Deck 12: Developing and Managing Products

Question 1

Why are line extensions more common than new products?

A)They are higher risk and more expensive.
B)They are guaranteed to succeed in the marketplace.
C)They are less expensive and lower-risk.
D)They require no market research.
E)Modifications to existing products are very easy.

Answer 1

C

Question 2

Describe product positioning. List and explain the bases for positioning.

Answer 2

Product positioning refers to the decisions and activities intended to create andmaintain a certain concept of a firm's product (relative to competitive brands) incustomers' minds. When marketers introduce a product, they try to position it so thatit appears to have the characteristics that the target market most desires.Marketers can use several bases for product positioning. A common basis forpositioning products is to use competitors. A firm can position a product to competehead-onwith another brand. Head-to-headcompetition may be a marketer'spositioning objective if the product's performance characteristics are at least equal tothose of competitive brands and if the product is priced lower. Head-to-headpositioning may be appropriate even when the price is higher if the product'sperformance characteristics are superior.A product's position can be based on specific product attributes or features. If aproduct has been planned properly, its features will give it the distinct appeal needed.The target market can also be a positioning basis caused by marketing. This type ofpositioning relies heavily on promoting to the types of people who use the product.Other bases for product positioning include price, quality level, and benefits providedby the product.

Question 3

What is the primary distinction between a line extension and a product modification?

A)A product modification results in a completely new product while a line extension is simply changing an old product.
B)In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension.
C)Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market.
D)With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
E)Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.

Answer 3

D

Question 4

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

A)a brand extension.
B)line extension.
C)functional modification.
D)quality modification.
E)a new-to-the-world product.

Question 5

List and discuss the major phases of the new-product development process.

Question 6

Why and how might an organization delete existing products?

Question 7

Compare and contrast line extensions and product modifications.

Question 8

What is concept testing, and why is it important?

Question 9

What exactly is analyzed during the business analysis phase of new-product development?

Question 10

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

A)product modifications.
B)functional modifications.
C)aesthetic modifications.
D)line extensions.
E)product lining.

Question 11

When Jeep Wrangler produces the new year's model vehicle, they discontinue production of last year's. However, when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a(an) _____ while Apple's is an example of a(an)______.

A)product modification; quality modification
B)product modification; line extension
C)quality modification; product modification
D)functional modification; product modification
E)line extension; product modification

Question 12

Compare and contrast a product manager and a brand manager.

Question 13

____ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.

A)Quality modification
B)Line extension
C)Aesthetic modification
D)Feature modification
E)Product mix modification

Question 14

Discuss the advantages and problems associated with test marketing.

Question 15

Identify and describe the three major ways to modify existing products, and give an example of each.

Question 16

In product modification, the first issue to consider is whether

A)existing customers can perceive that a product modification has been made.
B)the product is modifiable.
C)quality is modified.
D)modification will make the product more consistent with customers' desires.
E)modification will provide greater satisfaction to the consumer.

Question 17

Discuss the major approaches that marketers use to differentiate their products.

Question 18

Why is it often difficult for organizations to delete products?

Question 19

Why do brands require repositioning? What are the ways in which repositioning can be accomplished?

Question 20

Identify and explain the dimensions of product quality.

Question 21

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

Question 22

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.

Question 23

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.

Question 24

Functional modifications usually require that the product be

A)less specific.
B)limited to its functions.
C)more appealing.
D)more technical.
E)redesigned.

Question 25

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

Question 26

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.

Question 27

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

Question 28

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

Question 29

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.

Question 30

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

Question 31

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.

Question 32

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.

Question 33

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.

Question 34

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

A)functional
B)formal
C)aesthetic
D)quality
E)package

Question 35

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.

Question 36

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.

Question 37

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.

Question 38

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.

Question 39

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

Question 40

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

Question 41

The test-marketing stage

A)is an extension of the screening stage.
B)should come immediately after business analysis.
C)ensures that the product will not fail.
D)is a sample launching of the entire marketing mix.
E)prevents competitors from copying the product.

Question 42

Breakeven analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.

A)screening
B)concept testing
C)business analysis
D)product development
E)test marketing

Question 43

A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

A)Business analysis
B)Product testing
C)Idea generation
D)Commercialization
E)Screening

Question 44

Which of the following phases of new-product development is likely the least costly for the firm?

A)Commercialization
B)Concept testing
C)Business analysis
D)Product development
E)Test marketing

Question 45

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called

A)concept testing.
B)customer response testing.
C)idea analysis.
D)test marketing.
E)screening.

Question 46

Kara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked "What level of quality are we building into the camping gear?" Based on this question, Kara and her team are most likely in the ____ phase of new-product development.

A)commercialization
B)concept testing
C)business analysis
D)product development
E)test marketing

Question 47

Patrick is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the ___ phase of the new-product development process.

A)concept testing.
B)business analysis
C)idea screening.
D)idea generation.
E)test marketing.

