Mktg 351 ch12 thestbank
48. 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? a. Idea generation b. Commercialization c. Test marketing d. Screening e. Product development
Product development
43. Which of the following phases of new-product development is likely the least costly for the firm? a. Commercialization b. Concept testing c. Business analysis d. Product development e. Test marketing
Concept testing
117. Test marketing is an extension of the product screening process. a. True b. False
False
145. Venture teams work outside of established organization divisions. a. True b. False
True
170. Positioning to avoid competition may be best when the product's performance characteristics do not differ significantly from competing brands. a. True b. False
True
174. Run-outs are usually taken for technologically obsolete products as a form of product deletion. a. True b. False
True
30. Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Morgan is able to evaluate the ____ modifications to the sofa, but not the ____ modifications. a. aesthetic; quality b. quality; aesthetic c. aesthetic; functional d. functional; quality e. functional; aesthetic
aesthetic; functional
60. One disadvantage of test marketing a new product is that a. the product is distributed on a regional basis. b. competitors may copy the product. c. the results give little indication of the product's future success. d. price, advertising, and packaging cannot be varied from market to market. e. it might fail before it can be commercialized.
competitors may copy the product.
75. The Home Depot differentiates its product offerings from its competition with stores like Sam's by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through a. product ancillaries. b. company quality. c. customer services. d. company features. e. product features.
customer services.
33. A genuinely new product, like the iPhone once was, offers a. lower prices than existing products. b. at least two new product features. c. innovative benefits to consumers. d. better value than existing products. e. at least two new product features at a lower price.
innovative benefits to consumers.
81. 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 a. business analysis. b. immediate drop. c. screening. d. phase-out. e. run-out.
phase-out.
64. Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as a. market development. b. regional commercialization. c. rollout. d. market extension. e. competitive jamming.
rollout.
58. 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. a. business analysis b. commercialization c. screening d. test marketing e. product development
test marketing
28. The major drawback to using aesthetic modifications is a. the cost of the modifications. b. that the value of the modification is determined subjectively. c. the need for redesign of the product. d. a possible decrease in market share. e. that there is no differentiation for the product in the market.
that the value of the modification is determined subjectively.
151. ______________ refers to how a product is conceived, planned, and produced. a. Product differentiation b. Level of quality c. Product positioning d. Product features e. Product design
Product design
161. Max is a product manager at Whirlpool. He learned that one of his competitors, Kenmore, was engaging in a product test of a new dishwasher. He decided to lower prices on his Whirlpool dishwashers in Kenmore's test market area in order to _____ the test program. a. end b. stimulate c. jam d. scramble e. screen
jam
104. Automobile makers rely heavily on aesthetic modifications. a. True b. False
True
105. The major drawback in using aesthetic modifications is that their value is determined subjectively. a. True b. False
True
153. If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product? a. Avoiding competition positioning b. Head-to-head competition positioning c. Positioning based on price d. Target market positioning e. Positioning based on style
Avoiding competition positioning
164. Alexandria has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n) _____ modification. a. subjective b. quality c. aesthetic d. functional e. sensory
aesthetic
176. Lydia's company plans to release a new version of their signature television set. This television will have more advanced features, including better sound quality and high definition. They plan to discontinue the older version once this newer version is launched. This is an example of a a. brand extension. b. aesthetic modification. c. line extension. d. product modification. e. perceptual change.
product modification.
118. Test marketing should be conducted when a product has been given a low probability of success. a. True b. False
False
119. New-product development does not include planning for advertising. a. True b. False
False
123. The majority of new-product projects initiated by major companies reach the commercialization stage. a. True b. False
False
126. The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets. a. True b. False
False
128. Product design is the process of creating and designing products so that consumers perceive them as different from competing products. a. True b. False
False
130. Product support services are important mainly for products that are mechanical in nature. a. True b. False
False
135. The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence. a. True b. False
False
171. Repositioning requires changes in perception but not usually changes in product features. a. True b. False
False
53. Marcellis is a product manager for a major electronics company. His current project is the development and introduction of a new smartphone. Since there are a number of smartphones currently out on the market, Marcellis is concerned about product failure. Currently, Marcellis and his team are in the screening phase of the new product development process. Has his team already passed that phase that is best able to measure the product failure concern? a. Yes, the best phase is the idea screening phase. b. Yes, the best phase is the concept testing phase. c. No, the best phase is the business analysis phase. d. Yes, the best phase is the test marketing phase. e. No, the best phase is the test marketing phase.
No, the best phase is the test marketing phase.
177. Which of the following is an example of a functional modification? a. Planters Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open. b. Nissan installed a new battery for its Nissan Leaf that will allow it to travel much longer before needing to be recharged. c. A smartphone manufacturer uses a more durable metal for its phones that is less likely to break if dropped. d. PepsiCo begins using a new sweetener in its Pepsi product that changes the taste slightly. e. Prada releases a handbag with a different design and color.
Planters Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open.
132. Warranties and customer training are examples of customer services. a. True b. False
True
140. A brand manager is a type of product manager. a. True b. False
True
40. 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.
74. To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when a. the company's prices are higher than the competition's. b. the company introduces a new product. c. consumers are willing to pay for product support services. d. consumers perceive all products in a market to have essentially the same quality, design, and features. e. the quality of the company's products is inferior to the quality of competing products.
consumers perceive all products in a market to have essentially the same quality, design, and features.
85. A brand manager in a multiproduct firm would be responsible for a. performance of a specific brand. b. all brands within a product line. c. branding the products of the firm. d. all products in the brand-line group. e. all brands made by the firm.
performance of a specific brand.
84. A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an organization. a. product marketer b. brand manager c. market manager d. product manager e. line manager
product manager
39. Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase. a. idea generation b. concept testing c. business analysis d. screening e. test marketing
screening
165. Which of the following is the best example of disruptive innovation? a. Razor blade b. Can opener c. Snickers candy bar d. iPhone e. Chevy Corvette
iPhone
184. Marcus works in marketing at a mid-sized firm that sells to both business and consumer markets. He is in charge of all the marketing activities targeted toward business customers, while his partner focuses on the activities targeting consumers. Marcus is most likely a a. sales manager. b. venture team manager. c. product manager. d. brand manager. e. market manager.
market manager.
93. Scenario 12.1 Use the following to answer the questions. 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 2012 and began national distribution in 2013. About 18 months later, a series of competitors' ads was run claiming 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. Refer to Scenario 12.1. 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) a. strategy for the maturity phase. b. phase-out product deletion strategy. c. immediate-drop decision. d. pullout product deletion policy. e. return to test marketing.
immediate-drop decision.
59. 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 U.S. region, he might want to engage in ____ to reduce the validity of the other firm's results. a. testing interference b. leadership pricing c. jamming d. test marketing e. stress marketing
jamming
87. 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 a. product manager. b. brand manager. c. consulting team member. d. member of a venture team. e. market account manager.
member of a venture team.
