Marketing test 3
Which of the following is not a service product? a) Maroon 5 concert b) Flight on Southwest Airlines c) A 100 percent service satisfaction guarantee d) Overnight stay at Holiday Inn e) Dry cleaning of a suit
A 100 percent service satisfaction guarantee
Which of the following is the best example of a functional modification?
A smoke alarm is modified to be more sensitive to smoke at farther distances
Which of the following is similar for both for-profit and nonprofit marketing?
Ability to use effective marketing activities
A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of which type of business product?
Accessory equipment
Which of the following best defines nonprofit marketing?
Activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit or return on investment
American Airlines runs a series of television commercials that show its personnel going out of their way to help customers. In addition to consumers, an important secondary audience for these ads is (are)
American Airlines employees.
What are a marketing manager's two options during the decline stage?
Attempt to postpone the decline or accept its inevitability
An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person?
Awareness
As Jessica enters Best Buy's car electronics department, she is asked by the salesperson if she has seen the new plug-in cell phones with TV display. She answers that she didn't know that this type of phone accessory for cars was available. Based on this information, she is now in what stage of the product adoption process for this item?
Awareness
An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered what type of product?
Business
"Is the demand strong enough?" is a question that marketers ask during the ___________ phase of new-product development.
Business analysis
Breakeven analysis is a tool that marketers are likely to employ during the ___________ stage of the new-product development process.
Business analysis
During which stage of new-product development does the firm consider profitability?
Business analysis
Karla tells Jeff 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 Jeff to proceed to which stage of the new-product development process?
Business analysis
Megan Avakian, who works as a purchasing agent for Greyhound Transport, buys carpeting for use in an office area at Greyhound. What determines whether this carpeting is a consumer or a business product?
Buyer's intended use of the product
Which of the following is always used to determine the classification of a good?
Buyer's intent for using the product
Which of the following service providers are most likely to bundle-price their services?
Cable television companies
Which of the following is not a business product? a) Oil to be refined into fuel b) Chips to be integrated into components for personal computers c) Paper, pens, and tape to be used in an office d) Marketing consulting services to aid a company in marketing a new product e) Calculators bought to help individuals complete their personal federal income tax forms
Calculators bought to help individuals complete their personal federal income tax forms
Which of the following is most likely to be considered a business service?
Consulting
Which of the following statements does not apply to convenience goods? a) Consumers are brand loyal to convenience products and are not likely to substitute other brands. b) Convenience products require minimal shopping effort. c) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible. d) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one. e) Colas, gasoline, and bread are good examples of convenience goods.
Consumers are brand loyal to convenience products and are not likely to substitute other brands
Dannon Yogurt represents what type of product for most consumers?
Convenience
Energizer batteries would be classified as which type of product?
Convenience
Shaving razors fall into which of the following classification of consumer products?
Convenience products
Which of the following service providers are most likely to use demand-based pricing? a) Dentists b) Lawyers c) Doctors d) Hair stylists e) Cruise ships
Cruise ships
Who judges service quality?
Customers
When are marketers least likely to change a product's design, style, or other attributes?
Decline
An American West Airlines flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty American West flight from Chicago to Phoenix. This is an example of what kind of service pricing?
Demand-based
30. Which of the following services falls closest to the middle of the tangibility continuum?
Dinner at the Olive Garden
___________ and ___________ are important characteristics of quality for consumer markets, and ___________ and ___________ are important characteristics of quality for business markets.
Ease of maintenance/company reputation; durability/technical suitability
When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is this individual?
Evaluation
Which of the following is not a stage in the buyer's product adoption process?
Exploration
Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?
For some services, customers look for the low-cost provider, which is what Safe claims to be.
Which of the following is most likely to be considered a convenience good?
Gatorade
An ad that stresses "Get the real Proactiv Solution; accept no substitutes!" is best geared for which stage of the product life cycle?
Growth
In which stage of the product life cycle do profits begin to decrease?
Growth
In which stage of the product life cycle do profits peak?
Growth
Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy?
