Deck 9: Setting Product Strategy and Introducing New Offerings

Question 1

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________.

A) natural products
B) component materials
C) operating supplies
D) equipment
E) processed materials

Answer 1

D

Question 2

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________.

A) reliability
B) conformance quality
C) durability
D) compatibility
E) interoperability

Answer 2

B

Question 3

Carlos always buys bread and milk when he goes grocery shopping. In this case, bread and milk are examples of impulse goods.

Answer 3

False

Question 4

For ________ to be valued for products like vehicles and kitchen appliances, it should not be associated with an excessive price premium and the product must not be subject to rapid technological obsolescence.

A) conformance quality
B) performance quality
C) repairability
D) durability
E) style

Question 5

Industrial goods can be classified in terms of how they enter the production process and their relative costliness. Identify the three groups of industrial goods.

Question 6

To the manufacturer, a well-designed product is easy to make and distribute; to the customer, it is pleasing to look at and easy to use.

Question 7

Which of the following are tangible goods that normally survive many uses?

A) generic goods
B) durable goods
C) core benefits
D) convenience goods
E) unsought goods

Question 8

In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the "customer-value hierarchy" and identify the five levels of product contained within.

Question 9

Realizing that although household products is a huge category-taking up an entire supermarket aisle or more-it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________.

A) design
B) durability
C) conformance
D) reliability
E) performance quality

Question 10

A ________ is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

A) function
B) product
C) benefit
D) process
E) structure

Question 11

Capital items are long-lasting goods that facilitate developing or managing the finished products.

Question 12

Firms should design the highest performance level possible for their products.

Question 13

Describe the six main service differentiators.

Question 14

Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

Question 15

The five product levels add more customer value, and together they constitute a(n) ________.

A) core benefit
B) basic product
C) augmented product
D) customer-value hierarchy
E) expected product

Question 16

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product.

A) consumption
B) expected
C) potential
D) augmented
E) basic

Question 17

Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

Question 18

Smith & Adams Poultry set up a computer system so that its customers (restaurants and hotels) can directly inform its central supply system about purchase volumes and dates, as well as automatically receive confirmation of orders and shipments. This is an example of a company differentiating its service in terms of ________.

A) customer relationships
B) customer training
C) installation
D) delivery ease
E) ordering ease

Question 19

You know that marketers have traditionally classified products based on characteristics of durability, tangibility, and use. You also know that each product type has an appropriate marketing-mix strategy attached. In analyzing your company's products, you decide to list each of these products and the appropriate marketing-mix strategy to understand where your products "fit." List these products and their appropriate marketing-mix strategies.

Question 20

When a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy?

A) pure tangible good
B) basic product
C) augmented product
D) potential product
E) generic product

Question 21

Which of the following is a purpose of product mapping?

A) studying market matrices
B) integrating target markets
C) identifying market segments
D) educating consumers
E) integrating target matrices

Question 22

What is the significance of design for a company's products and services? What are the advantages of a good design?

Question 23

Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles.

A) optional-feature
B) two-part
C) by-product
D) product line
E) captive-product

Question 24

The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved.

A) branding synergy
B) increased advertising dollars
C) multiple brands
D) bundled package
E) pure bundling

Question 25

Co-branding involves combining two or more well-known existing brands are combined into a joint product and/or marketing them together in some fashion.

Question 26

In your position as a marketing manager for a small industrial company, you have been asked by the president to help differentiate the company's product from its competitors. In reviewing your marketing management notes, you note that the text stated that physical products could be differentiated in nine ways. These nine areas comprise the "meat" of the memo you are writing to the president of your firm. What are the nine ways that physical products can be differentiated?

Question 27

In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements.

A) convenience item
B) flagship product
C) staple item
D) potential product
E) basic platform

Question 28

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market.

A) down-market stretch
B) up-market stretch
C) two-way stretch
D) marketing research
E) disintermediation

Question 29

The product hierarchy stretches from basic needs to particular items that satisfy those needs.

Question 30

Product-mix pricing can involve a number of pricing strategies for the brand manager. List each of these strategies and briefly define each.

Question 31

Explain the concepts of product-mix width, length, depth, and consistency.

Question 32

Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. This is an example of what type of product-mix pricing?

A) mixed bundling
B) pure bundling
C) product line pricing
D) captive-product pricing
E) two-part pricing

Question 33

A ________ is the set of all products and items a particular seller offers for sale.

A) product line
B) product mix
C) product extension
D) product system
E) product class

Question 34

Define line stretching and describe three types of line stretching.

Question 35

Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines.

A) type
B) length
C) class
D) mix
E) width

Question 36

Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing": one price for the disposable products and another for the "hardware."

Question 37

Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

Question 38

________ branding is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products.

A) Cross
B) Ingredient
C) Equity
D) Family
E) Generic

Question 39

A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________.

A) product type
B) product class
C) need family
D) product variant
E) product line

Question 40

The product-line length can be obtained by averaging the number of variants within the brand groups.

