Exam 11: Developing and Managing Goods and Services

If a nonsmoker dines in a restaurant that does not impose a restriction on smoking, the overall quality of service experienced by the nonsmoking customer probably declines if another customer smokes inside the restaurant. Which of the following service characteristics is illustrated by the scenario?

Ideally, test marketing should follow the stage in the new-product development process.

Training of employees is more important in low-contact services than in high-contact services.

The phase of the new-product development process when an organization determines the technical feasibility of producing a product at a cost that results in a reasonable selling price is:

In the idea generation phase of the new-product development process, sales personnel constitute an external source for new product ideas.

A supplementary service is the basic service experience or commodity that a customer expects to receive.

Relatively few product ideas are put into the product development stage of the new-product development process as this stage is frequently lengthy and expensive.

Discuss the three approaches that marketers use to differentiate their products from their competitors' products.

Functional modifications of existing products help an organization achieve and maintain a progressive image.

Which of the following phases of new-product development is likely the most cost-effective procedure?

Breakeven analysis is a tool that marketers are most likely to employ during the stage of the new-product development process.

Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the phase of the new-product development process.

Which of the following is a disadvantage of gradually introducing a new product to a market?

Which of the following service characteristics results in variability of service quality yet provides opportunity for customizing services to match the specific needs of individual customers?

Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale manufacturing and marketing of the new Genie-Vac. They are in the phase of the new-product development process.

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

In what ways do perishability and intangibility affect the pricing of services?

Brittany recently moved to a new city. She is looking for a mechanic to conduct a maintenance check and repair on her car. She visits several car dealers to assess their physical facility and also the cleanliness and grooming of the mechanics. After evaluation, she finally chooses a mechanic. Brittany is trying to overcome the aspect of services.

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coca-Cola, to name a few. These are examples of:

A venture team has the authority to execute plans for the development of products.