Deck 8: Developing and Managing Products and Services

Question 1

What are two major sources of new-product ideas?

A)internal sources and external sources
B)core-member sources and non-core-member sources
C)government sources and non-government sources
D)direct competitor sources and indirect competitor sources
E)distributor sources and non-distributor sources

Answer 1

A

Question 2

To differentiate themselves, many companies go beyond offering products and services; they are also developing and delivering customer ________.

A)feedback
B)experiences
C)brands
D)product lines
E)events

Answer 2

B

Question 3

________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

A)Shopping products
B)Unsought products
C)Specialty products
D)Industrial products
E)Line extensions

Answer 3

C

Question 4

A ________ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

A)private brand
B)service variability
C)service
D)product
E)service encounter

Question 5

Products and services fall into two broad classifications based on the types of consumers that use them. Which of the following is one of these broad classes?

A)industrial products
B)specialty products
C)supplies and services
D)materials and parts
E)convenience products

Question 6

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products.

A)Shopping products
B)Convenience products
C)Unsought products
D)Industrial products
E)Line extensions

Question 7

________ are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products.

A)Services
B)Consumer products
C)Line extensions
D)Industrial products
E)Straight extensions

Question 8

What are the two ways that a company can obtain new products?

A)line extension and brand management
B)internal development and merger
C)new-product development and acquisition
D)service development and product extension
E)market mix modification and research and development

Question 9

________ are those products purchased for further processing or for use in conducting a business.

A)Unsought products
B)Specialty products
C)Shopping products
D)Industrial products
E)Accessories

Question 10

The third level of a product that product planners consider is a(n)________ around the core benefit and actual product that offers additional consumer services and benefits.

A)augmented product
B)brand equity
C)brand extension
D)industrial product
E)image

Question 11

Product is a key element in a company's ________, which may, at one extreme, consist of pure tangible goods or, at the other extreme, pure services.

A)market offering
B)brand equity
C)brand extension
D)co-branding
E)core customer value

Question 12

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

A)Line extensions
B)Services
C)Brands
D)Consumer products
E)Supplements

Question 13

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.

A)Materials
B)Parts
C)Capital items
D)Specialty items
E)Supplies

Question 14

New product development starts with ________.

A)idea generation
B)idea screening
C)concept development
D)concept testing
E)test marketing

Question 15

Product improvements and product modifications and new brands can all be classified as ________.

A)pioneer products
B)new products
C)product concepts
D)product ideas
E)test products

Question 16

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts.

A)Specialty products
B)Line extensions
C)Unsought products
D)Shopping products
E)Convenience products

Question 17

Product planners consider products and services on three levels. The most basic level is the ________, which addresses the question, "What is the buyer really buying?"

A)actual product
B)augmented product
C)core customer value
D)co-branding
E)exchange

Question 18

The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers.

A)competitors, distributors, and employees; new styles
B)customers, brands, products; product images
C)customers, competitors, and markets; superior value
D)product, marketing mix, and marketing strategy; functional features
E)product life cycle, legal responsibilities, and social responsibilities; innovations

Question 19

Most manufactured materials and parts are sold directly to ________ for further processing.

A)consumers
B)industrial users
C)government buyers
D)co-branders
E)wholesalers

Question 20

Product planners must design the actual product and also find ways to ________ it in order to create the bundle of benefits that will create the most customer value.

A)promote
B)package
C)brand
D)augment
E)present

Question 21

After concept testing, a firm would engage in which stage in developing and marketing a new product?

A)idea screening
B)marketing strategy development
C)business analysis
D)product development
E)test marketing

Question 22

During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

A)concept testing
B)marketing strategy development
C)business analysis
D)product development
E)test marketing

Question 23

________ calls for testing new-product concepts with groups of target consumers.

A)Concept development
B)Concept testing
C)Idea generation
D)Idea screening
E)Test marketing

Question 24

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

A)business feasibility plan
B)market strategy development
C)business analysis
D)product acceptance
E)proposal

Question 25

During the ________ stage of the new-product development process, helps spot good ideas and eliminate poor ones.

A)idea generation
B)idea screening
C)concept testing
D)product development
E)commercialization

Question 26

An attractive idea must be developed into a ________.

A)product idea
B)product concept
C)product image
D)test market
E)product strategy

Question 27

In the concept testing stage of new-product development, ________ form(s)of the product concept is presented to groups of target consumers.

A)physical
B)conceptual
C)final
D)market-tested
E)alternative

Question 28

A ________ is a detailed description, drawing, or prototype of that idea that can be shown to potential customers.

A)concept test
B)product concept
C)marketing strategy
D)product development
E)business analysis

Question 29

According to the authors, the marketing strategy for a new product typically excludes ________.

