Exam 11: Developing and Managing Goods and Services

A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

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

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as

The sum of all the product's physical characteristics is called product quality.

If you buy McDonald's French fries in Fort Collins, Colorado, and later buy McDonald's French fries in College Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.

When marketers at Nabisco meet to identify the types of snacks that young people want, they are engaging in which phase of new-product development?

Warranties and customer training are examples of customer services.

Machinery such as ATMs and online customer services can reduce the ____ that comes from increased contact with human employees.

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. The decision to delete the industrial product line of ice chests is an example of deleting a product through a(n) ____, while the decision to drop the thermal underwear line is an example of a(n) ____.

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

Discuss the role of new-product development in the marketing mix. Why is new-product development an important issue?

Identify and describe the three major ways to modify existing products, and give an example of each.

Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification.

Most products possess a certain degree of intangibility.

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

Which of the following is most likely to be considered a business service?

An advantage of heterogeneity is that services can be customized.

The phase-out approach to product deletion exploits any strengths left in the product.

What is commercialization, and how is it achieved?

Discuss the major approaches that marketers use to differentiate their products.