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57. 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
58. Marcellis is a product manager for a major electronics company. His current project is the development and
introduction of a new smartphone. Since there are a number of smartphones currently out on the market, Marcellis is
concerned about product failure. Currently, Marcellis and his team are in the screening phase of the new product
development process. Has his team already passed the phase which is best able to measure the product failure concern?
a.
Yes, the best phase is the idea screening phase.
b.
Yes, the best phase is the concept testing phase.
c.
No, the best phase is the business analysis phase.
d.
Yes, the best phase is the test marketing phase.
e.
No, the best phase is the test marketing phase.
59. Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar
detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating
skipping the ____ phase of the new-product development process.
a.
screening
b.
test marketing
c.
product development
d.
business analysis
e.
idea generation
60. The test-marketing stage
a.
is an extension of the screening stage.
b.
should come immediately after business analysis.
c.
ensures that the product will not fail.
d.
is a sample launching of the entire marketing mix.
e.
prevents competitors from copying the product.
61. Select the true statement concerning test marketing.
a.
Test marketing is simply an extension of the screening and developing stages.
b.
Test marketing should be conducted after all the marketing mix variables have been finalized.
c.
Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
d.
If the product is successful in the test market, then it is ensured of success upon total introduction.
e.
Large corporations usually launch test-marketing efforts in one small area at a time.
62. PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the
following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?
a.
There are research and audit services available.
b.
Retailers would be cooperative.
c.
Testing efforts would not be easily jammed by competitors.
d.
Tourism is a major industry in the area.
e.
The city has stable year-round sales of soft drinks.
63. 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
64. If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test
marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ____ to reduce
the validity of the other firm's results.
a.
testing interference
b.
leadership pricing
c.
jamming
d.
test marketing
e.
stress marketing
65. One disadvantage of test marketing a new product is that
a.
the product is distributed on a regional basis.
b.
competitors may copy the product.
c.
the results give little indication of the product's future success.
d.
price, advertising, and packaging cannot be varied from market to market.
e.
it might fail before it can be commercialized.
66. Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and
manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process.
a.
test marketing
b.
business analysis
c.
concept testing
d.
product development
e.
commercialization
67. 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
68. 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.
69. Often, a new product is launched in stages during commercialization. This gradual introduction of the product is
known as
a.
market development.
b.
regional commercialization.
c.
roll-out.
d.
market extension.
e.
competitive jamming.
70. Which of the following is a disadvantage of gradually introducing a product to market?
a.
It reduces the risk of introducing a new product.
b.
It is easier logistically to introduce it all at once.
c.
It is difficult to slow down production enough for a gradual introduction.
d.
It allows competitors to monitor the results of the new product.
e.
It prevents product differentiation based on geographical differences.
71. 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
72. Three major ways in which marketers engage in product differentiation are
a.
product quality, product design and features, and product support services.
b.
product quality, product support services, and packaging.
c.
product support services, product design and features, and product positioning.
d.
product positioning, product quality, and product management.
e.
product positioning, product design and features, and product promotion.
73. Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie
purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena
probably based her purchase decision on ____, whereas Katie apparently based her decision on ____.
a.
price; product quality
b.
real product differences; perceived product image
c.
perceived product image; product quality
d.
product value; perceived product image
e.
product design; product quality
74. The ability of a product to provide the same level of quality over time is called
a.
consistency.
b.
longevity.
c.
variability.
d.
status.
e.
image.
75. The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is
a.
quality.
b.
consistency.
c.
durability.
d.
functionality.
e.
design.
76. Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus
is not as high. This demonstrates that the dimension of ____ is relative or difficult to describe without a basis of
comparison.
a.
consistency of quality
b.
level of quality
c.
differentiation
d.
product features
e.
product positioning
77. ____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important
characteristics of quality for business markets.
a.
Reliability/ease of use; technical suitability/ease of repair
b.
Technical suitability/reasonable price; trusted brand name/ease of repair
c.
Durability/technical suitability; company reputation/ease of repair
d.
Ease of maintenance/durability; company reputation/technical suitability
e.
Trusted brand name/ease of repair; reliability/company reputation
78. Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those
made for racing. In addition, Schwinn has added several new features to its bike that are attractive to individuals who
work as “bike messengers” in large, urban cities. Since no other company makes a bike that has these specific attributes,
Schwinn is creating
a.
a commercialization.
b.
consistency of quality.
c.
level of quality.
d.
product positioning.
e.
product differentiation.
79. When determining how a product is conceived, planned, produced, and even its physical appearance and its specific
characteristics, one is really talking about the product's
a.
positioning.
b.
level and consistency of quality.
c.
ability to meet customer service needs.
d.
design, styling, and level of quality.
e.
design, styling, and features.
80. The three major ways to modify a product include
a.
aesthetic, quality, and functional changes.
b.
extensions, generations, and upgrades.
c.
color, size, and quantity modifications.
d.
styling, product features, and product design.
e.
quality, quantity, and design.
81. TerraCycle is a company that takes waste and “upcycles” it into new products. Currently, TerraCycle markets a
bicycle rack to schools, parks, and cities, that is made of recycled plastic. This rack does not scratch or damage the bikes
as concrete and steel racks can, and is eco-friendly since it is made of waste material. Terracycle is differentiating its
product based on
a.
intended use.
b.
support services.
c.
durability.
d.
product features.
e.
product quality.
82. Which of the following is the best definition of product features?
a.
The things a product does that provide benefits to the customer
b.
Mechanical efforts or activities a company provides that add value to a product
c.
Specific design characteristics that allow a product to perform certain tasks
d.
How a product is conceived, planned, and produced with the necessary functions
e.
