Exam 11: Developing and Managing Goods and Services

Which of the following is a way that a restaurant can address the issues of perishability of services?

What is concept testing, and why is it important?

New products are classified solely as innovations that have never been sold by any organization.

Scenario 11.2 Use the following to answer the questions. Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear, however this product is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. Refer to Scenario 11.2. Because some products are not doing 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 discontinued. He is suggesting a

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)

Because of service perishability, it is difficult to price services in a manner that smooths fluctuations in demand.

Carlos is speaking to his brother about the interaction he had today with one of his clients.  Since he is referring to his customer as a client, Carlos is most likely a(n)___.

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

When Jeep Wrangler produces the new year's model vehicle, they discontinue production of last year's. However, when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a(an) _____ while Apple's is an example of a(an)______.

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

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

How can a service marketer smooth the fluctuations in demand from times of peak demand to times of off-peak demand?

Saresh owns the Change-ezz, a salon specializing in the unique hair needs of minority populations. Recently, Saresh has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Saresh's problem illustrates which of the following unique features of service?

Maria asks Glenda what housecleaning service she would recommend in Oakview. Glenda responds that Pristine Cleaning is great if you can be assured that Janice will be the person assigned to your house. Glenda's recommendation addresses which of the following service features?

Training of employees is less important for high-contact services than it is for low-contact services.

______________ refers to how a product is conceived, planned and produced.

The run-out approach to product deletion is used for technologically obsolete products.

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

Test marketing is used by companies of all sizes, primarily because of the perceived risk of product failure on the open market and the associated consequences.

Quality modifications are changes that relate to a product's