Exam 11: Developing and Managing Goods and Services

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

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.

Demand-based pricing most closely relates to the ____ of services

Client-based relationships are most likely to be developed by

A complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a

What specific marketing problems are experienced by a provider of high-contact services that are not experienced by a provider of low-contact services?

Government has no control over service prices charged.

Relatively few product ideas are put into the product development stage.

Scenario 11.1 Use the following to answer the questions. Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013. About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. Refer to Scenario 11.1. Cheetos produces several cheese snack products and is considering a new Cheetos brand of crackers. This new Cheetos brand of crackers would most likely be an example of

All of the following are major steps in developing new products except

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

Scenario 11.4 Use the following to answer the questions. Kaycee Petit needed to find a new company to prepare her tax return this year. Kaycee looked in the yellow pages of the phone book, and went on the Internet to find information about any tax preparers in the area. She found the names and numbers of several accountants, as well as the popular HR Block and Jackson Hewitt. Since Kaycee had a somewhat complicated financial situation, she decided on using an accountant rather than the two popular companies. Kaycee found the websites of three of the accountants, but the other two were not on the Internet. She visited the offices of the three accounts who had websites. The first office was in a somewhat "seedy" part of town, but had a nice interior and a receptionist. The second office was in a nicer part of town, but did not have any employees other than the accountant, and had old furniture and old carpet. The third office was all around in better condition and Kaycee felt better about its accountant, so she decided on him. Refer to Scenario 11.4. The accountant who Kaycee chose to prepare her taxes will most likely require her to schedule an appointment due to the ____ characteristic of the service. If Kaycee schedules an appointment during the month of February, the accountant will  most likely use ____ when charging for the service.

Product support services are important mainly for products that are mechanical in nature.

All of the following are elements of the inseparability characteristic of services except that

Estimates of sales are an important component of business analysis.

Warranties and customer training are examples of customer services.

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.

Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ____, whereas Katie apparently based her decision on ____.

The majority of new-product projects initiated by major companies reach the commercialization stage.

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.