A)identification of the target market
B)positioning of the new product relative to competing products
C)promotions and advertising expenditures
D)information on dealing with defective products
E)sales goals

Question 30

The purpose of idea generation is to create a ________ of ideas. The purpose of succeeding stages is to ________ that number.

A)small number; reduce
B)small number; increase
C)large number; increase
D)large number; reduce
E)limited number; sustain

Question 31

Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?

A)the proposed customer value proposition
B)the product image
C)the marketing strategy
D)the business analysis
E)the planned market rollout

Question 32

A new approach to idea generation invites broad communities of internal and external people into the new product innovation process. This approach is called ________.

A)crowdsourcing
B)concept development
C)competitive intelligence
D)soliciting new users
E)marketing research

Question 33

The marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and ________.

A)market share
B)competition
C)secondary market
D)competition's anticipated reaction
E)life-cycle duration

Question 34

According to your text, which of the following is perhaps the most important external source of new-product ideas?

A)engineers
B)customers
C)competitors
D)trade magazines, shows, and seminars
E)distributors and suppliers

Question 35

Your company decides to use external sources for developing new product ideas. Which of the following would be consulted?

A)company executives and professionals
B)company records and data
C)intrapreneurial programs
D)suppliers
E)salespeople

Question 36

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.

A)business feasibility
B)feasibility study
C)business analysis
D)product acceptance
E)concept testing

Question 37

With what groups do firms conduct concept testing for new products?

A)suppliers
B)employees
C)potential consumers
D)manufacturers
E)competitors

Question 38

GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt.

A)idea generation
B)idea screening
C)concept testing
D)concept development
E)business analysis

Question 39

Typically, the initial marketing strategy outlines the sales goals, market share goals, and ________ goals for the first year.

A)advertising
B)promotion
C)profit
D)positioning
E)target market

Question 40

A detailed version of a new idea stated in meaningful customer terms is called a ________.

A)product idea
B)product concept
C)product image
D)product proposal
E)product movement

Question 41

Increasing profits will most likely occur at which stage of the PLC?

A)product development
B)introduction
C)growth
D)maturity
E)decline

Question 42

The stage of new-product development where the product and marketing program are tested in realistic market settings is called ________.

A)idea generation
B)concept testing
C)product concept
D)commercialization
E)test marketing

Question 43

In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively.

A)business analysis
B)idea generation
C)concept development and testing
D)product development
E)marketing mix

Question 44

________ refers to a detailed version of the new-product idea stated in meaningful consumer terms.

A)Product generation
B)The product concept
C)Product testing
D)Product commercialization
E)Product crowdsourcing

Question 45

________ refers to inviting broad communities of people (such as customers, employees, independent scientists, and researchers)into the new-product innovation process.

A)Internal teams
B)External teams
C)Crowdsourcing
D)Recruitment
E)Market development

Question 46

Introducing a new product into the market is called ________.

A)test marketing
B)new product development
C)experimenting
D)commercialization
E)marketing development

Question 47

________ refers to the identification of good ideas (and the dropping of poor ones)as soon as possible.

A)Crowdsourcing
B)Idea generation
C)Concept testing
D)Idea screening
E)Concept development

Question 48

According to the authors, managers must accept the ________ of a product.

A)the research team
B)the product life cycle
C)the market segmentation
D)the boss
E)the idea generation

Question 49

According to the authors, when does a company typically invest in test marketing?

A)before the full product introduction
B)at idea generation time
C)before the product concept
D)after meeting with a stockholder
E)after a logistics discussion with suppliers

Question 50

Which theory suggests that new products sometimes fail because they are unable to cross the gaps between the different market segments of innovators, early adopters, early majority, and late majority?

A)idea evaluation theory
B)diffusion of innovations theory
C)idea screening theory
D)life cycle theory
E)data processing theory

Question 51

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

A)test marketing
B)focus group surveys
C)commercialization
D)post-testing
E)business analysis

Question 52

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released. Sales must be estimated before costs can be estimated. Which of the following did your text recommend for forecasting sales?

A)considering the history of market opinions
B)conducting surveys of competitors
C)considering the sales history of similar products and conducting surveys of market opinions
D)applying the PLC concept
E)none of the above

Question 53

What is the final step in the new-product development process?

A)idea generation
B)product concept
C)concept testing
D)prototype
E)commercialization

Question 54

Under what circumstances might it be wise for a company to invest in a test market?

A)when a new product requires a major investment
B)when the product is not working well
C)when management is sure of the marketing program
D)when the product risk is very low
E)when the cost of new-product development is very low

Question 55

What are the two main focuses of the product life cycle theory?

