Project/Service Management 2015 - 2019

"Terry, a company buyer, has the job of choosing a particular assortment of products that will meet the market's needs and the company's goals. Terry is responsible for the company's product A. mix. B. item. C. line. D. sales." "

" "A Mix. A product mix is the particular assortment of products that a business offers in order to meet its market's needs and its company's goals. Terry's job is to choose items for that mix. While Terry is not directly responsible for sales, he is responsible for buying products the company can sell. A product item is each individual good, service, or idea that a business offers for sale. A product line is a group of related product items. SOURCE: PM:003 SOURCE: LAP-PM-003—Mix & Match (The Nature of the Product Mix)"

"Successful positioning appeals to customers' A. emotions. B. five senses. C. desire to save money. D. logic."

"A Emotions. Successful positioning appeals to customers' emotions. It connects with their feelings rather than just their logical or rational thoughts. Positioning is not a tangible experience that involves the five senses. A product may be positioned as a "value item," or a way for customers to save money, but not all successful positioning depends on this desire. SOURCE: PM:042 SOURCE: PM LAP 19—Getting Piece of Mind (Factors Used to Position Products/Services)"

"The receptionist at a medical practice schedules patients' appointments for Dr. Langdon. Typically, Dr. Langdon needs 15 minutes for a sick-patient visit and 30 minutes for a well-patient's annual check-up. This is an example of a service standard related to A. regulations. B. quality. C. cost. D. time."

"D Time. Time standards are often tied to various types of services that a business might offer, such as medical and dental services. Doctors usually allocate a certain amount of time for a patient based on the patient's needs. A sick patient with a common ailment (cold) can usually explain specific symptoms, allowing the doctor to focus on those symptoms and provide a diagnosis fairly quickly. An annual check- up usually involves more discussion with the patient and multiple examination procedures, so this type of visit requires more of the doctor's time. Cost standards are used to specify project or product costs. Quality standards involve the degree of excellence expected from a product. Regulations often influence various types of business standards, but they are not types of standards. SOURCE: PM:019 SOURCE: PM LAP 8—Raise the Bar (Grades and Standards)"

"Which of the following departments in many businesses is responsible for generating product ideas: A. Sales and marketing B. Information technology C. Executive management D. Research and development"

"D Research and development. Many large businesses have research and development departments that are responsible for generating ideas for new products. These departments conduct research, analyze information, and review new technology to generate ideas. They often begin with a problem or an issue and generate ideas to solve the problem or address the issue. The sole function of these departments is to develop new products or update existing products. Information technology deals with the sharing of information. Executive management is responsible for the overall operation of the business. Sales and marketing is responsible for selling the product. SOURCE: PM:128 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2010). Marketing dynamics: Teacher's edition (2nd ed.) [p. 279]. Tinley Park, IL: Goodheart-Willcox Company, Inc."

"Which of the following marketing strategies is appropriate for the decline stage of the product life cycle: A. Increasing promotion expenditures B. Marketing to early adopters C. Expanding the product line D. Selling the product online"

"D Selling the product online. Selling the product online is an appropriate marketing strategy for the decline stage of the product life cycle. Sometimes, marketers can have success distributing a product through non-traditional channels. Marketing to early adopters would be a strategy appropriate for the introduction stage. Expanding the product line is something that happens during the growth stage. Marketers usually decrease promotion expenditures during the decline stage. SOURCE: PM:024 SOURCE: PM LAP 18—Get a Life (Cycle) (Product Life Cycles)"

"The following statement appears on a company's website: ""Unlike our competitors, Naturally Yours Cosmetics uses organically-grown ingredients in its facial scrubs and lotions."" What strategy is the company using to position its line of skin-care items? A. Product reliability B. Price C. Customization D. Unique attributes"

"D Unique attributes. Product positioning is the customer's image or impression of a product as compared to that of competitive products. In the example, the company emphasizes that its products' ingredients are organically grown. Because organic ingredients are product attributes, Naturally Yours Cosmetics is using the attributes to set itself apart from other cosmetic companies that provide similar products. The business is not using price, customization, or product reliability to position its skin-care line. SOURCE: PM:042 SOURCE: LAP-PM-019—Getting Piece of Mind (Factors Used to Position Products/Services)"

"Which of the following examples illustrates the concept of product in the hospitality industry: A. A bed and breakfast advertising private baths and a fireplace in each room B. A conference center making reservations at other properties C. A resort promoting that it treats guests like family D. A cruise ship providing a list of rental car agencies located at ports-of-call"

"A A bed and breakfast advertising private baths and a fireplace in each room. This illustrates the product element of marketing in the travel industry. The product is the accommodations. The resort is focusing on how it treats its guests. The cruise ship is providing information. The conference center is offering additional services. SOURCE: PM:081 SOURCE: Kolter, P., Bowen, J.T., & Makens, J.C. (2014). Marketing for hospitality and tourism (6th ed.) [p. 13]. Upper Saddle River, NJ: Pearson Education, Inc."

"When a customer is willing to purchase only one specific brand, this is referred to as brand A. strategy. B. recognition. C. preference. D. insistence."

"D Insistence. When consumers are in the brand insistence stage, they will not buy a substitute brand. Brand recognition is the stage of brand loyalty in which consumers are made aware of a brand's existence. Brand preference is the stage of brand loyalty in which consumers prefer to purchase a certain brand but will accept substitutes if the brand is not available. A brand strategy is the action a business takes with a brand in order to accomplish its goals. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (Nature of Product Branding)"

"Positioning shows where a product stands in relation to A. government standards. B. marketers' expectations. C. its past performance. D. the competition."

"D The competition. Positioning shows where a product stands in relation to the competition. It's meant to help customers understand how the product is unique from all the other options. Positioning does not relate to marketers' expectations, past performance, or government standards. SOURCE: PM:042 SOURCE: PM LAP 19—Getting Piece of Mind (Factors Used to Position Products/Services)"

"Which of the following is not a reason to use contraction as a product mix strategy: A. To avoid conflict with another product in the product mix B. To make room for other products C. To protect the company from a legal liability D. To attract a new target market"

"D To attract a new target market. Contraction is the deletion or removal of a product or product line from a company's product mix. A business would need to add to its product mix, not delete from it, in order to attract a new target market. Products or product lines may be deleted in order to make room for others the company wishes to add. A product or product line may be deleted because it is in conflict with other products offered. A company may decide to drop a product or product line because of the potential liability associated with the products. SOURCE: PM:003 SOURCE: PM LAP 3—Mix and Match (The Nature of the Product Mix)"

"Why would a business remove or delete product items or lines from its product mix? A. To appeal to a new market B. To offer customers complementary products C. To increase market risk D. To avoid legal liabilities"

