Know-How Exchange : Student Questions

When developing new products, it is important for a firm to distinguish between a product concept, a product image, and a product _____.
a. idea
b. proposal
c. life-cycle
d. all of the above
e. none of the above

6. A _____ is the way consumers perceive an actual or potential product.
a. product idea
b. product concept
c. product image
d. test market
e. concept test

7. Products may fail because _____.
a. the market size may have been overestimated
b. the product’s design did not meet consumer expectations
c. they were priced too high
d. they were advertised poorly
e. any of the above

8. Costs that do not vary with production or sales level are referred to as _____.
a. fixed costs
b. variable costs
c. target costs
d. total costs
e. unit costs

9. What do we call a detailed version of a new idea stated in meaningful customer terms?
a. Product idea.
b. Product concept.
c. Product image.
d. Product proposal.
e. Product movement.

10. New product development starts with _____.
a. idea generation
b. idea screening
c. concept development
d. concept testing
e. test marketing



11. Price is the only element in the marketing mix that produces _____.
a. revenue
b. variable costs
c. expenses
d. fixed costs
e. stability

12. Companies usually develop _____ rather than single products.
a. product families
b. product groupings
c. product lines
d. product brands
e. product images

13. _____ is how responsive demand will be to a change in price.
a. Price elasticity
b. Break-even pricing
c. Demand curve
d. Target cost
e. Supply

14. Which of the following is not a typical supply chain member?
a. Reseller.
b. Customer.
c. Intermediary.
d. Intermediary’s creditor.
e. B and C

15. Most producers today sell their goods to _____.
a. final users
b. final users and marketing members
c. intermediaries
d. the government at various levels
e. competitors

16. Producers benefit from using intermediaries because they _____.
a. offer greater efficiency in making goods available to target markets
b. operate less expensively
c. save a lot of work
d. are generally backlogged with orders
e. refuse to store products for longer than a couple of days





17. Intermediaries play an important role in matching _____.
a. dealer with customer
b. supply and demand
c. product to region
d. A and C
e. none of the above

18. One of the following is not a key function that intermediaries play in completing transactions. Which is it?
a. Promotion.
b. Information.
c. Negotiation.
d. Financing.
e. Pricing.

19. What are the three gaps that separate goods and services from those who would use them?
a. Time, place, and form.
b. Place, possession, and form.
c. Time, place, and possession.
d. Place, time, and need.
e. Place, need, and distribution.

20. _____ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
a. Franchising
b. Retailing
c. Brokering
d. Wholesaling
e. Disintermediation