CH12 EXAM QUESTIONS WITH
CORRECT ANSWERS
Product - ANSWERSA bundle of physical, service, and symbolic characteristics
designed to satisfy consumer wants.
Product strategy - ANSWERSThe part of marketing that deals with product/service
development. It also manages package design, trademarks and other product
identification, warranties, product life cycle, and new-product development.
Classifying goods and services - ANSWERSBroad categories included business to
consumer (B2C) and business to business (B2B), both of which can be subdivided into
smaller categories.
Marketing strategy implications of
the product life cycle - ANSWERSPrice, promotion, and distribution strategies will differ
as the product moves through its life cycle. The life cycle will be extended, (finding new
uses is an example) as long as it remains profitable.
Stages in new-product development - ANSWERSThe new-product development
process involves six distinct activities: 1) idea generation; 2) screening; 3) concept and
business analysis; 4) product development; 5) test marketing; and 6) commercialization.
Classifying consumer goods and services - ANSWERSThe classification is based on
consumer buying habits, and includes convenience, shopping, and specialty products.
Marketing strategy implications - ANSWERSOnce a product has been classified,
marketers have a better idea of its promotion, pricing, and distribution needs.
Product lines - ANSWERSA group of related products marked by physical similarities or
intended for a similar market.
Product mix - ANSWERSThe assortment of product lines and individual goods and
services that a firm offers to consumers and business users.
Stages of the product life cycle - ANSWERSThe cycle begins with the introductory
stage, advances through the growth and maturity stage, and ends in the decline stage.
Selecting an effective brand name - ANSWERSProducts are identified by brands, brand
names, and trademarks. Good brands are easy to pronounce, recognize, and