77. Product deletion can best be described as the process of deleting a product from the product mix when it a. is perceived as a failure by top management. b. is reviewed negatively by a systematic review board. c. increases production costs and decreases profits. d. no longer responds to promotional efforts. e. no longer satisfies a sufficient number of customers.
no longer satisfies a sufficient number of customers.
31. Rick is a new product manager for a large biochemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well. a. performing marketing research b. keeping tabs on the actions of competitors c. not introducing new products d. generating new product ideas e. addressing customers' concerns about products
not introducing new products
94. Scenario 12.2 Use the following to answer the questions. Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear; this product, however, is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. Refer to Scenario 12.2. 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) ____. a. run-out; phase out b. phase-out; immediate drop c. immediate drop; run-out d. immediate drop; phase-out e. phase-out; run-out
phase-out; immediate drop
50. Kara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked, "What level of quality are we building into the camping gear?" Based on this question, Kara and her team are most likely in the ____ phase of new-product development. a. commercialization b. concept testing c. business analysis d. product development e. test marketing
product development
25. Functional modifications usually require that the product be a. less specific. b. limited to its functions. c. more appealing. d. more technical. e. redesigned.
redesigned.
66. A new variety of Doritos is initially introduced in Fort 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. a. multistage introduction b. rollout approach c. test market expansion d. mass commercialization e. trickle-down approach
rollout approach
19. In product modification, the first issue to consider is whether a. existing customers can perceive that a product modification has been made. b. the product is modifiable. c. quality is modified. d. modification will make the product more consistent with customers' desires. e. modification will provide greater satisfaction to the consumer.
the product is modifiable.
89. The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the ____ approach. a. brand manager b. functional team c. multiproduct manager d. special projects e. venture team
venture team
113. Estimates of sales are an important component of business analysis. a. True b. False
True
71. 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 a. positioning. b. level and consistency of quality. c. ability to meet customer service needs. d. design, styling, and level of quality. e. design, styling, and features.
design, styling, and features.
15. Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of a. product modifications. b. functional modifications. c. aesthetic modifications. d. line extensions. e. product lining.
line extensions.
83. 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.
78. Product deletion a. tends to be an easy task for most organizations. b. may be opposed by management. c. involves immediate termination. d. is a matter of indifference to customers. e. usually occurs only with convenience items.
may be opposed by management.
158. The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is a. perceptual mapping. b. repositioning. c. product deletion. d. product development. e. product positioning.
perceptual mapping.
182. Tesla vehicles have the unique characteristics of being a totally electric, premium luxury vehicle. The marketing manager wants to focus on these unique aspects rather than comparing the vehicles directly to competitors. He wants Tesla to be seen in a totally different light. Based on these objectives, he would want a. to avoid competition b. to engage in head-to-head competition c. to base its positioning on price d. to base its positioning on the target market e. to base its positioning on the vehicle's styling
to avoid competition
49. Ideally, test marketing should follow which stage in the new-product development process? a. Commercialization b. Business analysis c. Screening d. Limited production e. Product development
Product development
38. A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process? a. Business analysis b. Product testing c. Idea generation d. Commercialization e. Screening
Screening
56. Select the true statement concerning test marketing. a. Test marketing is simply an extension of the screening and developing stages. b. Test marketing should be conducted after all the marketing mix variables have been finalized. c. Test marketing is a limited introduction of the product in areas chosen to represent the intended market. d. If the product is successful in the test market, then it is ensured of success upon total introduction. e. Large corporations usually launch test marketing efforts in one small area at a time.
Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
112. An important question in the business analysis stage of new-product development is "Is demand strong enough to justify entering the market and will this demand endure?" a. True b. False
True
114. The product development stage determines the technical feasibility of producing the new product. a. True b. False
True
137. The run-out approach to product deletion is used for technologically obsolete products. a. True b. False
True
139. Product managers can be responsible for a single product, a product line, or several products. a. True b. False
True
62. 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. a. idea generation b. commercialization c. test marketing d. business analysis e. screening
commercialization
1. Compare and contrast line extensions and product modifications. ANSWER: A line extension is the development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs. On the other hand, a product modification involves changing one or more characteristics of a product. A product modification differs from a line extension because the original product does not remain in the line. However, like a line extension, a product modification entails less risk than developing new products.
1. 라인 확장 및 제품 수정사항 비교 및 대조 답변: 라인 연장은 기존 제품군에서 하나 이상의 제품과 밀접하게 관련되어 있지만 다소 다른 고객 요구를 충족하도록 특별히 설계된 제품의 개발이다. 반면에, 제품 수정은 제품의 하나 이상의 특성을 변경하는 것을 포함한다. 제품 수정이 라인 연장과 다른 이유는 원래 제품이 라인 내에 남아 있지 않기 때문이다. 그러나 라인 증설과 마찬가지로 신제품 개발보다 제품 변경에 따른 리스크가 적다.
10. Why is it often difficult for organizations to delete products? ANSWER: Most organizations find it difficult to delete a product because a decision to drop a product may be opposed by managers and other employees who believe that the product is necessary to the product mix. Salespeople who still have some loyal customers are especially upset when a product is dropped. Considerable resources and effort are sometimes spent trying to change a slipping product's marketing mix to improve its sales and thus avoid having to eliminate it.
10. 조직에서 제품을 삭제하는 것이 어려운 이유는? 답변: 대부분의 조직에서는 제품을 떨어뜨리는 결정이 제품 믹스에 필요하다고 믿는 관리자와 다른 직원들에 의해 반대될 수 있기 때문에 제품을 삭제하는 것이 어렵다고 생각한다. 충성 고객이 아직 일부 있는 판매원들은 특히 제품이 떨어졌을 때 화가 난다. 매출 증대를 위해 제품의 마케팅 믹스를 변경하고 이를 제거하지 않기 위해 상당한 자원과 노력이 소모되기도 한다.
11. Compare and contrast a product manager and a brand manager. ANSWER: A product manager is responsible for a product, a product line, or several distinct products that make up an interrelated group within a multiproduct organization. On the other hand, a brand manager is responsible for a single brand. Both product and brand managers operate cross-functionally to coordinate the activities, information, and strategies involved in marketing an assigned product. Product managers and brand managers plan marketing activities to achieve objectives by coordinating a mix of distribution, promotion (especially sales promotion and advertising), and price.
11. 제품 매니저와 브랜드 매니저를 비교하고 대조한다. 답변: 제품 관리자는 멀티프로덕트 조직 내에서 상호 관련 그룹을 구성하는 제품, 제품 라인 또는 몇 가지 개별 제품에 대해 책임을 진다. 반면 브랜드 매니저는 단일 브랜드를 책임진다. 제품과 브랜드 관리자 모두 할당된 제품 마케팅에 관련된 활동, 정보 및 전략을 조정하기 위해 교차 기능을 운영한다. 제품 관리자와 브랜드 관리자는 유통, 홍보(특히 판매 촉진 및 광고), 가격을 혼합하여 목표를 달성하기 위한 마케팅 활동을 계획한다.
