CHP 12 MKTG
Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during a) commercialization. b) screening. c) concept testing. d) product development. e) test marketing.
d
Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called a) business analysis. b) immediate drop. c) screening. d) phase out. e) runout.
d
T F Brand and product managers operate cross-functionally.
t
T F Business analysis provides a tentative sketch of a product's profitability.
t
T F Relatively few product ideas are put into the product development stage.
t
T F There is no best approach to managing products.
t
T F Time spent in test marketing can benefit a firm's competitors.
t
The test-marketing stage a) is an extension of the screening stage. b) should come immediately after business analysis. c) ensures that the product will not fail. d) is a sample launching of the entire marketing mix. e) prevents competitors from copying the product.
d
T F An important question in the business analysis stage of new-product development is, "Will this product meet our profit goal?"
t
Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ___________ modification. a) functional b) quality c) product extension d) brand e) aesthetic
e
Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization? a) Aesthetic b) Operational c) Benefit d) Functional e) Quality
e
T F Estimates of sales are an important component of business analysis.
t
T F Test marketing is a sample launching of the entire marketing mix.
t
T F The sum of all the product's physical characteristics is called product quality.
t
T F To manage products effectively, the product manager must be independent of other departments.
f
T F Functional modifications usually require that the product be redesigned.
t
One disadvantage of test marketing a new product is that a) the product is distributed on a regional basis. b) competitors may copy the product. c) the results give little indication of the product's future success. d) price, advertising, and packaging cannot be varied from market to market. e) it might fail before it can be commercialized.
b
"How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development. a) commercialization b) concept testing c) business analysis d) product development e) test marketing
d
After a company has created a prototype during the product development stage, its performance, or ___________ must be tested. a) appeal to customers b) dependability c) durability d) functionality e) pricing
d
Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of a) product modifications. b) functional modifications. c) aesthetic modifications. d) line extensions. e) product lining.
d
If 7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a ____ deletion strategy. a) run-out b) immediate drop c) slow-down d) phase-out e) drop-down
d
If Ford adds a driver-side sliding door, side impact airbags, and a small television with DVD player to its Freestar Minivan, it is differentiating its product based on a) styling. b) support services. c) design. d) product features. e) product quality.
d
Kyle Bolger of U.S. Hospital Supply Corporation has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Kyle's job is that of a(n) a) product manager. b) area manager. c) director of operations. d) market manager. e) sales coordinator.
d
PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink? a) There are research and audit services available. b) Retailers would be cooperative. c) Testing efforts would not be easily jammed by competitors. d) Tourism is a major industry in the area. e) The city has stable year-round sales of soft drinks.
d
The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is a) test marketing. b) commercialization. c) concept testing. d) product development. e) business analysis.
d
Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process. a) test marketing b) business analysis c) concept testing d) product development e) commercialization
e
When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's a) positioning. b) level and consistency of quality. c) ability to meet customer service needs. d) design, styling, and level of quality. e) design, styling, and features.
e
T F Venture team members usually come from the same functional areas within the firm.
f
A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n) a) evaluation study. b) formal evaluation. c) product inspection. d) systematic review. e) reassessment examination.
d
To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when a) the company's prices are higher than the competition's. b) the company introduces a new product. c) consumers are willing to pay for product support services. d) consumers perceive all products in a market to have essentially the same quality, design, and features. e) the quality of the company's products is inferior to the quality of competing products.
d
___________ and ___________ are important characteristics of quality for consumer markets, and ___________ and ___________ are important characteristics of quality for business markets. a) Reliability/ease of use; technical suitability/ease of repair b) Technical suitability/reasonable price; trusted brand name/ease of repair c) Durability/technical suitability; company reputation/ease of repair d) Ease of maintenance/company reputation; durability/technical suitability e) Trusted brand name/ease of repair; reliability/company reputation
d
T F The phase-out approach to product deletion exploits any strengths left in the product.
f
T F Systematic reviews of a company's product mix aid in determining when product deletion is necessary.
t
T F New-product development does not include planning for advertising.
f
T F How a pair of jeans looks, regardless of the price, is an example of styling.
t
T F The major drawback in using aesthetic modifications is that their value is determined subjectively.
t
T F The product development stage determines the technical feasibility of producing the new product.
t
T F The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.
f
T F Product managers can be responsible for a single product, a product line, or several products.
