Deck 8: Developing and Managing Products and Services

Question 1

________ 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.
Specialty products
Line extensions
Unsought products
Shopping products
Convenience products

Answer 1

Unsought products

Question 2

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.
private brand
service variability
service
product
service encounter

Answer 2

product

Question 3

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.
Materials
Parts
Capital items
Specialty items
Supplies

Answer 3

Capital items

Question 4

________ 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.
Shopping products
Unsought products
Specialty products
Industrial products
Line extensions

Question 5

Most manufactured materials and parts are sold directly to ________.Price and service are the major marketing factors; branding and advertising tend to be less important.
consumers
industrial users
government buyers
co-branders
wholesalers

Question 6

What are the two ways that a company can obtain new products?
line extension and brand management
internal development and merger
new-product development and acquisition
service development and product extension
market mix modification and research and development

Question 7

________ 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.
Shopping products
Convenience products
Unsought products
Industrial products
Line extensions

Question 8

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.
promote
package
brand
augment
present

Question 9

________ are products and services bought by final consumers for personal consumption.These include convenience products, shopping products, specialty products, and unsought products.
Services
Consumer products
Line extensions
Industrial products
Straight extensions

Question 10

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?
industrial products
specialty products
supplies and services
materials and parts
convenience products

Question 11

________ are those products purchased for further processing or for use in conducting a business.
Unsought products
Specialty products
Shopping products
Industrial products
Accessories

Question 12

To differentiate themselves, many companies go beyond offering products and services; they are also developing and delivering customer ________.
feedback
experiences
brands
product lines
events

Question 13

The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers.
competitors, distributors, and employees; new styles
customers, brands, products; product images
customers, competitors, and markets; superior value
product, marketing mix, and marketing strategy; functional features
product life cycle, legal responsibilities, and social responsibilities; innovations

Question 14

What are two major sources of new-product ideas?
internal sources and external sources
core-member sources and non-core-member sources
government sources and non-government sources
direct competitor sources and indirect competitor sources
distributor sources and non-distributor sources

Question 15

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.
market offering
brand equity
brand extension
co-branding
core customer value

Question 16

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.
augmented product
brand equity
brand extension
industrial product
image

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?"
actual product
augmented product
core customer value
co-branding
exchange

Question 18

Product improvements, product modifications, and original products can all be classified as ________.
pioneer products
new products
product concepts
product ideas
test products

Question 19

________ 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.
Line extensions
Services
Brands
Consumer products
Supplements

Question 20

New product development starts with ________.
idea generation
idea screening
concept development
concept testing
test marketing

Question 21

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?
concept testing
marketing strategy development
business analysis
product development
test marketing

Question 22

________ calls for testing new-product concepts with groups of target consumers.
Concept development
Concept testing
Idea generation
Idea screening
Test marketing

Question 23

According to your text, which of the following is perhaps the most important external source of new-product ideas?
engineers
customers
competitors
trade magazines, shows, and seminars
distributors and suppliers

Question 24

An attractive idea must be developed into a ________.
product idea
product concept
product image
test market
product strategy

Question 25

The purpose of idea generation is to create a ________ of ideas.The purpose of succeeding stages is to ________ that number.
small number; reduce
small number; increase
large number; increase
large number; reduce
limited number; sustain

Question 26

According to the authors, the marketing strategy for a new product typically includes all of the following except ___________.
identification of the target market
positioning of the new product relative to competing products
promotions and advertising expenditures
information on dealing with defective products
sales goals

Question 27

A _________ is a detailed description, drawing, or prototype of that idea that can be shown to potential customers.
concept test
product concept
marketing strategy
product development
business analysis

Question 28

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 ________.
business feasibility plan
market strategy development
business analysis
product acceptance
proposal

Question 29

The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and ________.
market share
competition
secondary market
competition's anticipated reaction
life-cycle duration

Question 30

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.
idea generation
idea screening
concept testing
concept development
business analysis

Question 31

The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year.
advertising
promotion
marketing budget
positioning
target market

Question 32

The R-W-W framework asks three questions: Is it real? Can we win? Is it worth doing? Marketers should ask these questions during the ________ stage of the new-product development process.
idea generation
idea screening
concept testing
product development
commercialization

Question 33

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.
business feasibility
feasibility study
business analysis
product acceptance
concept testing

Question 34

A detailed version of a new idea stated in meaningful customer terms is called a ________.
product idea
product concept
product image
product proposal
product movement

Question 35

Your firm asks you to consult internal sources for new product ideas.All of the following are common external sources.
customers
suppliers
competitors
trade shows and magazines
the firm's managers

Question 36

In the concept testing stage of new-product development, a _________ form of the product concept is presented to groups of target consumers.
physical
conceptual
final
market-tested
commercial

Question 37

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?
the proposed customer value proposition
the product image
the marketing strategy
the business analysis
the planned market rollout

Question 38

After concept testing, a firm would engage in which stage in developing and marketing a new product?
idea screening
marketing strategy development
business analysis
product development
test marketing

Question 39

With what groups do firms conduct concept testing for new products?
suppliers
employees
target consumers
manufacturers
competitors

Question 40

Your company decides to use external sources for developing new product ideas.Which of the following would be consulted?
company executives and professionals
company records and data
intrapreneurial programs
suppliers
salespeople

Question 41

What are the stages, in correct order, of the product life cycle?
Introduction, Maturity, Growth, and Decline
Introduction, Growth, Decline, and Maturity
Introduction, Growth, Maturity, and Decline
Growth, Introduction, Maturity, and Decline
Decline, Introduction, Growth, and Maturity

