BA 303 LATEST EVALUATION TEST QUESTIONS
AND ANSWERS SURE A+
✔✔Unsought Products - ✔✔Products that customers may benefit from but don't usually
recognize their need and rarely actively seek them (ex. travel insurance, life insurance)
✔✔Business Products Classifications - ✔✔1. Classified by how it is used
2. Installations (Capital Items)
3. Accessories
4. Raw Materials
5. Processed Materials
6. Component Parts
7. Supplies
8. Business Services
✔✔Installations (Capital Items) - ✔✔Major capital goods, typically customized and
expensive
-There is usually no middle man
-Ex) Planes, buildings
✔✔Accessories - ✔✔Shorter lived products that are standardized and purchased more
frequently
-Ex) Chairs in a room, tools to work on a plane
,✔✔Raw Materials - ✔✔Unprocessed products that become part of an organization's
finished product
- Ex) sand, rocks
- Only concern is delivery and price
✔✔Processed Materials - ✔✔Materials that have been processed to conform to a
specific standard and eventually become part of a finished product
-Quality important
-Ex) Concrete, welded material, material treated with chemicals
✔✔Component Parts - ✔✔Manufactured products that have been made to become part
of a finished product
-Ex) lighting unit, bulb, housing, wiring
-Quality important
✔✔Supplies - ✔✔Products purchased in support of a business organization's
operational activities
-Ex) janitorial, office supplies, aren't the final product but they help
✔✔Business Services - ✔✔Services that aid the functioning of the business
-Accounting, advertising services
✔✔Product Mix Decisions - ✔✔1. Product Mix
2. Branding
3. Packaging
4. Labeling
5. Warranties
6. Customer Service
✔✔Product Mix - ✔✔What are you going to offer customers? How do we design it? How
many different types? You CAN have too many.
✔✔Branding - ✔✔Creating an identification for a product. Who stands behind it?
Lending a name to something.
✔✔Packaging - ✔✔Identifies products on a shelf
✔✔Product Item - ✔✔A specific version of a product that can be designated as a
distinct offering among an org's products
-SKU: stock keeping unit
-Ex) pen color, ink, shape, size
✔✔Product Line - ✔✔A group of closely related product items
-Related by use, etc.
, ✔✔Stretching - ✔✔-Adding a product line
✔✔Upward Stretching - ✔✔Adding a higher quality, higher price version of the product
-Ex) Honda adding higher quality automobiles
✔✔Downward Stretching - ✔✔Adding a lower quality, lower price version of the product
-Ex) Mercedes' less expensive cars
✔✔Top and Bottom Stretching - ✔✔Adding to both levels
-Ex) Texas Instrument added lower end as well as higher end calculators
✔✔Product Mix (encompases) - ✔✔All products that an org sells
- Diversifies Risk
-Capitalizes on established reputations
-Width: Different Varieties
-Depth: How many products within
Ex) Sony, which sells televisions, sells their first computer
✔✔Product Modification (Adjustment) - ✔✔- Quality, style, and functional modifications
- Ex) New models of automobiles
✔✔Product Repositioning (Adjustment) - ✔✔- Result of changing demographics,
changing sales, and changing social environment
- Ex) Cadillac made their models sportier to appeal to a younger market
✔✔Product Extension and Contraction (Adjustment) - ✔✔- Relates to Stretching
-EXTENSION: Adding additional products to an existing product line to compete more
broadly in the industry
-CONTRACTION: Eliminating existing products from a product line because they are
considered obsolete, sales are declining, new product line direction
✔✔Overextension Symptoms - ✔✔-Some products have low sales or cannibalize other
products
-Resources are disproportionately allocated to slow-moving products
-Items have become obsolete because of new product entries
AND ANSWERS SURE A+
✔✔Unsought Products - ✔✔Products that customers may benefit from but don't usually
recognize their need and rarely actively seek them (ex. travel insurance, life insurance)
✔✔Business Products Classifications - ✔✔1. Classified by how it is used
2. Installations (Capital Items)
3. Accessories
4. Raw Materials
5. Processed Materials
6. Component Parts
7. Supplies
8. Business Services
✔✔Installations (Capital Items) - ✔✔Major capital goods, typically customized and
expensive
-There is usually no middle man
-Ex) Planes, buildings
✔✔Accessories - ✔✔Shorter lived products that are standardized and purchased more
frequently
-Ex) Chairs in a room, tools to work on a plane
,✔✔Raw Materials - ✔✔Unprocessed products that become part of an organization's
finished product
- Ex) sand, rocks
- Only concern is delivery and price
✔✔Processed Materials - ✔✔Materials that have been processed to conform to a
specific standard and eventually become part of a finished product
-Quality important
-Ex) Concrete, welded material, material treated with chemicals
✔✔Component Parts - ✔✔Manufactured products that have been made to become part
of a finished product
-Ex) lighting unit, bulb, housing, wiring
-Quality important
✔✔Supplies - ✔✔Products purchased in support of a business organization's
operational activities
-Ex) janitorial, office supplies, aren't the final product but they help
✔✔Business Services - ✔✔Services that aid the functioning of the business
-Accounting, advertising services
✔✔Product Mix Decisions - ✔✔1. Product Mix
2. Branding
3. Packaging
4. Labeling
5. Warranties
6. Customer Service
✔✔Product Mix - ✔✔What are you going to offer customers? How do we design it? How
many different types? You CAN have too many.
✔✔Branding - ✔✔Creating an identification for a product. Who stands behind it?
Lending a name to something.
✔✔Packaging - ✔✔Identifies products on a shelf
✔✔Product Item - ✔✔A specific version of a product that can be designated as a
distinct offering among an org's products
-SKU: stock keeping unit
-Ex) pen color, ink, shape, size
✔✔Product Line - ✔✔A group of closely related product items
-Related by use, etc.
, ✔✔Stretching - ✔✔-Adding a product line
✔✔Upward Stretching - ✔✔Adding a higher quality, higher price version of the product
-Ex) Honda adding higher quality automobiles
✔✔Downward Stretching - ✔✔Adding a lower quality, lower price version of the product
-Ex) Mercedes' less expensive cars
✔✔Top and Bottom Stretching - ✔✔Adding to both levels
-Ex) Texas Instrument added lower end as well as higher end calculators
✔✔Product Mix (encompases) - ✔✔All products that an org sells
- Diversifies Risk
-Capitalizes on established reputations
-Width: Different Varieties
-Depth: How many products within
Ex) Sony, which sells televisions, sells their first computer
✔✔Product Modification (Adjustment) - ✔✔- Quality, style, and functional modifications
- Ex) New models of automobiles
✔✔Product Repositioning (Adjustment) - ✔✔- Result of changing demographics,
changing sales, and changing social environment
- Ex) Cadillac made their models sportier to appeal to a younger market
✔✔Product Extension and Contraction (Adjustment) - ✔✔- Relates to Stretching
-EXTENSION: Adding additional products to an existing product line to compete more
broadly in the industry
-CONTRACTION: Eliminating existing products from a product line because they are
considered obsolete, sales are declining, new product line direction
✔✔Overextension Symptoms - ✔✔-Some products have low sales or cannibalize other
products
-Resources are disproportionately allocated to slow-moving products
-Items have become obsolete because of new product entries
