Marketing Ch 10 - Flashcards

question

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

answer

no other service offered seamless integration and syncing between multiple devices

question

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

answer

gift cards

question

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

answer

the success of a business

question

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:

answer

product line

question

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:

answer

product line.

question

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

answer

product lines

question

Nike's __________ are shoes and clothing.

answer

product lines

question

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:

answer

product lines

question

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:

answer

product item.

question

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 _________.

answer

stock-keeping units The stock-keeping unit is a unique identification number that defines an item for ordering or inventory purposes.

question

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

answer

product item

question

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):

answer

stock-keeping unit.

question

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):

answer

product item.

question

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:

answer

product mix.

question

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):

answer

product mix.

question

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

answer

suitcase

question

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

answer

A daycare buying diapers

question

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

answer

Consumer goods

question

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

answer

tangibility

question

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

answer

cat food

question

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

answer

gasoline

question

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

answer

nondurable goods.

question

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?

answer

They are nondurable goods and easily substitutable so consumers need to be reminded of their existence.

question

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

answer

vehicle

question

Which of the following is considered a durable good?

answer

silverware

question

Which of the following is considered a durable good?

answer

stereo equipment

question

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

answer

iPad

question

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:

answer

purchase behaviour.

question

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

answer

services

question

Colgate toothpaste is likely:

answer

purchased by the ultimate consumer.

question

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

answer

user; product tangibility

question

Why would a cash register be considered a business good?

answer

It is a product that assists directly or indirectly in providing products for resale.

question

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 ____.

answer

product line; product mix

question

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:

answer

product mix.

question

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

answer

business goods

question

Gasoline would be considered a:

answer

Convenience goods

question

Convenience goods are:

answer

products the consumer purchases frequently and with a minimum of shopping effort.

question

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

answer

Ivory soap

question

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

answer

she will likely compare several alternatives on several criteria.

question

Shopping goods are items:

answer

for which the consumer compares several alternatives on criteria, such as price, quality, or style.

question

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.

answer

shopping good; specialty good

question

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

answer

CD player

question

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?

answer

open innovation

question

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?

answer

shopping goods

question

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.

answer

crowdsourcing Crowdsourcing involves generating insights leading to actions based on massive numbers of people's ideas.

question

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?

answer

specialty goods Specialty goods are items that a consumer makes a special effort to search out and buy.

question

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

answer

current employees

question

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?

answer

specialty goods

question

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

answer

crowdsourcing

question

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

answer

Ceramic French poodle

question

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):

answer

unsought good.

question

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):

answer

unsought good.

question

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

answer

convenience goods

question

With respect to distribution, convenience goods are available:

answer

on a widespread basis at many outlets.

question

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

answer

convenience

question

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

answer

convenience goods.

question

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

answer

shopping goods

question

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

answer

shopping goods

question

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

answer

it can often be more expensive

question

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

answer

fairly expensive, available at a large number of selective outlets.

question

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

answer

shopping goods

question

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

answer

shopping goods

question

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

answer

specialty goods

question

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

answer

specialty goods

question

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

answer

specialty goods

question

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

answer

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

question

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

answer

capacity management

question

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

answer

capacity management

question

Poor product quality is often the result of poor:

answer

testing

question

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

answer

consumer development

question

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 ____.

answer

shopping good; convenience good

question

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

answer

wasted dollars for R&D

question

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 _______.

answer

derived demand

question

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

answer

derived demand

question

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 _______.

answer

derived demand

question

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

answer

derived demand.

question

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

answer

Jet engine manufacturers experience increased sales because more tourists are taking international vacations.

question

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:

answer

derived demand.

question

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 __________.

answer

derived demand; production good

question

The two main classifications of business goods are:

answer

production and support.

question

SJC Sheet metal manufactures components of the roof and floor for most vehicles manufactured in Southern Ontario. Their clients include Ford, GM, and Toyota. SJC Sheet manufactures:

answer

production goods.

question

Items used in the manufacturing process _____ are called production goods.

answer

that become part of the final product

question

Wax for making candles would most likely be classified as which type of good?

answer

production goods

question

Legal counsel for a business would be considered a(n):

answer

support good

question

Support goods are:

answer

items used to assist in the production of other goods.

