A product is best defined as
A) Anything that can be offered to a market to satisfy a want or need
B) A physical item with packaging
C) Only a tangible good
D) A service with no physical form
Answer: A

The three levels of a product include
A) Core, actual, and augmented product
B) Tangible, intangible, and promotional product
C) Basic, standard, and deluxe product
D) Durable, non-durable, and service product
Answer: A

The core benefit of a product represents
A) The basic need or problem-solving benefit
B) The packaging design
C) The distribution channel
D) The pricing strategy
Answer: A

The actual product refers to
A) Brand name, design, and features of the product
B) Post-sale service
C) Psychological value
D) Consumer expectation
Answer: A

The augmented product includes
A) Additional services and benefits beyond the core and actual product
B) Only tangible features
C) The factory price
D) Brand awareness
Answer: A

In Kotler’s classification, consumer products are categorized by
A) Convenience, shopping, specialty, and unsought goods
B) Industrial, commercial, and luxury goods
C) Durable, non-durable, and service products
D) Basic, enhanced, and digital goods
Answer: A

Convenience products are characterized by
A) Frequent purchase and low effort
B) High involvement and comparison
C) Specialized buying effort
D) Long decision-making time
Answer: A

Shopping products are typically
A) Bought frequently and immediately
B) Compared on price, quality, and style before purchase
C) Purchased impulsively
D) Always low-priced
Answer: B

Specialty products are
A) Unique items with strong brand preference and loyalty
B) Frequently purchased convenience goods
C) Standardized industrial goods
D) Low-involvement products
Answer: A

Unsought products are
A) Products consumers do not think about until a need arises
B) Regularly purchased goods
C) Seasonal items
D) Brand-loyal items
Answer: A

Industrial products are classified as
A) Materials and parts, capital items, and supplies
B) Convenience, shopping, specialty, and unsought
C) Core, actual, and augmented
D) High, medium, and low quality
Answer: A

Product mix (or assortment) refers to
A) The set of all product lines offered by a company
B) The size of a single product line
C) The price list of products
D) Product packaging variety
Answer: A

Product line refers to
A) A group of related products under one brand offered by a firm
B) All products of a company
C) Only premium products
D) Competitor’s portfolio
Answer: A

Product line length refers to
A) The number of items in a product line
B) The width of product categories
C) The number of brands in the market
D) The number of competitors
Answer: A

Product line stretching means
A) Adding products beyond the current range
B) Reducing product features
C) Launching seasonal products
D) Creating unrelated offerings
Answer: A

Downward line stretching occurs when
A) A firm introduces lower-priced items
B) A company launches premium versions
C) The company expands horizontally
D) The product line is discontinued
Answer: A

Upward line stretching occurs when
A) A firm adds higher-priced products
B) A company introduces low-end items
C) A firm merges product lines
D) The product life cycle ends
Answer: A

Two-way line stretching means
A) Expanding both upward and downward
B) Removing intermediate products
C) Targeting only luxury markets
D) Segmenting by demographics
Answer: A

Product line filling means
A) Adding items within the existing range
B) Adding entirely new product categories
C) Dropping slow-moving items
D) Reducing shelf space
Answer: A

Product mix width refers to
A) Number of product lines a company offers
B) Depth of each product line
C) Number of versions of a product
D) Number of customers
Answer: A

Product mix depth represents
A) Number of variants within each product line
B) Total number of lines offered
C) Product shelf life
D) Price differentiation
Answer: A

Product consistency refers to
A) How closely related product lines are
B) The number of products sold
C) Brand value
D) Production efficiency
Answer: A

The product life cycle (PLC) has stages
A) Introduction, growth, maturity, and decline
B) Development, expansion, competition, and withdrawal
C) Planning, execution, feedback, and control
D) Launch, test, market, and relaunch
Answer: A

The main challenge in the introduction stage is
A) Creating awareness and stimulating trial
B) Maximizing profits
C) Managing decline
D) Product elimination
Answer: A

