Exam 11: Developing and Managing Goods and Services

The fact that services cannot be stored and then sold at a later date is called:

Venture team members usually come from the same functional area within a firm.

A brand manager in a multiproduct firm would be responsible for:

Because services are intangible by nature, marketers should downplay the tangible cues associated with a particular service.

The ability to customize services to match the specific needs of individual customers is an advantage to service marketers as it enables them to offer standardized packages.

One disadvantage of test marketing a new product is that:

Which of the following best illustrates functional modification?

The decision to drop a product should always be a unanimous decision of the management team.

Prudential Insurance uses "the Rock of Gibraltar " logo to symbolize stability and security to its customers. This is Prudential's attempt to help customers better understand its services by:

The management team at Tablerock Foods believes that it has come up with a delicious low-calorie dessert, but it is uncertain about the type of promotional and pricing campaigns to be used that can ensure better receptivity by consumers. In this instance, the management team should probably proceed to the stage of the new-product development process.

Scenario 11.2 Use the scenario to answer the questions. Jonathan Moore, President of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and observes that there are certain areas in which the company needs to improve. He specifically feels that Polar's product mix can be managed in a more effective way. Jonathan summons a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group reaches a consensus that the complete industrial product line of ice chests needs to be eliminated. It contemplates to do so by letting the product decline without making any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear within a week, owing to its unprofitability. While discussing these strategies, the group also uncovers several customer segments at which new products could be targeted. The managers decide to assemble a group of people from all functional areas of the company and confer them responsibilities for all aspects of the new-product development. -Refer to Scenario 11.2. Since some products are not performing well, Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be eliminated. He is suggesting a:

List and explain the six distinguishing characteristics of services.

In general, the primary difference between goods and services is determined by the:

The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence.

Logos such as The Travelers Companies' umbrella is designed to help customers overcome the of services.

During the commercialization phase of the new-product development process, plans for full-scale manufacturing and marketing are refined and settled.

If Megan Roberts is entrusted with the complete marketing responsibility of Diet Cherry 7Up, she would hold the position of manager.

How do marketers promote services?

How does high degree of customer contact affect service performance?

A group of managers has been assigned the task of developing a new product. The group is now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at the stage of the new-product development process.