question

Support goods are items used to assist in producing other goods and services. Support goods include installations, accessory equipment, and:

answer

supplies and services.

question

Support goods include all of the following EXCEPT:

answer

raw materials.

question

Which support good is likely to be purchased using the straight rebuy decision sequence?

answer

supplies

question

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain would have purchased a(n):

answer

support good.

question

Installations:

answer

consist of buildings and fixed equipment.

question

Price considerations factor prominently in the decision-making process for which support good?

answer

installations

question

The 18-hole golf course that a subdivision developer had custom designed and built to attract more new home buyers to the subdivision would be an example of a(n):

answer

installation

question

Reviewing the reputation of support goods is most critical for which item?

answer

KPMG audit services

question

Drafting tables would best be considered which type of support goods?

answer

accessory equipment

question

Supplies:

answer

are similar to consumer convenience goods.

question

Printer paper would be classified as which type of support goods?

answer

Supplies

question

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain would have purchased a(n):

answer

service.

question

Which category can include maintenance and repair services and advisory services, such as tax or legal counsel, where the seller's reputation is critical?

answer

service.

question

Which category includes tools and office equipment and is usually purchased in small-order sizes by buyers—often through distributors?

answer

accessory equipment

question

A significant amount of capital is required to purchase ___________, the business buyer deals directly with construction companies and manufacturers through sales representatives:

answer

installations

question

Which of the following is NOT an attribute of a new product?

answer

The product is "new" from a competitor's perspective.

question

Industry Canada considers a product new only:

answer

for a period of twelve months.

question

Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to pre-cook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new:

answer

for the first twelve months that it was regularly available.

question

Mr. Clean is an antibacterial cleaning liquid for home use. The manufacturer of Mr. Clean believed the addition of Sparkling Apple-Scented Mr. Clean to the Mr. Clean product line, will be:

answer

viewed as new from the company's perspective because it is a product line extension.

question

The terms continuous innovation, dynamically continuous innovation, and discontinuous innovation, are classifications based on:

answer

degree of learning required by the consumer.

question

Gillette has updated its existing 'Close to You Dry Shaver' to allow it to be used in the shower (Close to You Wet-Dry Shaver). This new Shaver would be considered a(n)

answer

continuous innovation.

question

Which of the following products at the time of its introduction was the best example of a continuous innovation?

answer

disposable lighter

question

Which of the following products was the best example of a continuous innovation when introduced?

answer

Breathe Right nasal strips

question

The addition of Sparkling Apple-Scented, Invigorating Breeze-Scented, and Summer Citrus-Scented versions of Mr. Clean antibacterial cleaning liquid is an example of:

answer

continuous innovation.

question

When automakers first added airbags to the passenger side of the automobile it was an example of what is called a(n)

answer

continuous innovation.

question

A product which disrupts consumers' normal routines but does NOT require totally new learning is a:

answer

dynamically continuous innovation.

question

Which of the following products at the time of its introduction was the best example of a dynamically continuous innovation?

answer

compact disc player

question

The emphasis of a marketing strategy for a dynamically continuous innovation would include:

answer

advertising to explain product features and their advantages.

question

There have been pasta sauces on the market for years. These sauces have always required the pasta be pre-cooked before it is mixed with the sauces and other ingredients. The development of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an example of a:

answer

dynamically continuous innovation.

question

For someone used to downloading music online, iTunes, when it first launched, would be considered a(n):

answer

dynamically continuous innovation.

question

Which of the following products at the time of its introduction was the best example of a discontinuous innovation?

answer

iPad

question

In the early 1900s, your great-grandfather probably purchased his first automobile. After years of driving horses and buggies, your great-grandfather got in his new car and drove it into his new garage. Great-grandfather's new automobile was an example of a:

answer

discontinuous innovation.

question

Napster software allowed an individual to easily search and swap MP3 (a technique for compressing files into a size that moves faster on the Internet) musical files with other individuals. When it was introduced, it would have been an example of a:

answer

discontinuous innovation.

question

Heinz launched its EZ Squirt Ketchup in an array of unlikely hues—from green and orange to pink and teal—with kid-friendly squeeze bottles and nozzles. When it was introduced, it would have been an example of a:

answer

dynamically continuous innovation.

