Exam 11: Developing and Managing Goods and Services

Prudential Insurance uses "the rock" symbol to communicate stability and security to customers. This is Prudential's attempt to help customers better understand its services by

Because most services are people based, they are susceptible to heterogeneity, or variation in demand over time.

Repositioning requires changes in perception but not usually changes in product features.

A US Airways flight from Dallas to Houston was full, and the tickets were more expensive than the almost-empty US Airways flight from Chicago to Phoenix. This is an example of what kind of service pricing?

If Best Western bundles its rooms with services such as free local phone calls, cable television, wireless Internet access, and complimentary breakfast, these services are known as ____ services.

Three major ways in which marketers engage in product differentiation are

Bailey recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Bailey was trying to overcome the ____ aspect of services.

Client-based relationships are most likely to be developed by

How does the promotion of services differ from the promotion of goods?

Venture teams work outside of established organization divisions.

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on

Product managers are most useful in the development of new products.

Warby Parker was developed to challenge the dominant player in the market for eyewear. Founder Neil Blumenthal realized that a major firm, Luxottica, had an almost monopolistic hold on the eyewear and vision industry. They could therefore set high prices. He and his partners developed Warby Parker to develop less expensive glasses in-house at a fraction of the cost. Not only are Warby Parker's glasses much more affordable, but also the company donates money to a vision care nonprofit organization for every pair of glasses it sells. This allows people in developing countries access to eyewear who normally could not afford it. Warby Parker is an example of a company that has successfully engaged in disruptive innovation.

Personal trainers cannot complete their work without their clients present because of the ____ feature of services.

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

You were just hired to manage the new-product development process at a consumer products company. In your first meeting with the CEO since being hired, she recounted to you the numerous times in the past when the company launched products it thought would be successful. However, it later came to realize the products had a detrimental impact on the company's overall costs and profits mix. She wants you to revamp the company's new product development process to prevent this from happening in the future. Which of the following steps in the new-product development process should you overhaul in order to address the CEO's concerns?

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

The run-out approach to product deletion is used for technologically-obsolete products.

The three major ways to modify a product include

When service companies change high-contact services into low-contact services, the