1. Compare and contrast line extensions and product modifications.
2. Identify and describe the three major ways to modify existing products, and give an example of each.
3. List and discuss the major phases of the new-product development process.
4. What is concept testing, and why is it important?
5. What exactly is analyzed during the business analysis phase of new-product development?
6. Discuss the advantages and problems associated with test marketing.
7. Discuss the major approaches that marketers use to differentiate their products.
8. Identify and explain the dimensions of product quality.
9. Why and how might an organization delete existing products?
10. Why is it often difficult for organizations to delete products?
11. Compare and contrast a product manager and a brand manager.
12. Describe product positioning. List and explain the bases for positioning.
13. Why do brands require repositioning? What are the ways in which repositioning can be accomplished?
14. Why are line extensions more common than new products?
a.
They are higher risk and more expensive.
b.
They are guaranteed to succeed in the marketplace.
c.
They are less expensive and lower-risk.
d.
They require no market research.
e.
Modifications to existing products are very easy.
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Comprehension
15. Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of
a.
product modifications.
b.
functional modifications.
c.
aesthetic modifications.
d.
line extensions.
e.
product lining.
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Application
16. When Jeep Wrangler produces the new year’s model vehicle, they discontinue production of last year’s. However,
when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep
Wrangler’s new-product strategy is an example of a(an) _____ while Apple’s is an example of a(an)______.
a.
product modification; quality modification
b.
product modification; line extension
c.
quality modification; product modification
d.
functional modification; product modification
e.
line extension; product modification
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
Bloom’s: Comprehension
17. If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all
of its other Cool Whip products, this would be an example of
a.
b.
c.
d.
e.
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Application
18. ____ 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
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
19. What is the 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.
In both cases an existing product is altered, but the alteration is more dramatic with a product modification
than it is with a line extension.
c.
Line extensions are designed to better meet the needs of the existing market segment while product
modifications target entirely new segments of the market.
d.
With product modifications, the original product is replaced in the product line while both the old and the new
products remain in the case of line extension.
e.
Line extensions are strictly aesthetic changes to an existing product whereas product modifications consist of
changes in quality and functionality.
A-Head: Managing Existing Products
Bloom’s: Application
20. In product modification, the first issue to consider is whether
a.
existing customers can perceive that a product modification has been made.
b.
the product is modifiable.
c.
quality is modified.
d.
modification will make the product more consistent with customers’ desires.
e.
modification will provide greater satisfaction to the consumer.
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
21. 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.
modification should make the product more consistent with customers’ desires.
b.
competing companies should not be aware of planned product modifications.
c.
modification should change customers’ desires to provide greater satisfaction.
d.
management must perceive the modification as a reasonable and necessary action.
e.
production costs and materials needed should be limited.
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
22. Quality modifications are changes that relate to a product’s
a.
dependability and durability.
b.
effectiveness and versatility.
c.
price and availability.
d.
reliability and value.
e.
value and durability.
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Comprehension
23. 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.
e.
quality modification.
e
Moderate
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Managing Existing Products
Bloom’s: Application
24. Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the
organization?
a.
Aesthetic
b.
Operational
c.
Benefit
d.
Functional
e.
Quality
e
Easy
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Managing Existing Products
Bloom’s: Knowledge
25. Changes that affect a product’s versatility, effectiveness, convenience, or safety are called ____ modifications.
a.
functional
b.
formal
c.
aesthetic
d.
quality
Easy
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
e.
package
26. Which of the following is the best example of a functional modification?
a.
Campbell’s puts more of a higher-grade chicken in its classic chicken noodle soup.
b.
A smoke alarm is modified to be more sensitive to smoke at farther distances.
c.
Motorola uses a battery that allows its cell phones to charge back up more quickly.
d.
The manufacturer of the primer and sealer, Kilz, introduces an odorless variety.
e.
Friskies changes the ingredients in its cat food to a taste that is preferred by most cats.
Moderate
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Managing Existing Products
Bloom’s: Application
27. Functional modifications usually require that the product be
a.
less specific.
b.
limited to its functions.
c.
more appealing.
d.
more technical.
e.
redesigned.
e
Easy
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
28. When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on
for more than one hour. This improvement would best be classified as a(n)
a.
product line extension.
b.
quality modification.
c.
aesthetic modification.
d.
market extension.
a
Moderate
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
e.
functional modification.
29. 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
a
Easy
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
30. Sony’s design of its new large-screen television sets with smoked-glass control panel covers 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(an)
___.
a.
functional; aesthetic modification
b.
aesthetic; functional modification
c.
aesthetic; quality modification
d.
aesthetic; line extension
e.
quality modification; functional modification
Moderate
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Application
31. The major drawback to using aesthetic modifications is
a.
the cost of the modifications.
b.
that the value of the modification is determined subjectively.
e
Moderate
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Managing Existing Products
Bloom’s: Application
c.
the need for redesign of the product.
d.
a possible decrease in market share.
e.
that there is no differentiation for the product in the market.