12. Describe product positioning. List and explain the bases for positioning. ANSWER: Product positioning refers to the decisions and activities intended to create and maintain a certain concept of a firm's product (relative to competitive brands) in customers' minds. When marketers introduce a product, they try to position it so that it appears to have the characteristics that the target market most desires. Marketers can use several bases for product positioning. A common basis for positioning products is to use competitors. A firm can position a product to compete head-on with another brand. Head-to-head competition may be a marketer's positioning objective if the product's performance characteristics are at least equal to those of competitive brands and if the product is priced lower. Head-to-head positioning may be appropriate even when the price is higher if the product's performance characteristics are superior. A product's position can be based on specific product attributes or features. If a product has been planned properly, its features will give it the distinct appeal needed. The target market can also be a positioning basis caused by marketing. This type of positioning relies heavily on promoting to the types of people who use the product. Other bases for product positioning include price, quality level, and benefits provided by the product.
12. 제품 포지셔닝에 대해 설명하십시오. 위치 지정을 위한 베이스 목록을 작성하고 설명하십시오. 답변: 제품 포지셔닝(Product Positioning)은 고객의 마음에서 기업의 제품(경쟁 브랜드에 상대적인)의 특정 개념을 만들고 유지하기 위한 결정과 활동을 말한다. 마케터들은 상품을 소개할 때 대상 시장이 가장 원하는 특성을 갖도록 포지셔닝을 시도한다. 마케터들은 제품 포지셔닝을 위해 몇 가지 기반을 사용할 수 있다. 제품 포지셔닝의 공통적인 근거는 경쟁사를 사용하는 것이다. 회사는 다른 브랜드와 정면 경쟁하기 위해 제품을 배치할 수 있다. 제품의 성능 특성이 적어도 경쟁 브랜드의 성능과 동일하고 제품의 가격이 낮을 경우 정면 경쟁은 마케터들의 포지셔닝 목표가 될 수 있다. 제품의 성능 특성이 우수할 경우 가격이 더 높은 경우에도 정면 배치가 적절할 수 있다. 제품의 위치는 특정한 제품 속성이나 특징에 기초할 수 있다. 제품이 제대로 계획되었다면, 그 특징은 필요한 뚜렷한 매력을 줄 것이다. 타깃 시장은 마케팅으로 인한 포지셔닝 기반도 될 수 있다. 이러한 유형의 포지셔닝은 제품을 사용하는 유형의 사람들에게 홍보하는 데 크게 의존한다. 제품 포지셔닝을 위한 다른 기준에는 제품에서 제공하는 가격, 품질 수준 및 편익이 포함된다.
13. Why do brands require repositioning? What are the ways in which repositioning can be accomplished? ANSWER: When introducing a new product into a product line, one or more existing brands may have to be repositioned to minimize cannibalization of established brands and thus ensure a favorable position for the new brand. Repositioning can be accomplished by physically changing the product, its price, or its distribution. Rather than making any of these changes, marketers sometimes reposition a product by changing its image through promotional efforts. Finally, a marketer may reposition a product by aiming it at a different target market.
13. 브랜드는 왜 위치를 바꾸어야 하는가? 위치 조정을 수행할 수 있는 방법은 무엇인가? 답변: 신제품 라인을 도입할 때 기존 브랜드 중 하나 이상을 재배치하여 기존 브랜드의 식인화를 최소화함으로써 새로운 브랜드에 유리한 위치를 확보해야 할 수 있다. 제품, 가격 또는 배포를 물리적으로 변경하여 위치를 변경할 수 있다. 마케터들은 이런 어떤 변화도 하기보다는 판촉 활동을 통해 제품의 이미지를 변화시킴으로써 제품의 위치를 바꾸기도 한다. 마지막으로, 마케팅 담당자는 다른 목표 시장을 겨냥하여 제품의 위치를 변경할 수 있다.
2. Identify and describe the three major ways to modify existing products, and give an example of each. ANSWER: There are three major ways to modify products: quality, functional, and aesthetic modifications. Quality modifications are changes relating to a product's dependability and durability. The changes usually are executed by altering the materials or the production process. For instance, for a service, such as air travel, quality modifications may involve increasing leg room in the seating area. Changes that affect a product's versatility, effectiveness, convenience, or safety are called functional modifications; they usually require that the product be redesigned. For example, making programs available in 3-D on DirectTV is a functional modification. Aesthetic modifications change the sensory appeal of a product by altering its taste, texture, sound, smell, or appearance. The fashion industry relies heavily on aesthetic modifications from season to season. For example, Louis Vuitton clothing, handbags, and leather goods are leaders in the haute couture industry. In order to maintain its reputation for the utmost level of quality and style, the company performs aesthetic modifications on its products regularly.
2. 기존 제품을 수정하는 3가지 주요 방법을 파악하여 기술하고, 각각의 예를 제시한다. 답변: 제품을 수정하는 방법은 크게 세 가지가 있다: 품질, 기능 및 심미적 수정. 품질 수정은 제품의 신뢰성과 내구성과 관련된 변화다. 변경은 보통 재료 또는 생산 과정을 변경하여 실행된다. 예를 들어, 항공 여행과 같은 서비스의 경우, 품질 변경은 좌석 구역의 다리 공간을 늘리는 것을 포함할 수 있다. 제품의 다기능성, 효과성, 편리성 또는 안전에 영향을 미치는 변화를 기능적 수정이라고 한다. 그들은 대개 제품을 재설계할 것을 요구한다. 예를 들어 Direct에서 3-D로 프로그램을 사용 가능으로 설정하는 방법TV는 기능 수정이다. 심미적 수정은 제품의 맛, 질감, 소리, 냄새 또는 외관을 변화시킴으로써 제품의 감각적 매력을 변화시킨다. 패션 산업은 계절마다 심미적인 변화에 크게 의존한다. 예를 들어 루이비통 의류, 핸드백, 가죽제품은 오트 쿠튀르 산업의 선두주자들이다. 최고의 품질과 스타일로 명성을 유지하기 위해 정기적으로 제품에 대한 심미적 수정을 실시한다.
3. List and discuss the major phases of the new-product development process. ANSWER: The seven phases of the new-product development process are idea generation, screening, concept testing, business analysis, product development, test marketing, and commercialization. Businesses and other organizations seek product ideas that will help them to achieve their objectives. This activity is idea generation. In the process of screening, the ideas with the greatest potential are selected for further review and analyzed to determine whether or not they match the organization's objectives and resources. In concept testing, a small sample of potential buyers is presented with a product idea through a written or oral description (and perhaps a few drawings) to determine their attitudes and initial buying intentions regarding the product. During the business analysis stage, the product idea is evaluated to determine its potential contribution to the firm's sales, costs, and profits. Product development is the phase in which the organization determines if it is technically feasible to produce the product and if it can be produced at costs low enough to make the final price reasonable. A limited introduction of the product in geographic areas chosen to represent the intended market is called test marketing. During the commercialization phase, plans for full-scale manufacturing and marketing must be refined and settled and budgets for the project prepared.
