Exam 12: Developing and Managing Products

After a company has created a prototype during the product development stage, its performance, or ____ must be tested.

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.

Concept testing gives reliable feedback, but at a relatively high cost.

A group of managers has been assigned the task of developing a new product. They are 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 what stage of the new-product development process?

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

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

When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ____ phase of the new-product development process.

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through

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.

Test marketing is a sample launching of the entire marketing mix.

Quality modifications never seek to reduce product quality.

Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development.

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 ability of a product to provide the same level of quality over time is called

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

The major drawback to using aesthetic modifications is

Concerns about cannibalization of current product sales must be addressed in the ____ phase of the new-product development process.

____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important characteristics of quality for business markets.

Scenario 12.2 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 12.2. 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