Chapter 11 - Questions
Scenario 11.2. In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned? "Mother—Great Taste and Great Energy" "New Mother—Tastes Nothing Like the Old One" "Mother Energy Drink: Get More for Less" "Mother Energy Drink—For Those Who Dare to Dream" "Not Your Everyday Mother"
"New Mother—Tastes Nothing Like the Old One"
Which is the best way to handle the deletion of a product? Maintaining the product as long as there are loyal customers Discontinuing the product after it becomes a heavy financial burden Dropping the product immediately once sales start to decline Eliminating the product only if repositioning fails Conducting a review to determine its impact on the overall product mix
Conducting a review to determine its impact on the overall product mix
Which of the following identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they've come to expect from current products in a specific market? Concept testing Idea generation Disruptive innovation New-product development process
Disruptive innovation
Your company is preparing to launch a new product next month. Since you are leading the launch effort, you have called a meeting of all stakeholders to discuss how the product should be positioned in the market. You acknowledge that the product will carry a higher price than competing products, but all the independent rating agencies have concluded that the product has superior performance characteristics relative to its competing brands. Which of the following bases for positioning should you use for this product? - Head-to-head competition should be the basis for positioning the product. - The target market for the product should be the basis for positioning the product. - Avoiding competition should be the basis for positioning the product. - The style of the product should be the basis for positioning the product.
Head-to-head competition should be the basis for positioning the product.
What is the primary distinction between a line extension and a product modification? - With a line extension, the original product remains in the product line, but in a product modification, the original product is replaced by the new product. - Line extensions involve changing a product's dependability and durability, but product modifications involve changing a product's safety or convenience. - In a line extension, a company develops a new brand name, but the company uses an existing brand name in a product modification. - In both cases, an existing product is modified, but the physical size of a product is increased in a line extension.
With a line extension, the original product remains in the product line, but in a product modification, the original product is replaced by the new product.
DVD players have been declining for years. Recognizing that DVD players are a thing of the past, those who manufactured DVD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of DVD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _______. a phase-out harvesting product fading a run-off an immediate drop
a phase-out
Scenario 11.2. In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. In repositioning the product, Coca-Cola changed the taste of the product. It also changed the look of the product with a larger can size and different colors. This is an example of a(n) _______ modification. repositioning product line quality aesthetic functional
aesthetic
A modification to a product that changes the taste, texture, sound, smell, or appearance is a(n) _______. planned obsolescence functional modification aesthetic modification quality modification
aesthetic modification
If Ruth were hired by Procter & Gamble and given total marketing responsibility over Tide Free and Gentle Liquid Laundry Detergent, she would hold the position of _______ manager. brand market product sales
brand
Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, a manager for Fairlife, and a manager for SmartWater. What types of managers are these? Product managers Venture team managers Assistant managers Market managers Brand managers
brand managers
A group of managers has been assigned the task of developing a new product. They are now in the process of determining a product idea's potential contribution to the firm's sales and profits. The managers are at what stage of the new-product development process? Commercialization Business analysis Test marketing Screening
business analysis
The possibility that L'Oréal overestimated the size of the "nutricosmetics" market would have been due to an error in which part of the product development process? Idea generation Concept testing Commercialization Business analysis
business analysis
Lyft's use of driver ratings helps to give passengers confidence in their knowledge of the drivers and to convey trust. This relates to which component of service quality? Client-based relationships Customer contact Inseparability Perishability
client-based relationships
The Amazon Echo is a voice-enabled smart speaker. It has been in development since 2010. It was introduced in 2014 but only to Amazon Prime members for purchase. Amazon expanded in 2015 and became the Echo available in stores nationwide. What stage in the product development process was Amazon Echo in 2015? Business analysis Commercialization Product development Test marketing Screening
commercialization
The decision to market a product is called _______. commercialization test marketing product development business analysis
commercialization
Immediate Drop
completely getting rid of the product
Scenario 11.3. Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari is working with a team to determine the feasibility of the product. Together with her team, she shows a small group of avid coffee customers a written description as well as a photo of the proposed product. She hopes to determine whether they would buy the product and what they think about it. Nari and her team are at what stage in the product development process? Product development Test marketing Commercialization Business analysis Concept testing
