Principles of Marketing Chapter 11 Quiz

Why are line extensions more common than new products?

They are less expensive and lower-risk.

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.

aesthetic

The three major ways to modify a product include

aesthetic, quality, and functional changes.

Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.

business analysis

One disadvantage of test marketing a new product is that

competitors may copy the product.

The ability of a product to provide the same level of quality over time is called

consistency

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when

consumers perceive all products in a market to have essentially the same quality, design, and features.

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

design, styling, and features

When a firm identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they've come to expect from current products in a specific market, it is engaging in

disruptive innovation

A run-out policy of product deletion

exploits any strengths left in the product.

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

functional

One way service businesses communicate a higher level of service quality to their customers is by having their employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic of services.

intangibility

The fact the services cannot be inventoried and then sold at a later date is called

perishability

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as

rollout

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity

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

product positioning

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

pure goods

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is

quality