marketing ch. 12

Development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs

Line Extension

Changes in one or more characteristics of a product

Product Modification

All marketers of goods sell customer services. True False

True

Any human or mechanical efforts or activities a company provides that add value to a product, such as delivery and installation or financing arrangements are known as customer services. True False

True

Taylor is part of a team working on a new talking teddy bear that would teach children math. Leesa, his manager, has asked Taylor to look at market information to forecast sales of the teddy bear to determine whether there will be enough sales to justify developing the product. She is asking Taylor to proceed with which stage of the new-product development process? a. Business analysis b. Concept testing c. Screening d. Test marketing

a. Business analysis

3M, the makers of Post-it notes, have just introduced "Extreme Notes." Extreme Notes are not designed for use on paper, but rather to use in extreme conditions such as to stick on food containers in the freezer or on an outdoor surface in the rain. Extreme Notes are _______. a. a line extension b. an aesthetic modification c. a quality modification d. a product modification

a. a line extension

A(n) _______ modification attempts to minimize the amount of illegal product counterfeiting that occurs through constant change in design. a. aesthetic b. functional c. product d. quality

a. aesthetic

If the losses of a product are too great to prolong a product's life, the best strategy of deletion is _______. a. an immediate drop b. to reduce advertising while updating the product's features c. a phase-out d. a run-out

a. an immediate drop

A(n) _______ in a multiproduct firm would be responsible for the performance of a single brand. a. brand manager b. area manager c. product manager d. market manager

a. brand manager

Line extensions are more common than new products because _______. a. they are a less expensive and less risky way to increase sales b. consumers do not trust new products, even from reputable brands c. new products often alienate current target markets d. developing new products takes years, while a line extension may just take a month

a. they are a less expensive and less risky way to increase sales

Kim is currently building a working model of a new motorized scooter for kids to ride. She is engaged in which phase of the new-product development cycle? a. Test marketing b. Product development c. Concept testing d. Business analysis

b. Product development

Functional modifications usually require that the product _______. a. costs less to produce b. be redesigned c. be improved d. appeals to a broader customer base

b. be redesigned

The development of a product that is closely related to one or more products in the existing product line, but designed specifically to meet somewhat different customer needs is best described as a(n) _______. a. product modification b. line extension c. brand extension d. aesthetic modification e. quality modification

b. line extension

When Ana was visiting her family in Illinois, she found a new type of granola bar she had never seen before. When she returned home to Texas, she could not find the bars in any store. Which of the following reasons most likely explains why she could not find the flavors in Texas? a. The granola bars were being repositioned. b. The granola bars were in the concept testing phase of the new-product development process. c. The granola bars were in the early stages of a rollout. d. The granola bars were being deleted through a phase-out process.

c. The granola bars were in the early stages of a rollout. (In a rollout, a product is in the commercialization stage of the new-product development process. Instead of launching the product nationally overnight, many products are released in stages, starting in one geographic area and expanding over time.)

The new product team at a clothing manufacturer has generated many ideas for styles of new clothes and assessed whether the new clothes are consistent with the manufacturer's objectives and resources. During the assessment, several new ideas were rejected. The next step in the new-product development process is _______. a. test marketing b. screening c. concept testing d. business analysis

c. concept testing

A company that has made a change to a product to improve the product's versatility, effectiveness, convenience, or safety has made a(n) _______ modification. a. improvement b. customer usage c. functional d. planned

c. functional

Sometimes companies will decide to launch products in stages rather than all at once in a process called _______. a. staggered commercialization b. slow launch c. rollout d. extended release

c. rollout

In order to delete products, companies should periodically evaluate each product to determine its impact on the overall effectiveness of the firm's product mix. This process is called a _______. a. product performance review b. profitability analysis c. systematic review d. deletion evaluation

c. systematic review

Your company is preparing to launch a new product next month. Since you are leading the launch effort, you called a meeting of all stakeholders to discuss how the product should be positioned in the market. You acknowledge that the product will carry a higher price than competing products, but all the independent rating agencies have concluded that the product has superior performance characteristics relative to its competing brands. a. The style of the product should be the basis for positioning the product b. The target market for the product should be the basis for positioning the product c. Avoiding competition should be the basis for positioning the product d. Head-to-head competition should be the basis for positioning the product

d. Head-to-head competition should be the basis for positioning the product

What step in the new-product development process may involve evaluators using a checklist of new-product requirements to reject most new product ideas? a. Commercialization b. Test marketing c. Business analysis d. Screening

d. Screening

A product manager is responsible for _______. a. assembling a cross-functional team to develop a new product b. the marketing research associated with adapting an existing product c. managing the marketing activities that serve a particular group of customers d. a product, product line, or interrelated group of products in an organization

d. a product, product line, or interrelated group of products in an organization

Mr. Coffee added a feature to its coffee maker that turns it off after two hours. This is an example of a _______. a. line extension. b. quality modification. c. aesthetic modification. d. functional modification.

d. functional modification.

