Chapter 14
List the six steps in the new product development process, starting with the first step at the top and ending with the last.
1. Idea generation 2. Product screening 3. Product analysis 4. Development 5. testing 6. commercialization (
List the stages of the product life cycle from beginning to end with the first stage at the top.
1. Introduction 2. Growth 3. Maturity 4. decline
is the creation of real or perceived differences in goods or services.
Blank 1: Product Blank 2: differentiation
aims to design a product so that it satisfies customers and meets the profit margins for a company.
Blank 1: Target or Demand Blank 2: costing or based
change according to the level of production
Blank 1: Variable Blank 2: costs
When consumers quickly and easily think of a given brand name when a product category is mentioned, they are said to have established .
Blank 1: brand Blank 2: awareness
Total are all the expenses that remain the same no matter how many products are made or sold.
Blank 1: fixed Blank 2: costs
Sellers are now able to commercialize new products more quickly through interactive websites that enable them to reach .
Blank 1: global Blank 2: markets
A brand manager manages all elements of a product line or the brand's .
Blank 1: marketing Blank 2: mix
Understanding the product life cycle can provide marketing managers a basis for planning strategies.
Blank 1: marketing or market Blank 2: mix
A computer kept at home for personal use is considered a(n) good, whereas the same computer purchased for use in a business office is considered a(n) good.
Blank 1: personal or consumer Blank 2: business or industrial
Due to competition and demand in the marketplace, and are not always related.
Blank 1: price Blank 2: cost
The break-even point is the point where revenues from equal all . (Enter one word in each blank.)
Blank 1: sales Blank 2: costs, expenditures, or expenses
Reducing the number of new product ideas based on specific criteria is a function of product , whereas determining the profitability of those ideas is a function of product .
Blank 1: screening Blank 2: analysis
Designing a product so that it satisfies customers and meets the profit margins desired by firms is called .
Blank 1: target Blank 2: costing
Considering an iPod's look and feel, its features, as well as Apple's reputation demonstrates a consumer evaluating the offer.
Blank 1: total Blank 2: product
Everything that consumers evaluate when deciding whether to buy something is referred to as the .
Blank 1: total Blank 2: product Blank 3: offer
Examples of shopping goods or services are:
Clothes, Shoes, Appliances, and Auto services
goods sell best with an established brand, image, and location.
Convenience
When airlines charge higher prices for seats in the Economy section Exit rows that have more leg room, they are using which pricing strategy?
Demand-oriented
True or false: Distributed product development is producing a firm's product without the help of other organizations.
False
True or false: Grouping two or more products together and pricing them as a unit is called stacking.
False
True or false: It takes dozens of ideas to generate one commercial product.
False
Which of the following are specialty goods or services?
Jewelry Business consultants
Choose the term that is defined as a set of processes for creating, communicating, and delivering value to customers, according to the American Marketing Association.
Marketing
Which of the four Ps below is the most difficult for a manager to control due to the impact it has on consumer evaluation of an offering?
Price
is one of the most difficult of the four Ps for a manager to control, since it directly relates to the consumer perceptions of the value of a product.
Price or Pricing
Differentiate between the elements of the new-product development process:
Product screening-Reduces the number of products a company is working on down to the most promising Product analysis- Develops cost estimates and sales forecasts to determine profitability
A benefit of a(n) system is that the packaging inventory method does not have to be read one at a time and can be read at a distance.
RFID
A relatively new tracking technology using radio frequencies is known as the chip.
RFID
Select the firms that distribute products nationally which are also known as manufacturers' brands.
Sony Xerox Dell
When opening a bag of potato chips the bag is much larger than what is inside. The reason for this most likely has to do with which function of packaging.
To protect the goods inside
True or false: The two categories of Goods and Service that take more effort on the part of consumers are Shopping and Specialty
True
What is an example of a manufacturer's brand name?
Xerox
A major reason why many new products fail is that they:
are too similar to competitors
How quickly or easily a given brand name comes to mind when a product category is mentioned refers to:
brand awareness
Dell and Sony are manufacturers' that are recognized and distributed nationally.
brands
The point where revenues from sales equal all costs is called the:
break-even point
The best way to promote a(n) good is to make it readily available and create the proper image.
convenience
Making a product readily available and creating the proper image is the best way to promote a good classified as a(n):
convenience good
A product the consumer wants to purchase frequently and with minimum effort is a good or service called a(n):
convenience product
Demand-based pricing is based on what customers are willing to pay for a product due to its perceived value, not the of producing it.
costs or cost
An advantage of RFID chips is that they can carry more than bar codes.
data or information
The Kenmore brand sold by Sears is an example of a brand.
dealer or house
The pricing strategy in use when a firm prices products based on consumer demand is called:
demand-oriented
Handing off various parts of a firm's innovation process sometimes to companies in other countries is called product development.
distributed
A dealer brand may also be called a:
distributor brand private label house brand
Brand is the value of the brand name and associated symbols.
equity
Another name for a dealer brand or private label brand is a:
house brand
Another name for brands is distributor brands.
house or dealer
When developing new products, it takes about seven new to generate one new commercial product.
ideas
During the growth stage of the product life cycle, sales and profits mostly
increase
Brand is the degree to which consumers are satisfied, like the brand, and are committed to further purchases.
loyalty
Private-label brands are products that do not carry the name, but carry a distributor or retailer name.
