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.
QUESTION Which of the following is an example of convenience goods and services? A) clothing B) paintings C) home warranty D) bonds E) newspapers ANSWER Answer: E Explanation: E) Newspapers come under convenience goods and services: those inexpensive products that people buy frequently and with little effort.
QUESTION Heavy on startup costs, with sales usually low, and the huge risk that the product may be rejected in the marketplace, the growth stage of the product life cycle is the period in which customer demand increases, the product’s sales grow, and later competitors may enter the market. Indicate whether the statement is true […]
QUESTION At the maturity stage of the product life cycle, sales slow as competition makes inroads, and managers need to concentrate on reducing costs in an effort to maintain the product’s profitability. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The maturity stage is the period in which the product […]
QUESTION Rachel has a new job working at a conveyor belt in a paper recycling plant. She works the residential mixed paper line. Her job is to pull off nonrecyclable items mixed in with the magazines, newspapers, and cereal-box cardboard. The first few days, when she had a coworker alongside her showing her the process, […]
QUESTION Which of the following questions would be LEAST relevant during the concept testing stage with target consumers? A) Do you believe the claim that this energy drink will increase mental alertness? B) Are you aware of our company’s social responsibility initiatives? C) How much would you pay for this energy drink? D) How often […]
QUESTION The vice president of the company thinks that Fizz should skip the test marketing step. Which of the following situations, if true, strengthens his argument? A) The development costs and the risks involved are extremely high. B) The new product will be substantially different than the ones already available in the market. C) Though […]
QUESTION The Fisher-Price Play Lab would be most effective at answering which of the following questions? A) What is the price that will generate the highest sales revenue for Fisher-Price products? B) To what extent do tots prefer group play as opposed to individual play? C) How do parents budget their children’s time between play […]
QUESTION A researcher at the Fisher-Price Play Lab produced a study reporting that children had strongly positive reactions to the new Happy Fun Ball. Executives, however, are concerned that the study reflects the researchers’ opinions more than the children’s opinions. Which of the following questions is LEAST relevant to the evaluation of the accuracy of […]
