Exam 11: Developing and Managing Goods and Services

Thomas is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Thomas is most likely participating in the ___ phase of the new-product development process.

Functional modifications usually require that the product be redesigned.

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

Which of the following phases of new-product development is likely the least costly for the firm?

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

Clara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked, "What level of quality are we building into the camping gear?" Based on this question, Clara and her team are most likely in the ____ phase of new-product development.

Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as

Relatively few product ideas are put into the product development stage.

Your company makes personal hygiene products for young men. Your product line includes deodorants and shaving products. You are responsible for managing the company's relationships with the major retailers in the western U.S. region. In a recent meeting with a store manager, you noticed young men selecting the company's deodorant product, then moving down the aisle to select a competitor's body wash product. As you think about it more, it makes perfect sense that a young man buying deodorant would also be interested in a body wash product. Your company currently does not make a body wash product. Based on your in-store observations, which of the following product management actions would you recommend to take advantage of this deodorant and body wash linkage?

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

The test-marketing stage

What is the primary distinction between a line extension and a product modification?

Demand-based pricing relies on information concerning peak demand times and off-peak demand times.

What should marketers do to promote the consistency and reliability of their services most effectively?

Jacob has developed a detailed description of a new product as well as an illustration, and he has asked a small sample of customers to read the product description and give feedback. With this step completed, Jacob is now examining whether this new product will fit well with the company's current product mix, whether demand is high enough to begin developing the product, and whether the product is likely to increase the firm's profitability. Jacob is most likely in the ______________ stage of the product development process.

There is no way to combat the supply-demand problem associated with the perishability of services.

Disruptive innovations involve completely new technologies.

The product deletion process is similar to the ____ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.

The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is

Brice is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Brice and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process.