Chapter 14

List the six steps in the new product development process, starting with the first step at the top and ending with the last.

1. Idea generation 2. Product screening 3. Product analysis 4. Development 5. testing 6. commercialization (

List the stages of the product life cycle from beginning to end with the first stage at the top.

1. Introduction 2. Growth 3. Maturity 4. decline

is the creation of real or perceived differences in goods or services.

Blank 1: Product Blank 2: differentiation

aims to design a product so that it satisfies customers and meets the profit margins for a company.

Blank 1: Target or Demand Blank 2: costing or based

change according to the level of production

Blank 1: Variable Blank 2: costs

When consumers quickly and easily think of a given brand name when a product category is mentioned, they are said to have established .

Blank 1: brand Blank 2: awareness

Total are all the expenses that remain the same no matter how many products are made or sold.

Blank 1: fixed Blank 2: costs

Sellers are now able to commercialize new products more quickly through interactive websites that enable them to reach .

Blank 1: global Blank 2: markets

A brand manager manages all elements of a product line or the brand's .

Blank 1: marketing Blank 2: mix

Understanding the product life cycle can provide marketing managers a basis for planning strategies.

Blank 1: marketing or market Blank 2: mix

A computer kept at home for personal use is considered a(n) good, whereas the same computer purchased for use in a business office is considered a(n) good.

Blank 1: personal or consumer Blank 2: business or industrial

Due to competition and demand in the marketplace, and are not always related.

Blank 1: price Blank 2: cost

The break-even point is the point where revenues from equal all . (Enter one word in each blank.)

Blank 1: sales Blank 2: costs, expenditures, or expenses

Reducing the number of new product ideas based on specific criteria is a function of product , whereas determining the profitability of those ideas is a function of product .

Blank 1: screening Blank 2: analysis

Designing a product so that it satisfies customers and meets the profit margins desired by firms is called .

Blank 1: target Blank 2: costing

Considering an iPod's look and feel, its features, as well as Apple's reputation demonstrates a consumer evaluating the offer.

Blank 1: total Blank 2: product

Everything that consumers evaluate when deciding whether to buy something is referred to as the .

Blank 1: total Blank 2: product Blank 3: offer

Examples of shopping goods or services are:

Clothes, Shoes, Appliances, and Auto services

goods sell best with an established brand, image, and location.

Convenience

When airlines charge higher prices for seats in the Economy section Exit rows that have more leg room, they are using which pricing strategy?

Demand-oriented

True or false: Distributed product development is producing a firm's product without the help of other organizations.

False

True or false: Grouping two or more products together and pricing them as a unit is called stacking.

False

True or false: It takes dozens of ideas to generate one commercial product.

False

Which of the following are specialty goods or services?

Jewelry Business consultants

Choose the term that is defined as a set of processes for creating, communicating, and delivering value to customers, according to the American Marketing Association.

Marketing

Which of the four Ps below is the most difficult for a manager to control due to the impact it has on consumer evaluation of an offering?

Price

is one of the most difficult of the four Ps for a manager to control, since it directly relates to the consumer perceptions of the value of a product.

Price or Pricing

Differentiate between the elements of the new-product development process:

Product screening-Reduces the number of products a company is working on down to the most promising Product analysis- Develops cost estimates and sales forecasts to determine profitability

A benefit of a(n) system is that the packaging inventory method does not have to be read one at a time and can be read at a distance.

RFID

A relatively new tracking technology using radio frequencies is known as the chip.

RFID

Select the firms that distribute products nationally which are also known as manufacturers' brands.

Sony Xerox Dell

When opening a bag of potato chips the bag is much larger than what is inside. The reason for this most likely has to do with which function of packaging.

To protect the goods inside

True or false: The two categories of Goods and Service that take more effort on the part of consumers are Shopping and Specialty

True

What is an example of a manufacturer's brand name?

Xerox

A major reason why many new products fail is that they:

are too similar to competitors

How quickly or easily a given brand name comes to mind when a product category is mentioned refers to:

brand awareness

Dell and Sony are manufacturers' that are recognized and distributed nationally.

brands

The point where revenues from sales equal all costs is called the:

break-even point

The best way to promote a(n) good is to make it readily available and create the proper image.

convenience

Making a product readily available and creating the proper image is the best way to promote a good classified as a(n):

convenience good

A product the consumer wants to purchase frequently and with minimum effort is a good or service called a(n):

convenience product

Demand-based pricing is based on what customers are willing to pay for a product due to its perceived value, not the of producing it.

costs or cost

An advantage of RFID chips is that they can carry more than bar codes.

data or information

The Kenmore brand sold by Sears is an example of a brand.

dealer or house

The pricing strategy in use when a firm prices products based on consumer demand is called:

demand-oriented

Handing off various parts of a firm's innovation process sometimes to companies in other countries is called product development.

distributed

A dealer brand may also be called a:

distributor brand private label house brand

Brand is the value of the brand name and associated symbols.

equity

Another name for a dealer brand or private label brand is a:

house brand

Another name for brands is distributor brands.

house or dealer

When developing new products, it takes about seven new to generate one new commercial product.

ideas

During the growth stage of the product life cycle, sales and profits mostly

increase

Brand is the degree to which consumers are satisfied, like the brand, and are committed to further purchases.

loyalty

Private-label brands are products that do not carry the name, but carry a distributor or retailer name.

