Deck 10: Developing New Products and Services

Question 1

The Toronto Hospital for Sick Children consists of inpatient hospital care, outpatient physician services, and medical research. For the hospital, these would be considered their:

A)product lines.
B)marketing mixes.
C)product classes.
D)product mixes.

Answer 1

A

Question 2

Nike's are shoes and clothing.

A)product mixes
B)product classes
C)product lines
D)marketing mixes

Answer 2

C

Question 3

The Build-A-Bear Workshop sells custom made teddy bears designed to be given as gifts for almost every occasion imaginable. The Beary Romantic Curly Teddy is one bear designed for people to give to each other on Valentine's Day. The code that the Build-A-Bear Workshop uses to distinguish this teddy bear from the others in its inventory and to order new stock when its numbers are depleted is a(n):

A)order quantity code.
B)stock-keeping unit.
C)universal product code.
D)distinct stock size.

Answer 3

B

Question 4

Which statement below best describes why the ThothX Tower is unique in the space industry?

A)The space elevator looks at ejecting astronauts into space using electricity over rocket fuel.
B)The space elevator is the first opportunity to move mass groups of people to space and overcome gravity.
C)The space elevator overcomes the obstacles of cost, inefficiencies of rocketry science, and is more environmentally friendly.
D)The space elevator climbs to heights of 50 km above the Earth to link astronauts to the space station.

Question 5

During a recent shopping trip to the local Zellers store, Pat noticed several things. First, she noticed that the store offered a tremendous variety of products, including
Toys, pet foods, clothing for men, women, and children, health and beauty aids, small household appliances, automotive products, and more. Further, Pat noticed Zellers
Offered an array of different products within each product group. Each product group at Zellers is an example of a ; all of the product groups together constitute
Zeller's _.

A)product mix; product unit
B)product line; product mix
C)product tangibility; product unit
D)product unit; product tangibility

Question 6

A supplements company has a strategy to minimize the number of products they have to ensure they can best service all of their existing products. In doing so, their corporate goal is to have no more than five _.

A)distinct stock sizes
B)order quantity codes
C)stock-keeping units
D)universal product codes

Question 7

Two major ways to classify products are by type of _ and degree of _ .

A)user; product tangibility
B)value; utility
C)class; utility
D)utility; customizability

Question 8

Colgate toothpaste is likely:

A)a product a consumer will make an effort to seek out and buy.
B)purchased by the ultimate consumer.
C)purchased for resale.
D)used in the production of other items.

Question 9

What advantages does the ThothX Tower have compared to professional rockets for space travel?

A)The Tower is faster than a rocket launched from Earth.
B)The Tower can eject astronauts vertically into space.
C)The Tower uses electricity and induction so is environmentally friendly.
D)The ThothX Tower can also launch satellites into orbit.

Question 10

A group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range are referred to as a:

A)product mix
B)product class
C)marketing mix
D)product line

Question 11

The Build-A-Bear Workshop in West Edmonton Mall sells custom made teddy bears designed to be given as gifts for almost every occasion imaginable. For the Build-A-Bear Workshop, teddy bears are an example of a:

A)marketing mix.
B)product mix.
C)product class.
D)product line.

Question 12

Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauce, and salad dressings under the Newman's Own brand name. These product lines are the company's:

A)product category.
B)stock-keeping units.
C)product hierarchy.
D)product mix.

Question 13

Why would a cash register be considered a business good?

A)It is a product that assists directly or indirectly in providing products for resale.
B)It is a product purchased for resale.
C)It is a product that a consumer will make an effort to seek out and buy.
D)It is a product or services used to make the consumer's task easier.

Question 14

Within each product line, a specific product as noted by a unique brand, size, or price is referred to as the .

A)universal product code
B)order quantity code
C)stock-keeping unit
D)product item

Question 15

The Build-A-Bear Workshop in West Edmonton Mall sells custom made Teddy bears designed to be given as gifts for almost every occasion imaginable. The Beary Romantic Curly Teddy is one bear it designed for people to give to each other on Valentine's Day. The Beary Romantic Curly Teddy is an example of a:

A)brand item.
B)product class.
C)?product item.
D)?product type.

Question 16

Fortune Brands offers many product lines, including sporting equipment (Titleist golf balls)and plumbing products (Moen faucets). Together, these product lines are referred to as a(n):

A)product mix.
B)product class.
C)product category.
D)marketing mix.

Question 17

Polaroid Canada has two major consisting of cameras and film.

