Question 1

Which of the following statements regarding "goods" is most accurate?

Accepted Answer

A) Nondurable goods would rely more on advertising than durable goods. 
B) Durable goods would benefit more on advertising than nondurable goods. 
C) There is little if any difference between marketing actions between durable and nondurable goods. 
D) Nondurable goods would rely more on personal selling than durable goods. 
E) The durable and nondurable classification applies to services as well as to products. 
A) Nondurable goods would rely more on advertising than durable goods. 
B) Durable goods would benefit more on advertising than nondurable goods. 
C) There is little if any difference between marketing actions between durable and nondurable goods. 
D) Nondurable goods would rely more on personal selling than durable goods. 
E) The durable and nondurable classification applies to services as well as to products.

Question 2

Since its launch,Netflix has changed its business model in order to

Accepted Answer

A) compete with Blockbuster's retail store expansion. 
B) respond to changing consumer needs and the evolution of new technologies. 
C) expand its focus from entertainment to movie collectibles and memorabilia. 
D) avoid head-to-head competition with satellite television providers,which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix. 
E) begin preparations to withdraw from its traditional method of mail delivery,which takes 2-3 business days,and introduce next-day delivery through FedEx. 
A) compete with Blockbuster's retail store expansion. 
B) respond to changing consumer needs and the evolution of new technologies. 
C) expand its focus from entertainment to movie collectibles and memorabilia. 
D) avoid head-to-head competition with satellite television providers,which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix. 
E) begin preparations to withdraw from its traditional method of mail delivery,which takes 2-3 business days,and introduce next-day delivery through FedEx.

Question 3

One reason new products fail is that although most major corporations use a formal decision making process,sometimes they fail to critically evaluate the progress along the way.This is why many firms have a __________ to ensure that problems are corrected before proceeding to the next stage.

Accepted Answer

A) written protocol 
B) Stage-Gate® process 
C) cross-functional team 
D) prototype test 
E) test market 
A) written protocol 
B) Stage-Gate® process 
C) cross-functional team 
D) prototype test 
E) test market

Question 4

A 3M researcher worked with university students to develop the Post-it® Flag Highlighter.His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives.At which stage of the new-product process was this product?

Accepted Answer

A) idea generation 
B) screening and evaluation 
C) business analysis 
D) new-product strategy development 
E) concept testing 
A) idea generation 
B) screening and evaluation 
C) business analysis 
D) new-product strategy development 
E) concept testing

Question 5

One tool available for services when dealing with capacity management is to use __________ to charge different prices during different times of the day or the week to help match the supply and demand for their services.

Accepted Answer

A) variable hours of operation-opening or closing a store at different times 
B) sales promotion incentives such as coupons 
C) off-peak pricing 
D) build-to-order service delivery systems 
E) rationing 
A) variable hours of operation-opening or closing a store at different times 
B) sales promotion incentives such as coupons 
C) off-peak pricing 
D) build-to-order service delivery systems 
E) rationing

Question 6

For the past several years,Fortune rated this company as the world's most admired company and Bloomberg Businessweek perennially rates it as the most innovative company in the world.This firm is

Accepted Answer

A) IBM 
B) Microsoft 
C) 3M 
D) Kodak 
E) Apple 
A) IBM 
B) Microsoft 
C) 3M 
D) Kodak 
E) Apple

Question 7

Burberry makes fine raincoats,clothing,and other items,some that feature the company's distinctive plaids.Originally found only in Great Britain,Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality.Burberry is selling which classification of consumer product?

Accepted Answer

A) convenience product 
B) shopping product 
C) discretionary product 
D) unsought product 
E) specialty product 
A) convenience product 
B) shopping product 
C) discretionary product 
D) unsought product 
E) specialty product

Question 8

Which of the following BEST illustrates the concept of derived demand?

