MKT 201 CH. 7 Developing and Managing Offerings

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FALSE
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Price entails how much money a customer gives up to obtain an offering
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TRUE
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The risk that there is a better idea that gets ignored because the firm has invested in the idea at hand.
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ROLLING LAUNCH
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A rolling launch might make sense if the company’s service technicians need training.
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TRUE
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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.
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TRUE
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The stage in the product life cycle when the demand and sales first increase is known as the growth stage.
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TRUE
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Not all products go through all stages of the product life cycle.
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TRUE
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Firms that manufacture cereals and snacks typically utilize mass marketing efforts.
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TRUE
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Organizations want consumers to perceive that a new offering is desirable or better than existing products.
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Investment; opportunity
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A company must balance an offering’s _____ risk against the offering’s _____ risk.
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MATURITY
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Most consumer products are in the _____ stage of their life cycle, when their buyers are repeat purchasers versus new customers.
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less costly than adaptation.
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Standardization is typically:
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PLATFORM; BRAND
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A line extension occurs when a company comes out with another model based on the same _____ and _____ as one of its other products.
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Personal value equation
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To understand if a product offering is financially feasible to justify investing in it, companies often consider the customer’s _____.
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Feature specification
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Quality function deployment is a process utilized in which step of the product development process?
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ALPHA TESTING
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_____ ensures that a product meets its specifications in a variety of environments determined by the company.
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BETA TESTING
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_____ 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.
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marketing communication plan
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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.
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Market test
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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.
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Decreasing the package size or the amount of the product in the packages to save money and keep prices from rising too much.
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Downsizing entails:
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PERSONAL SELLING
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To reach wholesalers and retailers, firms utilize _____.
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the door opens for competitors to enter the market.
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When demand is higher than supply, marketers are most concerned with the fact that
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EARLY ADOPTERS
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A price skimming strategy often attracts consumers who are _____.
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finding new uses for a product
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Modifying the target market helps a company attract different customers by:
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LEAD USER
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Customers who are good at generating new product ideas or applications of products are called _____.
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INVESTMENT RISK
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_____ 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.
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if the product fits with the image and corporate strategy.
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In the idea screening stage, companies evaluate new offerings by determining:
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IDEA SCREENING
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In which of the following stages of the new product development process does concept testing occur?
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what consumers want and need
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The feature specifications process begins with a strong understanding of:
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development
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A firm considers the product’s manufacturing process during which stage of the product development process?
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effective and less expensive
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In terms of a manufactured offering, using the same technology platform as another product can be:
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MATURITY
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The stage in the product life cycle when the market is saturated with competitors is known as the _____ stage.
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Skimming pricing strategy
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A(n) _____ is utilized to get back the money invested in creating a new product offering.
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GROWTH
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The stage in the product life cycle which attracts competitors who enter the market very quickly is known as the _____ stage.
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GROWTH
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The stage in the product life cycle when a successful product first becomes profitable is known as the _____ stage.
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PROFESSIONAL SELLING
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For more technical or expensive products such as computers or plasma televisions, many firms utilize _____.
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INTRODUCTION
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Heavy costs are associated with the _____ stage of the product life cycle.
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Educating potential customers about its value and benefits.
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Which of the following are often involved in an organization’s objectives during the introductory stage?
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INTRODUCTION
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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.
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placing the product in a limited number of distribution outlets.
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Marketing efforts associated with skimming price strategies include:
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GROWTH
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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
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MATURITY
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Modifying the product, such as changing its packaging, size, flavors, colors, or quality can also extend the product’s _____ stage.
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TRUE
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The size of a company will affect how the different stages of their new product development process are conducted.
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TRUE
answer

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

New product ideas typically move down the supply chain.
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FALSE
answer

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

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

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

Depth interviews involve gathering eight to twelve consumers and gauging their reaction to a product/service concept.
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TRUE
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The purpose of concept testing is to get early consumer feedback before investing too much money in an offering that won’t work.
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FALSE
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Financial feasibility is the degree to which the company can actually make and service the product.
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FALSE
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Quality function deployment is the process whereby a company starts with the innovation and then designs an offering.
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FALSE
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Testing is a relatively inexpensive step in the product development process.
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FALSE
answer

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

Most companies put new offering ideas through a seven-step process.
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FALSE
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The growth stage is characterized by decreasing sales, less competitors, and low profits.
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TRUE
answer

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

Divesting refers to when a company reduces investment in a product or service.
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FALSE
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The stage of the product life cycle when profits are virtually nonexistent is known as the decline stage.
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FALSE
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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.
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TRUE
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Companies introducing products and services abroad typically must have the financial resources to make a long-term commitment.
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FALSE
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A price skimming strategy is often used for products such as cereals.
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FALSE
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Firms develop strategies to extend the maturity stage of their products by modifying their target markets, their offerings, or their marketing strategies
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FALSE
answer

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

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