MKTG CH 11

Seventh Generation is developing a new type of organic body wash that is going to be higher in price than the competition but provides superior performance characteristics compared to other organic body wash brands. It should most likely use _______ positioning for the new body wash. price competition avoidance head-to-head quality

head-to-head

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned? "Mother Energy Drink—For Those Who Dare to Dream" "Not Your Everyday Mother" "Mother Energy Drink: Get More for Less" "New Mother—Tastes Nothing Like the Old One" "Mother—Great Taste and Great Energy"

"New Mother—Tastes Nothing Like the Old One"

Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, a manager for Fairlife, and a manager for SmartWater. What types of managers are these? Market managers Brand managers Venture team managers Assistant managers Product managers

Brand managers

A group of managers has been assigned the task of developing a new product. They are now in the process of determining a product idea's potential contribution to the firm's sales and profits. The managers are at what stage of the new-product development process? Test marketing Screening Business analysis Commercialization

Business analysis

Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari is working with a team to determine the feasibility of the product. Together with her team, she shows a small group of avid coffee customers a written description as well as a photo of the proposed product. She hopes to determine whether they would buy the product and what they think about it. Nari and her team are at what stage in the product development process? Commercialization Product development Business analysis Test marketing Concept testing

Concept testing

Which is the best way to handle the deletion of a product? Dropping the product immediately once sales start to decline Discontinuing the product after it becomes a heavy financial burden Eliminating the product only if repositioning fails Maintaining the product as long as there are loyal customers Conducting a review to determine its impact on the overall product mix

Conducting a review to determine its impact on the overall product mix

Around the holidays, airline tickets tend to increase. What type of pricing are the airlines most likely using to determine how much they will charge customers at this time? Bundled pricing Demand-based pricing Compensation-based pricing Time spent on the task Weather conditions

Demand-based pricing

Your company is preparing to launch a new product next month. Since you are leading the launch effort, you have called a meeting of all stakeholders to discuss how the product should be positioned in the market. You acknowledge that the product will carry a higher price than competing products, but all the independent rating agencies have concluded that the product has superior performance characteristics relative to its competing brands. Which of the following bases for positioning should you use for this product? The style of the product should be the basis for positioning the product. Avoiding competition should be the basis for positioning the product. The target market for the product should be the basis for positioning the product. Head-to-head competition should be the basis for positioning the product.

Head-to-head competition should be the basis for positioning the product.

Traveler's Insurance uses an umbrella in its name to symbolize protection. The symbol provides a cue to overcome which aspect of a service? Perishability Intangibility Heterogeneity Inseparability Client-based relationships Assessment question

Intangibility

Scenario 11.1. During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. P&G had to modify its Tide product to appeal to this new demographic. What type of product modification did it make? Repositioning modification Aesthetic modification Product line modification Functional modification Quality modification

Quality Modification

Scenario 11.3. Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari's firm released the pour-over coffeemaker, and it became a hit among a niche group of avid coffee fans. For a few years sales were high. Eventually, however, sales peaked and started to decline. Nari's firm realizes the coffeemaker still has a small following of dedicated customers. They plan to move on to a more advanced pour-over coffeemaker, but in the meantime they plan to emphasize the core strengths of the current coffeemaker, including the fact that it is so sustainable. This is an example of what type of product deletion? Fading Immediate drop Phase-out Run-out Repositioning

Run-out

Pinnacle Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. Pinnacle is in which phase of the new product development process? Business analysis Test marketing Product development Concept testing Screening

Screening

Scenario 11.1. During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. What stage of the product development process was P&G in when it decided to discontinue Tide Basic? Product development Business analysis Commercialization Test marketing Concept testing

Test marketing

What is the primary distinction between a line extension and a product modification? In a line extension, a company develops a new brand name, but the company uses an existing brand name in a product modification. With a line extension, the original product remains in the product line, but in a product modification, the original product is replaced by the new product. In both cases, an existing product is modified, but the physical size of a product is increased in a line extension. Line extensions involve changing a product's dependability and durability, but product modifications involve changing a product's safety or convenience.

