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b. product development
c. test marketing
d. screening
e. idea generation
249. After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device
meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.
a. product design
b. screening
c. product development
d. concept testing
e. test marketing
250. The intangibility aspect of a service means that
a. there is a lack of perceived quality compared to a tangible good.
b. unused capacity cannot be stockpiled or inventoried for later use.
c. consumers may have a problem evaluating service offerings.
d. services are not produced at the same time they are consumed.
e. services are not labor-intensive.
251. All of the following are elements of the inseparability characteristic of services except that
a. consumers are involved in production.
b. centralized mass production is difficult.
c. consumption and production are simultaneous.
d. many services cannot be performed without the customer being present.
e. services are easy to standardize and control.
252. Max is a product manager at Whirlpool. He learned that one of his competitors, Kenmore, was engaging in
a product test of a new dishwasher. He decided to lower prices on his Whirlpool dishwashers in Kenmore’s test
market area in order to _____ the test program.
a. end
b. stimulate
c. jam
d. scramble
e. screen
253. A brand manager in a multiproduct firm would be responsible for
a. performance of a specific brand.
b. all brands within a product line.
c. branding the products of the firm.
d. all products in the brand-line group.
e. all brands made by the firm.
254. You are in the new product development process for a new consumer electronics product. So far, everything has been
very positive and you are starting to believe this product might be a blockbuster. As you prepare for the next stage of the
process, you are concerned that your competition might try to “jam” your new product by increasing promotional
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activities for their own products. More importantly, you are concerned that these competitors might try to copy your
product as you move into this next stage.
Which of the following stages of the new product development process are you about to enter?
a. Product development
b. Test marketing
c. Concept testing
d. Commercialization
e. Screening
Scenario 11.1
Use the following to answer the questions.
Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for
making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited
markets in 2012 and began national distribution in 2013.
About 18 months later, a series of competitors’ ads was run to counter claims that Cheetos Crunchies actually contained
1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies
was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took
out the preservatives, and improved the taste.
255. Refer to Scenario 11.1. The new improved Cheetos Fat-Free Crunchies was a(n) ____.
a. quality modification.
b. aesthetic modification
c. functional modification
d. brand extension
e. product line extension
256. The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of
services.
a. heterogeneity
b. customer contact aspect
c. intangibility
d. inseparability
e. perishability
257. Lashawna is a concert promoter who works for singer Kanye West. She works very hard to make sure most of
Kanye’s concerts are sold out because she understands the concept of perishability, which means
a. because the concert is not tangible, customers will have a difficult time judging its quality in advance.
b. the production of the concert and the consumption of the concert by the fans cannot be separated so tickets must
be sold.
c. a high level of interaction will exist between the customers and the musicians, which makes the customers’
presence necessary.
d. that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again.
e. that each concert is different and customers will miss a unique experience if they are not present at the concert.
258. If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors
of schools, this modification is most likely to be viewed as a(n) ____ modification.
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a. aesthetic
b. functional
c. quality
d. image
e. feature
259. Clive is an engineer involved in the product development of a new plastic laminate that would be sold to
manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of
the new product. They are likely in the ____ phase of the new product development process.
a. Idea generation
b. Market testing
c. Business analysis
d. Concept testing
e. Compatibility research
260. Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have
some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance,
they probably should proceed to the ____ stage of the new-product development process.
a. business analysis
b. commercialization
c. screening
d. test marketing
e. product development
261. Early in the commercialization phase, marketers must make decisions about
a. warranties, repairs, and replacement parts.
b. product features and breakeven points.
c. functionality, safety, and convenience.
d. the proposed marketing mix variables.
e. which ideas to further pursue.
262. 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.
a. venture team
b. SWOT team
c. brand management group
d. idea generation group
e. product positioning group
263. A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and
Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent
states, and finally the entire country. Frito-Lay is using a ____ for its new variety of Doritos.
a. multi-stage introduction
b. roll-out approach
c. test-market expansion
d. mass commercialization
e. trickle-down approach
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264. Flo, the spokesperson in Progressive Insurance TV commercials, is used to symbolize friendliness, reliability, and
knowledge of the company’s products. The part Flo plays in the promotion is designed to address the ____ characteristic
of services
a. intangibility
b. perishability
c. heterogeneity
d. inseparability
e. customer service
265. The perishability of services means
a. when demand is low, the unused capacity is lost forever
b. when demand is low, the unused capacity can be stored
c. when demand is low, the unused capacity can be recovered the next day
d. when demand is low, the unused capacity must be immediately used
e. when demand is low, the unused capacity should be re-directed
266. A first class airline ticket offers a ____ service of transportation as well as ____ services of drink and food service,
special boarding rights, and extra customer service.
a. primary; secondary
b. core; supplementary
c. bundled; extra
d. complementary; main
e. major; minor
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.