A)marketing mixes
B)product mixes
C)product lines
D)product classes

Question 18

ThothX's space elevator, if implemented, is a good example of:

A)Moderately disruptive innovation
B)Dynamically continuous innovation
C)Discontinuous innovation
D)Continuous innovation

Question 19

ThothX's space elevator is an example of how space travel can change as well as open opportunities in all of the following, except:

A)Advanced communications.
B)Wind-energy generation.
C)Space tourism.
D)Airplane technology.

Question 20

Procter & Gamble offers home cleaning products (such as Mr. Clean), personal health products (such as Colgate toothpaste), and optometry products (such as contact lenses). Collectively, these would be Procter & Gamble's:

A)product category.
B)product class.
C)marketing mix.
D)product mix.

Question 21

Advertising is important for products such as Coffee Crisp candy bars and Dasani bottled water that are purchased frequently and at relatively low cost. Wide distribution in retail outlets is essential. Why?

A)They are nondurable goods and easily substitutable so consumers need to be reminded of their existence.
B)They are unsought goods so advertising targets consumers' impulsiveness.
C)They are production goods and can easily go out of stock.
D)They are durable goods and cannot be sold without personal selling to answer consumers' questions.

Question 22

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

A)DVD player
B)cat food
C)shoes
D)insurance

Question 23

Reference: 10-01
Figure 10-1

According to Figure 10-1, column "C" would represent what type of product?

A)Shopping
B)Convenienc e
C)Prestige
D)Specialty

Question 24

A major difficulty in classifying products by type of user is that some products can be considered both consumer and industrial goods. To clarify decisions for developing the marketing mix strategy, classifying by the type of user focuses on the market and:

A)purchase behaviour.
B)market size.
C)generated revenue.
D)business mission.

Question 25

Which of the following is considered a durable good?

A)an airplane ticket to Toronto
B)stereo equipment
C)flour and sugar
D)gasoline

Question 26

Consumer goods are products purchased by the ultimate consumer, whereas ________ are products used in the production of other products for ultimate consumers.

A)convenience goods
B)specialty goods
C)shopping goods
D)business goods

Question 27

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

A)Ivory soap
B)Lexus LS 400 luxury automobile
C)Flight on Air Canada
D)Sony CD player

Question 28

Each of the following describes products that assist directly or indirectly in providing products for resale EXCEPT:

A)Organizational goods
B)Consumer goods
C)B2B goods
D)Industrial goods

Question 29

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

A)gasoline
B)health care
C)automobile
D)hair cut

Question 30

Reference: 10-01
Figure 10-1

According to Figure 10-1, column "B" would represent what type of product?

A)Prestige
B)Specialty
C)Convenienc e
D)Shopping

Question 31

Gasoline would be considered a:

A)Industrial goods
B)Specialty goods
C)Convenience goods
D)Shopping goods

Question 32

Which of the following is considered a durable good?

A)silverware
B)chewing gum
C)market research
D)caviar

Question 33

Reference: 10-01
Figure 10-1

According to Figure 10-1, column "D" would represent what type of product?

A)Unsought
B)Convenienc e
C)Specialty
D)Shopping

Question 34

Among consumer goods, advertising and wide distribution are especially important for:

A)production goods.
B)durable goods.
C)unsought goods.
D)nondurable goods.

Question 35

Special marketing efforts are usually needed to communicate the benefits to potential buyers of _, because they are intangible.

A)durable goods
B)nondurable goods
C)unsought goods
D)services

Question 36

Convenience goods are:

A)products purchased for resale.
B)products purchased by organizations.
C)products used in the production of other items for ultimate consumer use.
D)products the consumer purchases frequently and with a minimum of shopping effort.

Question 37

Which of the following would most likely be considered a consumer good?

A)back hoe
B)suitcase
C)ball bearings
D)printing press

Question 38

Which of the following is NOT an example of a purchase of industrial goods?

A)An accounting firm buying a new computer system
B)A daycare buying diapers
C)Ford buying paint for its automobiles
D)A printing company buying paper

Question 39

Reference: 10-01
Figure 10-1

According to Figure 10-1, column "A" would represent what type of product?

A)Shopping
B)Prestige
C)Specialty
D)Convenienc e

Question 40

Cat food is to a nondurable good, as is to a durable good.