3. 신상품 개발 프로세스의 주요 단계를 나열하고 논의한다. 답변: 신제품 개발 프로세스의 7단계는 아이디어 창출, 선별, 개념 테스트, 비즈니스 분석, 제품 개발, 테스트 마케팅 및 상용화다. 기업 및 기타 조직은 목표 달성에 도움이 될 제품 아이디어를 찾는다. 이 활동은 아이디어 생성이다. 심사 과정에서 잠재력이 가장 큰 아이디어를 선별해 추가 심사하고 분석하여 조직의 목표와 자원에 부합하는지 여부를 판단한다. 개념 테스트에서 잠재 구매자의 작은 샘플은 제품에 대한 태도와 초기 구매 의도를 결정하기 위해 서면 또는 구두 설명(그리고 아마도 몇 개의 도면)을 통해 제품 아이디어를 제시한다. 비즈니스 분석 단계에서 제품 아이디어를 평가하여 회사의 매출, 비용 및 이익에 대한 잠재적 기여도를 결정한다. 제품개발은 기술적으로 제품생산이 가능한지, 최종가격을 합리적으로 할 수 있을 만큼 낮은 비용으로 생산할 수 있는지를 조직이 판단하는 단계다. 의도된 시장을 나타내기 위해 선택한 지리적 영역에 제품을 제한적으로 도입하는 것을 시험 마케팅이라고 한다. 사업화 단계에서는 본격적인 제조·마케팅 계획을 정비·정산하고 사업 예산을 마련해야 한다.
4. What is concept testing, and why is it important? ANSWER: In concept testing, a small sample of potential buyers is presented with a product idea through a written or oral description (and perhaps a few drawings) to determine their attitudes and initial buying intentions regarding a product. For a single product idea, an organization can test one or several concepts of the same product. Concept testing is important because it is a low-cost procedure that allows a company to determine customers' initial reactions to a product idea before it invests considerable resources in research and development.
4. 개념시험이란 무엇이며, 왜 중요한가? 답변: 개념 테스트에서, 잠재 구매자의 작은 샘플은 제품에 대한 태도와 초기 구매 의도를 결정하기 위해 서면 또는 구두 설명(그리고 아마도 몇 개의 도면)을 통해 제품 아이디어를 제시한다. 단일 제품 아이디어를 위해 조직은 동일한 제품의 하나 또는 여러 개념을 테스트할 수 있다. 개념 테스트는 기업이 연구개발에 상당한 자원을 투자하기 전에 제품 아이디어에 대한 고객의 초기 반응을 판단할 수 있는 저렴한 절차이기 때문에 중요하다.
5. What exactly is analyzed during the business analysis phase of new-product development? ANSWER: During the business analysis stage, a product idea is evaluated to determine its potential contribution to a firm's sales, costs, and profits. In the course of a business analysis, evaluators determine whether a product fits with the organization's existing product mix. They also ascertain if demand of the product is strong enough to justify entering a market, and whether the demand will endure. Moreover, the evaluators estimate types of environmental and competitive changes that can affect the product's future sales, costs, and profits. During the business analysis stage, a firm determines whether its research, development, engineering, and production capabilities are adequate to develop a product; whether new facilities must be constructed, how quickly they can be built, and how much they will cost; and whether the necessary financing for development and commercialization is on hand or is obtainable based on terms consistent with a favorable return on investment.
5. 신상품 개발 사업 분석 단계에서 정확히 분석되는 것은? 답변: 비즈니스 분석 단계에서 제품 아이디어를 평가하여 기업의 매출, 비용 및 이익에 대한 잠재적 기여도를 결정한다. 사업 분석 과정에서 평가자는 제품이 조직의 기존 제품 혼합과 적합한지 여부를 결정한다. 그들은 또한 상품에 대한 수요가 시장 진입을 정당화할 만큼 충분히 강한지, 그리고 수요가 지속될지 여부를 확인한다. 또한 평가자는 제품의 미래 판매, 비용 및 이익에 영향을 미칠 수 있는 환경 및 경쟁적 변화의 유형을 추정한다. 비즈니스 분석 단계에서 기업은 자신의 연구, 개발, 엔지니어링 및 생산 능력이 제품 개발에 적합한지 여부, 새로운 설비를 건설해야 하는지 여부, 얼마나 빨리 건설할 수 있는지, 비용은 얼마인지, 개발과 사업화에 필요한 자금 조달은 h에 있는지 판단한다.또는 유리한 투자 수익률과 일치하는 조건에 기초하여 획득할 수 있다.
6. Discuss the advantages and problems associated with test marketing. ANSWER: Test marketing provides several benefits. It lets marketers expose a product in a natural marketing environment to measure its sales performance. A company can strive to identify weaknesses in a product or in other parts of the marketing mix. A product weakness discovered after a nationwide introduction can be expensive to correct. Moreover, if consumers' early reactions are negative, marketers may be unable to persuade consumers to try the product again. Thus, making adjustments after test marketing can be crucial to the success of a new product. On the other hand, test marketing results may be positive enough to warrant accelerating the product's introduction. Test marketing also allows marketers to experiment with variations in advertising, pricing, and packaging in different test areas and to measure the extent of brand awareness, brand switching, and repeat purchases resulting from these alterations in the marketing mix. Test marketing is not without risks. It is expensive, and competitors may try to interfere. A competitor may attempt to "jam" the test program by increasing its own advertising or promotions, lowering prices, and offering special incentives, all to combat the recognition and purchase of the new brand. Sometimes, too, competitors copy the product in the testing stage and rush to introduce a similar product. It is desirable to move to the commercialization phase as soon as possible after successful testing.
6. 시험 마케팅과 관련된 장점과 문제점을 논의한다. 답변: 테스트 마케팅은 몇 가지 이점을 제공한다. 그것은 마케터들이 그것의 판매 실적을 측정하기 위해 자연적인 마케팅 환경에서 상품을 노출하도록 한다. 기업은 제품이나 마케팅 믹스의 다른 부분에서 약점을 식별하기 위해 노력할 수 있다. 전국적으로 소개된 후에 발견된 제품의 약점은 수정하는데 비용이 많이 들 수 있다. 더구나 소비자들의 초기 반응이 부정적일 경우 마케터들은 소비자들을 설득해 제품을 다시 시도하지 못할 수도 있다. 따라서 시험 마케팅 후 조정을 하는 것이 신제품의 성공에 결정적일 수 있다. 반면에, 테스트 마케팅 결과는 제품의 도입 속도를 높일 수 있을 만큼 충분히 긍정적일 수 있다. 또한 테스트 마케팅은 마케팅 담당자가 다양한 테스트 영역에서 광고, 가격 및 포장의 변화를 실험하고 마케팅 믹스에서 이러한 변경으로 인한 브랜드 인지도, 브랜드 전환 및 반복 구매의 정도를 측정할 수 있도록 한다. 테스트 마케팅은 위험이 없는 것은 아니다. 그것은 비싸고, 경쟁자들이 간섭하려고 할 수 있다. 경쟁자는 새로운 브랜드의 인지도와 구매에 맞서기 위해 자체 광고나 프로모션을 늘리고 가격을 낮추며 특별 인센티브를 제공하여 테스트 프로그램을 "잠그"하려고 시도할 수 있다. 때로는 경쟁업체들도 시험 단계에서 제품을 베끼고 비슷한 제품을 서둘러 선보이기도 한다. 테스트에 성공한 후 가능한 한 빨리 상용화 단계로 이동하는 것이 바람직하다.
