question

The new-product process stage of business analysis involves which two of the following?

answer

-making financial projections for a new product - specifying the marketing strategy needed to bring a new product to market

question

The new-product process stage of screening and evaluation involves

answer

determine which ideas should be eliminated from further effort

question

Which of he following are important points of view when considering a product's "newness"

answer

-newness compared with existing products -newness in legal terms -newness from the organization's perspective

question

Convenience Product

answer

Hand soap or and ATM withdrawal

question

Shopping Product

answer

Briefcase or airline tickets

question

Specialty Product

answer

Rolex watch or heart surgery

question

Unsought Product

answer

Burial insurance or thesaurus

question

When products are classified broadly based on the type of user, which two of the following are the categories?

answer

-Business products -Consumer products

question

Market testing involves exposing the actual product to whom?

answer

Prospective customers

question

Which two of the following are considered to be inventory costs of service?

answer

-costs associated with equipment needed to provide a service -paying a person to provide a service

question

intangibility

answer

a service cannot be held, touched, or seen before the purchase decision.

question

inconsistency

answer

services depend upon the people who provide them, their quality varies with each person's capability and day-to-day job performance.

question

inseparability

answer

in most cases, the consumer does not view the deliverer of the service as distinct from the service itself.

question

inventory

answer

services are often costly in that the firm must maintain the personnel and equipment necessary to provide the services at the time the consumer wants them.

question

Because services are intangible, they

answer

are much more difficult for consumers o evaluate before the purchase.

question

services can be ____ because the real people who provide them may vary in their abilities and motivations, or even their moods, resulting in differences in perceived quality.

answer

inconsistent

question

The new-product process stage of development (stage 5) involves which of the following?

answer

-manufacturing the product -ensuring the product meets the standard established by the protocol

question

These firms show a spectrum of differing costs of _______- since airlines and hospitals have very highly paid employees and expensive equipment to maintain, while hair salons do not.

answer

Inventory

question

A gap analysis focuses service providers on the difference between

answer

consumer expectations and experiences of service quality dimensions.

question

Which of the following are reasons that some companies use simulated test markets rather than test markets?

answer

-market tests are time consuming -market tests may alert competitors to a firm's plans -market tests are expensive

question

Business products can be classifies as which two of the following?

answer

-components -support products

question

concept testing may be a brief written description of the product that helps answer which of the following questions?

answer

-How would the product be used? -How does the customer perceive the product? -Who would use the product?

question

Services marketing differs from the marketing of tangible goods in all of the following ways EXCEPT which of the following?

answer

Inconvertibility

question

Which of the following are common marketing reasons for new products to fail?

answer

-poor product quality -low market attractiveness

question

One of the biggest differences between marketing a service and a product is the _____ of the purchase.

answer

intangibility

question

Product line extension

answer

threat of cannibalization

question

significant technology jump

answer

moderate risk

question

radical invention

answer

revolutionary new products

question

The screening and evaluation stage of the new-product process typically involves which two groups?

answer

-employees -consumers

question

Which two of the following are desirable characteristics when choosing a test market for a new product?

answer

-cable system that is able to deliver different advertising to different homes. -city population that is demographically representative of target market.

question

An organizations ____ and ____ laboratories are a good way to develop ideas for new products.

answer

research, development

question

In the _____ stage of the new-product process an organization defines the role of a new product in terms of the firm's overall objectives.

answer

new-product strategy development

question

What must the consumer learn about when a new product is a discontinuous innovation?

answer

-previously unencountered benefits -proper use of the product

question

Prototype

answer

a full scale operating model of a new product.

question

Concept tests in the screening and evaluation stage of the new-product process rely on written descriptions, sketches, or mock-ups rather than ____ to solicit feed back from potential consumers.

answer

actual products

question

Which of the following should be included in a protocol for a new product development?

answer

-a well-defined target market -what the product will be and do -specific customer needs, wants, and preferences

question

Which of the following are good sources of open innovation when firs look outside for new-product ideas?

answer

-inventors/entrepreneurs -universities -smaller nontraditional firms

question

Which of the following are common organizational reasons for new products to fail?

answer

-skipping stages of the development process -too much focus on speed

question

For which of the following will consumer education be most important, perhaps requiring personal selling to gain product trail?

answer

discontinuous innovation

question

Which of the following can be sources of variability in service delivery?

answer

-differences between the service provided by two barbers working in the same shop -differences in appointment scheduling at two different branches of the same barber shop -differences between service provided by the same barber at various times of the day, week, or month

question

A product that is consumed in one or a few uses is known as a(n) ____ good, while one that lasts over many uses is called a(n) _____ good.

answer

nondurable, durable

question

commercialization of grocery products can be very expensive for manufacturers because of which of the following?

answer

-slotting fees -failure fees

question

Which of the following influence a consumer's expectations of a service?

answer

-promotional activities -past experiences -word-of-mouth communications

question

Which of the following is considered a durable good?

answer

lamp

question

As consumers demand for Ford cars increases, Ford may increase its demand for paint spraying equipment, which for the latter is an example of __________.

answer

derived demand

question

Keith liked how the dry cleaner down the street washed and pressed his clothes, but he found the repeated phone calls from staff about his finished laundry annoying. He began to think of the whole place as annoying, which is a function of the __________ aspect of services.

answer

inseparability

question

When a manager at Target announced to customers, "There is no wait in checkout lanes 2 and 5," he recognized a need to manage his

answer

idle production capacity

question

Annie's Organic Shells & White Cheddar, an organic macaroni and cheese, is an example of a

answer

product item

question

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

answer

Blu-ray player

question

Research shows that __________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user.

answer

a distinctive point of difference

question

A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they

answer

can help identify the strategic role the new product might serve in the firm's portfolio.

question

Casey is the owner of a company called Piquant (which means having a pleasantly sharp taste or appetizing flavor). She was looking for a new product to go with her company's line of food condiments, so she held a series of focus groups to generate ideas from potential customers. This is an example of

answer

ideation outsourcing.

question

In the new-product development process, the __________ stage involves specifying the product features and marketing strategy along with making financial projections needed to bring it to market.

answer

business analysis

question

Capacity management is especially important for __________.

answer

services

question

Google's driverless car is an extreme example of the complexity of which step of the new-product process?

answer

development

question

Product

answer

a good, service, or idea, consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

question

good

answer

tangible attributes that a consumer's five senses can perceive

question

nondurable good

answer

an item consumed in one or a few uses (food products and fuel)

question

durable good

answer

usually lasts over many uses (appliances, cars, smartphones)

question

services

answer

intangible, activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value

question

idea

answer

is a thought that leads to a product or action

question

consumer products

answer

products purchased by the ultimate consumer

question

business products

answer

products organizations buy that assist in providing other products for resale

question

four types of consumer product:

answer

(1) convenience (2) shopping (3) specialty (4) unsought

question

convenience

answer

minimum shopping effect

question

shopping

answer

compares alternatives

question

specialty

answer

special effort

question

unsought

answer

consumers don't know about

question

Four types of consumer product differ in terms of

answer

(1) the effort the consumer spends on the decision (2) the attributes used in making the purchase decisions (3) the frequency of purchase

question

A major characteristic of business products is that their sales are often the result of ____ sales of business products, frequently result from the sales of consumer products.

answer

derived demand

question

components

answer

items that become part of the final product

question

support products

answer

are items used to assist to producing other products and services such as; Installations, Accessory Equipment, Supplies, and Industrial Services.

question

4 unique elements distinguish services from goods: (The four i's or service)

answer

(1) intangibility (2) inconsistency (3) inseparability (4) inventory

question

idle production capacity

answer

when the service provider is available but there is no demand for the service.

question

gap analysis

answer

asks consumers to assess their expectations and experiences on dimensions of service quality: reliability, tangibility, responsiveness

question

product class

answer

category offerings

question

product forms

answer

are within product classes

question

product item

answer

a specific product that has a unique brand, size, or price.

question

product line

answer

a group of products that are closely related because they are similar in terms of consumer needs and uses, market segments, sales, outlets, or prices.