When a company develops a product that is closely related to a product in its existing product line but is designed specifically to meet somewhat different customer needs, this is known as a(n) _______. a. product upgrade b. version update c. innovation d. line extension

d. line extension

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new campaign. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned? a. "Mother Energy Drink: Get More for Less" b. "Not Your Everyday Mother" c. "Mother Energy Drink—For Those Who Dare to Dream" d. "Mother—Great Taste and Great Energy" e. "New Mother—Tastes Nothing Like the Old One"

e. "New Mother—Tastes Nothing Like the Old One"

The degree to which a product has the same level of quality over time

Consistency of Quality

New products are usually rolled out on a state-by-state basis. True False

False

To manage products effectively, the product manager must be independent of other departments. True False

False

Specific design characteristics that allow a product to perform certain tasks

Product Features

Taylor is a product manager for Coleman's line of tents and recently discovered that Eureka, one of their competitors, was in the process of test marketing a new type of six-person tent in the Rocky Mountain region. He might decide to try _______ in order to reduce the validity of Eureka's results. a. test invalidation b. jamming c. interference d. commercialization

b. jamming (When test marketing, competitors may try to invalidate the test results through jamming)

A _______ is a visual representation of products' positions in a consumer's mind. a .value proposition b. perceptual map c. basis for positioning d. positioning chart

b. perceptual map

For Sony, makers of PlayStation video game consoles, the introduction of the PS4 Pro is a _______. Sony will eventually stop producing the PS4 console. a. aesthetic modification b. product modification c. quality modification d. line extension

b. product modification

If Kraft was to introduce a new version of its Macaroni & Cheese using bow tie pasta and still continue to produce all of its other Macaroni & Cheese products, this would be an example of _______. a. a quality modification b. a functional modification c. a line extension d. a brand extension

c. a line extension

Suppose that Victoria's firm decides to commercialize the pour-over coffeemaker. They appoint a manager to oversee the pour-over coffeemaker line and their single-serve coffeemaker line. This is an example of a market manager. True False

False

Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development. True False

False (Developing and introducing new products is frequently expensive and risky. However, failure to introduce new products is also risky. Companies need new products to compete.)

Durability refers to the overall characteristics of a product that allow it to perform as expected in satisfying customer needs. True False

False (Quality refers to the overall characteristics of a product that allow it to perform as expected in satisfying customer needs. For some customers, durability or reliability may signify quality)

When Oreo developed a new Rocky Road flavor, it was an example of a

Line Extension

The person responsible for managing the marketing activities that serve a particular group of customers

Market Manager

Determining if producing a product is technically feasible and cost-effective

Product Development

Creating and designing products so customers perceive them as different from competing products

Product Differentiation

The person within an organization who is responsible for a product, a product line, or several distinct products that make up a group

Product Manager

Repositioning can occur by changing a product's price or distribution. True False

True

Victoria works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as Chorreadores. Victoria's firm thinks this type of product can catch on in the United States because they are exotic and highly environmentally friendly. Victoria is working with a team to determine the feasibility of the product. Together with her team, she shows a small group of avid coffee customers a written description as well as a photo of the proposed product. She hopes to determine whether they would buy the product and what they think about it. Victoria and her team are at what stage in the product development process? a. Concept testing b. Commercialization c. Test marketing d. Product development e. Business analysis

a. Concept testing

Amazon using drones to deliver packages would be an example of _______. a. disruptive innovation b. product line extension c. sustainable innovation d. a functional modification

a. disruptive innovation (A disruptive innovation identifies old technologies that can be exploited in new ways or that develop new business models to give customers more than they've come to expect from current products in a specific market. Using a drone is a new business model for delivering packages.)

Xavier has gone to the store to shop for a new USB drive. He finds the same brand he has bought in the past but notices that the capacity of the smallest one available in the store is more than triple the capacity of the one he currently has. The drive has undergone a(n) _______ modification. a. functional b. aesthetic c. quality d. quantity

a. functional (A functional modification is a change affecting a product's versatility, effectiveness, convenience, or safety. The size of the USB drive is a change to the effectiveness of the drive and is therefore a functional modification.)

