Deck 8: Creating and Managing Products

Question 1

At a trade show,a police officer discovered a flashlight made by KAS Systems that could be used to check alcohol levels without anyone knowing what he was doing.Prior to the show,the KAS system was a/n ________ for the police officer.

A)convenience product
B)homogeneous product
C)unsought product
D)specialty product
E)shopping product

Answer 1

C

Question 2

Which of the following is an example of a good?

A)A medical examination by a doctor
B)An idea for a new television show
C)A textbook
D)A massage
E)All of the above

Answer 2

C

Question 3

For an amusement park,concession food trailers,the first-aid building,and the building where the park's daily receipts are tallied are all examples of ________.

A)equipment
B)MRO products
C)convenience products
D)specialty products
E)processed materials

Answer 3

A

Question 4

Marketers typically view all products as ________.

A)bundles of attributes
B)tangible items that satisfy some need
C)need hierarchical satisfiers
D)problem solvers
E)heuristics

Question 5

________ is/are manufactured goods or sub-assemblies of finished items that organisations need to complete their own products.

A)Component parts
B)MRO products
C)Raw materials
D)Processed materials
E)Accessory equipment

Question 6

A ________ is a good or service for which consumers will spend time and effort gathering information on price,product attributes,and product quality.

A)shopping product
B)generic product
C)convenience product
D)specialty product
E)homogeneous product

Question 7

The ________ for a guest paying for a night's stay at a hotel is rest and sleep.

A)augmented product
B)core product
C)value-deliverable product
D)customised benefit
E)generic product

Question 8

Which of the following statements about durable goods is true?

A)Consumers purchasing durable goods typically use habitual decision making.
B)The information search is quicker for durable goods than it is for nondurable goods.
C)Durable goods are more likely to require low-involvement decisions than perishable goods.
D)Product evaluation is more likely to take place for nondurable goods than for durable goods.
E)None of the above

Question 9

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

A)Bottle of nail polish
B)Package of light bulbs
C)Detergent
D)Bag of cat food
E)Computer printer

Question 10

Marketers classify convenience products as ________.

A)specialty products,shopping products,and unsought products
B)attribute-based products and price-based products
C)core products,actual products,and augmented products
D)generic products and branded products
E)staples,impulse products,and emergency products

Question 11

The ________ for a guest paying for a night's stay at a hotel is a bed,bathroom,towels,bureau,light,and closet.

A)value-deliverable product
B)augmented product
C)actual product
D)core product
E)customised benefit

Question 12

Customers usually know a good deal about ________,are loyal to specific brands,and spend little,if any,time comparing alternatives.

A)shopping products
B)homogeneous products
C)convenience products
D)specialty products
E)commodities

Question 13

Which of the following is an example of a product?

A)A garbage can
B)An iPad mini
C)A musical performance by Coldplay
D)A haircut
E)All of the above

Question 14

Celarix.com is an internet company providing other businesses operating on the internet with help handling distribution bottlenecks.Celarix is an example of a ________.

A)specialised service
B)component service
C)tangible product
D)MRO service
E)processed product

Question 15

A ________ is typically a nondurable good or service that consumers purchase frequently with a minimum of comparison and effort.

A)homogeneous product
B)specialty product
C)generic product
D)convenience product
E)shopping product

Question 16

Camille was standing in the checkout line at her neighbourhood grocery last night when she saw a display of a new frozen yogurt.Even though it was not on her shopping list and she had already purchased ice cream,she decided she just had to have the new frozen yogurt.For Camille,the frozen yogurt was an example of a/n ________.

A)impulse product
B)attribute-based convenience good
C)emergency product
D)unsought product
E)staple

Question 17

Which of the following adjectives best describes a product classified as a good?

A)Tangible
B)Disposable
C)Heterogeneous
D)Convenient
E)Non-perishable

Question 18

Tony wanted to buy a pair of Steiner Nighthunter binoculars just like the pair he had learned about in his newest copy of Petersen's Hunting magazine.He had to visit five different sporting goods stores before he found this brand.For Tony,the Steiner Nighthunter is an example of a ________.