With a line extension, the original product remains in the product line, but in a product modification, the original product is replaced by the new product.

DVD players have been declining for years. Recognizing that DVD players are a thing of the past, those who manufactured DVD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of DVD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _______. product fading harvesting a run-off an immediate drop a phase-out

a phase-out

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. In repositioning the product, Coca-Cola changed the taste of the product. It also changed the look of the product with a larger can size and different colors. This is an example of a(n) _______ modification. quality repositioning aesthetic functional product line

aesthetic

If Ruth were hired by Procter & Gamble and given total marketing responsibility over Tide Free and Gentle Liquid Laundry Detergent, she would hold the position of _______ manager. market product sales brand

brand

The Amazon Echo is a voice-enabled smart speaker. It has been in development since 2010. It was introduced in 2014 but only to Amazon Prime members for purchase. Amazon expanded in 2015 and became the Echo available in stores nationwide. What stage in the product development process was Amazon Echo in 2015? Product development Test marketing Commercialization Business analysis

commercialization

When automakers started installing Bluetooth in cars, this was an example of _______. aesthetic modification repositioning modification quality modification product line modification functional modification

functional modification

The new product team at a clothing manufacturer has generated many ideas for styles of new clothes and assessed whether the new clothes are consistent with the manufacturer's objectives and resources. During the assessment, several new ideas were rejected. The next step in the new-product development process is _______. screening concept testing test marketing business analysis

concept testing

Miles recently stayed at the Hyatt. He loved the experience. The staff was so nice, and the rooms were clean. The concierge was extremely helpful. He decided to stay there when he returned on his next business trip. However, the next time he stayed there, there were different staff members who were not very friendly or helpful. Also, the housekeeping staff did not change the towels in his room. The only thing he found to be the same was the concierge. This Hyatt seems to lack _______. product features consistency of quality good customer service functionality level of quality

consistency of quality

Quality modifications are changes that relate to a product's _______. dependability and durability brand and image effectiveness and value convenience and safety

dependability and durability

Samsung wants to add features to the upcoming version of its Galaxy S smartphone. It has asked its engineers and other employees to submit possibilities for new features. Samsung is currently in the _______ phase of the new-product development process. test marketing product development concept testing idea generation

idea generation

It is difficult for surgeons to standardize each type of surgery performed because the patient must be present and involved in the surgery. Because of differences in bodies, each surgery will be somewhat different. This illustrates which of the following unique features of services? client-based relationships inseparability intangibility perishability

inseparability

Fidelity Investments is one of the largest mutual fund and brokerage services providers worldwide. It has various offices in cities across the United States. In each office customer, contact personnel have a well-groomed, professional appearance. The inside of the office is clean and attractive. These visible cues are an attempt to deal with the problem of _______ common to service organizations. heterogeneity perishability intangibility customer contact inseparability Assessment question

intangibility

Colleen thinks the meal she ate at Outback Steakhouse was high in quality. However, she found a dinner she had last week at a five-star restaurant to have much higher quality. This example points out that the dimension of _______ is relative and may be difficult to describe without having a basis of comparison. level of quality type of quality product design consistency of quality

level of quality

Kira loves Mexican food. She saw an ad for a new Mexican restaurant that touted its affordable prices. She went in to eat but thought the food was way too salty. Kira thought perhaps it was just a fluke. She tried the restaurant again, but the food tasted just as bad. For Kira the restaurant has a low _______. number of customer services consistency of quality comparative quality level of quality product differentiation

level of quality

When Cheetos developed a new "cheesy" flavor, Cheddar Jalapeno Crunchy Cheetos, it was an example of a _______. product line brand extension concept testing line extension product modification

line extension

Doritos has expanded beyond its original Nacho Cheese flavor to Cool Ranch, Jacked, Spicy Sweet Chili, and Salsa Verde, to name a few. These are examples of _______. aesthetic modifications product modifications functional modifications line extensions