Samsung wants to add features to the upcoming version of its Galaxy S smartphone. It has asked its engineers and other employees to submit possibilities for new features. Samsung is currently in the _______ phase of the new-product development process. a. idea generation b. product development c. test marketing d. concept testing

a. idea generation

P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers' minds. This is referred to as _______. a. product positioning b. product modification c. product development d. product organization e. line extension

a. product positioning

Dwayne is downloading the latest update for an app on his phone. Before downloading the app, he was able to read about the bug fixes that make the app have fewer errors and look at images showing the new easy-to-use interface for the app. Dwayne was able to learn about the _______ modifications by looking at the bug fixes and the _______ modifications by looking at the pictures of the interface. a. quality; functional b. quality; aesthetic c. functional; quality d. functional; aesthetic

a. quality; functional (The bug fixes make the app more dependable, which are quality modifications. The easy-to-use interface makes the app more convenient, which is a functional modification)

Years ago, Old Spice was marketed to older men. In 2010, the company came out with new commercials and advertisements through the "The Man Your Man Could Smell Like" campaign that featured athlete Isaiah Mustafa and was geared towards younger customers. Through _______, Old Spice was able to boost sales and reach a new demographic. a. repositioning b. perceptual mapping c. head-to-head positioning d. product positioning

a. repositioning (Repositioning can occur by physically changing the product, its price, its distribution, or through promotional efforts as Old Spice did.)

Christine and Donna work for a manufacturer of frozen pastries and are deciding how to delete a line of frozen waffles. Christine favors focusing on a core market and intensifying advertising directed at that market to try to have a temporary jump in profits. Donna, however, believes the marketing strategy should be unchanged and the product should decline without attempting to give the line new life. Christine favors a(n) _______, while Donna favors a(n) _______. a. run-out; phase-out b. phase-out; immediate drop c. run-out; immediate drop d. immediate drop; phase-out

a. run-out; phase-out

Chase Bank offers a credit card that it differentiates from competing cards by providing a toll-free phone number that connects directly with a customer service agent rather than an automated system. Chase is differentiating this credit card through _______. a. support services b. product styling c. product features d. product quality

a. support services

Emma had a new pool installed in her backyard by Valley Pool. Valley Pool includes a one-year maintenance plan that provides pool cleanings for one year and allows Emma to call a toll-free phone number if there are any problems with the pool. Valley Pool is most likely differentiating itself through _______. a. support services b. product styling c. product quality d. customer focus

a. support services

Early in the commercialization phase, marketers must make decisions about _______. a. warranties, repairs, and replacement parts b. the target market c. proposed price, distribution, and promotion d. customer expectations

a. warranties, repairs, and replacement parts

The major drawback to making aesthetic modifications is _______. a. whether people value the modification is subjective b. aesthetics are not important to consumers c. that aesthetic modifications have no impact on market share d. they are the costliest modifications to make to a product

a. whether people value the modification is subjective

During which phase of new-product development process does a company select a small sample of potential buyers and present them with a product idea to have them answer questions regarding their attitudes and purchase intentions? a. Customer screening b. Concept testing c. Market testing d. Marketing research

b. Concept testing

Which of the following deletion strategies makes no attempt to give a declining product a new life? a. Flash sale b. Phase-out c. Lingering drop d. Run-out e. Immediate drop

b. Phase-out

During the recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the south for about a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. What stage of the product development process was P&G in when it decided to discontinue Tide Basic? a. Commercialization b. Test marketing c. Business analysis d. Concept testing e. Product development

b. Test marketing

The test-marketing stage of the new-product development process _______. a. is the quickest and least expensive stage of the new-product development process b. allows marketers to measure sales performance of a product in a natural marketing environment c. can be done in any market without needing to consider the market's characteristics d. allows marketers to guarantee a successful product launch during the commercialization stage

b. allows marketers to measure sales performance of a product in a natural marketing environment