In the growth stage, marketing efforts focus on
A) Brand preference and market share expansion
B) Cost-cutting
C) Reducing advertising
D) Retrenchment
Answer: A

The maturity stage is characterized by
A) Slow sales growth and intense competition
B) No competitors
C) Declining sales only
D) Price insensitivity
Answer: A

Decline stage strategy involves
A) Harvesting, divesting, or rejuvenating products
B) Aggressive expansion
C) Introducing new variants
D) Continuous R&D investment
Answer: A

Product differentiation aims to
A) Make a product stand out from competitors
B) Reduce prices
C) Standardize offers
D) Focus only on mass production
Answer: A

Product positioning refers to
A) The place a product occupies in consumers’ minds
B) Physical shelf location
C) Warehouse arrangement
D) Geographic distribution
Answer: A

Branding plays a key role in product strategy because it
A) Creates recognition, loyalty, and perceived value
B) Only affects packaging
C) Reduces quality variance
D) Eliminates competitors
Answer: A

Packaging serves which of the following functions?
A) Protection, promotion, and convenience
B) Only aesthetic appeal
C) Legal compliance only
D) Cost reduction
Answer: A

Labeling provides
A) Product information and legal details
B) Advertising slogans
C) Pricing strategy
D) Distribution details
Answer: A

The product hierarchy in Kotler’s framework includes
A) Need family, product class, product line, product type, item
B) Core, actual, augmented product
C) Specialty, convenience, shopping goods
D) Industrial and consumer products
Answer: A

A durable good is characterized by
A) Long-lasting use and infrequent purchase
B) Quick consumption
C) Perishability
D) Intangibility
Answer: A

A non-durable good is
A) Consumed quickly and bought frequently
B) Used for long-term investment
C) High involvement product
D) Luxury item
Answer: A

Service products are unique because they are
A) Intangible, variable, inseparable, and perishable
B) Easily storable
C) Mass-produced goods
D) Free from competition
Answer: A

The new product development (NPD) process begins with
A) Idea generation
B) Market testing
C) Commercialization
D) Product design
Answer: A

Idea screening aims to
A) Evaluate and select promising ideas
B) Generate multiple random ideas
C) Conduct final product testing
D) Set pricing
Answer: A

The stage following idea screening is
A) Concept development and testing
B) Commercialization
C) Market rollout
D) Product elimination
Answer: A

Concept testing involves
A) Presenting the product idea to potential buyers for feedback
B) Producing prototypes
C) Market launch
D) Sales forecasting
Answer: A

Business analysis in NPD includes
A) Estimating costs, sales, and profits
B) Advertising campaigns
C) Prototype design
D) Price testing
Answer: A

Test marketing refers to
A) Introducing the product in a limited market to gauge response
B) National advertising
C) Packaging design
D) Patent registration
Answer: A

The final stage of NPD is
A) Commercialization
B) Product screening
C) Concept refinement
D) Market research
Answer: A

Product quality can be defined as
A) The ability of a product to perform its functions
B) Its packaging attractiveness
C) The price level
D) Brand awareness
Answer: A

Continuous innovation represents
A) Small, gradual improvements to existing products
B) Completely new inventions
C) Radical breakthroughs
D) Cost elimination
Answer: A

Discontinuous innovation refers to
A) New-to-the-world products creating major changes in consumer behavior
B) Slight upgrades
C) Brand extensions
D) Seasonal offers
Answer: A

Product design integrates
A) Functionality, aesthetics, and user experience
B) Only technical specifications
C) Market segmentation
D) Supply chain metrics
Answer: A

Product testing is crucial to
A) Ensure performance, safety, and consumer acceptance
B) Set advertising budget
C) Plan packaging
D) Measure brand loyalty
Answer: A

Product elimination strategy focuses on
A) Dropping unprofitable or obsolete products
B) Expanding product lines
C) Creating new variants
D) Increasing price
Answer: A

