QUESTION Which of the following is NOT one of the four general classes of consumer goods and services? A) shopping B) ordinary C) specialty D) convenience E) unsought ANSWER Answer: B Explanation: B) The four general classes of consumer goods and services are convenience, shopping, specialty, and unsought. Ordinary is not one of them.
QUESTION The purpose of break-even analysis is to find the revenue needed to cover the total cost of making a product. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The purpose of break-even analysis is to find the break-even point—the point at which sales revenues equal costs; that is, at […]
QUESTION Which of the following is an example of shopping goods and services? A) bottled water B) Ferrari C) towing services D) stocks E) unusual teas ANSWER Answer: D Explanation: D) Stocks come under shopping goods and services: those products purchased after consumers make comparisons.
QUESTION The total product offer, also known as the value package, is all the factors that potential buyers evaluate in a product when considering whether to buy it. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The total product offer, also known as the value package, is all the factors […]
QUESTION Which of the following is an example of unsought goods and services? A) diamond necklace B) rare coffee beans C) Band-Aids D) fur coat E) acne cream ANSWER Answer: E Explanation: E) Acne cream comes under unsought goods and services: those products consumers are not aware of or interested in.
QUESTION Which of the following, if true, most weakens the argument above? A) City A is in a region known for high demand for pineapples. B) People in City A are more likely than people in City B to eat fresh fruit for health reasons. C) No competitor of All American Burger located in either […]
QUESTION Which category of business product is correctly paired with its definition? A) supplies: smaller, more mobile equipment B) installations: basic materials for making principal product C) capital items: large, long-lasting equipment D) process materials: goods to help make, but not become part of, principal product E) raw materials: services used in operations ANSWER […]
QUESTION Industrial goods, also called business goods, are products used to produce other products. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The business market or business-to-business (B2B) market consists of those businesses that want industrial goods, or business goods, products used to produce other products.
QUESTION Which of the following is an example of specialty goods and services? A) limited edition olive oil B) Louis Vuitton off-the-rack purse C) checking account D) potato chips E) emergency clean-up services ANSWER Answer: A Explanation: A) Limited edition olive oil comes under specialty goods and services: those products requiring special effort to […]
QUESTION A new product color, size, or packaging represents a discontinuous innovation. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A new product color, size, or packaging represents a continuous innovation, representing modest improvements.