7. Discuss the major approaches that marketers use to differentiate their products. ANSWER: The three approaches that marketers use to differentiate their products from their competitors' products are product quality, product design and features, and product support services. Product quality refers to the overall characteristics of a product that allow it to perform as expected in satisfying customer needs. The concept of quality varies between consumer and business markets. For business markets, technical suitability, ease of repair, and company reputation are important characteristics. Unlike consumers, most businesses place far less emphasis on price than on product quality. Product design refers to how a product is conceived, planned, and produced. The style of a product is one design feature that can allow certain products to sell very rapidly. Good design, however, means more than just appearance; it also involves a product's functionality and usefulness. Product features are specific design characteristics that allow a product to perform certain tasks. By adding or subtracting features, a company can differentiate its products from those of the competition. Product features also can be used to differentiate products within the same company. Many companies differentiate their product offerings by providing support services. Usually referred to as customer services, these services include any human or mechanical efforts or activities a company provides that add value to a product.
7. 마케팅 담당자가 자사 제품을 차별화하기 위해 사용하는 주요 접근 방식에 대해 논의한다. 답변: 마케팅 담당자가 경쟁사의 제품과 제품을 차별화하기 위해 사용하는 세 가지 접근 방식은 제품 품질, 제품 설계 및 기능, 제품 지원 서비스다. 제품 품질은 고객의 니즈를 충족시키는 데 있어 기대만큼의 성능을 발휘할 수 있는 제품의 전반적인 특성을 말한다. 품질의 개념은 소비자와 기업 시장에 따라 다르다. 비즈니스 시장에서는 기술적 적합성, 수리 용이성, 회사 평판 등이 중요한 특징이다. 소비자와 달리, 대부분의 사업체들은 제품의 품질보다 가격에 훨씬 덜 중점을 둔다. 제품 디자인(Product design)은 제품이 어떻게 구상, 계획, 생산되는지를 말한다. 제품의 스타일은 특정 제품이 매우 빠르게 판매될 수 있는 하나의 디자인 기능이다. 그러나 좋은 디자인은 단순한 외관 이상의 것을 의미한다; 그것은 또한 제품의 기능성과 유용성을 포함한다. 제품 특성은 제품이 특정 작업을 수행할 수 있도록 하는 특정 설계 특성이다. 특징을 더하거나 빼서, 회사는 경쟁 제품과 차별화할 수 있다. 제품 기능도 같은 회사 내에서 제품을 차별화하는 데 사용할 수 있다. 많은 기업들이 지원 서비스를 제공함으로써 제품 오퍼링을 차별화한다. 일반적으로 고객 서비스라고 하는 이러한 서비스에는 제품에 가치를 부가하는 인적 또는 기계적 노력이나 기업이 제공하는 활동이 포함된다.
8. Identify and explain the dimensions of product quality. ANSWER: The two dimensions of product quality are level of quality and consistency of quality. Level of quality is the amount of quality a product possesses. The concept is a relative one because the quality level of one product is difficult to describe unless it is compared with that of other products. Consistency of quality refers to the degree to which a product has the same level of quality over time. Consistency means giving customers the quality they expect every time they purchase the product. As with level of quality, consistency is a relative concept. It implies a quality comparison within the same brand over time.
8. 제품 품질의 치수 파악 및 설명 답변: 제품 품질의 두 가지 차원은 품질의 수준과 품질의 일관성이다. 품질 수준은 제품이 가진 품질의 양이다. 한 제품의 품질 수준을 다른 제품과 비교하지 않으면 기술하기 어렵기 때문에 상대적인 개념이다. 품질의 일관성은 제품이 시간에 따라 동일한 품질 수준을 가지는 정도를 말한다. 일관성은 고객이 제품을 구입할 때마다 기대하는 품질을 고객에게 제공하는 것을 의미한다. 품질 수준과 마찬가지로 일관성은 상대적인 개념이다. 그것은 시간이 지남에 따라 같은 브랜드 내에서 품질 비교를 함축한다.
9. Why and how might an organization delete existing products? ANSWER: Product deletion is the process of eliminating a product from the product mix, usually because it no longer satisfies a sufficient number of customers. A declining product reduces an organization's profitability and drains resources that could be used to modify other products or develop new ones. A marginal product may require shorter production runs, which can increase per-unit production costs. Finally, when a dying product completely loses favor with customers, the negative feelings may transfer to some of the company's other products. There are three basic ways to delete a product: phase it out, run it out, or drop it immediately. A phase-out allows the product to decline without a change in the marketing strategy; no attempt is made to give the product new life. A run-out exploits any strengths left in the product. The third alternative, an immediate drop of an unprofitable product, is the best strategy when losses are too great to prolong the product's life.
9. 조직이 왜 그리고 어떻게 기존 제품을 삭제할 수 있는가? 답변: 제품 삭제는 제품 혼합물에서 제품을 제거하는 과정으로, 대개는 충분한 수의 고객을 만족시키지 못하기 때문이다. 감소하는 제품은 조직의 수익성을 감소시키고 다른 제품을 수정하거나 새로운 제품을 개발하는 데 사용될 수 있는 자원을 고갈시킨다. 한계 생산물은 생산 가동 시간을 단축해야 할 수 있으며, 이는 단위 생산 비용을 증가시킬 수 있다. 마지막으로, 죽어가는 제품이 고객들에게 완전히 인기를 잃었을 때, 부정적인 감정은 회사의 다른 제품들로 옮겨질 수 있다. 제품을 삭제하는 기본적인 방법은 세 가지가 있다: 단계적 제거, 실행 또는 즉시 삭제. 단계적 폐기는 마케팅 전략의 변화 없이 제품이 쇠퇴할 수 있게 한다. 제품에 새로운 활력을 주기 위한 어떠한 시도도 하지 않는다. 런아웃은 제품에 남아 있는 모든 장점을 활용한다. 세 번째 대안은 수익성이 없는 제품의 즉각적인 하락으로, 손실이 너무 커서 제품의 수명을 연장할 수 없을 때 최선의 전략이다.