A)commodity
B)shopping product
C)specialty product
D)homogeneous product
E)convenience product

Question 19

MRO products are goods that businesses use for ________.

A)marketing,relationship-building,and operation
B)maintenance,research,and organisation
C)management,research,and order-processing
D)marketing,research,and organisation
E)maintenance,repair,and operation

Question 20

The ________ is the actual product such as a refrigerator plus delivery,installation,financing,and warranty.

A)potential product
B)generic product
C)augmented product
D)actual product
E)value network

Question 21

What does the term impulse product mean? Identify a challenge marketers may have regarding impulse products.

Question 22

Prototypes ________.

A)better the chances of commercial success of a product
B)help a firm to understand how customers will react to a new product
C)may be evaluated by prospective customers
D)A and B
E)A,B,and C

Question 23

Explain the three layers of a product and illustrate using an example from your own experience.

Question 24

What are maintenance,repair,and operating (MRO)products? Give an example of each.

Question 25

When marketers estimate ________,they are determining who is likely to purchase the product.

A)technical success
B)commercial success
C)idea success
D)consumer perceptual mapping
E)consumer prototyping

Question 26

Netflix,an online DVD rental company,mails out three movies at a time,with no time limit for return and no shipping fees,only a monthly subscription fee.Discuss the product concept at is applies to Netflix.

Question 27

Business customers purchase specialised services that are not part of the production of a product but are essential to the organisation's operation.

Question 28

Procter & Gamble introduced its ready-to-spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready-to-spread frosting.This illustrates ________.

A)why many companies engage in test marketing
B)how idea screening can make a product a commercial success
C)why prototypes are so important
D)the variety of sources for idea generation
E)one of the problems associated with test marketing

Question 29

Business analysis for a new product begins with ________.

A)problem recognition
B)perceptual mapping
C)a repositioning strategy
D)assessing how the new product will fit into a firm's total product mix

Question 30

Why is successful new-product introduction becoming increasingly more difficult?

A)Government regulations require all products to wait at least two years before introduction.
B)Many international companies are not engaging in product innovation.
C)New-product development costs are so low that any company with a good idea can create a new product.
D)Products become out-dated at a much faster rate than ever before.
E)All of the above

Question 31

One of the advantages of test marketing is ________.

A)the ability to evaluate a product and its marketing program before commercialisation
B)the low cost
C)the ability to keep information from falling into competitors' hands
D)the opportunity to survey prospective customers
E)All of the above

Question 32

Discuss why marketers should view products as bundles of attributes and why they need to consider the three distinct product layers when developing marketing strategies.Illustrate using an example.

Question 33

________ occurs when marketers use a variety of sources to come up new-product ideas that provide consumer benefits and are compatible with company objectives.

A)Product screening
B)Idea generation
C)Problem recognition
D)Perceptual mapping
E)A repositioning strategy

Question 34

What are marketers seeking to determine when conducting product concept testing,conducting business analysis and technical development?

Question 35

The first stage of the new-product development process is ________.

A)a business analysis
B)idea generation
C)idea screening
D)concept testing
E)problem recognition

Question 36

Discuss convenience products,the three different types and how marketing strategies would differ for each type.

Question 37

________occurs when a product is launched into the market.

A)Commercialisation
B)Product adoption
C)Product testing
D)Market modification
E)Positioning

Question 38

What are the advantages and disadvantages associated with test marketing?

Question 39

What does the term 'emergency product' mean? Give an example of an emergency product and explain why the price and perhaps the quality of this product may not be an issue at the time of purchase.

Question 40

Procter & Gamble introduced its ready-to-spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready-to-spread frosting across the whole country.General Foods was able to enter the ________ stage of the new-product development process before Procter & Gamble could.