"D To avoid legal liabilities. Product liability has become a major problem for many companies. Rather than risk a lawsuit, a company will remove the product from its product mix. The use of an expansion strategy will enable companies to appeal to a new market and to offer customers complementary products. Increasing market risk is a disadvantage associated with the contraction strategy. SOURCE: PM:003 SOURCE: PM LAP 3—Mix and Match (The Nature of the Product Mix)"

"Why do companies use brands for their products? A. To demonstrate creativity B. To charge higher prices C. To encourage materialism D. To differentiate their products"

"D To differentiate their products. Companies want their products to be perceived as different from those of other companies. They can do this through the use of brands. Charging higher prices and encouraging materialism are seen by consumers as negative aspects of brands. Creating an appealing brand often requires creativity, but demonstrating creativity is not a purpose of using brands. SOURCE: PM:021 SOURCE: PM LAP 6—It's a Brand, Brand, Brand World! (Nature of Product Branding)"

"Having a narrow product mix allows a company to A. specialize in specific product lines. B. mass market its products. C. produce less efficiently. D. appeal to customers with a variety of needs." "

" "A Specialize in specific product lines. A narrow product mix consists of a limited number of product lines. This means the company cannot meet a wide variety of consumer needs, but it does enable the company to specialize, to produce efficiently, to relate the products to the target market, and to concentrate on marketing the product lines. SOURCE: PM:003 SOURCE: LAP-PM-003—Mix and Match (The Nature of the Product Mix)"

"When a business offers services such as an information desk, child-friendly restrooms, and a lost-and- found department, it is providing customers with __________ services. A. shopping B. convenience C. community D. impulse" "

" "B Convenience. Customers appreciate businesses that provide services that meet their needs and are convenient. All types of businesses offer information desks, child-friendly restrooms, and a lost-and-found department. Shopping services might include gift wrapping, personal shoppers, and valet parking. Impulse is an unrelated term. Community services are activities undertaken by the store for the benefit of the community. SOURCE: PM:013 SOURCE: LAP-PM-001—Customer Service Supersized (The Role of Customer Service in Positioning/Image)"

"A product idea is feasible if it A. meets sales quotas. B. creates a competitive advantage. C. costs a lot to produce. D. is a durable good." "

" "B Creates a competitive advantage. Product research and development is an expensive process for a business. Before a business invests time, personnel, and money to take an idea and turn it into a product, it must determine if the product is feasible, or reasonable, to make and market successfully. The idea is feasible if it translates into a product that creates a competitive advantage for the business. A competitive advantage is the edge achieved by a business that offers something better than its competitors. A business bases its sales quotas on existing information rather than product ideas. Costs are a consideration when determining product idea feasibility; however, high production costs often make product ideas impractical. Because services are often feasible product ideas, the ideas do not need to be durable goods. SOURCE: PM:129 SOURCE: NPD Solutions. (2016). Assessing the feasibility of a new product. Retrieved September 17, 2018, from http://www.npd-solutions.com/feasibility.html"

"What do many businesses identify and strive to improve in order to attract customers and be competitive? A. Commission plans B. Service standards C. Personal characteristics D. Operating quotas" "

" "B Service standards. Service standards are specifications for the quality of service that a business intends to provide. Many businesses identify standards for service and continually work to improve them in order to attract customers and be competitive. By having high service standards, businesses are often able to set themselves apart from competitors. Businesses do not identify and strive to improve commission plans, personal characteristics, and operating quotas in order to attract customers and be competitive. However, favorable commission plans might attract quality employees. SOURCE: PM:273 SOURCE: Ray, L. (2017, November 21). Performance standards for customer service. Retrieved September 17, 2018, from https://yourbusiness.azcentral.com/performance-standards- customer-service-1299.html"

"A business manager who wants to increase the number of items the business offers needs to decide whether the new items will be compatible with the business's A. level of service. B. patronage motives. C. current product mix. D. advertising objectives." "

" "C Current product mix. The product mix is the particular assortment of products that a business offers in order to meet its market's needs and its company goals. Most businesses have an image that appeals to their target market and add items to the product mix that are consistent with the types of products they currently handle. Patronage motives are emotional or rational buying motives that cause people to choose one business over another. Level of service is the number of services that a company offers its customers and the speed at which those services are performed. Advertising objectives are the specific purposes or goals of individual advertisements or advertising campaigns. SOURCE: PM:006 SOURCE: Claessens, M. (2015, June 1). Product mix decisions - Width, length, depth and consistency. Retrieved September 17, 2018, from https://marketing-insider.eu/product-mix-decisions/"

"Ways that a business's website can provide customer-service support are by offering A. chat rooms, account numbers, and financial information. B. free delivery, email options, and credit authorizations. C. product/service updates, FAQs page, and an online help desk. D. online billing, sales reports, and toll-free telephone number." "

" "C Product/Service updates, FAQs page, and an online help desk. Providing around-the-clock access to information needed by customers to free up the sales staff on the floor to sell is a productive way that a business's website can provide customer service. Customers seeking post-sales support can be encouraged to access the website to locate answers, product information, etc. The alternatives are not ways that a business's website provides customer-service support. SOURCE: PM:036 SOURCE: Dun & Bradstreet. (2000-2017). Service & support. Retrieved September 19, 2017, from http://www.dnb.com/utility-pages/customer-service.html"

"When evaluating customers' experiences, a company should keep in mind that customers are most often influenced by their interactions with the company's A. negotiation committee. B. suppliers. C. labor union. D. employees." "

" "D Employees. The way that customers experience purchase transactions affects how they view the company. Good experiences often bring the customers back, while unpleasant experiences can prompt customers to purchase from the company's competitors. The ways that employees interact with customers have a major impact on the customers' experiences and their perceptions of the company. Helpful, courteous, and knowledgeable employees foster good customer experiences. Employees who are indifferent, rude, and lacking in knowledge often have a negative effect on the customers' experiences. Customers do not usually interact with the company's suppliers, labor union, or negotiation committee. SOURCE: PM:138 SOURCE: Brookins, M. (2011, September 28). Top ten ways to improve a customer's experience. Retrieved September 19, 2017, from http://smallbusiness.chron.com/top-ten-ways-improve- customers-experience-25745.html"

"During the first year that Rick owned his new car, the vehicle seemed to spend more time in the repair shop than it did on the road. Rick contacted the auto manufacturer and demanded his money back because the car seemed to be defective, but the manufacturer refused. A member of the Better Business Bureau agreed to act as an impartial third party in the dispute. The BBB member studied the facts of the case, determined that the car was indeed defective, and decided how much money the carmaker would be required to refund to Rick. This is an example of A. arbitration. B. arbitron. C. attrition. D. automation."

