Question 1

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n)
A) product line extension.
B) quality modification.
C) aesthetic modification.
D) market extension.
E) functional modification.

Accepted Answer

This improvement of adding an electrical component that automatically shuts off the curling irons after one hour is a functional modification. It is improving the safety and functionality of the product by addressing the issue of potential overheating and fire risk for customers who may forget to turn off their device.

Question 2

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.
A) aesthetic
B) functional
C) operational
D) quality
E) feature

Accepted Answer

Aesthetic modifications refer to changes that affect the sensory appeal of a product, including its taste, texture, sound, smell, or visual characteristics. Functional modifications refer to changes to the product's performance or function, while operational modifications refer to changes to the product's production or distribution processes. Quality modifications refer to changes to the product's level of excellence or superiority, and feature modifications refer to changes to the product's added benefits or attributes.

Question 3

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
A) commercialization.
B) screening.
C) concept testing.
D) product development.
E) test marketing.

Accepted Answer

The answer of Marketers begin to make decisions about labeling,...

Question 4

When marketers at Nabisco met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of new-product development?
A) Idea generation
B) Business analysis
C) Test marketing
D) Commercialization
E) Product development

Accepted Answer

Idea generation involves gathering ideas from a variety of sources and conducting market research to identify consumer needs and wants, which is what the marketers at Nabisco were doing when they met with young adults to identify the types of snacks they want. Business analysis involves analyzing the potential profitability and sustainability of the idea, test marketing involves introducing the product to a select group of consumers to gather feedback before a full launch, product development involves creating and refining the actual product, and commercialization involves the full launch and distribution of the product.

Question 5

All of the following are major steps in developing new products except
A) test marketing.
B) evaluation of competitors' efforts.
C) screening.
D) business analysis.
E) idea generation.

Accepted Answer

All other options (test marketing, screening, business analysis, and idea generation) are major steps in developing new products, whereas evaluation of competitors' efforts is not considered a part of the product development process. However, evaluating competitors is an important aspect of competitive analysis and can aid in creating a differentiation strategy for the new product.

Question 6

Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Morgan is able to evaluate the ____ modifications to the sofa, but not the ____ modifications.
A) aesthetic; quality
B) quality; aesthetic
C) aesthetic; functional
D) functional; quality
E) functional; aesthetic

Accepted Answer

Morgan can evaluate the aesthetic modifications (style and color) through online images or descriptions, but she cannot assess the functional modifications (comfort level) without physically interacting with the sofa.

Question 7

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)
A) aesthetic modification.
B) line extension.
C) material adjustment.
D) functional modification.
E) quality modification.

Accepted Answer

Bauman Flooring's decision to use very inexpensive fibers to produce low-grade carpeting at a lower cost is an example of a quality modification. This involves changes in the product's quality level, in this case, lowering it to reduce costs and prices.

Question 8

A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a
A) genuinely new product.
B) radically new product.
C) new product failure.
D) controlled new product.
E) market share advance.

Accepted Answer

A radically new product often involves a complex development process and extensive business analysis to assess its potential success, as it represents a significant departure from existing products or services.

Question 9

Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the ____ phase of new-product development.
A) business analysis
B) product development
C) test marketing
D) screening
E) idea generation

Accepted Answer

Outback Steakhouse is in the idea generation phase of new-product development because they are gathering ideas from customers through surveys. The other phases of new-product development include screening, business analysis, product development, and test marketing, which come after the idea generation phase.

Question 10

In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and
A) modification should make the product more consistent with customers' desires.
B) competing companies should not be aware of planned product modifications.
C) modification should change customers' desires to provide greater satisfaction.
D) management must perceive the modification as a reasonable and necessary action.
E) production costs and materials needed should be limited.

Accepted Answer

The other options do not directly relate to the conditions necessary for improving a firm's product mix through product modification. A modification should make the product more consistent with customers' desires in order to increase customer satisfaction and sales.

Question 11

Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.
A) performing marketing research.
B) keeping tabs on the actions of competitors.
C) not introducing new products.
D) generating new product ideas.
E) addressing customers' concerns about products.

Accepted Answer

Not introducing new products can be risky for the company because it may lead to stagnation and lack of innovation, which can ultimately lead to decreased market share and profitability.

Question 12

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?
A) Aesthetic
B) Operational
C) Benefit
D) Functional
E) Quality

Accepted Answer

The answer of Which of the following types of product...