manufacturer's, manufacturers, or manufacturer
Xerox, Kodak, Sony, and Dell are all examples of brand names.
manufacturers', national, manufacturer, manufacturers, or manufacturer's
The will ultimately determine the price of goods.
market or marketplace
Marketers must continually adapt products to new ______.
markets competition
Marketers who seek to differentiate their products by promoting attributes such as safety or the brand name are using:
nonprice competition
It is unusual for a company to sell:
one product
A low initial entry price, often lower than the eventual market price, to attract many customers and discourage competition, is a strategy called:
penetration
In order to capture a large share of the market quickly, firms use a low price strategy
penetration
Which step in the new product development process involves estimating costs and sales to get a feel for the new products potential profitability.
product analysis
The creation of real or perceived product differences is called:
product differentiation
When a consumer evaluates not just the core product but the total product offer, they look for
product function, warranty, company reputation
During _____, a marketing manager should use such criteria as fit with the firm's other products, profit potential, and marketability.
product screening
Justifying a new product's fit, profit potential, and marketability is known as:
product screening
Factors influencing the perception of quality are:
reputation appearance price
Knowing what of the product life cycle a product is in helps marketers make intelligent and efficient marketing decisions.
stage or phase
Companies usually offer a product line instead of just one product to:
tailor their offerings more closely to consumer wants meet the competition appeal to similar consumer markets
Designing a product so that it satisfies customers and meets the profit margins desired by firms is called:
target costing
Expenses that remain the same no matter how many products are made or sold are called:
total fixed costs
The value of the brand name and associated symbols refers to:
brand equity
A product that could be both a consumer product or industrial product depending on its use is a:
computer
Not delivering what is promised is a leading cause of new-product .
failure
It is common for goods to be marketed through special interest magazines and websites.
specialty
Specialty products are considered:
to have no substitute
Match the goods classifications with the buyer behaviors shown below.
Convenience- Purchased often with little thought Shopping-Time spent on comparison to substitutes Specialty-No substitute will do Unsought-Unaware of product or not looking for it
A is a name, symbol, or design that identifies the goods or services of one seller or group of sellers.
brand
A name, symbol, or design that identifies the goods or services of one seller or group of sellers is called a:
brand
An increase in outsourcing and alliance building has resulted in product development that often includes coordinating with companies in other countries.
distributed
Examples of specialty goods are:
expensive wine, fine watches, and furs
The stage in a product's life cycle when it may become too similar to existing products, and marketers need to communicate what makes it different from others products is called the stage.
maturity or mature
Marketers competing on product attributes and image are said to be participating in:
nonprice competition
Factors influencing the perception of quality are , appearance, and reputation.
price
The best appeal for shopping products is a combination of , quality, and service.
price or value
Price and quality are the two best ways to raise appeal for a good or service.
shopping
Value, quality, price, and style are closely scrutinized among similar products before a consumer decides which goods to purchase.
shopping
Products the consumer buys only after comparing value, quality, price, and style from a variety of sellers are goods or services called:
shopping products
When there is low competition, firms can use a price strategy to recover research and development costs and make as much profit as possible.
skimming
When a firm prices a new product very high to make optimum profit while there is little competition, it is said to be using:
skimming price strategy
Examples of convenience goods are:
candy, gum, milk, and gas
Grouping two or more products together and pricing them as a unit is called:
bundling
Everything that consumers evaluate when deciding whether to buy something is referred to as the:
total product offer
True or false: Value means that customers perceive a product as a good quality at a fair price.
true
Good quality at a fair price is the definition of .
value
When consumers calculate they look at the benefits of a product or service and subtract the costs to determine whether the benefits exceed the costs.
value
When levels of production change so do costs.
variable
Costs that change according to the level of production are called:
variable costs
Pricing based on the pricing activities of other companies in relation to a product is called - pricing.
Blank 1: competition Blank 2: based
The name of the pricing strategy that sets the price at, above, or below the price of competitors is - pricing.
Blank 1: competition Blank 2: based
When consumers look at all of the benefits of a product and subtract all of the costs related to its purchase, they are:
calculating the value of the product
A good or service is one that the consumer wants to purchase frequently and with minimum effort.
convenience
Candy, gum, milk, snacks, and gas are all examples of goods.
convenience
When a consumer insists on one specific brand, making the product a specialty good, it is known as brand .
insistence
The stages of the product life cycle are:
introduction, growth, maturity, and decline
An ongoing need for all marketers in order for their businesses to survive is:
product adaptation
Goods that are marketed through advertising in special interest or industry magazines or the Internet to reach specific market segments are goods.
specialty
goods are consumer products with unique characteristics and brand identity.
specialty
New products are getting rapid exposure to global markets through:
the Internet
Advantages of using RFID technology include:
the ability to locate a product at all times carrying more information than bar codes that they can be read from a distance
True or false: Ultimately, producers determine the price of a product.
False
Packaging serves several critical functions in the overall success of a product. Some of these functions are
Giving warranty information Attracting the buyer's attention Giving a potential buyer a sense of price, value, and uses. Explaining the benefits of what's inside
A person responsible for one brand or product line is called a .
Blank 1: brand or product Blank 2: manager
When the consumer will not accept a substitute for a particular product, the consumer has developed:
brand insistence
The degree to which customers are satisfied, like the brand, and are committed to further purchases refers to:
brand loyalty
Clothes, shoes, appliances, and auto repair services are examples of goods or services.
shopping