123. T F
A product need not be a physical product.
124. T F
A service is intangible and is the result of the application of human or
mechanical efforts to people or objects.
125. T F
Supporting services, such as installation and guarantees, are part of a
126. T F
The core product element of the total product can include installation,
delivery, training, and financing.
127. T F
The atmosphere and décor of a retail store, the variety and depth of
product choices, the customer support, even the sounds and smells all
contribute to the experiential element of its total product.
128. T F
The buyer’s intent can determine whether an item is classified as a
consumer or a business product.
129. T F
Use of the product is the most important means of distinguishing
consumer products from business products.
130. T F
The two major product categories are business and institutional.
131. T F
A product’s classification can influence its price, distribution, and
132. T F
Bread is usually a convenience product.
133. T F
Consumers are reluctant to purchase substitute brands if a desired brand
of a convenience product is unattainable.
134. T F
Unfinished furniture is considered to be a convenience product because
it is relatively inexpensive.
135. T F
Per-unit gross margins on convenience products are relatively high.
136. T F
The gross margin percentage on convenience goods is usually fairly high
because they are low-priced items.
137. T F
Buyers want to exert only minimal effort to obtain shopping products.
138. T F
Service, repair work, and accessories may be important considerations in
a consumer’s decision to purchase a particular shopping product.
139. T F
Obtaining a specialty product involves a considerable amount of
140. T F
Accessory equipment becomes a part of the finished product.
141. T F
Component parts usually need to be processed significantly before they
are used in production.
142. T F
Process materials are used directly in the production of products.
143. T F
“Business Services” is not a category or type of business product.
144. T F
A product line is a particular version of a product that can be
designated as a distinct offering on the organization’s list of products.
145. T F
A product line includes a group of closely related product items that
are considered to be a unit because of marketing, technical, or end-use
146. T F
Product mix refers to a related group of products in the product line.
147. T F
The depth of a product mix is measured by the average number of product
types in a product line.
148. T F
The width of a product mix refers to the number of generic products
offered by a company.
149. T F
A product mix is the composite or total group of products that an
organization makes available to customers.
150. T F
Procter & Gamble has a wider product mix than does Baskin Robbins.
151. T F
The original marketing strategy should not be altered in any way as a
product travels through the stages of the product life cycle because consumers
can become confused.
152. T F
Many products never get beyond the introduction stage.
153. T F
Communicating product benefits to consumers is very important in the
154. T F
New products seldom generate enough sales to bring immediate profits.
155. T F
Price cuts are typical in a product’s growth stage.
156. T F
During the growth stage, promotion costs rise as a percentage of total
157. T F
Intensive competition causes price increases during the growth stage of
the product life cycle.
158. T F
Distribution outlets become more difficult to secure during the growth
stage of a product’s life cycle because of aggressive competition.
159. T F
Intense price wars are likely to occur during the growth stage of the
product life cycle as competitors attempt to gain market share.
160. T F
Profits decline in the maturity stage, largely because of increased
161. T F
A seller’s profits peak in the maturity stage of a product’s life cycle.
162. T F
Sales peak in a product’s maturity stage.
163. T F
Many products are in the maturity stage of the product life cycle.
164. T F
Changing the product’s quality is a distinct alternative in the maturity
stage of the product life cycle.
165. T F
The marketing mix should be left alone during the maturity stage of the
product life cycle; tampering with it may bring an early death to the product.
166. T F
During a product’s maturity stage, all sales promotion efforts are
focused on consumers.
167. T F
Strategies relating to price become more mixed during a product’s
168. T F
A business can justify keeping a product as long as it contributes to
profits or enhances the effectiveness of a product mix.
169. T F
Sometimes new marketing channels open up in the decline stage.
170. T F
Promotion decreases in importance during a product’s decline stage.
171. T F
Advertising used in the decline stage may prolong the life of the
172. T F
Sellers can sometimes prolong a product’s life cycle.
173. T F
When an organization introduces a new product, people do not all begin
the adoption process at the same time, nor do they move through the process at
the same speed.
174. T F
Trial is the first stage of the product adoption process.
175. T F
A buyer becomes aware of the product during the evaluation phase of the
product adoption process.
176. T F
In the awareness stage of the product adoption process, the buyer seeks
information about the product.
177. T F
“The people to check with” are the early adopters.
178. T F
The first adopters of a product are the innovators.
179. T F
Early adopters are the first group of consumers to adopt a new product.
180. T F
Laggards are the last to adopt a new product and usually distrust new
181. T F
One of the most common reasons new products fail is because of a
company’s failure to match product offerings to customer needs.
182. T F
Being a product pioneer guarantees a product’s success.
183. T F
The success of launching a new product is based primarily on luck.
184. T F
When a successful brand such as Frito-Lay develops a new product, it
will always succeed.
185. T F
Failure of a new product is always absolute.
186. T F
If a company repositions a relative product failure, that product might
become a successful member of the product line.
187. T F
Following a consistent customer-focused plan does not help new products