75. 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
76. 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.
77. 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.
78. 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
79. ____ 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/company reputation; durability/technical suitability
e.
Trusted brand name/ease of repair; reliability/company reputation
80. 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.
81. 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.
82. 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.
83. 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.
84. 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
85. 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.
86. 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.
87. 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.
88. 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.
89. 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.
90. 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.
91. 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
92. 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.
runout.
93. 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
94. A runout 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.
95. 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.
96. 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
97. 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
98. 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.
99. 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
100. 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.
101. 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.
102. 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.
103. 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
104. 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
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.
105. Refer to Scenario 12.1. 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
106. 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.
107. 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
108. 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.
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.
109. 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
110. 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
111. 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
112. Refer to Scenario 12.2. Because some products are not doing well, Jonathan Moore thinks that the
company should set up a procedure to evaluate each product so that management will know when and
how a product should be discontinued. He is suggesting a
a.
product-drop decision.
b.
discontinuance procedure.
c.
performance review.
d.
closing system.
e.
systematic review.
TRUE/FALSE
113. Many of the so-called new products that are launched each year are in fact line extensions.
114. Line extensions are less common than other new products because line extensions are more expensive
and more risky.
115. Quality modifications never seek to reduce product quality.
116. Quality modification of an existing product aims at changing the product’s safety, convenience, or
versatility.
117. Functional modifications usually require that the product be redesigned.
118. Functional modifications make an existing product more durable.
119. Functional modifications help an organization achieve and maintain a progressive image.
120. Automobile makers rely heavily on aesthetic modifications.
121. The major drawback in using aesthetic modifications is that their value is determined subjectively.
122. New products are classified solely as innovations that have never been sold by any organization.
123. Firms marketing a quality product that generates strong sales can afford to keep expenses down by
eliminating new-product development.
124. Sales personnel are an external source for new product ideas.
125. Concept testing gives reliable feedback, but at a relatively high cost.
126. Concept testing presents a small sample of potential buyers with a trial version of the new product to
determine their initial reactions.
127. The business analysis stage of new-product development explores how well the new product fits in
with the firm’s existing product mix.
128. Business analysis provides a tentative sketch of a product’s profitability.
129. An important question in the business analysis stage of new-product development is, “Will this product
meet our profit goal?”
130. Estimates of sales are an important component of business analysis.
131. The product development stage determines the technical feasibility of producing the new product.
132. Relatively few product ideas are put into the product development stage.
133. Test marketing is a sample launching of the entire marketing mix.
134. Test marketing is an extension of the product screening process.
135. Test marketing should be conducted when a product has been given a low probability of success.
136. New-product development does not include planning for advertising.
137. Test marketing is used by companies of all sizes, primarily because of the perceived risk of product
failure on the open market and the associated consequences.
138. Time spent in test marketing can benefit a firm’s competitors.
139. During the commercialization phase of new-product development, plans for full-scale manufacturing
and marketing are refined and settled.
140. The majority of new-product projects initiated by major companies reach the commercialization stage.
141. Designing a product that customers perceive as different from competing products is an example of
product differentiation.
142. Consistency of product quality means giving consumers the quality they expect every time they
purchase a product.
143. The concept of product quality is the same from consumer to consumer and from consumer markets to
organizational markets.
144. The sum of all the product’s physical characteristics is called product quality.
145. 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.
146. Product design is the process of creating and designing products so that consumers perceive them as
different from competing products.
147. How a pair of jeans looks, regardless of the price, is an example of styling.
148. Product support services are important mainly for products that are mechanical in nature.
149. Delivery, installation, financing, repair, warranties, and guarantees are all examples of product
features.
150. Warranties and customer training are examples of customer services.
151. The decision to drop a product should always be a unanimous decision of the management team.
152. Systematic reviews of a company’s product mix aid in determining when product deletion is necessary.
153. 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.
154. The phase-out approach to product deletion exploits any strengths left in the product.
155. The runout approach to product deletion is used for technologically obsolete products.
156. A runout approach to product deletion lets the product decline without changing the marketing
strategy.
157. The dropping approach to product deletion generates a sales spurt just before removing the product
from the market.
158. To manage products effectively, the product manager must be independent of other departments.
159. Product managers can be responsible for a single product, a product line, or several products.
160. A brand manager is a type of product manager.
161. There is no best approach to managing products.
162. Brand and product managers operate cross-functionally.
163. Product managers are most useful in the development of new products.
164. A venture team has the authority to execute plans for the development of products.
165. Venture teams work outside of established organization divisions.
166. Venture team members usually come from the same functional areas within the firm.