ct": A) means a physical good. B) includes all the elements of a marketing mix. C) means the need-satisfying offering of a firm. D) refers to goods but not services. E) All of the above. | Ans: C | Easy | LO: 1 | Pg. 197 | Definitional | 87. "Product" means: A) all the services needed with a physical good. B) a physical good with all its related services. C) the need-satisfying offering of a firm. D) all of a firm's producing and distribution activities. E) a well-packaged item with a well-advertised brand name. | Ans: C | Easy | LO: 1 | Pg. 197 | Self-Test | 88. According to the text, product quality means that: A) products are designed to meet demanding specifications. B) a product satisfies a customer's requirements or needs. C) there are not errors in the production process. D) the product won't ever break. E) None of the above is correct. | Ans: B | Easy | LO: 1 | Pg. 197 | Definitional | 89. From a marketing perspective, product quality primarily depends on A) the price of a product. B) a product working as it is supposed to work. C) quality control procedures used during manufacturing. D) the customer's specific requirements and needs. E) the features of products offered by competitors. | Ans: D | Medium | LO: 1 | Pg. 197 | Comprehension | 90. From a marketing perspective, a high quality copy machine is one that: A) does a good job satisfying a customer's requirements or needs. B) offers the most features. C) is produced with the best materials. D) has the longest warranty. E) is designed and manufactured to last the longest. | Ans: A | Medium | LO: 1 | Pg. 197 | Comprehension | 91. Regarding quality: A) the best credit card may not be the one with the highest credit limit. B) the best clothing may not be a pair of slacks, but a pair of jeans. C) the best computer may not be the most powerful one. D) All of the above are true. E) None of the above is true. | Ans: D | Easy | LO: 1 | Pg. 197 | Self-Test | 92. According to the text, which of the following is NOT a product? A) space in Playboy Magazine sold to an advertiser B) a Sony PlayStation III C) a Broadway musical play D) the San Diego Zoo E) All of the above are products. | Ans: E | Easy | LO: 1 | Pg. 197 | Application | 93. "Product" means: A) A physical good or service which offers potential customer satisfaction. B) A physical good with all its related features. C) The entire physical output of a firm. D) All of the elements in a firm's marketing mix. E) Something that has been produced, packaged, branded, and given a warranty. | Ans: A | Medium | LO: 1 | Pg. 197 | Definitional | 94. A "product" might include: A) a brand name, a package, and a warranty. B) instructions. C) a service which does not include a physical good at all. D) some physical item and its related features. E) All of the above. | Ans: E | Easy | LO: 1 | Pg. 197-98 | Comprehension | 95. Which of the following is a "product"? A) a used car B) a bus ride C) a haircut D) a dental exam E) all of the above | Ans: E | Easy | LO: 1 | Pg. 197-98 | Application | 96. A product assortment is: A) something offered by manufacturers but not by retailers. B) a particular product within a product line. C) a set of products that are closely related. D) the set of all product lines and individual products that a firm sells. E) None of the above. | Ans: D | Easy | LO: 1 | Pg. 200 | Definitional | 97. A company with a large product assortment might A) have many product lines with little selection in each. B) have a single product line. C) have many individual products. D) All of the above are true. E) Only A and C are true. | Ans: D | Easy | LO: 1 | Pg. 200 | Self-Test | 98. A large U.S. firm produces potato chips, shortening, dishwashing detergent, laundry detergent, shampoo, disposable diapers, and facial tissues. These are the firm's A) product classes. B) product assortment. C) individual products. D) marketing mix. E) product line. | Ans: B | Medium | LO: 1 | Pg. 200 | Application | 99. A product line is a set of individual products that are closely related in which of the following ways? A) They are sold to the same target market. B) They are produced and/or operate in a similar manner. C) They are priced at about the same level. D) They are sold through the same type of outlets. E) Any or all of the above. | Ans: E | Easy | LO: 1 | Pg. 200 | Definitional | 100. Which of the following could be an example of a firm's product line? A) coffees. B) disposable diapers. C) snow skis. D) ski boots. E) all of the above. | Ans: E | Easy | LO: 1 | Pg. 200 | Application | 101. Nike, Inc. markets several types of athletic shoes, along with clothing and fitness equipment. In other words, Nike has A) product components. B) a battle of the brands. C) no product assortment. D) many product classes. E) several product lines. | Ans: E | Medium | LO: 1 | Pg. 200 | Application | 102. Individual products: A) are part of product lines but not product assortments. B) may require their own marketing mixes. C) are usually distinguished by brand, size, price, or some other characteristic. D) All of the above. E) Both B and