Chapter 12 and 13

The three major ways to modify a product include a. Styling, product features, and product design b. Aesthetic, quality, and functional changes c. Extensions, generations, and upgrades d. Color, size, and quantity modifications e. Quality, quantity, and design

Aesthetic, quality, and functional changes

Product deletion can best be described as the process of deleting a product from the product mix when it a. No longer satisfies a sufficient number of customers b. Is perceived as a failure by top management c. Increases production costs and decreases profits d. No longer responds to promotional efforts e. Is reviewed negatively by a systematic review board

No longer satisfies a sufficient number of customers

When service companies change high-contact services into low-contact services, the a. service becomes less personalized b. quality of the service declines c. service becomes less standardized d. service becomes more expensive to deliver e. Time required to deliver the services increases

Service becomes less personalized

Which of the following is the best example of a functional modification? a. Campbell's puts more of a higher-grade chicken in its classic chicken noodle soup b. Friskies changes the ingredients in its cat food to a taste that is preferred by most cats c. Motorola uses a battery that allows its cell phones to charge back up more quickly d. The manufacturer of the primer and sealer, Kilz, introduces an odorless variety e. A smoke alarm is modified to be more sensitive to smoke at farther distances

A smoke alarm is modified to be more sensitive to smoke at farther distances

Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Morgan is able to evaluate the __________ modifications to the sofa, but not the __________ . a. Functional; aesthetic b. Quality; aesthetic c. Functional; quality d. Aesthetic; quality e. Aesthetic; functional

Aesthetic; functional

One disadvantage of test marketing a new product is that a. The results give little indication of the product's future success b. Price, advertising, and packaging cannot be varied from market to market c. Competitors may copy the product d. The product is distributed on a regional basis e. It might fail before it can be commercialized

Competitors may copy the product

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called a. Screening b. Idea analysis c. Test marketing d. Customer response testing e. Concept testing

Concept testing

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when a. Consumers perceive all products in a market to have essentially the same quality, design, and features b. Consumers are willing to pay for product support services c. The company introduces a new product d. The quality of the company's product is inferior to the quality of competing products e. The company's price are higher than the competition's

Consumers perceive all products in a market to have essentially the same quality, design, and features

The members of a venture team (sometimes referred to as a cross-functional team) come from a. The production and finance departments b. The marketing department c. A consulting firm d. The research and development department e. Different functional areas of an organization

Different functional areas of an organization

All of the following are major steps in developing new products except a. Evaluation of competitors' efforts b. Test marketing c. Idea generation d. Business analysis e. Screening

Evaluation of competitors' efforts

A run-out policy of product deletion a. Lets the product decline without changing the product strategy b. Is an immediate-drop decision c. Exploits any strengths left in the product d. Occurs when production cannot keep pace with demand because of material shortages e. Raises the price of the product continually to secure as much profit as possible before the product is priced out of the market

Exploits any strengths left in the product

services have basic characteristics: Intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and a. Specialization b. Orientation toward value c. Heterogeneity d. Labor-intensiveness e. Homogeneity

Heterogeneity

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of a. Aesthetic modifications b. Product modifications c. Functional modifications d. Product lining e. Line extensions

Line extensions

Service industries account for ____ of the gross domestic product of most developed nations a. A small portion b. Nearly all c. More than half d. Approximately 25 percent e. Nearly three-quarters

Nearly three-quarters

A brand manager in a multi product firm would be responsible for a. Branding the products of the firm b. All brands made by the firm c. All brands within a product line d. Performance of a specific brand e. All product in the brand-line group

Performance of a specific brand

Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. In addition, Schwinn has added several new features to its bike that are attractive to individuals who work as "bike messengers" in large, urban cities. Since no other company makes a bike that has these specific attributes, Schwinn is creating a. Product differentiation b. A commercialization c. Product positioning d. Level of quality e. Consistency of quality

Product differentiation

Three major ways in which marketers engage in product differentiation are a. Product quality, product design and features, and product support services b. Product quality, product support services, and packaging c. Product positioning, product quality, and product management d. Product support services, product design and features, and product positioning e. Product positioning, product design and features, and product promotion

Product quality, product design and features, and product support services

Because practically all marketers provide some services, ___ typically do not exist in today's business environment a. Tangible-dominant product b. Customer services c. Pure Service d. Pure goods e. Service products

Pure goods

A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a __________ for its new variety of Doritos. a. Multi-stage introduction b. Mass commercialization c. Test-market expansion d. Trickle-down approach e. Roll-out approach

Roll-out approach

Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many __________ qualities. a. Credence b. Experience c. Intangible d. Search e. Assurance

Search

All of the following are elements of the inseparability characteristic of services except that a. Centralized mass production is difficult b. Consumption and production are simultaneious c. consumers are involved in production d. many services cannot be performed without the customer being present e. services are easy to standardize and control

Services are easy to standardize and control

Which of the following is the best definition of product features? a. The thing a product does that provide benefits to the customer b. The physical appearance of a product c. How a product is conceived, planned, and produced with the necessary functions d. Specific design characteristics that allow a product to perform certain tasks e. Mechanical efforts or activities a company provides that add value to a product

Specific design characteristics that allow a product to perform certain tasks

Select the true statement concerning test marketing a. Test marketing is a limited introduction of the product in areas chosen to represent the intended market b. Large corporations usually launch test-marketing efforts in one small area at a time c. Test marketing is simply an extension of the screening and developing stages d. If the product is successful in the test market, then it is ensured of success upon total introduction e. Test marketing should be conducted after all the marketing mix variables have been finalized

Test marketing is a limited introduction of the product in areas chosen to represent the intended market

The major drawback to using aesthetic modifications is a. The cost of the modifications b. A possible decrease in market share c. The need for redesign of the product d. That there is no differentiation for the products in the market e. That the value of the modification is determined subjectively

That the value of the modification is determined subjectively

In product modification, the first issue to consider is whether a. Modification will make the product more consistent with customers' desire b. Quality is modified c. Modification will provide greater satisfaction to the consumer d. Existing customers can perceive that a product modification has been made e. The product is modifiable

The product is modifiable

Why are line extensions more common than new products? a. They require no market research b. They are guaranteed to succeed in the marketplace c. They are higher risk and more expensive d. Modifications to existing products are very easy e. They are less expensive and lower-risk

They are less expensive and lower-risk

In general, differences between goods and services are determined by the a. degree of labor intensiveness b. type of provider c. degree of tangibility d. type of target market e. degree of consumer contact

degree of tangibility

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the _____________ characteristic of services. a. Perishability b. Heterogeneity c. Inseparability d. customer service e. intangibility

intangibility