"A Arbitration. When two parties engage in a dispute that they are unlikely to resolve on their own, an impartial third party may step in. The impartial third party, called an arbitrator, hears both sides' arguments, studies the facts of the case, and then determines a remedy for the situation. This process is called arbitration. The Arbitron Ratings Company uses consumer-generated data to analyze radio advertising. Attrition is a natural reduction in numbers of people due to death, retirement, job changes, etc. Automation is a production method in which machines do tasks automatically. SOURCE: PM:017 SOURCE: LAP-PM-007—Protect and Serve (Consumer Protection)"

"Which of the following situations is an example of product bundling: A. Buy item Y and receive service W free for six months. B. Buy item Z and receive a $50 manufacturer's rebate. C. Buy product X and receive a $15 discount if it is paid within 10 days. D. Buy service M and receive a coupon to use for future purchases."

"A Buy item Y and receive service W free for six months. Product bundling involves combining goods and/or services and offering them to customers as one product for a lower price than if the customers were to buy all of the products individually. Often, businesses bundle new products with existing products in order to create interest in the new product. A business that provides a free service for a certain amount of time hopes that the customer gets used to having the service and will pay to continue receiving the service once the free offer expires. Businesses may use rebates, invoice discounts, and coupons in conjunction with product-bundle strategies. SOURCE: PM:041 SOURCE: Boone, G., & Kurtz, D.L. (2013). Contemporary marketing 2013 (p. 660). Mason, OH: South- Western Cengage Learning."

"The primary goal during the brainstorming process is to A. come up with as many ideas as possible. B. analyze each idea as it is presented. C. rate each idea in relation to one another. D. come up with a set number of ideas within a certain time."

"A Come up with as many ideas as possible. Brainstorming is a creative-thinking technique involving the identification of as many different ideas as possible during a certain time frame. The process involves getting ideas out in an open, nonjudgmental environment. Therefore, rating and analyzing ideas are not primary goals during brainstorming sessions. SOURCE: PM:127 SOURCE: LAP-PM-127—Unleash Your Mind (Techniques for Generating Product Ideas)"

"One way that advances in technology are impacting the product/service management function is by making it possible for businesses to A. improve existing products. B. eliminate human errors. C. simplify production systems. D. control customer preferences."

"A Improve existing products. As a result of advances in technology, new materials and operating techniques have been developed. These materials and techniques have made it possible for businesses to improve existing products. This impacts the product/service management function because it enables businesses to extend the life of existing products and keep them on the market. Businesses have found that it is usually less expensive to update existing products than to develop entirely new products. Advances in technology are allowing businesses to do this. Advances in technology often help to reduce human errors but cannot completely eliminate them. Advances in technology often make production systems more complex because they rely on complicated computer systems. Businesses are not able to control customer preferences. SOURCE: PM:039 SOURCE: BusinessKnowledgeSource.com. (2003-2010). Pros and cons of improving or changing existing products. Retrieved July 28, 2014, from http://www.businessknowledgesource.com/marketing/pros_and_cons_of_improving_or_chan ging_existing_products_023885.html"

"Most marketers cannot expect to maintain their profit rates unless they A. introduce new products from time to time. B. test-market new products. C. allow products to move through the product life cycle. D. form venture teams to assist with product/service management."

"A Introduce new products from time to time. A certain percent of all industry profits come from successful new products. Product/Service management lets the business know what funds will be needed for research, testing, modifying, and producing products. Inadequate product/service management can result in product/service mistakes that may cost the company a large sum of money. Marketers do not allow products to move through the product life cycle; products do that naturally. Venture teams are small groups composed of representatives from different areas of a company for the purpose of seeking new ventures, or opportunities, for the business. They are usually used by large businesses. Not all products need to be test-marketed because it is costly, delays entry into the full market, may not give an accurate picture of performance, provides no guarantee of actual success, and the idea may be stolen by competitors while it is being tested. SOURCE: PM:001 SOURCE: LAP-PM-017—Rapping Up Products (Nature of Product/Service Management)"

"The manufacturer of a defective clock refused to honor the clock's guarantee and give the customer a refund. The customer's right to demand satisfaction from the clock manufacturer is known as A. legal recourse. B. a guarantee. C. a warranty. D. liability lawsuit."

"A Legal recourse. Legal recourse is the right to file a lawsuit against a company that does not fulfill its obligations under a warranty or a guarantee. A guarantee is a promise made by the seller to the consumer that the seller will refund the consumer's purchase price if the product does not perform as expected. A liability lawsuit is legal action against a company whose product has caused personal injury. A warranty is a promise made by the seller to the consumer that a seller will repair or replace a product that does not perform as expected. SOURCE: PM:020 SOURCE: LAP-PM-004—Promises, Promises (Warranties and Guarantees)"

"When a business negotiates a contract that requires the vendor to arrange for transportation, the business is negotiating the A. logistics. B. premiums. C. payments. D. allowances."

"A Logistics. Logistics involves all aspects of handling and transporting goods. It is an important part of negotiating a contract because transportation charges are often costly. As a result, most businesses negotiate who will pay those charges. In some cases, a business might prefer to arrange and pay for transportation, while other times, a business might want the vendor to be responsible for transportation. Both parties try to negotiate the best deal. For example, a business might agree to pay for transportation if the vendor agrees to give a larger discount. The business is not negotiating payments, premiums, or allowances when requiring the vendor to arrange for transportation. SOURCE: PM:264 SOURCE: Investopedia. (2018, July 13). Logistics. Retrieved September 13, 2018, from https://www.investopedia.com/terms/l/logistics.asp"

"Which of the following areas of product/service management is important in attracting customers and in protecting products: A. Packaging B. Concept testing C. Labeling D. Idea generation"

"A Packaging. Packaging is placing the product in a protective wrap or container before it is offered for sale. It is an area of product management that has increased in importance as the number of items available to consumers has increased. The package must be eye-catching in order to attract purchasers. It must also protect the product, create a product image ranging from economy to luxury, and identify the product brand. Good packaging helps to increase sales. Labeling provides information about the product and attracts customers but does not protect the product. Idea generation is the process of thinking up or creating new plans, schemes, and thoughts. Concept testing is exploring the concept, or idea, for a product in order to obtain feedback. SOURCE: PM:001 SOURCE: LAP-PM-017—Rapping Up Products (Nature of Product/Service Management)"

"What characteristic of the hospitality and tourism product is described in the following scenario: If an airline sells 150 of 200 seats on an airplane, the airline cannot inventory the seats until the next flight and sell 250 seats. A. Perishability B. Seasonality C. Standardization D. Inseparability"

"A Perishability. If the 50 seats on the airplane go unsold, they are lost forever because they cannot be stockpiled or inventoried for a later flight. Inseparability refers to the need for the customer and service provider to be present for the service to be performed—the service provider cannot be separated from the service. Although businesses train employees to provide the same quality of outstanding service, in effect attempting to standardize the service provided, services are performed by people whose personalities, attitudes, and abilities vary. While many hospitality and tourism services are seasonal, the scenario does not relate to that characteristic. SOURCE: PM:081 SOURCE: Kotler, P., Bowen, J.T., & Makens, J.C. (2010). Marketing for hospitality and tourism (5th ed.) [pp. 36-39]. Boston: Prentice Hall."

