Deck 13: Developing and Managing Products

Question 1

Why should companies develop and introduce new products?

A) because failing to do so can threaten the future success of the company
B) because it is relatively inexpensive and therefore worth the time
C) to replace deleted products, so the broadness of the marketing mix remains unchanged
D) because new products are almost always successful

Answer 1

A

Question 2

Libby has two dogs that just dug a hole in her yard. They are muddy, and Libby does not want to bring them in the house to bathe them. She calls Groomers on the Go, a mobile pet groomer. They will drive to a customer's house and bathe and groom their dogs or cats in a customized mobile home. Groomers on the Go provides value to Libby because it is which of the following?

A) a good
B) a service
C) a good and a service
D) neither a good nor a service

Answer 2

B

Question 3

Unilever is considering an idea for a new liquid laundry detergent that contains a whitening agent. The company presents its ideas to a group of potential customers in order to obtain their feedback. Which phase of product development does this represent?

A) idea generation
B) product analysis
C) commercialization
D) product development and testing

Answer 3

B

Question 4

Walmart uses radio frequency identification (RFID) chips to quickly update inventory. The addition of RFID chips eliminated the need for an employee to scan each individual product by hand. What makes this innovation a benefit?

A) it lowers the cost Walmart spends on employee salaries
B) it offers customers new experiences
C) it improves the quality of products sold by Walmart
D) it increases the price Walmart can charge on products with RFID chips

Question 5

The local delicatessen caters lunch for a company's staff meeting. How would this luncheon be classified?

A) a good
B) a service
C) a good and a service
D) neither a good nor a service

Question 6

Which of the following describes an entirely new product?

A) innovations
B) generics
C) house brands
D) adaptations

Question 7

TCBY wants to expand its line of food products. If the company sends surveys to consumers to determine which food items would appeal to them for desserts or snacks, which phase of new product development does this represent?

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

Question 8

What is the term for everything that one receives in an exchange, including all tangible and intangible attributes and expected benefits?

A) package
B) contract
C) product
D) trade

Question 9

A new restaurant uses robots as servers. There are some issues still to be worked out before the restaurant can rely on the robots completely but the robots are a big hit, especially with kids. Which of the following is the benefit of innovation to the restaurant?

A) improves function or quality
B) enables a lower cost
C) offers customers a new experience
D) eliminates human error

Question 10

What is the term used to describe products that are designed to be similar to and compete with existing products of other firms?

A) innovations
B) generics
C) imitations
D) adaptations

Question 11

Bhavin is looking to purchase a security system for his condominium. He lives downtown, and although he feels relatively safe there have been a few break-ins recently. He chooses Safe-n-Secure because they will install motion detectors and cameras outside, place sensors on each window, and monitor his system 24 hours a day. Bhavin finds value with Safe-n-Secure because they offer which of the following?

A) a good
B) a service
C) a good and a service
D) neither a good nor a service

Question 12

Procter & Gamble manufactures hair care products such as Pantene, toothpaste and oral health products such as Crest, batteries, Cover Girl cosmetics, laundry and dish detergent, paper products like Bounty and Puffs, and a host of other products. What does the collection of all these products represent for Procter & Gamble?

A) product line
B) product mix
C) marketing mix
D) marketing strategy

Question 13

In which stage of the product development process would brainstorming sessions occur?

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

Question 14

Gina goes to the spa and gets a deep tissue massage. The massage would be categorized as which of the following?

A) a good
B) a service
C) a good and a service
D) neither a good nor a service

Question 15

Tony installs a new furnace in a customer's home. The installation of the furnace would be categorized as which of the following?

A) a good
B) a service
C) a good and a service
D) neither a good nor a service

Question 16

Google Expeditions uses virtual reality panoramas and 3D images to take students on virtual trips. Students in London, Ontario, can visit the Great Wall of China without leaving their classroom. This is an example of which of the following?

A) improving the quality of products in the classroom
B) decreasing production costs for teachers
C) offering students new experiences
D) increasing the quality of teachers in school districts

Question 17

Customers who buy a vehicle at XYZ Automotive get free car washes for as long as they own the car. This is characterized as which of the following?

A) a good
B) a service
C) a good and a service
D) neither a good nor a service

Question 18

In which stage in the development of new products are ideas that match company objectives analyzed as to whether the firm has the required expertise for the product's development and marketing?

A) exploration
B) product analysis
C) product development
D) business analysis

Question 19

Amazon is testing delivering packages with drones, and anticipates being able to deliver a package within 30 minutes of a customer placing an order online. This is an example of which benefit of innovation?

