Deck 10: Developing New Products and Services

Question 1

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

Answer 1

C

Question 2

Colgate toothpaste is likely:

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

Answer 2

A

Question 3

The Nike LeBron [King James] basketball shoes retail at $199.99 and only come in size 12,the size of LeBron James' shoe.This item is called a(n):

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

Answer 3

C

Question 4

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

Question 5

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

Question 6

Polaroid Canada has two major __________ consisting of cameras and film.

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

Question 7

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)universal product codes
C)stock-keeping units
D)order quantity codes

Question 8

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

Question 9

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

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

Question 10

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

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

Question 11

Nike's __________ are shoes and clothing.

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

Question 12

Apple's inventions were revolutionary in all of the following industries,except:

A)personal computing
B)animated movies
C)digital publishing
D)gift cards

Question 13

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

Question 14

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

Question 15

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

Question 16

Which statement below best describes why iCloud was unique in the industry when Apple launched it in mid-2011?

A)no other service offered seamless integration and syncing between multiple devices
B)other services existed, but only synced multiple personal computers
C)other services existed, but only synced multiple smartphones
D)it was the first service that was profitable

Question 17

According to innovation at Apple,how it conceives,produces,and markets new products and/or services,is the foundation for:

A)the success of a business
B)further innovations
C)competitive positioning
D)employee satisfaction

Question 18

Why would a cash register be considered a business good?

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

Question 19

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

Question 20

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

Question 21

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

A)Shopping
B)Convenience
C)Specialty
D)Prestige

Question 22

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

A)Shopping
B)Convenience
C)Specialty
D)Prestige

Question 23

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

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

Question 24

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

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

Question 25

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

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

Question 26

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

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

Question 27

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

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

Question 28

Which of the following is considered a durable good?

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

Question 29

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

Question 30

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

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

Question 31

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

A)Shopping
B)Convenience
C)Specialty
D)Prestige

Question 32

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

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

Question 33

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

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

Question 34

Classification of products using the terms: nondurable goods,durable goods,and services essentially describe the _______ of a product.

A)consumption
B)tangibility
C)liquidity
D)porosity

Question 35

Which product below is likely to be sold using personal selling primarily?

A)gasoline
B)iPad
C)airplane ticket
D)baking goods

Question 36

Which of the following is considered a durable good?

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

Question 37

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)shopping goods
C)business goods
D)specialty goods

Question 38

Gasoline would be considered a:

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

Question 39

Convenience goods are:

A)products purchased by organizations.
B)products purchased for resale.
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 40

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

Question 41

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

Question 42

Websites such as IDEO and InnoCentive use ___________ to obtain ideas.

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

Question 43

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

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

Question 44

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

Question 45

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

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

Question 46

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

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

Question 47

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

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

Question 49

As the founder of a new startup,you pose a question on your website,asking current and potential customers what else they would like to see the startup offer or improve upon.Essentially,the startup is using ______________ for ideas.

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

Question 50

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

Question 51

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

A)Shopping
B)Convenience
C)Specialty
D)Unsought

Question 52

With respect to distribution,convenience goods are available:

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

Question 53

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

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

Question 54

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

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

Question 55

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

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

Question 56

Shopping goods are items:

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

Question 57

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)crowdsourcing
C)idea generation
D)online ideation

Question 58

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

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

Question 59

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)convenience good.
C)specialty good.
D)unsought goo

Question 60

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

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

Question 61

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

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

Question 62

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

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

Question 63

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)alignment with firm's corporate objectives
C)manufacturing feasibility
D)selling price

Question 64

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

Question 65

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

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

Question 66

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

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

Question 67

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

Question 68

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

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

Question 69

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

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

Question 70

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

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

Question 71

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

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

Question 72

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

Question 73

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

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

Question 74

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

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

Question 75

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

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

Question 76

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

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

Question 77

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)test-case analysis
C)capacity management
D)alternative competitive analysis

Question 78

Poor product quality is often the result of poor:

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

Question 79

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

Question 80

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

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