"Which of the following is an important factor that hotel restaurants consider when deciding when to buy food items: A. Perishability B. Dependability C. Nutrition D. Sanitation"

"A Perishability. Many food items are perishable and must be ordered in smaller quantities and on a more frequent basis. For example, fresh produce and bakery goods spoil more quickly than other types of food items, such as canned and frozen goods. Restaurants consider the perishability of food items when deciding when to buy. As a result, restaurants usually buy perishable items several times a week to make sure the quality is acceptable. Dependability is a factor that restaurants consider when selecting a vendor. Restaurants do not consider nutrition and sanitation when deciding when to buy food items. SOURCE: PM:262 SOURCE: Reynolds, J.S., & Chase, D.M. (2014). Hospitality services (3rd ed.) [p. 137]. Tinley Park, IL: The Goodheart-Willcox Co."

"What strategy can make or break a business's product mix? A. Positioning B. Contracting C. Altering D. Expanding"

"A Positioning. Positioning is a product-mix strategy in which a business creates a certain image or impression of a product in the minds of consumers. Businesses must determine the best position to seek for their products because correct positioning is necessary to sales and profits. Positioning can make or break a business's product mix. Contraction is a product-mix strategy in which a business removes, or deletes, product items or product lines from its product mix. Alteration is a product-mix strategy in which a business makes changes to its products or product lines. Expansion is a product-mix strategy in which a business expands its product mix by adding additional product items or product lines. SOURCE: PM:003 SOURCE: PM LAP 3—Mix & Match (Nature of the Product Mix)"

"Why must a business be very careful about eliminating products? A. To prevent damaging the company's image B. To comply with government regulations C. To make higher prices acceptable D. To avoid the need for commercialization"

"A To prevent damaging the company's image. Elimination of products must be done carefully to prevent damaging the company's image. Some weak products can be dropped immediately, but others should be eliminated slowly so that customers have time to find replacements. Some companies continue to provide service for a discontinued product in order to retain customer goodwill. Eliminating weak products is not governed by law. A weak product has already been through commercialization and has failed to be profitable. Eliminating weak products will not make higher prices acceptable to consumers. SOURCE: PM:001 SOURCE: PM LAP 17—Rapping Up Products (Nature of Product/Service Management)"

"Which federal agency has the responsibility for inspecting meat that is shipped across state lines? A. U.S. Department of Agriculture B. U.S. Department of Commerce C. Federal Trade Commission D. Interstate Commerce Commission"

"A U.S. Department of Agriculture. Federal law states that all meat that is shipped across state lines is subject to inspection by the U.S. Department of Agriculture (USDA). The U.S. Department of Commerce grades fish that is sold for commercial consumption, but this is a voluntary program. The Interstate Commerce Commission regulates rates and other aspects of commercial transportation between states. The Federal Trade Commission administers and enforces antitrust laws to prevent price fixing and to prohibit unfair competitive practices. SOURCE: PM:019 SOURCE: LAP-PM-008—Raise the Bar (Grades and Standards)"

"Which of the following is an example of a potential unethical pricing issue as it relates to social responsibility: A. A manufacturing company increases prices on certain items to cover expenses to add new pollution-control devices. B. A pharmaceutical company sells a common lifesaving drug at extremely high prices in specific geographical regions. C. A clothing retailer deeply discounts goods in an effort to reduce excess inventory from the previous selling season. D. An oil company substantially increases its gasoline prices when the workers at a large refinery go on strike."

"B A pharmaceutical company sells a common lifesaving drug at extremely high prices in specific geographical regions. Social responsibility is defined as the duty of business to contribute to the well- being of society. Because the drug is common and has the capacity to save lives, an unethical issue is possible if the drug is sold at prices so high that some people can afford the drug while others cannot, which might be considered price discrimination. An oil company that substantially increases its gasoline prices when the workers at a large refinery go on strike does not necessarily present an unethical issue since the refinery lacks human resources to supply enough of the product to meet demand. A manufacturing company that increases prices on certain items to cover expenses to add new pollution- control devices is acting in an ethical manner and employing social responsibility to the natural environment. A clothing retailer that deeply discounts goods in an effort to reduce excess inventory from the previous selling season is not conducting socially irresponsible activities. SOURCE: PI:015 SOURCE: Jiranek, J. (2017, February 20). Who watches the watchmen: The ethics of drug price inflation. Retrieved September 10, 2018, from https://pjb.mycpanel2.princeton.edu/wp/index.php/2017/02/20/who-watches-the-watchmen- the-ethics-of-drug-price-inflation/"

"Which of the following is an example of a purchase experience touchpoint: A. Word-of-mouth B. Direct sales C. Customer satisfaction surveys D. Warranty programs"

"B Direct sales. Touchpoints are the interactions that customers have with the business, and they can be divided into three categories: pre-purchase, purchase, and post-purchase experiences. Direct sales would occur during a purchase experience. Other examples of purchase experience touchpoints are physical stores and contact with customer representatives. Word-of-mouth is an example of a pre- purchase touchpoint. Customer satisfaction surveys, and warranty programs are examples of post- purchase experience touchpoints. SOURCE: PM:207 SOURCE: Flynn, J. (2013, October 31). Purchase touchpoints: Maximizing the brand experience. Retrieved July 28, 2014, from http://blog.hultmarketing.com/blog/purchase-touchpoints- maximizing-the-brand-experience"

"While facilitating a brainstorming session to generate product ideas, Gavin told Amy that her idea would be too expensive to implement. What did Gavin do wrong while facilitating the brainstorming session? A. Ignoring a group member B. Evaluating the idea C. Asking for opinions D. Exceeding the time limit"

"B Evaluating the idea. Brainstorming is a creative-thinking activity that businesses often use to generate product ideas. Many businesses find that it is beneficial to have several employees involved in the process because that helps generate a lot of different ideas. The facilitator is a person who guides the brainstorming session. The facilitator helps keep the members of the group brainstorming session on track. This person keeps order, encourages participation, fosters a creative environment, and documents the ideas for further review. The facilitator should not evaluate the ideas or initiate debate during a brainstorming session. These actions may hinder the creative-thinking process and discourage group members from participating. Gavin did not ignore Amy, but provided his opinion of her idea. There is not enough information provided to determine if Gavin exceeded the brainstorming time limit or asked others for their opinions. SOURCE: PM:128 SOURCE: Mind Tools. (1996-2016). Brainstorming: Generating many radical, creative ideas. Retrieved August 25, 2016, from http://www.mindtools.com/brainstm.htm"

"How food products can be used generally is determined by their A. traits. B. grades. C. labels. D. brands."

