Deck 12: Product and Service Strategies

Question 1

In the business market, wheat and lumber are examples of ________.

A) components
B) equipment
C) processed materials
D) MRO products
E) raw materials

Answer 1

E

Question 2

The ________ of a service means that it cannot be perceived through the five senses before it is produced and consumed.

A) utility
B) warranty
C) tangibility
D) intangibility
E) variability

Answer 2

D

Question 3

In business markets, ________ are finished products that organizations use to complete their own products.

A) components
B) equipment products
C) processed materials
D) MRO products
E) raw materials

Answer 3

A

Question 4

In marketing terms, benefits define a product's ________, or what the product does for a customer.

A) utility
B) warranty
C) tangibility
D) intangibility
E) variability

Question 5

________ are a form of product that consist of a collection of activities that, when performed, delivers benefits to a customer.

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

Question 6

________ 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 7

The third level of a product is the ________ around the core benefit and actual product that offers additional consumer services and benefits that enhance ownership of the actual product.

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

Question 8

A(n) ________ is a good or service that consumers purchase frequently with little or no advance planning.

A) specialty product
B) unsought product
C) shopping product
D) convenience product
E) generic product

Question 9

Level of quality, features, functions, and design are all examples of ________.

A) core benefits
B) product attributes
C) levels of a product
D) product mixes
E) product utility

Question 10

Promotion activities for which of the following types of products are most likely to be highly targeted to very specific audiences?

A) specialty products
B) context products
C) consumer products
D) shopping products
E) staples

Question 11

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying.

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

Question 12

________ are products purchased and used by end 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 13

________ are infrequently purchased consumer products with unique characteristics for which buyers are willing to make a special purchase effort.

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

Question 14

The most basic level upon which a product can be viewed is the ________, which addresses the question, "What fundamental benefit is the customer buying?"

A) actual product
B) augmented product
C) core benefit
D) product design
E) utility product

Question 15

A(n) ________ is defined as a bundle of attributes that delivers benefits to consumers.

A) core benefit
B) service variability
C) portfolio
D) product
E) augmented product

Question 16

________ are less frequently purchased consumer products that customers compare carefully on quality, features, and benefits.

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

Question 17

MRO products are goods that businesses use for ________.

A) management, research, and order-processing
B) marketing, relationship-building, and operations
C) maintenance, research, and organization
D) maintenance, repair, and operations
E) marketing, research, and organization

Question 18

The ________ of a service means that it cannot be stored for later use and must be consumed upon delivery.

A) inseparability
B) perishability
C) tangibility
D) intangibility
E) variability

Question 19

Products and services fall into two broad classifications based on the types of customers who purchase and use them. Which is one of these broad classes?

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

Question 20

Prices of shopping products are typically higher than the prices of ________ products but lower than the prices of ________ products.

A) unsought; convenience
B) convenience; specialty
C) specialty; unsought
D) unsought; specialty
E) specialty; convenience

Question 21

Product ________ contributes to a product's usability as well as to its looks.

A) style
B) design
C) augmentation
D) brand
E) utility

Question 22

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

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

Question 23

New product development starts with ________.

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

Question 24

A focus group would most likely be used in the ________ stage of new product development.

A) idea screening
B) concept development
C) test marketing
D) commercialization
E) business analysis

Question 25

________ is a method through which customer needs are translated into product and quality requirements.

A) Discontinuous innovation
B) Six Sigma
C) QFD
D) ISO 9000
E) !SO 9001

Question 26

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

A) commercialization
B) focus group surveys
C) concept development
D) post-testing
E) marketing strategy

Question 27

The purpose of the idea generation stage of new product development is to create a ________ number 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 28

Product mix ________ refers to the number of different product lines the company offers.

A) length
B) height
C) width
D) perimeter
E) depth

Question 29

A ________ is the collection of all products and services offered by a company.

A) product portfolio
B) brand line
C) consumer mix
D) product line
E) line extension

Question 30

Once the product or service passes the business analysis test, it moves into the ________ stage of new product development.

A) concept development
B) concept testing
C) idea screening
D) marketing strategy
E) commercialization

Question 31

________ is a process of using statistical analysis to continually reduce manufacturing defects.

A) Discontinuous innovation
B) Six Sigma
C) QFD
D) ISO 9000
E) ISO 9001

Question 32

Although test marketing costs can be high, they are often small when compared with ________.

A) business analysis costs
B) the costs of a major mistake
C) prototype development costs
D) the costs of idea generation
E) research and development costs

Question 33

While a sensational ________ may grab consumers' attention through a pleasing visual appearance, it does not necessarily improve a product's usability.

A) design
B) style
C) utility
D) benefit
E) product level

Question 34

________ is most frequently defined as the customer's overall reaction to the attributes of a product or service.

A) Variability
B) Utility
C) Diffusion
D) Style
E) Quality

Question 35

A ________ is a group of products that are closely related.

A) product line
B) line extension
C) product portfolio
D) line expansion
E) product mix

Question 36

Which type of innovation involves introducing an existing product or service to a new market?

A) concept change
B) discontinuous innovation
C) context change
D) cosmetic change
E) style change

Question 37

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

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

Question 38

Introducing a new product into the market is called ________.

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

Question 39

Product mix ________ refers to the number of versions offered of each product within a line.

A) length
B) depth
C) height
D) width
E) perimeter

Question 40

Which of the following is the innovation that involves the greatest degree of change?

