Question 1

Estimates of sales are an important component of business analysis.

Accepted Answer

A) True 
 B)False

Question 2

Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ____, whereas Katie apparently based her decision on ____.

Accepted Answer

A) price; product quality 
B) real product differences; perceived product image 
C) perceived product image; product quality 
D) product value; perceived product image 
E) product design; product quality 
A) price; product quality 
B) real product differences; perceived product image 
C) perceived product image; product quality 
D) product value; perceived product image 
E) product design; product quality

Question 3

Line extensions are less common than other new products because line extensions are more expensive and more risky.

Accepted Answer

A) True 
 B)False

Question 4

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process?

Accepted Answer

A) Idea generation 
B) Business analysis 
C) Commercialization 
D) Test marketing 
E) Screening 
A) Idea generation 
B) Business analysis 
C) Commercialization 
D) Test marketing 
E) Screening

Question 5

In product modification, the first issue to consider is whether

Accepted Answer

A) existing customers can perceive that a product modification has been made. 
B) the product is modifiable. 
C) quality is modified. 
D) modification will make the product more consistent with customers' desires. 
E) modification will provide greater satisfaction to the consumer. 
A) existing customers can perceive that a product modification has been made. 
B) the product is modifiable. 
C) quality is modified. 
D) modification will make the product more consistent with customers' desires. 
E) modification will provide greater satisfaction to the consumer.

Question 6

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

Accepted Answer

A) positioning. 
B) level and consistency of quality. 
C) ability to meet customer service needs. 
D) design, styling, and level of quality. 
E) design, styling, and features. 
A) positioning. 
B) level and consistency of quality. 
C) ability to meet customer service needs. 
D) design, styling, and level of quality. 
E) design, styling, and features.

Question 7

The product development stage determines the technical feasibility of producing the new product.

Accepted Answer

A) True 
 B)False

Question 8

Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticed a problem with the way one of the pockets was strung. Since it was a weekend, he didn't expect to have it repaired. However, when he called the store to leave a message, someone answered the phone. She gave Seth a number where he could call a repair representative who would come straight to Seth's house within an hour. Brunswick Billards is most likely differentiating itself through

Accepted Answer

A) support of its level of quality. 
B) product support services. 
C) a help line feature. 
D) product features. 
E) customer requests. 
A) support of its level of quality. 
B) product support services. 
C) a help line feature. 
D) product features. 
E) customer requests.

Question 9

Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Morgan is able to evaluate the ____ modifications to the sofa, but not the ____ modifications.

Accepted Answer

A) aesthetic; quality 
B) quality; aesthetic 
C) aesthetic; functional 
D) functional; quality 
E) functional; aesthetic 
A) aesthetic; quality 
B) quality; aesthetic 
C) aesthetic; functional 
D) functional; quality 
E) functional; aesthetic

Question 10

Dropping an unprofitable product immediately is the best strategy when

Accepted Answer

A) all advertising and promotional efforts have been exhausted. 
B) customers have a negative outlook on other products. 
C) losses are too great to prolong the product's life. 
D) the product's performance cannot be improved. 
E) there is low compatibility with the firm's business strategies. 
A) all advertising and promotional efforts have been exhausted. 
B) customers have a negative outlook on other products. 
C) losses are too great to prolong the product's life. 
D) the product's performance cannot be improved. 
E) there is low compatibility with the firm's business strategies.

Question 11

A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a ____ for its new variety of Doritos.

Accepted Answer

A) multi-stage introduction 
B) roll-out approach 
C) test-market expansion 
D) mass commercialization 
E) trickle-down approach 
A) multi-stage introduction 
B) roll-out approach 
C) test-market expansion 
D) mass commercialization 
E) trickle-down approach

Question 12

During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) A product modification results in a completely new product while a line extension is simply changing an old product. 
B) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. 
C) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. 
D) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension. 
E) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality. 
A) A product modification results in a completely new product while a line extension is simply changing an old product. 
B) In both cases an existing product is altered, but the alteration is more dramatic with a product modification than it is with a line extension. 
C) Line extensions are designed to better meet the needs of the existing market segment while product modifications target entirely new segments of the market. 
D) With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension. 
E) Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of changes in quality and functionality.

Question 14

Why are line extensions more common than new products?

Accepted Answer

A) They are higher risk and more expensive. 
B) They are guaranteed to succeed in the marketplace. 
C) They are less expensive and lower-risk. 
D) They require no market research. 
E) Modifications to existing products are very easy. 
A) They are higher risk and more expensive. 
B) They are guaranteed to succeed in the marketplace. 
C) They are less expensive and lower-risk. 
D) They require no market research. 
E) Modifications to existing products are very easy.

Question 15

Venture teams work outside of established organization divisions.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

Accepted Answer

A) Aesthetic 
B) Operational 
C) Benefit 
D) Functional 
E) Quality 
A) Aesthetic 
B) Operational 
C) Benefit 
D) Functional 
E) Quality

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

Quality modifications never seek to reduce product quality.

Accepted Answer

A) True 
 B)False

Question 19

Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n)

Accepted Answer

A) product manager. 
B) area manager. 
C) director of operations. 
D) market manager. 
E) sales coordinator. 
A) product manager. 
B) area manager. 
C) director of operations. 
D) market manager. 
E) sales coordinator.

Question 20

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

Accepted Answer

A) True 
 B)False

Estimates of sales are an important component of business analysis.

Line extensions are less common than other new products because line extensions are more expensive and more risky.

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process?

In product modification, the first issue to consider is whether

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

The product development stage determines the technical feasibility of producing the new product.

Dropping an unprofitable product immediately is the best strategy when

During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.

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

Why are line extensions more common than new products?

Venture teams work outside of established organization divisions.

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

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.

Quality modifications never seek to reduce product quality.

Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n)

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

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters

Exam 12: Developing and Managing Products

Estimates of sales are an important component of business analysis.

Line extensions are less common than other new products because line extensions are more expensive and more risky.

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process?

In product modification, the first issue to consider is whether

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

The product development stage determines the technical feasibility of producing the new product.

Dropping an unprofitable product immediately is the best strategy when

During the commercialization phase of new-product development, plans for full-scale manufacturing and marketing are refined and settled.

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

Why are line extensions more common than new products?

Venture teams work outside of established organization divisions.

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

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.

Quality modifications never seek to reduce product quality.

Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n)

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

An Overview of Strategic Marketing

Planning, Implementing, and Evaluating Marketing Strategies

The Marketing Environment

Social Responsibility and Ethics in Marketing

Marketing Research and Information Systems

Target Markets Segmentation and Evaluation

Consumer Buying Behavior

Business Markets and Buying Behavior

Reaching Global Markets

Digital Marketing and Social Networking

Product Concepts, Branding and Packaging

Services Marketing

Marketing Channels and Supply-Chain Management

Retailing, Direct Marketing and Wholesaling

Integrated Marketing Communications

Advertising and Public Relations

Personal Selling and Sales Promotion

Pricing Concepts

Setting Prices

Filters