"B Grades. Grades are ratings assigned to certain products. The U.S. Department of Agriculture has identified different grades for about 300 food products. These grades determine how the products can be used. Some lower grades indicate that the foods must be used as ingredients in other food products rather than for straight human consumption. Traits are distinguishing characteristics. A label is information attached to or printed on a product by the manufacturer. A brand is a name, term, symbol, or design that identifies a product and distinguishes it from competitors' products. SOURCE: PM:019 SOURCE: PM LAP 8—Raise the Bar (Grades and Standards)"

"One way that advances in technology help businesses keep existing products on the market and extend their life cycle is by A. minimizing inventory. B. improving performance. C. attracting attention. D. demonstrating creativity."

"B Improving performance. Advances in technology that have allowed for the development of new materials and operating techniques are helping businesses improve the performance of their products. By improving existing products, businesses are able to keep them on the market and extend their life cycle. Businesses have found that it is usually less expensive to update existing products than to develop entirely new products. Advances in technology are allowing businesses to do this. Advances in technology do not help businesses keep existing products on the market by minimizing inventory, attracting attention, or demonstrating creativity. SOURCE: PM:039 SOURCE: Create Capture Connect. (2014, January 31). 5 tips to extend the product life cycle. Retrieved September 10, 2018, from http://createcaptureconnect.com/product-creation/5- tips-extend-product-life-cycle/"

"A group of related products is called a product A. item. B. line. C. mix. D. expansion."

"B Line. An example of a product line would be bread, rolls, cookies, and cakes in a supermarket. Product items are each individual good, service, or idea that a business offers for sale. A product mix is the particular assortment of products that a business offers in order to meet its market's needs and its company's goals. Expansion is a product mix strategy in which a business expands its product mix by adding additional product items or product lines. SOURCE: PM:003 SOURCE: LAP-PM-003—Mix and Match (The Nature of the Product Mix)"

"The assortment of merchandise that a firm sells is called its product A. demand. B. mix. C. depth. D. classification."

"B Mix. The product mix is the particular assortment of products that a business offers in order to meet its market's needs and its company's goals. Depth refers to the quantity of goods offered in the product line. Demand is the quantity of a good or service that buyers are ready to buy at a given price at a particular time. Product classification refers to the type of product, whether consumer or industrial. SOURCE: PM:003 SOURCE: PM LAP 3—Mix & Match (Nature of Product Mix)"

"Coca-Cola, General Mills, and Pillsbury are examples of __________ brands. A. generic B. national C. private D. unprotected"

"B National. National brands are those for which the manufacturer assumes all the responsibility of branding. They are also called manufacturers' brands. Private brands are owned by middlemen. Generics are unbranded items that are plainly packaged, have standard or lower quality, are sold at lower prices than branded products, and receive little or no promotion. All of the brands listed are protected by trademark laws. SOURCE: PM:021 SOURCE: LAP-PM-006—It's a Brand, Brand, Brand World! (Nature of Product Branding)"

"As a result of ongoing product updates and changes, businesses must address ethical issues associated with A. international markets. B. planned obsolescence. C. demographics. D. taxation."

"B Planned obsolescence. Business ethics are the basic principles that govern a company's actions. Planned obsolescence occurs when a business releases a product and plans to discontinue it and replace it with an updated version of the item. This often occurs with technology-based products such as video games and computer software. When a business plans product updates on an annual basis, its customers are often required to purchase the new version in order to use the core product. This can be a financial burden on consumers and can present an ethical situation for the business. International markets, demographics, and taxation are not ethical issues that businesses often encounter when planning product updates and changes. SOURCE: PM:040 SOURCE: Kotler, P., & Armstrong, G. (2008). Principles of marketing (12th ed.) [pp. 574, 576-577]. Upper Saddle River, NJ: Prentice-Hall."

"Ensuring that customers have the correct perception of a product is one of the goals of product A. development. B. positioning. C. management. D. screening."

"B Positioning. Product positioning is the consumer's image or impression of a product as compared to that of competitive products. One of the goals of product positioning is to make sure that consumers perceive a product in the way that the business intended. This involves communicating information about the product's attributes and characteristics so customers will have a clear perception of its image. Product screening is the process of considering each idea for a new product and discarding those that seem unworkable. Product development is the stage in the creation of a new product in which a working model may be tested, modified, and retested, and production costs are estimated and final details of the product are planned. Product management involves monitoring and developing one or more existing products. SOURCE: PM:042 SOURCE: Richards, L. (2015). The importance of product positioning to the marketing plan. Retrieved September 2, 2015, from smallbusiness.chron.com/importance-product-positioning- marketing-plan-24275.html"

"Shonda works at a hotel, and her boss expects her to book at least 10 rooms every day. What type of standard is this? A. Quality B. Quantity C. Time D. Cost"

"B Quantity. Quantity standards specify the amount of work to be done. If Shonda's boss expects her to book at least 10 rooms every day, then she is being judged by a quantity standard. Quality standards indicate the degree of excellence to be expected from a good or service. Time standards monitor the amount of time it takes to complete an activity. Cost standards are used to specify project or product costs. SOURCE: PM:019 SOURCE: LAP-PM-008—Raise the Bar (Grades and Standards)"

"Which of the following is a characteristic of product extensions in the hospitality and tourism industry: A. Necessary part of the hospitality and tourism experience B. Related to the original product C. Expensive addition to a trip D. Sold only to generate income"

"B Related to the original product. A product extension is an additional product, related to but different than the main hospitality and tourism product. For example, the main product might be a cruise, while the product extension is a tour of the port city before departure. The product extension adds value to the original product and often meets the needs of customers. Product extensions are extras rather than necessary parts of the hospitality and tourism experience. Extensions are not necessarily expensive, such as a sightseeing tour of a city. Staff often suggest product extensions to meet customers' needs, not simply to generate income. SOURCE: PM:099 SOURCE: Hirsh, L. (2017, November 21). What is product extension in marketing? Retrieved September 13, 2018, from http://smallbusiness.chron.com/product-extension-marketing- 65988.html"

"Giving customers a list of locations at which they can obtain repair or replacement as part of a warranty or guarantee provides the customer benefit of A. increased profits. B. service information. C. legal recourse. D. reduced anxiety about purchases."