manufacturer's, manufacturers, or manufacturer

Xerox, Kodak, Sony, and Dell are all examples of brand names.

manufacturers', national, manufacturer, manufacturers, or manufacturer's

The will ultimately determine the price of goods.

market or marketplace

Marketers must continually adapt products to new ______.

markets competition

Marketers who seek to differentiate their products by promoting attributes such as safety or the brand name are using:

nonprice competition

It is unusual for a company to sell:

one product

A low initial entry price, often lower than the eventual market price, to attract many customers and discourage competition, is a strategy called:

penetration

In order to capture a large share of the market quickly, firms use a low price strategy

penetration

Which step in the new product development process involves estimating costs and sales to get a feel for the new products potential profitability.

product analysis

The creation of real or perceived product differences is called:

product differentiation

When a consumer evaluates not just the core product but the total product offer, they look for

product function, warranty, company reputation

During _____, a marketing manager should use such criteria as fit with the firm's other products, profit potential, and marketability.

product screening

Justifying a new product's fit, profit potential, and marketability is known as:

product screening

Factors influencing the perception of quality are:

reputation appearance price

Knowing what of the product life cycle a product is in helps marketers make intelligent and efficient marketing decisions.

stage or phase

Companies usually offer a product line instead of just one product to:

tailor their offerings more closely to consumer wants meet the competition appeal to similar consumer markets

Designing a product so that it satisfies customers and meets the profit margins desired by firms is called:

target costing

Expenses that remain the same no matter how many products are made or sold are called:

total fixed costs

The value of the brand name and associated symbols refers to:

brand equity

A product that could be both a consumer product or industrial product depending on its use is a:

computer

Not delivering what is promised is a leading cause of new-product .

failure

It is common for goods to be marketed through special interest magazines and websites.

specialty

Specialty products are considered:

to have no substitute

Match the goods classifications with the buyer behaviors shown below.

Convenience- Purchased often with little thought Shopping-Time spent on comparison to substitutes Specialty-No substitute will do Unsought-Unaware of product or not looking for it

A is a name, symbol, or design that identifies the goods or services of one seller or group of sellers.

brand

A name, symbol, or design that identifies the goods or services of one seller or group of sellers is called a:

brand

An increase in outsourcing and alliance building has resulted in product development that often includes coordinating with companies in other countries.

distributed

Examples of specialty goods are:

expensive wine, fine watches, and furs

The stage in a product's life cycle when it may become too similar to existing products, and marketers need to communicate what makes it different from others products is called the stage.

maturity or mature

Marketers competing on product attributes and image are said to be participating in:

nonprice competition

Factors influencing the perception of quality are , appearance, and reputation.

price

The best appeal for shopping products is a combination of , quality, and service.

price or value

Price and quality are the two best ways to raise appeal for a good or service.

shopping

Value, quality, price, and style are closely scrutinized among similar products before a consumer decides which goods to purchase.

shopping

Products the consumer buys only after comparing value, quality, price, and style from a variety of sellers are goods or services called:

shopping products

When there is low competition, firms can use a price strategy to recover research and development costs and make as much profit as possible.

skimming

When a firm prices a new product very high to make optimum profit while there is little competition, it is said to be using:

skimming price strategy

Examples of convenience goods are:

candy, gum, milk, and gas

Grouping two or more products together and pricing them as a unit is called:

bundling

Everything that consumers evaluate when deciding whether to buy something is referred to as the:

total product offer

True or false: Value means that customers perceive a product as a good quality at a fair price.

true

Good quality at a fair price is the definition of .

value

When consumers calculate they look at the benefits of a product or service and subtract the costs to determine whether the benefits exceed the costs.

value

When levels of production change so do costs.

variable

Costs that change according to the level of production are called:

variable costs

Pricing based on the pricing activities of other companies in relation to a product is called - pricing.

Blank 1: competition Blank 2: based

The name of the pricing strategy that sets the price at, above, or below the price of competitors is - pricing.

Blank 1: competition Blank 2: based

When consumers look at all of the benefits of a product and subtract all of the costs related to its purchase, they are:

calculating the value of the product

A good or service is one that the consumer wants to purchase frequently and with minimum effort.

convenience

Candy, gum, milk, snacks, and gas are all examples of goods.

convenience

When a consumer insists on one specific brand, making the product a specialty good, it is known as brand .

insistence

The stages of the product life cycle are:

introduction, growth, maturity, and decline

An ongoing need for all marketers in order for their businesses to survive is:

product adaptation

Goods that are marketed through advertising in special interest or industry magazines or the Internet to reach specific market segments are goods.

specialty

goods are consumer products with unique characteristics and brand identity.

specialty

New products are getting rapid exposure to global markets through:

the Internet

Advantages of using RFID technology include:

the ability to locate a product at all times carrying more information than bar codes that they can be read from a distance

True or false: Ultimately, producers determine the price of a product.

False

Packaging serves several critical functions in the overall success of a product. Some of these functions are

Giving warranty information Attracting the buyer's attention Giving a potential buyer a sense of price, value, and uses. Explaining the benefits of what's inside

A person responsible for one brand or product line is called a .

Blank 1: brand or product Blank 2: manager

When the consumer will not accept a substitute for a particular product, the consumer has developed:

brand insistence

The degree to which customers are satisfied, like the brand, and are committed to further purchases refers to:

brand loyalty

Clothes, shoes, appliances, and auto repair services are examples of goods or services.

shopping