AFM101 Final: Article notes for AFM101 final.docx

A service offering cannot be seen or touched.

A service offering is “produced” or “delivered” in the presence of the customer.

The quality of a service offering can vary from customer to customer.

All of the above are true.

The price of substitute products.

The anticipated length of the product life cycle.

The degree of differentiation between the new product and existing products on the market.

All of the above.

A package should provide protection to the consumer and to the product.

A package should attract consumers' attention

A good package should explain the features of the product, and how to use it.

All of the above are true.

Lower prices lead to higher sales volumes.

Higher sales volumes lead to lower unit costs of production.

Different levels of price (and cost) lead to different levels of profit.

All of the above.

For new innovations, production costs typically increase as more and more units are produced.

For innovations, production costs typically are not affected by production volume.

For new innovations, production costs typically decline as more and more units are produced.

Marketing managers who have more experience are typically more effective at their jobs.

The level of compatibility with existing technology.

The extent to which people can observe others using the product.

The level of functional, social, and/or monetary risk associated with the product.

All of the above.

Consumers typically will not accept substitute brands.

Consumers typically are willing to put forth a high level of shopping effort.

These products should be distributed through a wide variety of retail stores.

All of the above are true.

A family branding strategy allows a firm to capitalize on its previous successes.

A failure of one product within the family brand can harm sales of the other brands in the family.

Family branding is advantageous in that it allows consumers to identify the manufacturer much easier, thus helping consumer to better judge the quality of the product.

All of the above are true.

The market potential is large, and is expected to increase over the years.

It is highly likely that competitors will soon enter the market.

Higher levels of sales volume are likely to bring lower production costs per unit.

All of the above.

The quantity of product offered in a package can affect whether some consumers try the product.

Different markets segments oftentimes desire different size/quantity packages.

Different types of retail stores oftentimes prefer to carry different size/quantity packages.

All of the above are true.

The service offering is “produced” or “delivered” in the presence of the customer.

The quality of the service offering can vary from customer to customer..

The service offering cannot be seen or touched.

All of the above are true