Question 1

Price entails how much money a customer gives up to obtain an offering

Accepted Answer

FALSE

Question 2

The risk that there is a better idea that gets ignored because the firm has invested in the idea at hand.

Accepted Answer

TRUE

Question 3

A rolling launch might make sense if the company\'s service technicians need training.

Accepted Answer

ROLLING LAUNCH

Question 4

A skimming price strategy involves setting a high initial price for a product, to more quickly recoup the investment related to its development and marketing.

Accepted Answer

TRUE

Question 5

The stage in the product life cycle when the demand and sales first increase is known as the growth stage.

Accepted Answer

TRUE

Question 6

Not all products go through all stages of the product life cycle.

Accepted Answer

TRUE

Question 7

Firms that manufacture cereals and snacks typically utilize mass marketing efforts.

Accepted Answer

TRUE

Question 8

Organizations want consumers to perceive that a new offering is desirable or better than existing products.

Accepted Answer

TRUE

Question 9

A company must balance an offering\'s _____ risk against the offering\'s _____ risk.

Accepted Answer

Investment; opportunity

Question 10

Most consumer products are in the _____ stage of their life cycle, when their buyers are repeat purchasers versus new customers.

Accepted Answer

MATURITY

Question 11

Standardization is typically:

Accepted Answer

less costly than adaptation.

Question 12

A line extension occurs when a company comes out with another model based on the same _____ and _____ as one of its other products.

Accepted Answer

PLATFORM; BRAND

Question 13

To understand if a product offering is financially feasible to justify investing in it, companies often consider the customer\'s _____.

Accepted Answer

Personal value equation

Question 14

Quality function deployment is a process utilized in which step of the product development process?

Accepted Answer

Feature specification

Question 15

_____ ensures that a product meets its specifications in a variety of environments determined by the company.

Accepted Answer

ALPHA TESTING

Question 16

_____ not only tests whether the offering works as advertised, but it also tests the offering\'s delivery mechanisms, service processes, and other aspects of marketing the product.

Accepted Answer

BETA TESTING

Question 17

While Mark is performing beta tests on his company\'s new product, the _____ is being developed and tested that will be used to launch the product.

Accepted Answer

marketing communication plan

Question 18

A company may induct a(n) _____ to ensure that the launch of a new product reaches buyers, gets positive feedback, and generates sales of the product or service.

Accepted Answer

Market test

Question 19

Downsizing entails:

Accepted Answer

Decreasing the package size or the amount of the product in the packages to save money and keep prices from rising too much.

Question 20

To reach wholesalers and retailers, firms utilize _____.

Accepted Answer

PERSONAL SELLING

Question 21

When demand is higher than supply, marketers are most concerned with the fact that

Accepted Answer

the door opens for competitors to enter the market.

Question 22

A price skimming strategy often attracts consumers who are _____.

Accepted Answer

EARLY ADOPTERS

Question 23

Modifying the target market helps a company attract different customers by:

Accepted Answer

finding new uses for a product

Question 24

Customers who are good at generating new product ideas or applications of products are called _____.

Accepted Answer

LEAD USER

Question 25

_____ refers to the possibility that the company will fail to earn the appropriate return on the money and effort it puts into the new product.

Accepted Answer

INVESTMENT RISK

Question 26

In the idea screening stage, companies evaluate new offerings by determining:

Accepted Answer

if the product fits with the image and corporate strategy.

Question 27

In which of the following stages of the new product development process does concept testing occur?

Accepted Answer

IDEA SCREENING

Question 28

The feature specifications process begins with a strong understanding of:

Accepted Answer

what consumers want and need

Question 29

A firm considers the product\'s manufacturing process during which stage of the product development process?

Accepted Answer

development

Question 30

In terms of a manufactured offering, using the same technology platform as another product can be:

Accepted Answer

effective and less expensive

Question 31

The stage in the product life cycle when the market is saturated with competitors is known as the _____ stage.

Accepted Answer

MATURITY

Question 32

A(n) _____ is utilized to get back the money invested in creating a new product offering.