A)distributors and suppliers
B)competitors and costs
C)sales and profits
D)profits and target markets
E)target markets and competitors

Question 56

If the product or service passes the business analysis test, it moves into what stage?

A)concept development
B)product development
C)market testing
D)strategy development
E)product proposal

Question 57

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

A)how to develop a market strategy
B)which market to compete in
C)whether to launch the new product
D)how to compete in the market
E)how long to compete in the market

Question 58

________ is the product life cycle period when sales fall off and profits drop.

A)Introduction
B)Growth
C)Maturity
D)Decline
E)Development

Question 59

What are the stages, in correct order, of the product life cycle?

A)Introduction, Maturity, Growth, and Decline
B)Introduction, Growth, Decline, and Maturity
C)Introduction, Growth, Maturity, and Decline
D)Growth, Introduction, Maturity, and Decline
E)Decline, Introduction, Growth, and Maturity

Question 60

According to the product life cycle theory, the sales of a typical product follow a(n)________ curve.

A)U-shaped
B)S-shaped
C)L-shaped
D)I-shaped
E)O-shaped

Question 61

In which stage of the PLC would promotional expenditures most likely increase as a company attempts to react to increasing competition?

A)product development
B)introduction
C)growth
D)maturity
E)decline

Question 62

A sensational ________ may grab consumers' attention and produce pleasing aesthetics, but it does not necessarily improve a product's performance.

A)design
B)style
C)experience
D)service-profit chain
E)augmented product

Question 63

A company can create a competitive product by adding ________.

A)co-brandings
B)product features
C)product quality
D)service variability
E)conformance

Question 64

When a product enters the maturity stage, the company should consider ________.

A)harvesting the product
B)modifying the product, market, or marketing mix
C)divesting the product
D)maintaining the product
E)dropping the product

Question 65

________ is one of the marketer's major positioning tools because it has a direct impact on product or service performance; it is therefore closely linked to customer value and satisfaction.

A)Packaging
B)Product quality
C)Total quality management
D)Specialty marketing
E)Positioning

Question 66

In which stage of the typical consumer product life cycle do sales growth level off?

A)product development
B)introduction
C)maturity
D)growth
E)decline

Question 67

Which of the following best represents the options a company has when a product is declining?

A)maintain, reposition, harvest or drop the product
B)harvest or drop the product
C)maintain, harvest, or drop the product
D)maintain or pioneer the product
E)pioneer, harvest, or maintain the product

Question 68

The ________ is a model that proposes that a "chasm" exists between early adopters of a product and the early majority.

A)innovation life cycle
B)technology adoption life cycle
C)product life cycle
D)diffusion cycle
E)marketing life cycle

Question 69

A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry.

A)harvest the product
B)maintain the product without change
C)drop the product
D)search for replacements
E)delay planning

Question 70

A company wants to sustain this stage as long as possible.

A)growth
B)decline
C)maturity
D)introduction
E)commercialization

Question 71

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

A)product development
B)introduction
C)growth
D)maturity
E)adoption

Question 72

A product's ________ contributes to the customer's product-use experience.

A)style
B)design
C)package
D)brand
E)functionality

Question 73

Which of the following would lead to continued sales in the maturity stage of the PLC?

A)overcapacity of products in the market
B)modifying the marketing mix
C)strong management
D)more promotion
E)more spending

Question 74

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

A)repositioning
B)concept testing
C)business analysis
D)innovation management
E)customer-centered product development

Question 75

In the narrowest sense, quality can be defined as ________.

A)positive post-purchase dissonance
B)brand equity
C)freedom from defects
D)quality assurance
E)customer-centered thinking

Question 76

Most products in the marketplace are in the ________ stage of the product life cycle.

A)development
B)introduction
C)growth
D)maturity
E)decline

Question 77

Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?

A)introduction
B)growth
C)maturity
D)decline
E)phase-in

Question 78

Developing a product involves defining the benefits that it will offer. These benefits are communicated and delivered by ________ such as quality, features, and style and design.

A)private brands
B)product attributes
C)consumer products
D)product mixes
E)marketing tools

Question 79

Which of the following is an accurate description of a style?

A)Styles appear in home, clothing, but seldom in art.
B)Once a style is invented, it will only last for a few months.
C)A style has a cycle showing several periods of renewed interest.
D)Styles tend to attract only a limited following.
E)Styles are complicated modes of expression.

Question 80

Which of the following internal professional membership organizations monitor product quality?

A)Society of Public Company
B)Society of Quality Management
C)Society of Consumer Assurance
D)Society of Quality Assurance
E)Society of Firm Management