Question 13

Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification; changes to make the TV's remote easier to use would be classified as a(an) ___.
A) functional; aesthetic modification
B) aesthetic; functional modification
C) aesthetic; quality modification
D) aesthetic; line extension
E) quality modification; functional modification

Accepted Answer

Sony's design changes to its large-screen TV sets with smoked-glass control panel covers are primarily aesthetic modifications aimed at enhancing the appearance of the product. On the other hand, changes made to the TV remote to make it easier to use are functional modifications because they improve the usability and performance of the product. Therefore, the best choice is B, which correctly identifies the changes as aesthetic and functional modifications, respectively.

Question 14

Functional modifications usually require that the product be
A) less specific.
B) limited to its functions.
C) more appealing.
D) more technical.
E) redesigned.

Accepted Answer

Functional modifications involve changing the design or components of a product in order to improve its performance or function. This often requires a redesign of the product in order to accommodate the new components or configuration.

Question 15

The major drawback to using aesthetic modifications is
A) the cost of the modifications.
B) that the value of the modification is determined subjectively.
C) the need for redesign of the product.
D) a possible decrease in market share.
E) that there is no differentiation for the product in the market.

Accepted Answer

Aesthetic modifications are subjective and depend on individual preferences, which can lead to different interpretations of the value of the modification. This can be a drawback as it can be difficult to predict consumer preferences and it may not have a universal appeal to all customers. The other options presented are not necessarily major drawbacks of using aesthetic modifications, as cost can be managed, redesign may not always be necessary, and product differentiation can be achieved through other means. A decrease in market share may occur with any type of modification, not just aesthetic ones.

Question 16

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.
A) aesthetic
B) functional
C) quality
D) image
E) feature

Accepted Answer

Changing the color of the primary school chairs is primarily an aesthetic modification, as it is intended to improve the appearance or visual appeal of the product without changing its function or quality.

Question 17

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.
A) functional
B) formal
C) aesthetic
D) quality
E) package

Accepted Answer

These types of modifications directly affect the performance and utility of the product. They can include changes to the design, materials, or technology used in the product and can greatly impact how efficiently and effectively the product performs its intended function.

Question 18

A genuinely new product - like the iPhone once was - offers
A) lower prices than existing products.
B) at least two new product features.
C) innovative benefits to consumers.
D) better value than existing products.
E) at least two new product features at a lower price.

Accepted Answer

A genuinely new product, like the iPhone, is expected to offer innovative benefits to consumers that are not currently available in existing products, rather than just being a cheaper or better value version of what already exists. Therefore, option C is the best choice for this question.

Question 19

Which of the following is the best example of a functional modification?
A) Campbell's puts more of a higher-grade chicken in its classic chicken noodle soup.
B) A smoke alarm is modified to be more sensitive to smoke at farther distances.
C) Motorola uses a battery that allows its cell phones to charge back up more quickly.
D) The manufacturer of the primer and sealer, Kilz, introduces an odorless variety.
E) Friskies changes the ingredients in its cat food to a taste that is preferred by most cats.

Accepted Answer

A functional modification involves changing the performance or function of a product. Option B fits this definition as the modification of the smoke alarm makes it perform better by being more sensitive to smoke at farther distances. Options A, C, D, and E are all examples of quality modifications, which involve changing non-performance aspects of a product, such as ingredients, design, or style.

Question 20

Quality modifications are changes that relate to a product's
A) dependability and durability.
B) effectiveness and versatility.
C) price and availability.
D) reliability and value.
E) value and durability.

Accepted Answer

Quality modifications focus on improving a product's dependability and durability, ensuring that it meets or exceeds customer expectations for reliability and longevity. While effectiveness and versatility may be important factors for some products, they are not typically the primary focus of quality modifications. Price and availability are also important considerations, but they are separate from the actual quality of the product. Therefore, the best choice is A.

Quiz 11: Developing and Managing Goods and Services

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n)

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

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during

When marketers at Nabisco met with groups of young adults to identify the types of snacks that young people want, they were engaging in which phase of new-product development?

All of the following are major steps in developing new products except

A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a

Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the ____ phase of new-product development.

In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and

Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) __ modification; changes to make the TV's remote easier to use would be classified as a(an) _.

Functional modifications usually require that the product be

The major drawback to using aesthetic modifications is

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.

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

A genuinely new product - like the iPhone once was - offers

Which of the following is the best example of a functional modification?

Quality modifications are changes that relate to a product's