32. 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.
image
e.
feature
a
Moderate
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Application
33. 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
c
Moderate
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
A-Head: Managing Existing Products
Bloom’s: Application
Easy
MARK.PRID.16.12.01 – LO: 12–01
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Managing Existing Products
Bloom’s: Knowledge
34. Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new
chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is
risky as well.
a.
performing marketing research.
b.
keeping tabs on the actions of competitors.
c.
not introducing new products.
d.
generating new product ideas.
e.
addressing customers’ concerns about products.
35. A complex product development process, including an extensive business analysis to determine the possibility of
success, are hallmarks of a
a.
genuinely new product.
b.
radically new product.
c.
new product failure.
d.
controlled new product.
e.
market share advance.
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
36. A genuinely new product–like the iPhone once was–offers
a.
lower prices than existing products.
b.
at least two new product features.
c.
innovative benefits to consumers.
d.
better value than existing products.
e.
at least two new product features at a lower price.
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Developing New Products
Bloom’s: Application
37. All of the following are major steps in developing new products except
a.
test marketing.
b.
evaluation of competitors’ efforts.
c.
screening.
d.
business analysis.
e.
idea generation.
Moderate
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Comprehension
38. Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine
which food items would appeal to them. Outback is currently in the ____ phase of new-product development.
a.
business analysis
b.
product development
c.
test marketing
d.
screening
e.
idea generation
Moderate
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Developing New Products
Bloom’s: Application
39. When marketers at Nabisco met with groups of young adults to identify the types of snacks that young people want,
they were engaging in which phase of new-product development?
a.
Idea generation
b.
Business analysis
c.
Test marketing
d.
Commercialization
e.
Product development
a
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
Bloom’s: Comprehension
40. Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
a.
commercialization.
b.
screening.
c.
concept testing.
d.
product development.
e.
test marketing.
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
41. 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
c
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
42. A group of managers has been assigned the task of developing a new product. They are now in the process of
assessing several ideas to determine whether they are consistent with the firm’s overall objectives and resources. The
managers are at what stage of the new-product development process?
a.
Business analysis
b.
Product testing
c.
Idea generation
d.
Commercialization
e.
Screening
e
Moderate
MARK.PRID.16.12.02 – LO: 12–02
A-Head: Developing New Products
Bloom’s: Application
43. Compared with other phases of the new-product development process, the largest number of new-product ideas is
rejected during the ____ phase.
a.
idea generation
b.
concept testing
c.
business analysis
d.
screening
e.
test marketing
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
44. The phase of new-product development in which a small sample of potential buyers are presented with a product idea
through a written or oral description in order to determine their attitudes and initial buying intentions regarding the
product is called
a.
concept testing.
b.
customer response testing.
c.
idea analysis.
d.
test marketing.
e.
screening.
a
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
45. 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.
a
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Application
46. Which of the following is the stage of the new-product development process where customers are first exposed to the
new product idea?
a.
Screening
b.
Concept testing
c.
Business analysis
d.
Product development
e.
Test marketing
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
47. Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these
ideas are consistent with Starbucks’ objectives and resources. Several product ideas were dropped after this analysis. The
next stage of development for the remaining product ideas is
a.
product development.
b.
idea screening.
c.
concept testing.
d.
business analysis.
e.
test marketing.
c
Moderate
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Application
48. Which of the following phases of new-product development is likely the least costly for the firm?
a.
Commercialization
b.
Concept testing
c.
Business analysis
d.
Product development
Moderate
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Application
e.
Test marketing
49. Karla tells Jeff that she likes his team’s idea about a new three-lace running shoe but wants him to put together some
figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-
product development process?
a.
Idea generation
b.
Business analysis
c.
Commercialization
d.
Test marketing
e.
Screening
Moderate
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
Bloom’s: Application
50. Breakeven analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development
process.
a.
screening
b.
concept testing
c.
business analysis
d.
product development
e.
test marketing
c
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
A-Head: Developing New Products
Bloom’s: Knowledge
51. “Is the demand strong enough?” is a question that marketers ask during the ____ phase of new-product development.
a.
screening
b.
concept testing
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
c.
business analysis
d.
product development
e.
test marketing
52. 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
c
Moderate
MARK.PRID.16.12.02 – LO: 12–02
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Application
53. As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-
product development process?
a.
Idea generation
b.
Commercialization
c.
Test marketing
d.
Screening
e.
Product development
e
Moderate
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Application
54. Ideally, test marketing should follow which stage in the new-product development process?
c
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
a.
Commercialization
b.
Business analysis
c.
Screening
d.
Limited production
e.
Product development
55. Kara is a member of the product development team at a company that manufactures sports equipment. During a recent
meeting, one of the team members asked “What level of quality are we building into the camping gear?” Based on this
question, Kara and her team are most likely in the ____ phase of new-product development.
a.
commercialization
b.
concept testing
c.
business analysis
d.
product development
e.
test marketing
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Application
56. The phase of the new-product development process when the organization determines the technological feasibility of
producing the product at a cost that results in a reasonable selling price is
a.
test marketing.
b.
commercialization.
c.
concept testing.
d.
product development.
e.
business analysis.
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge
e
Easy
MARK.PRID.16.12.02 – LO: 12–02
United States – BUSPROG: Analytic
United States – AK – DISC: Product
A-Head: Developing New Products
Bloom’s: Knowledge