transcript 3.01

3.01
Connor Trent & Connor Seay
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 1. Which of the following is a way
that a buisness can extend the life
cycle of an establishes product?
A. By promoting the product to current users
B. By finding new uses for the product
C. By restricting distribution
D. By attracting customers who are innovators
Answer
 B,
By finding new uses for the product.
Establishes products are in the maturity stage,
and one way marketers can extend their life
cycles is by finding new ways that the products
can be used by current consumers. Continuing
to promote the same product to current users
will not extend its life cycle. Consumers who
are innovators are attracted to products in the
introductory stage, not the maturity stage.
Restricting distribution would shorten rather
than lengthen the products life cycle.
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 2. When a company uses its product
wrapping to promote the preservation
of an endangered animal species, its
engaging in an ethical practice
called..
A. political lobbying
B. environmental labeling
C. cause packaging
D. provocative branding
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 3. A business is behaving unethically
if its product’s label contains..
A. nutritional values
B. recyclable material
C. mandatory requirements
D. misleading information
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 4. Which of the following
technological tools helps a business's
employees simultaneously access the
same information about the
business's products?
A. Memory Card
B. Micro-Portal
C. Intranet
D. Generator
Answer
 C,
Intranet. Intranet refers to a business's network of
computers that are linked so that the employees can
retrieve the same business info. For example, a software
program that tracks inventory may be available for the
sales department, the shipping department, and the
purchasing department to review. A business that uses
an Intranet system to manage product maximizes its
communications and response time. Generators and
memory cards do not allow a business's employees to
simultaneously access the product info. Micro-Portal is a
fictitious term.
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 5. Five years aftera new product has been
introduced, sales begin to level off because
customers are purchasing the competitors
brand. What strategy would be most
appropiate to use in this situation?
A. Take the product off the market
B. Do nothing, fluctuations in sales are common
C. Modify the product to renew customer intrest
D. Triple the advertising budget for the product
Answer
 C,
Modify the product to renew customer interest. Modifying
the product allows a company an opportunity to increase
sales without the risk of introducing an entirely new
product. Also, such modifications could include and
technological advances that have been made since the
product’s introduction. The product should remain on the
market, its sales have leveled off- not stopped. If the
company does nothing, sales may continue to decline.
Tripling the advertising budget does not guarantee
increased sales, especially if there is something
unsatisfactory about the existing product.
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 6. Which of the following is an unethical
situation in product/service management?
A. Vincent Electronics discontinues production
of a slow-moving solar calculator.
B. Travis Manufacturing uses recycled materials
for its product packaging
C. Donna’s dress boutique obtains deep
discounts from a new clothing designer
D. The Simpson company embellishes the
information the it places on its product labels
Answer
 D,
The Simpson Company embellishes the info
that it places on its product labels. When a
company embellishes info on product labels, it
is exaggerating the attributes or performance
of the product. This is unethical behavior
because the company is misleading customers.
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 7. What is one way businesses use
computer technology to obtain info to
improve their product/service mix?
A. Mailing questionnaires to customers
B. Tracking visitors to their web-sites
C. Compiling detailed databases
D. Preparing interactive software programs
Answer
 B,
Tracking visitors to their websites. As a result
of computer technology, many businesses have
developed websites that are accessible to
customers. This technology also allows
businesses to track their visitors to their
website and obtain info such as their name,
address, type of purchase etc..
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 8.
Which activity is addressed in the
product/service management function?
A. Setting discounts to clear products from inventory.
B. Determining where products will be offered for sale.
C. Focusing promotional activities on a new-product
release.
D. Eliminating products that are slow sellers.
Answer
 D.
Eliminating Products that are slow
sellers. The product/service
management function follows a
product throughout its life cycle,
determining when to eliminate slowselling items.
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9. What is an example of an ethical issue that
a product/service manager might face?
A. Use of color on the label.
B. Use of environmentally friendly
packaging.
C. Use of packaging as a means of
promotion.
D. Use of nutrition information on a food
label.
Answer
B.
Use of environmentally friendly
packaging. One of the ethical issues
that product/service managers face is
that of being environmentally friendly.
Many businesses changed their
packaging due to pressure by
customers.
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10.
Why should a business continue to monitor
an established product?
A. To determine the acceptance of a
product by a limited market.
B. To make sure that a marketing plan is
firmly in place.
C. to make changes in order to extend a
products life cycle.
D. To evaluate how a product might fit the
firms product mix.
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11.
Why is the quality level of a product an important
product/service management decision?
A. It identifies a products brand.
B. It reflects the image of the business.
C. It protects consumers.
D. It refers to the way the product works.
Answer
B.
It reflects the image of the business. The
quality level of a product is an important
part of product/service management
because it reflects the image of the
business. Product managers must choose
not only the image they wish to portray but
the level of quality that is appropriate to
the products themselves.
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12.
What is a technologically advanced method that allows a
businesses to produce products that are specialized for a
very few customers?
A. Intermittent conversion
B. Automatic production
C. Computerized robotics
D. Mass customization
Answer
D.
Mass customization. Computerization
and the technology of mass
production have created the method
of mass customization which allows
businesses to produce customized
products for one customer or only a
vary few customers.
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13. Why might profits sometimes decline for the
company that first introduced the product
during the growth stage of a products life
cycle?
A. Because sales decline in the growth stage.
B. Because marketing strategies are adjusted.
C. Because competitors have entered the
market.
D. Because production is more efficient.
Answer
C.
Because competitors have entered
the market. By the time a product
reaches the growth stage, there are
usually many competitors in the
market. This forces producers to
lower prices in order to compete for
market share.
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14.
Why does a company need to know what stage of the product
life cycle its products are in?
A. To prevent imitators from entering the
market.
B. To find new uses for the product.
C. To predict the length of the life cycle.
D. To adapt its marketing strategies.
Answer
D.
To adapt its marketing strategies.
Businesses change their marketing
strategies as their products go
through the stages of the life cycle.
This means that companies need to
know where products are in their life
cycles in order to use marketing
strategies appropriate for each stage.