concept testing
The new product team at a clothing manufacturer has generated many ideas for styles of new clothes and assessed whether the new clothes are consistent with the manufacturer's objectives and resources. During the assessment, several new ideas were rejected. The next step in the new-product development process is _______. screening concept testing test marketing business analysis
concept testing
Which of the following involves marketers presenting a sample of potential buyers with a product idea described in words or in drawings, to determine their attitudes and initial buying intentions? Concept testing Screening Idea generation Disruptive innovation
concept testing
Miles recently stayed at the Hyatt. He loved the experience. The staff was so nice, and the rooms were clean. The concierge was extremely helpful. He decided to stay there when he returned on his next business trip. However, the next time he stayed there, there were different staff members who were not very friendly or helpful. Also, the housekeeping staff did not change the towels in his room. The only thing he found to be the same was the concierge. This Hyatt seems to lack _______. level of quality functionality good customer service consistency of quality product features
consistency of quality
By supporting drivers with benefits such as mobile repair and a no-fee bank account with grocery and gas discounts, Lyft would be the result of using what service characteristic? Inseparability Intangibility Heterogeneity Customer contact
customer contact
Delivery and installation, financing arrangements, customer training, warranties and guarantees, repairs, layaway plans, convenient hours of operation, adequate parking, and information through toll-free numbers and websites are examples of _______. product features product differentiation customer services product design
customer services
Around the holidays, airline tickets tend to increase. What type of pricing are the airlines most likely using to determine how much they will charge customers at this time? Compensation-based pricing Bundled pricing Time spent on the task Weather conditions Demand-based pricing
demand-based pricing
To balance the supply and demand of perishable services, marketers may use _____ . client-based pricing high-contact pricing supply-based pricing demand-based pricing
demand-based pricing
Quality modifications are changes that relate to a product's _______. effectiveness and value dependability and durability convenience and safety brand and image
dependability and durability
Run-Out
exploiting any strengths left in the product
When automakers started installing Bluetooth in cars, this was an example of _______. aesthetic modification functional modification product line modification repositioning modification quality modification
functional modification
Seventh Generation is developing a new type of organic body wash that is going to be higher in price than the competition but provides superior performance characteristics compared to other organic body wash brands. It should most likely use _______ positioning for the new body wash. quality competition avoidance head-to-head price
head-to-head
Which characteristic of service tends to have variation in quality? Perishability Intangibility Heterogeneity Inseparability
heterogeneity
Samsung wants to add features to the upcoming version of its Galaxy S smartphone. It has asked its engineers and other employees to submit possibilities for new features. Samsung is currently in the _______ phase of the new-product development process. idea generation concept testing test marketing product development
idea generation
In the business analysis stage, _______. - ideas are generated from a variety of sources, such as customers and distributors - ideas are screened for fit with the organization's new-product strategy - ideas are evaluated by projecting cost, sales, and profitability - ideas are commercialized
ideas are evaluated by projecting cost, sales, and profitability
Which of the following deletion strategies is the best strategy when losses are too great to prolong the product's life? Phase-out Flash sale Immediate drop Run-out
immediate drop
It is difficult for surgeons to standardize each type of surgery performed because the patient must be present and involved in the surgery. Because of differences in bodies, each surgery will be somewhat different. This illustrates which of the following unique features of services? intangibility client-based relationships inseparability perishability
inseparability
Fidelity Investments is one of the largest mutual fund and brokerage services providers worldwide. It has various offices in cities across the United States. In each office customer, contact personnel have a well-groomed, professional appearance. The inside of the office is clean and attractive. These visible cues are an attempt to deal with the problem of _______ common to service organizations. intangibility inseparability customer contact perishability heterogeneity
intangibility
Services can't be touched, consumed, or felt in the same way as goods. This is an example of _____ . intangibility perishability heterogeneity inseparability
intangibility
Traveler's Insurance uses an umbrella in its name to symbolize protection. The symbol provides a cue to overcome which aspect of a service? Inseparability Intangibility Client-based relationships Perishability Heterogeneity
intangibility
Quality, the overall characteristics of a product that allow it to perform as expected, has two dimensions: ______ and ______. first blank: level function appearance supplemental features second blank: consistency symbolic and experiential benefits appearance supplemental features
