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Which of the following statements is true of product lines?    a.   They limit the product...

Which of the following statements is true of product lines?
   a.   They limit the product choices offered to customers to one or two product items.
   b.   They provide economies of scale in advertising.
   c.   They require greater transportation and warehousing costs than product items.
   d.   They increase a firm's manufacturing and inventory costs.

Which of the following statements is true of convenience products?
   a.   They are shopping products that are not actively sought after by consumers.
   b.   A consumer is unwilling to shop extensively for convenience products.
   c.   A consumer is unwilling to accept other substitutes for convenience products.
   d.   They are shopping products that are perceived to be similar in features.

Solutions

Expert Solution

Product line is the total of all the products offered by a company under one single brand. A company can market its offerings by incurring less expenditures via promoting same products in single promotional activity. For example, different variants of a soap can be promoted in a same television advertisement. Thus, helps a company to save money via economies of scale in advertising.

Hence, option b. is the right answer.

A convenience product is the one for purchasing which a customer makes very little effort. Also, such products are bought by the customer very frequently.

A person can purchase convenience goods depending on the criticality of their need. They can switch to other related products if their usual product is not present. For example, a person can buy coffee from either Starbucks or Mc Donald’s depending on the availability and nearness.

Thus, the correct answer is option d. i.e. they are shopping products that are perceived to be similar in features.

jeff jeffy answered 2 years ago
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