Accepted Answer

Skimming pricing strategy

Question 33

The stage in the product life cycle which attracts competitors who enter the market very quickly is known as the _____ stage.

Accepted Answer

GROWTH

Question 34

The stage in the product life cycle when a successful product first becomes profitable is known as the _____ stage.

Accepted Answer

GROWTH

Question 35

For more technical or expensive products such as computers or plasma televisions, many firms utilize _____.

Accepted Answer

PROFESSIONAL SELLING

Question 36

Heavy costs are associated with the _____ stage of the product life cycle.

Accepted Answer

INTRODUCTION

Question 37

Which of the following are often involved in an organization\'s objectives during the introductory stage?

Accepted Answer

Educating potential customers about its value and benefits.

Question 38

The stage in the product life cycle when an organization must have enough distribution outlets to get the product to the customers is known as the _____ stage.

Accepted Answer

INTRODUCTION

Question 39

Marketing efforts associated with skimming price strategies include:

Accepted Answer

placing the product in a limited number of distribution outlets.

Question 40

The stage in the product life cycle when promotions focus on the specific benefits the product offers and its value relative to competitive offerings is known as the _____ stage

Accepted Answer

GROWTH

Question 41

Modifying the product, such as changing its packaging, size, flavors, colors, or quality can also extend the product\'s _____ stage.

Accepted Answer

MATURITY

Question 42

The size of a company will affect how the different stages of their new product development process are conducted.

Accepted Answer

TRUE

Question 43

In B2B markets, customers are typically a large source of new product ideas.

Accepted Answer

TRUE

Question 44

New product ideas typically move down the supply chain.

Accepted Answer

FALSE

Question 45

Idea generation is typically the most expensive step in the process of developing new offerings.

Accepted Answer

FALSE

Question 46

The purpose of idea screening is to try to avoid mistakes early in the development process

Accepted Answer

TRUE

Question 47

Focus groups are conducted after the testing stage of the new offerings development process.

Accepted Answer

FALSE

Question 48

Depth interviews involve gathering eight to twelve consumers and gauging their reaction to a product/service concept.

Accepted Answer

FALSE

Question 49

The purpose of concept testing is to get early consumer feedback before investing too much money in an offering that won\'t work.

Accepted Answer

TRUE

Question 50

Financial feasibility is the degree to which the company can actually make and service the product.

Accepted Answer

FALSE

Question 51

Quality function deployment is the process whereby a company starts with the innovation and then designs an offering.

Accepted Answer

FALSE

Question 52

Testing is a relatively inexpensive step in the product development process.

Accepted Answer

FALSE

Question 53

Milestones utilized by companies to evaluate product performance are typically the same within an industry.

Accepted Answer

FALSE

Question 54

Most companies put new offering ideas through a seven-step process.

Accepted Answer

TRUE

Question 55

The growth stage is characterized by decreasing sales, less competitors, and low profits.

Accepted Answer

FALSE

Question 56

A company must decide whether to keep, modify, or drop a product in the decline stage.

Accepted Answer

TRUE

Question 57

Divesting refers to when a company reduces investment in a product or service.

Accepted Answer

FALSE

Question 58

The stage of the product life cycle when profits are virtually nonexistent is known as the decline stage.

Accepted Answer

FALSE

Question 59

The product life cycle is the exclusive tool used by marketers to help them manage the stages of a product\'s acceptance and success in the marketplace.

Accepted Answer

FALSE

Question 60

Companies introducing products and services abroad typically must have the financial resources to make a long-term commitment.

Accepted Answer

TRUE

Question 61

A price skimming strategy is often used for products such as cereals.

Accepted Answer

FALSE

Question 62

Firms develop strategies to extend the maturity stage of their products by modifying their target markets, their offerings, or their marketing strategies

Accepted Answer

FALSE

Question 63

In a penetration pricing strategy, the high price entailed must be consistent with the nature of the product as well as the other marketing strategies being used to promote it

Accepted Answer

FALSE

Question 64

The price of the product itself typically goes down during the growth stage.

Accepted Answer

FALSE

MKT 201 CH. 7 Developing and Managing Offerings – Flashcards

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