Growth
Which stage of the product life cycle begins when a business reaches the breakeven point with the product?
Growth
H&R Block, a major tax preparation firm, reported having a problem with its employees being inconsistent in the filing of returns. The firm is experiencing a problem with which of the following characteristics of the service offering?
Heterogeneity
Machinery such as ATMs and online customer services can reduce the ______ that comes from increased contact with human employees.
Heterogeneity
Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features?
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
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.
Which of the following factors have contributed the least to the growth of services in the U.S. economy? a) Increased interest in travel and entertainment b) Increased number of women in the workforce c) Increased proportion of older people in the United States d) Increased interest of Americans in fitness and recreation e) Increased number of high-tech goods
Increased number of high-tech goods
Hair stylists find it challenging to market their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?
Inseparability
If a nonsmoker dines in a restaurant without a no-smoking section, then the overall quality of service experienced by the nonsmoking customer probably declines. This is an example of which of the following service characteristics?
Inseparability
Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product?
Installations
Megabus is most likely in which of the following stages of the product life cycle?
Introduction
When Gillette developed the Venus razor in 1998, in which stage of the product life cycle was the Venus?
Introduction
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.
Which of the following service providers would typically call their customers "clients"?
Lawyers
__________ 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
Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?
Lowering prices after developmental costs have been recovered
Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and
MRO supplies
Select the true statement about nonprofit marketing.
Major nonprofit marketers in the United States are social causes and charitable organizations.
Which of the following stages of the product life cycle is likely to see dealers offered promotional assistance from the producer?
Maturity
Which stage of the product life cycle is characterized by intense competition?
Maturity
___________ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit.
Nonprofit
Which is the most typical distribution channel used in nonprofit organizations?
Nonprofit organization, client
___________ is the value of the benefit that is given up by selecting one alternative rather than another.
Opportunity cost
Which of the following is the best example of a high-contact service? a) Appliance repair b) Newspaper delivery c) Dog training d) Interior decorating e) Plastic surgery
Plastic surgery
Which of the following is the most typical example of a new product introduction?
Pringles sold in snack-sized containers
"How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development.
Product development
After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.
Product development
As Justin works on the prototype of a new action-oriented computer game, he 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
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
Which of the following issues is least important in nonprofit marketing? a) Distribution b) Exchange c) Profits d) Negotiation e) Persuasion
Profits
Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?
Quality
Select the true statement regarding nonprofit marketing.
Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets.
What are the three primary ways that marketers deliver services?
Service facilities, customer's home, or from a distance
Gap clothing stores sell primarily what type of products?
Shopping
Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product?
Shopping
Which of the following is the best definition of product features?
Specific design characteristics that allow a product to perform certain tasks
Which of the following products associated with weddings is most likely to be considered a service?
String quartet music
Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2008 and began national distribution in 2009. About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. In 2008, Cheetos was in which phase of new-product development?
Test marketing
Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern?
Test marketing
Sales and cost analyses occur most frequently in what stage of the new-product development process?
Test marketing
Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go 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
Select the true statement concerning test marketing.
Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
Which of the following best defines the interest stage in the product adoption process?
The buyer seeks information and is receptive to learning about the product
What type of product is the children's playground at the "Y"?
The playground is a consumer service product.
What product(s) is Megabus marketing?
The ride between the cities, which is the core product, plus the supplemental features of Wi-Fi, video screens, and other technology
Why are line extensions more common than new products?
They are less expensive and lower-risk
What should marketers do to promote the consistency and reliability of their services most effectively?
Train employees and develop standard procedures for dealing with customers
Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?
Traveler's Insurance umbrella
When Saturn offers to let qualified buyers test drive the new Saturn SKY roadster, the dealer is trying to stimulate which stage of the product adoption process?
Trial
Which of the following countries was the world's first service economy? a) England b) United States c) Sweden d) Canada e) Germany
United States
Which of the following is a low-contact service?
Website design
What measure of the product mix involves the number of product lines a company offers?
Width
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.