Darryl has been working on the product development of a new fertilizer that would be sold to landscapers. Darryl is currently analyzing potential costs associated with developing and distributing the fertilizer. Darryl is most likely in the _______ phase of the new-product development process. a. concept testing b. business analysis c. screening d. test marketing

b. business analysis

One disadvantage of test marketing is that _______. a. the results often hold little validity in estimating future sales volume b. competitors may rush to introduce a similar product to the market c. weaknesses found during the test marketing phase cannot be corrected d. it is more expensive to run a test market than to engage in full commercialization

b. competitors may rush to introduce a similar product to the market

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. test marketing b. idea generation c. business analysis d. product development

b. idea generation

Kristen and Patti work for a toy manufacturer and are deciding how to delete a line of unprofitable dolls. Kristen believes that the dolls have become enough of a burden that they should halt production. Patti, however, believes there is still a core market for the dolls and they should intensify advertising toward that market in hopes of some increased profits. Kristen is in favor of a(n) _______, while Patti's strategy is a(n) _______. a. run-out; immediate drop b. immediate drop; run-out c. phase-out; immediate drop d. immediate drop; phase-out

b. immediate drop; run-out

Gillette introduced the Mach3 in 1998. It had a powered wet shaving system and three blades. Gillette claimed that the blades of the Mach3 had the thinnest edges of all of its products. The Mach3 was just one of the many technologically advanced razor products that Gillette and its competitor Schick have released over the years. Dollar Shave Club, however, operates on a different premise. It claims that razor blades are too expensive and that all the bells-and-whistles are not necessary. Founder Michael Dubin realized that men do not change their razor blades as often as they should because of the expense and inconvenience of having to pick them up at the store. His firm offered users a subscription service where it would deliver quality razor blades to the door of members. Dollar Shave Club got so many members in such a short time that its servers crashed. Its service became so popular that Gillette began offering its own subscription-based service. Gillette has also started focusing more on creating value than overpowering consumers with the latest technology. The Mach3 would be an example of a _______. Dollar Shave Club would be an example of a _______. a. new product; line extension b. new product; disruptive innovation c. disruptive innovation; new product d. new product; product modification

b. new product; disruptive innovation (A new product can be a genuinely new product or a product that has been improved. The Mach3 is an example of a new product. Dollar Shave Club, however, fits the definition of disruptive innovation because it identified a business model that gives customers more than what they would expect from the razor blade market. It has essentially disrupted the razor blade market and is giving the two dominant players a run for their money.)

Creating and designing products so customers perceive them as different from competing products is known as _______. a. product distinction b. product differentiation c. product variation d. product extension

b. product differentiation

Dell offers a line of computers under the Alienware brand name that is specially designed for gamers. These computers have high-end graphic cards, extra RAM, faster processors, and a larger power supply. Dell is differentiating its Alienware line based on _______. a. product quality b. product features c. intended use d. support services

b. product features

Frito-Lay decided to initially launch a new flavor of potato chips in Columbus and Cleveland, Ohio. After it was successful in those two areas, the market for the flavor was expanded to the rest of Ohio before expanding to Indiana, Michigan, West Virginia, and Kentucky. After its success in those states, the flavor was introduced nationally. The chips were launched using a _______. a. step-by-step introduction b. rollout c. stepwise strategy d. nationwide launch

b. rollout

Lexmark has seen a decline in sales for its inkjet printer cartridges as stores like Staples and Costco sell compatible cartridges and customers move toward laser jet printers. Lexmark's CEO has decided to delete the cartridges from the company's product mix. The CEO has decided to reduce advertising spending in much of the United States, but intensify efforts in Lexington, Kentucky where the company is based. The CEO is using a _______ strategy. a. cutback b. run-out c. immediate drop d. phase-out

b. run-out

At your company's quarterly meeting, marketing executives are discussing the company's products with detailed information on market share, contribution to overall sales, costs, and profit margins. Overall, the product mix is healthy, however, executives have identified one product whose sales have slipped. They will continue to watch this product and report again at the next quarterly meeting. This is an example of a _______. a. product performance review b. systematic review c. deletion evaluation d. phase-out

b. systematic review

As a marketer at Procter & Gamble (P&G), you have been involved with developing a line of baby formula the company plans on releasing this month. P&G has not competed in baby formula before, so you must help decide how best to market and position this product. Variations of the product were developed to meet different babies' needs such as soy, gentle, and organic. Focus group and product testing results show that although parents liked the formula and felt it was healthy for their babies, they thought it performed just as well as their current brand and would not commit to switching from their regular brand. Given this information, which of the following should be the bases for positioning the product? a. Quality positioning b. Head-to-head competition c. Avoid competition d. Price positioning

c. Avoid competition (Positioning to avoid competition may be the best strategy when the product's performance characteristics do not differ significantly from the competition.)

Functional testing occurs in which part of the product development stage? a. Test marketing b. Screening c. Product development d. Concept testing e. Business analysis

c. Product development

Jasmine is part of a team working on a new line of rugs designed for use on outdoor patios. During a meeting with the team, Jasmine asked whether they wanted to make the level of quality and durability of the new rugs higher than the quality level of their chief competitor. Based on her question, the team is most likely in which phase of the new-product development process? a. Screening b. Concept testing c. Product development d. Test marketing

c. Product development (During the product development phase, a company determines if a product idea is technically feasible to produce. One crucial question is how much quality to build into the product with the quality of competing brands typically considered.)

