BUSPROG

1. Would a new car equipped with a bumper jack, jack handle, spare tire, and warranty be the same product as the same car without these features? Explain. ANSWER: Since a product is everything one receives in an exchange, including all tangible and intangible attributes and expected benefits, no, the new car with additional features and accessories is not the same product as the car without these accessories. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 323 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Classification of Products KEYWORDS: Bloom's: Comprehension 2. Give the characteristics of shopping products, specialty products, and convenience products. Illustrate those characteristics with examples of products that fit the categories. ANSWER: Convenience products are relatively inexpensive, frequently purchased items for which buyers want to exert only minimal effort, such as chewing gum or newspapers. Shopping products are items for which buyers are willing to expend considerable effort on planning and making the purchase, such as appliances and furniture. Specialty products are items with special or unique characteristics for which a group of buyers is willing to expend considerable purchasing effort, such as sports cars or antique items. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 324 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Classification of Products KEYWORDS: Bloom's: Knowledge 3. Identify and describe the major stages of the product life-cycle. ANSWER: The four stages of the product life-cycle are (1) introduction, (2) growth, (3) maturity, and (4) decline. To determine which stage a particular product is in, the characteristics of that product (increasing sales, more competitors, falling profits, etc.) can be compared to the characteristics that exemplify each stage of the product life￾cycle. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 325 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: The Product Life-Cycle KEYWORDS: Bloom's: Knowledge 4. At what stage in the product life-cycle would sales volume tend to decrease sharply? Why? ANSWER: The decline stage of the product life-cycle is when sales volume decreases sharply and profits fall. The decline stage is the last stage of the product life-cycle. Decline often occurs due to technological advances or environmental factors or because consumers have switched to competing brands. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 327 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: The Product Life-Cycle KEYWORDS: Bloom's: Comprehension 5. Are a product mix and a product line the same thing? Why or why not? ANSWER: No, a product line is a group of similar products that differ only in relatively minor characteristics. They are often products that are related in the way they are produced, marketed, or used. A product mix consists of all the products a firm offers for sale--likely with little or no relationship among them. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 328 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Product Line and Product Mix KEYWORDS: Bloom's: Comprehension 6. Identify and discuss the three major ways that a product mix can be improved. ANSWER: One way of improving a product mix of a company is through product modification, the changing of one or more of a product’s characteristics. The products need to be modifiable, the change needs to be perceived by consumers, and the modification needs to fit with customers’ needs and wants. A second way of improving a product mix is line extension, the development of a product closely related to one or more products in the existing product line. POINTS: 1 DIFFICULTY: Challenging REFERENCES: pp. 329-330 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Managing the Product Mix KEYWORDS: Bloom's: Comprehension KEYWORDS: Bloom's: Comprehension 7. What are the major phases involved in the new product development process? ANSWER: The phases of new-product development start with idea generation, followed by screening, concept testing, business analysis, product development, test marketing, and commercialization. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 331 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Managing the Product Mix KEYWORDS: Bloom's: Knowledge 8. Developing new products is risky, time consuming, and expensive with a high rate of failure. Nevertheless, “failing to introduce new products can be just as hazardous.” What is meant by this quote? ANSWER: Answers will vary. If a company and their products or services become stale, competitors will take over that market; that is a risk unto itself. Despite the risk of devoting resources to new product development, successful new products bring a number of benefits: survival of the firm, profits, a sustainable competitive advantage, and a favorable image. POINTS: 1 DIFFICULTY: Moderate REFERENCES: p. 330 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: Managing the Product Mix KEYWORDS: Bloom's: Comprehension 9. Is McDonald's "golden arches" symbol a brand name or a brand mark? Define each term, and state how they differ. ANSWER: McDonald’s golden arches are a brand mark, a part of a brand that is a symbol or distinctive design. A brand name, on the other hand, is the part of a brand that can be spokenwhich, of course, McDonald’s arches cannot. POINTS: 1 DIFFICULTY: Challenging REFERENCES: p. 333 LEARNING OBJECTIVES: FOBU.PRIDE.15.12-5 NATIONAL STANDARDS: United States - BUSPROG: Analytic KEYWORDS: Bloom's: Comprehension TOPICS: Branding, Packaging, and Labeling