Marketing 351 Ole Miss Cousley Chapters 12 (Shuffle to avoid repeating of the same topics)
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
A genuinely new productlike the iPhone once wasoffers 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
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
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
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
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
____ 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
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
Functional modifications make an existing product more durable.
F
New-product development does not include planning for advertising.
F
T/F Quality modifications never seek to reduce product quality.
F
T/F Sales personnel are an external source for new product ideas.
F
T/f Quality modification of an existing product aims at changing the product's safety, convenience, or versatility
F
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
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
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
If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog food, this position would probably hold the title of ____ manager. a. brand b. area c. product d. sales e. marketing
C
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
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
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
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
T/F Automobile makers rely heavily on aesthetic modifications.
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
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
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
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
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 This is hard a'f
E
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
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
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
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
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. functionality. e. design.
A
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
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
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
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
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
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
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
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
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
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 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 met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of new-product development? a. Idea generation b. Business analysis c. Test marketing d. Commercialization e. Product development
A
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
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 a chocolate-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
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
Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification; changes to make the TV's remote easier to use would be classified as a(an) ___. a. functional; aesthetic modification b. aesthetic; functional modification c. aesthetic; quality modification d. aesthetic; line extension e. quality modification; functional modification
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
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
When Jeep Wrangler produces the new year's model vehicle, they discontinue production of last year's. However, when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a(an) _____ while Apple's is an example of a(an)______. a. product modification; quality modification b. product modification; line extension c. quality modification; product modification d. functional modification; product modification e. line extension; product modification
B
Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process. a. Idea generation b. Market testing c. Business analysis d. Concept testing
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
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
Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbucks' 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
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 ____ modifications. a. aesthetic; quality b. quality; aesthetic c. aesthetic; functional d. functional; quality e. functional; aesthetic
C
The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through a. product ancillaries. b. company quality. c. customer services. d. company features. e. product features.
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
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
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
D
Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n) a. product manager. b. area manager. c. director of operations. d. market manager. e. sales coordinator.
D
Kara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked "What level of quality are we building into the camping gear?" Based on this question, Kara and her team are most likely in the ____ phase of new-product development. a. commercialization b. concept testing c. business analysis d. product development e. test marketing
D
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. consulting team member. d. member of a venture team. e. market account manager.
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
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
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
____ 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
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
Marcellis is a product manager for a major electronics company. His current project is the development and introduction of a new smartphone. Since there are a number of smartphones currently out on the market, Marcellis is concerned about product failure. Currently, Marcellis and his team are in the screening phase of the new product development process. Has his team already passed the phase which is best able to measure the product failure concern? a. Yes, the best phase is the idea screening phase. b. Yes, the best phase is the concept testing phase. c. No, the best phase is the business analysis phase. d. Yes, the best phase is the test marketing phase. e. No, the best phase is the test marketing phase.
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
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. a commercialization. b. consistency of quality. c. level of quality. d. product positioning. e. product differentiation.
E
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
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
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