line extensions

A run-out strategy of product deletion _______. does not make any effort to extend the life of the product may focus on intensifying marketing efforts in a core market is only used if a phase-out has been unsuccessful lowers the price of the product to eliminate inventory quickly

may focus on intensifying marketing efforts in a core market

Product deletion can best be described as the process of deleting a product from the product mix when it _______. no longer satisfies enough customers has experienced a product recall no longer includes the latest technology is deemed to be unprofitable through a systematic review

no longer satisfies enough customers

A cereal manufacturer has decided to delete one of its brands of cereal that is not satisfying enough customers. It will delete the cereal by letting it decline and not changing its marketing strategy in a process called _______. phase-out run-out immediate drop cutback

phase-out

ford is classy and sporty classy and conservative practical and sporty practical and conservative

practical and conservative

Procter & Gamble is in the process of eliminating products from the product mix because they no longer satisfy a sufficient number of customers. This is best described as _______. product adoption product positioning commercialization disruptive innovation product deletion

product deletion

Nari works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as chorreadores. Nari's firm thinks this type of product can catch on in the United States because they are exotic and environmentally friendly. Refer to Scenario 11.3. Nari is working with a team to develop the product. It has identified a sustainable teak wood and designed a unique cotton drip bag for the coffee maker. It has also identified several potential manufacturers in Central America. Nari's company is currently working on the _______ for the pour-over coffee maker. product quality concept testing commercialization support services product design

product design

Whirlpool has developed a new washing machine with new technology that can sense the needs of each load of laundry and adjust the water levels and wash actions to make clothes cleaner while being gentler on the fabric. It also has added new features such as the ability to spray detergent directly and evenly on clothes and an option to steam clean. Since its competition does not make a washing machine with these features, Whirlpool is creating _______. product differentiation level of quality product positioning consistency of quality Assessment question

product differentiation

If Kimberly-Clark's Cottonelle brand of toilet paper offered you a position where you would have total marketing responsibility for all of its flushable wipes, this position would probably hold the title of _______. product manager brand manager sales manager venture team leader

product manager

During the last recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble (P&G) decided to release a cheaper, more basic version of its Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the South for about six months. The product failed to take off, and P&G discontinued Tide Basic. A few years later it tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 11.1. P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers' minds. This is referred to as _______. product organization product positioning line extension product development product modification

product positioning

Years ago, Old Spice was marketed to older men. In 2010, the company came out with new commercials and advertisements through the "The Man Your Man Could Smell Like" campaign that featured athlete Isaiah Mustafa and was geared towards younger customers. Through _______, Old Spice was able to boost sales and reach a new demographic. product positioning head-to-head positioning repositioning perceptual mapping Assessment question

repositioning

"Does this new product idea meet our company's overall objectives?" is a question that marketers would most likely ask during the _______ phase of the new-product development process. commercialization screening product development concept testing

screening

Method is a nontoxic, biodegradable cleaning supplies company. Suppose one of the employees on the production team at Method got an idea for the company to expand into biodegradable plastic wrap. He has heard about new technologies that could make this possible. Method has the resources to invest in this new product, but after considering it, the production managers nixed the idea because it did not fit well with its product mix. What stage of the product development process was Method in? Screening Business analysis Product development Commercialization Test marketing

screening

In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 11.2. By using a larger can size and different colors, Coca-Cola is changing the _______ of the product. repositioning product features functionality styling quality Assessment question

styling

Chase Bank offers a credit card that it differentiates from competing cards by providing a toll-free phone number that connects directly with a customer service agent rather than an automated system. Chase is differentiating this credit card through _______. product features product styling support services product quality

support services

To delete products, companies should periodically evaluate each product to determine its impact on the overall effectiveness of the firm's product mix. This process is called a _______. product performance review profitability analysis deletion evaluation systematic review

systematic review

Neveah works in research and development at a consumer products firm. She meets up with Sergio, who works in finance, Arun, who works in production, and David, who works in marketing. Together they are going to develop a new product that Neveah's department had researched. They are responsible for all aspects of developing the product. This is an example of a _______. work group venture team brand management positioning team brand department

venture team