Marketing Ch 12: practice quiz

During the 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 a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. P&G had to modify its Tide product to appeal to this new demographic. What type of product modification did it make?

Quality modification

Why are line extensions more common than new products?

They are less expensive and lower-risk.

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.

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 _______.

consistency of quality

Quality modifications are changes that relate to a product's

dependability and durability.

Buckyballs was marketed as a desk toy made up of small magnetic spheres. Adults could play with the magnetic spheres and create different shapes. Labeling on Buckyballs packaging clearly stated that this product should be kept away from children. As concerns for safety grew, Buckyballs placed even more warning labels on the packaging. Despite this fact, thousands of children who thought the magnets were candy ingested them. The magnets could cause fatal complications inside the body. If more than one was swallowed, they could attract one another inside the stomach, creating tearing and other complications. Despite all the warnings, the Consumer Product Safety Commission ruled the product was too dangerous and filed a lawsuit. Though Buckyballs magnets were discontinued, they have since returned under the name Zen Magnets.Refer to Scenario 12.2. The company was forced to delete its magnetic desk toy product due to safety concerns after being sued by the Consumer Product Safety Commission. What type of product deletion did the firm most likely use?

immediate drop

Functional testing occurs in which part of the product development stage?

product development

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

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 campaign. Refer to Scenario 12.3. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned?

"New Mother—Tastes Nothing Like the Old One"

Which is the best way to handle the deletion of a product?

Conduct a review to determine its impact on the overall product mix.

Look at the perceptual map for car brands. Answer the questions below. Refer to Scenario 12.5. In which quadrant would a Ford most likely fit?

The lower-left quadrant, conservative and practical

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

a modification should make the product more consistent with customers' desires.

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 campaign. Refer to Scenario 12.3. 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.

aesthetic

Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, and a manager for Simply Orange. What types of managers are these?

brand managers

The Amazon Echo is a voice-controlled speaker and personal assistant. It has been in development since 2010. In 2014 it was released only to Amazon Prime members for purchase. In 2015 it expanded and became available in stores nationwide. Amazon has since expanded the Echo family to include the Echo Dot Kids Edition, Echo Spot, Echo Show, and more. What stage in the product development process was Amazon Echo in 2015?

commercialization

Victoria 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. Victoria's firm thinks this type of product can catch on in the United States because they are exotic and highly environmentally friendly. Refer to Scenario 12.4. Victoria 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. Victoria and her team are at what stage in the product development process?

concept testing

When automakers started installing Apple CarPlay and Android Auto in cars, this was an example of a(n) _______.

functional modification

When the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip and still continued to produce all of its other Cool Whip products, this was an example of

line extension

____ 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

Dorito's has expanded to Nacho Cheese Doritos, Cool Ranch Doritos, and Salsa Verde Doritos, to name a few. These are examples of

line extensions

Recognizing that CD players are a thing of the past, those who manufactured CD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of CD 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 _______.

phase-out

During the 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 a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. 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 positioning

Victoria 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. Victoria's firm thinks this type of product can catch on in the United States because it is exotic and highly environmentally friendly. Refer to Scenario 12.4. Victoria'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. Victoria'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?

run-off

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 campaign. Refer to Scenario 12.3. By using a larger can size and different colors, Coca-Cola is changing the _______ of the product.

styling

During the 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 a year. The product failed to take off, and it discontinued Tide Basic. A few years later P&G tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. What stage of the product development process was P&G in when it decided to discontinue Tide Basic?

test marketing