A light bulb can be considered all of the following except a) a consumer product. b) a business product. c) either a consumer product or a business product. d) a business product if it is used to light an assembly line in a factory. e) a consumer product if it is used to light the office of the board of directors.
a consumer product if it is used to light the office of the board of directors
A product line is defined as
a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations
Cheetos produces several cheese snack products and is considering a new Cheetos brand of crackers. This new Cheetos brand of crackers would most likely be an example of
a line extension.
The group of people that management has assembled to take on the task of new-product development is best described as
a venture team.
The difference between absolute and relative product failure is
absolute product failure results in a loss on the investment and is deleted from the product mix, whereas relative product failure results in a small profit, and improvements or repositioning can create success later
The two levels of expectations that consumers generally have about services are
acceptable and desired.
Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital goods are called
accessory equipment
A company wanting to maintain market share during the maturity stage requires moderate to large
advertising expenditures
Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ___________ modifications.
aesthetic
If Conway 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
Improving the taste of Cheetos Crunchies was a(n) __________ modification.
aesthetic
Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ___________ modification.
aesthetic
If buyers choose certain types of products by the way they look, smell, taste, or sound, marketers should focus most on appropriate
aesthetic modifications
The three major ways to modify a product include
aesthetic, quality, and functional changes.
A product mix is best described as
all products offered by a firm
When Greyhound launched the BoltBus and NeOn bus lines, this is an example of
an extension in the width of the product mix
According to the text, a product is defined as
anything the customer receives in an exchange
Tasha is shopping for personal care items at her local Target. She walks by one aisle and sees a floor-standing display for the new Venus Embrace. She hadn't thought about buying a new razor, but the display has caught her attention. Which stage of the product adoption process is Tasha most likely in at the present time?
attention
An individual moves into the adoption stage of the
begins using that specific product
If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of __________ manager.
brand
The product deletion process is similar to the ___________ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.
business analysis
As the production manager of an engineering firm, you went out and bought a metal cutting machine. What you have purchased can best be classified as a
business product
The intangible products that most organizations use in their operations are called
business services
Products are classified as being business or consumer products according to the
buyer's intended use of the product
Business products are
classified according to their characteristics and intended uses
According to the text, the direct consumers of a nonprofit organization's ideas or services are called its _________ public.
client
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.
A university's student body would be considered its ___________ public, and parents, alumni, and trustees would be included as its ___________ public.
client; general
Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process.
commercialization
When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ___________ phase of the new-product development process.
commercialization
One disadvantage of test marketing a new product is that
competitors may copy the product.
A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n)
component part
Although they become part of a larger product, _______ can often be easily identified and distinguished on the larger product.
component parts
Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbuck's objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is
concept testing
Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during
concept testing
The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called a) concept testing. b) customer response testing. c) idea analysis. d) test marketing. e) screening.
concept testing
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
Which of the following phases of new-product development is likely the least costly for the firm?
concept testing
The ability of a product to provide the same level of quality over time is called
consistency
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.
Products which are relatively inexpensive and frequently purchased with minimal effort are classified as ___________ products.
convenience
A first class airline ticket offers a ____ service of transportation as well as _______ services of drink and food service, special boarding rights, and extra customer service.
core; supplementary
Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ___________ quality.
credence
Services have three evaluation attributes: search qualities, experience qualities, and ___________ qualities.
credence
A small private college in Tennessee paid a large sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many
credence qualities
Many services have aspects that consumers may never be able to evaluate, even years after the purchase and consumption of the service. These attributes are called
credence qualities.
By installing ATMs, banks have increased production capacity and reduced the number of personnel. This results in a decrease in
customer contact
The level of interaction necessary between a customer and service provider in order to complete a service is called
customer contact.
The necessary interaction between service provider and customer that allows a service to be delivered is called
customer contact.
Any human or mechanical effort that adds value to a product is called
customer service.
