Exam 11: Developing and Managing Goods and Services

Compare and contrast a product manager and a brand manager.

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

Scenario 11.1 Use the scenario to answer the questions. Cheetos Fat-free Crunchies is a product developed through continuous innovation. Cheetos engineered a technique for making low-fat snacks that taste delicious and also remain fresh for a longer duration. It introduced Fat-free Crunchies in limited markets in 2012 and began nationwide distribution in 2013. About 18 months later, a series of ads by Cheetos' competitors was aired to counterclaim that Cheetos Crunchies actually contained 1.5 grams of fat along with some percentage of preservatives and additives. Research showed that Cheetos Crunchies was not well-received by certain groups of customers. To retain its consumer base, Cheetos reduced the remaining fat of Chrunchies to 0 grams, took out the preservatives, and improved the taste. -Refer to Scenario 11.1. Suppose that Cheetos stops its production of Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n):

By installing automated check-in kiosks in airports, airlines have increased customer convenience and facilitated faster check-in by customers. It has considerably reduced the number of personnel attending to flight passengers. This has led to a decrease in characteristic of the airline service.

Services are vulnerable to heterogeneity. Explain this issue, and discuss different ways in which heterogeneity can occur in service delivery.

Which of the following is a primary distinction between a line extension and a product modification?

How a pair of jeans looks, regardless of the price, is an example of styling.

Test marketing should be conducted when a product has been given a low probability of success.

"Is the demand strong enough to justify entering the market?" is a question that marketers ask during the phase of the new-product development process.

Because of perishability of services, service marketers cannot plan for demand that fluctuates according to day of the week, time of day, or season.

Both production and consumption of services occur at the same time.

Intangible cues are used by service marketers to provide customers with assurance of service quality.

If you buy McDonald's French fries in Fort Collins, Colorado, and later buy McDonald's French fries in College Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.

Service providers offering discounted deals to existing customers who refer new customers to them are using existing customers as a part of their service promotion strategies.

Because of inseparability of the production and consumption of services, customers are present when a service is produced.

Service marketers make promises to customers, suggesting that the customers must place some degree of trust in them. In this way, service marketers are trying to address the challenge of the service characteristic of:

A hairstylist who gives good haircuts in the morning but tends to give haircuts of lesser quality in the evening hours is affected by the challenges associated with intangibility of the haircut service.

Both the service provider and the customer must work together to provide and receive a service's full value.

Karla tells Jeff that she likes his team's idea about new shock-resistance running shoes but wants him to consider some figures regarding anticipated sales, costs, and resulting profits. To which of the following stages of the new- product development process is she asking Jeff to proceed?

The greater the degree of