marketing chapter9

A gap analysis is done by

asking consumers to assess their expectations and experiences on dimensions of service quality.

Items for which the consumer compares several alternatives on criteria like price, quality, or style are known as

shopping Products

Idle production capacity occurs when

the service provider is available but there is no demand for the service.

While consumer products are purchased by the ultimate consumer, whereas Blank 1 of 1 products are purchase by organizations to assist them in providing other products for sale.

business

A ________ is a predevelopment statement that identifies a target market, customer needs, and what the product will be or do.

protocol

A full-scale operating model of the product or service under development is referred to as a

prototype.

In terms of brand loyalty, consumers prefer specific brands but will accept substitutes for which type of consumer product?

shopping product

You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test-drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall?

shopping product

When Subway introduced a new Southwestern Club sandwich in south Florida before launching it nationwide, it was engaging in

standard test marketing.

A product can be classified as new from all of the following perspectives except which?

the firm's competitors'

The primary reason there is greater inconsistency in services than in tangible goods is because

the people who provide services vary in capability or daily performance.

Match the following types of consumer products with the correct examples. 1. Convenience product2.Shopping product3.Specialty product4.Unsought product

1. Hand soap or an ATM withdrawal2.Briefcase or airline tickets3.Rolex watch or heart surgery4.Burial insurance or thesaurus

Match the following types of test markets to the correct description. 1. standard test market 2. controlled test market 3. simulated test market

1. a company develops a product and then attempts to sell it through normal distribution channels in a number of select cities 2. a company develops a product and contracts its entire test program to an outside service that can guarantee a specified percentage of the products potential distribution volume. 3. a company develops a products and run tests, often in a shopping mall, to get opinions on the product concepts, attributes, and usage from qualified participants.

An organization's Blank 1 of 2 and Blank 2 of 2 laboratories are a good way to develop ideas for new products (one word per blank).

Blank 1: research Blank 2: development

Match each of the four types of consumer products with its definition.

Convenience products => Items that consumers purchase frequently with a minimum of effort. Shopping products => Items for which the consumer compares several alternatives on several criteria. Specialty products => Unique items that the consumer makes significant effort to search out and buy. Unsought products => Items that the consumer does not know about or knows about but does not initially want.

Match each of the four types of consumer products with its definition.

Convenience products => Items that consumers purchase frequently with a minimum of effort.Shopping products => Items for which the consumer compares several alternatives on several criteria.Specialty products => Unique items that the consumer makes significant effort to search out and buy.Unsought products => Items that the consumer does not know about or knows about but does not initially want.

________, the process of managing consumers' interactions with the company, can be helpful to consider when organizations are screening new service ideas in the new-product process.

Customer experience management

Items that the consumer makes a special effort to search out and buy are known as Blank 1 of 1products.

Specialty

To address the intangible nature of her services and allow patients to compare them to those of others, a medical provider may

offer cues to customers such as comfortable waiting rooms and sparkling examination rooms with her diplomas on the wall.

Organizations may look to universities, inventors, or smaller nontraditional firms as sources of ________ innovation in the development of new product ideas.

open

Organizations may rely on new products coming from its own laboratories, often known as ________ laboratories.

research and development

For which of the following products is a test market most feasible?

A new breakfast cereal

Which of the following statements about product lines is most accurate?

An advantage of broad product lines is increased likelihood of access to large retail chain distribution.

The Apple innovation that leading car manufacturers are incorporating into their offerings that allows users to make calls, listen to music, and access messages by voice or touch while driving is referred to as

CarPlay.

________ is the stage of the new-product process that positions and launches a new product in full-scale production and sales.

Commercialization

Business products can be classified as which two of the following?

Components Support products

Which of the following would be considered good methods for generating ideas for new products?

Conducting consumer research Using one's own R&D laboratory Asking suppliers for ideas

Manufacturing the product efficiently and performing laboratory and consumer tests to ensure it meets protocol standards are part of which stage of the new-product process?

Development

The new-product process stage of development (stage 5) involves which two of the following?

Ensuring the product meets the standards established by the protocol Manufacturing the product

is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. (one word)

product

Which of the following characteristics is not one that distinguishes services from other products?