A)concept testing
B)business analysis
C)commercialisation
D)idea generation
E)product concept development

Question 41

Discuss,with examples,the three categories of innovations and the potential effect on consumers.

Question 42

Diffusion refers to ________.

A)the methodology used for evaluating new product ideas
B)how promotion is used to support products throughout their product life cycle
C)the selection of opinion leaders to encourage product acceptance
D)the second stage of the market segmentation process
E)how the use of a product spreads throughout a population

Question 43

Consumers must engage in a great amount of learning to use a ________ because no similar product has ever been on the market.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 44

McCain's decides to develop a new microwaveable range called 'Funky Fries'.The fries are sold in single serving containers and are available in flavours such as 'Cheese and Onion','Thai Curry','Mexican Spicy' and 'Cocoa Crispers'.'Funky Fries' are an example of a ________.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 45

Pepsi-Cola's development of Wild Cherry Pepsi,a cherry-flavoured soda,is an example of a ________.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 46

With ________,two or more technologies come together to create a new system with greater benefits than the original technologies alone.

A)discontinuous innovations
B)dynamically continuous innovations
C)knockoffs
D)idea generation
E)convergence

Question 47

The third phase in developing new products is to develop a marketing strategy that can be used to introduce the product to the market place.What must marketers do during this phase?

Question 48

What are prototypes? When would an organisation develop prototypes?

Question 49

McDonald's wanted to add a pancake shaped like a muffin to its breakfast menu.The problem was in determining how a customer would add syrup to the pancake while eating and driving.Fortunately,one of the company's suppliers developed crystallised syrup that seeps through the pancake once it is heated.What phase of new-product development occurred when McDonald's met with its supplier?

Question 50

The built-in,fold-down child seats found in minivans were an example of a ________ because they required consumers to learn how to properly use the seat as well as the advantages of the seat.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 51

A ________ is a pronounced modification to an existing product that requires a modest amount of learning or change in behaviour to use it.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 52

Some potential customers,even after ________,do not go on to the final stage of product confirmation.

A)interest
B)trial
C)evaluation
D)adoption
E)awareness

Question 53

Even though most people in the original target market for electric toothbrushes already knew how to brush their teeth,consumers still had some learning to do in order to make the best use of the new brushing technique.The electric toothbrush is an example of a ________.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 54

Marketers often use teaser advertisements to generate ________,providing just enough information about a new product to make prospective consumers curious.

A)adoption
B)evaluation
C)awareness
D)interest
E)impulse purchasing

Question 55

The first step in the adoption process is ________.

A)interest
B)product evaluation
C)awareness
D)need evaluation
E)problem recognition

Question 56

To assist consumers in the ________ stage of the adoption process,marketers conduct marketing communications campaigns to ensure consumers know that the new product exists.

A)awareness
B)trial
C)evaluation
D)impulse purchase
E)adoption

Question 57

Why might a product be classified as a dynamically continuous innovation? Relate this concept to music audio equipment over the last few decades.

Question 58

Explain the term discontinuous innovation and provide an example.

Question 59

A ________ is a modification to an existing product in order to differentiate one brand from another.The consumer doesn't have to learn anything to use the new product.

A)dynamically continuous innovation
B)nonradical innovation
C)competitive innovation
D)continuous innovation
E)discontinuous innovation

Question 60

Marketers classify innovations based on their ________.

A)prices
B)degree of tangibility
C)costs to manufacture/provide
D)contribution margins
E)degree of newness

Question 61

Consumers would perceive a ceiling fan as having greater trialability than a new kind of snack food.

Question 62

Joe is usually the first amongst his friends to purchase the latest consumer electronics once they hit the shelves.Joe would be considered a/n ________.

A)early adopter
B)laggard
C)early majority adopter
D)late majority adopter
E)middle majority adopter

Question 63

Organisations are likely to adopt an innovation that ________.