t
Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ___________ stage of the new-product development process. a) business analysis b) commercialization c) screening d) test marketing e) product development
d
Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ___________ phase. a) idea generation b) concept testing c) business analysis d) screening e) test marketing
d
T F Line extensions are less common than other new products because line extensions are more expensive and more risky.
f
T F New products are classified solely as innovations that have never been sold by any organization.
f
T F Product managers are most useful in the development of new products.
f
When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n) a) brand extension. b) product deletion. c) aesthetic modification. d) market extension. e) functional modification.
e
T F Functional modifications help an organization achieve and maintain a progressive image.
t
T F Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.
f
T F Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development
f
T F Product design is the process of creating and designing products so that consumers perceive them as different from competing products.
f
T F Product support services are important mainly for products that are mechanical in nature.
f
T F The majority of new-product projects initiated by major companies reach the commercialization stage.
f
T F The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence.
f
T F Designing a product that customers perceive as different from competing products is an example of product differentiation.
t
T F During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.
t
T F If you buy McDonald's French fries in Fort Collins, Colorado, and later buy McDonald's French fries in College Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.
t
Changes that affect a product's versatility, effectiveness, convenience, or safety are called ___________ modifications. a) functional b) formal c) aesthetic d) quality e) package
a
Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ___________ modifications. a) aesthetic b) functional c) operational d) quality e) feature
a
Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing
a
Early in the commercialization phase, marketers must make decisions about a) warranties, repairs, and replacement parts. b) product features and breakeven points. c) functionality, safety, and convenience. d) the proposed marketing mix variables. e) which ideas to further pursue.
a
Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) __________ at their company. a) venture team b) SWAT team c) brand management group d) idea generation group e) product positioning group
a
Quality modifications are changes that relate to a product's a) dependability and durability. b) effectiveness and versatility. c) price and availability. d) reliability and value. e) value and durability.
a
The ability of a product to provide the same level of quality over time is called a) consistency. b) longevity. c) variability. d) status. e) image.
a
A(n) ___________ is the development of a product that is closely related to one or more products in the existing product line but is designed specifically to meet somewhat different needs of customers. a) product modification b) line extension c) quality modification d) functional development e) aesthetic extension
b
All of the following are major steps in developing new products except a) test marketing. b) evaluation of competitors' efforts. c) screening. d) business analysis. e) idea generation.
b
Competitive interference with a test-marketing program is called a) tactical interference. b) jamming. c) test interference. d) squeezing. e) ramming.
b
If Hewlett-Packard provides its customers with a help line for computer questions and problems, it is differentiating itself through a) support of its level of quality. b) product support services. c) a help line feature. d) product features. e) customer requests.
b
Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the __________ phase of the new-product development process. a) screening b) test marketing c) product development d) business analysis e) idea generation
b
Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of _____ is relative or difficult to describe without a basis of comparison. a) consistency of quality b) level of quality c) differentiation d) product features e) product positioning
b
Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing
b
T F A runout approach to product deletion lets the product decline without changing the marketing strategy.
f
T F Concept testing gives reliable feedback, but at a relatively high cost.
f
T F Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.
f
T F Sales personnel are an external source for new product ideas.
f
. T F The decision to drop a product should always be a unanimous decision of the management team.
t
T F A brand manager is a type of product manager.
t
T F A venture team has the authority to execute plans for the development of products.
t
T F Automobile makers rely heavily on aesthetic modifications.
t
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and a) modification should make the product more consistent with customers' desires. b) competing companies should not be aware of planned product modifications. c) modification should change customers' desires to provide greater satisfaction. d) management must perceive the modification as a reasonable and necessary action. e) production costs and materials needed should be limited.
a
Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during a) concept testing. b) product development. c) screening. d) idea generation. e) test marketing.
a
Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting department. His present position can be described as a a) product manager. b) brand manager. c) general manager. d) member of a venture team. e) market manager.
d
Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n) a) aesthetic modification. b) line extension. c) material adjustment. d) functional modification. e) quality modification.
e
Functional modifications usually require that the product be a) less specific. b) limited to its functions. c) more appealing. d) more technical. e) redesigned.
e
T F Functional modifications make an existing product more durable.
f
T F Venture teams work outside of established organization divisions.
t
A brand manager in a multiproduct firm would be responsible for a) performance of a specific brand. b) all brands within a product line. c) branding the products of the firm. d) all products in the brand-line group. e) all brands made by the firm.
a) performance of a specific brand.
Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ___________, whereas Katie apparently based her decision on ___________. a) price; product quality b) real product differences; perceived product image c) perceived product image; product quality d) product value; perceived product image e) product design; product quality
b
If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of a) a brand extension. b) line extension. c) functional modification. d) quality modification. e) a new-to-the-world product.
b
In product modification, the first issue to consider is whether a) existing customers can perceive that a product modification has been made. b) the product is modifiable. c) quality is modified. d) modification will make the product more consistent with customers' desires. e) modification will provide greater satisfaction to the consumer.
b
Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process? a) Idea generation b) Business analysis c) Commercialization d) Test marketing e) Screening
b
Product deletion a) tends to be an easy task for most organizations. b) may be opposed by management. c) involves immediate termination. d) is a matter of indifference to customers. e) usually occurs only with convenience items.
b
The major drawback to using aesthetic modifications is a) the cost of the modifications. b) that the value of the modification is determined subjectively. c) the need for redesign of the product. d) a possible decrease in market share. e) that there is no differentiation for the product in the market.
b
When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ___________ phase of the new-product development process. a) idea generation b) commercialization c) test marketing d) business analysis e) screening
b
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) A smoke alarm is modified to be more sensitive to smoke at farther distances. 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) Friskies changes the ingredients in its cat food to a taste that is preferred by most cats.
b
Which of the following phases of new-product development is likely the least costly for the firm? a) Commercialization b) Concept testing c) Business analysis d) Product development e) Test marketing
b
__________ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs. a) Quality modification b) Line extension c) Aesthetic modification d) Feature modification e) Product mix modification
b
Introducing new products is risky and so is a) performing marketing research. b) keeping tabs on the actions of competitors. c) not introducing new products. d) generating new product ideas. e) addressing customers' concerns about products.
c
What is the primary distinction between a line extension and a product modification? a) A product modification results in a completely new product while a line extension is simply changing an old product. b) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. c) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. d) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension. e) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality
d
A ______ is responsible for a product, product line, or several distinct products in an interrelated group within an organization. a) product marketer b) brand manager c) market manager d) product manager e) line manager
d) product manager
A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process? a) Business analysis b) Product testing c) Idea generation d) Commercialization e) Screening
e
As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process? a) Idea generation b) Commercialization c) Test marketing d) Screening e) Product development
e
Ideally, test marketing should follow which stage in the new-product development process? a) Commercialization b) Business analysis c) Screening d) Limited production e) Product development
e
If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of __________ manager. a) product b) sales c) marketing d) advertising e) brand
e
Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the __________ phase of new-product development. a) business analysis b) product development c) test marketing d) screening e) idea generation
e
Product deletion can best be described as the process of deleting a product from the product mix when it a) is perceived as a failure by top management. b) is reviewed negatively by a systematic review board. c) increases production costs and decreases profits. d) no longer responds to promotional efforts. e) no longer satisfies a sufficient number of customers.
e
Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing
e
Schwinn adds features to its bicycles no other companies offer in order to create a) commercialization. b) consistency of quality. c) styling. d) product positioning. e) product differentiation.
e
The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the _________ approach. a) brand manager b) functional team c) multiproduct manager d) special projects e) venture team
e
The members of a venture team come from a) the marketing department. b) a consulting firm. c) the research and development department. d) the production and finance departments. e) different functional areas of an organization.
e
The product deletion process is similar to the ___________ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits. a) idea generation b) screening c) product development d) test marketing e) business analysis
e
T F Quality modification of an existing product aims at changing the product's safety, convenience, or versatility.
f
T F Quality modifications never seek to reduce product quality.
f
The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is a) quality. b) consistency. c) durability. d) styling. e) design.
a
T F Test marketing is an extension of the product screening process.
f
If Conway School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) __________ modification. a) aesthetic b) functional c) quality d) image e) feature
a
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) concept testing. b) customer response testing. c) idea analysis. d) test marketing. e) screening.
a
The three major ways to modify a product include a) aesthetic, quality, and functional changes. b) extensions, generations, and upgrades. c) color, size, and quantity modifications. d) styling, product features, and product design. e) quality, quantity, and design.
a
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 support services, product design and features, and product positioning. d) product positioning, product quality, and product management. e) product positioning, product design and features, and product promotion.