Immobility

Services marketing differs from the marketing of tangible goods in all of the following ways EXCEPT which of the following?

Inconvertibility

An airline ad may showcase new seats and emphasize their size in order to address which issue that is unique to services?

Intangibility

One of the biggest differences between marketing a service and a product is the Blank 1 of 1 of the purchase. The consumer can see and touch a product such as a new laptop computer, but he cannot touch or feel the service he hires to fix a computer.

Intangibility or tangibility

The new-product process stage of commercialization involves which of the following?

Launching full-scale production for a new product

Which of the following are reasons that some companies use simulated test markets rather than test markets?

Market tests may alert competitors to a firm's plans Market tests are time consuming Market tests are expensive

Open innovation helps organizations overcome __________, one of the organizational inertias common in new-product failures.

NIH barriers

In which stage of the new-product process does an organization use a SWOT analysis and develop a product protocol?

New-product strategy development

The new-product process starts with new-product strategy development. Place the steps that follow this one in order. (In other words, order Step 2 through 7, with the second step at the top.)

New-product strategy development 2. Idea generation 3. Screening and evaluation 4. Business analysis 5. Development 6. Market testing 7. Commercialization

________ consists of practices and processes that encourage the use of external as well as internal ideas as well as internal and external collaboration when conceiving, producing, and marketing new products and services.

Open innovation

Which two of the following are considered to be inventory costs of services?

Paying a person to provide a service Costs associated with equipment needed to provide a service

Considering the concept of product newness from an organizational point of view, match the following by risk and level of innovation.

Product line extension Threat of cannibalization A significant jump in technology Moderate risk Radical invention Revolutionary new products

What must the consumer learn about when a new product is a discontinuous innovation?

Proper use of the product Previously unencountered benefits

Market testing involves exposing the actual product to whom?

Prospective customers

________ can be classified according to whether they are delivered by people or equipment, or whether they are provided by business firms or nonprofit organizations.

Services

The emphasis of a marketing strategy for a dynamically continuous innovation would include

advertising to explain points of difference and benefits.

Which of the following are ways that test marketing is used?

To try different ways of marketing a new product. To determine whether consumer will actually buy a new product.

Which of the following are good sources of open innovation when firms look outside for new-product ideas?

Universities Smaller nontraditional firms Inventors and entrepreneurs

The new-product process stage of market testing involves which two of the following?

Using realistic purchase conditions to see if consumers will buy Exposing actual products to prospective consumers

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which of the following metrics should be used to measure sales performance?

annual percent sales change by city

Because services are intangible, they

are much more difficult for consumers to evaluate before the purchase.

A product is

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

Services can be classified according to whether they are

delivered by people or equipment.

Sales of business products are often the results of ________ demand; that is, sales of business products frequently result from the sale of consumer products.

derived

Idea generation is the stage in the new-product development process that

develops a pool of concepts to serve as candidates for new products.

Products that usually last over many uses, such as cars and appliances, are referred to as

durable goods.

The new Samsung Family Hub Refrigerator has a 21.5-inch touchscreen, ingredient-tracking fridge-cams, and an assortment of fridge apps. This is an example of which type of innovation?

dynamically continuous innovation

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

had too little market attractiveness.

Developing a pool of concepts to serve as candidates for new products is the __________ stage of the new-product process.

idea generation

The Philadelphia Phillies baseball team may have great hitting and pitching one day, and lose by 10 runs the next day. This is an example of a service being

inconsistent.

Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and her staff of 60 perform everyday services, such as walking the dog, picking up cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these tasks. One way she tries to avoid ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for the same client.

inseparability

Which of the following is considered an idea?

literacy

Industrial services are support products that include items such as

maintenance, repair, and legal services.

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as

market testing.

Marketers often look for cities that are viewed as being representative of U.S. consumers in terms of their demographic variables when they conduct

market tests.

A ________ is an item consumed in one or a few uses.

nondurable good

During concept testing, new-product ideas are presented to _______ to obtain their reactions.

potential consumers

Which two of the following are desirable characteristics when choosing a test market for a new product?

