Exam 11: Developing and Managing Goods and Services

If Hewlett-Packard provides its customers with a help line for computer questions and problems, it is differentiating itself through

The major drawback to using aesthetic modifications is

A brand manager in a multiproduct firm would be responsible for

Services are usually provided through the application of ____ directed at people or objects.

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

The major drawback in using aesthetic modifications is that their value is determined subjectively.

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

Scenario 12.1 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 2008 and began national distribution in 2009. 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 12.1. In 2008, Cheetos was in which phase of new-product development?

As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process?

Dropping an unprofitable product immediately is the best strategy when

The decision to drop a product should always be a unanimous decision of the management team.

Test marketing is an extension of the product screening process.

Why are line extensions more common than new products?

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

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

A(n) ____ is the development of a product that is closely related to one or more products in the existing product line but is designed specifically to meet somewhat different needs of customers.

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. Polar management is currently in which stage of new product development?

Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees).

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

A genuinely new product¾like the iPhone once was¾offers