C. | Ans: E | Medium | LO: 1 | Pg. 200 | Definitional | 103. Which of the following is the best example of an individual product? A) 32-ounce boxes of Gain and Tide. B) 3 types of pears. C) six brands of cookies. D) 12 oz. size of Pert Plus. E) all of the above. | Ans: D | Medium | LO: 1 | Pg. 200 | Application | 104. Regarding product classes, A) Business product classes are based on how buyers think about products and how the products will be used. B) Consumer product classes are based on how consumers think about and shop for products. C) Compared to final customers, business customers do less shopping. D) Products are classified by what type of customer will use them. E) All of the above are true. | Ans: E | Easy | LO: 3 | Pg. 200-201 | Comprehension | 105. The fact that the demand for business products depends a lot on the demand for final consumer products is called: A) primary demand. B) derived demand. C) diminishing demand. D) elastic demand. E) secured demand. | Ans: B | Easy | LO: 3 | Pg. 201 | Definitional | 106. "Derived demand" is best illustrated by the demand for: A) tea as a substitute for coffee. B) brick because of increasing demand for new homes. C) fresh raspberries during the winter months. D) CD players because of increasing interest in CD audio discs. E) all of the above. | Ans: B | Medium | LO: 3 | Pg. 201 | Application | 107. Consumer product classes are based on ______________, while business product classes are based on ______________. A) how the product is to be used, the price for the product B) how consumers shop for the product, how the product is to be used C) the price of the product, the quality of the product D) how the product is produced, how the product is sold E) how the product is sold, how the product is produced | Ans: B | Easy | LO: 3 | Pg. 201 | Definitional | 108. The text's consumer product classes are based upon: A) methods of distribution. B) NAICS codes. C) the nature of the products. D) the way people think about and shop for products. E) the way firms price their products. | Ans: D | Easy | LO: 3 | Pg. 201 | Self-Test | 109. According to the text, consumer product classes: A) are based on how consumers shop for products. B) are interesting, but not helpful for planning marketing strategy. C) are based on how the products will be used. D) are based on the product features involved. E) can be broken down into goods, services, and ideas. | Ans: A | Easy | LO: 3 | Pg. 201 | Comprehension | 110. Consumer product classes A) are based on how the product will be used. B) are based primarily on how much effort is actually involved in making a purchase. C) suggest the type of marketing mix that should be used, but business product classes have little to do with the marketing mix that should be used. D) are based on how consumers think about and shop for products. E) None of the above is true. | Ans: D | Medium | LO: 3 | Pg. 201 | Comprehension | 111. The text's consumer product classes are based on: A) each product's price level. B) the way consumers think about and shop for products. C) the channel(s) of distribution used for each product. D) the nature of the product and how it will be used. E) how the product is produced. | Ans: B | Medium | LO: 3 | Pg. 201 | Definitional | 112. The text's consumer product classes are based on: A) the demand elasticity of the products. B) the way people think about and shop for products. C) the type of stores that sell the products. D) the quantity in which products will be purchased or used. E) how the sellers view the products. | Ans: B | Easy | LO: 3 | Pg. 201 | Definitional | 113. Which of the following is NOT one of the consumer product classes discussed in the text? A) Unsought products B) Innovative products C) Shopping products D) Convenience products E) Specialty products | Ans: B | Easy | LO: 3 | Pg. 201 | Integrating | 114. Which of the following is NOT one of the consumer product classes discussed in the text? A) Unsought products B) Imitation products C) Shopping products D) Convenience products E) Specialty products | Ans: B | Easy | LO: 3 | Pg. 201 | Integrating | 115. Convenience products include: A) impulse products. B) staple products. C) emergency products. D) All of the above. E) Only A and C above. | Ans: D | Easy | LO: 4 | Pg. 201 | Definitional | 116. ______________ are products a consumer needs but isn't willing to spend much time and effort shopping for. A) Convenience products B) Unsought products C) Homogeneous shopping products D) Utility products E) Heterogeneous shopping products | Ans: A | Medium | LO: 4 | Pg. 201 | Definitional | 117. ______________ are products a consumer needs but isn't willing to spend much time and effort shopping for. A) Convenience products B) Unsought products C) Homogeneous shopping products D) Specialty products E) Heterogeneous shopping products | Ans: A | Medium | LO: 4 | Pg. 201 | Definitional | 118. Which of the following would be a convenience product for most consumers? A) Gold jewelry B) Butter C) Stereo TVs D) Dress shoes E) Bicycles | Ans: B | Easy | LO: 4 | Pg. 201 | Application | 119. Regarding consumer product classes, a convenience product is to an emergency product as A) a staple is to an emergency product B) a shopping product is to a heterogeneous shopping product C) an unsought product is to a specialty product D) a new unsought product is to a regularly unsought product E) a specialty product is to a homogeneous shopping product | Ans: B | Hard | LO: 4 | Pg. 201-202 | Comprehension | 120. If a consumer product is used regularly and usually bought frequently and routinely with little thought (although branding may be important), this product is: A) a routine product. B) a specialty product. C) a homogeneous shopping product. D) a staple product. E) a casual product. | Ans: D | Easy | LO: 4 | Pg. 201 | Self-Test | 121. Staple products: A) need maximum exposure and widespread distribution at low cost. B) need adequate representation in major shopping areas. C) need widespread distribution but with assurance of preferred display. D) need widespread distribution near probable points of use. E) can have limited availability as long as display is good. | Ans: A | Hard | LO: 4 | Pg. 202 | Comprehension | 122. Impulse products are: A) products that potential customers do not want yet or know they can buy. B) bought quickly--as unplanned purchases--because of a strongly felt need. C) any products that consumers search for because of a strongly felt craving. D) any convenience products that are bought often and routinely. E) All of the above. | Ans: B | Medium | LO: 4 | Pg. 201 | Comprehension | 123. Impulse products: A) are likely to gain or lose sales depending on where they're sold. B) require a great deal of advertising. C) are a specific type of specialty product. D) are usually high in price. E) All of the above are correct. | Ans: A | Medium | LO: 4 | Pg. 201 | Definitional | 124. Which of the following products in a supermarket is MOST likely to be an impulse product? A) oranges. B) bread. C) frozen peas. D) a child's toy. E) shampoo. | Ans: D | Medium | LO: 4 | Pg. 201 | Application | 125. Which of the following products in a supermarket is LEAST likely to be an impulse product? A) bread. B) local newspaper. C) camera film. D) an ice cream cone. E) flashlight batteries. | Ans: A | Easy | LO: 4 | Pg. 201 | Application | 126. While shopping in a local supermarket, Jolene Partin came upon an aisle display of cookies and had to have some--immediately. By the time she got to the checkout counter with the rest of her selections, all the cookies were gone. In this case, the cookies were: A) an impulse product. B) a staple product. C) an unsought product. D) very nutritious. E) a consumption product. | Ans: A | Medium | LO: 4 | Pg. 201 | Application | 127. Impulse products: A) can have limited availability as long as display is good. B) need widespread distribution with display at point of purchase. C) need enough exposure to facilitate price comparisons. D) need adequate representation in major shopping areas. E) need widespread distribution at low cost. | Ans: B | Hard | LO: 4 | Pg. 202 | Comprehension | 128. Regarding the organization of the product classes, an impulse product is to an emergency product as A) a new unsought product is to a regularly unsought product. B) an installation is to a homogeneous shopping product. C) an impulse product is to a convenience product. D) a consumer product is to a business product. E) a shopping product is to a specialty product. | Ans: A | Hard | LO: 4 | Pg. 201-203 | Comprehension | 129. Compared to other consumer products, the major distinguishing characteristic of emergency products is the customer's: A) desire to negotiate for a "deal." B) urgency to get the need satisfied. C) willingness to shop around for a lower price. D) interest in the brand name. E) willingness to shop and compare. | Ans: B | Easy | LO: 4 | Pg. 201 | Comprehension | 130. During a heavy rainstorm, Louie Hirasawa slipped into a drugstore and bought an umbrella--just like the one he had at home--for $15.00 plus tax. In this case, the umbrella is: A) a specialty product. B) a shopping product. C) an unsought product. D) an emergency product. E) an impulse product. | Ans: D | Easy | LO: 4 | Pg. 201 | Application | 131. Emergency products: A) need adequate representation in major shopping areas. B) need widespread distribution but with assurance of preferred display. C) can have limited availability as long as display is good. D) need widespread distribution near probable points of use. E) need widespread distribution at low cost. | Ans: D | Hard | LO: 4 | Pg. 202 | Comprehension | 132. Which of the following is true regarding shopping products? A) Price is less important in the purchase of heterogeneous shopping products than homogeneous shopping products. B) Compared to heterogeneous shopping products, homogeneous shopping products are usually more standardized. C) Buyers usually expect more sales help or service with heterogeneous shopping products. D) All of the above are true. E) None of the above. | Ans: D | Easy | LO: 4 | Pg. 201-202 | Comprehension | 133. Consumer