Question 42

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.
test marketing
focus group surveys
commercialization
post-testing
business analysis

Question 43

In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.
business analysis
idea generation
concept development and testing
product development
marketing mix

Question 44

________ refers to a detailed version of the new-product idea stated in meaningful consumer terms.
Product generation
The product concept
Product testing
Product commercialization
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.
Internal teams
External teams
Crowdsourcing
Recruitment
Market development

Question 46

According to the authors, when does a company typically invest in test marketing?
before the full product introduction
at idea generation time
before the product concept
after meeting with a stockholder
after a logistics discussion with suppliers

Question 47

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.
how to develop a market strategy
which market to compete in
whether to launch the new product
how to compete in the market
how long to compete in the market

Question 48

__________ refers to the identification of good ideas (and the dropping of poor ones) as soon as possible.
Crowdsourcing
Idea generation
Concept testing
Idea screening
Concept development

Question 49

The stage of new-product development where the product and marketing program are tested in realistic market settings is called_______.
idea generation
concept testing
product concept
commercialization
test marketing

Question 50

Increasing profits will most likely occur at which stage of the PLC?
product development
introduction
growth
maturity
decline

Question 51

________ is the product life cycle period when sales fall off and profits drop.
Introduction
Growth
Maturity
Decline
Development

Question 52

What are the two main focuses of the product life cycle theory?
distributors and suppliers
competitors and costs
sales and profits
profits and target markets
target markets and competitors

Question 53

According to theory discussed in this chapter, the sales of a typical product follow a(n) __________ curve.
U-shaped
S-shaped
L-shaped
I-shaped
O-shaped

Question 54

If the product or service passes the business analysis test, it moves into what stage?
concept development
product development
market testing
strategy development
product proposal

Question 55

Introducing a new product into the market is called ________.
test marketing
new product development
experimenting
commercialization
marketing development

Question 56

According to the authors, _______ should be followed in order to help commercialize a product.
the research team
the product life cycle
the market segmentation
the boss
the idea generation

Question 57

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?
idea evaluation theory
diffusion of innovation theory
idea screening theory
life cycle theory
data processing theory

Question 58

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?
considering the history of market opinions
conducting surveys of competitors
considering the sales history of similar products and conducting surveys of market opinions
applying the PLC concept
none of the above

Question 59

Under what circumstances might it be wise for a company to invest in a test market?
when a new product requires a major investment
when the product is not working well
when management is sure of the marketing program
when the product risk is very low
when the cost of new-product development is very low

Question 60

What is the final step in the new-product development process?
idea generation
product concept
concept testing
prototype
commercialization

Question 61

Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?
introduction
growth
maturity
decline
phase-in

Question 62

In the ________ stage, the firm faces a trade-off between high market share and high profit.
growth
decline
maturity
introduction
commercialization

Question 63

Which of the following would lead to greater competition in the maturity stage of the PLC?
overcapacity of products in the market
market pioneers
poor management
inadequate promotion
diminishing budgets

Question 64

The __________ is a model that proposes that a "chasm" exists between early adopters of a product and the early majority.
innovation life cycle
technology adoption life cycle
product life cycle
diffusion cycle
marketing life cycle

Question 65

The PLC concept can be applied by marketers as a useful framework for describing how ________.
to forecast product performance
to develop marketing strategies
products and markets work
concept testing is conducted
product ideas are developed

Question 66

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.
harvest the product
maintain the product without change
drop the product
search for replacements
delay planning

Question 67

________ 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.
Packaging
Product quality
Total quality management
Specialty marketing
Positioning

Question 68

Which stage of the typical consumer product life cycle is out of order below?
product development
introduction
maturity
growth
decline

Question 69

Carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms.Which one of these is least likely to be one of those costs?
takes up much of management's time
frequent price and inventory adjustment
requires advertising and sales force attention
few customer concerns about company image
all of the above

Question 70

A stripped-down model without any extras is the starting point; a company can create a higher-level model by adding ________.
co-brandings
features
product quality
service variability
conformance

Question 71

When a product enters the maturity stage, the company should consider ________.
harvesting the product
modifying the product, market, or marketing mix
divesting the product
maintaining the product
dropping the product

Question 72

Some products that have entered the decline stage have been cycled back to the growth stage through ________.
repositioning
concept testing
business analysis
innovation management
customer-centered product development

Question 73

Which of the following is an accurate description of a style?
Styles appear in home, clothing, but seldom in art.
Once a style is invented, it will only last for a few months.
A style has a cycle showing several periods of renewed interest.
Styles tend to attract only a limited following.
Styles are complicated modes of expression.

Question 74

Most products in the marketplace are in the ________ stage of the product life cycle.
development
introduction
growth
maturity
decline

Question 75

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?
product development
introduction
growth
maturity
adoption

Question 76

Which of the following best represents the options a company has when a product is declining?
maintain or harvest the product
harvest or drop the product
maintain, harvest, or drop the product
maintain or pioneer the product
pioneer, harvest, or maintain the product

Question 77

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.
private brands
product attributes
consumer products
product mixes
marketing tools

Question 78

In which stage of the PLC would promotional expenditures most likely increase as a company attempts to react to increasing competition?
product development
introduction
growth
maturity
decline

Question 79

Which of the following internal professional membership organizations monitor product quality?
Society of Public Company
Society of Quality Management
Society of Consumer Assurance
Society of Quality Assurance
Society of Firm Management

Question 80

According to the authors, quality can be defined as __________.
positive post-purchase dissonance
brand equity
freedom from defects
quality assurance
customer-centered thinking