MKT 5133 - Quiz 3

________Blank can be defined as anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, even ideas.

Product

Everyone in a target market falls into one of five groups based on their willingness to try the innovation, including innovators, early adopters, early majority, late majority, and laggards.

T

Late majority are product followers who are price-sensitive and risk-averse.

T

More than any other discriminator, style has the advantage of being difficult to copy.

T

One of the disadvantages of using style as a product discriminator is that consumer tastes change over time and what is considered stylish can quickly lose its appeal.

T

One use of the product life cycle tool is to track historical trends.

T

The business case analysis is an overall evaluation of a product and usually assesses the product's probability of success.

T

The essential benefit is the fundamental need met by a product.

T

The number of products purchased by the same customer is called repeat purchases.

T

Trial purchase is the focus of a product launch marketing plan.

T

What happens when the product category grows and is successful?

The company will recoup their initial costs and realize a return on their investment.

What is an overall evaluation of a product that usually assesses the product's probability of success?

business case analysis

During the evaluation stage of the product adoption process, consumers

combine all information and assess the product for trial purchase.

Internal sources of generating product ideas include

company salespeople

Market testing of a new product can take a long time, and this can result in

competitors being able to develop marketing strategies to counter a product launch.

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information and rely heavily on prior purchase behavior are called ________Blank goods.

convenience

In the context of product characteristics, companies translate the essential benefit into physical, tangible elements known as the ________Blank product.

core

In the context of product classifications, tangibility refers to the

physical aspects of a product.

When Dave and Bryon remodeled their kitchen, their contractor told them to pick out a refrigerator, dishwasher, and oven. These are examples of ________Blank goods.

shopping

For products designed for business markets, market testing is

smaller in scope than in consumer markets.

Once a year, Neera allows herself to purchase a new Coach handbag because she only buys Coach, but they are generally too expensive for her budget. This is an example of a(n) ________Blank good.

specialty

When new-to-the-world products are better versions of existing products that target, for the most part, existing customers, then these products are described as

sustaining innovations

The failure of Apple Newton, the first PDA, highlights the fact that

the best product technically is not always the most successful product.

Product followers who purchase older generation models with lower prices and fewer features are called

the late majority

Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with

what customers will pay

Unsought goods are characterized as being the kinds of goods that consumers

would rather not purchase at all

Rianna's boutique specialized in selling complete outfits with accompanying jewelry. These combinations, however, were very expensive and only appealed to a small percentage of the boutique's potential customers. Rianna decided to offer the individual clothing pieces and jewelry as separates and lowered their prices accordingly, selling twice as much merchandise in her first month. What method did Rianna use to increase her sales?

cost reduction

More than any other product discriminator, style offers the advantage to a company of being

difficult for competition to copy

Products that are new-to-the-world create a fundamental change in the marketplace and are known as

disruptive innovations

Many organizations are too small to have the resources for a national sales force to help discover new product ideas. As a consequence, they often use ________Blank as a link between the customer and company.

distributors

After Paul left the house with the burner on under a Farberware pan and it didn't cause a fire, he decided he would only buy that brand of cookware from then on. Paul was reacting to the ________Blank of the product

durability

Among the five groups of adopters, which group is considered critical to long-term success?

early majority

In the context of product testing, a beta test is designed to

encourage customers to evaluate and provide feedback on a prototype.

The ________Blank product extends the core product to include additional features, designs, and innovations that exceed customer expectations.

enhanced

70 to 80 percent of all new products worldwide

fail

When the product is wrong, skilled marketing communication and pricing sophistication can correct the problems.

F

When consumer product market tests are created, what four key decisions must be made, and why?

1. Where: The location of the market test is based on how well it reflects the potential target markets. Most market tests involve somewhere between two and five cities to mitigate regional differences in purchase patterns (if there are any). 2. How long: Most test markets run less than a year. The test should be long enough to include several purchase cycles. With many consumer products, purchase cycles are relatively short (days or weeks) so there is less need for a long market test. 3. Data: Critical information needed to make necessary decisions must be identified. Management frequently wants to know how long it takes for the product to move through the distribution system, tracking the product from manufacturing plant through to the point of sale (matching inventory as it leaves the plant with store sales). In addition, buyers are interviewed on their product experience. 4. Decision criteria: Metrics for further action must be identified. At this stage it is difficult to pull a product, but if the product fails in the market test, management is faced with a difficult decision—drop the product or send it back for major redesign. If the product is a success, then the product launch decision is much easier.

Explain the difference between a product line and a product mix, Give an example of each.

A product line is a group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction. Within a product line, strategies are developed for a single product, but also for all the products in the line. Combining all the products offered by a company is called the product mix. Small, start-up companies frequently have a relatively limited product mix, but, as companies grow, their list of products grows as well.

Which statement about the product life cycle timeline is accurate?

A product may move through the entire life cycle in months, not years.

Choose a product and explain how it moves through the product life cycle. Include the objective of each phase, the targeted customers, and product strategies.

Ch. 8, Page 108; Product: fitness bicycles; target customers: fitness enthusiasts, all ages

The three major activities in new product development are to (1) generate new ideas, (2) screen and evaluate ideas, and (3) define and test product concept.

F

What is the third and final activity in new product development?