Cable system that is able to deliver different advertising to different homes City population that is demographically representative of target market

Match the type of new product innovation with its definition.

Continuous innovation => Requires no new learning by consumers Dynamically continuous innovation => Disrupts consumer's normal routine but does not require totally new learning Discontinuous innovation => Requires new learning and consumption patterns by consumers.

Which two of the following are types of tests available to organizations during the market testing stage of the new-product process?

Controlled test markets Standard test markets

Which of the following types of consumer products is characterized by relatively inexpensive items with widespread availability?

Convenience products

Which of the following are typical ways that a service can be classified?

Delivery by person or equipment Profit or nonprofit

________ is the stage of the new-product process in which an idea is turned into a prototype.

Development

Which of the following can be sources of variability in service delivery?

Differences between service provided by the same barber at various times of the day, week, or month Differences in appointment scheduling at two different branches of the same barber shop Differences between the service provided by two barbers working in the same shop

For which of the following will consumer education be most important, perhaps requiring personal selling to gain product trial?

Discontinuous innovation

Match each of the four I's of services with the correct definition of it.

Intangibility A service cannot be held, touched, or seen before the purchase decision. Inconsistency Because services depend on the people who provide them, their quality varies with each person's capability and day-to-day job performance. Inseparability In most cases, the consumer does not view the deliverer of the service as distinct from the service itself. Inventory Services are often costly in that the firm must maintain the personnel and equipment necessary to provide the services at the time the consumer wants them.

Match an attribute of services marketing with the correct example of associated problems.

Intangible => The consumer cannot evaluate the quality of an airline flight before getting on-board. Inseparable => Students' evaluations of their education will be influenced primarily by their perceptions of instructors, counselors, librarians, and other people at the university. Inconsistency => An opera performer may have a bad cold and give a worse-than-typical performance when you see her. Inventory => There are high costs associated with paying a physician to see patients but no one schedules an appointment.

The cost of paying the person used to provide the service along with any needed equipment is known as the Blank 1 of 1 cost.(one word)

Inventory

The new-product process stage of business analysis involves which two of the following?

Making financial projections for a new product Specifying the marketing strategy needed to bring a new product to market

Frito-Lay got the idea for Flamin' Hot Cheetos from a janitor who had been experimenting with adding chili-powder to the snack at home, illustrating the importance of using ________ in the new-product process.

employees

General Mills got the idea for Nature Valley granola bars when a marketing manager saw coworkers bringing granola to work in plastic bags, illustrating the importance of using ________ in the new-product process.

employees

One of the most effective methods to assess how well an organization is delivering service to its consumers is use a(n) ________ analysis, questioning them on their expectations and experiences.

gap

A product ________ is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same group, are distributed through the same outlets, or fall within a given price range.

line

Crapola has a single product Blank 1 of 1 that includes several varieties of granola, including "Number Two" and "Red, White, and Blueberry." (one word)

line

The use of a ______ allows a marketing manager to quickly identify areas where sales are lagging and begin to investigate why.

marketing dashboard

Comparing a new product's actual sales in various parts of the country to the goals set during new-product planning is an example of using

marketing metrics.

To determine if a product should be considered Blank 1 of 1 (one word), it can be compared with existing products or its level of required consumer learning may be considered, but the FTC also has a legal definition.

new

Which of the following is not a stage in the new-product process?

Problem definition

Which of these new products exposed a company to the least risk?

Product line extension

Which of the following types of consumer products is characterized by fairly expensive items available at a large number of selective outlets?

Shopping products

________ are similar to full-scale test markets but in a limited fashion, such as being run in shopping mall.

Simulated test markets

Which of the following types of consumer products is characterized by unique brands and high levels of brand loyalty?

Specialty products

Which of the following are common marketing reasons for new products to fail?

Poor product quality Low market attractiveness

External evaluations in the screening and evaluation stage of the new-product process often involve ________, consisting of preliminary testing of a new-product idea rather than an actual product.

concept tests

The screening and evaluation stage of the new-product process typically involves which two groups?

consumers employees

Items that the consumer purchases frequently and with a minimum of effort are known as

convenience product

Crowdsourcing is a creative way to seek new-product ideas from very large numbers of

customers and suppliers.

