Deck 7: Create the Product

Question 1

A(n)________ is typically a nondurable good or service that consumers purchase frequently with a minimum of comparison and effort.

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

Answer 1

D

Question 2

________ are a form of product that are essentially intangible.

A)Innovations
B)Services
C)Brands
D)Consumer products
E)Supplements

Answer 2

B

Question 3

A product has three distinct layers.The most basic level is the ________, which consists of all the benefits the product will provide for consumers or business customers.

A)actual product
B)augmented product
C)core product
D)innovation
E)brand

Answer 3

C

Question 4

Which of the following statements about durable goods is true?

A)Durable goods are more likely than perishable goods to involve low-involvement decisions.
B)The information search is quicker for durable goods than it is for nondurable goods.
C)Consumers purchasing durable goods are likely to use habitual decision making.
D)Product evaluation is more likely to take place for nondurable goods than for durable goods.
E)Durable goods provide a benefit over a long period of time.

Question 5

A(n)________ is a good or service for which consumers will spend time and effort gathering information on price, product attributes, and product quality.

A)impulse product
B)homogeneous product
C)shopping product
D)convenience product
E)emergency product

Question 6

We are more likely to purchase ________ under conditions of high involvement and ________ under conditions of low involvement.

A)durable goods; nondurable goods
B)nondurable goods; durable goods
C)staples; impulse products
D)impulse products; staples
E)emergency products; unsought products

Question 7

Generally, products are either ________ or ________.

A)consumer products; business-to-business products
B)consumer products; nondurable products
C)industrial products; business-to-business products
D)industrial products; services
E)shopping products; convenience products

Question 8

A product has three distinct layers.The second layer is the ________, which is the physical good or delivered service.

A)actual product
B)augmented product
C)core product
D)innovation
E)brand

Question 9

________ include convenience products, shopping products, specialty products, and unsought products.

A)Specialty services
B)Consumer products
C)Line extensions
D)Industrial products
E)Component products

Question 10

Which of the following is the best example of a convenience product?

A)a silk scarf
B)a subscription to a magazine
C)a gallon of milk
D)a lawn mower
E)a CD player

Question 11

The ________ is the actual product such as a refrigerator plus delivery, installation, financing, and warranty.

A)actual product
B)value network
C)augmented product
D)potential product
E)core product

Question 12

When we need a(n)________, price and product quality may be irrelevant to our purchase decision.

A)emergency product
B)staple
C)impulse product
D)shopping product
E)unsought product

Question 13

Marketers classify convenience products as ________.

A)staples, impulse products, and emergency products
B)specialty products, shopping products, and unsought products
C)core products, actual products, and augmented products
D)generic products and branded products
E)attribute-based products and price-based products

Question 14

Which of the following is the best example of a durable good?

A)a bag of cat food
B)a refrigerator
C)a bottle of nail polish
D)a package of lightbulbs
E)detergent

Question 15

Which of the following is the best example of a nondurable good?

A)a dishwasher
B)a book shelf
C)a freezer
D)a newspaper
E)a file cabinet

Question 16

Which type of product is a basic or necessary item that is available almost everywhere?

A)emergency product
B)staple
C)impulse product
D)shopping product
E)unsought product

Question 17

Which of the following adjectives best describes a product that would be classified as a good?

A)nonperishable
B)convenient
C)disposable
D)tangible
E)heterogeneous

Question 18

We consume ________ in the short term rather than the long term.

A)unsought products
B)specialty products
C)raw materials
D)durable goods
E)nondurable goods

Question 19

Which of the following is an example of a good?

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

Question 20

A(n)________ is defined as a good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process.

A)private brand
B)service variability
C)core product
D)product
E)innovation

Question 21

Heavy equipment, which includes items such as buildings and robotics, is also referred to as ________.

A)component parts
B)capital equipment
C)accessory equipment
D)operating supplies
E)specialized services

Question 22

MRO products are goods that businesses use for ________.

