Exam 11: Developing and Managing Goods and Services

The goal of building client-based relationships is to satisfy customers so well that they become very loyal and would be unlikely to switch to competitors.

If Best Western, a leading global hotel chain, bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as services.

Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a particular service.

Conair, a manufacturer of appliances and personal care products, adds an electrical component to its curling iron that automatically switches off the curling iron when it has been idle for more than an hour. This improvement would best be classified as a(n):

A run-out approach to product deletion allows a product to decline without changing its marketing strategy.

Compare and contrast a line extension and a product modification.

Patrick is a member of a consumer market research panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are, "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the phase of the new- product development process.

The heterogeneity characteristic of services provides marketers with tremendous opportunity to:

The major drawback of using aesthetic modifications in products is:

Kara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked, "What level of quality are we building into the camping gear?" In this case, Kara and her team are most likely in the phase of the new-product development process.

Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticed a fault with one of the table pockets. Since it was a weekend, he didn't expect that it could be repaired immediately. However, when he called a Brunswick store to leave a message, the call was answered by a repair representative who assured Seth that he would come over to Seth's house for the repair service within an hour. Brunswick Billiards is most likely differentiating itself through:

The product deletion process is similar to the step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.

A sign at a doctor's office waiting room reads, "Please be courteous of others waiting with you." The doctor's office is trying to positively emphasize the aspect of services.

Which of the following statements is true of the test marketing stage of the new-product development process?

American Life utilizes portfolios with leather look covers and high-quality paper and printing for its life insurance policies in order to indicate:

A run-out approach of product deletion:

The point in time when a significant number of customers desire the same service simultaneously is known as:

Kate, the owner of K's Tanning Salon, reviews the day's appointment schedule and notices that it is completely full as it is Saturday. She wishes that some of the empty tanning beds that were vacant during the weekdays could be available presently. Kate's problem deals with the characteristic of services.

PepsiCo has developed a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?

When marketers at Nabisco met with groups of young adults to identify the types of snacks that youths prefer, they were engaging in the phase of the new-product development process.