Marketing Management, 3e (Marshall)
Chapter 8 Product Strategy and New Product Development
1) The essential component in delivering value is the product price.
2) When the product is wrong, skilled marketing communication and pricing sophistication can
correct the problems.
3) The essential benefit is the fundamental need met by a product.
4) Different target markets will view the same product in completely different ways.
5) A stock-keeping unit (SKU) is a unique identification number used to track a product in the
consumer’s home.
6) Reliability is a product’s ability to deliver on features and performance characteristics
promised in marketing communications.
7) More than any other discriminator, style has the disadvantage of being difficult to copy.
8) Luxury cars such as the Chevrolet Corvette are available with tires that enable a driver to
continue driving even after the tire has been damaged. This is an example of Corvette using style
as a product discriminator.
9) One of the disadvantages of using style as a product discriminator is that consumer tastes
change over time and what is considered stylish can quickly lose its appeal.
10) Barbara’s Bakery sells custom cakes, cookies, and other pastries. These represent Barbara’s
Bakery’s product line.
11) Product life cycle (PLC) includes four basic stages: introduction, growth, maturity, and
delay.
12) The product life cycle (PLC) generally refers to a product item rather than a product
category.
13) The targeted consumers during the maturing phase of a product life cycle are innovators and
early adopters.
14) Desktop computers, cell phones, and tablet computers are examples of new-to-the-world
products considered disruptive innovations.
15) The three major activities in new-product development are to (1) generate new ideas, (2)
screen and evaluate ideas, and (3) define and test product concept.
16) A go-to-market mistake happens when a good idea is prematurely eliminated during the
screening process.
17) The number of products purchased by the same customer is called repeat purchases.
18) The business case analysis is an overall evaluation of a product and usually assesses the
product’s probability of success.
19) An individual moves through five stages before adopting a product, including awareness,
notice, trial, testing, and feedback.
20) Trial purchase is the focus of a product launch marketing plan.
21) Early adopters are product watchers who seek out new products but are price-sensitive.
22) Everyone in a target market falls into one of five groups based on their willingness to try the
innovation, including innovators, early adopters, early majority, late majority, and laggards.
23) Late majority are product followers who are price-sensitive and risk-averse.
24) The primary function of marketing and the entire organization, in a broader context, is to
________.
A) increase employee turnover
B) offer highly customized products
C) deliver value to the customer
D) focus on short-term benefits
E) eliminate barriers to market entry
25) The failure of Apple Newton, the first PDA, highlights the fact that ________.
A) the essential benefit is not the fundamental need met by a product
B) people look for products that are technically superior
C) the best product technically is not always the most successful product
D) the essential component in delivering value is product pricing
E) intense marketing communications can even make a wrong product successful
26) ________ can be defined as anything that delivers value to satisfy a need or want and
includes physical merchandise, services, events, people, places, organizations, information, even
ideas.
A) Utility
B) Strategy
C) Exchange
D) Product
E) Market
27) In the context of product characteristics, companies translate the essential benefit into
physical, tangible elements known as the ________ product.
A) augmented
B) core
C) deviated
D) differentiated
E) contrasting
28) The ________ product extends the core product to include additional features, designs, and
innovations that exceed customer expectations.
A) differentiated
B) deviated
C) amended
D) specialized
E) enhanced
29) In the context of product classifications, tangibility refers to the ________.
A) service delivered with a product
B) ability to create a combination of product and service
C) physical aspects of a product
D) value of a product in the market
E) fundamental need met by a product
30) Today, many tangible products include aspects that impact the customer’s satisfaction before
and after the purchase. These aspects that complement the tangible features of a product are
called ________.
A) physical aspects
B) core competencies
C) monetary characteristics
D) intangible characteristics
E) essential benefits
31) Frequently purchased, relatively low-cost products for which customers have little interest in
seeking new information and rely heavily on prior purchase behavior are called ________ goods.
A) shopping
B) convenience
C) specialty
D) unsought
E) consenting
32) Clothes, furniture, and major appliances such as refrigerators and dishwashers are examples
of ________ goods.
A) convenience
B) specialty
C) unsought
D) capital
E) shopping
33) ________ goods are unique purchases made based on a defining characteristic for the
consumer, which might be a real or perceived product feature, such as Apple iPhone’s easy user
interface.
A) Shopping
B) Convenience
C) Specialty
D) Unsought
E) Capital
34) Unsought goods are characterized as being the kinds of goods that consumers ________.
A) purchase solely for business purposes
B) do more research on and compare across product dimensions such as color, size, features, and
price
C) frequently purchase and have little interest in seeking new information about
D) would rather not purchase at all
E) purchase solely for personal purposes
35) Companies often use features to differentiate themselves from competitors. However, a
company must balance the features customers want with ________.
A) what the competition offers
B) the ability to manufacture the feature in a timely way
C) what customers will pay
D) the configurations that make a positive brand look stylish
E) the resources available for production
36) An important issue for consumers is conformance, which is the product’s ability to
________.
A) deliver on features and performance characteristics promised in marketing communications
B) conform to the standards set by the federal guidelines
C) deliver value in the form of product quality
D) get the manufacturing aligned using quality processes
E) deliver additional features, designs, and innovations that exceed customer expectations
37) When a company can show that its product’s projected lifetime is high under certain
operating conditions, it is using ________ as a product discriminator.
A) style
B) performance quality
C) form
D) durability
E) conformance quality
38) More than any other product discriminator, style offers the advantage to a company of being
________.
A) a low-cost differentiator
B) easy to do consistently over time
C) able to ensure high quality
D) difficult for competition to copy
E) associated with high repairability
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39) A product ________ is a group of products linked through usage, customer profile, price
points, and distribution channels.
A) form
B) mix
C) line
D) cycle
E) core
40) When companies provide too few products in a product line, they run the risk of ________.
A) having inefficiencies in production
B) increasing barriers to market entry
C) delivering products that can be easily copied
D) missing important market opportunities
E) being differentiated from competitors
41) Combining all the products offered by a company is called the product ________.
A) line
B) mix
C) profile
D) standardization
E) function
42) The product life cycle (PLC) defines the life of a product in four basic stages, which include
________.
A) introduction, growth, maturity, and decline
B) awareness, interest, trial, and adoption
C) primary, secondary, advanced, and nominal
D) production, development, distribution, and enhancement
E) idea generation, creation, presentation, and promotion
43) The introduction phase of the product life cycle for an industry is usually characterized by
________.
A) high profits
B) no profits
C) high sales
D) low marketing costs
E) low product development costs
44) The objective in the introduction phase of the product life cycle (PLC) is to ________.
A) differentiate the product from those of new competitors, promoting rapid expansion
B) transition the product from high growth to sales stability
C) build market awareness for the product leading to trial purchase
D) determine the future of the product
E) develop product development strategies
45) The essential marketing objective in the growth phase of the product life cycle (PLC) is to
________.
A) build trial of the product
B) build public relations for the product
C) build trial followed by loyalty
D) differentiate the product from those of new competitors
E) create market awareness for the product
46) In the ________ phase of the product life cycle (PLC), sales continue to increase but at a
decreasing rate.
A) maturity
B) growth
C) introduction
D) decline
E) initial
47) Informing and educating the target audience about the product’s benefits and features is part
of the communication strategy in the ________ phase of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) regression
48) The most dramatic increase in revenue is most likely to occur in the ________ phase of the
product life cycle.
A) introduction
B) growth
C) maturity
D) saturation
E) decline