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

Question 23

Capacity management is one of the ways to meet potential problems related to the ________ characteristic of services.

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

Question 24

Service ________ refers to the inevitable differences in a service provider's performance from one service encounter to the next.

A)inseparability
B)variability
C)personalization
D)responsiveness
E)intangibility

Question 25

For a veterinarian's office, the paper used to print payment receipts is an example of a(n)________.

A)repair product
B)operating supply
C)maintenance product
D)component part
E)raw material

Question 26

The opportunities for ________ provided by the Internet have helped many companies in the financial services area address the problem of the inseparability of services.

A)capacity management
B)disintermediation
C)servicescape management
D)transactional marketing
E)critical incident management

Question 27

For the business market, a multipurpose absorbent used to clean up any type of spills would be an example of a(n)________.

A)repair product
B)operating supply
C)maintenance product
D)restoration product
E)consumer product

Question 28

________ have unique characteristics that are important to buyers at almost any price.

A)Specialty products
B)Staples
C)Impulse products
D)MRO products
E)Unsought products

Question 29

________ are manufactured goods or subassemblies of finished items that organizations need to complete their own products.

A)Component parts
B)Accessory equipment materials
C)Processed materials
D)MRO products
E)Raw materials

Question 30

________ are consumer products for which a consumer either has little awareness or interest until a need arises.These products require a lot of advertising, personal selling, and other marketing efforts.

A)Specialty products
B)MRO products
C)Unsought products
D)Shopping products
E)Staples

Question 31

In terms of business-to-business products, computers and printers are examples of ________.

A)component parts
B)capital equipment
C)accessory equipment
D)operating supplies
E)specialized services

Question 32

Customers usually know a good deal about ________ and are loyal to specific brands.

A)specialty products
B)homogeneous products
C)impulse products
D)MRO products
E)emergency products

Question 33

In the business market, products of the fishing and agricultural industries purchased to use in a finished product are examples of ________.

A)component parts
B)accessory equipment
C)processed materials
D)MRO products
E)raw materials

Question 34

In business-to-business e-commerce, consumers can use ________ to shop more efficiently.These programs find sites selling a particular product and may also provide information on competitors' prices.

A)MRO agents
B)augmenting agents
C)cookies
D)screening agents
E)intelligent agents

Question 35

________ are acts, efforts, or performances exchanged from producer to user without ownership rights.

A)Tangibles
B)Services
C)Ideas
D)Brand extensions
E)Licenses

Question 36

Four characteristics are used to differentiate services from goods.Which of the following is NOT one of those characteristics?

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

Question 37

A physician might deal with potential problems associated with the ________ characteristic of services by providing physical cues such as her medical diplomas hanging on the wall of the examining room.

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

Question 38

A customer got a great haircut at a salon and went back six weeks later to the same person to get a second haircut.This time, the customer received one of the worst haircuts of his life.The difference between the two haircuts are due to the ________ characteristic of services.

A)perishability
B)responsiveness
C)personalization
D)variability
E)inseparability

Question 39

________ is the category of business-to-business products that refers to the products an organization uses in its daily operations.

A)Raw materials
B)Component parts
C)Equipment
D)Processed materials
E)MRO products

Question 40

Service ________ means that customers cannot see, touch, or smell good service.

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

Question 41

A ________ is a modification to an existing product.

A)technical innovation
B)continuous innovation
C)discontinuous innovation
D)commercial innovation
E)dynamically discontinuous innovation

Question 42

Most cities have a variety of fast-food restaurant franchises .The proximity of these restaurants to densely populated neighborhoods and high-traffic shopping areas illustrates the importance of the ________ factor for equipment-based services.

A)operational
B)search
C)locational
D)augmentation
E)supply

Question 43

Tangibles, reliability, responsiveness, assurance, and empathy are the five dimensions of service quality used in which of the following?

