Question 1

Which of the following service providers are most likely to use demand-based pricing?

Accepted Answer

A) Dentists 
B) Lawyers 
C) Doctors 
D) Hair stylists 
E) Cruise ships

Question 2

Automobile makers rely heavily on aesthetic modifications.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Rida has just bought an Oculus Rift. She likes the virtual reality headset, but there are some features she wishes it has that it does not. She hears about the HTC Vive and decides to test it out. She plans to compare its performance with the Oculus Rift. This will allow her to get a better idea about whether the Oculus Rift was a smart purchase. Rida is most likely trying to use these comparisons to determine

Accepted Answer

A) product features. 
B) styling. 
C) level of quality. 
D) consistency of quality. 
E) positioning.

Question 5

When a customer takes part in the production of a service, other customers can affect the outcome of the service.

Accepted Answer

A) True 
 B)False

Question 6

What is concept testing, and why is it important?

Accepted Answer

The answer of What is concept testing, and why is...

Question 7

The continuum of tangibility goes from ____ on one end to ____ on the other end.

Accepted Answer

A) service-dominant products; good-dominant products 
B) pure products; pure services 
C) rational products; irrational products 
D) mostly service goods; mostly product goods 
E) easy to see; not easy to see

Question 8

The annual Consumer Reports rating of your company's flagship product was just released. Generally speaking the rating was good but not great. Based on the consumer comments that were referenced in the rating, it appears that many consumers have a negative view of the product's convenience and safety attributes. In order to address these consumer concerns your company should consider doing which of the following?

Accepted Answer

A) Make aesthetic modifications to the product. 
B) Make line extensions to the product. 
C) Make functional modifications to the product. 
D) Lower the price of the product. 
E) Make quality modifications to the product.

Question 9

The more ____ involved with delivering a service, the greater the degree of heterogeneity.

Accepted Answer

A) mechanical efforts 
B) phone contact 
C) perishability 
D) tangibility 
E) human labor

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.

Question 11

Supplementary services are the basic services that a customer expects to receive.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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.

Question 14

The car has undergone major redesigns and upgrades in the past few decades. For instance, car windows used to have to be rolled down manually. Now drivers can push a button to roll their windows up and down. The body of the car has been changed as well. In particular, the front of the car has been changed so that in case of a crash, the very front of the car will absorb more of the impact. The intent is to leave the cabin area intact so that the driver and passengers will not be harmed. The first example is a(n) _________________ modification, while the second change is an example of a(n) ______________modification.

Accepted Answer

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

Question 15

Product managers can be responsible for a single product, a product line, or several products.

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

Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e., the haircut). This illustrates which of the following unique features of services?

Accepted Answer

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

Question 18

Suppose Pizza Hut discounts its pizzas on Wednesday evening because demand is slow. This pricing strategy is known as low demand pricing.

Accepted Answer

A) True 
 B)False

Question 19

A brand manager is a type of product manager.

Accepted Answer

A) True 
 B)False

Question 20

Functional modifications help an organization achieve and maintain a progressive image.

Accepted Answer

A) True 
 B)False

Exam 11: Developing and Managing Goods and Services

Which of the following service providers are most likely to use demand-based pricing?

Automobile makers rely heavily on aesthetic modifications.

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

When a customer takes part in the production of a service, other customers can affect the outcome of the service.

What is concept testing, and why is it important?

The continuum of tangibility goes from on one end to on the other end.

The more ____ involved with delivering a service, the greater the degree of heterogeneity.

Dropping an unprofitable product immediately is the best strategy when

Supplementary services are the basic services that a customer expects to receive.

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

Why are line extensions more common than new products?

Product managers can be responsible for a single product, a product line, or several products.

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

Hair stylists find it challenging to standardize their service because the customer must be involved in production (i.e., the haircut) . This illustrates which of the following unique features of services?

Suppose Pizza Hut discounts its pizzas on Wednesday evening because demand is slow. This pricing strategy is known as low demand pricing.

A brand manager is a type of product manager.

Functional modifications help an organization achieve and maintain a progressive image.