159. The sum of a product’s physical characteristics is called product quality.
a. True
b. False
160. If you buy McDonald’s French fries in Fort Collins, Colorado, and later buy McDonald’s French fries in College
Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.
a. True
b. False
161. How a pair of jeans looks, regardless of the price, is an example of styling.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
162. Product support services are important mainly when a company wants to differentiate its products from other
products in a market that essentially have the same quality, design, and features.
a. True
b. False
163. Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.
a. True
b. False
164. Layaway plans and customer trainings are examples of product support services.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
165. The decision to drop a product should always be a unanimous decision of the management team.
a. True
b. False
166. Systematic reviews of a company’s product mix aid in determining when product deletion is necessary.
a. True
b. False
167. The phase-out approach to product deletion involves a process of continuous price increases to make as much
profit as possible before the product is finally priced out of existence.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
168. The phase-out approach to product deletion exploits any strength left in the product.
a. True
b. False
169. The run-out approach to product deletion is used for technologically obsolete products.
a. True
b. False
170. A run-out approach to product deletion allows a product to decline without changing its marketing strategy.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
171. The immediate drop approach to product deletion generates a sales spurt just before removing a product from the
market.
a. True
b. False
172. Services can involve both human and mechanical efforts.
a. True
b. False
173. Allproducts—whethergoods,services,orideas—aretosomeextentintangible.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
174. Goods can be defined in terms of their physical attributes but services cannot because they are intangible.
a. True
b. False
175. The education a student derives from attending a class is an example of intangibility of services.
a. True
b. False
176. Because services are intangible by nature, marketers should downplay the tangible cues associated with a particular
service.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
177. Both production and consumption of services occur at the same time.
a. True
b. False
178. Because of inseparability of the production and consumption of services, customers are present when a service is
produced.
a. True
b. False
179. Because of inseparability of services, customers expect a service to be provided in a particular way by a specific
individual.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
180. Services are highly perishable and cannot be inventoried for future use.
a. True
b. False
181. Because of perishability of services, service marketers cannot plan for demand that fluctuates according to day of
the week, time of day, or season.
a. True
b. False
182. People-based services are often prone to fluctuations in quality from one time period to the next.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
183. A hairstylist who gives good haircuts in the morning but tends to give haircuts of lesser quality in the evening hours
is affected by the challenges associated with intangibility of the haircut service.
a. True
b. False
184. Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.
a. True
b. False
185. The goal of building client-based relationships is to satisfy customers so well that they become very loyal and would
be unlikely to switch to competitors.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
186. Training of employees is more important in low-contact services than in high-contact services.
a. True
b. False
187. A supplementary service is the basic service experience or commodity that a customer expects to receive.
a. True
b. False
188. The ability to customize services to match the specific needs of individual customers is an advantage to service
marketers as it enables them to offer standardized packages.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
189. Intangible cues are used by service marketers to provide customers with assurance of service quality.
a. True
b. False
190. The intangibility of services results in promotion-related challenges for service marketers because it is difficult to
depict the actual performance of a service in an advertisement or to display it in a store.
a. True
b. False
191. Advertisements for services use tangible cues to help customers understand the intangible attributes associated with
a particular service.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
192. Service providers offering discounted deals to existing customers who refer new customers to them are using
existing customers as a part of their service promotion strategies.
a. True
b. False
193. Demand-based pricing relies on information concerning peak demand and off-peak demand of a particular service.
a. True
b. False
194. Demand-based pricing of a service denotes low prices during times of low demand and high prices during times of
high demand.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
195. If the quality of different service providers is likely to vary, customers seldom rely on the price-quality association.
a. True
b. False
196. The intangible nature of services often leads customers to rely on price as an indicator of quality.
a. True
b. False
197. The supply and demand of a service can be balanced by keeping the service price inflexible regardless of the time
of day, week, or year.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
198. Boththeserviceproviderandthecustomermustworktogethertoprovideandreceiveaservice’sfullvalue.
a. True
b. False
199. Because of the heterogeneity and intangibility of services, customers tend to believe company-sponsored
advertising rather than word-of-mouth communication while gathering information about a service product.
a. True
b. False
200. To manage products effectively, a product manager of an organization must be independent of other departments.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
201. Both brand and product managers operate cross-functionally in an organization.
a. True
b. False
202. A product manager of an organization is responsible for the development of new products that may be aimed at
new markets.
a. True
b. False
203. A venture team has the authority to execute plans for the development of products.
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services
204. Venture teams work outside of established organization divisions.
a. True
b. False
205. Venture team members usually come from the same functional area within a firm.
True
a. True
b. False
Chapter 11 – Developing and Managing Goods and Services