question

IBM's ViaVoice speech recognition software, which enabled users to speak into a computer and have the computer translate their speech to the computer screen meant that people had to learn totally new behaviours to produce word processed documents. This is an example of:

answer

discontinuous innovation.

question

E-book devices such as Kindle by Amazon changed the way we read! For example, the Kindle is a software and hardware platform that requires you to learn how to use this technology, whether you buy the Kindle reader device or have the content sent to your iPhone. The Kindle would be considered a(n):

answer

discontinuous innovation.

question

There have been pasta sauces on the market for years. These sauces have always required the pasta be pre-cooked before it is mixed with the sauces and other ingredients. The newly developed Prego Pasta Bake Sauce does not require the use of pre-cooked pasta. Prego would most likely promote this product through:

answer

advertising how the sauce differs from those currently on the market.

question

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to:

answer

educate consumers about entirely new consumption patterns through product trial and personal selling.

question

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways. Which of the following best illustrates these differences?

answer

for labour-intensive, interactive services, the actual providers (the service delivery staff) are part of the customer experience and thus are part of the innovation

question

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways. Which of the following best illustrates these differences?

answer

many services require the physical presence of the customer, which demands local decentralized production of the service

question

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways. Which of the following best illustrates these differences?

answer

new services usually do not have a tangible product to carry a brand name

question

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways. Which of the following best illustrates these differences?

answer

the new-service development process is difficult to map out for the service company and often difficult for the service customer to observe

question

Each of the following statements illustrates a reason why creating and delivering new services is much more difficult than creating new tangible products EXCEPT:

answer

Most service companies focus on creating incremental improvements.

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. This hierarchy consists of ______ categories.

answer

seven

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. CNNs 24/7 global news service and eBay's online auction services would be examples of:

answer

major service innovations

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. New uniforms for service personnel and new colour schemes for the service facilities would be examples of:

answer

style changes

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. A Canadian university or college offering a totally online MBA program where you never have to visit the campus to complete your degree would be example of:

answer

major process innovations

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. Many Canadian banks now offer their customers insurance offerings would be example of:

answer

service-line extensions

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. Many Canadian banks offering telephone or Internet banking would be example of:

answer

process-line extensions

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. A hospital that adds valet parking when you visit a family member who is being treated there would be an example of:

answer

supplementary-service innovations

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. FedEx Office offering high-speed Internet access at its locations for its customers would be an example of:

answer

supplementary-service innovations

question

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. Serving customers quicker would be an example of:

answer

basic service improvement

question

Which of the following is NOT a common reason for new-product failures?

answer

market was too biased

question

Suppose that you are a marketing consultant hired to analyze why a new reality television show failed to attract an audience in spite of the fact that there are at least a half a dozen successful reality shows on broadcast and cable television. Which of the following would you NOT think could be a reason for the shows failure?

answer

too much knowledge of consumers' television viewing preferences

question

A young musician goes on tour to promote his new album. The concerts are a huge success, but due to a problem in distribution, the musician's CDs do not arrive in the music stores until six weeks after the tour. Why did CDs sales fall far short of plans?

answer

poor execution of the marketing mix

question

Assume a new electric automobile is developed that performs much like gasoline except that it doubles a car's miles-per-gallon. However, electricity costs two and one-half times as much as gasoline. Why do you think such a new product might fail?

answer

insignificant point of difference

question

All of the following are protocol criteria for new-product development, except:

answer

a well-priced product

question

One cause for product failure is incomplete market and product definition before product development starts. This problem can be avoided if the company developing the new product has:

answer

a protocol.

question

The probability that a new product will be a success is greater if each of the following situations exists EXCEPT:

answer

it is defined after development commences.

question

Molson launched a Brazilian imported beer in Canada called A Marca Bavaria. After three years and disappointing sales, the product was removed from the market. Which of the following is NOT suggested as an organizational problem that can lead to new-product failure?

answer

Learning critical takeaway lessons from past failures.

question

All of the following are stages in the new-product development process, except:

answer

manufacturing

question

Use of a tool such as 'Six Sigma' would most commonly be found in which stage of the new-product process?

answer

new-product strategy development

question

Including lead users in your new-product development strategy can be advantageous because it can lead to:

answer

higher rates of product success

question

Cross-functional teams are most likely to be used in which stage of the new-product process?