A) concept change
B) cannibalization
C) context change
D) cosmetic change
E) style change

Question 41

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

A) license or harvest the product
B) harvest or divest the product
C) divest, harvest, or license the product
D) license or pioneer the product
E) pioneer, harvest, or divest the product

Question 42

Which of the following statements best explains why idea screening may be the most important step of new product development?

A) It increases the number of ideas generated.
B) Some potentially profitable ideas may be ill perceived by the idea screeners.
C) Some ideas that will become market disasters may be originally viewed favorably by the idea screeners.
D) It gives research and development team members an opportunity to gather consumer feedback.
E) It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.

Question 43

Which of the following statements about the innovation adoption categories is true?

A) More than 50 percent of the population is classified as late majority adopters.
B) Early adopters avoid risk.
C) Early majority adopters do not want to be the first or the last to try a new product.
D) Innovators are a much larger group than laggards.
E) Late majority adopters are typically very concerned about social acceptance.

Question 44

Which of the following is(are) examples of product mix depth?

A) hamburger and cheeseburger
B) hamburger and apple pie
C) Coke and Diet Coke
D) A and C
E) all of the above

Question 45

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying of its ketchup, the company was introducing ________.

A) cosmetic change
B) context change
C) concept change
D) discontinuous innovation
E) a new core benefit

Question 46

Which of the following is an example of a good?

A) a massage
B) a textbook
C) a medical examination by a doctor
D) an idea for a new television show
E) dry cleaning

Question 47

Which stage in the PLC normally lasts longest?

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

Question 48

________ refers to the speed with which consumers and businesses adopt a particular product.

A) A penetration strategy
B) Positioning
C) A skimming strategy
D) Diversification
E) Diffusion of innovation

Question 49

Which of the following costs is most likely associated with the commercialization stage of new product development?

A) building or renting a manufacturing facility
B) paying groups of target customers for product feedback
C) determining the product's planned price, distribution, and marketing budget
D) developing a prototype of the product
E) identifying target markets

Question 50

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood is an example of a ________.

A) convenience product
B) shopping product
C) specialty product
D) service
E) core product

Question 51

When the Twin Six Cafe provides gourmet menu options to its customers as well as impeccable service that includes allowing customers to hand-select their own cuts of meat, ________.

A) only an actual product is evident
B) only an augmented product is evident.
C) only a core benefit is evident.
D) both a core benefit and an actual product are evident.
E) a core benefit, an actual product, and an augmented product are evident.

Question 52

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

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

Question 53

________ are typically bound by tradition and are the last to adopt an innovation.

A) Innovators
B) Early majority adopters
C) Late majority adopters
D) Laggards
E) Impulse buyers

Question 54

A product that has entered the decline stage could most likely be cycled back to the growth or maturity stage through ________.

A) promotion or repositioning
B) concept testing
C) business analysis
D) a penetration strategy
E) a skimming strategy

Question 55

You have an upset stomach. Your spouse rushes to the nearest store for a bottle of Pepto-Bismol. This product is a(n) ________ product.

A) convenience
B) unsought
C) specialty
D) shopping
E) augmented

Question 56

In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

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

Question 57

Unlike innovators, early adopters in general ________.

A) compose the smallest of the innovation adoption categories
B) have greater concern for social acceptance
C) have stronger physiological needs than others in the population
D) are light media users
E) are less mainstream

Question 58

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

Question 59

All of the following are stages in the PLC EXCEPT ________.

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

Question 60

Mabel Lu is planning to buy a new washing machine. She notices that washing machines are available in a wide range of prices, and she wants to make sure she gets the most for her money. This product is a(n) ________ product.

A) convenience
B) unsought
C) specialty
D) shopping
E) augmented

Question 61

When all products in a category have similar core benefits, the appeal of one can be enhanced through differentiating it at the actual product level.

Question 62

When Kraft focused on cost-cutting with its older and established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.

A) license
B) maintain
C) divest
D) harvest
E) review

Question 63

A product line is also known as a product mix.

Question 64

Services produced by the private sector account for more than half of the U.S. gross domestic product.

Question 65

Style is a larger concept than design. Design describes the appearance of a product.

Question 66

Innovators tend to be better off financially than other adopter groups.

Question 67

One of the distinguishing characteristics of a service is utility, which means that the service cannot be separated from its means or manner of production.

Question 68

Having recently celebrated her 50th birthday, Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC.

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

Question 69

The stage at which a new product and marketing program are introduced into realistic market settings to evaluate customer acceptance of the product is called marketing strategy.

Question 70

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacturing of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely drop after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a test market in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
When Ringler set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?

A) concept testing
B) marketing strategy
C) idea screening
D) business analysis
E) commercializing

Question 71

A company that wants to establish a dominant market share during the introduction stage of a product's life cycle would be most likely to use a skimming strategy.

Question 72

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacturing of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely drop after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a test market in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
The financial savings in reduced electricity costs that customers of Ringler's solar-powered vacuum can expect to experience are part of the ________.

A) core benefit
B) augmented product
C) product image
D) context change
E) idea screening

Question 73

Specialty products are purchased infrequently.

Question 74

PLC stands for product level concept.

Question 75

Style makes products more attractive and easier to use.

Question 76

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacturing of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely drop after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a test market in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
Evelyn's vacuum is at the ________ stage of the product life cycle.

A) innovation
B) introduction
C) growth
D) adoption
E) maturity

Question 77

Cannibalization is a possible result of adding products to a portfolio.

Question 78

Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

Question 79

The PLC represents the common pattern of evolution of sales and profits that all products share.

Question 80

When a company introduces a new product to an existing product line, it is using the strategy of a line extension.