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.

Accepted Answer

Line extensions are less expensive and lower-risk because they involve using the existing brand name, packaging, distribution channels, and advertising campaigns, thus requiring less investment in marketing research and development. Therefore, they are more common than new products.

Question 2

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

Accepted Answer

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.

Accepted Answer

With product modifications, the original product often gets replaced or significantly altered in the product line, reflecting substantial changes in its features, quality, or performance. In contrast, line extensions involve adding new varieties, sizes, flavors, or related products to an existing product line without replacing the original product, thereby expanding the product line.

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.

Accepted Answer

This is an example of line extension because the manufacturer is introducing a new flavor within the existing product line of Cool Whip.

Question 5

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

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Question 6

Why and how might an organization delete existing products?

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Question 7

Compare and contrast line extensions and product modifications.

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Question 8

What is concept testing, and why is it important?

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Question 9

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

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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.

Accepted Answer

These are examples of line extensions, which involve adding new products to an existing product line. In this case, Coke is the existing product line, and Diet Coke, Cherry Coke, and Caffeine-free Coke are all new products that extend the line. Product modifications (A) involve making changes to an existing product, while functional modifications (B) focus on changing how a product works or performs. Aesthetic modifications (C) involve changing the look or design of a product. Product lining (E) refers to the assortment of products that a company offers across different product lines, rather than adding new products to an existing line.

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

Accepted Answer

Jeep Wrangler's strategy is a product modification as they replace the old model with a new one. Apple's strategy is a line extension as they continue to produce the previous version alongside the new one.

Question 12

Compare and contrast a product manager and a brand manager.

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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

Accepted Answer

A line extension 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. Quality modification refers to changes in the quality of a product, aesthetic modification refers to changes in the product's appearance, feature modification refers to changes in the product's features, and product mix modification refers to changes in the overall product mix of a company.

Question 14

Discuss the advantages and problems associated with test marketing.

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Question 15

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

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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.

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Question 17

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

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Question 18

Why is it often difficult for organizations to delete products?

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Question 19

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

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Question 20

Identify and explain the dimensions of product quality.

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Quiz 12: Developing and Managing Products

Why are line extensions more common than new products?