products which customers see as basically the same and want to buy at the lowest price are called: A) heterogeneous shopping products. B) homogeneous shopping products. C) comparison products. D) unsought products. E) convenience products. | Ans: B | Easy | LO: 4 | Pg. 201 | Definitional | 134. When some customers see all competitors' offerings as basically the same and are willing to spend much time and effort to buy the item at the lowest price, the item is: A) an analysis product. B) a specialty product. C) a staple product. D) a heterogeneous shopping product. E) a homogeneous shopping product. | Ans: E | Medium | LO: 4 | Pg. 201 | Definitional | 135. Having a competitive price is likely to A) be more important for a homogeneous shopping product than for a specialty product. B) be more important for a heterogeneous shopping product than for a homogeneous shopping product. C) be more important for an emergency product than for a staple. D) keep a product from falling into the "unsought" product class. E) None of the above is true. | Ans: A | Easy | LO: 4 | Pg. 201-202 | Self-Test | 136. Regarding consumer products, A) All unsought products remain unsought forever. B) Convenience products are products which customers want to buy at the lowest possible price. C) Price is not important at all for heterogeneous shopping products. D) Supermarkets may carry homogeneous shopping products. E) Specialty products must be searched for. | Ans: D | Hard | LO: 4 | Pg. 201 | Integrating | 137. Luke Flaherty wants to buy an electric drill for some jobs around his home. Deciding that all such drills are similar, he reads all the advertisements in his Sunday paper in search of the best price. For Luke, these drills are: A) a heterogeneous shopping product. B) a staple product. C) a specialty product. D) a homogeneous shopping product. E) an emergency product. | Ans: D | Medium | LO: 4 | Pg. 201 | Application | 138. Homogeneous shopping products: A) need widespread distribution near probable points of sale. B) need enough exposure to facilitate price comparison. C) need widespread distribution with assurance of preferred display. D) need widespread distribution at low cost. E) None of the above is true. | Ans: B | Hard | LO: 4 | Pg. 202 | Comprehension | 139. When final consumers are willing to spend much time and effort comparing quality and style--with brand and price being less important--the product is: A) an inspection product. B) a heterogeneous shopping product. C) a homogeneous shopping product. D) a specialty product. E) All of the above are correct. | Ans: B | Medium | LO: 4 | Pg. 201-202 | Definitional | 140. A consumer is most likely to want and expect help from a salesperson when shopping for A) a regularly unsought product. B) an impulse product. C) a staple. D) a heterogeneous shopping product. E) a homogeneous shopping product. | Ans: D | Medium | LO: 4 | Pg. 202 | Comprehension | 141. Gavan and Rebekah want to buy a flat-screen TV. They look at several brands in several different stores before finally deciding on a Sharp. This set was the most expensive model they saw, but they felt it had better colors and would be more reliable. In this case, this TV is: A) an impulse product. B) a heterogeneous shopping product. C) an emergency product. D) a specialty product. E) a homogeneous shopping product. | Ans: B | Medium | LO: 4 | Pg. 202 | Application | 142. Lisa Campos was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present. At the local discount store, she compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Lisa, the coffee pot was A) a convenience product, but the cassette player was a specialty product. B) a heterogeneous shopping product, but the cassette player was a staple. C) an impulse product, but the cassette player was a convenience product. D) a specialty product, but the cassette player was a heterogeneous shopping product. E) a homogeneous shopping product, but the cassette player was a heterogeneous shopping product. | Ans: E | Hard | LO: 4 | Pg. 201-202 | Application | 143. Heterogeneous shopping products: A) need adequate representation in major shopping areas near similar products. B) need widespread distribution near probable points of sale. C) need enough exposure to aid price comparison. D) need widespread distribution at low cost. E) need widespread distribution but with assurance of preferred display or counter position. | Ans: A | Hard | LO: 4 | Pg. 202 | Comprehension | 144. A consumer product that a customer really wants - and is willing to make a special shopping effort to find - is A) a staple product. B) a convenience product. C) a heterogeneous shopping product. D) a specialty product. E) an emergency product. | Ans: D | Easy | LO: 4 | Pg. 202 | Definitional | 145. Specialty products: A) have a number of close substitutes. B) are brands customers request by name. C) are generally high in price. D) all of the above. E) none of the above. | Ans: B | Easy | LO: 4 | Pg. 202 | Definitional | 146. A specialty product A) may not require much searching to find it, but the customer would