Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market.

Accepted Answer

A)  transfer 
B)  reposition 
C)  adapt 
D)  update 
E)  revitalize

Question 3

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the ____ phase of the new-product development process.

Accepted Answer

A)  screening 
B)  test marketing 
C)  product development 
D)  business analysis 
E)  idea generation

Question 4

Scenario 11.2
Use the following to answer the questions.
Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear, however this product is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development.
Refer to Scenario 11.2. Polar management is currently in which stage of new product development?

Accepted Answer

A)  idea generation 
B)  screening 
C)  concept testing 
D)  product development 
E)  test marketing

Question 5

If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog food, this position would probably hold the title of ____ manager.

Accepted Answer

A)  brand 
B)  area 
C)  product 
D)  sales 
E)  marketing

Question 6

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

Accepted Answer

A)  Product development 
B)  Evaluation of competitor's efforts 
C)  Screening 
D)  Idea generation 
E)  Business analysis

Question 7

Test marketing should be conducted when a product has been given a low probability of success.

Accepted Answer

A) True 
 B)False

Question 8

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?

Accepted Answer

A)  a line extension 
B)  a quality modification 
C)  a functional modification 
D)  an aesthetic modification 
E)  New packaging

Question 9

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.

Accepted Answer

A)  heterogeneity 
B)  customer contact aspect 
C)  intangibility 
D)  inseparability 
E)  perishability

Question 10

Customers seldom rely on the price-quality associations.

Accepted Answer

A) True 
 B)False

Question 11

Alexandria has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n) _____ modification.

Accepted Answer

A)  subjective 
B)  quality 
C)  aesthetic 
D)  functional 
E)  sensory

Question 12

Patrick 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?" Patrick is most likely participating in the ___ phase of the new-product development process.

Accepted Answer

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

Question 13

The test-marketing stage

Accepted Answer

A)  is an extension of the screening stage. 
B)  should come immediately after business analysis. 
C)  ensures that the product will not fail. 
D)  is a sample launching of the entire marketing mix. 
E)  prevents competitors from copying the product.

Question 14

Many of the so-called new products that are launched each year are in fact line extensions.

Accepted Answer

A) True 
 B)False

Question 15

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on

Accepted Answer

A)  news stories. 
B)  a webpage. 
C)  word of mouth. 
D)  newspaper ads. 
E)  television ads.

Question 16

Explain the role of "promises" and "trust" in the successful marketing of a service.

Accepted Answer

The answer of Explain the role of "promises" and "trust"...

Question 17

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n)

Accepted Answer

A)  product line extension. 
B)  quality modification. 
C)  aesthetic modification. 
D)  market extension. 
E)  functional modification.

Question 18

TerraCycle is a company that takes waste and "upcycles" it into new products. Currently, TerraCycle markets a bicycle rack to schools, parks, and cities, that is made of recycled plastic. This rack does not scratch or damage the bikes as concrete and steel racks can, and is eco-friendly since it is made of waste material. Terracycle is differentiating its product based on

Accepted Answer

A)  intended use. 
B)  support services. 
C)  durability. 
D)  product features. 
E)  product quality.

Question 19

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.

Question 20

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

Accepted Answer

A)  Commercialization 
B)  Concept testing 
C)  Business analysis 
D)  Product development 
E)  Test marketing

Exam 11: Developing and Managing Goods and Services

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

When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market.

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the ____ phase of the new-product development process.

If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog food, this position would probably hold the title of ____ manager.

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

Test marketing should be conducted when a product has been given a low probability of success.

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.

Customers seldom rely on the price-quality associations.

Alexandria has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n) _____ modification.

The test-marketing stage

Many of the so-called new products that are launched each year are in fact line extensions.

Just Relax Massage Therapists have a large customer base although they do very little advertising. Their promotion strategy relies mostly on

Explain the role of "promises" and "trust" in the successful marketing of a service.

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n)

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

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