The ultimate goal of product design and management is
A) Delivering superior value and sustained market growth
B) Reducing cost only
C) Copying competitor strategies
D) Minimizing employee turnover
Answer: A

The most critical factor for new-product success is
A) Strong customer value proposition
B) High advertising budget
C) Low manufacturing cost
D) Attractive packaging
Answer: A

The major reason for new-product failure is
A) Poor market research and lack of differentiation
B) Excessive R&D funding
C) High brand equity
D) Adequate pricing
Answer: A

The innovation diffusion process includes
A) Awareness, interest, evaluation, trial, adoption
B) Design, launch, growth, decline, renewal
C) Planning, testing, rollout, decline, exit
D) Research, pricing, branding, promotion, delivery
Answer: A

The group most likely to adopt innovations first is
A) Innovators
B) Early majority
C) Late majority
D) Laggards
Answer: A

The last group to adopt new products are
A) Laggards
B) Innovators
C) Early adopters
D) Pragmatists
Answer: A

The early adopters are important because
A) They influence later buyers and spread word-of-mouth
B) They represent mass-market sales
C) They prefer price discounts only
D) They avoid innovations
Answer: A

The adoption process explains
A) How consumers move from awareness to regular use
B) How firms develop new ideas
C) How distribution works
D) How prices are fixed
Answer: A

The product hierarchy shows relationship among
A) Need family → Product class → Product line → Item
B) Manufacturer → Retailer → Consumer
C) Design → Production → Sales
D) Price → Promotion → Placement
Answer: A

A product system consists of
A) A group of related items functioning as a whole
B) A single SKU
C) A brand line only
D) The company’s entire portfolio
Answer: A

Product styling concerns
A) The appearance and aesthetic aspects of design
B) The technical function only
C) Distribution structure
D) Pricing policy
Answer: A

A feature in product planning refers to
A) A characteristic that delivers functional benefit
B) The packaging label
C) The brand image
D) The distribution route
Answer: A

Performance quality means
A) The product’s ability to perform its intended function
B) Its visual appeal
C) The service guarantee
D) The distribution cost
Answer: A

Conformance quality means
A) Meeting the design and performance specifications consistently
B) High pricing
C) Stylish appearance
D) Promotional variety
Answer: A

A style in product terms refers to
A) A distinctive appearance that lasts but may not improve performance
B) Functional innovation
C) Technological breakthrough
D) Temporary fad
Answer: A

A fashion reflects
A) A currently accepted or popular style in a given field
B) Long-term technological change
C) Industrial standard
D) Unchanging taste
Answer: A

A fad is characterized by
A) Sudden popularity followed by rapid decline
B) Sustained market growth
C) Long adoption cycle
D) Continuous innovation
Answer: A

Product design influences
A) Function, look, and user experience
B) Only cost structure
C) Only color and packaging
D) Distribution channel
Answer: A

Customer-driven design starts with
A) Understanding unmet consumer needs
B) Minimizing R&D cost
C) Internal efficiency metrics
D) Copying competitors
Answer: A

Mass customization means
A) Delivering tailor-made products efficiently at scale
B) Producing identical goods for all
C) Personal sales for elites
D) One-off prototypes
Answer: A

Brand equity contributes to product management by
A) Enhancing perceived value and differentiation
B) Replacing quality control
C) Lowering customer loyalty
D) Reducing innovation need
Answer: A

Product strategy decisions include
A) Product attributes, branding, packaging, labeling, support services
B) Price discounts and promotion
C) Channel margins only
D) Sales force size
Answer: A

Product attributes determine
A) The product’s performance and positioning
B) The firm’s ownership pattern
C) The promotional budget
D) Legal compliance
Answer: A

The core product level corresponds to
A) The fundamental benefit customers seek
B) Packaging design
C) Advertising strategy
D) Distribution network
Answer: A

Product augmentation aims to
A) Add benefits that enhance value beyond expectations
B) Lower quality
C) Remove differentiation
D) Increase production only
Answer: A

