Exam 12: Product and Service Strategies

________ are typically bound by tradition and are the last to adopt an innovation.

Refer to the scenario below to answer the following questions. Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum. The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacturing of children's race cars and walking dolls. Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely drop after Evelyn recouped some of her costs. After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a test market in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away." -The financial savings in reduced electricity costs that customers of Ringler's solar-powered vacuum can expect to experience are part of the ________.

MRO products are goods that businesses use for ________.

________ are those products purchased for further processing or for use in conducting a business.

Products and services fall into two broad classifications based on the types of customers who purchase and use them. Which is one of these broad classes?

After concept development, a firm would engage in which stage of developing and marketing a new product?

Which type of innovation involves introducing an existing product or service to a new market?

The stage at which a new product and marketing program are introduced into realistic market settings to evaluate customer acceptance of the product is called marketing strategy.

________ is most frequently defined as the customer's overall reaction to the attributes of a product or service.

Why might ad expenditures remain high in the growth stage of the PLC?

Compare product mix width, length, and depth.

Which of the following is an example of a good?

The third level of a product is the ________ around the core benefit and actual product that offers additional consumer services and benefits that enhance ownership of the actual product.

When a company introduces a new product to an existing product line, it is using the strategy of a line extension.

New product development starts with ________.

Give three examples of specialty products.

In marketing terms, benefits define a product's ________, or what the product does for a customer.

Mabel Lu is planning to buy a new washing machine. She notices that washing machines are available in a wide range of prices, and she wants to make sure she gets the most for her money. This product is a(n) ________ product.

Refer to the scenario below to answer the following questions. Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum. The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacturing of children's race cars and walking dolls. Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely drop after Evelyn recouped some of her costs. After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a test market in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away." -When Ringler set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?

Give an example of the most basic level of product, the core benefit.