Accepted Answer

A) The number of retail stores in a downtown area decreases even though demand for retail goods increases. 
B) An increase in the number of new,single-family homes results from a spurt in the gross national product. 
C) A Chinese plastics company increases its output because of its customers' higher toy exports to the United States. 
D) A heat wave results in an increased demand for air conditioners. 
E) Honda reducing its car prices causes GM to do the same. 
A) The number of retail stores in a downtown area decreases even though demand for retail goods increases. 
B) An increase in the number of new,single-family homes results from a spurt in the gross national product. 
C) A Chinese plastics company increases its output because of its customers' higher toy exports to the United States. 
D) A heat wave results in an increased demand for air conditioners. 
E) Honda reducing its car prices causes GM to do the same.

Question 9

A durable good is defined as a(n)

Accepted Answer

A) item consumed in one or a few uses. 
B) item that usually lasts over an extended number of uses. 
C) item that lasts at least one year without becoming obsolete. 
D) product purchased only for the use of ultimate consumers. 
E) product used in the production of other products. 
A) item consumed in one or a few uses. 
B) item that usually lasts over an extended number of uses. 
C) item that lasts at least one year without becoming obsolete. 
D) product purchased only for the use of ultimate consumers. 
E) product used in the production of other products.

Question 10

A product can be classified as "new" if it __________ from existing products.

Accepted Answer

A) is functionally different 
B) is different in color 
C) is different in its packaging 
D) is different in price 
E) requires a different distribution channel 
A) is functionally different 
B) is different in color 
C) is different in its packaging 
D) is different in price 
E) requires a different distribution channel

Question 11

All of the following actions occur during the business analysis stage of the new-product process EXCEPT:

Accepted Answer

A) using capacity management to find ways to match the availability of the service offering to when it is needed. 
B) assessing the marketing and product synergies related to the company's existing operations. 
C) turning the idea on paper into a prototype. 
D) determining whether the new product can be protected with a patent or copyright. 
E) assessing whether the proposed new product fits with the company's mission and objectives. 
A) using capacity management to find ways to match the availability of the service offering to when it is needed. 
B) assessing the marketing and product synergies related to the company's existing operations. 
C) turning the idea on paper into a prototype. 
D) determining whether the new product can be protected with a patent or copyright. 
E) assessing whether the proposed new product fits with the company's mission and objectives.

Question 12

Which of the following statements about test marketing is most accurate?

Accepted Answer

A) Test marketing is especially important for new services. 
B) Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results. 
C) Test marketing is better suited to relatively inexpensive new consumer goods than for new services. 
D) Test marketing is especially important for new,expensive industrial products. 
E) Standard test markets are the least expensive and fastest type. 
A) Test marketing is especially important for new services. 
B) Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results. 
C) Test marketing is better suited to relatively inexpensive new consumer goods than for new services. 
D) Test marketing is especially important for new,expensive industrial products. 
E) Standard test markets are the least expensive and fastest type.

Question 13

Products that usually last over many uses,such as cars and appliances,are referred to as

Accepted Answer

A) endurable goods. 
B) nondisposable goods. 
C) imperishable goods. 
D) reliable products. 
E) durable goods. 
A) endurable goods. 
B) nondisposable goods. 
C) imperishable goods. 
D) reliable products. 
E) durable goods.

Question 14

Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors had offered their new MP3 players.Zune sales were very disappointing and Microsoft eventually killed the product.According to the textbook,the primary reason for the Zune's failure was due in large part to

Accepted Answer

A) bad timing. 
B) not satisfying customer needs on critical factors. 
C) poor product quality. 
D) an insignificant point of difference. 
E) incomplete market and product protocol. 
A) bad timing. 
B) not satisfying customer needs on critical factors. 
C) poor product quality. 
D) an insignificant point of difference. 
E) incomplete market and product protocol.

Question 15

In terms of promotion,which of the following type of product would stress price,availability,and awareness?

Accepted Answer

A) shopping 
B) convenience 
C) specialty 
D) unsought 
E) supply 
A) shopping 
B) convenience 
C) specialty 
D) unsought 
E) supply

Question 16

Which of the following is the BEST example of a convenience product?