Service differentiation can supplement tangible products by
A) Adding warranties, training, and after-sales support
B) Reducing features
C) Eliminating customization
D) Limiting quality control
Answer: A

Brand repositioning within a product strategy involves
A) Changing target market or brand perception
B) Dropping the product
C) Reducing service quality
D) Imitating competitors
Answer: A

Product warranty serves to
A) Reduce perceived risk and build trust
B) Increase price sensitivity
C) Limit after-sales service
D) Create inventory
Answer: A

The goal of product portfolio management is
A) Maximize overall profitability and strategic balance
B) Expand channels only
C) Limit diversification
D) Focus on one item
Answer: A

Product cannibalization occurs when
A) A new product reduces sales of an existing one
B) Competitors copy design
C) Distribution fails
D) Price wars begin
Answer: A

Product pruning means
A) Eliminating low-profit or obsolete items
B) Adding new variants
C) Extending product lines
D) Lowering prices
Answer: A

A product map helps
A) Identify gaps and opportunities in a firm’s offerings
B) Determine advertising frequency
C) Set wages
D) Manage inventory
Answer: A

The BCG matrix classifies products based on
A) Market growth rate and relative market share
B) Product quality and cost
C) Price and promotion
D) Demand and supply
Answer: A

In the BCG matrix, Stars represent
A) High-growth, high-share products needing heavy investment
B) Low-growth, low-share products
C) Mature products only
D) Declining brands
Answer: A

Cash Cows in the BCG matrix are
A) Mature, high-share products generating strong cash flow
B) New risky products
C) Loss leaders
D) Low-margin items
Answer: A

Dogs in the BCG matrix indicate
A) Low-growth, low-share items
B) Emerging markets
C) High-profit brands
D) Innovative stars
Answer: A

Question Marks (Problem Children) represent
A) High-growth, low-share products needing careful investment
B) Cash-rich brands
C) Declining segments
D) Low-growth, high-share items
Answer: A

Product obsolescence results from
A) Technological advances or changing preferences
B) High demand
C) Strong loyalty
D) Legal protection
Answer: A

Planned obsolescence means
A) Designing products with a limited useful life to encourage repurchase
B) Eliminating innovation
C) Extending warranties
D) Focusing on services
Answer: A

Eco-design (Green design) focuses on
A) Reducing environmental impact throughout product life cycle
B) Maximizing short-term profit
C) Using only luxury materials
D) Ignoring disposal
Answer: A

Modular design allows
A) Easy customization and repair through interchangeable parts
B) One-size-fits-all manufacturing
C) Higher complexity
D) No variation
Answer: A

Industrial design adds value through
A) Aesthetic form and user ergonomics
B) Reducing R&D cost
C) Limiting appeal
D) Mass advertising
Answer: A

Product testing before launch helps
A) Identify defects and ensure customer acceptance
B) Increase time to market
C) Replace marketing
D) Reduce brand equity
Answer: A

Product adoption rate depends on
A) Relative advantage, compatibility, complexity, divisibility, communicability
B) Price only
C) Promotion spend
D) Geographic spread
Answer: A

The relative advantage of a new product is
A) The degree to which it is perceived as better than existing alternatives
B) Its price elasticity
C) Its warranty length
D) Its packaging design
Answer: A

Compatibility affects adoption when
A) Product fits existing habits and lifestyles
B) It requires radical behavioral change
C) It’s complex
D) It’s perishable
Answer: A

Complexity in adoption means
A) Difficulty in understanding or using the product
B) Price sensitivity
C) Availability in stores
D) Lack of variety
Answer: A

Trialability influences adoption because
A) Easier trial increases likelihood of purchase
B) It discourages early users
C) It lowers awareness
D) It delays commercialization
Answer: A

Observability encourages adoption when
A) Product benefits are visible to others
B) It is used privately
C) It’s hidden or intangible
D) It’s costly
Answer: A

The PLC extension strategies include
A) Product modification, market modification, repositioning
B) Advertising cuts
C) Channel reduction
D) Price increases only
Answer: A

