Exam 11: Developing and Managing Goods and Services

Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.

In what ways do perishability and intangibility affect the pricing of services?

Which of the following service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers?

Training of employees is less important for high-contact services than it is for low-contact services.

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

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

After building a prototype of his new device, Jacob 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.

Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and knowledge of the company's products. The part Flo plays in the promotion is designed to address the ____ characteristic of services.

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

Styling involves the specific design characteristics that allow a product to perform certain tasks.

Functional modifications usually require that the product be

Functional modifications make an existing product more durable.

An important question in the business analysis stage of new-product development is "Is demand strong enough to justify entering the market and will this demand endure?"

Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.

Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a particular service.

If Duke Oh, product manager at Gale Rider Boats, became aware that Seven Seas Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast U.S. region, he might want to engage in ____ to reduce the validity of the other firm's results.

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when

During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _____, which analyzes a product idea to see if it matches an organization's objectives and resources, and _____, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product.

The marketing channels for services are usually