Though some intangible attributes like delivery or a warranty may also be important for a product like a washing machine, a(n) ________ like this is defined by having tangible attributes.

good

The use of open innovation can be useful in the ________ stage of the new-product process because it helps organizations find and execute product concepts externally and overcome the associated not-invented-here barriers.

idea generation

When a service provider is available but there is no demand for the service, this is known as

idle production capacity.

One of the basic ways in which services differ from tangible goods is that the service and the deliverer of it are ________ from each other.

inseparable

All of the different product lines offered by an organization are collectively referred to as a

product mix.

Country Buffet restaurant chain used Denver for ________ to evaluate new service concepts like individual portions and branded serving stations.

standard test marketing

Products such as tools and repair services that are used to assist in producing other products and services are referred to as

support products.

A good is a product that is defined as having ________ attributes.

tangible

marketing involves offering a product for sale on a limited basis in a defined area. (One word)

test

Considering the concept of product newness from an organizational point of view, match the following to the appropriate example.

Product line extension Fancy Feast cat food products. Brand extension Colgate Kitchen Entrees, a line of frozen dinners Radical invention First-ever 3D printer from 3D Systems

________ is the stage of the new-product process that internally and externally analyzes new-product ideas to eliminate those that warrant no further effort.

Screening and evaluation

Which of the following should be included in a protocol for new product development?

What the product will be and do Specific customer needs, wants, and preferences A well-defined target market

Concept tests in the screening and evaluation stage of the new-product process rely on written descriptions, sketches, or mock-ups rather than ________ to solicit feedback from potential consumers.

actual products

Modern products lines typically ensure that the quality of durable goods remains at stable levels, but because services depend on the people who provide them, quality may vary from person to person or day to day, in what is known as the ________ of services.

inconsistency

Services can be Blank 1 of 1 because the real people who provide them may vary in their abilities and motivations, or even their moods, resulting in differences in perceived quality.

inconsistent

There may be a great deal of interaction between a service provider and a consumer in which they co-create value together. In such situations, the customer perceives a high degree of ________ between the service provider and the company he or she represents.

inseparability

Sahil is having trouble deciding on which college to attend. While there are buildings, classrooms, and libraries to evaluate, the most important part of the service, the actual teaching and learning, is ________, making his decision more complex.

intangible

Because a service, either completely or partially, has qualities that cannot be touched, held, seen, tasted, or otherwise evaluated prior to purchase, it is described as being

intangible.

The term ________ is difficult to define and apply to products, and one can think about it from an organizational, consumer, or even a legal perspective.

'new'

________ is the stage of the new-product process in which features of the product and a marketing strategy are specified, and financial projections are made.

Business analysis

Which of the following types of products is characterized by derived demand?

Business products

________ products are purchased by the ultimate consumer, whereas ________ products are purchased by organization to assist them in providing other products for sale.

Consumer; business

Which of the following are classifications of new products based upon categorizing innovation according to the learning required of the consumer (high, medium, or low)?

Continuous innovation Dynamically continuous innovation Discontinuous innovation

The use of ________, a way of generating insights leading to marketing actions from thousands of people, is a creative way to gather ideas from customers.

crowdsourcing

Insignificant points of difference, incomplete protocols, and bad timing are among the reasons for

new-product failures.

In the ________ stage of the new-product process an organization defines the role of a new product in terms of the firm's overall objectives.

new-product strategy development

An organization may consider principles of customer experience management as it examines its employee commitment and skills in the internal approach of the ________ stage of the new-product process.

screening and evaluation

A product can be a good, ________, or idea and it must satisfy ________.

service; consumer needs

If a company is worried about tipping off competitors about the launch of a new product, it should not use Blank 1 of 1 test markets but instead perhaps pursue one of the other types.

standard

For business products, ________ become part of a final product while ________ are used to assist in producing other goods and services.

components; support products

testing, a new-product idea rather than an actual product is presented to potential consumers, often in written form, to obtain their reactions.

concept

The new-product process stage of screening and evaluation involves

determining which ideas should be eliminated from further effort.