A) function/quality
B) new experiences
C) beating competition
D) research and development

Question 20

If Texas Instruments hires an accounting firm to compute the company's taxes, what is the accounting firm providing?

A) a good
B) a service
C) a good and a service
D) neither a good nor a service

Question 21

Most product ideas are rejected during which stage of new product development?

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

Question 22

All of the following are stages in the development of new products EXCEPT which one?

A) product analysis
B) commercialization
C) product modification
D) idea generation

Question 23

Companies often roll out new products on a small scale to determine how well they sell and are received by the market. Which phase of product development does this represent?

A) idea generation
B) product development and testing
C) determining the marketing mix
D) product analysis

Question 24

What is the first step in the product development process?

A) screening
B) product analysis
C) commercialization
D) idea generation

Question 25

During the product analysis stage of product development, all of the following occur EXCEPT which one?

A) presenting idea to potential customers for feedback
B) creating estimates of possible costs
C) developing a prototype
D) creating estimates of possible profits associated with launching the new product

Question 26

During which stage in the evolution of new products is the product launched into full-scale manufacturing and marketing?

A) business analysis
B) screening
C) product development
D) commercialization

Question 27

Glo-Brite Company is considering development of a new children's toothpaste in fun-shaped dispensers. Its product development engineers create estimates of the costs involved in the development of this product in order to determine if the product will be profitable. Which phase of product development does this illustrate?

A) idea generation
B) commercialization
C) test marketing
D) product analysis

Question 28

In which stage of new product development does the company launch the product on a smaller scale to evaluate customer response?

A) development and testing
B) screening
C) idea generation
D) business analysis

Question 29

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas. Now that there is a list of product ideas, what is the next step?

A) business analysis
B) product development
C) product analysis
D) test marketing

Question 30

Frito Lay holds a contest for customers to submit ideas for new flavours of Lays potato chips. Which phase of product development does this represent?

A) prototyping
B) product development/testing
C) product analysis
D) idea generation

Question 31

During the commercialization phase of product development, all of the following occur EXCEPT which one?

A) making product changes or improvements
B) presenting ideas to potential customers for feedback
C) launching product to general market
D) planning for full-scale manufacturing

Question 32

Building prototypes or small production runs of the product to test on a small scale is done during which phase?

A) Phase One: Idea generation
B) Phase Two: Product analysis
C) Phase Three: Product development and testing
D) Phase Four: Commercialization

Question 33

What is the final step in the new product development process?

A) product analysis
B) commercialization
C) development and testing
D) prototyping

Question 34

Before a fast food restaurant introduces its new veggie burger in its restaurants nationwide, it decides to launch the product on a smaller scale to evaluate customer response. Which product development phase does this represent?

A) product development and testing
B) commercialization
C) product analysis
D) screening

Question 35

During which phase of the product development process can marketers experiment with advertising, pricing, and packaging in different geographic areas?

A) screening
B) product development and testing
C) commercialization
D) product development

Question 36

During the product development and testing phase, all of the following occur EXCEPT which one?

A) developing prototypes
B) launching product on a smaller scale
C) selling product in a test market
D) making product changes or improvements

Question 37

Product ideas are transformed into prototypes during which stage of the product development process?

A) business analysis
B) commercialization
C) product development and testing
D) concept testing

Question 38

As the product idea committee of Foster Manufacturing Company went through its list of possible new products, it rejected various ideas for one or more reasons. Which of the following is LEAST likely to be a reason for rejection?

A) The company lacked the expertise to develop and market the product.
B) The product did not match organizational resources.
C) The product would allow the company to increase its annual sales by 20%.
D) The product was not consistent with the company's objectives.

Question 39

During which stage in the development of new products is the product introduced in a limited way to determine buyers' reactions?

A) screening
B) business analysis
C) commercialization
D) product development and testing

Question 40

Kraft wants to develop a new line of low-calorie, low-fat, and low-cholesterol processed cheese products. The managers are studying whether demand is strong enough and whether the new line will yield a favourable return on investment. The managers are currently in which phase of new product development?

A) idea generation
B) product development
C) test marketing
D) development and testing

Question 41

A popular cookie brand finds itself in the maturity stage of the product life cycle. Which of the following would be the best marketing strategy for the cookie brand?

A) to reduce production costs in order to increase profits
B) heavy advertising and promotions, including coupons and contests
C) to increase distribution of the cookie
D) to develop new flavours to spur market demand

Question 42

Which product life cycle stage involves low consumer awareness and acceptance of the product, few competitors, and a gradual rise in sales because of promotion?