The ultimate goal of product management is
A) Eliminating variety
B) Reducing brand equity
C) Delivering continuous innovation and customer value profitably
D) Maximizing short-term sales
Answer: C

The central focus of product strategy is
A) Creating customer value and satisfaction
B) Reducing marketing costs
C) Increasing production only
D) Limiting product availability
Answer: A

The process of managing existing products to sustain profitability is known as
A) Product life-cycle management
B) Market segmentation
C) Brand switching
D) Product diffusion
Answer: A

The key task in the introduction stage of the PLC is
A) Building awareness and trial
B) Maximizing profit
C) Cutting costs
D) Reducing distribution
Answer: A

In the growth stage, successful firms focus on
A) Market share expansion and brand preference
B) Product withdrawal
C) Price skimming
D) Internal auditing
Answer: A

In the maturity stage, marketing emphasis shifts toward
A) Differentiation and finding new uses
B) Reducing product lines
C) Eliminating advertising
D) Limiting distribution
Answer: A

The decline stage is managed through
A) Harvesting or product deletion strategies
B) Heavy investment in R&D
C) Rapid diversification
D) Expanding production
Answer: A

A good product strategy aligns with
A) Corporate goals and customer expectations
B) Production staff only
C) Competitor design
D) Supplier preferences
Answer: A

The core value proposition in product design is
A) The bundle of benefits that customers expect
B) The physical appearance
C) The warranty duration
D) The price list
Answer: A

Product management aims to balance
A) Market needs, company resources, and competition
B) Pricing and labor costs
C) Sales and advertising
D) Design and packaging only
Answer: A

Feature fatigue occurs when
A) Too many features confuse or overwhelm users
B) Products have no differentiation
C) Services are intangible
D) Prices are too low
Answer: A

Customer value hierarchy in Kotler’s view includes
A) Core benefit, basic product, expected product, augmented product, potential product
B) Production, promotion, distribution, consumption, disposal
C) Awareness, interest, desire, action, loyalty
D) Development, growth, maturity, decline, revival
Answer: A

The expected product includes
A) Attributes buyers normally expect when purchasing
B) Experimental features
C) Core benefits only
D) Intangible symbolism
Answer: A

The potential product refers to
A) Future augmentations or transformations the product might undergo
B) The base model only
C) Finished product version
D) Cost estimates
Answer: A

A product mix width expansion means
A) Adding new product lines
B) Adding more variants to a single line
C) Dropping unprofitable items
D) Narrowing offerings
Answer: A

A product mix depth expansion means
A) Adding variants within existing lines
B) Adding new lines entirely
C) Reducing versions
D) Limiting services
Answer: A

Product line consistency ensures
A) Common end use, production requirements, or distribution channels
B) Unrelated diversification
C) Independent branding
D) Different technology bases
Answer: A

Product differentiation can be achieved through
A) Form, features, performance, style, design
B) Pricing only
C) Advertising alone
D) Distribution network
Answer: A

Form differentiation relates to
A) Physical shape or size of the product
B) Customer service
C) Distribution reach
D) Brand positioning
Answer: A

Performance quality sets
A) The level at which the product’s primary functions operate
B) Packaging cost
C) Price discount
D) Channel efficiency
Answer: A

Durability as an attribute means
A) The expected operating life under normal use
B) The weight of packaging
C) Ease of purchase
D) Emotional appeal
Answer: A

Reliability refers to
A) The probability that a product will function as promised over time
B) Frequency of innovation
C) Market stability
D) Variety offered
Answer: A

Repairability in design indicates
A) Ease and cost of fixing product defects
B) Resistance to wear
C) Visual appeal
D) Recyclability
Answer: A

Style contributes to
A) Aesthetic appearance and buyer preference
B) Product safety
C) Cost efficiency
D) Standardization
Answer: A

Customization enhances
A) Individual customer satisfaction and loyalty
B) Production standardization
C) Market homogeneity
D) Inventory size
Answer: A

