Question 1

The three major ways to modify a product include:

Accepted Answer

A)  aesthetic, quality, and functional changes. 
B)  extensions, generations, and upgrades. 
C)  colour, size, and quantity modifications. 
D)  styling, product features, and product design. 
E)  quality, quantity, and design.

Question 2

Functional modifications usually require that the product be:

Accepted Answer

A)  less specific. 
B)  limited to its functions. 
C)  more appealing. 
D)  more technical. 
E)  redesigned.

Question 3

Venture teams work outside of established organization divisions.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

Accepted Answer

A)  functional 
B)  formal 
C)  aesthetic 
D)  quality 
E)  package

Question 6

Quality modifications never seek to reduce product quality.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the ____ approach.

Accepted Answer

A)  brand manager 
B)  functional team 
C)  multiproduct manager 
D)  special projects 
E)  venture team

Question 9

Quality modifications are changes that relate to a product's:

Accepted Answer

A)  dependability and durability. 
B)  effectiveness and versatility. 
C)  price and availability. 
D)  reliability and value. 
E)  value and durability.

Question 10

To manage products effectively, the product manager must be independent of other departments.

Accepted Answer

A) True 
 B)False

Question 11

Functional modifications usually require that the product be redesigned.

Accepted Answer

A) True 
 B)False

Question 12

The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.

Accepted Answer

A) True 
 B)False

Question 13

New products are classified solely as innovations that have never been sold by any organization.

Accepted Answer

A) True 
 B)False

Question 14

Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) ____ at their company.

Accepted Answer

A)  venture team 
B)  SWAT team 
C)  brand management group 
D)  idea generation group 
E)  product positioning group

Question 15

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Test marketing is an extension of the product screening process.

Accepted Answer

A) True 
 B)False

Question 18

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

Accepted Answer

A) True 
 B)False

Question 19

A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

Accepted Answer

A)  Business analysis 
B)  Product testing 
C)  Idea generation 
D)  Commercialization 
E)  Screening

Exam 9: Developing Products and Managing Product Portfolios

The three major ways to modify a product include:

Functional modifications usually require that the product be:

Venture teams work outside of established organization divisions.

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

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

Quality modifications never seek to reduce product quality.

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

The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the ____ approach.

Quality modifications are changes that relate to a product's:

To manage products effectively, the product manager must be independent of other departments.

Functional modifications usually require that the product be redesigned.

The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.

New products are classified solely as innovations that have never been sold by any organization.

Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) ____ at their company.

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

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

Test marketing is an extension of the product screening process.

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.