"B Service information. Service information is a customer benefit from warranties and guarantees which could include giving customers a list of locations at which they can obtain repair or replacement. Legal recourse concerns customer rights when a company does not fulfill its obligations under a warranty or a guarantee. Reduced anxiety about purchases refers to a customer benefit concerning problems that will be taken care of by a warranty, thereby relieving a customer's anxiety about spending money. Increased profits is a business benefit of warranties and guarantees. SOURCE: PM:020 SOURCE: PM LAP 4—Promises, Promises (Warranties and Guarantees)"

"Some properties make it easier for guests to get to and from their destinations by providing _________ services. A. valet B. shuttle C. concierge D. bell staff"

"B Shuttle. Shuttle services provide a means of transportation for guests and their baggage when the property is located far away from popular destinations such as the airport. Valet services are responsible for cleaning guests' garments so that guests don't have to obtain access to laundry facilities. Concierge services provide tourist information, directions, dinner reservations, and other personalized services that make it easier for guests to enjoy their stay and to navigate unfamiliar territory. Bell staff services handle guests' baggage, making it easier for them to get to and from their room, as well as their modes of transportation. SOURCE: PM:095 SOURCE: Reynolds, J.S., & Chase, D. (2014). Hospitality services (3rd ed.) [p. 198]. Tinley Park, IL: The Goodheart-Willcox Company."

"Which of the following hotels is most likely to have a competitive advantage over other hotels: A. The Marcus Hotel because it is located near a major highway on the outskirts of a large city B. The Regency Hotel because it is the only hotel in Portland that offers childcare services C. The Metropolis Hotel because it has a full-service restaurant near the hotel's lobby D. The Hightower Hotel because it has an indoor swimming pool that guests can use"

"B The Regency Hotel because it is the only hotel in Portland that offers childcare services. A competitive advantage is the edge achieved by a business that offers something better than the competition. The Regency Hotel differentiates itself from other hotels by being the only hotel in the city to provide childcare services for guests, which provides it with a competitive advantage. Many hotels are located near major highways and have full-service restaurants and indoor swimming pools. There is not enough information provided to determine if these options provide their guests with something unique that give the hotels a competitive advantage. SOURCE: PM:246 SOURCE: Investopedia. (2016). Competitive advantage. Retrieved September 27, 2016, from http://www.investopedia.com/terms/c/competitive_advantage.asp"

"Why do businesses want to meet quality standards? A. To determine how much work must be done B. To reduce costs C. To decrease profit D. To examine how long it takes to get a job done"

"B To reduce costs. Businesses want to meet quality standards to reduce costs. Managers have recognized that if employees do their jobs right the first time, they can minimize costs. Time isn't wasted redoing work, and fewer products end up as scrap. Time standards relate to how long it takes to get a job done. Quantity standards specify how much work must be done. Managers use standards to increase, rather than decrease, profit. SOURCE: PM:019 SOURCE: LAP-PM-008—Raise the Bar (Grades and Standards)"

"Employee interactions, websites, and advertisements are all examples of A. corporate brands. B. touch points. C. logos. D. distributor brands."

"B Touch points. Touch points are all the opportunities that businesses have to connect with customers and reinforce their brand values. Any chance a business gets to interact with customers is a touch point; this includes products, packaging, employee interactions, websites, advertisements, social media interactions, and much more. Logos are distinctive symbols, designs, or groups of letters. Distributor brands are owned by the retailer or wholesaler that sells the brands, rather than the manufacturer. Corporate brands are all the combined customer impressions and experiences associated with a particular company. SOURCE: PM:206 SOURCE: LAP-PM-020—Corporate Identity (Nature of Corporate Branding)"

"One reason that a brand name should be adaptable is so that the business can A. change the brand name as often as necessary. B. use the brand name in multinational marketing. C. use the brand name in packaging and advertising. D. make its products look like other similar products."

"B Use the brand name in multinational marketing. A good brand name should be easy to pronounce in all countries where the product will be marketed. For example, Kodak and Exxon are easy to pronounce by people who speak other languages. The business would want to establish a brand in consumers' minds, not change it frequently. The business would also want the brand name to set its product(s) apart rather than making them resemble competitive products. The length of the brand name, rather than its adaptability, makes it appropriate for packaging and advertising. SOURCE: PM:021 SOURCE: LAP-PM-006—It's a Brand, Brand, Brand World! (Nature of Product Branding)"

"Which of the following is a decision a company might make during the decline stage of the product life cycle: A. How to increase awareness of the product B. Whether to change the product C. How to fend off the competition D. What production schedule to follow"

"B Whether to change the product. Whether to change the product is one of the choices that needs to be made during the decline stage. During this stage in the product life cycle, the producer also has to decide whether to sell or license the product, recommit to the product line, discount the product, or regionalize the product. Increasing awareness occurs during the introductory stage. Fending off the competition occurs during the maturity stage. The company does not need to decide the production schedule. SOURCE: PM:024 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2012). Marketing essentials (pp. 718-719). Columbus, OH: Glencoe/McGraw-Hill."

"Real market opportunity occurs when A. supply exceeds demand. B. entrepreneurs brainstorm ideas. C. an identified want exists. D. a good or service can be produced efficiently."

"C An identified want exists. Market opportunity exists when an economic want exists, and there is an idea for a good or service for which people are willing and able to pay to fulfill that want. Market opportunity does not necessarily exist because an entrepreneur brainstorms ideas or when supply exceeds demand. In addition, the level of productivity does not necessarily affect the level of demand. SOURCE: PM:134 SOURCE: The Duke Entrepreneurship Manual. (n.d.). Market opportunity. Retrieved September 2, 2015, from http://www.dukeven.com/Home/Evaluation/Market-Opportunity"

"Claire booked a room at an inn in Charleston, SC. When she arrived, she parked her car in the on- property parking garage. After checking in, she used the inn's check-cashing service and got restaurant recommendations from the concierge. In the evening, Claire enjoyed the cookies and milk provided by the inn. What is the supporting product in this scenario? A. On-property parking garage B. Check-cashing service C. Cookies and milk D. Restaurant recommendations"

"C Cookies and milk. Supporting products are the extra goods and services that accompany the core product, the room at the inn, to add value to that core product. In this case, the evening snack of cookies and milk added value to the core purchase. Check-cashing services, on-property parking garages, and restaurant recommendations are examples of facilitating products. They aid with the use of the core product. SOURCE: PM:081 SOURCE: Hotel Mule. (2009, June 21). Managing products and services. Retrieved October 1, 2015, from http://www.hotelmule.com/forum/viewthread.php?tid=788"

"Product bundling is an effective method to sell goods and services because it A. provides new products with better exposure than advertising. B. allows businesses to sell unrelated items at the same time. C. creates a sense of value for the customer. D. encourages customers to comparison shop."