level and consistency
Colleen thinks the meal she ate at Outback Steakhouse was high in quality. However, she found a dinner she had last week at a five-star restaurant to have much higher quality. This example points out that the dimension of _______ is relative and may be difficult to describe without having a basis of comparison. consistency of quality product design type of quality level of quality
level of quality
Kira loves Mexican food. She saw an ad for a new Mexican restaurant that touted its affordable prices. She went in to eat but thought the food was way too salty. Kira thought perhaps it was just a fluke. She tried the restaurant again, but the food tasted just as bad. For Kira the restaurant has a low _______. comparative quality level of quality number of customer services consistency of quality product differentiation
level of quality
The development of a product closely related to one or more products in the existing product line but designed to meet different customer needs is called a _______ . line extension quality modification disruptive innovation brand extension
line extension
When Cheetos developed a new "cheesy" flavor, Cheddar Jalapeno Crunchy Cheetos, it was an example of a _______. product modification brand extension concept testing product line line extension
line extension
Doritos has expanded beyond its original Nacho Cheese flavor to Cool Ranch, Jacked, Spicy Sweet Chili, and Salsa Verde, to name a few. These are examples of _______. product modifications aesthetic modifications functional modifications line extensions
line extensions
A run-out strategy of product deletion _______. - does not make any effort to extend the life of the product - may focus on intensifying marketing efforts in a core market - lowers the price of the product to eliminate inventory quickly - is only used if a phase-out has been unsuccessful
may focus on intensifying marketing efforts in a core market
Phase-Out
no attempt is made to give the product new life
Product deletion can best be described as the process of deleting a product from the product mix when it _______. no longer satisfies enough customers is deemed to be unprofitable through a systematic review has experienced a product recall no longer includes the latest technology
no longer satisfies enough customers
Which of the following is a way to display or graph, in two or more dimensions, the location of products, brands, or groups of products in customers' minds? Product plot Portfolio chart Perceptual map Positioning matrix
perceptual map
A cereal manufacturer has decided to delete one of its brands of cereal that is not satisfying enough customers. It will delete the cereal by letting it decline and not changing its marketing strategy in a process called _______. immediate drop run-out cutback phase-out
phase-out
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds are best described as _____ . screening perceptual mapping positioning disruptive innovation
positioning
A positioning strategy that highlights specific attributes or features to create the desired perception of the brand or consistency with the buyer's self-concept is a ______ positioning base. target market price, quality level, and benefits competitor product attribute or feature
product attribute or feature
Procter & Gamble is in the process of eliminating products from the product mix because they no longer satisfy a sufficient number of customers. This is best described as _______. product adoption commercialization product positioning disruptive innovation product deletion
product deletion
What is the process of eliminating a product from the product mix when consumer preferences shift significantly, causing a product to decline? Product deletion Line extension Product modification Disruptive innovation
product deletion
Scenario 11.3. Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari is working with a team to develop the product. It has identified a sustainable teak wood and designed a unique cotton drip bag for the coffee maker. It has also identified several potential manufacturers in Central America. Nari's company is currently working on the _______ for the pour-over coffee maker. product design product quality commercialization concept testing support services
product design
L'Oreal's global research center can help the company in what phase of new-product development? Product development Idea generation Test marketing Commercialization
product development
The process of creating and designing products so that customers perceive them as different from competing products is best described as _______. product design product differentiation disruptive innovation customer services Assessment question Quality, the overall characteristics
product differentiation
Whirlpool has developed a new washing machine with new technology that can sense the needs of each load of laundry and adjust the water levels and wash actions to make clothes cleaner while being gentler on the fabric. It also has added new features such as the ability to spray detergent directly and evenly on clothes and an option to steam clean. Since its competition does not make a washing machine with these features, Whirlpool is creating _______. product positioning product differentiation consistency of quality level of quality
product differentiation
If Kimberly-Clark's Cottonelle brand of toilet paper offered you a position where you would have total marketing responsibility for all of its flushable wipes, this position would probably hold the title of _______. brand manager venture team leader sales manager product manager
product manager
Which of the following is responsible for a product, a product line, or several distinct products that make up an interrelated group within a multiproduct organization? Brand manager Product manager Venture team Market manager
