Question 1

Marcellis is a product manager for a major electronics company. His current project deals with the development and introduction of a new smartphone. Since there are a number of smartphones currently out on the market, Marcellis is concerned about product failure. Currently, Marcellis and his team are in the screening phase of the new product development process. Has his team already passed the phase which is best able to measure the product failure concern?

Accepted Answer

A)  Yes, the best phase is the idea generation phase. 
B)  Yes, the best phase is the concept testing phase. 
C)  No, the best phase is the concept testing phase. 
D)  Yes, the best phase is the test marketing phase. 
E)  No, the best phase is the test marketing phase.

Question 2

Scenario 11.3
Use the scenario to answer the questions.
The YMCA in mid-town Atlanta has recently upgraded its facilities, which includes construction of a new Olympic- sized swimming pool and a children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, all year round. The children's playground is accessible for members alone, and is a fenced and secured area.
During the weekdays, children under the age of 12 can engage themselves in recreation activities at the playground under supervision, for no additional fee. Additionally, swimming lessons are conducted for children of all age groups, which are also covered under the monthly membership fee. The swimming pool is very popular among professionals who stop by for a swimming workout before or after work.
Many of the YMCA sites are bustling with activities throughout the day; however, the midtown "Y" is busier during early morning hours and early evenings. At a recent meeting, Maya Sinclair, its manager, shares her concerns about getting more people into the "Y" at other times of the day. She asks her staff for ideas on ways to attract more customers during the off-peak hours. She also declares that the city of Atlanta has reduced YMCA's funding for the next year by 20%. This would require the "Y" to either gain additional members or increase its monthly and annual membership fees per head.
-Refer to Scenario 11.3. The children who take swimming lessons must be present at the poolside during the time of their appointment. The need for the children to be present in order to receive the lesson is an example of the feature of a service, while the need for them to be there at the time of their appointment, represents the feature.

Accepted Answer

A)  inseparability; heterogeneity 
B)  heterogeneity; perishability 
C)  inseparability; perishability 
D)  intangibility; perishability 
E)  intangibility; inseparability

Question 3

Demand-based pricing of a service denotes low prices during times of low demand and high prices during times of high demand.

Accepted Answer

A) True 
 B)False

Question 4

If Splenda assesses that its sweetener, "Splenda with Vitamins", is not meeting profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) deletion strategy.

Accepted Answer

A)  run-out 
B)  immediate drop 
C)  slow-down 
D)  phase-out 
E)  drop-down

Question 5

How do providers of time-sensitive services smooth the fluctuations in demand from times of peak demand to times of off-peak demand?

Accepted Answer

The answer of How do providers of time-sensitive services smooth...

Question 6

Victor thinks that a Lexus coupe is a quality vehicle. Yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of is relative or difficult to describe without a basis of comparison.

Accepted Answer

A)  consistency of quality 
B)  level of quality 
C)  product differentiation 
D)  quality rollout 
E)  product positioning

Question 7

Product support services are important mainly when a company wants to differentiate its products from other products in a market that essentially have the same quality, design, and features.

Accepted Answer

A) True 
 B)False

Question 8

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, warranties, and repairs. The Home Depot is differentiating through:

Accepted Answer

A)  product ancillaries. 
B)  company quality. 
C)  customer services. 
D)  company features. 
E)  product features.

Question 9

H&R Block, a major tax preparation firm, reported facing issues with regard to its employees' inconsistency in filing of returns. With which of the following characteristics of the service offering is the firm experiencing an issue?

Accepted Answer

A)  Tangibility 
B)  Intangibility 
C)  Perishability 
D)  Inseparability 
E)  Heterogeneity

Question 10

The concept of product quality is the same for different consumer groups and remains constant across consumer and business markets.

Accepted Answer

A) True 
 B)False

Question 11

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called modifications.

Accepted Answer

A)  aesthetic 
B)  functional 
C)  operational 
D)  quality 
E)  feature

Question 12

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

Accepted Answer

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

Question 13

One of the ways in which service businesses communicate a higher degree of trust to their customers is by having their employees be well-groomed, sharp looking, and dressed in appropriate uniforms. This is a way to address the characteristic of services.

