Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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What
does PLC stand for? a. | Product Lease Conditions. | c. | Product Loading Calculation. | b. | Product Life
Cycle. | | | | |
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2.
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If a
product is in the Introduction stage, what would you expect the profit to be? a. | High.
| c. | Negative. | b. | Low. | | | | |
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3.
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A
product with a rapid growth and a large share of the market is called: a. | A dog.
| c. | A problem
child. | b. | A star. | | | | |
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4.
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A
product which has steady sales in a mature market is called: a. | A
dog. | c. | A cash
cow. | b. | A star.
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5.
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A
product with a large share of a shrinking market is called: a. | A
dodo. | c. | A
dog. | b. | A
warhorse. | | | | |
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6.
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Which
of the following is NOT a risk category in services purchasing? a. | Consequential
loss. | c. | Misapplication. | b. | Misunderstanding. | | | | |
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7.
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Which
of the following is true? a. | Service customers are less likely to use indirect measures of
quality. | c. | Involvement
tends to be greater in service markets. | b. | Service customers are more likely to switch service providers
than to scitch physical product suppliers. | | | | |
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8.
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Which
of the following is NOT one of the extra three Ps added by Booms and Bitner? a. | Price. | c. | Process. | b. | People. | | | | |
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9.
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The
decor in a restaurant would be an example of: a. | Process. | c. | Price. | b. | Physical
evidence. | | | | |
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10.
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Which
of the following is NOT true? a. | The increasing costs of manufacture in Western Europe are
causing a switch away from service industries. | c. | Providing extra services is a way for manufacturers to
differentiate themselves. | b. | The inability to manufacture cheaply is causing a switch
towards service orientation. | | | | |
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11.
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Which
of the following is NOT true? a. | Packaging protects the contents from the
environment. | c. | Packaging is
always thrown away after unpacking the product. | b. | Packaging can
add value to the product. | | | | |
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12.
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A
good with no service element attached to it is called: a. | Pure tangible
good. | c. | Product. | b. | Hybrid. | | | | |
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13.
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Perishability of a service means that: a. | Managers must
try to create stockpiles. | c. | Managers must
deskill the process. | b. | Managers must try to match supply and
demand. | | | | |
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14.
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Which
of the following is NOT a problem with matrix analysis? a. | The matrix
provides a spurious credibility. | c. | The matrix leads firms to drop
products. | b. | The matrix leads firms to concentrate on
growth. | | | | |
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15.
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Which
of the following is true? a. | Products in the decline stage of the PLC are losing
money. | c. | Products in the
growth stage of the PLC are losing money. | b. | Products in the maturity stage of the PLC are making
money. | | | | |
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