question

product mix

answer

all the product lines offered by a company

question

continuous innovation

answer

consumers don't need to learn new behaviors

question

dynamically continuous innovation

answer

only minor changes in behavior are required

question

discontinuous innovation

answer

involves making the consumer learn entirely new consumption patterns to use the product

question

product line extension

answer

usually involves the least risk

question

brand extension

answer

involving putting an established brand name on a new product in an unfamiliar market

question

protocol

answer

a statement that, before product development begins, identifies: (1) a well-defined target market (2) specific customers' needs, wants, and preferences (3) what the product will be and do to satisfy consumers.

question

Marketing Reasons for New-Product Failures

answer

(1)Insignificant point of difference (2) Incomplete market and product protocol before product development starts (3)Not satisfying customer needs on critical factors (4) bad timing (5) no economical access to buyers (6) poor product quality (7) Poor execution of the marketing mix: brand name, package, price, promotion, distribution (8) too little market attractiveness

question

Organizational problems and attributes can also cause new-product disasters:

answer

-encountering "groupthink" in task force and committee meetings -avoiding the "NIH problem"

question

new-product process

answer

the seven stages an organization goes through to identify business opportunities and convert them into salable products or services.

question

new-product process

answer

1. new-product strategy development 2.idea generation 3.screening and evaluation 4.business analysis 5.development 6.marketing testing 7.commercialization

question

customer experience management (CEM)

answer

the process of managing the entire customer experience within the company

question

failure fee

answer

a penalty payment a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that failed to sell.

question

regional rollouts

answer

introduce a product sequentially into geographical area of the US to allow production levels and marketing activities to build up gradually, to minimize the risk of new-product failure.

question

parallel development

answer

cross-functional team members who control the simultaneous development of both the product and the production process stay with the product from conception to production.

question

time to market (TtM)

answer

is often vital in introducing a new product.

question

fast prototyping

answer

encouraging continuing improvement even after the initial design.

question

product life cycle

answer

the stages a new product goes through in the market place: introduction, growth, maturity, and decline.

question

branding

answer

an organization's use of a name, phrase, design, symbol, or combination of these to identify and distinguish its products.

question

brand name

answer

any word, device (design, shape, sound, or color), or combination of these used to distinguish a seller's products or services.

question

brand personality

answer

a set of human characteristics associated with a brand name.

question

brand equity

answer

the added value a brand name gives to a product beyond the functional benefits provided.

question

multiproduct branding

answer

a branding strategy in which a company uses one name for all its products in a product class

question

multibranding

answer

a branding strategy that involves giving each product a distinct name

question

seven Ps of services marketing

answer

expanding the four Ps framework to include people, physical environment, and process.

question

off-peak pricing

answer

charging different process during different seasons of the year and different times of the day or days of the week to reflect variations in demand for the service.

question

trial

answer

the initial purchase of a product by a consumer

question

primary demand

answer

the desire for the product class rather than for a specific brans, since there are few competitors with the same product.

question

selective demand

answer

the preference for a specific brand.

question

skimming

answer

a strategy to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers.

question

penetration pricing

answer

to discourage competitive entry, a company can price low

question

repeat purchasers

answer

people who tried the product, were satisfied, and bought again.

question

deletion

answer

or dropping the product from the company's product line, is the most drastic strategy.

question

harvesting

answer

is when a company retains the product but reduces marketing costs.

question

some important aspects of product life cycles are

answer

(1) their length (2) the shape of their sales curves (3) the rate at which consumers adopt products

question

generalized life cycle

answer

product life cycle sale curve

question

high-learning product

answer

is one for which significant customer education is required and there is an extended introductory period.