"C Creates a sense of value for the customer. Product bundling is the practice of selling multiple, related goods/services together as a one-price package. Bundled products are priced so that the customer pays less for the bundled products than they would pay for the products if the customer purchased each product individually. In some situations, the bundled product may not provide a great savings over individually purchased items, but just enough for the customer to feel that s/he is getting a deal or a good value. Product bundling is often used to get customers who happen to see the bundled package to try a new product; however, the business may also need to promote (e.g., advertise) the new product to let the masses know that the new product exists. Customers are less likely to comparison shop for less expensive goods when the items are bundled. SOURCE: PM:041 SOURCE: Kokemuller, N. (2016). Product bundling strategy. Retrieved August 25, 2016, from http://smallbusiness.chron.com/product-bundling-strategy-41789.html"

"A restaurant wants to develop new menu items that will appeal to its customers. A server mentions that many customers have asked for gluten-free meals, so the restaurant decides to try out a few new gluten- free menu items. What method of idea generation did the restaurant use? A. Observation B. Brainstorming C. Customers D. Trend research"

"C Customers. Companies often rely on input and feedback from customers to generate new product ideas. In this example, the restaurant gets feedback from customers and decides to introduce new menu items based on that feedback. This is not an example of brainstorming, observation, or trend research. SOURCE: PM:128 SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [p. 314]. Tinley Park, IL: The Goodheart-Willcox Co."

"True or False: Only express warranties hold up in court. A. False; express warranties must be in writing. B. True; implied warranties cannot be verified. C. False; implied warranties are valid. D. True; only written evidence can be submitted in court."

"C False; implied warranties are valid. There was a time when only express warranties held up in court, but today's courts recognize implied warranties as valid. Express warranties are warranties that are in writing or expressed verbally. SOURCE: PM:020 SOURCE: PM LAP 4—Promises, Promises (Warranties and Guarantees)"

"What synectics technique compares a problem with something else that is unrelated? A. Arbitrary metaphors B. Discretionary comparisons C. Forced analogies D. Deliberate allegories"

"C Forced analogies. A forced analogy is a synectics technique that compares a problem with something totally unrelated. Arbitrary metaphors, discretionary comparisons, and deliberate allegories are not terms widely used to describe a synectics creative-thinking method. SOURCE: PM:127 SOURCE: LAP-PM-127—Unleash Your Mind (Techniques for Generating Product Ideas)"

"Which of the following is a technique that many businesses use to identify product opportunities: A. Evaluating a prototype B. Testing the market C. Observing the competition D. Developing a brand"

"C Observing the competition. Businesses often observe the products developed by competitors in order to identify possible product opportunities. For example, a business might observe that a competitor's new product is popular and selling well. As a result, the business develops a similar product that is somewhat more advanced. By paying attention to what competitors are doing, businesses often are able to identify product opportunities. Once the opportunity is identified, businesses often evaluate a prototype and test the market. One of the final steps before introducing a new product is developing a brand. SOURCE: PM:134 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2012). Marketing essentials (pp. 707-709). Columbus, OH: Glencoe/McGraw-Hill."

"A company that reevaluates a brand's characteristics, quality, and benefits in order to change the image of the brand is __________ the brand. A. licensing B. extending C. repositioning D. positioning"

"C Repositioning. Companies attempt to reposition products in order to update a sagging image, to boost sagging sales, to prolong the life of a brand, to fill a market niche, or to be competitive. Brand extending introduces a new brand under an established brand name. Positioning creates a certain image or impression of a brand as compared to competitors' brands. Licensing involves the ""renting"" of a brand name to another company. SOURCE: PM:003 SOURCE: LAP-PM-003—Mix and Match (The Nature of Product Mix)"

"In relation to product grades and standards, why is international standardization needed? A. To protect patents, copyrights, and trademarks B. To prevent market expansion C. To prevent technical barriers to trade D. To protect developing countries from competition"

"C To prevent technical barriers to trade. By establishing worldwide industry standards, technical barriers to trade are minimized because products meet the same standards. This encourages competition between countries and increases markets. Standards also economically assist developing countries by improving productivity, market competitiveness, and export capability. International standards do not affect patents, copyrights, or trademarks. SOURCE: PM:019 SOURCE: International Organization for Standardization. (2016). Benefits of international standards. Retrieved September 27, 2016, from http://www.iso.org/iso/home/standards/benefitsofstandards.htm"

"What can a pharmaceutical manufacturer do to help ensure that its pain reliever and allergy medications are safe for consumer use? A. Include vague product labels B. Price the products competitively C. Use protective packaging D. Display a disclaimer on the package"

"C Use protective packaging. To reduce the risk of product tampering, businesses package their products in ways that ensure that the products are safe for consumption. For example, pharmaceutical companies often use heat seals, blister packs, and bottle safety caps to make it difficult to alter the product before it is sold to the end user. Consumers feel more confident about using the product when they open the package and the item is sealed and protected. Governments often require businesses to place clear, detailed labels on product packages that indicate the ingredients and the proper way to use or administer the products. Competitive pricing and a disclaimer on the package do not ensure a product's safety. SOURCE: PM:017 SOURCE: Inline Filling Systems. (2014, June 17). Why do you need tamper evident packaging? Retrieved September 14, 2015, from http://www.fillers.com/why-do-you-need-tamper- evident-packaging/"

"What technique should be used when evaluating multiple vendors' canned goods to ensure that the evaluators provide unbiased reviews? A. Sampling B. Can-cutting C. Random access D. Blind testing"

"D Blind testing. To evaluate multiple vendors' canned goods, restaurants can obtain input from cross- functional teams of employees as well as guests. To avoid receiving biased input, use of blind testing is recommended. With this technique, the food items are removed from their cans so that evaluators do not know for which brand they are providing feedback. Can-cutting is an evaluation procedure in which canned goods are opened and their contents compared. This does not ensure unbiased feedback, however. Random access and sampling are research terms and do not apply to product evaluation. SOURCE: PM:239 SOURCE: Hayes, D.K. & Ninemeier, J.D. (2010). Purchasing: A guide for hospitality professionals (pp. 45-46). Upper Saddle River, NJ: Prentice Hall."

"Pick the best response: Where do product opportunities exist? A. Anywhere that people have had their needs satisfied B. Where people work C. Where people participate in their hobbies D. Anywhere there is an un- or under-met need"

"D Anywhere there is an un- or under-met need. People can recognize unmet or under-met needs wherever they are. This could be at work or where they are enjoying their hobbies. When people have their needs satisfied, product opportunities don't exist. It's when there's a problem or situation that isn't being taken care of that people can find product opportunities. SOURCE: PM:134 SOURCE: Katz, J., & Green, R. (2011). Entrepreneurial small business (3rd ed.) [pp. 80-83]. New York: McGraw-Hill Irwin."

"Which of the following is an idea-generation technique that uses programmed thinking: A. Synectics B. Mind mapping C. Forced questioning D. Attribute listing"

"D Attribute listing. Programmed thinking is a process that involves generating ideas in logical, analytical, and organized ways. Attribute listing is an idea-generation technique that involves listing the characteristics or attributes of something and then finding ways to improve these attributes. For example, suppose that a business wants to improve a bike. The business would begin by listing attributes of the bike—the wheels, seat, frame, gears, chain, etc. When listing the attributes, the business might decide that it could improve the seat by using different padding or by changing the shape of the seat to make it more comfortable for the rider. Mind mapping, forced questioning, and synectics are idea-generation techniques that use lateral thinking, which is a process that involves generating ideas in purposely illogical ways. SOURCE: PM:127 SOURCE: PM LAP 127—Unleash Your Mind (Techniques for Generating Product Ideas)"

"Colors, logos, and images are all elements that make up a company's A. distributor brand. B. brand values. C. brand promise. D. brand identity."

