Exam 11: Developing and Managing Goods and Services

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.

The main characteristic of a ____ is that customers are satisfied to the point that they use a service repeatedly over a period of time.

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

Functional modifications usually require that the product be

List and explain the six distinguishing characteristics of service products. Then discuss some of the marketing issues and problems associated with each characteristic.

The necessary interaction between service provider and customer that allows a service to be delivered is called

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

Sales personnel are an external source for new product ideas.

After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

The three major ways to modify a product include

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. Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n)

Early in the commercialization phase, marketers must make decisions about

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.

Functional modifications usually require that the product be redesigned.

Venture team members usually come from the same functional areas within the firm.

The runout approach to product deletion is used for technologically obsolete products.

Compare and contrast line extensions and product modifications.

Because of inseparability of the consumption and production of services, customers are often present when a service is produced.

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. Improving the taste of Cheetos Crunchies was a(n) ____ modification.

Venture teams work outside of established organization divisions.