A)toothpaste
B)vehicle
C)life insurance
D)financial service (i.e. mortgage)

Question 41

With respect to distribution, convenience goods are available:

A)at a large number of selective outlets.
B)at a very limited number of outlets.
C)at relatively few outlets.
D)on a widespread basis at many outlets.

Question 42

All of the following could be considered sources of open innovation ideas, except:

A)partner firms
B)universities
C)current employees
D)investors

Question 43

Janine recently went gluten free and is purchasing breakfast cereals for the first time. Which statement below best describes her experience?

A)she will not have success.
B)she will make a special effort to seek out and buy.
C)she will likely compare several alternatives on several criteria.
D)she will make purchases frequently and with a minimum of shopping effort.

Question 44

You greatly admire a set of Ralph Lauren crystal goblets you see at a dinner party, and decide to buy four, despite the somewhat surprising price of $60 each. They are only available in your area in a Polo Ralph Lauren shop, 40 miles from campus. Into which classification of consumer goods would the crystal goblets fall?

A)unsought goods
B)convenience goods
C)shopping goods
D)specialty goods

Question 45

Leona hates carrying a camera with her on vacations. If she only knew of the existence of the 1/2" thick Logitech Pocket Digital camera which easily fits in any pocket. For Leona, the Logitech camera is a(n):

A)shopping good.
B)unsought good.
C)specialty good.
D)convenience good.

Question 46

In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes. This is characteristic of:

A)specialty goods.
B)convenience goods.
C)unsought goods.
D)shopping goods.

Question 47

Shopping goods are items:

A)for which the consumer compares several alternatives on criteria, such as price, quality, or style.
B)used to assist in producing other goods and services.
C)the consumer purchases frequently and with a minimum of shopping effort.
D)such as a Rolex watch that a consumer makes a special effort to search out and buy.

Question 48

Fifty percent or more of Canadian adults have not had their teeth checked by a dentist within the last five years. For these people dental services would be classified as a(n):

A)unsought good.
B)specialty good.
C)shopping good.
D)convenience good.

Question 49

In terms of promotion, which of the following types of goods would stress price, availability, and awareness?

A)specialty
B)unsought
C)shopping
D)convenienc e

Question 50

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

A)Mercedes Benz CL250
B)Roget's Thesaurus
C)CD player
D)Lexus LS 400 luxury automobile

Question 51

When Dell created a website where any individual can submit future ideas or products based on their experience with the company, Dell was using which specific strategy?

A)open innovation
B)idea generation
C)crowdsourcing
D)online ideation

Question 52

The manner in which a consumer good is classified depends on the individual. One person may view a camera as a and visit several stores before deciding on a
Brand, whereas a friend may view cameras as a and will only buy a Nikon.

A)convenience good; specialty good
B)specialty good; prestige good
C)shopping good; specialty good
D)prestige good; unsought good

Question 53

In terms of price, which of the following types of goods would most likely be relatively inexpensive?

A)specialty goods
B)shopping goods
C)unsought goods
D)convenience goods

Question 54

You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test drive different makes and models, and compare prices at several dealerships. Into which classification of consumer goods would your new car purchase fall?

A)specialty goods
B)shopping goods
C)unsought goods
D)convenience goods

Question 55

Websites such as IDEO and InnoCentive use to obtain ideas.

A)crowdsourcing
B)"free time"
C)real-time feedback
D)online ideation

Question 56

With respect to price, which of the following types of consumer goods would most likely be fairly expensive?

A)unsought goods
B)convenience goods
C)specialty goods
D)shopping goods

Question 57

Which type of consumer good is purchased relatively infrequently and takes some time to make the purchase decision due to some comparison shopping?

A)shopping goods
B)convenience goods
C)unsought goods
D)specialty goods

Question 58

All of the following are advantages in using virtual reality test marketing, except:

A)it is often less expensive
B)it can often be more expensive
C)it can often reduce the time to market

Question 59

Which of the following is most likely to be an example of an unsought good?

A)Lexus LS 400 luxury automobile
B)Ceramic French poodle
C)CD player
D)Flight on Air Canada

Question 60

Burberry makes fine raincoats, clothing, and other items, many featuring the company's distinctive plaids. Originally found only in Great Britain, Burberry has opened exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry is selling in which classification of consumer goods?

A)unsought goods
B)convenience goods
C)shopping goods
D)specialty goods

Question 61

In terms of promotion, which of the following types of goods stress product differentiation from competitors?

