Question 1

Victor thinks that a Lexus coupe is a quality vehicle. Yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of is relative or difficult to describe without a basis of comparison.
A) consistency of quality
B) level of quality
C) product differentiation
D) quality rollout
E) product positioning

Accepted Answer

The scenario describes Victor's perception of the "level of quality" of a Lexus compared to a Mercedes Benz, indicating that quality is relative and can vary based on comparison.

Question 2

Which of the following best defines product features?
A) The sensory appeal of a product
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

Accepted Answer

Product features refer to specific design characteristics that enable a product to perform certain tasks, distinguishing it from other products.

Question 3

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, warranties, and repairs. The Home Depot is differentiating through:
A) product ancillaries.
B) company quality.
C) customer services.
D) company features.
E) product features.

Accepted Answer

The Home Depot differentiates itself by offering additional customer services such as delivery, installation, warranties, and repairs, which enhance the overall customer experience beyond just the product itself.

Question 4

Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. Furthermore, Schwinn has added several new features to its bike that are attractive to individuals who work as "bike messengers" in large, urban cities. Since no other company makes a bike that has these specific attributes, Schwinn is creating a:
A) commercialization.
B) brand extension.
C) product line.
D) product position.
E) product differentiation.

Accepted Answer

Schwinn is creating a product differentiation by developing a bicycle with unique features and attributes that set it apart from competitors, targeting a specific market segment.

Question 5

The ability of a product to provide the same level of quality over time is called:
A) consistency.
B) longevity.
C) variability.
D) functionality.
E) accuracy.

Accepted Answer

Consistency refers to the ability of a product to maintain the same level of quality and performance over time.

Question 6

During the commercialization phase of the new-product development process, a new product is launched in stages, starting in one geographic area and gradually expanding into adjacent areas. This gradual introduction of the product is known as:
A) market development.
B) concept testing.
C) rollout.
D) market extension.
E) jamming.

Accepted Answer

Rollout refers to the gradual introduction of a new product into the market, starting in one area and expanding to others.

Question 7

Which of the following is a disadvantage of gradually introducing a new product to a market?
A) It increases the risk of introducing a new product.
B) It makes a firm more susceptible to losses.
C) It prohibits fine-tuning of the marketing mix often leading to customer dissatisfaction.
D) It allows competitors to monitor the results of the new product.
E) It prevents product differentiation based on geographical differences.

Accepted Answer

Gradually introducing a new product allows competitors to observe the product's performance and potentially adjust their strategies accordingly, which can be a disadvantage.

Question 8

The test marketing phase of the new-product development process:
A) is an extension of the product development phase.
B) should be conducted immediately after business analysis.
C) eliminates the risk of product failure.
D) is a sample launching of the entire marketing mix.
E) prevents competitors from copying the product.

Accepted Answer

Test marketing involves launching the entire marketing mix on a smaller scale to gauge consumer response and refine the strategy before a full-scale launch.

Question 9

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of a firm's product mix, is called a(n):
A) evaluation study.
B) formal evaluation.
C) product inspection.
D) systematic review.
E) reassessment examination.

Accepted Answer

A systematic review involves periodically evaluating each product to assess its impact on the overall effectiveness of a firm's product mix.

Question 10

Which of the following statements is true of the test marketing stage of the new-product development process?
A) Test marketing is simply an extension of the screening and development stages.
B) All the products that undergo test marketing must be launched.
C) Test marketing allows marketers to expose a product in a natural marketing environment to measure its sales performance.
D) In test marketing, a small sample of potential buyers is presented with a product idea to determine their attitudes regarding the product.
E) Test marketing enables companies to eliminate the risk of product failure.

Accepted Answer

Test marketing involves introducing a product in a limited market to evaluate its real-world performance and gather consumer feedback, helping to make informed decisions before a full-scale launch.

Question 11

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 and rush to introduce a similar 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 does not allow marketers to measure the extent of repeat purchases.

Accepted Answer

Test marketing can expose the product to competitors, who may then copy it and quickly launch their own version, potentially reducing the original product's competitive advantage.

Question 12

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is called:
A) quality.
B) longevity.
C) variability.
D) functionality.
E) design.

Accepted Answer

Quality refers to the overall characteristics of a product that enable it to meet customer expectations and satisfy their needs.

Question 13

Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale manufacturing and marketing 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

Accepted Answer

Stacey and Evan are finalizing plans for manufacturing and marketing, which indicates they are in the commercialization phase of the new-product development process.

