question

a product may be a __ , __, or ___

answer

good, service, idea

question

a product's ___ satisfy consumer's needs

answer

attributes

question

a __ is defined by having tangible, while a ___ has intangible attributes

answer

good, service

question

a product that is consumed in 1 or a few uses is known as a __ good, while one that lasts over many uses is called a __ good

answer

nondurable, durable

question

when products are classified broadly based on the type of user, what are the 2 categories?

answer

consumer and business products

question

what are the 4 types of consumer products?

answer

convenience product, shopping product, speciality product, unsought product

question

items that the consumer purchases frequently and with a minimum of effort are __ products

answer

convenience

question

items for which the consumer compares several alternatives on criteria like price, quality, or style are ___ products

answer

shopping

question

__ products: items that the consumer makes a special effort to search out and buy

answer

specialty

question

laundry detergent would be considered to be a ___ product

answer

convenience

question

an airline ticket would be considered to be a ___ product

answer

shopping

question

___ products are characterized by derived demand

answer

business

question

for business products, ___ become part of a final product while __ are used to assist in producing other goods and services

answer

components, support products

question

buildings, tools, and supplies are ___ products for orgs

answer

support

question

___: a specific product that has an unique brand, size, or price

answer

product item

question

___: a group of product or service items that are closely related because they satisfy a class of needs, are used together, sold to the same group, distributed through the same outlets, or fall within a given price range

answer

product line

question

nike's product ___ include shoes and clothing

answer

lines

question

___ consists of all of the product lines offered by an org

answer

product mix

question

what are 4 important points of view when considering a product's "newness"?

answer

newness compared with existing products, newness in legal terms, newness from the org's perspective, newness from consumer's perspective

question

products may be considered new when they differ from existing products, but this encourages the proliferation of extra features which is known as __

answer

feature bloat

question

__ innovation (1 of 3 types of new product innovation): disrupts consumer's normal routine but doesn't require totally new learning

answer

dynamically continuous

question

__ innovation (1 of 3 types of new product innovation): requires no new learning by consumers

answer

continuous

question

__ innovation (1 of 3 types of new product innovation): requires new learning and consumption patterns by consumers

answer

discontinuous

question

___ innovation: when a toothpaste is improved by adding a whitening ingredient

answer

continuous

question

what must the consumer learn about when a new product is a ___ innovation: -previously unencountered benefits -proper use of the product

answer

discontinuous

question

the federal trade commission advises that the term "new" be limited to use with a product up to __ after it enters regular distribution

answer

6 months

question

considering the concept of product newness from an organizational point of view, match the following by risk and level of innovation: A) product line extension B) radical invention C) significant technology jump __ revolutionary new products __ threat of cannibalization __ moderate risk

answer

B, A, C

question

a ___ is a predevelopment statement that IDs a target market, customer needs, and what the product will be or do

answer

protocol

question

less than __% of new consumer package goods (CPG) exceed first-year sales for $50 million (the benchmark for a successful launch)

answer

3

question

insignificant points of difference, incomplete protocols, and bad timing are among the reasons for ___

answer

new-product failures

question

list the 7 steps of the new-product process

answer

new-product strategy development, idea generation, screening and evaluation, business analysis, development, market testing, commercialization

question

in the __ stage of the new-product process, an org defines the role of a new product in terms of the firm's overall objectives

answer

new-product strategy development

question

__ is the stage of the new-product process that results in a pool of concepts as candidates for new products

answer

idea generation

question

apple's use of the professional R&D lab IDEO to create the first computer mouse is an example of __ innovation

answer

open

question

general mills got the idea for nature valley granola bars when a mngr saw coworkers bringing granola to work in baggies, illustrating the importance of using __ in the new-product process

answer

employees

question

bc their ideas of what they want may be limited or skewed, __ should be used in the new-development process but with a focus on what the new product will actually do for them

answer

customers and suppliers

question

___: the applied art that improves the aesthetics and usefulness of mass-produced products for users

answer

industrial design

question

orgs may rely on new products coming from its own labs, often known as ___ labs

answer

research and development (R&D)

question

what is the most appropriate use of competitors in the development of new-product ideas?

