Exam 11: Developing and Managing Goods and Services

Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by

Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the ____ phase of new-product development.

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. The new improved Cheetos Fat-Free Crunchies was a(n) ____.

Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.

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

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.

How a pair of jeans looks, regardless of the price, is an example of styling.

Scenario 11.3 Use the following to answer the questions. The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year. The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays, children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has been very popular with the professionals who stop by for a swimming workout before or after work. Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the "Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional members or charge more per member for the annual fee. Refer to Scenario 11.3. The fact that the "Y" is open from 6:00 am until 11:00 pm refers to the ____ element of its marketing mix.

Brand and product managers operate cross-functionally.

Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.

Services are highly perishable and cannot be inventoried for future use.

There is no best approach to managing products.

The dropping approach to product deletion generates a sales spurt just before removing the product from the market.

Max is a product manager at Whirlpool. He learned that one of his competitors, Kenmore, was engaging in a product test of a new dishwasher. He decided to lower prices on his Whirlpool dishwashers in Kenmore's test market area in order to _____ the test program.

Functional modifications usually require that the product be redesigned.

The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the ____ approach.

Christine and Donna work for a manufacturer of frozen pastries and are deciding how to delete a line of frozen waffles. Christine favors focusing on a core market and intensifying advertising directed at that market to try to have a temporary jump in profits. Donna, however, believes the marketing strategy should be unchanged and the product should decline without attempting to give the line new life. Christine favors a(n) ____, while Donna favors a(n) _____.

Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. In addition, Schwinn has added several new features to its bike that are attractive to individuals who work as "bike messengers" in large, urban cities. Since no other company makes a bike that has these specific attributes, Schwinn is creating

Which of the following statements is true about product support services?

Venture teams work outside of established organization divisions.