Question 14

The management team at Tablerock Foods believes that it has come up with a delicious low-calorie dessert, but it is uncertain about the type of promotional and pricing campaigns to be used that can ensure better receptivity by consumers. In this instance, the management team should probably proceed to the stage of the new-product development process.
A) idea generation
B) commercialization
C) screening
D) test marketing
E) product development

Accepted Answer

Test marketing involves introducing the product to a limited market to gauge consumer response and determine the effectiveness of different promotional and pricing strategies before a full-scale launch.

Question 15

When Natalie and Chris analyze the results from a recently completed test market to determine if any changes in the marketing mix of the product are needed, they are in the phase of the new-product development process.
A) idea generation
B) commercialization
C) concept testing
D) business analysis
E) screening

Accepted Answer

Commercialization is the phase in the new-product development process where the product is launched, and the marketing mix is evaluated and adjusted based on market feedback.

Question 16

PepsiCo has developed 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 in the test area.
B) Retailers in the test area would be cooperative.
C) Testing efforts would not be easily jammed by competitors.
D) Tourism is a major industry in the test area.
E) The test area has stable year-round sale of soft drinks.

Accepted Answer

Tourism being a major industry in the test area would be least useful because it may not accurately represent the typical consumer base for the new soft drink, as tourists may have different preferences and buying behaviors compared to local residents.

Question 17

Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticed a fault with one of the table pockets. Since it was a weekend, he didn't expect that it could be repaired immediately. However, when he called a Brunswick store to leave a message, the call was answered by a repair representative who assured Seth that he would come over to Seth's house for the repair service within an hour. Brunswick Billiards is most likely differentiating itself through:
A) product styling.
B) product support services.
C) product positioning.
D) product features.
E) customer requests.

Accepted Answer

Brunswick Billiards is most likely differentiating itself through product support services because the company was able to send a repair representative to Seth's house within an hour of his call, even though it was a weekend. This shows that Brunswick Billiards is committed to providing excellent customer service and support.

Question 18

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to advance 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

Accepted Answer

Test marketing is the phase where a product is introduced to a limited market to evaluate its performance before a full-scale launch. Skipping this phase means moving directly to commercialization without this evaluation step.

Question 19

Frito Lay introduces a new variety of Doritos initially in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in the whole of the selected states, then in the adjacent states, and finally in the entire country. Frito-Lay is using a for its new variety of Doritos.
A) multi-stage introduction
B) rollout approach
C) test-market expansion
D) mass commercialization
E) trickle-down approach

Accepted Answer

The rollout approach involves gradually introducing a product to different markets, starting with a few locations and expanding to larger areas over time.

Question 20

TerraCycle is a company that takes waste and "upcycles" it into new products. Currently, TerraCycle markets a bicycle rack made of recycled plastic to schools, parks, and cities. This rack does not scratch or damage the bikes as concrete and steel racks do, and is eco-friendly since it is made of waste material. TerraCycle is differentiating its product based on:
A) intended use.
B) support services.
C) durability.
D) product features.
E) aesthetic modification.

Accepted Answer

TerraCycle is differentiating its product based on product features, as it emphasizes the eco-friendly aspect and the fact that it does not scratch or damage bikes, unlike traditional materials.

Quiz 11: Developing and Managing Goods and Services

Victor thinks that a Lexus coupe is a quality vehicle. Yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of is relative or difficult to describe without a basis of comparison.

Which of the following best defines product features?

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, warranties, and repairs. The Home Depot is differentiating through:

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

During the commercialization phase of the new-product development process, a new product is launched in stages, starting in one geographic area and gradually expanding into adjacent areas. This gradual introduction of the product is known as:

Which of the following is a disadvantage of gradually introducing a new product to a market?

The test marketing phase of the new-product development process:

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of a firm's product mix, is called a(n) :

Which of the following statements is true of the test marketing stage of the new-product development process?

One disadvantage of test marketing a new product is that:

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

Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale manufacturing and marketing of the new Genie-Vac. They are in the phase of the new-product development process.

When Natalie and Chris analyze the results from a recently completed test market to determine if any changes in the marketing mix of the product are needed, they are in the phase of the new-product development process.

PepsiCo has developed 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?

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to advance directly to regional commercialization of the new product. In this instance, they are contemplating skipping the phase of the new-product development process.