answer

assessing the strengths and weaknesses of competitor's products

question

the new-product process stage of __ involves determining which ideas should be eliminated from further effort

answer

screening and evaluation

question

in the __ stage of the new-product process, a firm's employees evaluate the technical feasibility of a proposed idea

answer

screening and evaluation

question

external evaluations in the screening and evaluation stage of new-product process often involved ___, consisting of preliminary testing of a new-product idea rather than an actual product

answer

concept testing

question

in __ testing, new-product idea rather than an actual product is presented to potential consumers, often in written form, to obtain their reactions

answer

concept

question

__ in the screening and evaluation stage of the new-product process are most useful when used for minor modifications of existing products

answer

concept tests

question

___ helps an org determine early in the new-product process how the customer may perceive the product, as well as who would use it and how, before additional investment is made

answer

concept testing

question

the new-product process stage of __ involves: -making financial projections for a new product -specifying the marketing strategy needed to bring a new product to market

answer

business analysis

question

__: a full scale operating model of a new product

answer

prototype

question

during the __ stage of the new-product process, orgs should consider: -whether a new product will require new machinery to produce -has potential to cannibalize existing products -if product will require new patents

answer

business analysis

question

due to the nature of services, the __ stage of the new-product process should include consideration of capacity mngt to influence consumer demand cycles

answer

business analysis

question

for services, a complete analysis of the "service encounter" may be required to develop customer service delivery expectations in the __ stage of the new-product process

answer

development

question

safety tests, even for usage that is not as intended for a new product, are important to conduct in the __ stage of the new-product process

answer

development

question

the __ stage of the new-product process involves: -ensuring the product meets the standards established by the protocol -manufacturing the product

answer

development

question

the __ stage of the new-product process involves: -exposing actual products to prospective consumers -using realistic purchase conditions to see if consumers will buy

answer

market testing

question

2 ways that ___ is used: -to try different ways of marketing a new product -to determine whether consumer will actually buy a new product

answer

market testing

question

during test marketing, what are 3 things that may be tested for a new product?

answer

advertising, potential sales volume, pricing

question

when subway introduced a new sub in florida before launching it nationwide, it was engaging in __

answer

standard test marketing

question

the following are desirable characteristics when choosing a __ for a new product: -city pop that is demographically representative of target market -cable system that is able to deliver different ads to different homes

answer

test market

question

reasons some companies use ___ rather than test markets: -market tests are time consuming -market tests may alert competitors to a firm's plans -market tests are expensive

answer

simulated test markets

question

in ___, participants are questioned abt a new product, shown ads about it, and finally given $ to make a decision abt whether or not to buy it

answer

simulated test markets

question

for what type of product is a test market more feasible?

answer

lower cost products (not services)

question

the new-product process stage of ___ involves launching full-scale production for a new product

answer

commercialization

question

primary purpose of using ___ in the commercialization stage of the new-product process is to gradually build up production levels and marketing activities

answer

regional rollouts

question

burger king's new fries failed during __ bc they proved too complicated to get right day after day in all their restaurants (except under ideal conditions)

answer

commercialization

question

commercialization of grocery products can be very expensive for manufacturers bc of what 2 things?

answer

slotting fees, failure fees

question

parallel development and fast prototyping are helpful in improving ___, a critical factor in the success of some new products

answer

time to market

question

___: the different stages a product goes through during its existence

answer

product life cycle

question

list the 4 stages of the product life cycle

answer

1 intro, 2 growth, 3 maturity, 4 decline

question

the ___ stage of the product life cycle for a new product occurs when it is introduced to its intended target market

answer

introduction

question

the ___ stage of the product life cycle is characterized by initial losses to the firm due to its high start up costs and low levels of sales revenue

answer

introduction

question

in the ___ stage of the product life cycle, advertising and promotional spending is used to stimulate primary demand and build awareness

answer

introduction

question

__ is a marketing objective when a product is in the intro stage of the product life cycle

answer

gain awareness

question

promotional expenditures in the intro stage are often made to stimulate __ demand

answer

primary

question

during the intro stage, pricing a product high is known as ___, and pricing it low is called ___

answer

skimming, penetration

question

the ___ stage of the product life cycle is characterized by a rapid increase in sales

answer

growth

question

the key characteristics of the growth stage of the product life cycle include rising __ and increasing ___

answer

sales, competition

question

during the growth stage, part of the growth in sales is attributed to __, people who tried the product, were satisfied, and bought again

answer

repeat purchasers

question

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

answer

maturity

question

marketing attention in the ___ stage of the product life cycle is often directed at holding market share though: 1 finding new buyers 2 further product differention

answer

maturity

question

soft drinks and running shoes are at the ___ stage of the product life cycle

answer

maturity

question

when a product goes into the ___ stage of the product life cycle, the company may eventually remove it from the market

answer

decline

question

during the ___ stage of the product life cycle, a company often minimizes promotion

answer

decline

question

a company will resort to __ or __ when a product in the decline stage tends to consume a disproportionate share of resources relative to their future worth

answer

harvesting, deletion

question

___: dropping a product from the company's product line

answer

product deletion

question

___ is when a company increases its profit from declining product by simply reducing its marketing costs

answer

harvesting

question

when coke continues to make tab for fans but doesnt promote the drink, it is known as __

answer

harvesting

question

what are the 4 aspects of product life cycles?

