Question 1

Conair, a manufacturer of appliances and personal care products, adds an electrical component to its curling iron that automatically switches off the curling iron when it has been idle for more than an hour. This improvement would best be classified as a(n):
A) product line extension.
B) quality modification.
C) aesthetic modification.
D) brand extension.
E) functional modification.

Accepted Answer

The addition of an automatic switch-off feature enhances the functionality of the curling iron, making it a functional modification.

Question 2

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) the modification should make the product more consistent with customers' desires.
B) competing companies should not be aware of planned product modifications.
C) management must avoid functional modifications in the product to evade any risk associated with the safety element of the modified product.
D) management must essentially enhance the modified product's quality and lower its price to increase its customer base.
E) resources needed for product modification should be limited in order to lower production costs.

Accepted Answer

The modification should align with customers' desires to ensure that the changes meet market needs and enhance customer satisfaction.

Question 3

The major drawback of using aesthetic modifications in products is:
A) that the cost of the modifications is very high.
B) that the value of the modification is determined subjectively.
C) the need for redesign of the product.
D) its dependency on quality and functional modifications.
E) that there is no differentiation for the product in the market.

Accepted Answer

Aesthetic modifications are subjective, meaning their value can vary greatly among different consumers, making it difficult to assess their overall impact on product success.

Question 4

Outback Steakhouse, a restaurant chain, wants to expand its range of dishes on its menu. The restaurant managers conduct surveys on customers to determine the dishes that would appeal to the customers. Outback is currently in the phase of the new-product development process.
A) business analysis
B) product development
C) test marketing
D) screening
E) idea generation

Accepted Answer

The phase described is idea generation, where the restaurant is gathering ideas from customers to determine which new dishes might appeal to them.

Question 5

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 also reduced its prices. This is an example of a(n):
A) aesthetic modification.
B) line extension.
C) brand extension.
D) functional modification.
E) quality modification.

Accepted Answer

Bauman Flooring's use of inexpensive fibers to produce low-grade carpeting at a reduced cost is an example of a quality modification, as it involves changing the quality of the product to make it cheaper.

Question 6

Line extensions are more common than new products because line extensions:
A) only focus on increasing sales within the existing market segment.
B) are guaranteed to succeed in the marketplace.
C) are a less expensive and lower-risk alternative for increasing sales.
D) require no market research.
E) do not keep the original product in the line after extension.

Accepted Answer

Line extensions are less expensive and lower-risk because they leverage existing brand recognition and customer loyalty, reducing the costs and uncertainties associated with launching entirely new products.

Question 7

Which of the following is a 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) Both line extension and product modification involve alteration of an existing product, but the alteration is more dramatic with a product modification than it is with a line extension.
C) A line extension is designed to aptly meet the needs of an existing market segment, while a product modification targets entirely new market segments.
D) With a product modification, the original product is replaced in the product line, while with a line extension, the original product remains intact in the product line.
E) A line extension consists of strictly aesthetic changes to an existing product, whereas a product modification consists of changes in quality and functionality.

Accepted Answer

With a product modification, the original product is replaced in the product line, while with a line extension, the original product remains intact in the product line.

Question 8

When marketers at Nabisco met with groups of young adults to identify the types of snacks that youths prefer, they were engaging in the phase of the new-product development process.
A) idea generation
B) business analysis
C) test marketing
D) commercialization
E) product development

Accepted Answer

Marketers were gathering information and ideas from young adults to identify potential new products, which is part of the idea generation phase.

Question 9

If the manufacturer of Cool Whip were to introduce a chocolate-flavored whipped cream and still continue to produce its existing flavors of whipped cream, this would be an example of a:
A) brand extension.
B) line extension.
C) functional modification.
D) quality modification.
E) product bundling.

Accepted Answer

A line extension occurs when a company introduces additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.

Question 10

Morgan is interested in upgrading to a new sofa for her apartment. She browses the Internet to check new models of her favorite sofa brand and gets information on the style and color of couches. However, she can't actually sit on a new model of sofa to determine its comfort level. Morgan is able to evaluate the modifications to the sofa, but not the modifications.
A) quality; functional
B) quality; aesthetic
C) aesthetic; functional
D) functional; quality
E) functional; aesthetic

Accepted Answer

The answer of Morgan is interested in upgrading to a...

