Chapter 9 questions

Among consumer products, advertising and wide distribution are especially important for A. nondurable goods. B. semidurable goods. C. durable goods. D. production goods. E. specialty products.

A. nondurable goods.

__________ are items that become part of the final business product. A. Production goods B. Components C. Accessories D. Raw assemblies E. Support products

B. Components

A failure fee is a penalty payment A. a retailer assesses a manufacturer to handle defective new products that customers returned. B. a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell. C. a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers. D. a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf. E. a retailer makes to a manufacturer for stockouts - not keeping point-of-purchase displays continuously stocked with the new product.

B. a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the HIGHEST level of risk? A. a product deletion B. a radical invention C. a brand extension D. a jump in innovation E. a product line extension

B. a radical invention

In marketing, an idea is A. an observation about an individual or group and how they use a service or product. B. a thought that leads to a product or action. C. an inspiration that evolved from market research. D. an observation about a series of events. E. a concept explaining the behavior of an individual or group.

B. a thought that leads to a product or action.

Open innovation may enhance the __________ stage of the new-product process. A. open innovation B. idea generation C. new-product strategy development D. screening and evaluation E. product development

B. idea generation

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country. This payment is an example of a A. product support fee. B. slotting fee. C. bribe. D. shelf space allowance. E. product placement fee.

B. slotting fee.

One tool available when trying to even out the variations in demand for services is __________. A. credit incentives B. container sales C. off-peak pricing D. product lay-away E. product rationing

C. off-peak pricing

Development refers to the stage of the new-product process A. where cross-functional team members and leaders are selected and initial tasks are assigned. B. where the first version of a product enters the marketplace. C. that turns an idea on paper into a prototype. D. where initial ideas are generated and discussed. E. where product characteristics and product benefits are selected.

C. that turns an idea on paper into a prototype.

) X-1 uses all of the following sources to generate new-product ideas EXCEPT: A. retail buyers B. employees C. co-workers D. R&D lab IDEO E. Team X-1

D. R&D lab IDEO

Which of the following statements about test marketing is most accurate? A. Test marketing is especially important for new, expensive industrial products. B. Standard test markets are the least expensive and fastest type. C. Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results. D. Test marketing is better suited to relatively inexpensive new consumer goods than for new services. E. Test marketing is especially important for new services

D. Test marketing is better suited to relatively inexpensive new consumer goods than for new services.

All of the following are examples of test markets EXCEPT: A. controlled test market B. simulated test market C. laboratory test market D. concept test market E. standard test market

D. concept test market

A product that has tangible attributes that a consumer's five senses can perceive is referred to as a(n) A. artifact. B. new idea. C. product concept. D. good. E. service.

D. good.

) Sarah has a backache due to overexertion. She believes a massage would loosen her back muscles and help her feel better. She is concerned because a massage, unlike a pair of shoes, cannot be experienced or seen before she buys it. Which characteristic of services is she concerned about? A. inseparability B. inventory costs C. inconsistency D. intangibility E. incongruity

D. intangibility

In implementing capacity management, service providers use __________ to charge different prices for different times of the day or week to help match the supply and demand for their services. A. yield management pricing B. down-time pricing C. capacity pricing D. off-peak pricing E. dynamic pricing

D. off-peak pricing

Business analysis refers to the stage of the new product process A. where the target markets are selected and resources are allocated to reach them. B. where there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI) that the new product will give back to the firm. C. that internally and externally evaluates new-product ideas to eliminate those warranting no further effort. D. that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. E. where the target market segments that show potential are selected and those that do not are eliminated.

D. that specifies the features of the product and the marketing strategy needed to bring it to market and make financial

Business products are also referred to as __________. A. B2C products B. B4C products C. B4B products D. BOB products E. B2B products

E. B2B products

Compared with people-based services, equipment-based services do not have the marketing concern of A. intangibility. B. inventory. C. insensitivity. D. immeasurability. E. inconsistency.

E. inconsistency.

To help consumers assess and compare its airline service, Frontier Airlines uses personable animal characters in its advertising to announce and describe benefits, such as leather seats and stretch seating, to help deal with the A. incongruity of the service. B. inflexibility of the service. C. interdependence of the service. D. inseparability of the service. E. intangibility of the service.

E. intangibility of the service.