During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _______, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product, and _______, which evaluates the potential impact of the product idea on the firm's sales, costs, and profits. a. business analysis; screening b. business analysis; concept testing c. concept testing; business analysis d. screening; test marketing

c. concept testing; business analysis

In product modifications, three conditions must be met to improve a firm's product mix: the product must be modifiable, the modification should make the product more consistent with customers' desires, and _______. a. similar modifications have been made by competing manufacturers b. the new product must be priced higher than the original product c. customers must be able to perceive that a modification has been made d. the modified product should meet the needs of a new target market

c. customers must be able to perceive that a modification has been made

As head of sales and marketing for your company, one of your key responsibilities is to regularly review the company's product mix to determine if any products should be deleted. You are meeting with your marketing team to decide the fate of Product A. The following comments about Product A are made by different members of the team: "There are no strengths left in the product." "The losses on the product are huge and they keep growing." Which of the following actions should you take with Product A? a. It should be phased-out from the product mix. b. Aesthetic modifications to the product should be considered. c. It should be run-out from the product mix. d. It should be immediately dropped from the product mix.

d. It should be immediately dropped from the product mix.

Carter is the product manager for Flintstones Children's Vitamins. They are in development of a new type of vitamin and have begun advertising the new vitamins on children's television shows and on the product's website. Based on this information, the vitamin is most likely in the _______ stage of the new-product development cycle. a. product development b. business analysis c. screening d. commercialization

d. commercialization (During commercialization, companies will spend money on advertising, personal selling, and other types of promotion.)

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. business analysis b. product development c. idea screening d. concept testing

d. concept testing

A run-out strategy of product deletion _______. a. does not make any effort to extend the life of the product b. is only used if a phase-out has been unsuccessful c. lowers the price of the product to eliminate inventory quickly d. may focus on intensifying marketing efforts in a core market

d. may focus on intensifying marketing efforts in a core market

Product deletion can best be described as the process of deleting a product from the product mix when it _______. a. has experienced a product recall b. no longer includes the latest technology c. is deemed to be unprofitable through a systematic review d. no longer satisfies a sufficient number of customers

d. no longer satisfies a sufficient number of customers

All of the following are major steps in developing new products, except _______. a. test marketing b. commercialization c. idea generation d. product differentiation

d. product differentiation

Whirlpool has developed a new washing machine that provides new technology that can sense the needs of each load of laundry and adjust the water levels and wash actions to make clothes cleaner while being gentler on the fabric. It also has added new features such as the ability to spray detergent directly and evenly on clothes and an option to steam clean. Since its competition does not make a washing machine with these features, Whirlpool is creating _______. a. consistency of quality b. product positioning c. level of quality d. product differentiation

d. product differentiation

Carmen from research and development, Jake from finance, Abby from marketing, Chris from production, and Deidra from engineering have been put together to develop a new line of headphones. These people are a(n) _______ at their company. a. product development team b. imagination group c. market development team d. venture team

d. venture team

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. SWOT team b. idea generation group c. brand management group d. venture team

d. venture team (venture team creates entirely new products that may be aimed at new markets. Unlike a product or market manager, a venture team is responsible for all aspects of developing a product.)

Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets. The company was forced to delete its magnetic desk toy product due to safety concerns after being sued by the Consumer Product Safety Commission. What type of product deletion did the firm most likely use? a. Phase-out b. Product decline c. Harvesting d. Run-off e. Immediate drop

e. Immediate drop

Changes relating to the sensory appeal of a product

Aesthetic Modifications

The person responsible for a single brand

Brand Manager

Evaluating the potential impact of a product idea on the firm's sales, costs, and profits

Business Analysis

Refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product

Commercialization

Seeking a sample of potential buyers' responses to a product idea

Concept Testing

Human or mechanical efforts or activities that add value to a product

Customer Services

A new way of exploiting old technologies—or a new business model developed—to give customers more than they've come to expect from current products in a specific market

Disruptive Innovation

Idea generation for new products comes from sources outside of the company—customers, suppliers, and competitors. True False

False

Most of the time, large organizations adopt the traditional functional form of an organization. True False

False

Changes affecting a product's versatility, effectiveness, convenience, or safety

Functional Modifications

Gradual product introduction is desirable because it reduces the risks of introducing a new product; a system of wholesalers and retailers to distribute the product cannot be established so quickly, the number of units needed to satisfy nationwide demand for it may be too large for the firm to produce in a short time, and it allows for fine-tuning of the marketing mix to satisfy target customers. However, gradual product introduction does allow competitors to develop new products quickly and compete for the same target market with similar products.