answer

new-product strategy development

question

Six Sigma is:

answer

a highly disciplined process used to develop and deliver near-perfect products.

question

Developing a pool of concepts as candidates for new products is an example of:

answer

idea generation.

question

Perceptual maps and product positioning diagrams are most likely used in which new-product stage?

answer

commercialization

question

Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments, when a friend suggested combining spices with tea. This is an example of:

answer

idea generation.

question

Assume that, as marketing director for Mazda, you see your sales decreasing in the years since the Honda Prelude with four-wheel steering was introduced. If you hope to regain sales in this market quickly through a new-product action, the most valuable sources of ideas would be:

answer

competitive products.

question

When it comes to developing new services over new products there are some significant differences. All of the following represent the differences except:

answer

focus on the competition, not on consumers.

question

Imagine you work for a production company that has been approached by one of the networks to develop a concept for a new reality show. These seem to be the years of the reality television shows— just like we had not too long ago several new shows modeled after Friends. Where are you and your coworkers most likely to look first for a concept?

answer

by observing what's on television

question

In a presentation to Senior Management, you show a weighted point system to a number of ideas a cross-functional team generated. At what stage is this presentation most likely to occur?

answer

screening and evaluation

question

Conducting in-person taste tests and using the Internet to virtually test new concepts are most likely to occur in which stage?

answer

internal and external evaluations of new-product ideas

question

Marketing researchers could ask consumers if they would prefer to serve their children juice in easy-toopen pouches, plastic bottles with screw-on caps, or individual easy-open boxes. When the consumers tell the researcher which package concept they prefer, they are taking part in which stage of the newproduct process?

answer

concept testing

question

Which of the following statements about the screening and evaluation stage of the new-product process is true?

answer

A mock-up of a movie based on the Friends series shown to moviegoers who are asked their opinions of the movie is an example of a concept test.

question

An external evaluation that consists of preliminary testing of a new-product idea (rather than the actual product) with consumers is called:

answer

a concept test.

question

Concept testing is used at which stage in the new-product process?

answer

screening and evaluation

question

Developing the marketing strategy required to commercialize a new idea would be created in which stage?

answer

business analysis

question

All of the following activities are involved in the business analysis phase of the new-product process EXCEPT:

answer

investment of capital in human resource.

question

Factors such as total market dollars, market growth rate, gross profitability, and cash flow are a part of which stage of the new-product process?

answer

business analysis

question

IDEO is a company that:

answer

exists to develop and design new products.

question

The use of crash test dummies for a new seatbelt design is most likely to be used in which stage?

answer

development

question

Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments, when a friend suggested combining spices with tea. In the _____ stage of the new-product process, spices and tea were turned into a prototype.

answer

development

question

At Mattel, new product prototypes are child tested in special testing playgrounds during the _____ stage in the new-product process.

answer

development

question

All of the following might be used in the development phase, except

answer

marketing plan development

question

If you watched much television, you have seen the ads that show a controlled crash of a car containing crash dummies and the resultant vehicular damage. In the new-product process, this test would occur during the _____ stage.

answer

development

question

In the new-product process, the stage that involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy is called:

answer

market testing.

question

When audiences are allowed to preview actual movies such as Pretty Woman and Honey, I Shrunk the Kids before they are released to the general public, it is a part of the _____ stage of the new-product process.

answer

market testing

question

Some companies are using neuromarketing techniques to preview several versions of commercials to a group of customers, to understand which ones are most effective. The use of this technique would be commonly found in which stage?

answer

market testing

question

KFC is trying to understand whether they should launch the 'Double Down' Sandwich as a regular featured item on the menu. To understand the receptivity to the product in the first place, KFC offers the Double Down for sale:

answer

in a defined area.

question

For David Kelley, co-founder of IDEO, product design includes both _______ and _________ elements.

answer

artistic; functional

question

The market testing stage of the new-product process often involves test markets or purchase laboratories in which the variable to test is:

answer

sales.

question

Breyers introduced for sale a new line of ice cream flavours in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyers' new product was in the _____ stage of the new-product process.

answer

market testing

question

Which of the products listed below would be the best candidate for full-scale market testing?