The physical appearance of a product
83. To differentiate their products, companies sometimes emphasize the product support services that they offer. This is
especially true when
a.
the company's prices are higher than the competition's.
b.
the company introduces a new product.
c.
consumers are willing to pay for product support services.
d.
consumers perceive all products in a market to have essentially the same quality, design, and features.
e.
the quality of the company's products is inferior to the quality of competing products.
84. The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery
and installation, financing arrangements, and repairs. The Home Depot is differentiating through
a.
product ancillaries.
b.
company quality.
c.
customer services.
d.
company features.
e.
product features.
85. Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth
noticed a problem with the way one of the pockets was strung. Since it was a weekend, he didn’t expect to have it
repaired. However, when he called the store to leave a message, someone answered the phone. She gave Seth a number
where he could call a repair representative who would come straight to Seth’s house within an hour. Brunswick Billards is
most likely differentiating itself through
a.
support of its level of quality.
b.
product support services.
c.
a help line feature.
d.
product features.
e.
customer requests.
86. Product deletion can best be described as the process of deleting a product from the product mix when it
a.
is perceived as a failure by top management.
b.
is reviewed negatively by a systematic review board.
c.
increases production costs and decreases profits.
d.
no longer responds to promotional efforts.
e.
no longer satisfies a sufficient number of customers.
87. Product deletion
a.
tends to be an easy task for most organizations.
b.
may be opposed by management.
c.
involves immediate termination.
d.
is a matter of indifference to customers.
e.
usually occurs only with convenience items.
88. A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on
the overall effectiveness of the firm's product mix, is called a(n)
a.
evaluation study.
b.
formal evaluation.
c.
product inspection.
d.
systematic review.
e.
reassessment examination.
89. The product deletion process is similar to the ____ step of the new-product development process because both involve
deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.
a.
idea generation
b.
screening
c.
product development
d.
test marketing
e.
business analysis
90. Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by
letting the product decline and not change the current marketing strategy. This method of deletion is called
a.
business analysis.
b.
immediate drop.
c.
screening.
d.
phase-out.
e.
run-out.
91. If Splenda decides its “Splenda with Vitamins” is not reaching profit expectations and simply allows the product to
decline without any change in marketing strategy, it is using a(n) ____ deletion strategy.
a.
run-out
b.
immediate drop
c.
slow-down
d.
phase-out
e.
drop-down
92. A run-out policy of product deletion
a.
lets the product decline without changing the product strategy.
b.
is an immediate-drop decision.
c.
exploits any strengths left in the product.
d.
raises the price of the product continually to secure as much profit as possible before the product is priced out
of the market.
e.
occurs when production cannot keep pace with demand because of material shortages.
93. Dropping an unprofitable product immediately is the best strategy when
a.
all advertising and promotional efforts have been exhausted.
b.
customers have a negative outlook on other products.
c.
losses are too great to prolong the product's life.
d.
the product's performance cannot be improved.
e.
there is low compatibility with the firm's business strategies.
94. If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog
food, this position would probably hold the title of ____ manager.
a.
brand
b.
area
c.
product
d.
sales
e.
marketing
95. A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an
organization.
a.
product marketer
b.
brand manager
c.
market manager
d.
product manager
e.
line manager
96. 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.
97. If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of
____ manager.
a.
product
b.
sales
c.
marketing
d.
advertising
e.
brand
98. Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for
products aimed at nursing homes and extended care facilities. Josh’s job is that of a(n)
a.
product manager.
b.
area manager.
c.
director of operations.
d.
market manager.
e.
sales coordinator.
99. Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the
feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting
department. His present position can be described as a
a.
product manager.
b.
brand manager.
c.
consulting team member.
d.
member of a venture team.
e.
market account manager.
100. The members of a venture team come from
a.
the marketing department.
b.
a consulting firm.
c.
the research and development department.
d.
the production and finance departments.
e.
different functional areas of an organization.
101. The following organizational approaches accomplish tasks necessary to develop and manage products: market
manager approach, product manager approach, and the ____ approach.
a.
brand manager
b.
functional team
c.
multiproduct manager
d.
special projects
e.
venture team
102. 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
a.
quality modification.
b.
aesthetic modification
c.
functional modification
d.
brand extension
e.
product line extension
104. Scenario 12.1
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.
Refer to Scenario 12.1. Cheetos produces several cheese snack products and is considering a new Cheetos brand of
crackers. This new Cheetos brand of crackers would most likely be an example of
a.
a product modification.
b.
a line extension.
c.
a quality modification.
d.
a functional extension.
e.
an aesthetic modification.
105. Scenario 12.1
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.
Refer to Scenario 12.1. In 2012, Cheetos was in which phase of new-product development?
a.
Idea screening
b.
Product development
c.
Test marketing
d.
Business analysis
e.
Idea generation
106. Scenario 12.1
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.
Refer to Scenario 12.1. Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining
inventory to a warehouse club. This would be an example of a(n)
a.
strategy for the maturity phase.
b.
phase out product deletion strategy.
c.
immediate-drop decision.
d.
pullout product deletion policy.
e.
return to test marketing.
107. Scenario 12.2
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.
Refer to Scenario 12.2. The decision to delete the industrial product line of ice chests is an example of deleting a product
through a(n) ____, while the decision to drop the thermal underwear line is an example of a(n) ____.
a.
run-out; phase out
b.
phase-out; immediate drop
c.
immediate drop; run-out
d.
immediate drop; phase-out
e.
phase-out; run-out
108. Scenario 12.2
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.
Refer to Scenario 12.2. Polar management is currently in which stage of new product development?
a.
idea generation
b.
screening
c.
concept testing
d.
product development
e.
test marketing
109. Scenario 12.2
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.
Refer to Scenario 12.2. 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
110. Scenario 12.2
Use the following to answer the questions.