be willing to search if necessary. B) may carry a well-recognized brand. C) may be frequently purchased. D) need not be an expensive item. E) All of the above. | Ans: E | Medium | LO: 4 | Pg. 202 | Definitional | 147. Specialty products are consumer products which: A) have elastic demand. B) very few customers want or can afford to buy. C) are relatively expensive and purchased only rarely. D) consumers are willing to search for because they really want them. E) All of the above. | Ans: D | Medium | LO: 4 | Pg. 202 | Comprehension | 148. Regarding specialty products, which of the following is TRUE? A) Branding does not play an important role in purchasing specialty products. B) It is a customer's willingness to search that makes it a specialty product. C) Shopping for a specialty product involves much comparing of products. D) It is the extent of searching which the customer has to do that makes it a specialty product. E) All of the above are true. | Ans: B | Easy | LO: 4 | Pg. 202 | Comprehension | 149. Which of the following orderings suggests the amount of effort (from little to much) that consumers are willing to spend in searching for the "right" product? A) Heterogeneous shopping products, specialty products, unsought products B) Convenience products, homogeneous shopping products, specialty products C) Unsought products, homogeneous shopping products, convenience products D) Staples, heterogeneous shopping products, unsought products E) Homogeneous shopping products, heterogeneous shopping products, staples | Ans: B | Hard | LO: 4 | Pg. 201-202 | Integrating | 150. Emil Flores won't buy any coffee except "Blue Mountain"--a relatively expensive type that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a small shop--but now he has persuaded his local supermarket manager to handle this coffee. For him, this coffee is A) an emergency product. B) a specialty product. C) a staple product. D) an unsought product. E) a heterogeneous shopping product. | Ans: B | Medium | LO: 4 | Pg. 202 | Application | 151. Until recently, Emil Flores wouldn't buy any coffee except "Blue Mountain"--a relatively expensive type that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a small shop. Then he was at a friend's home and tried an inexpensive brand of coffee sold by the local supermarket chain. Now he won't buy anything except that brand. For him, the supermarket coffee is A) an emergency product. B) a specialty product. C) a staple product. D) an unsought product. E) a heterogeneous shopping product. | Ans: B | Medium | LO: 4 | Pg. 202 | Application | 152. Denise Hunter had Thomasville brand living room furniture and wanted to buy a particular chair of the same brand. She made a few calls to find a store that had the chair in stock. When she found one, she went there and purchased the chair. For Denise, the chair was A) a homogeneous shopping product. B) a specialty product. C) an impulse product. D) a heterogeneous shopping product. E) an emergency product. | Ans: B | Hard | LO: 4 | Pg. 202 | Application | 153. Specialty products: A) need widespread distribution at low cost. B) need enough exposure to facilitate price comparison. C) need adequate representation near similar products. D) need widespread distribution near probable points of sale. E) can have limited availability. | Ans: E | Hard | LO: 4 | Pg. 202 | Comprehension | 154. Consumer products which consumers do not yet want or know they can buy - and probably would not buy without special promotion even if they saw them - are called: A) new brands of well-accepted staples. B) unsought products. C) heterogeneous shopping products. D) emergency products. E) homogeneous shopping products. | Ans: B | Easy | LO: 4 | Pg. 203 | Definitional | 155. Which of the following is an "unsought product"? A) Gravestones aimed at "senior citizens." B) A new type of "health food" produced by a new, small company. C) Life insurance aimed at college students. D) Encyclopedias aimed at new parents. E) All of the above. | Ans: E | Medium | LO: 4 | Pg. 203 | Application | 156. Unsought products: A) require wide distribution but little promotion. B) are generally unprofitable. C) should not be marketed. D) All of the above are true. E) None of the above is true. | Ans: E | Medium | LO: 4 | Pg. 203 | Comprehension | 157. Personal selling is extremely important for sellers of: A) specialty products. B) regularly unsought products. C) heterogeneous shopping products. D) new unsought products. E) homogeneous shopping products. | Ans: B | Medium | LO: 4 | Pg. 203 | Comprehension | 158. Which of the following statements about consumer products is true? A) Convenience products are those that customers want to buy at the lowest possible price. B) Shopping products are those products for which customers usually want to use routinized buying behavior. C) Specialty products are those that customers usually are least willing to search for. D) Unsought products are not shopped for at all. E) None of the above statements is true. | Ans: D | Easy | LO: 4 | Pg. 203 | Self-Test | 159. If a consumer purchases