1. Compare and contrast a line extension and a product modification.
2. Identify and describe the three major ways to modify existing products, and give an example of each.
Chapter 11 – Developing and Managing Goods and Services
3. List and discuss the seven phases of the new-product development process.
4. Explain the concept testing phase of the new-product development process, and state its importance.
Chapter 11 – Developing and Managing Goods and Services
5. Explain the business analysis phase of the new-product development process.
Chapter 11 – Developing and Managing Goods and Services
6. Discuss the advantages of test marketing. Also, state the risks associated with it.
Chapter 11 – Developing and Managing Goods and Services
7. Discussthethreeapproachesthatmarketersusetodifferentiatetheirproductsfromtheircompetitors’products.
8. Identify and explain the dimensions of product quality.
Chapter 11 – Developing and Managing Goods and Services
9. Describe product positioning. List and explain the bases for positioning.
10. Why do brands require repositioning? What are the ways in which repositioning can be accomplished?
Chapter 11 – Developing and Managing Goods and Services
11. Explain the concept of product deletion. List and explain the ways in which a product can be deleted.
12. Why is it often difficult for organizations to delete products?
Chapter 11 – Developing and Managing Goods and Services
13. List and explain the six distinguishing characteristics of services.
14. Explaintherolesof“promises”and“trust”insuccessfulmarketingofaservice.
Chapter 11 – Developing and Managing Goods and Services
15. How do providers of time-sensitive services smooth the fluctuations in demand from times of peak demand to times
of off-peak demand?
16. Services are vulnerable to heterogeneity. Explain this issue, and discuss different ways in which heterogeneity can
occur in service delivery.
Chapter 11 – Developing and Managing Goods and Services
17. Explain how the characteristics of services affect the development of marketing mixes.
18. How do marketers promote services?
Chapter 11 – Developing and Managing Goods and Services
19. How does high degree of customer contact affect service performance?
20. In what ways do perishability and intangibility affect the pricing of services?
Chapter 11 – Developing and Managing Goods and Services
21. Discuss the factors that affect the delivery of services. How can service marketers use these factors to their
advantage?
22. Compare and contrast a product manager and a brand manager.
Chapter 11 – Developing and Managing Goods and Services
23. Line extensions are more common than new products because line extensions:
a. only focus on increasing sales within the existing market segment.
b. are guaranteed to succeed in the marketplace.
c. are a less expensive and lower-risk alternative for increasing sales.
d. require no market research.
e. do not keep the original product in the line after extension.
24. Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coca-Cola, to name a few. These are
examples of:
a. product modification.
b. brand extension.
c. product bundling.
d. line extension.
e. brand equity.
Chapter 11 – Developing and Managing Goods and Services
25. WhenChryslerproducesnewmodelvehicles,itdiscontinuesproductionofpreviousyear’smodel.However, when
Apple brings out a new iPhone, it continues to produce the previous version for at least some period of time.
Chrysler’snewproductstrategyisanexampleofa(n)_____,whileApple’sstrategyisanexampleofa(n)_____.
a. functional modification; quality modification
b. product modification; line extension
c. product lining; product bundling
d. product extension; brand extension
e. brand extension; product bundling
26. If the manufacturer of Cool Whip were to introduce a chocolate-flavored whipped cream and still continue to
produce its existing flavors of whipped cream, this would be an example of a:
a. brand extension.
b. line extension.
c. functional modification.
d. quality modification.
e. product bundling.
Chapter 11 – Developing and Managing Goods and Services
27. _____ 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. Brand extension
b. Line extension
c. Brand stretching
d. Product bundling
e. Product churning
28. Which of the following is a primary distinction between a line extension and a product modification?
a. A product modification results in a completely new product, while a line extension is simply changing an old
product.
b. Both line extension and product modification involve alteration of an existing product, but the alteration is
more dramatic with a product modification than it is with a line extension.
c. A line extension is designed to aptly meet the needs of an existing market segment, while a product
modification targets entirely new market segments.
d. With a product modification, the original product is replaced in the product line, while with a line extension,
the original product remains intact in the product line.
e. A line extension consists of strictly aesthetic changes to an existing product, whereas a product modification
consists of changes in quality and functionality.
Chapter 11 – Developing and Managing Goods and Services
29. In product modification, three conditions must be met to improve a firm’s product mix: the product must be
modifiable, customers must be able to perceive that a modification has been made, and:
a. the modification should make the product more consistent with customers’ desires.
b. competing companies should not be aware of planned product modifications.
c. management must avoid functional modifications in the product to evade any risk associated with the safety
element of the modified product.
d. managementmustessentiallyenhancethemodifiedproduct’squalityandloweritspricetoincreaseits
customer base.
e. resources needed for product modification should be limited in order to lower production costs.
30. 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 also reduced its prices. This is an example of a(n):
a. aesthetic modification.
b. line extension.
c. brand extension.
d. functional modification.
e. quality modification.
Chapter 11 – Developing and Managing Goods and Services
31. Which of the following best illustrates functional modification?
a. Campbell’s adds large chunks of higher-grade chicken in its classic chicken noodle soup.
b. A smoke detector is upgraded to be more sensitive to smoke at farther distances.
c. Motorola uses long-lasting batteries for its cell phones to facilitate quicker charging.
d. A manufacturer of primer and sealer introduces an odorless variety.
e. Friskies changes the ingredients in its cat food to a taste that is preferred by most cats.
32. Conair, a manufacturer of appliances and personal care products, adds an electrical component to its curling iron
that automatically switches off the curling iron when it has been idle for more than an hour. This improvement
would best be classified as a(n):
a. product line extension.
b. quality modification.
c. aesthetic modification.
d. brand extension.
e. functional modification.
Chapter 11 – Developing and Managing Goods and Services
33. 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
34. Sony’s design of its new large-screen television set with smoked-glass control panel cover and other visual changes
wouldbeclassifiedasa(n)_____modification;changestomaketheTV’sremoteeasiertousewouldbeclassified
as a(n) _____ modification.
a. functional; aesthetic
b. aesthetic; functional
c. functional; quality
d. quality; aesthetic
e. quality; functional
Chapter 11 – Developing and Managing Goods and Services
35. The major drawback of using aesthetic modifications in products is:
a. that the cost of the modifications is very high.
b. that the value of the modification is determined subjectively.
c. the need for redesign of the product.
d. its dependency on quality and functional modifications.
e. that there is no differentiation for the product in the market.
36. 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.
a. aesthetic
b. functional
c. quality
d. operational
e. feature
Chapter 11 – Developing and Managing Goods and Services
37. Morgan is interested in upgrading to a new sofa for her apartment. She browses the Internet to check new models
ofherfavoritesofabrandandgetsinformationonthestyleandcolorofcouches.However,shecan’tactuallysit
on a new model of sofa to determine its comfort level. Morgan is able to evaluate the _____ modifications to the
sofa, but not the _____ modifications.
a. quality; functional
b. quality; aesthetic
c. aesthetic; functional
d. functional; quality
e. functional; aesthetic
38. All of the following are major steps in developing new products except:
a. test marketing.
b. competitor analysis.
c. screening.
d. commercialization.
e. idea generation.
Chapter 11 – Developing and Managing Goods and Services