Gradual Product Introduction

Seeking product ideas to achieve organizational objectives

Idea Generation

Kira loves Mexican food. She saw a new Mexican restaurant that had affordable prices. She went in to eat but had a bad experience because the food was too salty. Kira thought perhaps it was just a fluke. She went back to the restaurant, but the food tasted just as bad. For Kira the restaurant has a low

Level of Quality

The amount of quality a product possesses

Level of Quality

A seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test marketing, and commercialization

New-Product Development Process

Eliminating a product from the product mix when it no longer satisfies a sufficient number of customers

Product Deletion

How a product is conceived, planned, and produced

Product Design

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds

Product Positioning

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs

Quality

Changes relating to a product's dependability and durability

Quality Modifications

Selecting ideas with the greatest potential for further review

Screening

The physical appearance of a product

Styling

A limited introduction of a product in geographic areas chosen to represent the intended market

Test Marketing

A cross-functional group that creates entirely new products that may be aimed at new markets

Venture Team

Lindsey works in R&D at a consumer products firm. She meets up with Don, who works in finance, Riley, who works in production, and David, who works in marketing. Together they are going to develop a new product that Lindsey's department had researched. They are responsible for all aspects of developing the product. This is an example of a

Venture Team

Ideally, test marketing would precede which stage in the new-product development process? a. Commercialization b. Screening c. Concept testing d. Business analysis

a. Commercialization

When a product's performance characteristics are at least equal to those of competitive brands and it is priced lower, which of the following is appropriate? a. Head-to-head positioning b. Positioning to highlight style c. Positioning to avoid competition d. Repositioning e. Positioning to emphasize ingredients

a. Head-to-head positioning

ACME Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. ACME is in which phase of the new product development process? a. Screening b. Test marketing c. Concept testing d. Product development e. Business analysis

a. Screening

Samsung's Family Hub refrigerator allows owners to leave notes, sync calendars, display photos, and view the inside of the refrigerator without opening the door on a touchscreen on the front of the refrigerator. This is an example of _______. a. a product feature b. a support service c. the consistency of quality d. the level of quality

a. a product feature

If a local gym changes the music being played over the loudspeakers and replaces the wallpaper in the locker rooms, these modifications are most likely to be viewed as _______ modifications. a. aesthetic b. physical c. functional d. quality

a. aesthetic

When automakers started installing Apple CarPlay and Android Auto in cars, this was an example of a(n) _______. a. functional modification b. quality modification c. aesthetic modification d. repositioning modification e. product line modification

a. functional modification

Seventh Generation is developing a new type of organic body wash that is going to be higher in price than the competition but provides superior performance characteristics compared to other organic body wash brands. It should most likely use _______ positioning for the new body wash. a. head-to-head b. price c. quality d. avoid competition

a. head-to-head (Head-to-head competition may be the best positioning objective if the product's performance characteristics are superior to the competition and the product is priced higher.)

Quality, the overall characteristics of a product that allow it to perform as expected, has two components: _______ and _______. a. level; consistency b. appearance; consistency c. services; consistency d. function; appearance e. level; function

a. level; consistency

Lola is a _______ and manages all of the marketing activities for K-6 educational customers for the Scholastic Corporation. a. market manager b. product manager c. brand manager d. venture team member

a. market manager

When Jeep Wrangler produces the new year's model vehicle, it discontinues production of last year's. However, when Apple brings out a new iPhone, it continues to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a _______ while Apple's is an example of a _______. a. product modification; line extension b. functional modification; product modification c. quality modification; product modification d. product modification; quality modification

a. product modification; line extension

Suave used a series of commercials with the slogan "Can you tell?" in an attempt to show that people could not tell if a person washed their hair with Suave or a more expensive shampoo. Using this process, Suave was able to _______ itself from a value brand to a quality brand. a. reposition b. adapt c. transform d. shift

a. reposition

By using a larger can size and different colors, Coca-Cola is changing the _______ of the product. a. styling b. repositioning c. quality d. product features e. functionality

