MKTG311_CH12_T/F

The marketing mix is the blending of the four strategy elements—product, price, distribution, and promotion—to satisfy the target market.
True
Tangible goods and intangible services both intend to satisfy consumer wants and needs, but the marketing efforts supporting them may be vastly different.
True
A product is a bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs.
True
Marketers think in terms of a product as a compilation of package design and labeling, brand name, price, availability, warranty, reputation, image, and customer service activities that add value for the customer.
True
Services are intangible products.
True
A dinner at an exclusive restaurant is a pure good.
False
One way to distinguish goods from services is that services are inseparable from their service providers.
True
Providers can maintain inventories of their services.
False
Buyers rarely play any role in the creation and distribution of services.
False
A dentist provides pure service.
True
Internet security software that requires periodic updates and annual product upgrades is considered a pure service on the goods-services continuum.
False
Restaurant chains often use the same room decor and dining menu at all their locations in an attempt to standardize the services they offer.
True
Career counseling session is an example of a pure service on the goods-services continuum.
True
A college education is an example of a pure product on the goods-services continuum.
False
The U.S. service sector makes up only one-tenth of the nation’s economy.
False
Although the United States runs a continuing trade deficit in services, it has maintained a trade surplus in goods since 1992.
False
The trend of backshoring, firms returning their offshore work to the U.S., is growing.
True
Homeshoring is the practice of hiring workers to do jobs from home.
True
Firms that practice homeshoring experience the benefit of reduction in the use of energy and other natural resources thereby decreasing their impact on the environment.
True
Homeshoring enables firms to save on office space, furnishings, and supplies.
True
Product strategies are essentially the same for consumer and business markets.
False
Unsought products are marketed to consumers who may not yet recognize any need for them.
True
An Automated Teller Machine (ATM) is an example of a convenience service.
True
Milk is an example of a convenience product.
True
Staples are convenience goods and services that consumers constantly replenish to maintain a ready inventory.
True
A chocolate bar bought while standing in the checkout line is an example of staples.
False
As consumers devote little effort to convenience product purchase decisions, marketers must strive to make these exchanges as simple as possible.
True
Slotting allowances refer to money paid by producers to retailers to guarantee display of their merchandise.
True
According to retailers, the purpose of slotting allowances is to cover their losses if products don’t sell.
True
In contrast to the purchase of shopping products, consumers buy convenience products only after comparing competing offerings on such characteristics as price, quality, style, and color.
False
Shopping products typically cost less than convenience purchases.
False
The purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.
True
In the case of shopping products, a store’s name and reputation have considerable influence on people’s buying behavior.
True
As consumers are willing to exert considerable effort to obtain specialty products, producers can promote them through relatively few retail locations.
True
Marketers classify goods and services by considering the purchase patterns of the majority of buyers.
True
The seller’s image is very important for those marketers who sell convenience products.
False
Convenience of location is unimportant to a consumer who wants to buy a specialty product.
True
The classification system for business products emphasizes customer buying behavior rather than product uses.
False
Installations are major capital investments in the B2B markets and they are often designed specifically for the purchasers.
True
Installations’ marketers typically focus their promotional efforts on employing highly trained sales representatives, often with technical backgrounds.
True
If advertisements are used for installations, they emphasize the company’s reputation and direct potential buyers to contact local sales representatives.
True
Marketing accessory equipments requires continuous representation and dealing with the widespread geographic dispersion of purchasers.
True
Advertising is an important component in the marketing mix for accessory equipments.
True
Purchasers of component parts and materials need regular, continuous supplies of uniform-quality products.
True
Price is generally the deciding factor in purchasing raw materials since the costs vary widely across markets.
False
Supplies are also called MRO items.
True
Extensive planning time is required for the purchase of supplies.
False
Managers are responsible for communicating the goals of total quality management to all staff members.
True
Managers are responsible for communicating the goals of total quality management to all staff members.
True
Benchmarking is the method of measuring quality by comparing performance against industry leaders.
True
Internal analysis involves gathering information about the benchmark partner to find out why the partner is perceived as the industry’s best.
False
A service encounter is a point at which a consumer interacts with a service provider.
True
Service quality refers to the expected and perceived quality of a service offering.
True
The motivations for marketing complete product lines include the desire to grow, enhancing the company’s position in the market, optimal use of company resources, and exploiting the product lifecycle.
True
A product line is a series of related products offered by one company.
True
A company limits its growth potential when it concentrates on a single product, even though the company may have started that way.
True
SUVs produced by different automobile companies constitute a single product line.
False
The assortment of product lines and individual product offerings that a company sells is known as its product cluster.
False
The right blend of product lines and individual products allows a firm to maximize sales opportunities within the limitations of its resources.
True
Marketers typically measure product mixes according to width, length, and depth.
True
The width of a product mix refers to the number of product lines the firm offers.
True
The length of a product mix refers to the number of different products a firm sells.
True
The depth of product mix refers to the variations in each product the firm markets in its mix.
True
Procter & Gamble manufactures laundry detergents under the brand names of Tide, Cheer, and Gain. These brands represent the width of the product mix that Procter & Gamble offers.
False
Product line extension refers to the development of items that would expand the width of the product mix a company has to offer.
False
Product line extension refers to the development of items that would expand the width of the product mix a company has to offer.
True
The product lifecycle concept applies to individual brands of a product.
False
During the introductory stage of the product lifecycle, the public becomes acquainted with the item’s merits and begins to accept it.
True
During the growth stage of the product lifecycle, available supplies exceed industry demand for the first time.
False
Sales of a product category continue to grow during the early part of the maturity stage but—eventually reach a plateau as the backlog of potential customers dwindles.
True
In the maturity stage of a product lifecycle, differences between competing products diminish as competitors discover the product and promotional characteristics most desired by customers.
True
Fad cycles are examples of traditional product lifecycles.
False
In the maturity stage, heavy promotional outlays emphasize any differences still separating competing products, and brand competition intensifies.
True
Most fads experience short-lived popularity and then quickly fade, although some maintain residual markets among certain segments.
True
Product lifecycles can stretch indefinitely as a result of decisions designed to increase the frequency of use by current customers; increase the number of users for the product or change package sizes, labels, or product quality.
True
During the maturity stage of the product lifecycle, the industry sales curve for a product reaches a minimum point as competitors exhaust the supply of potential customers.
False
When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use as a metal cleaner, the manufacturer is attempting to extend the product’s lifecycle by changing its package.
False
The decision about whether to delete products from the product line is usually faced during the late growth and early maturity phases of the product lifecycle.
False
The products whose lifecycles can be extended or stretched indefinitely are referred to as orphan brands.
False