Question 41

Which of the following methods for new-product development incorporates buyers' preferences in the final design of the product?

A) quality function deployment
B) market leadership
C) cost leadership
D) incremental innovation
E) disruptive technology

Question 42

The stage in the new product process that occurs first is the ________ stage.

A) idea generation
B) product development
C) test marketing
D) product soft launch
E) concept testing

Question 43

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it pursues ________.

A) disruptive technologies
B) incremental innovation
C) complex innovations
D) discontinuous innovations
E) radical innovations

Question 44

________ are formal statements of expected product performance by the manufacturer.

A) Insurances
B) Warranties
C) Bonds
D) Invoices
E) Balance sheets

Question 45

Packaging includes all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package.

A) retailer
B) design
C) shipping
D) consumer
E) supplier

Question 46

Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition.

A) not known
B) different
C) inferior
D) equivalent
E) superior

Question 47

Most new-product activities are devoted to ________.

A) changing the target markets
B) developing new-to-the-world products
C) introducing backward integration
D) improving existing products
E) changing the existing market dynamics

Question 48

What are the situations in which guarantees are most effective?

Question 49

A(n) ________ is an elaborated version of a product idea expressed in consumer terms.

A) test brand
B) alpha product
C) beta product
D) business schedule
E) product concept

Question 50

Brown & Smith, Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Before approving a new design, the company draws it on a computer and then produces models to show potential consumers and get their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here.

A) conjoint analysis
B) perceptual mapping
C) virtual reality testing
D) rapid prototyping
E) digital fabrication

Question 51

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer orientated) that you wish to see implemented by the design team.

Question 52

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

Question 53

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?

A) commercializing the product
B) performing concept testing
C) conducting beta testing with customers
D) creating a marketing strategy for the product
E) performing business analysis

Question 54

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms use "ingredient branding" of a new item. What are the basic goals of ingredient branding?

Question 55

Which of the following is most closely related with the organic growth of an organization?

A) acquiring a product or service brand
B) entering new market places
C) increasing the operational profitability
D) increasing productivity of employees
E) developing new products from within

Question 56

Warranties are formal statements of expected product performance by the manufacturer.

Question 57

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance.

A) Frequently purchased products
B) High-moving goods
C) Inexpensive products
D) Commodity products
E) Infrequently purchased products

Question 58

Which of the following questions is answered during the business analysis of ideas?

A) Does the product meet a need?
B) Do we have a technically and commercially sound product?
C) Can we find a cost-effective, affordable marketing strategy?
D) Can this product meet sales expectations?
E) Can we find a good concept consumers say they would try?

Question 59

Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

Question 60

Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk.

A) actual
B) perceived
C) real
D) implied
E) stated

Question 61

Identify the five main characteristics that affect the diffusion of innovations. Describe each and provide an example.

Question 62

Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.

Question 63

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

A) awareness
B) adoption
C) evaluation
D) trial
E) interest

Question 64

Dormentor, Inc. produces converts and markets packaging products including boxboard, container board, and numerous other specialty packaging products. In an attempt to increase its organic growth, the company decides to introduce new products. It asks the managers and employees to send in ideas for new products. Before launching products based on any of these ideas, what are the stages that the company has to go through?

Question 65

An innovation's rate of adoption depends in part on compatibility, or the degree to which the benefits of use are observable or describable to others.

Question 66

Explain the concepts of sales-wave research and simulated test marketing.

Question 67

Compare innovation through development of new-to-the-world products with the use of incremental innovation.

Question 68

Identify the major reasons why new product failures occur.

Question 69

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. The company has plans to enter developing markets such as Brazil and India. TechToys, GameTech's major competitor has already started operations in India. GameTech decides to delay its entry to India and closely observe Techtoy's operations in India. What is the possible rationale behind this delaying decision?

Question 70

Joseph, a student of Columbia University, found that many of his classmates had purchased an iPad tablet from Apple. Several months after the product's launch, realizing that the iPad was widely considered to be useful and that many students in the United States had rated it highly, Joseph also decided to purchase an iPad. Which of the following is the adopter group to which Joseph belongs?

A) early adopter
B) innovator
C) late majority
D) laggard
E) early majority

Question 71

A business analysis is performed mainly to identify if a company has a technically and commercially sound product.

Question 72

Cocreation can help a company create favorable word of mouth.

Question 73

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

A) first entry
B) blunt entry
C) parallel entry
D) late entry
E) exchange entry

Question 74

Compare the uses of a product-positioning map and a brand-positioning map.

Question 75

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

A) strategic pay off
B) parallel
C) balancing
D) late
E) compensating

Question 76

Concept testing means validating the product concept by discussing within the design group.

Question 77

Beta testing tests the product within the firm to see how it performs in different applications.

Question 78

________ testing is a customer test that involves placing the product within the firm to see how it performs in different applications.

A) Beta
B) Research
C) Sales-wave
D) Alpha
E) Simulated

Question 79

Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

Question 80

Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use?

A) quality control processes
B) quality function deployment
C) rapid prototyping
D) marketing control
E) control system formation