147. Your company makes personal hygiene products for young men. Your product line includes deodorants and shaving products. You are responsible for managing the company's relationships with the major retailers in the western U.S. region. In a recent meeting with a store manager, you noticed young men selecting the company's deodorant product, then moving down the aisle to select a competitor's body wash product. As you think about it more, it makes perfect sense that a young man buying deodorant would also be interested in a body wash product. Your company currently does not make a body wash product. Based on your in-store observations, which of the following product management actions would you recommend to take advantage of this deodorant and body wash linkage? a. A line extension b. A quality modification c. A functional modification d. An aesthetic modification e. New packaging
A line extension
95. Scenario 12.2 Use the following to answer the questions. Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear; this product, however, is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. Refer to Scenario 12.2. Polar management is currently in which stage of new product development? a. Idea generation b. Screening c. Concept testing d. Product development e. Test marketing
Idea generation
37. What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? a. Product development b. Evaluation of competitor's efforts c. Screening d. Idea generation e. Business analysis
Screening
73. Which of the following is the best definition of product features? a. The things a product does that provide benefits to the customer b. Mechanical efforts or activities a company provides that add value to a product c. Specific design characteristics that allow a product to perform certain tasks d. How a product is conceived, planned, and produced with the necessary functions e. The physical appearance of a product
Specific design characteristics that allow a product to perform certain tasks
92. Scenario 12.1 Use the following to answer the questions. 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 2012 and began national distribution in 2013. About 18 months later, a series of competitors' ads was run claiming 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. Refer to Scenario 12.1. In 2012, Cheetos was in which phase of new-product development? a. Idea screening b. Product development c. Test marketing d. Business analysis e. Idea generation
Test marketing
115. Relatively few product ideas are put into the product development stage. a. True b. False
True
116. Test marketing is a sample launching of the entire marketing mix. a. True b. False
True
120. Test marketing is used by companies of all sizes, primarily because of the perceived risk of product failure on the open market and the associated consequences. a. True b. False
True
121. Time spent in test marketing can benefit a firm's competitors. a. True b. False
True
122. During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled. a. True b. False
True
124. Designing a product that customers perceive as different from competing products is an example of product differentiation. a. True b. False
True
125. Consistency of product quality means giving consumers the quality they expect every time they purchase a product. a. True b. False
True
127. The overall characteristics of a product that allow it to perform as expected in satisfying customer needs are called product quality. a. True b. False
True
129. How a pair of jeans looks, regardless of the price, is an example of styling. a. True b. False
True
134. Systematic reviews of a company's product mix aid in determining when product deletion is necessary. a. True b. False
True
98. Many of the so-called new products that are launched each year are in fact line extensions. a. True b. False
True
91. Scenario 12.1 Use the following to answer the questions. 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 2012 and began national distribution in 2013. About 18 months later, a series of competitors' ads was run claiming 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. Refer to Scenario 12.1. 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. a product modification. b. a line extension. c. a quality modification. d. a functional extension. e. an aesthetic modification.
a line extension.
20. 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. a modification should make the product more consistent with customers' desires. b. competing companies should not be aware of planned product modifications. c. a modification should change customers' desires to provide greater satisfaction. d. management must perceive the modification as a reasonable and necessary action. e. production costs and materials needed should be limited.
a modification should make the product more consistent with customers' desires.
96. Scenario 12.2 Use the following to answer the questions. Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear; this product, however, is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. Refer to Scenario 12.2. The group of people that management has assembled to take on the task of new-product development is best described as a. a buying center. b. a product development task force. c. a marketing development team. d. a venture team. e. a brand management team.
a venture team.
90. Scenario 12.1 Use the following to answer the questions. 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 2012 and began national distribution in 2013. About 18 months later, a series of competitors' ads was run claiming 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. Refer to Scenario 12.1. The new, improved Cheetos Fat-Free Crunchies was a(n) ____. a. quality modification b. aesthetic modification c. functional modification d. brand extension e. product line extension 치토스 무지방 크런치는 첨단 기술을 통해 개발된 제품이다. 치토스는 더 느끼하고 더 오래 신선하게 유지되는 저지방 간식을 만드는 기술을 개발했다. 치토스는 2012년 한정된 시장에서 무지방 크런치를 선보였고 2013년부터 전국 유통을 시작했다. 약 18개월 후, 치토스 크런치에는 실제로 1.5그램의 지방이 들어 있고, 방부제와 첨가제가 들어 있다고 주장하는 경쟁사들의 광고가 연달아 게재되었다. 치토스 크런치의 맛도 일부 사람들에 의해 부정적으로 인식된다는 연구 결과가 나왔다. 치토스는 제품을 살리기 위해 남은 지방을 0g으로 줄이고 방부제를 꺼내 맛을 좋게 했다.
aesthetic modification
86. If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of ____ manager. a. product b. sales c. marketing d. advertising e. brand
brand
45. Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process. a. screening b. concept testing c. business analysis d. product development e. test marketing
business analysis
46. "Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development. a. screening b. concept testing c. business analysis d. product development e. test marketing
business analysis
47. Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process. a. idea generation b. market testing c. business analysis d. concept testing e. compatibility research
business analysis
80. 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. a. idea generation b. screening c. product development d. test marketing e. business analysis
business analysis
88. The members of a venture team come from a. the marketing department. b. a consulting firm. c. the research and development department. d. the production and finance departments. e. different functional areas of an organization.
different functional areas of an organization.
55. The test marketing stage a. is an extension of the screening stage. b. should come immediately after business analysis. c. ensures that the product will not fail. d. is a sample launching of the entire marketing mix. e. prevents competitors from copying the product.
is a sample launching of the entire marketing mix.
16. If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of a. a brand extension. b. line extension. c. functional modification. d. quality modification. e. a new-to-the-world product.
line extension.
52. 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. a. product design b. screening c. product development d. concept testing e. test marketing
product development
36. Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during a. commercialization. b. screening. c. concept testing. d. product development. e. test marketing.
product development.
51. 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 a. test marketing. b. commercialization. c. concept testing. d. product development. e. business analysis.
product development.
67. Three major ways in which marketers engage in product differentiation are a. product quality, product design and features, and product support services. b. product quality, product support services, and packaging. c. product support services, product design and features, and product positioning. d. product positioning, product quality, and product management. e. product positioning, product design and features, and product promotion.
product quality, product design and features, and product support services.
76. Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticed a problem with the way one of the pockets was strung. Since it was a weekend, he didn't expect to have it repaired. However, when he called the store to leave a message, someone answered the phone. She gave Seth a number where he could call a repair representative who would come straight to Seth's house within an hour. Brunswick Billiards is most likely differentiating itself through a. support of its level of quality. b. product support services. c. a helpline feature. d. product features. e. customer requests.
product support services.
22. 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) a. aesthetic modification. b. line extension. c. material adjustment. d. functional modification. e. quality modification.
quality modification.