a new watch, the watch is: A) a specialty product. B) a heterogeneous shopping product. C) a homogeneous shopping product. D) a convenience product. E) it is not obvious - the watch could be any of the above. | Ans: E | Easy | LO: 3 | Pg. 203 | Application | 160. A $50 consumer product which is purchased infrequently is: A) an unsought product. B) a convenience product. C) a specialty product. D) a shopping product. E) It might be any of the above. | Ans: E | Medium | LO: 3 | Pg. 203 | Application | 161. Which of the following is NOT a business product? A) a roll of sheet metal B) a metal shelf system for storing inventory C) a custom-built robot for welding metal D) a pad of paper. E) Any of the above could be a business product. | Ans: E | Easy | LO: 3 | Pg. 204 | Application | 162. The text's business product classes are based on: A) how buyers think about products. B) how the products are to be used. C) the shopping behavior of the buyer. D) All of the above. E) Both A and B. | Ans: E | Medium | LO: 3 | Pg. 203 | Definitional | 163. Business product classes A) are based on whether demand is elastic or inelastic. B) are based on how buyers think about products and how they will be used. C) are based on the buying situation--whether the decision is new task, straight rebuy, or modified rebuy. D) All of the above are true. E) None of the above is true. | Ans: B | Medium | LO: 3 | Pg. 203 | Comprehension | 164. Which of the following is NOT one of the text's business product classes? A) Raw materials B) Component parts and materials C) Specialty products D) Professional services E) Installations | Ans: C | Easy | LO: 3 | Pg. 203-204 | Definitional | 165. Installations: A) are important long-lived capital items. B) seldom involve multiple-buying influence. C) are very large expense items for buyers as soon as they buy. D) are purchased often. E) are always custom-made. | Ans: A | Easy | LO: 4 | Pg. 204 | Definitional | 166. Which of the following business products to be purchased by a firm is most likely to involve top management in the buying decision? A) Raw materials B) Accessory equipment C) Operating supplies D) Installations E) Component parts | Ans: D | Easy | LO: 4 | Pg. 204 | Self-Test | 167. Multiple-buying influence would be most likely for: A) Repair items B) Accessories C) Professional services D) Installations E) It would be equally likely for all of the above. | Ans: D | Easy | LO: 4 | Pg. 204 | Application | 168. "Installation" products: A) are hardly ever leased because of the tax disadvantages. B) do not include buildings and land rights. C) justify multiple buying influence for custom-made equipment but not for standard equipment. D) such as custom-made equipment generally require special negotiations for each sale. E) All of the above are true. | Ans: D | Medium | LO: 4 | Pg. 204 | Comprehension | 169. Regarding installations, which is NOT true? A) The number of potential customers at any one time is quite large. B) Leasing installations may be attractive to buyers. C) It is common for sellers to offer specialized services. D) The buying needs of potential customers are basically economic. E) Multiple buying influence is common. | Ans: A | Medium | LO: 4 | Pg. 204 | Comprehension | 170. A local copying service is buying a new kind of high speed color copier. A) There will probably be more buying influences for the paper for the copier than for the copier. B) The copier is likely to be purchased with a new-task buying process. C) The copier will be depreciated as an expense item. D) A and C are both true. E) None of the above is true. | Ans: B | Medium | LO: 4 | Pg. 204 | Comprehension | 171. Trane Corp. manufactures long-lived, custom-made equipment which its customers treat as capital items. Trane's sales force faces much multiple-buying influence. Trane's products, which do not become part of the customer's final product, are: A) accessory equipment. B) installations. C) MRO items. D) component parts. E) operating supplies. | Ans: B | Medium | LO: 4 | Pg. 204 | Application | 172. VoiceSys, Inc. produces voice-mail switchboard systems used in large office buildings, hotels, and other facilities. VoiceSys is short of cash, but its products are so profitable and are selling so well that it has decided to buy more production equipment from one of the many suppliers that serve its industry. This example illustrates: A) how installations are a boom-or-bust industry. B) why installations may have to be leased or rented. C) derived demand. D) All of the above. E) None of the above. | Ans: D | Hard | LO: 4 | Pg. 204 | Application | 173. Which of the following is NOT a general characteristic of most business products? A) From a tax perspective, all purchases of business products are written off in the year in which the purchase is made. B) Their demand is derived from the demand for final consumer products. C) Buying is not as emotional as with consumer products. D) Buying is basically concerned with economic factors. E) All of the above are characteristics for most business products. | Ans: A | Easy |