A) extension
B) introduction
C) growth
D) maturity

Question 43

In the product life cycle, profits begin to decline in the growth stage, while sales decline during which stage?

A) introduction
B) decline
C) maturity
D) growth

Question 44

Which product life cycle stage involves a rapid sales increase, competing products marketed by other companies, lower unit costs, and an overall tendency toward increased profit?

A) growth
B) extension
C) introduction
D) maturity

Question 45

Gillette Company's blades are in the maturity stage of the product life cycle. How can the company strengthen its market share?

A) eliminate less profitable versions of the product
B) redesign the packaging
C) emphasize customer service
D) watch for the early buying patterns

Question 46

Why do sales and profits decline during the last stage of the product life cycle?

A) consumers' needs change and the product is no longer desirable
B) competitors have entered the market
C) consumers are unaware of the product
D) there has been a recall on the product and consumers are afraid to purchase it

Question 47

Precious Pools feels that at its current stage-growth-it needs to meet its competition. It can best do this by all of the following means EXCEPT which one?

A) initiating product improvements
B) lowering prices
C) emphasizing customer service
D) eliminating less profitable versions of the product

Question 48

In which order do the stages of the product life cycle occur?

A) introduction, maturity, slowdown, decline
B) innovation, distribution, maturity, decline
C) introduction, growth, maturity, decline
D) introduction, growth, slowdown, decline

Question 49

Arm & Hammer launches a campaign to extend the life of its baking soda products through improved packaging and new uses in products such as toothpaste and cat litter. These new uses of products and other modifications are generally created during which phase of the product life cycle?

A) growth
B) maturity
C) extension
D) decline

Question 50

The marketing challenge of making potential customers aware of the product's existence and is features, benefits, and uses is prevalent in which of the product life cycle stages?

A) introduction
B) maturity
C) extension
D) growth

Question 51

Sales of Hi-Click Corporation's digital video cameras are rising rapidly, profits are peaking, and competitors are entering the market. Hi-Click is able to maintain its market lead. Judging from this example, the digital video camera is in which stage of the product life cycle?

A) introduction
B) maturity
C) growth
D) evaluation

Question 52

What is the first stage of the product life cycle?

A) invention
B) launching
C) discovery
D) introduction

Question 53

During which stage of the product life cycle do sales and profits increase rapidly?

A) growth
B) introduction
C) maturity
D) invention

Question 54

All of the following are characteristics of the maturity stage of the product life cycle EXCEPT which one?

A) a decline in the sales curve
B) simplification of product lines
C) increased distribution
D) increased price competition

Question 55

Which product life cycle stage involves a decrease in the rate of sales growth, a decline in the sales curve, and dealers simplifying their product lines?

A) growth
B) decline
C) extension
D) maturity

Question 56

Why do profits decline during the growth stage of the product life cycle?

A) consumers' needs change
B) consumers are not yet aware of the product
C) competitors lower prices
D) new products or technology have replaced the product

Question 57

Sales and profits grow slowly during which stage of the product life cycle?

A) maturity
B) growth
C) introduction
D) invention

Question 58

When a product experiences growth in sales revenue and profits, reaches a peak, and then declines, it goes through which of the following?

A) cyclical phases
B) product stages
C) product growth and decline
D) the product life cycle

Question 59

All of the following are characteristics of the introduction stage of the product life cycle EXCEPT which one?

A) low profits or even a loss
B) the appearance on the market of refinements or extensions of the original product
C) relatively few competitors
D) low consumer awareness and acceptance of the product

Question 60

Which of the following is generally NOT considered to be a stage in the product life cycle?

A) introduction
B) growth
C) transition
D) decline

Question 61

When Nabisco realized that its Ritz cracker brand was experiencing stagnant sales and profits, it began to offer serving suggestions and recipes featuring the cracker on its packaging. This marketing mix change is in response to which of the following?

A) the stage of the product life cycle
B) changes in customer preferences
C) simplifying the product mix
D) challenges from competitors

Question 62

As 3D printers enter the growth stage of the product life cycle, which of the following marketing strategies should producers of 3D printers adopt?

A) offer new features and styles and target competitors in advertisements
B) promote heavily and target early adopters
C) build brand by advertising, dropping prices, and increasing distribution
D) reduce marketing and increase prices to increase profits

Question 63

Bottles of wine feature the pictures of a rotating cast of shelter dogs from a local animal shelter, and a portion of each sale is donated to no-kill animal shelters. What function of packaging does this demonstrate?