"D Brand identity. A brand identity consists of those elements that are instantly recognized as representing a particular business or product, including logos, colors, names, images/graphics, and design. Brand values are beliefs or qualities that a corporate brand stands for and is built around. A brand promise is a business's spoken or unspoken agreement with customers that it will consistently meet their expectations and deliver on its brand characteristics and values. A distributor brand is owned by the retailer or wholesaler that sells the brand, rather than the manufacturer. SOURCE: PM:206 SOURCE: PM LAP 20—Corporate Identity (Nature of Corporate Branding)"

"Mountain View Steakhouse goes above and beyond to create an excellent dining experience for each of its guests. The steakhouse trains its wait staff to be courteous, respectful, and attentive to customers. Based on this information, delivering outstanding customer service is most likely a __________ of the restaurant. A. primary risk B. business strategy C. public relations plan D. core value"

"D Core value. Core values describe what is most important to a business and what the business wants to be known for. Mountain View Steakhouse goes above and beyond to serve its customers because excellent customer service is most likely one of its core values—something it takes pride in and wants to be known for. Delivering excellent customer service may be part of a business strategy or public relations plan, but customer service alone is not a strategy or plan. Delivering excellent customer service is not a risk to a restaurant; rather, it prevents risk because customers are happy with the service that they receive. SOURCE: PM:214 SOURCE: Your Dictionary. (2018). Examples of core values. Retrieved September 13, 2018, from http://examples.yourdictionary.com/examples-of-core-values.html"

"A department store sells clothing from brands like Levi's, but it also sells its own private brands of clothing, also known as __________ brands. A. business B. corporate C. value D. distributor"

"D Distributor. Distributor brands are owned by the retailer or wholesaler that sells the brands, rather than the manufacturer. Store brands and private brands are two types of distributor brands. Corporate brands are all the combined customer impressions and experiences associated with a particular company. Value and business brands are not terms typically used to refer to distributor brands. SOURCE: PM:206 SOURCE: LAP-PM-020—Corporate Identity (Nature of Corporate Branding)"

"When using mind mapping to generate product ideas, you begin by writing down the main problem or A. situational analysis. B. supporting facts. C. primary associations. D. market opportunity."

"D Market opportunity. When a situation exists to fulfill a market's unmet needs, there is a market opportunity. Entrepreneurs and businesses use creative-thinking techniques during the product- development process, which involves finding ways to take advantage of the market opportunity that presents itself. Mind mapping is a creative-thinking technique that involves generating ideas by making associations. To begin the mind-mapping process, you write the problem or market opportunity in the center of a large sheet of paper. From that starting point, you draw lines to other words or phrases that relate to the main idea (problem, or market opportunity), and continue the process by making associations, which generates ideas and identifies possible solutions. The mind-mapping starting point does not begin by writing down supporting facts or primary associations. A situational analysis is a determination of a firm's current business situation and the direction in which the business is headed. SOURCE: PM:127 SOURCE: PM LAP 11—Unleash Your Oh! Zone (Techniques for Generating Ideas)"

"The Fortnight Hotel chain has over 100 hotels throughout the country that are located near metropolitan conference centers. The chain plans to build 15 golf resorts near popular destination areas over the next five years. This is an example of a business planning a A. franchise arrangement. B. restructuring effort. C. cannibalization strategy. D. product extension."

"D Product extension. A product extension is a good or service added to an existing product line or product category that relates to, but differs from, the main product. Because both product lines provide hospitality services, they are related. The chain's two products differ because the new product markets to destination travelers and businesspeople who golf, while the original product markets to businesses and convention attendees. Cannibalization exists when the sale of one of the company's products takes away sales from another of its products. Because the products attract different markets, it is unlikely that cannibalization will occur after the golf resorts are up and running. The hotel chain is not restructuring its organization. The hotel is not entering into a franchise arrangement, which is a contractual agreement between a parent company and a franchisee to distribute goods or services. SOURCE: PM:099 SOURCE: Farese, L.S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (p. 640). Woodland Hills, CA: Glencoe/McGraw-Hill."

"A travel agent schedules a business trip for a client and also sells the client tickets to three Broadway Shows. This is an example of A. an advantage of having business clients. B. a travel agency's problems. C. working additional hours. D. product extension."

"D Product extension. Product extension happens whenever you add to the value of the original package. For example, a traveler who attends a conference may stay for a tour of the city. It isn't a problem for the travel agency; it's part of the job and shouldn't require additional hours. Leisure travelers are as likely to buy product extensions as are business clients. SOURCE: PM:099 SOURCE: Business Dictionary. (2015). Product extension. Retrieved October 1, 2015, from http://www.businessdictionary.com/definition/product-extension.html "

"Inventory reduction, sales stimulation, and new-product introduction are reasons that many businesses use __________ techniques. A. capital-investment B. stock-turn C. dual-sponsorship D. product-bundling"

"D Product-bundling. Product bundling is the practice of putting together a number of goods/services to create a one-price package. Bundled products are priced so that the consumer pays less for the bundled products than they would pay for products if the consumer purchased each product individually. The advantages to businesses that bundle products include inventory reduction for slow-moving goods, sales increases, and lower new product-introduction costs. Stock-turn, dual-sponsorships, and capital- investment are not techniques that provide businesses with the described advantages. SOURCE: PM:041 SOURCE: Lloyd, C.S. (2016, April 18). Advantages of product bundle sales. Retrieved September 10, 2018, from https://www.homecaremag.com/operations-marketing/april-2016/advantages- product-bundle-sales"

"In product/service management, a major disadvantage of rapid technological changes is the A. increase in customer satisfaction and profitability. B. number of new products entering the market. C. increase of customer product awareness. D. rate at which existing products become obsolete."

"D Rate at which existing products become obsolete. Technology advances so rapidly that products introduced to market are quickly being reintroduced with upgrades or changes that make the original obsolete. The problem is that many technically advanced products have a short life cycle because more advanced products take their place. Increasing the introduction of new products and improving customer awareness will increase customer satisfaction and, as a result, increase sales and profitability. These are advantages of new technology. SOURCE: PM:039 SOURCE: Reynolds, P. (2011, December). Managing obsolete technologies: Strategies and practices. Retrieved September 6, 2017, from http://iom.invensys.com/EN/pdfLibrary/ManagingObsoleteTechnologies- StrategiesandPractices.pdf"