question

low-learning product

answer

begin immediately because little learning is required by the consumer and the benefits of purchase are readily understood

question

fashion product

answer

is a style of the times

question

fad product

answer

experiences rapid sales on introduction and then an equally rapid decline

question

innovators

answer

venturesome; higher education; use multiple information sources

question

early adopters

answer

leaders in social setting; slightly above average education

question

early majority

answer

deliberate; many informal social contact

question

late majority

answer

skeptical; below average social status

question

laggards

answer

fear of debt; neighbors and friends are information sources

question

diffusion of innovation

answer

a product diffuses or spreads, through the population

question

usage barriers

answer

the product is not compatible with existing habits

question

value barriers

answer

the products provides no incentives to change

question

risk barriers

answer

physical, economic, or social

question

psychological barriers

answer

cultural differences or image

question

brand manager

answer

manages the marketing efforts for a close-knit family of products or brands

question

product modification

answer

involves altering one of more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.

question

product building

answer

the sale of two or more separate products in one package.

question

market modification

answer

a company tries to find new customers, increase a product's use among existing customers, or create new use situations.

question

product repositioning

answer

changes the place a product occupies in a consumer's mind relative to competitive products.

question

trading up

answer

involves adding value to the product or line through additional features of higher-quality materials.

question

trading down

answer

involves reducing a product's number of features, quality, or price.

question

downsizing

answer

reducing the package content without charging package size and maintaining or increasing the package price.

question

6 criteria are mentioned most often when selecting a good brand name

answer

-the name should suggest the product benefits -the name should be memorable, distinctive, and positive -the name should fit the company or product image -the name should have no legal or regulatory restrictions -the name should be simple -the name should have favorable phonetic and semantic associations in other languages.

question

family branding or corporate branding

answer

multiproduct branding

question

product line extension

answer

the practice of using a current brand name to enter a new market segment in its product class

question

sub branding

answer

which combines a corporate of family brand with a new brand, to distinguish a part of its product line from others.

question

brand extension

answer

the practice of using a current brand name to enter a different product class

question

fighting brands

answer

their chief purpose is to confront competitors brands

question

private branding

answer

private labeling or reseller branding, when it manufactures products but sells them under the brand name of a wholesaler or retailer.

question

mixed branding

answer

where a firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market.

question

packaging

answer

component of a product refers to any container in which it is offered for sale and on which label information is conveyed

question

label

answer

is an integral part of the package and typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients.

question

shelf life

answer

the time a product can be stored

question

price

answer

charges, fees, fares, rates.

question

publicity

answer

plays a major role in the promotional strategy of nonprofit services and some professional organizations.

question

public service announcements (PSA)

answer

free and nonprofit groups tend to rely on them as the foundation of their media plans.

question

innovators on the diffusion of innovation curve are important to marketers because

answer

they are the first to adopt a new product

question

brand equity in order

answer

1- develop positive brand awareness 2- establish a brand's meaning in consumers' minds 3- elicit proper consumer responses 4- create a consumer-brand connection

question

The diffusion of innovation curve shows the time of adoption for different categories of consumers. According to the curve, how many different categories of consumers are there?

answer

5

question

innovators

answer

2.5%

question

early adopters

answer

13.5%

question

early majority

answer

34%

question

late majority

answer

34%

question

laggards

answer

16%

question

branding can include which of the following?

answer

packaging design unique symbols, like a logo a product name

question

the ____ stage of the product life cycle is characterized by a slowing of growth in total industry sales or product class revenue

answer

maturity

question

Product life cycle in order

answer

1- introduction 2- growth 3- maturity 4- decline

question

creating brand _____ begins with establishing brand awareness...

answer

equity

question

not every _____ follows the same life cycle curve: a high-learning one may stay in the ________ stage for a very long time

answer

product, introduction

question

communication

answer

nutritional and dietary information

question

functional

answer

refrigerator-compatible storage

question

perceptual

answer

graphics to convey a brand's positioning

question

The decline stage occurs when

answer

sale drop

question

A fad product's life cycle curve has a different shape that most products; it typically has which two of the following?

answer

-rapid sales at introduction -a rapid decline

question

The benefits packaging and labelling provides..

answer

communication, functional, perceptual

question

off-peak pricing helps service organizations by

answer

helping to balance consumer demand

question

The added value a brand name gives to a product beyond the function benefits provided is known as

answer

brand equity

question

An example of brand extension is

answer

Cosmopolitan magazine and cosmopolitan yogurt

question

a firm can reposition its product by changing one or more of the marketing ____ elements

answer

mix

question

The key characteristics of the growth stage of the product life cycle include which two of the following

answer

-increasing competition -rising sales

question

The label is used to do which two of the following?