answer

new iced coffee beverage from Snapple

question

Simulated test markets are the same as:

answer

laboratory test markets.

question

Because of the time, cost, and confidentiality problems of test markets, manufacturers often turn to:

answer

simulated test markets

question

Test marketing is:

answer

not usually done with services, expensive consumer products, or costly industrial products.

question

In the new-product process, the stage at which the product is positioned and launched in full-scale production and sales is called

answer

commercialization.

question

The risk and uncertainty of the commercialization stage of new-product development is reflected in each of the following EXCEPT:

answer

market testing ensures that commercialization will be successful.

question

Heinz paid $1M to Sobeys and Metro to have their new 'Purple EZ Squirt Ketchup' placed at the front of the condiments aisle in each of the respective stores. This payment is considered:

answer

unethical but legal

question

Heinz paid $1M to Sobeys and Metro to have their new 'Purple EZ Squirt Ketchup' placed at the front of the condiments aisle in each of the respective stores. However, sales for the Ketchup did not reach the pre-agreed upon targets. Heinz then paid another $500,000 to both Sobeys and Metro. This payment is considered a(n):

answer

failure fee

question

Loblaws required that Birds Eye pay $15,000 to get its new frozen stir-fry vegetable mix placed in the freezers of Loblaws supermarkets. This payment is called a _____ by Birds Eye.

answer

slotting fee

question

A failure fee is a penalty payment:

answer

a manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.

question

If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate the retailer for sales its valuable shelf space never made. What is this type of payment called?

answer

a failure fee

question

The 'Lean Startup' preaches constant iteration of products. This process can be referred to as:

answer

fast prototyping

question

A new beverage by Snapple is currently being sold only in Western Canada. Over the next year, Snapple plans to introduce the beverage sequentially into Canada from west to east. This is called a:

answer

regional rollout.

question

Parallel development is the simultaneous development of both the _____ processes.

answer

product and production

question

Time to market has been found to be most critical in which industry?

answer

high-tech products

question

One of the reasons that Ionator is unique is that:

answer

does not have a health-related warning label

question

The Ionator would be classified as what type of innovation?

answer

dynamically continuous innovation

question

What is the likely marketing strategy that management of Ionator would implement?

answer

an advertisement providing a side-by-side comparison of their product versus the most commonly used cleaner

question

When the University of Guelph decided to offer a totally online MBA program where you never have to visit campus to complete your degree, this would be classified as what type of service innovation?

answer

major process innovation

question

When CIBC Canada decided to offer telephone and Internet banking, this would be classified as what type of service innovation?

answer

process-line extensions

question

All of the following were challenges that Activeion faced, except:

answer

defining "chemical-free cleaning solution"

question

What is the limitation behind doing virtual reality market testing?

answer

It is not the real thing.

question

Walt Disney Imagineering, through its Epcot Innoventions Pavilion, is developing virtual reality application for its guests to enjoy and get feedback on products. When it comes to developing new products this would be an example of:

answer

virtual reality test marketing

question

Gatorade commands about ________ of the sports beverage market in North America.

answer

82 percent

question

Today, Gatorade is sold in more than __________ countries in North America, Europe, Latin America, the Middle East, Africa, Asia, and Australia.

answer

90

question

Brand development has spurred Gatorade's success. The Gatorade Performance Series features each of the following EXCEPT:

answer

Gatorade Energy Popsicles

question

Gatorade Xtremo with its exotic blend of flavours and bilingual label was introduced in 2002 having been developed for the:

answer

Latino market

question

Despite have multiple products and product lines, Gatorade's success has been largely driven by:

answer

excellent brand management

question

A new start-up recently finished prototyping their virtual reality glasses, and they are now available at select retailers across the country. What stage of the product life cycle are these glasses in?

answer

introduction

question

Lack of profit in the introductory stage of the product life cycle is very often the result of:

answer

large investment costs in product development.

question

A new cleaning company offers a free trial to all consumers who are willing to try their new counter-top cleaning solution. If customers do not like the product, they will get their purchase price refunded. This marketing activity is likely found in which stage of the product life cycle?

answer

introduction

question

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades. The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that we would watch the first episode. Which of the following statements about televised game shows is true?