Develop the product opportunity.

The product development team created a prototype of a new widget, and they wanted to get feedback from an internal source. Which person would they be most likely to approach?

Dorothea, who works in customer service

A go-to-market mistake happens when a good idea is prematurely eliminated during the screening process.

F

A stock-keeping unit (SKU) is a unique identification number used to track a product in the consumer's possession.

F

An individual moves through five stages before adopting a product, including awareness, notice, trial, testing, and feedback.

F

Betty's Bakery sells custom cakes, cookies, and other pastries. These represent Betty's Bakery's product line.

F

Early adopters are product watchers who seek out new products but are price-sensitive.

F

Luxury cars such as the Chevrolet Corvette are available with tires that enable a driver to continue driving even after the tire has been damaged. This is an example of Corvette using conformance quality as a product discriminator.

F

Reliability is a product's ability to deliver on features and performance characteristics promised in marketing communications.

F

The essential component in delivering value is the product price.

F

The product life cycle (PLC) generally refers to a product item rather than a product category.

F

Explain the four categories of consumer goods and give an example of each.

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information or considering other options and rely heavily on prior brand experience and purchase behavior are called convenience goods. These products include most items people buy regularly such as toiletries, gasoline, and paper products. Products that require consumers to do more research and compare across product dimensions such as color, size, features, and price are called shopping goods. Consumer products that fall into this category include clothes, furniture, and major appliances such as refrigerators and dishwashers. Specialty goods are a unique purchase made based on a defining characteristic for the consumer. The characteristic might be a real or perceived product feature such as Apple iPhone's easy user interface or brand identification like Porsche's reputation for building sports cars. The final categories of goods, unsought goods, are products that consumers do not seek out and, indeed, often would rather not purchase at all. Insurance, particularly life insurance, is not a product people want to purchase.

What happens to the sales revenue line on the PLC graph in the introduction and growth stages of the consumer adoption process?

It increases dramatically through both stages.

Betty's Bakery sells custom cakes, cookies, and other pastries. These represent Betty's Bakery's product line.

T

Desktop computers, cell phones, and tablet computers are examples of products considered disruptive innovations.

T

Different target markets will view the same product in completely different ways.

T

While screening and evaluating ideas, a go-to-market mistake happens when

a company fails to stop a bad product idea from moving into product development.

While screening and evaluating ideas, a stop-to-market mistake happens when

a good idea is prematurely eliminated during the screening process.

Sacramento's friends all bought the latest iPhone, but she didn't want to change from her current version. When her version was being discontinued, she finally switched to the new model. According to the diffusion of innovation, Sacramento was

a laggard

During which stage of the consumer product adoption process do consumers purchase a product with the intent of becoming a dependable user?

adoption

The rate at which new products become accepted is known as the ________Blank process.

adoption

What helps clarify the basic operationalization of a product during product testing, such as the physical characteristics and features?

an alpha test

Once a product has been developed and is on the market, the company can extend the product by

creating additions to existing product lines.

External sources of generating product ideas include

customers

An important issue for consumers is conformance, which is the product's ability to

deliver on features and performance characteristics promised in marketing communications.

The primary function of marketing and the entire organization, in a broader context, is to

deliver value to the customer

In the context of criteria used to prioritize product ideas, time to market refers to the time taken to

develop and get the product to market.

The innovation diffusion process is how long it takes a product to move from

first purchase to last purchase

The first step in the new product development process is to

generate new product ideas

New-to-the-world products are products that

have not been available before their introduction to the market.

When marketing managers ask questions like What has the category done in the past? and Where has the product been? they are focusing on

historical trends

Which group of adopters include prime candidates for beta testing and represent a good source of feedback late in the product development process or early in the product launch phase?

innovators

________Blank are product enthusiasts who enjoy being the first to try and master a new product

innovators

Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are

intangible characteristics

The product life cycle (PLC) defines the life of a product in four basic stages, which include

introduction, growth, maturity, and decline.

Customers view new products much differently than companies view them. Customers care only if a product is

new to them

An individual moves through five stages before adopting a product. During the awareness stage, consumers

know of the product but have insufficient information to become a dependable user.

Among the five groups of adopters, product avoiders who want to evade adoption as long as possible are known as

laggards

A product ________Blank is a group of products linked through usage, customer profile, price points, and distribution channels

line

When companies provide too few products in a product line, they run the risk of

missing important market opportunities

Combining all the products and product lines offered by a company is called the product

mix

Estimating total demand is a function of three separate purchase situations, which are ________Blank purchases.

new, repeat, and replacement

The introduction phase of the product life cycle for an industry is usually characterized by

no profits

An individual moves through five stages before adopting a product. During the interest stage, consumers

seek out added information about a product for further evaluation.

When products like cell phones are promoted as a safety device for working women and moms, this demonstrates that one way to find "new" markets is to

reposition the existing products targeting different customer segments.

An individual purchases a product for the purpose of making a value decision. They are in the ________Blank stage of the consumer product adoption process.

trial

New purchases of new products are called ________Blank purchases.

trial

Dorie wanted to find a way to get women to try the company's new shampoo because she knew if she could get them to use it, they would be sold on its features and value. Dorie was referring to a(n)

trial purchase