MKTG CH 12 TRUE OR FALSE
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
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
Quality modifications never seek to reduce product quality
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
Relatively few product ideas are put into the product development stage.
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