A)convenience goods
B)shopping goods
C)unsought goods
D)specialty goods

Question 62

Marissa, a college student and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a college student with limited
Financial resources, Marissa went from car dealer to car dealer in several different
Cities searching for the lowest price on a new economy car. She devoted a great deal of time and energy to getting the best value for her money. Marissa's father, however,
Knew that he would buy another new car next year. Because it was convenient, he simply went to the local auto dealer and, with little thought or effort regarding the
Buying decision, bought the first luxury car that he saw. For Marissa, an automobile was a ________; for her father, a car was a _.

A)convenience good; specialty good
B)shopping good; convenience good
C)specialty good; shopping good
D)specialty good; convenience good

Question 63

Specialized bicycles may increase the demand for Shimano gears if there is an increase in consumer demand for specialized mountain bikes. This illustrates _.

A)contrived demand
B)secondary demand
C)derived demand
D)primary demand

Question 64

When analyzing a new potential service offering, it is critical for the organization to use which of the following tools?

A)consumer usability analysis
B)capacity management
C)alternative competitive analysis
D)test-case analysis

Question 65

Heavy-duty Rayovac flashlights are sold throughout Canada. The bulbs used in the flashlights, however, are manufactured by Philips, and the quantity of bulbs Philips sells is related to how many flashlights Rayovac manufactures. This is an example of:

A)a tying arrangement.
B)relationship marketing.
C)derived demand.
D)buildup marketing.

Question 66

A company that manufactures door hinges used by GM in its car doors gets increased orders from GM because more consumers are demanding GM vehicles. This illustrates ________.

A)secondary demand
B)contrived demand
C)primary demand
D)derived demand

Question 67

Poor product quality is often the result of poor:

A)needs vs. wants analysis
B)testing
C)marketing efforts
D)consumer development

Question 68

The main result of poor product protocol, or product definition, is:

A)human resource challenges
B)poor consumer response
C)ineffective marketing plans
D)wasted dollars for R&D

Question 69

Which type of consumer good is purchased infrequently and takes an extensive amount of time to make the purchase decision and obtain the item?

A)unsought goods
B)specialty goods
C)shopping goods
D)convenience goods

Question 70

Distribution is most limited with which of the following types of consumer goods?

A)specialty goods
B)convenience goods
C)unsought goods
D)shopping goods

Question 71

All of the following are considerations to understand the 'business fit' of a potential new offering, except:

A)alignment with firm's mission and vision
B)manufacturing feasibility
C)selling price
D)alignment with firm's corporate objectives

Question 72

With respect to price, which of the following types of consumer goods would most likely be very expensive?

A)shopping goods
B)specialty goods
C)convenience goods
D)unsought goods

Question 73

If consumer demand for Ford cars (a consumer product)increases, the company may increase its demand for paint-spraying equipment (a business good). This illustrates ________.

A)derived demand
B)unit demand
C)contrived demand
D)primary demand

Question 74

The demand for one product that results from the demand for another product is called:

A)contrived demand.
B)primary demand.
C)secondary demand.
D)derived demand.

Question 75

Off-peak pricing for a new service offering is a result of using _ understand the potential service offering.
To fully

A)test-case analysis
B)consumer usability analysis
C)alternative competitive analysis
D)capacity management

Question 76

Windows Vista was destined to fail because Microsoft failed to conduct thorough:

A)needs vs. wants analysis
B)consumer development
C)product testing
D)marketing analysis

Question 77

A company that manufactures door hinges used by GM in its car doors gets increased orders from GM because more consumers are demanding GM vehicles. This illustrates ________ for this _.

A)secondary demand; shopping good
B)derived demand; prestige good
C)derived demand; production good
D)primary demand; unsought good

Question 78

With respect to price and availability, shopping goods are likely to be:

A)very expensive, very limited availability.
B)fairly expensive, available at a large number of selective outlets.
C)relatively inexpensive but very limited availability.
D)relatively inexpensive and widely available.

Question 79

In terms of brand loyalty, consumers prefer specific brands, but will accept substitutes after consideration with which type of consumer goods?

A)specialty goods
B)convenience goods
C)shopping goods
D)unsought goods

Question 80

Which of the following best illustrates the concept of derived demand as explained in the text?

A)The number of retail stores in a downtown area decreases and demand for retail goods increases.
B)The heat wave results in an increased demand for air conditioners.
C)An increase in the number of new single family homes results from a spurt in the gross national product.
D)Jet engine manufacturers experience increased sales because more tourists are taking international vacations.