a. styling

The Amazon Echo is a voice-controlled speaker and personal assistant. It has been in development since 2010. In 2014 it was released only to Amazon Prime members for purchase. In 2015 it expanded and became available in stores nationwide. Amazon has since expanded the Echo family to include the Echo Dot Kids Edition, Echo Spot, Echo Show, and more. What stage in the product development process was Amazon Echo in 2015? a. Test marketing b. Commercialization c. Business analysis d. Screening e. Product development

b. Commercialization

Which of the following identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they've come to expect from current products in a specific market? a. Product modification b. Disruptive innovation c. Idea generation d. Brand extension e. Line extension

b. Disruptive innovation

Your company has an outdated technology product that is struggling in the market. The product appears to have some strength left that might be able to be exploited. Which of the following product deletion strategies would be most appropriate for the product? a. Eliminate marketing and phase out the product b. Intensify marketing activities on a core market c. Immediately drop the product d. Raise the price and implement a phase-out

b. Intensify marketing activities on a core market

Which of the following is responsible for a product, a product line, or several distinct products that make up an interrelated group within a multiproduct organization? a. Market manager b. Product manager c. Product mix manager d. Brand manager e. Venture team

b. Product manager

Recognizing that CD players are a thing of the past, those who manufactured CD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of CD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _______. a. a run-off b. a phase-out c. an immediate drop d. harvesting e. product fading

b. a phase-out

It is important to move to the commercialization phase of new-product development as soon as possible after successful test marketing because _______. a. manufacturers have already planned for production of the product b. competitors may rush to introduce a similar product c. consumers will be demanding the product. d. retailers have set aside shelf space for the product

b. competitors may rush to introduce a similar product

The new product team at a clothing manufacturer has generated many ideas for styles of new clothes and assessed whether the new clothes are consistent with the manufacturer's objectives and resources. During the assessment, several new ideas were rejected. The next step in the new-product development process is _______. a. business analysis b. concept testing c. screening d. test marketing

b. concept testing

When a smartphone manufacturer adds wireless charging so that the phone needs to be placed on a charging pad rather than having to plug it in, the manufacturer has made a(n) _______. a. brand extension b. functional modification c. aesthetic modification d. quality modification

b. functional modification

Product deletion _______. a. should only be done when a product has become a financial burden b. is often a difficult decision for management to make c. follows the same process for all products a firm decides to delete d. requires that production of a product be immediately stopped

b. is often a difficult decision for management to make

Gradual product introduction is desirable for all of the following reasons, except _______. a. it allows the company to fine tune the marketing mix b. it keeps competition from developing new products in a timely manner c. wholesaler and retailer distribution networks cannot be established so quickly d. reduces the risk of new product introduction

b. it keeps competition from developing new products in a timely manner

Jim is a marketing manager for Tylenol Cold and wanted to know how Tylenol Cold and other competing products were perceived by consumers. To do this, he surveyed a sample of customers about all of the different competitors on two dimensions and created a _______. a. product identification chart b. perceptual map c. brand grid d. customer perception graph

b. perceptual map

If Splenda decides its "Splenda Essentials," which is its sweetener that includes vitamins, is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) _______ deletion strategy. a. immediate drop b. phase-out c. slow-down d. run-out

b. phase-out

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds are best described as _______. a. perceptual mapping b. positioning c. repositioning d. disruptive innovation e. screening

b. positioning

How a product is conceived, planned, and produced, including its physical characteristics, is referred to as _______. a. styling b. product design c. support services d. product features

b. product design

Marketers make determinations as to whether a new product is technically feasible to produce and whether the cost of production will be low enough to proceed during _______. a. commercialization b. product development c. screening d. test marketing

b. product development

A product modification differs from a line extension in that _______. a. the new product is in a different product category b. the original product does not remain in the line c. it changes the sensory appeal of a product by altering its taste, texture, sound, smell, or appearance d. it changes the product's dependability and durability e. the original product remains in the line

b. the original product does not remain in the line

Which is the best way to handle the deletion of a product? a. Only eliminate the product if repositioning fails b. Drop the product immediately once sales start to decline c. Conduct a review to determine its impact on the overall product mix d. Discontinue the product after it becomes a heavy financial burden e. Maintain the product as long as there are loyal customers

c. Conduct a review to determine its impact on the overall product mix

Which of the following alters a product's versatility, effectiveness, convenience, or safety? a. Quality modification b. Package modification c. Functional modification d. Aesthetic modification e. Ingredient modification

c. Functional modification

Which of the following is the best example of a functional modification? a. A bicycle manufacturer finds a supplier of tires that charges a lower price. b. A book publisher changes the cover art on a book to show that the book is being released as a motion picture. c. Honda adds rear-view cameras to all of its new vehicles. d. Chipotle modifies its food to only include non-GMO ingredients.

c. Honda adds rear-view cameras to all of its new vehicles.