Best Buy differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. Best Buy is differentiating through
customer services
The heterogeneity characteristic of services provides marketers with tremendous opportunity to
customize their services to meet unique individual needs
Cadillac recognized it needed to revitalize its brand and attract different market segments. These are indications that Cadillac's products were primarily in the ______ stage of the product life cycle.
decline
Dish Network satellite TV cut back advertising expenditures to minimum levels and reduced the number of channel members for its industrial satellite product. These actions indicate that its product is in the ___________ stage of its life cycle.
decline
The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the ____ stage.
decline
Weyerhaeuser is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. Weyerhaeuser will most likely look at products in the _____ stage of the product life cycle as possibilities for elimination.
decline
In general, differences between goods and services are determined by the
degree of tangibility.
Which of the following types of pricing will the accountant most likely use when charging for the service?
demand-based pricing
Many cellular phone plans contain a certain number of anytime minutes and then either significantly more or even unlimited night and weekend minutes. This is an example of
demand-based pricing.
Quality modifications are changes that relate to a product's
dependability and durability
Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix
depth
Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of
depth of product mix
When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's
design, styling, and features
The members of a venture team come from
different functional areas of an organization.
The depth of a product mix is measured by the average number of
different products offered in each product line
The marketing channels for services are usually
direct from provider to customer.
The fact that the "Y" is open from 6:00 am until 11:00 pm refers to the __________ element of its marketing mix.
distribution
When Sony realized its CD players were in the decline stage, it decided to immediately withdraw all of its marketing support from these declining products, an approach known as
divesting
Client-based relationships are most likely to be developed by
doctors
Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by
emphasizing tangible cues in promoting the service.
There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and
employee empathy.
Offering pet owners who recommend Prize Pet Grooming to a friend $10 off their next grooming bill is a program designed primarily to
encourage word-of-mouth communication.
Sales usually start to decline during the __________ stage of the product life cycle.
end of the maturity
All of the following are major steps in developing new products except a) test marketing. b) evaluation of competitors' efforts. c) screening. d) business analysis. e) idea generation.
evaluation of competitors' efforts.
When using an accountant to prepare her tax return, Kaycee really can't determine the level of the accountant's expertise, or whether the accountant actually determined the absolute highest dollar amount Kaycee could have legally received. This is an example of the _________ of a service.
experience qualities
A runout policy of product deletion
exploits any strengths left in the product
All of the following are reasons why new products fail except
followed a systematic plan
During the growth stage of the product life cycle, marketers must
fortify the product position
Changes that affect a product's versatility, effectiveness, convenience, or safety are called ___________ modifications.
functional
When Conair 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.
After a company has created a prototype during the product development stage, its performance, or ___________ must be tested.
functionality
Achieving greater penetration of the market is typically a business goal during the ___________ stage of the product life cycle.
growth
Aggressive pricing is typical during the ___________ stage of the product life cycle.
growth
A firm with a product in the decline stage of the product life cycle may decide to gradually reduce marketing expenditures and realign its marketing mix to one that requires fewer resources. This approach is called
harvesting
Because of a service's ___________, standardization and quality are difficult to control.
heterogeneity
Production and consumption of services must simultaneously occur due to the _____ characteristic of services.
heterogeneity
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
heterogeneity
The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ______ of services.
heterogeneity
The owner of the Lords and Ladies hair salon has difficulty in standardizing and controlling the quality of service that the customers in his salon receive. This problem illustrates which of the following unique features of service?
heterogeneity
When a theater entices customers to see movies during the daytime by offering tickets at a reduced price, it is trying to solve the services marketing problem of
heterogeneity
The more __________ involved with delivering a service, the greater the degree of heterogeneity.
human labor
Services are usually provided through the application of _______ directed at people or objects.
human or mechanical efforts
A(n) _____ is a concept, philosophy, or image.
idea
(PARAGRAPH ON TESTBANK) Polar management is currently in which stage of new product development?
idea generation
Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the __________ phase of new-product development.
idea generation
When marketers at Nabisco meet to identify the types of snacks that young people want, they are engaging in which phase of new-product development?
idea generation
MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets
ideas
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.
The growth of business services is largely attributed to
increases in the complexity and competitiveness of business environments.
