MKTG CH 12 TRUE OR FALSE, Marketing Study Questions, ch 13, Chapter 11, Marketing 351 Ole Miss Cousley Chapters 13 (Shuffle to avoid repeating of the same topics), chp 6 mktg, chp 6 mktg, Marketing Ch.6, Marketing Chapter 8, MKTG test 2 ch 6, MKTG ch...

All of the following are major steps in developing new products except

evaluation of competitors' efforts.

Relatively few product ideas are put into the product development stage.

TRUE

Time spent in test marketing can benefit a firm's competitors.

TRUE

Venture teams work outside of established organization divisions

TRUE

Warranties and customer training are examples of customer services

TRUE

Facilities, factories, and production lines with very large equipment are all classified as

installations.

As Beth and Rob search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ____ product.

specialty

The major drawback to using aesthetic modifications is

that the value of the modification is determined subjectively.

A runout approach to product deletion lets the product decline without changing the marketing strategy.

FALSE

Concept testing gives reliable feedback, but at a relatively high cost

FALSE

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.

FALSE

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

FALSE

F New-product development does not include planning for advertising

FALSE

F The phase-out approach to product deletion exploits any strengths left in the product.

FALSE

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

FALSE

Functional modifications make an existing product more durable.

FALSE

Line extensions are less common than other new products because line extensions are more expensive and more risky.

FALSE

New products are classified solely as innovations that have never been sold by any organization

FALSE

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

FALSE

Product managers are most useful in the development of new products.

FALSE

Product support services are important mainly for products that are mechanical in nature.

FALSE

Quality modification of an existing product aims at changing the product's safety, convenience, or versatility.

FALSE

Sales personnel are an external source for new product ideas.

FALSE

Test marketing is an extension of the product screening process

FALSE

Test marketing should be conducted when a product has been given a low probability of success.

FALSE

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

FALSE

The decision to drop a product should always be a unanimous decision of the management team.

FALSE

The dropping approach to product deletion generates a sales spurt just before removing the product from the market.

FALSE

The majority of new-product projects initiated by major companies reach the commercialization stage.

FALSE

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.

FALSE

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

FALSE

Venture team members usually come from the same functional areas within the firm.

FALSE

A brand manager is a type of product manager

TRUE

A venture team has the authority to execute plans for the development of products

TRUE

An important question in the business analysis stage of new-product development is, "Will this product meet our profit goal?"

TRUE

Automobile makers rely heavily on aesthetic modifications.

TRUE

Brand and product managers operate cross-functionally

TRUE

Business analysis provides a tentative sketch of a product's profitability

TRUE

Consistency of product quality means giving consumers the quality they expect every time they purchase a product.

TRUE

Designing a product that customers perceive as different from competing products is an example of product differentiation.

TRUE

During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.

TRUE

Estimates of sales are an important component of business analysis.

TRUE

Functional modifications help an organization achieve and maintain a progressive image.

TRUE

Functional modifications usually require that the product be redesigned.

TRUE

How a pair of jeans looks, regardless of the price, is an example of styling.

TRUE

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.

TRUE

Many of the so-called new products that are launched each year are in fact line extensions.

TRUE

Product managers can be responsible for a single product, a product line, or several products.

TRUE

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

TRUE

Test marketing is a sample launching of the entire marketing mix.

TRUE

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.

TRUE

The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.

TRUE

The major drawback in using aesthetic modifications is that their value is determined subjectively

TRUE

The product development stage determines the technical feasibility of producing the new product.

TRUE

The runout approach to product deletion is used for technologically obsolete products

TRUE

The sum of all the product's physical characteristics is called product quality.

TRUE

There is no best approach to managing products

TRUE

Quality modifications never seek to reduce product quality

FALSE

Gap clothing stores sell primarily what type of products?

Shopping

Which of the following is always used to determine the classification of a good?

Buyer's intent for using the product

Which of the following statements does not apply to convenience goods?

Consumers are brand loyal to convenience products and are not likely to substitute other brands.

Dannon Yogurt represents what type of product for most consumers?

Convenience

Energizer batteries would be classified as which type of product?

Convenience

A(n) ____ is a concept, philosophy, or image

Idea

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product?

Installations

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

Quality

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products.

Shopping

Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Go Anywhere Airlines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product?

Shopping

Why are line extensions more common than new products?

They are less expensive and lower-risk.

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?

Traveler's Insurance umbrella

What is the primary distinction between a line extension and a product modification?

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.

A light bulb can be all of the following except

a consumer product if it is used to light the office of the board of directors.

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.

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.

aesthetic

If Stonefield 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.

aesthetic

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.

aesthetic; functional

Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be

an unsought good

According to the text, a product is defined as

anything the customer receives in an exchange.

As the production manager of an engineering firm, you went out and bought a metal-cutting machine. What you have purchased can best be classified as a

business product.

Products are classified as being business or consumer products according to the

buyer's intended use of the product.

Business products are

classified according to their characteristics and intended uses.

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)

functional modification.

Quality modifications are changes that relate to a product's

dependability and durability.

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

functional

A genuinely new product, like the iPhone once was, offers

innovative benefits to consumers.

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

line extension.

____ 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.

line extension.

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

line extensions.

Shopping products have a ____ inventory turnover and need ____ distribution outlets than convenience goods.

lower; fewer

Rick is a new product manager for a large biochemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.

not introducing new products

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)

quality modification.

A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a

radically new product.

Functional modifications usually require that the product be

redesigned.

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

A specialty product

requires purchase planning, and the buyer will not accept substitutes.

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ____ product.

specialty

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ____ product.

specialty

In product modification, the first issue to consider is whether

the product is modifiable.

Nick Arnold's Auto Towing Service would best be described as a(n) ____ product.

unsought

Jose went skiing one weekend with several of his friends. While at the slope, Jose injured his leg and needed to see a doctor. Jose is likely going to view solutions to his problem as

unsought products.