Accepted Answer

A) Kindle Fire 
B) Lexus LS 460 luxury automobile 
C) flight on United Airlines 
D) Roget's Thesaurus 
E) Crest toothpaste 
A) Kindle Fire 
B) Lexus LS 460 luxury automobile 
C) flight on United Airlines 
D) Roget's Thesaurus 
E) Crest toothpaste

Question 17

What categories of products are classified as business support products? Give an example of each category.

Accepted Answer

Business support products include instal

Question 18

Which of the following statements regarding goods is most accurate?

Accepted Answer

A) In order to be classified as a good,an item must appeal to all five senses. 
B) Music is not considered a good because it only involves a single sense-hearing. 
C) Some goods also have intangible attributes. 
D) To market a good that contains visual attributes,you cannot use an auditory medium. 
E) The aroma of chocolate chip cookies is considered an idea because it affects one's senses. 
A) In order to be classified as a good,an item must appeal to all five senses. 
B) Music is not considered a good because it only involves a single sense-hearing. 
C) Some goods also have intangible attributes. 
D) To market a good that contains visual attributes,you cannot use an auditory medium. 
E) The aroma of chocolate chip cookies is considered an idea because it affects one's senses.

Question 19

Advertising is important for products such as Butterfinger candy bars and Dasani bottled water that are purchased frequently and at relatively low cost.Also,wide distribution in retail outlets is essential.Why?

Accepted Answer

A) They are highly sought after goods that one purchases from wholesalers. 
B) They are unsought products,so advertising promotes consumers' impulse purchases. 
C) They are nondurable goods and easily substitutable,so consumers need to be reminded of their existence. 
D) They are shopping products and can easily go out of stock. 
E) They are semidurable goods,so advertising helps to maintain steady demand. 
A) They are highly sought after goods that one purchases from wholesalers. 
B) They are unsought products,so advertising promotes consumers' impulse purchases. 
C) They are nondurable goods and easily substitutable,so consumers need to be reminded of their existence. 
D) They are shopping products and can easily go out of stock. 
E) They are semidurable goods,so advertising helps to maintain steady demand.

Question 20

Speed or __________ is often vital in introducing a new product.

Accepted Answer

A) perpendicular development 
B) time to market 
C) red tape cutting 
D) fast concepting 
E) delivery expediting 
A) perpendicular development 
B) time to market 
C) red tape cutting 
D) fast concepting 
E) delivery expediting

Exam 10: Developing New Products and Services

Which of the following statements regarding "goods" is most accurate?

Since its launch,Netflix has changed its business model in order to

One reason new products fail is that although most major corporations use a formal decision making process,sometimes they fail to critically evaluate the progress along the way.This is why many firms have a __________ to ensure that problems are corrected before proceeding to the next stage.

A 3M researcher worked with university students to develop the Post-it® Flag Highlighter.His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives.At which stage of the new-product process was this product?

One tool available for services when dealing with capacity management is to use __________ to charge different prices during different times of the day or the week to help match the supply and demand for their services.

For the past several years,Fortune rated this company as the world's most admired company and Bloomberg Businessweek perennially rates it as the most innovative company in the world.This firm is

Which of the following BEST illustrates the concept of derived demand?

A durable good is defined as a(n)

A product can be classified as "new" if it __________ from existing products.

All of the following actions occur during the business analysis stage of the new-product process EXCEPT:

Which of the following statements about test marketing is most accurate?

Products that usually last over many uses,such as cars and appliances,are referred to as

In terms of promotion,which of the following type of product would stress price,availability,and awareness?

Which of the following is the BEST example of a convenience product?

What categories of products are classified as business support products? Give an example of each category.

Which of the following statements regarding goods is most accurate?

Advertising is important for products such as Butterfinger candy bars and Dasani bottled water that are purchased frequently and at relatively low cost.Also,wide distribution in retail outlets is essential.Why?

Speed or __________ is often vital in introducing a new product.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility in Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation, Targeting, and Positioning

Managing Successful Products, Services, and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising, Sales Promotion, and Public Relations

Using Social Media to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Building an Effective Marketing Plan

Financial Aspects of Marketing

Filters

A 3M researcher worked with university students to develop the Post-it^® Flag Highlighter.His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives.At which stage of the new-product process was this product?