A)provides a way to reduce labour costs
B)is consistent with a firm's way of doing business
C)helps them increase gross margins
D)helps them increase profits
E)All of the above

Question 64

________ is how visible a new product and its benefits are to others who might adopt it.

A)Observability
B)Compatibility
C)Relative advantage
D)Tangibility
E)Comparability

Question 65

________ are the last in the population to adopt a new product.

A)Late majority adopters
B)Shirkers
C)Dawdlers
D)Laggards
E)Slackers

Question 66

The Disney website is full of games,activities,music,and stories to appeal to children of all ages.Before a parent commits to paying the annual membership fee to gain access to the site,he or she can register for one free month of use.By accepting the free month's usage,potential adopters move into the ________ stage.

A)interest
B)confirmation
C)evaluation
D)trial
E)awareness

Question 67

Researchers have identified five characteristics that affect the rate of adoption: relative advantage,________,complexity,________ and observability.

A)key product features; intangibility
B)affordability; compatibility
C)trialability; affordability
D)compatibility; trialability
E)relative price; tangibility

Question 68

When cooking magazine Taste of Home was introduced there was already a range of cooking magazines available.Unlike the other cooking magazines that featured complicated recipes using a large number of ingredients,Taste of Home decided to feature only recipes that could be made with four ingredients or less - and the ingredients were those that most people would have on hand.Each recipe could be prepared in less than 10 minutes and cooked in less than 20 minutes.Taste of Home magazine was hoping to capitalise on its ________.

A)relative advantage
B)observability
C)complexity
D)compatibility
E)empathy rate

Question 69

________ is the extent to which a new product is consistent with existing cultural values,customs,and practices.

A)Compatibility
B)Complexity
C)Relative advantage
D)Comparability
E)Tangibility

Question 70

Which of the following statements about the adoption rates in organisations is true?

A)Firms are more likely to accept a new product if they perceive the improvement to be large in relation to the investment they will have to make.
B)Firms that accept innovation tend to have an entrepreneurial corporate culture.
C)Firms that welcome innovations are likely to be younger companies.
D)Organisations are likely to adopt an innovation that helps them increase their gross margins.
E)All of the above

Question 71

Which of the following statements about the adopter categories is true?

A)Innovators are a much larger group than laggards.
B)Early majority consumers are typically middle class and like to buy well-established products.
C)Early adopters are risk aversive.
D)Late majority consumers are typically very concerned about social acceptance.
E)Over 50 percent of the population is classified as a late majority consumer.

Question 72

Unlike innovators,early adopters ________.

A)have greater concern for social acceptance
B)are light media users
C)only adopt the product after those in the early majority
D)compose the smallest of the adopter categories
E)All of the above

Question 73

Which of the following is not identified as one of the five characteristics of innovations that affect the rate of adoption?

A)Observability
B)Tangibility
C)Relative advantage
D)Trialability
E)Compatibility

Question 74

________ is the degree to which consumers find a new product or its use difficult to understand.

A)Compatibility
B)Complexity
C)Relative advantage
D)Comparability
E)Tangibility

Question 75

Product adoption is the process by which a consumer or business customer begins to buy and use a new good,service,or an idea.

Question 76

Innovators are typically________.

A)younger than others in the population
B)better educated than other segments in the population
C)people pride themselves on being the first to try a new product
D)adventuresome
E)All of the above

Question 77

________ is the degree to which a consumer perceives that a new product provides superior benefits.

A)Compatibility
B)Complexity
C)Relative advantage
D)Comparability
E)Tangibility

Question 78

In terms of the five characteristics of innovations that affect the rate of adoption,the digital camera would most clearly have a higher degree of ________ than flavoured bottled water.

A)compatibility
B)tangibility
C)complexity
D)comparability
E)comparative advantage

Question 79

Laggards tend to be in a higher social class and more adventuresome than the other adopter categories.

Question 80

The evaluation stage for a product is longer for an impulse purchase than it is for a shopping product.