Which of the following is responsible for managing the marketing activities that serve a particular group of customers? a. Product manager b. Brand manager c. Market manager d. Product mix team e. Venture team

c. Market manager

During which phase of the new product development process is a new product idea turned into a prototype or working model? a. Concept testing b. Screening c. Product development d. Test marketing e. Business analysis

c. Product development

Method is a nontoxic, biodegradable cleaning supplies company. Suppose one of the employees on the production team at Method got an idea for the company to expand into biodegradable plastic wrap. He has heard about new technologies that could make this possible. Method has the resources to invest in this new product, but after considering it, the production managers nixed the idea because it did not fit well with its product mix. What stage of the product development process was Method in? a. Product development b. Commercialization c. Screening d. Business analysis e. Test marketing

c. Screening

Which of the following is responsible for all aspects of developing a product: research and development, production and engineering, finance and accounting, and marketing? a. Brand manager b. Brand developer c. Venture team d. Product manager e. Market manager

c. Venture team

Jennifer is a _______ at Frito-Lay. She manages all varieties of Tostitos chips. a. venture team leader b. sales manager c. brand manager d. product manager

c. brand manager

All of the following are major types of modifications that can be made to products, except _______. a. functionality b. aesthetics c. durability d. quality

c. durability

Gene works in the uniform and apparel division of Cintas. He has responsibility for managing the marketing activities for uniforms aimed at restaurants and dining facilities. Gene's title is _______. a. product manager b. area coordinator c. market manager d. brand manager

c. market manager

Kimberly-Clark is in the process of eliminating products from the product mix because it no longer satisfies a sufficient number of customers. This is best described as _______. a. product positioning b. commercialization c. product deletion d. disruptive innovation e. product adoption

c. product deletion

Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, and a manager for Simply Orange. What types of managers are these? a. Product managers b. Market managers c. Venture team managers d. Brand managers e. Assistant managers

d. Brand managers

Which of the following is NOT a means of repositioning a product? a. Changing the product's image through promotional efforts b. Distributing the product through a different distribution channel c. Aiming the product at a different target market d. Maintaining the product's marketing mix e. Physically changing the product

d. Maintaining the product's marketing mix

In repositioning the product, Coca-Cola changed the taste of the product. It also changed the look of the product with a larger can size and different colors. This is an example of a(n) _______ modification. a. repositioning b. quality c. functional d. aesthetic e. product line

d. aesthetic

Delivery and installation, financing arrangements, customer training, warranties and guarantees, repairs, layaway plans, convenient hours of operation, adequate parking, and information through toll-free numbers and websites are examples of _______. a. product features b. customer positioning c. product design d. customer services e. product differentiation

d. customer services

William manufactures office chairs. He has studied ergonomics to develop a chair that is more comfortable than other chairs on the market. He also offers a lifetime warranty that allows people who buy his chairs to have anything repaired or replaced if broken. William is most likely differentiating through _______ with the comfort level and through _______ with his warranty. a. customer expectations; customer satisfaction b. style; quality c. core features; added features d. design; support services

d. design; support services

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. area manager b. director of operations c. product manager d. market manager

d. market manager

If Duracell decides that its Quantum line of batteries is not reaching profit expectations and simply allows it to decline without any change to the marketing strategy, it would be using a(n) _______ deletion strategy. a. run-out b. cutback c. immediate drop d. phase-out

d. phase-out

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. commercialization b. level of quality c. consistency of quality d. product differentiation

d. product differentiation

As a _______ for Mars, Inc., Alex is responsible for all of the company's chocolate candies and bars. a. venture team leader b. sales manager c. brand manager d. product manager

d. product manager (product manager is the person in an organization responsible for a product, product line, or several distinct products that make up a group)

Miles recently stayed at the Hyatt. He loved the experience. The staff was so nice, and the rooms were clean. The concierge was extremely helpful. He decided to stay there when he returned on his next business trip. However, the next time he stayed there, there were different staff members who were not very friendly or helpful. Also, the housekeeping staff did not change the towels in his room. The only thing he found to be the same was the concierge. This Hyatt seems to lack _______. a. functionality b. level of quality c. good customer service d. product features e. consistency of quality

e. consistency of quality

The process of creating and designing products so that customers perceive them as different from competing products is best described as _______. a. product positioning b. concept testing c. disruptive innovation d. product modification e. product differentiation

e. product differentiation