Chapter 11 Quiz

Which of the following is a disadvantage of gradually introducing a new product to a market?

It allows competitors to monitor the results of the new product.

The phase of the new-product development process in which a small sample of potential buyers is presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding a product is called:

concept testing.

Saresh is the owner of Change-ezz, a salon specializing in hair cutting and hair styling. Lately, Saresh has been trying to improve the quality of service provided by Change-eez. However, he has been experiencing difficulties in finding ways to systematize and control the salon's quality of operations. Saresh's inability to standardize his salon's service best illustrates the _____ feature of the service.

heterogeneity

Outback Steakhouse, a restaurant chain, wants to expand its range of dishes on its menu. The restaurant managers conduct surveys on customers to determine the dishes that would appeal to the customers. Outback is currently in the _____ phase of the new-product development process.

idea generation

One of the ways in which service businesses communicate a higher degree of trust to their customers is by having their employees be well-groomed, sharp looking, and dressed in appropriate uniforms. This is a way to address the _____ characteristic of services.

intangibility

The test marketing phase of the new-product development process:

is a sample launching of the entire marketing mix.

The greater the degree of _____ involved in delivering a service, the greater the level of heterogeneity.

labor intensiveness

Kara 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?" In this case, Kara and her team are most likely in the _____ phase of the new-product development process.

product development

If Best Western, a leading global hotel chain, 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

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to advance directly to regional commercialization of the new product. In this instance, they are contemplating skipping the _____ phase of the new-product development process.

test marketing