answer

-to convey information to the consumer -to satisfy legal requirements

question

Disadvantages of multibranding

answer

-awareness will have to be built from scratch -advertising and promotion are typically more expensive

question

Because brands are easily recognized by consumers and because they signify certain attributes, brands

answer

help consumers make quick decisions

question

Which two of the following are most effective in stimulating initial trial for new products?

answer

-warranties and guarantees -free samples

question

Product packaging offers a variety of benefits to which of the following?

answer

-manufacturers -retailers -consumers

question

Which of the following are reasons that a company may wish to reposition its product?

answer

-to catch a rising trend -to change the value offered -to react to a competitor's position

question

Which of the following is an advantage of multibranding?

answer

the failure of another product will not affect this brand

question

Which of the following are ways to manage a product through its life cycle?

answer

-modify the product -repositioning the product -modifying the market

question

Which two options are possible for firms who have products in the decline stage of the product life cycle?

answer

-deletion -harvesting

question

Marketing attention in the maturity stage is often directed at holding market share through which two of the following?

answer

-finding new buyers -further product differentiation

question

Following the 2010 Deepwater Horizon disaster, BP paid for a series of TV advertisements promoting Gulf Coast tourism, probably helping this area to have a record-setting year. This ad campaign was an attempt to stimulate __________ demand.

answer

primary

question

Skimming or penetration pricing are appropriate pricing strategies during the __________ stage of a product's life cycle.

answer

introduction

question

Profit margins often peak as competitors enter the market and aggressive pricing strategies take hold. This happens during which stage of the product life cycle?

answer

growth

question

DVD players would most likely be in the __________ stage of the product life cycle.

answer

maturity

question

Harvesting is an option for a product in the __________ stage of its product life cycle.

answer

decline

question

An extended introduction stage of the product life cycle occurs for which type of product?

answer

high learning

question

Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle?

answer

riding boots

question

__________ begins with new-product purchases first by innovators, and then by early adopters.

answer

diffusion of innovation

question

If a customer is reluctant to try a new product because she's afraid of what her friends might think, the company is most likely facing a(n) __________ barrier.

answer

psychological

question

The Upjohn Company first targeted men for its Rogaine topical solution, a drug to restore hair growth, but later marketed this product to women. In this example, the Upjohn Company is using which of the following market modification strategies?

answer

finding new users

question

Quaker Oats makes the FDA-approved claim that oatmeal, as part of a low-saturated-fat, low-cholesterol diet, may reduce the risk of heart disease. It is primarily using which of the following product repositioning strategies for this product?

answer

catching a rising trend

question

Michelin has added a "run-flat" feature to its higher-priced tire lines so that they can travel up to 50 miles at 55 miles per hour after suffering total air loss. The marketing strategy Michelin used is called

answer

trading up

question

When selecting a brand name, it should: (1) suggest product features; (2) be memorable, distinctive and positive; (3) fit the company or product image; (4) have no legal or regulatory restrictions; (5) __________; and (6) have favorable phonetic and semantic associations in other languages.

answer

be simple and emotional

question

All products sold by the Tabasco Company use the Tabasco brand. This is an example of __________.

answer

multiproduct branding

question

Dentyne gum introduced a Split2Fit pack, which is compact package design intended to be separated into two halves to better fit into a pocket or a small purse, or two keep two halves in separate places.This is an example of which type of benefit that packaging can provide?

answer

functional benefits

question

The seven Ps of services refer to an expanded marketing mix for services that includes the four Ps (product, price, place, and promotion) as well as

answer

people, physical environment, and process.

question

Which of the following statements concerning the pricing of services is most accurate?

answer

Service pricing plays a role in balancing consumer demand for services

question

Nonprofit service organizations use them, but public service announcements (PSAs)

answer

are under the control of the medium where aired, not the organization.

question

The acronym CEM in services marketing stands for __________.

answer

customer experience management

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