Product/Service Management (PM) Pre-test

Determine whether the following statement is true or false: A product is considered new only if it is totally new to the market.

False, a newly modified product can be considered new.

Businesses hope that innovators will buy new products when they are in the introductory stage because this helps to

create demand for the products

Arm & Hammer used to be known as plain baking soda. Now it has been introduced as an odor absorber for refrigerators. This is an example of

repositioning

Which of the following is an example of a limited warranty:

The manufacturer will replace defective parts for six months upon purchase of the product.

What is the central role of brand identity elements?

They work together to represent the brand.

Which of the following is a way that grades and standards can be used:

To determine how products can be used

Which of the following product mix strategies is a business using when it makes changes to aspects of its product items, such as packaging or pricing:

alteration

What does a successful corporate brand communicate?

benefits

Successful product/service management often helps a company to reduce its

business risk

A business that positions its products as the ones offering the best quality and service for the price might gain a

competitive advantage

A business might reduce a product's price during the growth phase of the product's life cycle because

competitors have introduced similar products to the marketplace.