A)total quality management (TQM)
B)SERVQUAL
C)gap analysis
D)the critical incident technique
E)the market fulfillment approach

Question 44

A hospital that spends hundreds of thousands of dollars on lifesaving monitoring equipment demands that the seller provide in-service training on the equipment for its personnel.The hospital also expects the seller of the equipment to quickly respond any time the equipment needs maintenance.The monitoring equipment is an example of a(n) ________.

A)goods-dominated product
B)service-dominated good
C)equipment-based service
D)facility-based service
E)people-based service

Question 45

The Federal Trade Commission says that a product must be entirely new or changed significantly to be called new and that a product may be called new for only ________ months.

A)two
B)three
C)six
D)ten
E)twelve

Question 46

Which of the following is true due primarily to the inseparability of services?

A)Customers have to rely on reassuring physical cues that indicate quality service.
B)Service businesses cannot promise the same experience with every service encounter.
C)A service is produced and consumed at the same time.
D)It is impossible for service businesses to exactly match supply with demand.
E)It is difficult for service businesses to live up to guarantees.

Question 47

A bank closing one of its branch locations at midday to balance transactions because it is efficient for the bank, even though it is not convenient for customers who want to do their banking during the lunch hour, is an example of a gap between ________.

A)established quality standards and service delivery
B)expected service and perceived service
C)consumers' expectations and management's perceptions
D)management's perception and quality standards set by the firm
E)service quality standards and consumers' perceptions

Question 48

A knockoff is a ________.

A)company that uses a me-too strategy for its promotion
B)company that uses comparative advertising
C)new product that is so radically different from anything on the market that it has difficulty moving out of the introduction stage of its product life cycle
D)product that is unbranded
E)new product that copies, with slight modifications, the design of an original product

Question 49

The ________ is the interaction between the customer and the service provider.

A)supply-demand exchange
B)transaction point
C)service encounter
D)service program
E)service promotion

Question 50

Marketers classify innovations based on their ________.

A)degree of newness
B)costs to manufacture
C)prices
D)degree of tangibility
E)contribution margins

Question 51

A haircut, a manicure, and a pedicure are all examples of ________.

A)intangible services
B)tangible services
C)tangible goods
D)tangible possessions
E)intangible possessions

Question 52

Two successful service firms, American Express and Ritz-Carlton, have developed written service quality goals.This step was taken in an attempt to deal with any gap between ________.

A)consumer expectations and management perceptions
B)management perceptions and quality standards set by the firm
C)service quality standards and consumer expectations
D)service quality standards and consumer perceptions
E)expected services and needed services

Question 53

Which of the following is a service industry in Canada that is likely to see growth due primarily to demographic changes?

A)living assistance for seniors
B)babysitting services for baby boomers
C)health services for medical tourists
D)technology consulting for businesses
E)database services for businesses

Question 54

A service offering that differentiates a firm from its competition and provides enhanced value is referred to as a(n)________.

A)core service
B)augmented service
C)environmental factor
D)operational factor
E)disintermediator

Question 55

A consumer doesn't have to learn anything new to use a(n)________.

A)dynamically continuous innovation
B)dynamically continuous new product
C)discontinuous new product
D)continuous innovation
E)discontinuous innovation

Question 56

According to the goods/services continuum, which of the following is the best example of a pure service provider?

A)a furniture retailer
B)a magazine publisher
C)a building contractor
D)a paper manufacturer
E)a teacher

Question 57

Experience qualities are product attributes that customers can identify ________.

A)prior to consumption
B)only during consumption
C)only after consumption
D)both during and after consumption
E)before, during, or after consumption

Question 58

A ________ is a pronounced modification to an existing product that requires a modest amount of learning or change in behavior to use it.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 59

Carpet and furniture repair are classified as ________.

A)tangible services performed on the customer
B)tangible services performed on the customer's possessions
C)tangible goods delivered to the customer
D)intangible services performed on the customer
E)intangible services performed on the customer's possessions

Question 60

Facility exteriors and interiors are part of ________.