product manager
"Does this new product idea meet our company's overall objectives?" is a question that marketers would most likely ask during the _______ phase of the new-product development process. commercialization screening product development concept testing
screening
Scenario 11.1. During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers' minds. This is referred to as _______. product development line extension product organization product positioning product modification
product positioning
A product modification intended to improve the dependability and durability of a product is a(n) _______. aesthetic modification quality modification functional modification planned obsolescence
quality modification
Scenario 11.1. During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. P&G had to modify its Tide product to appeal to this new demographic. What type of product modification did it make? Functional modification Repositioning modification Quality modification Product line modification Aesthetic modification
quality modification
Which of these product deletion strategies would NOT be an option for L'Oreal during its withdrawal from Innéov? Repositioning Immediate drop Run-out Phase-out
repositioning
Years ago, Old Spice was marketed to older men. In 2010, the company came out with new commercials and advertisements through the "The Man Your Man Could Smell Like" campaign that featured athlete Isaiah Mustafa and was geared towards younger customers. Through _______, Old Spice was able to boost sales and reach a new demographic. head-to-head positioning perceptual mapping repositioning product positioning
repositioning
Scenario 11.3. Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari's firm released the pour-over coffeemaker, and it became a hit among a niche group of avid coffee fans. For a few years sales were high. Eventually, however, sales peaked and started to decline. Nari's firm realizes the coffeemaker still has a small following of dedicated customers. They plan to move on to a more advanced pour-over coffeemaker, but in the meantime they plan to emphasize the core strengths of the current coffeemaker, including the fact that it is so sustainable. This is an example of what type of product deletion? Immediate drop Run-out Repositioning Phase-out Fading
run-out
After ideas have been generated, the next step in the product development process is ______ . screening commercialization test marketing new-product strategy
screening
Method is a nontoxic, biodegradable cleaning supplies company. Suppose one of the employees on the production team at Method got an idea for the company to expand into biodegradable plastic wrap. He has heard about new technologies that could make this possible. Method has the resources to invest in this new product, but after considering it, the production managers nixed the idea because it did not fit well with its product mix. What stage of the product development process was Method in? Product development Screening Business analysis Test marketing Commercialization
screening
Pinnacle Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. Pinnacle is in which phase of the new product development process? Product development Business analysis Test marketing Screening Concept testing
screening
By providing passengers an upfront pricing quote for a ride, then actually charging that price for the ride, Lyft is using which promotional strategy? Creating a strong organizational image Using word-of-mouth communication Setting service expectations Stressing tangible cues
setting service expectations
Scenario 11.2. In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. By using a larger can size and different colors, Coca-Cola is changing the _______ of the product. functionality repositioning product features styling quality
styling
Chase Bank offers a credit card that it differentiates from competing cards by providing a toll-free phone number that connects directly with a customer service agent rather than an automated system. Chase is differentiating this credit card through _______. product styling product quality product features support services
support services
To delete products, companies should periodically evaluate each product to determine its impact on the overall effectiveness of the firm's product mix. This process is called a _______. product performance review systematic review deletion evaluation profitability analysis
systematic review
Which positioning base positions the product based on personality or type of consumer? Target market Product attribute or feature Competitor Price, quality level, and benefits
target market
Scenario 11.1. During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. What stage of the product development process was P&G in when it decided to discontinue Tide Basic? Business analysis Product development Concept testing Commercialization Test marketing
test marketing
Which of the four promotional strategies involves gaining credibility from what other people say about a service? Stressing tangible cues Using word-of-mouth communication Creating a strong organizational image Setting service expectations
using word-of-mouth communication
Neveah works in research and development at a consumer products firm. She meets up with Sergio, who works in finance, Arun, who works in production, and David, who works in marketing. Together they are going to develop a new product that Neveah's department had researched. They are responsible for all aspects of developing the product. This is an example of a _______. work group positioning team venture team brand management brand department
venture team
Which of the following is responsible for all aspects of developing a product: research and development, production and engineering, finance and accounting, and marketing? Product manager Brand developer Brand manager Venture team
venture team