Question 11

Which of the following best illustrates functional modification?
A) Campbell's adds large chunks of higher-grade chicken in its classic chicken noodle soup.
B) A smoke detector is upgraded to be more sensitive to smoke at farther distances.
C) Motorola uses long-lasting batteries for its cell phones to facilitate quicker charging.
D) A manufacturer of primer and sealer 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 smoke detector is upgraded to be more sensitive to smoke at farther distances. This is an example of functional modification because the product is being modified to perform a new or improved function.

Question 12

Compare and contrast a product manager and a brand manager.

Accepted Answer

The answer of Compare and contrast a product manager and...

Question 13

When Chrysler produces new model vehicles, it discontinues production of previous year's model. However, when Apple brings out a new iPhone, it continues to produce the previous version for at least some period of time. Chrysler's new­product strategy is an example of a(n) , while Apple's strategy is an example of a(n) .
A) functional modification; quality modification
B) product modification; line extension
C) product lining; product bundling
D) product extension; brand extension
E) brand extension; product bundling

Accepted Answer

Chrysler's strategy is an example of a product modification, as it involves changing the product's features or design. Apple's strategy is an example of a line extension, as it involves adding new products to an existing product line.

Question 14

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) operational
E) feature

Accepted Answer

The modification of providing chairs in new colors is an aesthetic change, as it pertains to the appearance and visual appeal of the product.

Question 15

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) Brand extension
B) Line extension
C) Brand stretching
D) Product bundling
E) Product churning

Accepted Answer

A line extension involves developing a product that is closely related to existing products in a firm's product line but is designed to meet different customer needs.

Question 16

Discuss the factors that affect the delivery of services. How can service marketers use these factors to their advantage?

Accepted Answer

The answer of Discuss the factors that affect the delivery...

Question 17

All of the following are major steps in developing new products except:
A) test marketing.
B) competitor analysis.
C) screening.
D) commercialization.
E) idea generation.

Accepted Answer

Competitor analysis is not a major step in the product development process; it is more related to market research and strategy. The other options are key steps in developing new products.

Question 18

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coca-Cola, to name a few. These are examples of:
A) product modification.
B) brand extension.
C) product bundling.
D) line extension.
E) brand equity.

Accepted Answer

These are examples of line extension, where a company introduces additional items in the same product category under the same brand name, such as new flavors or variations.

Question 19

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

Modifications that alter the sensory appeal of a product, such as taste, texture, sound, smell, or visual characteristics, are considered aesthetic modifications. They aim to enhance the overall “look and feel” of the product, making it more pleasing to the senses of the consumers. Aesthetic modifications include changes to the color, shape, packaging, branding or labeling of the product. Functional, operational, quality, and feature modifications, on the other hand, focus on improving the performance, durability, reliability, or usefulness of the product.

Question 20

Sony's design of its new large-screen television set with smoked-glass control panel cover 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(n) modification.
A) functional; aesthetic
B) aesthetic; functional
C) functional; quality
D) quality; aesthetic
E) quality; functional

Accepted Answer

Sony's design changes to the television set, such as the smoked-glass control panel cover, are aesthetic modifications as they pertain to the visual appearance. Changes to make the remote easier to use are functional modifications as they improve the usability of the product.

Quiz 11: Developing and Managing Goods and Services

Conair, a manufacturer of appliances and personal care products, adds an electrical component to its curling iron that automatically switches off the curling iron when it has been idle for more than an hour. This improvement would best be classified as a(n) :

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:

The major drawback of using aesthetic modifications in products is:

Outback Steakhouse, a restaurant chain, wants to expand its range of dishes on its menu. The restaurant managers conduct surveys on customers to determine the dishes that would appeal to the customers. Outback is currently in the phase of the new-product development process.

Line extensions are more common than new products because line extensions:

Which of the following is a primary distinction between a line extension and a product modification?

When marketers at Nabisco met with groups of young adults to identify the types of snacks that youths prefer, they were engaging in the phase of the new-product development process.

If the manufacturer of Cool Whip were to introduce a chocolate-flavored whipped cream and still continue to produce its existing flavors of whipped cream, this would be an example of a:

Which of the following best illustrates functional modification?

Compare and contrast a product manager and a brand manager.

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.

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.

Discuss the factors that affect the delivery of services. How can service marketers use these factors to their advantage?

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

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

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

Sony's design of its new large-screen television set with smoked-glass control panel cover 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(n) modification.