A)the servicescape
B)disintermediation
C)the core service
D)the intangibles in a service exchange
E)place marketing

Question 61

Marketers are primarily striving to generate customer ________ when they use a teaser advertisement created to give prospective customers just enough information about a new product to make them curious.

A)confirmation
B)interest
C)evaluation
D)adoption
E)impulse purchasing

Question 62

In the ________ phase of new-product development, marketers use a variety of sources to come up with a potentially new product that would benefit customers and be compatible with the company mission.

A)idea generation
B)problem recognition
C)perceptual mapping
D)positioning strategy
E)product screening

Question 63

________ is the process by which a consumer or business customer begins to buy and use a new good, service, or idea.

A)Commercialization
B)Product testing
C)Product adoption
D)Diffusion
E)Positioning

Question 64

Marketers may conduct a massive advertising campaign, called a ________, to educate consumers about a new product.

A)media blitz
B)diffusion network
C)trial market
D)test market
E)tipping point

Question 65

Once a new product or service passes the business analysis phase, it moves into what phase?

A)concept development
B)technical development
C)market testing
D)strategy development
E)product proposal

Question 66

The first step in the adoption process is ________.

A)product evaluation
B)awareness
C)problem recognition
D)evaluation
E)interest

Question 67

Burger King developed a new french fry to compete with McDonald's fry--considered the world's best.Burger King's specifications included that the crunch would last for seven or more chews.The product failed because consumers did not like the fry as much as McDonald's fry.Burger King did not ________ the idea for both technical and commercial value.

A)test market
B)advertise
C)screen
D)promote
E)style

Question 68

In the new-product development process, a description of the features a product will have and the benefits those features will provide a customer is called a ________.

A)product idea
B)product concept
C)product image
D)product proposal
E)product movement

Question 69

One of the advantages of test marketing is ________.

A)the low cost
B)the ability to keep information from falling into competitors' hands
C)the opportunity to survey prospective customers
D)the ability to evaluate a product and its marketing program before commercialization
E)the opportunity to sell existing products to a core customer base

Question 70

The last stage in the new-product development process is ________.

A)commercialization
B)business analysis
C)idea generation
D)concept testing
E)product concept development

Question 71

In the ________ of the new-product development phase, marketers estimate the technical and the commercial success of an idea for a new product.

A)problem recognition
B)product concept development and screening
C)idea generation
D)commercialization
E)technical development

Question 72

Bonneville Communications is concerned about test marketing its new device.Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?

A)Test marketing costs can be high.
B)Test markets give competitors a peek at the company's promotional strategy.
C)Test marketing allows time for competitors to gain advantages.
D)People who are surveyed tend to tell less than the truth.
E)Test marketing does not guarantee success.

Question 73

Diffusion refers to ________.

A)the promotion used to support products throughout their product life cycle
B)the second stage of the market segmentation process
C)the methodology used for evaluating new product ideas
D)the way the use of a product spreads throughout a population
E)the selection of opinion leaders to encourage product acceptance

Question 74

During the technical development phase of the new product development process, a physical version of the product is developed; it is called a ________.

A)test market
B)focus group
C)business analysis
D)product concept
E)prototype

Question 75

Consumers must engage in a great amount of learning to use a ________ because no similar product has ever been on the market.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 76

The first phase of the new-product development process is ________.

A)problem recognition
B)product concept screening
C)idea generation
D)product concept development
E)business analysis

Question 77

The business analysis for a new product begins with ________.

A)idea generation
B)problem recognition
C)assessing how the new product will fit into a firm's total product mix
D)perceptual mapping
E)identifying the distribution channel for the product

Question 78

Change happens quickly when a process reaches the moment of critical mass, which is called the ________.

A)adoption point
B)diffusion point
C)innovation point
D)trial point
E)tipping point

Question 79

Marketers would be most likely to use a focus group in which stage of new product development?

A)idea generation
B)problem recognition
C)business analysis
D)positioning strategy
E)product adoption

Question 80

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.

A)business feasibility
B)feasibility study
C)business analysis
D)product acceptance
E)technical development