Marketing Ch. 11
When Nadia and Nathan analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the beginning of which phase of the new-product development process?
Commercialization
Which of the following is the best example of disruptive innovation?
Razor blade
Which of the following creates entirely new products, often aimed at new markets?
Venture team
One disadvantage of test marketing a new product is that
competitors may copy the product.
The members of a venture team come from
different functional areas of an organization.
All of the following are major steps in developing new products except
evaluation of competitors' efforts.
Product deletion
may be opposed by management.
Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
product development.
Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as
rollout
Which of the following statements about customer contact in services marketing is false?
High-contact services are less expensive to deliver because they are typically equipment based.
Why are line extensions more common than new products?
They are less expensive and lower-risk.
Troy is a service provider for a low-contact type of service. Which of the services below is Troy most likely to provide?
Website design
What is the primary distinction between a line extension and a product modification?
With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
The three major ways to modify a product include
aesthetic, quality, and functional changes.
Client-based relationships are least likely to be developed by
appliance repairmen.
The intangibility aspect of a service means that
consumers may have a problem evaluating service offerings.
To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when
consumers perceive all products in a market to have essentially the same quality, design, and features.
The heterogeneity characteristic of services provides marketers with tremendous opportunity to
customize their services to meet unique individual needs
A run-out policy of product deletion
exploits any strengths left in the product.
The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.
heterogeneity
The fact the services cannot be inventoried and then sold at a later date is called
perishability.
When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market.
reposition
Sarah and Felix at Dyad Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ____ stage of the new-product development process.
test marketing
____ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.
Line extension
Select the true statement concerning test marketing.
Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development.
business analysis
Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.
functional
Modifying a product to have _______ may enable a company to charge a higher price by creating customer loyalty and lowering customer sensitivity to price.
higher quality
The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is
product development.
Three major ways in which marketers engage in product differentiation are
product quality, product design and features, and product support services.
A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)
systematic review.
______________ refers to how a product is conceived, planned, and produced.
Product design
When the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip and still continued to produce all of its other Cool Whip products, this was an example of
a line extension
Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.
business analysis
The main characteristic of a ____ is that customers are satisfied to the point that they use a service repeatedly over a period of time.
client-based relationship
Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as
client-based relationships.
Minerva is frustrated with the cost of ink cartridges for her small business computer. Although she paid just $159 for the name-brand printer, replacing the ink cartridges on a near monthly basis is time consuming and costs her about $50 a month, no matter how much she actually uses the printer. Minerva is beginning to work on a new business model that would involve marketing lower priced ink cartridges delivered right to the customer on a subscription basis. This best illustrates
disruptive innovation.
Because of a service's ____, standardization and quality are difficult to control.
heterogeneity
Personal trainers cannot complete their work without their clients present because of the ____ feature of services.
inseparability
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is
product positioning.
All of the following are elements of the inseparability characteristic of services except that
services are easy to standardize and control.
Marianna tells Rajesh that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Rajesh to proceed to which stage of the new-product development process?
Business analysis
Which of the following is a disadvantage of gradually introducing a product to market?
It allows competitors to monitor the results of the new product.
The annual Consumer Reports rating of your company's flagship product was just released. Generally speaking the rating was good but not great. Based on the consumer comments that were referenced in the rating, it appears that many consumers have a negative view of the product's convenience and safety attributes. In order to address these consumer concerns your company should consider doing which of the following?
Make functional modifications to the product.
Which of the following is an example of a functional modification?
Planters Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open.
Which of the following is the best example of a high-contact service?
Plastic surgery
As Joan works on the prototype of a new action-oriented computer game, she is engaging in which phase of the new-product development process?
Product development
Ideally, test marketing should follow which stage in the new-product development process?
Product development
Your company has a product that is struggling in its market. However, the product appears to have some strength left that can be exploited. Which of the following product deletion actions would be most appropriate for the product?
Reduce the price and implement a run-out strategy.
If Parkland School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification
aesthetic
Bethany and Joseph are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new UtiliBot. They are in the ____ phase of the new-product development process.
commercialization
The necessary interaction between service provider and customer that allows a service to be delivered is called
customer contact
When Herstyler adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour, this improvement would best be classified as a(n)
functional modification.
Repositioning a product can be executed by physically changing the product, its price, or its distribution, or by changing its
image through promotional efforts.
Refer to Scenario 11.1. Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n)
immediate-drop decision.
Because practically all marketers provide some services, ____ typically do not exist in today's business environment.
pure goods
If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?
Avoiding competition positioning
Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?
Concept testing
One downside to modifying a successful product is that consumers who enjoyed the original version of the product
may view a modified version as a riskier purchase.