267. Refer to Scenario 11.2. The group of people that management has assembled to take on the task of new-product
development is best described as
a. a buying center.
b. a product development task force.
c. a marketing development team.
d. a venture team.
e. a brand management team
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268. Morgan is interested in upgrading to a new sofa for her apartment. Morgan looks online to see what new models her
favorite sofa brand has available and can get information on the style and color; however, she can’t actually sit on the sofa
to determine its comfort level. Morgan is able to evaluate the ____ modifications to the sofa, but not the ____
modifications.
a. aesthetic; quality
b. quality; aesthetic
c. aesthetic; functional
d. functional; quality
e. functional; aesthetic
269. Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics
are called ____ modifications.
a. aesthetic
b. functional
c. operational
d. quality
e. feature
270. Because practically all marketers provide some services, ____ typically do not exist in today’s business environment.
a. pure goods
b. pure services
c. customer services
d. service products
e. tangible-dominant products
271. What step in developing new products involves determining whether the product idea is compatible with company
objectives, needs, and resources on a general level?
a. Product development
b. Evaluation of competitor’s efforts
c. Screening
d. Idea generation
e. Business analysis
272. When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in
the marketing mix are needed, they are in the ____ phase of the new-product development process.
a. idea generation
b. commercialization
c. test marketing
d. business analysis
e. screening
273. Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a
very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the
new material in all of its carpeting and reducing its prices. This is an example of a(n)
a. aesthetic modification.
b. line extension.
c. material adjustment.
d. functional modification.
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e. quality modification.
274. A _________ works outside established organizational divisions and has greater flexibility to apply innovative
approaches to new products and markets.
a. Market manager
b. Venture team
c. Brand manager
d. Product manager
e. Marketing manager
275. 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.
a. concept testing.
b. business analysis
c. idea screening
d. idea generation.
e. test marketing.
276. 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.
a. transfer
b. reposition
c. adapt
d. update
e. revitalize
277. Jason Robinson, a dentist, finds that he is not bringing in enough revenue to cover his expenses. He would like to
schedule more patients, but he finds that in almost every time slot, he is seeing an existing patient. Jason’s difficulty in
expanding his practice involves the aspect of service called
a. slotting.
b. perishability.
c. credence.
d. inseparability.
e. heterogeneity.
278. ____ is the development of a product that is closely related to one or more products in a firm’s existing product line
but is designed specifically to meet somewhat different customer needs.
a. Quality modification
b. Line extension
c. Aesthetic modification
d. Feature modification
e. Product mix modification
279. Explain the role of “promises” and “trust” in the successful marketing of a service.
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280. Why do brands require repositioning? What are the ways in which repositioning can be accomplished?
281. List and discuss the major phases of the new-product development process.
282. Compare and contrast a product manager and a brand manager.
283. Explain how the characteristics of services affect the development and management of marketing mixes.
284. List and explain the six distinguishing characteristics of service products. Then discuss some of the marketing issues
and problems associated with each characteristic
285. Discuss the major approaches that marketers use to differentiate their products.
286. Why and how might an organization delete existing products?
287. Describe product positioning. List and explain the bases for positioning.
288. What is concept testing, and why is it important?
289. What specific marketing problems are experienced by a provider of high-contact services that are not experienced by
a provider of low-contact services?
290. How can a service marketer smooth the fluctuations in demand from times of peak demand to times of off-peak
demand?
291. Why is it often difficult for organizations to delete products?
292. Compare and contrast line extensions and product modifications.
293. All services suffer from heterogeneity. Explain this problem, and discuss different ways that heterogeneity can occur
in service delivery.
294. Identify and describe the three major ways to modify existing products, and give an example of each.
295. What exactly is analyzed during the business analysis phase of new-product development?
296. Discuss the advantages and problems associated with test marketing.
297. How does the promotion of services differ from the promotion of goods?
298. Identify and explain the dimensions of product quality.
299. In what ways do perishability and intangibility affect the pricing of services?
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Answer Key
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