answer

1 their length, 2 shape of their sales curves, 3 how they vary with different levels of products, 4 the rate at which consumers adopt products

question

mass communication and technological change can affect the product life cycle by ___

answer

shortening it

question

a ___ product's life cycle curve has a different shape than most products; it typically has rapid sales at intro and a rapid decline

answer

fad

question

a long intro stage in the product life cycle is a characteristic of a ___ product

answer

high-learning

question

a __ product life cycle curve is shaped like an inversed U-shape

answer

low-learning

question

product ___ pertains to variations within the product class, where each may have its own product life cycle curve

answer

form

question

cassette tapes, CDs, and digital music are examples of product __

answer

form

question

the diffusion of innovation refers to the rate at which consumers ___ a given product or service

answer

adopt

question

___ is the way a product spreads through the population

answer

diffusion of innovation

question

what 5 things are effectively used by firms to stimulate initial trial of new products?

answer

warranties, guarantees, extensive usage instructions, demos, free samples

question

list the 5 categories of product adopters (in order) based on when they adopt a new product

answer

innovators (2.5%), early adopters (13.5), early majority (34), late majority (34), laggards (16)

question

a new product that isn't compatible with existing habits and provides no incentive to change is likely to be ___ by consumers

answer

resisted

question

which group of consumers is crucial to the success of new products bc of its social influence over later adopters?

answer

early adopters

question

__ are buyers of a product or service who are the first ones to adopt it

answer

innovators

question

__ are leaders in social settings

answer

early adopters

question

___ consists of altering the product's quality, performance, or appearance

answer

product modification

question

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

answer

market modification

question

an example of ___ as a market modification strategy in the cereal category would be advertising the use of cereal as a late night snack

answer

increasing product use

question

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

answer

marketing mix

question

reasons a company may wish to __ its product: -react to a competitors position -change value offered -catch a rising trend

answer

reposition

question

example of a ___ repositioning strategy is a tire manufacturer offering more value by adding "run-flat" tech

answer

trading up

question

downsizing the content of a product's package is an example of a ___ strategy for repositioning

answer

trading down

question

brands are assets that can legally be protected through __

answer

trademarks

question

__ provides a way for a firm to differentiate its products from competitors

answer

branding

question

__: the visual branding element that stands for corporate names or trademarks

answer

logo

question

when harley davidson has ads to reinforce that the brand is masculine, rugged, it is building brand __

answer

personality

question

the value of a brand translates into __

answer

brand equity

question

from the customer's perspective, the relationship between a product's or service's benefits and its cost is called __

answer

perceived value

question

an advantage of building strong __ is that consumers are willing to pay a higher price for the product

answer

brand equity

question

steps in building __: 1 develop positive brand awareness 2 establish a brand's meaning in consumer's mind 3 elicit the proper consumer responses to a brand's ID/meaning 4 create a consumer-brand connection

answer

brand equity

question

both the functional, performance related dimension and the abstract, imagery related dimension are used to help a consumer form a __ for the brand in her mind

answer

meaning

question

__: a contractual arrangement between firms, where one firm alllows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee

answer

brand licensing

question

brand licensing is most common for __

answer

toys

question

multiproduct branding is also called __ branding or __ branding

answer

family, corporate

question

advantage of a product line __ is that the company can spend less money to develop brand awareness

answer

extension

question

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

answer

product line extension

question

some firms use __ for each of their products, in addition to the family brand, to distinguish different parts of the product line

answer

subbrands

question

___: when a brand extension adversely affects consumer perceptions abt the core brand

answer

brand dilution

question

__ can benefit firms by allowing a brand to enter a new product class, capitalizing on an existing well known quality brand in it

answer

cobranding

question

disadvantages of __ -ads and promotion are typically more expensive -awareness will have to be build from scratch

answer

multibranding

question

___ strategy: when a firm uses a distinct name for each of its products

answer

multibranding

question

chief purpose of a __ brand is to counteract competition

answer

fighting

question

__ strategy: when a firm markets products under its own name and that of a reseller bc each attracts different segments

answer

mixed branding

question

what are 3 benefits packaging and labeling provides a product?

answer

communication, functional, perceptual

question

storage and protection of product are considered which kind of benefits added by packaging and labels?

answer

functional

question

for firms competing in the global marketplace, "country of origin" ads on product is considered which kind of benefit added by packaging and labels?