When banks add new services during the maturity stage, the objective they are most likely trying to achieve is
increasing their share of the customer
Frito-Lay, which is widely known for producing chips and other snack products, tried to introduce Frito-Lay lemonade. The reason this new product failed is likely because of
ineffective branding
A genuinely new product—like the iPhone once was—offers
innovative benefits to consumers.
Molly has been using a Bic disposable razor for her shaving needs for the last ten years. She doesn't really see the need to spend more money on razors, but she sees that it is becoming more difficult to find the Bic, and so she is considering the Venus Embrace. Molly is definitely not a(n) _______ in the product adopter categories, and is more likely to be _____.
innovator; a late majority
Depending on the length of time it takes them to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and
innovators
A sign in a doctor's office waiting room says "Please be courteous of the others waiting with you." The doctor's office is trying to positively influence the _______ aspect of services.
inseparability
Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jim's difficulty in expanding his practice involves the aspect of service called
inseparability
Personal trainers cannot complete their work without their clients present because of the _______ feature of services.
inseparability
The children who take swimming lessons must be in attendance at the pool during the time of their appointment. The need for the child to be in attendance in order to receive the lesson is an example of the ______ feature of a service, while the need for them to be there at the time of their appointment, represents the _______ feature.
inseparability; perishability
Facilities, factories, and production lines with very large equipment are all classified as
installations
Large tools and machines used in a production process for a considerable length of time are classified as
installations
Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ______ aspect of services.
intangibility
Clean, sharp looking employees with appropriate uniforms help assure customers about service quality and therefore address the _____ of services.
intangibility
Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of
intangibility
Symbols such as the Travellers' Financial Services umbrella are designed to help customers overcome the ________ of services.
intangibility
Transamerica's pyramid-shaped building in San Francisco is used to symbolize strength, security, and reliability. This type of promotion is designed to address the ___________ characteristic of services.
intangibility
Casey is searching the website of Megabus.com for the schedule and fares of a trip between Buffalo, NY and New York City. Case is most likely in which of the following stages of the product adoption process?
interest
Sales start at zero and profits are negative during the ____ stage of the product life cycle.
introduction
The four major stages of a product life cycle include
introduction, growth, maturity, and decline
The test-marketing stage
is a sample launching of the entire marketing mix.
Competitive interference with a test-marketing program is called
jamming
If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ___________ to reduce the validity of the other firm's results.
jamming
The last group to adopt a new product, _________, is oriented toward the past and is suspicious of new products.
laggards
Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of _____ is relative or difficult to describe without a basis of comparison.
level of quality
A(n) ___________ is the development of a product that is closely related to one or more products in the existing product line but is designed specifically to meet somewhat different needs of customers.
line extension
If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
line extension
Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of
line extensions
Brunswick's bowling balls, bowling bags, and shoes are individual product ___________ for this sporting goods manufacturer.
lines
The width of a product mix is measured by the number of product
lines a company offers
Dropping an unprofitable product immediately is the best strategy when a) all advertising and promotional efforts have been exhausted. b) customers have a negative outlook on other products. c) losses are too great to prolong the product's life. d) the product's performance cannot be improved. e) there is low compatibility with the firm's business strategies.
losses are too great to prolong the product's life
Shopping products have a _____ inventory turnover and need _____ distribution outlets than convenience goods.
lower; fewer
Kyle Bolger of U.S. Hospital Supply Corporation has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Kyle's job is that of a(n)
market manager.
A change in package size is a strategy that can help boost sales in the ___________ stage of the product life cycle.
maturity
A common business objective of the ___________ stage of the product life cycle is to generate cash flow.
maturity
Heinz promoting its vinegar as an effective cleaner for wall, glass, and kitchen and bathroom surfaces would most likely be a strategy for the _____ stage of the product life cycle.
maturity
The producers of Schick razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ___________ stage of the product life cycle.
maturity
When Clorox introduced bleach in a no-drip bottle, the firm was taking action consistent with its product being in the ___________ stage of the product life cycle.
maturity
When a business finds itself squeezed out of a market for a product or loses interest in that product, it is a sign of being in the ___________ stage of the product life cycle.
maturity
Product deletion
may be opposed by management.
Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting department. His present position can be described as a
member of a venture team.
Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product
mix
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and
modification should make the product more consistent with customers' desires.
Service industries account for ____ of the gross domestic product of most developed nations.
nearly three-quarters
During the introduction stage of a successful product, profits are usually
negative and increasing
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.
Introducing new products is risky and so is
not introducing new products
Kyle Jackson, one of the staff members at the YMCA, suggested that the "Y" offer discounted memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am and 4:00 pm. Kyle's plan is most likely addressing the issue with ______, and relates to the ______ characteristic of services.
off-peak demand; perishability
Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. This point in time is also known as
peak demand
Any service provider that offers time-sensitive services receives most of its revenue during
peak demand.
A brand manager in a multiproduct firm would be responsible for
performance of a specific brand.
According to your text, one perspective from which to view services is as a ______ targeted at a(n) ________.
performance; audience
Demand-based pricing most closely relates to the _____ of services.
perishability
Kathy Adkins, owner of Adkins Styling Salon, looks at the day's appointment schedule and notices that it is completely full. She wishes some of the empty slots from earlier in the week were available on this Saturday afternoon. Her thoughts deal with the ___________ characteristic of services.
perishability
Marketers of services must deal with the challenges of balancing supply and demand and planning for peak and off-peak times. What characteristic of services creates these challenges?
perishability
The fact the services cannot be inventoried and then sold at a later date is called
perishability
Using appointments or reservations for scheduling delivery of services is an attempt to address the ___________ characteristic of services.
perishability
Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called
phase out.
If 7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a ____ deletion strategy.
phase-out
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
When Jones' Soda launched its Turkey Gravy flavored soda, it was hoping to take advantage of the short-lived clear-products fad. By the time it launched the soda, the fad for quirky soda flavors had already waned, and customers were no longer clamoring for these type of products. The reason this product failed is
poor timing
Compared to goods marketers, services providers are more likely to promote performance documentation, availability, guarantees, and
price
Products used directly in the production of a final product but are not easily identifiable are categorized as
process materials
If Kraft General Foods offered you a position in which you would have total marketing responsibility for all of its cheese products, this position would probably hold the title of __________ manager.
product
Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
product development.
Schwinn adds features to its bicycles no other companies offer in order to create
product differentiation.
If Ford adds a driver-side sliding door, side impact airbags, and a small television with DVD player to its Freestar Minivan, it is differentiating its product based on
product features.
A ______ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.
product manager
The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is
product quality
Three major ways in which marketers engage in product differentiation are
product quality, product design and features, and product support services.
If Hewlett-Packard provides its customers with a help line for computer questions and problems, it is differentiating itself through
product support services.
In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to
promise too much and cause customer expectations beyond what they can deliver.
Because practically all marketers provide some services, ___________ typically do not exist in today's business environment.
pure goods
Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman 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.
A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a
radically new product.
Minerals, chemicals, timber, and agricultural products are considered
raw materials
Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ___________, whereas Katie apparently based her decision on ___________.
real product differences; perceived product image
Functional modifications usually require that the product be
redesigned
Convenience products are
relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.
A specialty product
requires purchase planning, and the buyer will not accept substitutes
The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called
responsiveness
A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a _____ for its new variety of Doritos.
roll-out approach
Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as
roll-out.
During the decline stage of the product life cycle,
sales rapidly decrease
A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?
screening
Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ___________ phase.
screening
Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process.
screening
What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?
screening
As Stan and Anna Walicki meet with the account representative at Landmark Bank, they are shown a sample of what their monthly statement will look like. Providing such sample documents allows Landmark to add tangibility to which of the following service qualities?
search
Tara finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many _____ qualities.
search
When Kaycee looked in the yellow pages and on the Internet for information on the accountants in the area, she was most likely using _________ qualities to evaluate the accountant service.
search
When service companies change high-contact services into low-contact services, the
service becomes less personalized.