a
When marketers at Nabisco meet to identify the types of snacks that young people want, they are engaging in which phase of new-product development? a) Idea generation b) Business analysis c) Test marketing d) Commercialization e) Product development
a
A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a a) genuinely new product. b) radically new product. c) new product failure. d) controlled new product. e) market share advance.
b
A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, 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) roll-out approach c) test-market expansion d) mass commercialization e) trickle-down approach
b
Select the true statement concerning test marketing. a) Test marketing is simply an extension of the screening and developing stages. b) Test marketing should be conducted after all the marketing mix variables have been finalized. c) Test marketing is a limited introduction of the product in areas chosen to represent the intended market. d) If the product is successful in the test market, then it is ensured of success upon total introduction. e) Large corporations usually launch test-marketing efforts in one small area at a time.
c
What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? a) Product development b) Evaluation of competitor's efforts c) Screening d) Idea generation e) Business analysis
c
"Is the demand strong enough?" is a question that marketers ask during the ___________ phase of new-product development. a) screening b) concept testing c) business analysis d) product development e) test marketing
c
A genuinely new product—like the iPhone once was—offers a) lower prices than existing products. b) at least two new product features. c) innovative benefits to consumers. d) better value than existing products. e) at least two new product features at a lower price.
c
A runout 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) raises the price of the product continually to secure as much profit as possible before the product is priced out of the market. e) occurs when production cannot keep pace with demand because of material shortages.
c
After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process. a) product design b) screening c) product development d) concept testing e) test marketing
c
Best Buy differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. Best Buy is differentiating through a) product ancillaries. b) company styling. c) customer services. d) company features. e) product features.
c
Breakeven analysis is a tool that marketers are likely to employ during the ___________ stage of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing
c
Dropping an unprofitable product immediately is the best strategy when a) all advertising and promotional efforts have been exhausted. b) customers have a negative outlook on other products. c) losses are too great to prolong the product's life. d) the product's performance cannot be improved. e) there is low compatibility with the firm's business strategies.
c
During which stage of new-product development does the firm consider profitability? a) Idea generation b) Testing c) Business analysis d) Product development e) Compatibility research
c
If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ___________ to reduce the validity of the other firm's results. a) testing interference b) leadership pricing c) jamming d) test marketing e) stress marketing
c
If Kraft General Foods offered you a position in which you would have total marketing responsibility for all of its cheese products, this position would probably hold the title of __________ manager. a) brand b) area c) product d) sales e) marketing
c
If buyers choose certain types of products by the way they look, smell, taste, or sound, marketers should focus most on appropriate a) line extensions. b) quality modifications. c) aesthetic modifications. d) sensory systems. e) functional modifications.
c
Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbuck's objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is a) product development. b) idea screening. c) concept testing. d) business analysis. e) test marketing.
c
Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as a) market development. b) regional commercialization. c) roll-out. d) market extension. e) competitive jamming.
c
Sales and cost analyses occur most frequently in what stage of the new-product development process? a) Screening b) Product development c) Test marketing d) Commercialization e) Business analysis
c
Which of the following is the best definition of product features? a) The things a product does that provide benefits to the customer b) Mechanical efforts or activities a company provides that add value to a product c) Specific design characteristics that allow a product to perform certain tasks d) How a product is conceived, planned, and produced with the necessary functions e) The physical appearance of a product
c
Why are line extensions more common than new products? a) They are higher risk and more expensive. b) They are guaranteed to succeed in the marketplace. c) They are less expensive and lower-risk. d) They require no market research. e) Modifications to existing products are very easy
c
Which of the following is a disadvantage of gradually introducing a product to market? a) It reduces the risk of introducing a new product. b) It is easier logistically to introduce it all at once. c) It is difficult to slow down production enough for a gradual introduction. d) It allows competitors to monitor the results of the new product. e) It prevents product differentiation based on geographical differences.
d
T F Test marketing should be conducted when a product has been given a low probability of success.
f
T F The dropping approach to product deletion generates a sales spurt just before removing the product from the market.
f
T F Consistency of product quality means giving consumers the quality they expect every time they purchase a product.
t
T F Many of the so-called new products that are launched each year are in fact line extensions.
t
T F Test marketing is used by companies of all sizes, primarily because of the perceived risk of product failure on the open market and the associated consequences.
t
T F The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.
t
T F The runout approach to product deletion is used for technologically obsolete products.
t
T F Warranties and customer training are examples of customer services.
t