answer

perceptual

question

__: a statement indicating the liability of the manufacturer in case of product deficiencies

answer

warranty

question

__ (1 of 4 types of warranties): states the bounds of coverage and noncoverage

answer

limited coverage

question

__ (1 of 4 types of warranties): assign responsibility for deficiencies to the manufacturer

answer

implied

question

__ (1 of 4 types of warranties): no limits of coverage

answer

full

question

__ (1 of 4 types of warranties): written statement of liability

answer

express

question

__: the money or other consideration (including other products or services) exchanged for the ownership or use of a product

answer

price

question

consumers' zeal for low prices combined with the ease of making price comparisons on the internet has resulted in many companies adding __ to their list prices

answer

surcharges

question

__: the relationship between a products benefits and the consumers costs

answer

value

question

at mcdonalds, you can get several items together as a meal, for less than those items separately. this is an example of __

answer

value-pricing

question

when a consumer is comparing the costs and benefits of sub items, he is developing a __

answer

reference value

question

total cost = ___

answer

fixed costs + variable costs

question

profit = ___

answer

total revenue - total cost

question

marketing mngr considers pricing __ and __ to narrow the range of choices among the variety of pricing strategies

answer

objectives, constraints

question

marketing mngrs may ID profit, market share, social responsibility, or survival as profit __

answer

objectives

question

__ and __ are 2 strategies used by firms that are pursuing a profit pricing objective

answer

current profit maximization, target return

question

which profit-oriented pricing objective is common bc the targets can be set and performance measured quickly?

answer

maximizing current profit

question

__ is when a company sets a profit goal of 20% for pretax ROI

answer

target return

question

a pricing objective of __ can have the disadvantage of leading to price cuts that reduce the revenues of other products in firm's line

answer

increasing sales

question

a firm w/ a sales objective will set prices at a level that generates more __

answer

revenues

question

the pricing objective based on the quantity of product sold by a firm is also called __

answer

unit volume

question

pricing objective known as __ can be counterproductive if its achieved by drastic price cutting that drives down profit

answer

unit volume

question

what are the 6 pricing objectives?

answer

profit, sales, market share, unit volume, survival, social responsibility

question

__: factors that limit the range of prices a firm may set

answer

pricing constraints

question

in long run, a firm's __ set a floor under its price, allowing firm to survive

answer

costs

question

list the 4 types of competitive markets from most competitive to least

answer

pure competition, monopolistic competition, oligopoly, pure monopoly

question

when only a few firms dominate a market, its known as __ competition

answer

oligopolistic

question

__: a graph representing quantity sold and price

answer

demand curve

question

the shape of most typical demand curve is a __ curve

answer

negative-sloping

question

what are the 3 factors that influence the demand curve?

answer

consumer taste, consumer income, price and availability of similar products

question

movement along a demand curve occurs bc of a change in __

answer

price

question

shift in the demand curve is the result of a change in __

answer

selling conditions

question

__: the change in total revenue that results from producing and marketing one additional unit of a product

answer

marginal revenue

question

the slope of the total revenue curve represents the __

answer

marginal revenue

question

avg revenue = __ revenue / quantity __

answer

total, sold

question

total revenue= unit __ * quantity __

answer

price, sold

question

a good marketing mngr will never set prices in the zone where marginal revenue is __

answer

negative

question

__: the % change in quantity demanded relative to a % change in price

answer

price elasticity of demand

question

according to price elasticity, when the price of iphones drop, the demand is likely to __

answer

increase

question

when a 1% decrease in price produces more than a 1% increase in quanity sold, the product or service is __

answer

elastic

question

__: the continuing, concise trade off between incremental costs against incremental revenue

answer

marginal analysis

question

break even analysis analyzes the relationship between which 2 at various levels of output?

answer

total cost, total revenue

question

__ = fixed cost / (unit price - unit variable cost)

answer

break-even point

question

the slope of the total cost curve represents the __

answer

marginal cost

question

__ (1 of 4 pricing approaches) strategy: factors underlying customer tastes and preferences are weighed most heavily

answer

demand-oriented

question

__ (1 of 4 pricing approaches) strategy: price setter stresses what "the market" is doing is determining a price

answer

competition-orientated

question

__ (1 of 4 pricing approaches) strategy: price is set by looking at the production and marketing costs, and then adding enough to cover direct expenses, overhead and profit

answer

cost-orientated

question

__ (1 of 4 pricing approaches) strategy: the price setter balances both revenues and costs to set a price

answer

profit-orientated

question

penetration, price lining, and bundle pricing are all types of which pricing approach?

answer

demand-orientated

question

in __, prices are lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices

answer

skimming pricing

question

__: when a firm is selling a line of products and prices them at a number of different specific pricing points

answer

price lining

question

in __ pricing, an org sets a price a few dollars or cents under an even number (3.99)

answer

odd-even

question

__ pricing entails: adding total units cost and adding a fixed percentage or fee to arrive at a price

answer

cost-plus

question

common forms of __ pricing: percentage of cost fixed fee

answer

cost-plus

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