answer

Who Wants to Be a Millionaire was in the introduction stage of the product life cycle of televised nighttime game shows when it premiered

question

A product in the introduction stage of the product life cycle should have which of the following marketing objectives?

answer

to gain awareness and stimulate trial

question

One of the newest types of television shows is the category called reality shows. According to the product life cycle, what was the objective of the marketers of these reality shows when they were in the introduction stage of the product life cycle?

answer

to gain awareness and stimulate trial

question

Gillette spent $35 million in advertising to introduce the Sensor razor to consumers. The main reason such expenditures are often made is to stimulate or increase desire for the product class, rather than for a specific brand, when there are no competitors with the same product, is because of:

answer

growing primary demand

question

Scientists have discovered a new medical treatment but before they can market it, physicians and patients must be aware of its existence. In other words, its manufacturer must create _____ demand.

answer

primary

question

Although the Chevy Volt is an electric car, during Chevy's advertisements they stress the importance of "Going Electric" and "Going Green", without explicitly advertising their new vehicle. The purpose of these advertisements is to stimulate ____________ demand for an entire product class, rather than for a specific brand

answer

primary

question

The popular "Got Milk" advertising campaign was sponsored by the National Milk Board to encourage more people to drink milk. This ad campaign stimulated _____ demand.

answer

primary

question

Promotional expenditures at the introduction stage of the product life cycle are spent on:

answer

creating primary demand

question

A computer manufacturer runs a print ad that has a 'them versus us' feel. They place their two products side-by-side, while highlighting the advantages of theirs versus the competition. The purpose of this is to drive ________ demand for their product.

answer

selective

question

As competitors introduce their own products, and the product progresses along its life cycle, company attention is focused on creating _____ demand, or demand for a specific brand.

answer

selective

question

For years when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland cranberry juice came on the market claiming that it was superior to the Ocean Spray brand. Northland was creating _____ demand for its cranberry products.

answer

selective

question

During the introduction stage of the product life cycle, the place element of the marketing mix is highly involved with:

answer

gaining distribution outlets.

question

The music industry has changed dramatically over the years. In the 1970s, consumers purchased 8-track tapes. In the 1980s, cassette tape players caused the decline of 8-track tape players. In fact, today consumers would experience difficulty in purchasing a new artist on 8-track tape. Now in the 2000s, MP3 players have become very popular and are being purchased by music lovers of every age and background. As sales of MP3 players continue to grow at an increasing rate, sales of CD players are weakening, the profits are declining, and the product may face a fate similar to that of 8-track tape players. Based upon this information, you can correctly conclude that CD players are in the ____ stage, and MP3 players are in the _____ stage of the product life cycle.

answer

decline; growth

question

When Apple launches a new iPhone version, the non-subsidized price (as in the price if you buy direct, without a three-year contract), is often $799 or $899, while older versions decrease in price. This initial high price is referred to as:

answer

skimming pricing

question

INGenius ATG introduced the microware oven-sized battery recycler in 1999. It was intended for the business market. Companies could buy the recycler and use it to restore alkaline batteries that are not normally recharged. The recycling does not let a battery live forever; but it does give it a charge of about 80 percent of the energy it originally had. Depending on the size of the battery, the recycler can hold up to 96 batteries. It takes 13 hours to recharge any battery. The recycler was introduced at $3,000. When you consider that a pair of alkaline batteries can be purchased for $2, you should suspect that INGenius ATG was using a(n) _____ strategy.

answer

skimming pricing

question

A company follows a skimming strategy as part of introducing a new product to:

answer

help recover costs of development and to capitalize on the price insensitivity of early buyers.

question

When Texas Instruments (TI) introduced its pocket calculator it was a tremendous product innovation, and TI set the mail order price at $495. What is the name of the pricing strategy Texas Instruments used?

answer

skimming

question

A new cellphone service provider enters the Canadian market place with "Unlimited Everything" (text, data, voice, long distance) at $10 a month plans. This pricing strategy is referred to as:

answer

penetration pricing.

question

Consumers who are frequently on the Internet more than likely use either Internet Explorer or Firefox as their web browser. There is another option called Opera, which is faster and highly customizable. Opera was initially offered on the market for $29 and this includes tech support. It was hoped that this low price would build the volume of Opera users quickly. Opera used a(n) _____ strategy.

answer

penetration pricing

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