32. A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a a. genuinely new product. b. radically new product. c. new product failure. d. controlled new product. e. market share advance.
radically new product.
97. Scenario 12.2 Use the following to answer the questions. Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear; this product, however, is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. Refer to Scenario 12.2. 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 a. product-drop decision. b. discontinuance procedure. c. performance review. d. closing system. e. systematic review.
systematic review.
63. Early in the commercialization phase, marketers must make decisions about a. warranties, repairs, and replacement parts. b. product features and break-even points. c. functionality, safety, and convenience. d. the proposed marketing mix variables. e. which ideas to further pursue.
warranties, repairs, and replacement parts.
156. Which of the following statements is true about organizational structures for managing products? a. A product manager is responsible for several distinct products that make up a group. b. Brand managers do not operate cross-functionally in an organization. c. Market managers are responsible for managing multiple brands. d. Product managers do not operate cross-functionally in an organization. e. A brand manager is responsible for a product line.
A product manager is responsible for several distinct products that make up a group.
149. You were just hired to manage the new-product development process at a consumer products company. In your first meeting with the CEO since being hired, she recounted to you the numerous times in the past when the company launched products it thought would be successful. However, it later came to realize the products had a detrimental impact on the company's overall costs and profits mix. She wants you to revamp the company's new product development process to prevent this from happening in the future. Which of the following steps in the new-product development process should you overhaul in order to address the CEO's concerns? a. Concept testing b. Product development c. Idea generation d. Test marketing e. Business analysis
Business analysis
162. When Tyler was visiting family in Ohio, he ate a flavor of Lay's Potato Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home? a. The flavor was being deleted through an immediate drop. b. The flavor was in the screening phase of the new-product development process. c. The chips were undergoing a repositioning. d. He was visiting a Lay's test market. e. The new flavor was going through product differentiation.
He was visiting a Lay's test market.
148. The annual Consumer Reports rating of your company's flagship product was just released. Generally speaking the rating was good but not great. Based on the consumer comments that were referenced in the rating, it appears that many consumers have a negative view of the product's convenience and safety attributes. In order to address these consumer concerns your company should consider doing which of the following? a. Make aesthetic modifications to the product. b. Make line extensions to the product. c. Make functional modifications to the product. d. Lower the price of the product. e. Make quality modifications to the product.
Make functional modifications to the product.
154. Your company has a product that is struggling in its market. However, the product appears to have some strength left that can be exploited. Which of the following product deletion actions would be most appropriate for the product? a. Increase the price and implement a run-out strategy. b. Immediately drop the product. c. Increase the marketing for the product and gradually phase it out. d. Reduce the price and implement a run-out strategy. e. Increase the marketing expenditures on the product and implement a run-out strategy.
Reduce the price and implement a run-out strategy.
150. You are in the new product development process for a new consumer electronics product. So far, everything has been very positive, and you are starting to believe this product might be a blockbuster. As you prepare for the next stage of the process, you are concerned that your competition might try to "jam" your new product by increasing promotional activities for their own products. More importantly, you are concerned that these competitors might try to copy your product as you move into this next stage. Which of the following stages of the new-product development process are you about to enter? a. Product development b. Test marketing c. Concept testing d. Commercialization e. Screening
Test marketing
152. Which of the following statements is true about product support services? a. They only include human efforts. b. They do not impact customer satisfaction. c. They include delivery, installation, financing, and customer training. d. They do not add product value. e. Some marketers do not provide these to any degree.
They include delivery, installation, financing, and customer training.
179. Joseph has developed a detailed description of a new product as well as an illustration, and he has asked a small sample of customers to read the product description and give feedback. With this step completed, Joseph is now examining whether this new product will fit well with the company's current product mix, whether demand is high enough to begin developing the product, and whether the product is likely to increase the firm's profitability. Joseph is most likely in the ______________ stage of the product development process. a. idea generation b. screening c. concept testing d. business analysis e. product development
business analysis
163. Madeline runs a local ice cream stand and is developing a new type of ice cream sundae. She just sent a press release to the local newspaper and updated her website with information about the new sundae. Based on this information, Madeline is most likely in the _____ stage of the new-product development cycle. a. screening b. commercialization c. business analysis d. concept testing e. product development
commercialization
178. The car has undergone major redesigns and upgrades in the past few decades. For instance, car windows used to have to be rolled down manually. Now drivers can push a button to roll their windows up and down. The body of the car has been changed as well. In particular, the front of the car has been changed so that in case of a crash, the very front of the car will absorb more of the impact. The intent is to leave the cabin area intact so that the driver and passengers will not be harmed. The first example is a(n) _________________ modification, while the second change is an example of a(n) ______________modification. a. quality; functional b. product; functional c. functional; quality d. product; aesthetic e. aesthetic; quality
functional; quality
180. The manager at an engine manufacturer has asked a venture team to develop a more improved version of its most popular engine. Currently, the members of the venture team are brainstorming ways to improve the engine so that it better serves its target market. It decides to send customers surveys asking them what features they would like to see in a new engine. The venture team is most likely in the _________________ stage of product development. a. test marketing b. business analysis c. concept testing d. idea generation e. screening
idea generation
181. Janna has just bought an Oculus Rift. She likes the virtual reality headset, but there are some features she wishes it has that it does not. She hears about the HTC Vive and decides to test it out. She plans to compare its performance with the Oculus Rift. This will allow her to get a better idea about whether the Oculus Rift was a smart purchase. Janna is most likely trying to use these comparisons to determine _________________ . a. product features b. styling c. level of quality d. consistency of quality e. positioning
level of quality
183. Daryl is interested in determining how customers consider his firm's dietary products compared with its competitors. He begins surveying customers and asking them to state what they think about the products and brands in the dietary industry based on the dimensions of effectiveness and affordability. He will use this feedback to create "ideal points" for what consumers desire in dietary products. He will then compare these "ideal points" with his firm's products as well as other brands in the industry to see how they measure up. Daryl is engaging in a. brand management. b. perceptual mapping. c. product repositioning. d. product modification. e. product differentiation.
perceptual mapping.