The continuum of tangibility goes from _____ on one end to _____ on the other end.
service-dominant products; good-dominant products
All of the following are elements of the inseparability characteristic of services except that a) consumers are involved in production. b) centralized mass production is difficult. c) consumption and production are simultaneous. d) many services cannot be performed without the customer being present. e) services are easy to standardize and control.
services are easy to standardize and control.
Consumers look closely at service quality when comparing competing services because
services are very difficult to evaluate.
Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ______ products.
shopping
During the maturity stage
some competitors are forced out
As Beth and Rob Barker search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ___________ product.
specialty
Buyers do not compare alternatives when shopping for ______ products.
specialty
David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ______ product.
specialty
The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) ___________ product.
specialty
A product item is best described as a
specific version of a produc
A service is usually offered as part of a bundled package of services with a core service and one or more ________ services.
supplementary
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
Because some products are not doing well, Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued. He is suggesting a
systematic review
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.
Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about
tangibles
Attributes which are assessed only during the consumption of a service are called
tangibles
When Kaycee visited the accountants' offices and used the look of the surroundings, as well as the office furniture condition in her evaluation of the service business, she was most likely using the elements of the ________ dimension of service quality.
tangibles
Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization.
target publics
Angela and Ralph at Tablerock 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
Lauren is a concert promoter who works for pop star Justin Timberlake. She works very hard to make sure most of Justin's concerts are sold out because she understands the concept of perishability, which means
that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.
The major drawback to using aesthetic modifications is
that the value of the modification is determined subjectively.
Tina, a waitress at the Riverfront Grill, is angry that a customer complained that his soup was cold because of her slow service. Riverfront owner Max Griffin reminds her that she must focus on service quality as defined by
the customer's perceptions.
In nonprofit organizations,
the direct consumers of the product are the client public.
An important difference between for-profit and nonprofit marketing is that
the goals of the nonprofit organization differ from the goals of the for-profit organization.
In most service industries, customer-contact employees are
the lowest-paid and least-trained employees.
In product modification, the first issue to consider is whether
the product is modifiable
American Life uses leather-look portfolios and high-quality paper and printing for its life insurance policies in order to indicate
the quality of its services.
Piano teachers, tutors, attorneys, and consultants are most likely to price their services based on
time
PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink? a) There are research and audit services available. b) Retailers would be cooperative. c) Testing efforts would not be easily jammed by competitors. d) Tourism is a major industry in the area. e) The city has stable year-round sales of soft drinks.
tourism is a major industry in the area.
Client-based relationships are least likely to be developed by a) towing services. b) accountants. c) beauticians. d) orthodontists. e) psychiatrists.
towing services
When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ___________ stage of the product adoption process.
trial
Distribution for nonprofit organizations is
typically characterized by short channels.
Surveys, focus groups, and customer comment cards are all methods used by service companies to
understand customer needs and expectations.
Nick Arnold's Auto Towing Service would best be described as a(n) __________ product.
unsought
When a sudden problem confronts a consumer, such as emergency automobile repair, he or she is likely going to view solutions to that problem as
unsought products.
To make intangible products more tangible or real to the consumer, marketers often
use symbols or cues to help symbolize product benefits
Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) __________ at their company.
venture team
The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the _________ approach.
venture team
Early in the commercialization phase, marketers must make decisions about
warranties, repairs, and replacement parts.
In service marketing, the most important link to the customer is
well-trained contact employees.
One company markets such diverse products as Rosarita Mexican foods, Max Factor cosmetics, and Samsonite luggage. These various offerings exhibit this firm's product mix
width
Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on
word of mouth.
Janet sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Janet's work, so Janet redoes the job at her own expense because she knows how powerful _____ is (are) for services and wants to stay in business.
word-of-mouth communication
Jack and Amy Douglas are purchasing their first home and have certain expectations for the mortgage company with which they are working. After a long series of "unexplainable" delays, Jack and Amy become very frustrated and decide to stay in their apartment at least another year. The mortgage company failed to provide service within Jack and Amy's
zone of tolerance.