Question 48

Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbucks' objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is

A)product development.
B)idea screening.
C)concept testing.
D)business analysis.
E)test marketing.

Question 49

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process?

A)Idea generation
B)Business analysis
C)Commercialization
D)Test marketing
E)Screening

Question 50

As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process?

A)Idea generation
B)Commercialization
C)Test marketing
D)Screening
E)Product development

Question 51

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

Question 52

Ideally, test marketing should follow which stage in the new-product development process?

A)Commercialization
B)Business analysis
C)Screening
D)Limited production
E)Product development

Question 53

"Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development.

A)screening
B)concept testing
C)business analysis
D)product development
E)test marketing

Question 54

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

A)Product development
B)Evaluation of competitor's efforts
C)Screening
D)Idea generation
E)Business analysis

Question 55

Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process.

A)Idea generation
B)Market testing
C)Business analysis
D)Concept testing
E)Compatibility research

Question 56

Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?

A)Screening
B)Concept testing
C)Business analysis
D)Product development
E)Test marketing

Question 57

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase.

A)idea generation
B)concept testing
C)business analysis
D)screening
E)test marketing

Question 58

Marcellis is a product manager for a major electronics company. His current project is the development and introduction of a new smartphone. Since there are a number of smartphones currently out on the market, Marcellis is concerned about product failure. Currently, Marcellis and his team are in the screening phase of the new product development process. Has his team already passed the phase which is best able to measure the product failure concern?

A)Yes, the best phase is the idea screening phase.
B)Yes, the best phase is the concept testing phase.
C)No, the best phase is the business analysis phase.
D)Yes, the best phase is the test marketing phase.
E)No, the best phase is the test marketing phase.

Question 59

The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is

A)test marketing.
B)commercialization.
C)concept testing.
D)product development.
E)business analysis.

Question 60

After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

A)product design
B)screening
C)product development
D)concept testing
E)test marketing

Question 61

Early in the commercialization phase, marketers must make decisions about

A)warranties, repairs, and replacement parts.
B)product features and breakeven points.
C)functionality, safety, and convenience.
D)the proposed marketing mix variables.
E)which ideas to further pursue.

Question 62

If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ____ to reduce the validity of the other firm's results.

A)testing interference
B)leadership pricing
C)jamming
D)test marketing
E)stress marketing

Question 63

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

A)positioning.
B)level and consistency of quality.
C)ability to meet customer service needs.
D)design, styling, and level of quality.
E)design, styling, and features.

Question 64

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

A)consistency.
B)longevity.
C)variability.
D)status.
E)image.

Question 65

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

Question 66

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

A)It reduces the risk of introducing a new product.
B)It is easier logistically to introduce it all at once.
C)It is difficult to slow down production enough for a gradual introduction.
D)It allows competitors to monitor the results of the new product.
E)It prevents product differentiation based on geographical differences.

Question 67

____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important characteristics of quality for business markets.

A)Reliability/ease of use; technical suitability/ease of repair
B)Technical suitability/reasonable price; trusted brand name/ease of repair
C)Durability/technical suitability; company reputation/ease of repair
D)Ease of maintenance/durability; company reputation/technical suitability
E)Trusted brand name/ease of repair; reliability/company reputation

Question 68

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

A)quality.
B)consistency.
C)durability.
D)functionality.
E)design.

Question 69

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.
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 might fail before it can be commercialized.

Question 70

Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ____ stage of the new-product development process.

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

Question 71

Three major ways in which marketers engage in product differentiation are

A)product quality, product design and features, and product support services.
B)product quality, product support services, and packaging.
C)product support services, product design and features, and product positioning.
D)product positioning, product quality, and product management.
E)product positioning, product design and features, and product promotion.

Question 72

The three major ways to modify a product include

A)aesthetic, quality, and functional changes.
B)extensions, generations, and upgrades.
C)color, size, and quantity modifications.
D)styling, product features, and product design.
E)quality, quantity, and design.

Question 73

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as

A)market development.
B)regional commercialization.
C)roll-out.
D)market extension.
E)competitive jamming.

Question 74

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

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

Question 75

Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. In addition, 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)consistency of quality.
C)level of quality.
D)product positioning.
E)product differentiation.

Question 76

A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a ____ for its new variety of Doritos.

A)multi-stage introduction
B)roll-out approach
C)test-market expansion
D)mass commercialization
E)trickle-down approach

Question 77

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

Question 78

Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ____, whereas Katie apparently based her decision on ____.

A)price; product quality
B)real product differences; perceived product image
C)perceived product image; product quality
D)product value; perceived product image
E)product design; product quality

Question 79

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)differentiation
D)product features
E)product positioning

Question 80

Select the true statement concerning test marketing.

A)Test marketing is simply an extension of the screening and developing stages.
B)Test marketing should be conducted after all the marketing mix variables have been finalized.
C)Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
D)If the product is successful in the test market, then it is ensured of success upon total introduction.
E)Large corporations usually launch test-marketing efforts in one small area at a time.