Product deletion can best be described as the process of deleting a product from the product mix when it
no longer satisfies a sufficient number of customers.
The continuum of tangibility goes from ____ on one end to ____ on the other end.
service-dominant products; good-dominant products
When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home?
He was visiting a city being used as a Boulder Canyon's test market.
Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Jamie will be the person assigned to your house. Glenda's recommendation addresses which of the following service features?
Heterogeneity
Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service?
Heterogeneity
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
Heterogeneity
Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers?
Heterogeneity
When marketers at Link Snacks met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of new-product development?
Idea generation
Refer to Scenario 11.1. Cheetos produces several cheese snack products and is considering a cracker-shaped Cheeto. This new Cheetos product would most likely be an example of
a line extension.
Refer to Scenario 11.2. The group of people that management has assembled to take on the task of new-product development is best described as
a venture team.
Octavia runs a local ice cream stand and is developing a new type of ice cream sundae. She just sent a press release to the local newspaper and featured the new sundae on her Facebook page and Instagram account. Based on this information, Octavia is most likely in the _____ stage of the new-product development process.
commercialization
The concept of level of quality is relative because it cannot be described without
comparing it to other products.
The car has undergone major redesigns and upgrades in the past few decades. For instance, car windows used to have to be rolled down manually. Now drivers can push a button to roll their windows up and down. The body of the car has been changed as well. In particular, the front of the car has been changed so that in case of a crash, the very front of the car will absorb more of the impact. The intent is to leave the cabin area intact so that the driver and passengers will not be harmed. The first example is a(n) _________________ modification, while the second change is an example of a(n) ______________modification.
functional; quality
Atticus was interested in taking classes to become a certified yoga instructor. In order to earn the certification, he found out he would need to take 200 hours of training. He would have to be present in the training classes with a trainer for all 200 hours. The fact that he would have to attend the classes with a trainer reflects the _____ quality of services.
inseparability
Milo is a product manager at Hershey. He learned that one of his competitors, the Mars Candy Company, is engaging in test marketing a new candy bar. He decided to increase promotional activity, including coupons with significant price reductions, in the test markets in order to _____ the test program.
jam
Tim is a new product manager for a large biochemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.
not introducing new products
Noah is interested in determining how customers consider his firm's dietary products compared with its competitors. He begins surveying customers and asking them to express what they think about the products and brands in the dietary industry based on the dimensions of effectiveness and affordability. He will use this feedback to create "ideal points" for what consumers desire in dietary products. He will then compare these "ideal points" with his firm's products as well as other brands in the industry to see how they measure up. Noah is engaging in
perceptual mapping.
Refer to Scenario 11.2. The decision to delete the industrial product line of ice chests is an example of deleting a product through a(n) ____, while the decision to drop the thermal underwear line is an example of a(n) ____.
phase-out; immediate drop
Kiera is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked, "What level of quality are we building into the camping gear?" Based on this question, Kiera and her team are most likely in the ____ phase of new-product development.
product development.
Allison's company plans to release a new version of its signature television set. This television will have more advanced features, including better sound quality and higher definition, and more smart capabilities. It plans to discontinue the older version after this newer version is launched. This is an example of a
product modification.
Jennings Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Jennings had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)
quality modification.
Lowinski Lawn Care Equipment Company manufactures lawn mowers and other lawn care products. Its latest lawn mower comes with blades that incorporate new technology that allows them to last five times longer than typical blades. The lawn mower also includes a comfort grip that is easier to hold and an updated style design available in a variety of colors. Lowinski Lawn Care is most likely differentiating itself through _____ with its blades and through _____ with its handle and styling.
quality; design
A new variety of Lays is initially introduced in Phoenix, Arizona; Cleveland, Ohio; Battle Creek, Michigan; and Peoria, Illinois. After its initial success, Frito-Lay begins marketing the new Lays throughout Arizona, Ohio, Michigan, and Illinois, then the adjacent states, and finally the entire country. Frito-Lay is using a ____ for its new variety of Lays.
rollout approach
During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _____, which analyzes a product idea to see if it matches an organization's objectives and resources, and _____, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product.
screening; concept testing
If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ____ services.
supplementary
Jaguar I-Pace sedans have the unique characteristics of being totally electric, luxury sports sedans. The marketing manager wants to focus on these unique aspects rather than comparing the vehicles directly to competitors. He wants the I-Pace to be seen in a totally different light. Based on these objectives, he would want to position the vehicles
to avoid competition.
The following organizational approaches accomplish tasks necessary to develop and manage products: product or brand manager approach and the ____ approach.
venture team