157. Lowry Lawn Supplies manufactures lawn mowers and other lawn care products. Their latest lawn mower comes with blades that incorporate new technology that allows them to last five times longer than typical blades. The lawn mower also includes a comfort grip that is easier to hold and an updated style available in a variety of colors. Lowry Lawn Supplies is most likely differentiating itself through _____ with its blades and through _____ with its handle and styling. a. durability; style b. quality; design c. design; attractiveness d. customer focus; design e. quality; comfort
quality; design
159. When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market. a. transfer b. reposition c. adapt d. update e. revitalize
reposition
160. During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _____, which analyzes a product idea to see if it matches an organization's objectives and resources, and _____, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product. a. business analysis; test marketing b. screening; concept testing c. product development; test marketing d. screening; test marketing e. business analysis; concept testing
screening; concept testing
173. Styling involves the specific design characteristics that allow a product to perform certain tasks. a. True b. False
False
99. Line extensions are less common than other new products because line extensions are more expensive and more risky. a. True b. False
False
131. Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features. a. True b. False
False
133. The decision to drop a product should always be a unanimous decision of the management team. a. True b. False
False
136. The phase-out approach to product deletion exploits any strengths left in the product. a. True b. False
False
138. A run-out approach to product deletion lets the product decline without changing the marketing strategy. a. True b. False
False
143. Product managers are most useful in the development of new products. a. True b. False
False
146. Venture team members usually come from the same functional areas within the firm. a. True b. False
False
167. Disruptive innovations involve completely new technologies. a. True b. False
False
169. Marketers have little influence over shaping consumers' concepts or perceptions. a. True b. False
False
172. Functional modifications are usually executed by altering the materials or the production process. a. True b. False
False
23. Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization? a. Aesthetic b. Operational c. Benefit d. Functional e. Quality
Quality
141. There is no best approach to managing products. a. True b. False
True
142. Brand and product managers operate cross-functionally. a. True b. False
True
144. A venture team has the authority to execute plans for the development of products. a. True b. False
True
44. 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? a. Idea generation b. Business analysis c. Commercialization d. Test marketing e. Screening
Business analysis
42. Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea? a. Screening b. Concept testing c. Business analysis d. Product development e. Test marketing
Concept testing
70. ____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important characteristics of quality for business markets. a. Reliability/ease of use; technical suitability/ease of repair b. Technical suitability/reasonable price; trusted brand name/ease of repair c. Durability/technical suitability; company reputation/ease of repair d. Ease of maintenance/durability; company reputation/technical suitability e. Trusted brand name/ease of repair; reliability/company reputation
Ease of maintenance/durability; company reputation/technical suitability
100. Quality modifications never seek to reduce product quality. a. True b. False
False
102. Functional modifications make an existing product more durable. a. True b. False
False
106. New products are classified solely as innovations that have never been sold by any organization. a. True b. False
False
107. Sales personnel are an external source for new product ideas. a. True b. False
False
108. Concept testing gives reliable feedback, but at a relatively high cost. a. True b. False
False
109. Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions. a. True b. False
False
35. When marketers at Nabisco met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of new-product development? a. Idea generation b. Business analysis c. Test marketing d. Commercialization e. Product development
Idea generation
65. Which of the following is a disadvantage of gradually introducing a product to market? a. It reduces the risk of introducing a new product. b. It is easier logistically to introduce it all at once. c. It is difficult to slow down production enough for a gradual introduction. d. It allows competitors to monitor the results of the new product. e. It prevents product differentiation based on geographical differences.
It allows competitors to monitor the results of the new product.
17. ____ 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. a. Quality modification b. Line extension c. Aesthetic modification d. Feature modification e. Product mix modification
Line extension
110. The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix. a. True b. False
True
111. Business analysis provides a tentative sketch of a product's profitability. a. True b. False
True
14. Why are line extensions more common than new products? a. They are higher risk and more expensive. b. They are guaranteed to succeed in the marketplace. c. They are less expensive and lower-risk. d. They require no market research. e. Modifications to existing products are very easy.
They are less expensive and lower-risk.
57. 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.
101. Functional modifications usually require that the product be redesigned. a. True b. False
True
103. Functional modifications help an organization achieve and maintain a progressive image. a. True b. False
True
166. Warby Parker was developed to challenge the dominant player in the market for eyewear. Founder Neil Blumenthal realized that a major firm, Luxottica, had an almost monopolistic hold on the eyewear and vision industry. They could therefore set high prices. He and his partners developed Warby Parker to develop less expensive glasses in-house at a fraction of the cost. Not only are Warby Parker's glasses much more affordable, but also the company donates money to a vision care nonprofit organization for every pair of glasses it sells. This allows people in developing countries access to eyewear who normally could not afford it. Warby Parker is an example of a company that has successfully engaged in disruptive innovation. a. True b. False
True
168. Head-to-head positioning can be appropriate even when the price is higher. a. True b. False
True
18. What is the primary distinction between a line extension and a product modification? a. A product modification results in a completely new product while a line extension is simply changing an old product. b. In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. c. Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. d. 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. e. Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.
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.
27. Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications. a. aesthetic b. functional c. operational d. quality e. feature
aesthetic
29. If Stonefield 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. a. aesthetic b. functional c. quality d. image e. feature
aesthetic
72. The three major ways to modify a product include a. aesthetic, quality, and functional changes. b. extensions, generations, and upgrades. c. color, size, and quantity modifications. d. styling, product features, and product design. e. quality, quantity, and design.
aesthetic, quality, and functional changes.
61. 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. a. test marketing b. business analysis c. concept testing d. product development e. commercialization
commercialization
41. Patrick is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the ___ phase of the new-product development process. a. concept testing b. business analysis c. idea screening d. idea generation e. test marketing
concept testing
68. The ability of a product to provide the same level of quality over time is called a. consistency. b. longevity. c. variability. d. status. e. image.
consistency.
21. Quality modifications are changes that relate to a product's a. dependability and durability. b. effectiveness and versatility. c. price and availability. d. reliability and value. e. value and durability.
dependability and durability.
34. 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.
82. A run-out policy of product deletion a. lets the product decline without changing the product strategy. b. is an immediate-drop decision. c. exploits any strengths left in the product. d. raises the price of the product continually to secure as much profit as possible before the product is priced out of the market. e. occurs when production cannot keep pace with demand because of material shortages.
exploits any strengths left in the product.
24. Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications. a. functional b. formal c. aesthetic d. quality e. package
functional
26. 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) a. product line extension. b. quality modification. c. aesthetic modification. d. market extension. e. functional modification.
functional modification.
69. The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is a. quality. b. consistency. c. durability. d. functionality. e. design.
quality.
79. 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) a. evaluation study. b. formal evaluation. c. product inspection. d. systematic review. e. reassessment examination.
systematic review.
54. 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. a. screening b. test marketing c. product development d. business analysis e. idea generation
test marketing
175. You work in the marketing department of Procter & Gamble. P&G recently made the announcement that it was going to delete certain brands that were not meeting profit expectations. You are part of the team to help in this product deletion process. You and your team get together to discuss a brand of soap that has seen sales decrease in recent years. The team discusses how you should delete the product. Each of you writes down comments regarding your thoughts about the brand. The comments can be summed up as follows: "The brand is not doing well, but it still has a loyal following among some consumers." "I think this brand still has some strengths left." Based on these comments, which product deletion strategy should the company adopt? a. phase-out b. drop-down c. run-out d. immediate drop e. close-out
run-out
155. A _________ works outside established organizational divisions and has greater flexibility to apply innovative approaches to new products and markets. a. market manager b. venture team c. brand manager d. product manager e. marketing manager
venture team