Brand strategy decisions are vital in product management because
A) Brands create identity and differentiation in the market
B) Brands reduce advertising
C) Brands remove legal risk
D) Brands replace distribution
Answer: A

Product classification assists managers in
A) Designing appropriate marketing strategies for each type
B) Legalizing patents
C) Setting taxes
D) Reducing costs
Answer: A

Consumer goods differ from industrial goods primarily by
A) The purpose of purchase
B) Distribution method
C) Quality level
D) Price range
Answer: A

Industrial goods are used
A) To produce other goods or services
B) For personal consumption
C) For resale to consumers directly
D) For entertainment
Answer: A

Raw materials belong to which industrial category?
A) Materials and parts
B) Capital items
C) Supplies
D) Accessories
Answer: A

Capital items include
A) Long-lasting goods used in production like machinery
B) Office stationery
C) Disposable goods
D) Consumer durables
Answer: A

Supplies and business services refer to
A) Short-term goods that facilitate production
B) Heavy machinery
C) High-priced durables
D) Core raw materials
Answer: A

Product systems provide
A) A group of complementary products sold together
B) Individual single-use goods
C) Core raw materials
D) Commodities
Answer: A

Platform products serve as
A) A common design base for multiple variants
B) Stand-alone prototypes
C) Services only
D) Low-end versions
Answer: A

Product bundling offers
A) Two or more products combined at one price
B) Discounts for bulk orders only
C) One product at multiple prices
D) Identical substitutes
Answer: A

Pure bundling means
A) Products are available only as a package
B) Customers can buy items separately
C) Product customization
D) Optional features
Answer: A

Mixed bundling means
A) Items are sold both individually and as a bundle
B) Only bundled purchase allowed
C) Items are intangible
D) Product discounts banned
Answer: A

Product modification strategies involve
A) Changing quality, features, or style to extend life cycle
B) Eliminating advertising
C) Reducing warranty
D) Merging brands
Answer: A

Quality modification aims at
A) Improving durability or reliability
B) Lowering production cost
C) Reducing features
D) Simplifying packaging
Answer: A

Feature modification targets
A) Adding new attributes or functions
B) Eliminating options
C) Raising prices
D) Reducing warranty
Answer: A

Style modification focuses on
A) Changing aesthetics without altering performance
B) Adding new functions
C) Increasing capacity
D) Reducing quality
Answer: A

Repositioning is done when
A) Existing image or target market becomes less relevant
B) Sales are increasing
C) Product is discontinued
D) Costs decline
Answer: A

Product differentiation map shows
A) How consumers perceive competing products
B) Internal cost structures
C) Manufacturing layout
D) Pricing grids
Answer: A

Product testing phase ensures
A) Customer acceptance before large-scale launch
B) Post-purchase service
C) Employee satisfaction
D) Pricing approval
Answer: A

Commercialization decisions involve
A) Timing, location, and scale of launch
B) Advertising slogans only
C) Warranty clauses
D) Packaging colors
Answer: A

A brand extension under product strategy means
A) Using an existing brand name for a new category
B) Launching a new brand name
C) Changing packaging only
D) Reducing service support
Answer: A

Line extension differs because
A) It adds variants within the same category under the same brand
B) It creates a new category
C) It changes ownership
D) It ends the brand
Answer: A

Product adaptation in global markets means
A) Modifying product features to suit local conditions
B) Maintaining uniform design globally
C) Reducing quality
D) Centralizing production
Answer: A

Standardization in product design leads to
A) Economies of scale and brand consistency
B) Local responsiveness
C) Increased complexity
D) Reduced productivity
Answer: A

Localization strategy emphasizes
A) Adapting to cultural and regional differences
B) Keeping identical global versions
C) Eliminating local input
D) Uniform pricing worldwide
Answer: A

The final objective of product design and management is
A) Delivering sustained value innovation and profitability
B) Cost minimization alone
C) Competitive imitation
D) Temporary sales boosts
Answer: A