Sandy opened a small business that carries a very wide variety
of products of varying qualities at many different prices. Sandy is
losing customers who are disappointed with the selection,
quality, and quantity of items. What is lacking in Sandy's product
mix?
A. Consistency
B. Breadth
C. Depth
D. Width
A
Consistency
The items in the product mix are not closely related in end use,
target market, or price range. Sandy has purchased too many
different items of varying quality and prices to have consistency.
Width and breadth both refer to the number of product lines
carried by a company. Sandy has a broad product line. Depth
refers to the number of products and the assortment offered.
Sandy also has a deep product line because she is buying large
quantities of the products.
Which of the following is an example of a company's using brand extension?
A.
B.
C.
D.
Coca-Cola adding Caffeine-Free Diet Coke
Winn-Dixie installing an ATM machine in its stores
Tyson packaging smaller portions of chicken for the elderly
Kroger adding Blue Bell ice cream to its frozen foods section
A
Coca-Cola adding Caffeine-Free Diet Coke
Brand extension involves using successful brands to introduce new products.
Coke added another drink under the Coke name, thereby engaging in brand
extension. Packaging smaller portions of chicken for the elderly does not involve
adding another product. Selling Blue Bell ice cream is an example of Kroger
adding to its product mix. Installing an ATM machine involves adding more
services.
Which of the following factors helps a business to determine its product mix?
A. Merchandise breadth and depth C. Staple goods and regular goods
B. Size and target market
D. Seasonal goods and
convenience goods
B
Size and target market
The physical size of a business and its target market help to determine the
product mix. Merchandise breadth and depth refers to the number of lines of a
product and the quantity of each line. Staple goods and regular goods are the
core of a store's merchandise offering. Seasonal goods and convenience goods
are goods carried by a store during particular seasons or those that are bought
frequently.
To appeal to a target market with slightly different needs, a business
decides to add a group of related items to its product mix. This is called a:
A. service expansion.
B. product replacement.
C. line extension.
D. product enhancement.
C
Line extension
The product mix is the particular assortment of goods and services that
a business offers in order to meet its market's needs and its company's
goals. When a business adds additional items to an existing product
line, it is known as a product line extension. When a business develops
a new product to take the place of an older product, it is a product
replacement. Service expansion is adding additional services. A product
enhancement is adding a new feature or benefit to an existing product.
The product mix that a business decides to offer customers helps to
project the business's what?
A. display themes.
B. sales goals.
C. service style.
D. unique image.
D
Unique image
Image is the way something is viewed. Businesses create a certain image in order to
appeal to a specific target market. The business's product mix, the assortment of goods
and services that it offers, helps to project that image. For example, a business that sells
an assortment of expensive, specialty items projects a different image than a business
that sells an assortment of factory-seconds, or distressed goods. The product mix
reinforces each business's unique image. Sales goals are sales objectives that
businesses want to achieve. Businesses often consider sales goals when deciding on a
product mix. The product mix does not help to project a business's service style or display
themes.
One way for a business to expand its product mix is by
A. monitoring its products' life cycles. C. increasing sales quotas.
B. acquiring another company.
D. analyzing product width decisions.
B
Acquiring another company
The product mix is the particular assortment of goods and services that a business
offers in order to meet the needs of its market(s) and its company goals. To meet the
needs of existing customers or to obtain a new segment of the market, a business
might decide to expand its product mix by providing additional goods and services.
One way to add items to a product mix is by acquiring or purchasing another company.
Monitoring products and analyzing decisions are important business activities;
however, they do not expand the business's product mix. Sales quotas are specific
selling goals for members of a business's sales force and increasing them is not a way
to expand the product mix.
When a business expands its product mix, its goal is to appeal to
A.
B.
C.
D.
fewer market segments with fewer product options.
more market segments with a wider variety of options.
existing market segments using more promotion.
select market segments using less promotion.
B
More market segments with a wider variety of options
Product mix is the particular assortment of goods and services that a business
offers to meet the needs of its market(s) and to achieve its goals. Often, the target
market's needs and wants change, so the business must be willing to change its
product mix, so it can remain competitive in the marketplace. One change a
business might make is to expand its product mix. This strategy involves adding
more goods and/or services to its existing product mix in order to appeal to more
market segments. When a business reduces the amount of products it offers to its
target markets, it is using a contraction strategy. After the business makes
decisions about its product mix, it can set its promotional goals.
Due to lackluster sales, the Elba Corporation has decided to eliminate several of
its product lines. Elba's executives hope that by focusing on fewer product lines,
they will see more profit. The Elba Corporation is planning to adjust the _________
of its product mix.
A. depth
B. length
C. width
D. height
C
Width
Elba is planning to adjust the width of its product mix by reducing the
number of product lines that it offers. The length of a product mix is based
on the number of different products or brands that the business offers.
The depth of a product mix is based on variations in each product that the
business offers. The height of a product mix is a fictitious term.
End of 4.04 Questions