A) improving design or function
B) attracting buyer attention
C) better serving customer needs
D) providing product information

Question 64

The Flower Pot wraps bouquets of flowers in cellophane, and they are shipped in a specially designed gift box to ensure freshness during delivery. Which function of packaging does this illustrate?

A) attracting buyer attention
B) improving design or function
C) better serving customer needs
D) protecting the product

Question 65

Grouping product offerings into product lines provides manufacturers with which three primary benefits?

A) convenience for consumers, brand clarity, and market share
B) clarity for consumers, more effective product management, and simplified branding
C) brand complexity, simplified management, and consumer convenience
D) consumer convenience, market share, and brand complexity

Question 66

Flip phones would likely be characterized as being in which stage of the product life cycle?

A) decline
B) maturity
C) expansion
D) growth

Question 67

KFC, famous for fried chicken, introduced grilled chicken in 2008 in an effort to offer healthier menu options. This product mix change can be attributed to which of the following?

A) more effective brand management
B) the stage of the product life cycle
C) challenges from competitors
D) changes in customer preferences

Question 68

Gerber produces baby formula, cereals, beverages, yogurt snacks, toddler meals, and side dishes. What does this collection of products comprise for Gerber?

A) market mix
B) product line
C) product mix
D) market segment

Question 69

A snack food manufacturer has introduced a gluten-free version of its popular toaster pastry, the first of its kind on the market. Which of the following is likely the reason the company changed its product mix?

A) changing consumer preferences
B) to streamline manufacturing processes
C) simplification of its product mix
D) budgetary concerns

Question 70

Car Tunes, a national car stereo retailer, markets stereos, speakers, car alarms, and other accessories. What do these products comprise for Car Tunes?

A) market mix
B) product mix
C) product line
D) product segmentation

Question 71

Borden Inc. offers pasta, snacks, grocery, and dairy items as well as films, adhesives, and other non-food products. What do these products represent for the Borden company?

A) product mix
B) product line
C) product differentiation
D) product life cycle

Question 72

If Unilever wants to introduce a new flavour of ice cream, it would likely do so using its Breyer's brand of ice cream instead of creating a new brand. This is an example of which benefit of product lines?

A) increased profits
B) more effective management
C) clarity for consumers
D) simplified branding

Question 73

Health Canada requires that food packaging contains product ingredients, sell-by dates, the manufacturer's address, contact information, and any cautionary messages or usage warnings. Which function of packaging does this represent?

A) providing product information
B) protecting the product
C) better serving customer needs
D) attracting buyer attention

Question 74

Which of the following was Pepsi doing when it introduced Mountain Dew Code Red?

A) expanding its marketing mix
B) increasing the product line
C) simplifying its product mix
D) refining its marketing mix

Question 75

Although Procter & Gamble produces multiple brands of laundry detergent, each brand is marketed separately. For example, Tide advertisements tend to focus on how well the brand cleans clothes, whereas Gain advertisements focus on the scent of the brand. This is an example of which benefit of product lines?

A) clarity for consumers
B) simplifying branding
C) more effective management
D) difficult competitors

Question 76

FroYolo yogurt company packages its yogurt in tubes and pouches for on-the-go snacking without a spoon and makes the packages freezable for lunch boxes as well. Which function of packaging does this illustrate?

A) protecting the product
B) attracting buyer attention
C) providing instructions for use
D) improving design or function

Question 77

As a result of extensive market research, a consumer products manufacturer introduces a line of hypoallergenic, fragrance-free, and dye-free laundry products for customers with allergies and skin sensitivities. Which of the following best summarizes the reason for the company's product mix change?

A) challenges from competitors
B) changes in customer preferences
C) stage of the product life cycle
D) more effective brand management

Question 78

Arm & Hammer markets a variety of deodorants, including Ultramax Confidence Dry Spray, Essentials Solid Deodorant, Ultramax Gel Antiperspirant, and several others. What do these products comprise for Arm & Hammer?

A) marketing mix
B) product mix
C) product line
D) brand mix

Question 79

A food manufacturer introduces a new yogurt blend in single-serving cups that do not need to be refrigerated, so parents can pack yogurt in their kids' lunch boxes or take a container of yogurt to work without having to worry about keeping it refrigerated. Which function of packaging does this best represent?

A) protecting the product
B) attracting buyer attention
C) better serving customer needs
D) providing instructions for use

Question 80

When you place an order with Pioneer Steak Company, the steaks are vacuum wrapped, flash frozen, and shipped in an insulated cooler with enough dry ice to keep them cold until arrival. Which function of packaging does this represent?

A) attracting buyer attention
B) better serving customer needs
C) improving design or function
D) protecting the product