Accepted Answer

A)  intangibility 
B)  perishability 
C)  homogeneity 
D)  inseparability 
E)  heterogeneity

Question 14

Elizabeth, Manuel, Tony, Cynthia, and Alexandra work in the marketing, finance, production, engineering, and R&D departments of a company respectively. They are collectively assigned to develop a new low-calorie, high-nutrition snack treat. These five people constitute a(n) at their company.

Accepted Answer

A)  venture team 
B)  distributed team 
C)  brand management group 
D)  focus group 
E)  product positioning group

Question 15

Safe Auto Insurance asserts "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?

Accepted Answer

A)  Customers often use price as an indicator of quality, and Safe wants to be seen as a low quality provider. 
B)  The type of advertising used by Safe makes insurance more tangible to the customer. 
C)  Safe wants to reassure customers that it provides the highest level of service quality available. 
D)  Because market conditions limit price rise on auto insurance, Safe uses this approach to gain customers. 
E)  For certain services, customers look for the low-cost provider, which is what Safe claims to be.

Question 16

Services delivered through machines such as computer kiosks, ATMs, and vending machines can reduce the aspect that arises from increased contact with human employees.

Accepted Answer

A)  intangibility 
B)  perishability 
C)  inseparability 
D)  heterogeneity 
E)  tangibility

Question 17

Marketers at Starbucks generated several ideas for new food products. Management assessed these ideas to determine whether or not they were consistent with Starbucks' objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is:

Accepted Answer

A)  product development. 
B)  idea screening. 
C)  concept testing. 
D)  business analysis. 
E)  test marketing.

Question 18

Identify and describe the three major ways to modify existing products, and give an example of each.

Accepted Answer

The answer of Identify and describe the three major ways...

Question 19

Time spent in test marketing can benefit a firm's competitors.

Accepted Answer

A) True 
 B)False

Question 20

The test marketing phase of the new-product development process:

Accepted Answer

A)  is an extension of the product development phase. 
B)  should be conducted immediately after business analysis. 
C)  eliminates the risk of product failure. 
D)  is a sample launching of the entire marketing mix. 
E)  prevents competitors from copying the product.

Exam 11: Developing and Managing Goods and Services

Demand-based pricing of a service denotes low prices during times of low demand and high prices during times of high demand.

If Splenda assesses that its sweetener, "Splenda with Vitamins", is not meeting profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) deletion strategy.

How do providers of time-sensitive services smooth the fluctuations in demand from times of peak demand to times of off-peak demand?

Victor thinks that a Lexus coupe is a quality vehicle. Yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of is relative or difficult to describe without a basis of comparison.

Product support services are important mainly when a company wants to differentiate its products from other products in a market that essentially have the same quality, design, and features.

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, warranties, and repairs. The Home Depot is differentiating through:

H&R Block, a major tax preparation firm, reported facing issues with regard to its employees' inconsistency in filing of returns. With which of the following characteristics of the service offering is the firm experiencing an issue?

The concept of product quality is the same for different consumer groups and remains constant across consumer and business markets.

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called modifications.

One of the ways in which service businesses communicate a higher degree of trust to their customers is by having their employees be well-groomed, sharp looking, and dressed in appropriate uniforms. This is a way to address the characteristic of services.

Elizabeth, Manuel, Tony, Cynthia, and Alexandra work in the marketing, finance, production, engineering, and R&D departments of a company respectively. They are collectively assigned to develop a new low-calorie, high-nutrition snack treat. These five people constitute a(n) at their company.

Safe Auto Insurance asserts "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach?

Services delivered through machines such as computer kiosks, ATMs, and vending machines can reduce the aspect that arises from increased contact with human employees.

Identify and describe the three major ways to modify existing products, and give an example of each.

Time spent in test marketing can benefit a firm's competitors.

The test marketing phase of the new-product development process: