Chap009 Marketing

Chapter 09Developing New Products and Services Multiple Choice Questions 1. Advertising Age named its CEO Marketer of the Decade, Fortune rated it as the world's most admired company and Bloomberg Businessweek perennially identifies it as the most innovative company in the world. This firm is A. B. C. D. E. IBM Microsoft 3M Kodak Apple 2. The Apple II, Macintosh, iPod, iPhone, iPad, and CarPlay are all examples of Apple's commitment to __________. A. B. C. D. E. sustainable procurement social responsibility new product development using renewable resources respecting its workforce 3. The late Steve Jobs oversaw or invented innovations that revolutionized six industries. Which industry below is NOT one of them? A. B. C. D. E. music smartphones personal computers cable television tablet devices 9-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4. The Apple innovation that leading car manufacturers are incorporating into their offering that allows users a "smarter, safer, and more fun way to use iPhone in the car" is referred to as A. B. C. D. E. iPod iCloud iCar iPad CarPlay 5. A product refers to A. a tangible good received in exchange for a person's time and effort. B. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. C. a good that has in some way been altered, combined, or improved and sold to organizational buyers. D. is a thought that leads to an action such as a concept for a new invention. E. a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. 6. A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as __________. A. B. C. D. E. a utility bundle a product a service an idea merchandise 7. A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange A. B. C. D. E. only for legal tender (money). for providing value. only for barter. for a person's time and effort. for money or something else of value. 9-2 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 8. A product is a good, service, or idea consisting of a(n) __________ that satisfy consumers' needs and is received in exchange for money or something else of value. A. promise or commitment exchanged between a seller and a buyer B. bundle of tangible and intangible attributes C. assortment of value-possessing activities D. array of physical attributes E. collection of tangible qualities 9. As a marketing term, __________ generally includes not only physical goods, but also services and ideas as well. A. B. C. D. E. marketing invention merchandise product concept 10. A good has tangible attributes that a consumer's __________ can perceive. A. B. C. D. E. cognitive intelligence vision knowledge of past experiences five senses emotional intelligence 11. A product that has tangible attributes that a consumer's five senses can perceive is referred to as a(n) A. B. C. D. E. good. service. product concept. new idea. artifact. 12. Goods can be divided into __________ goods and __________ goods. A. B. C. D. E. functional; aesthetic required; desired tactile; conceptual durable; nondurable product; service 9-3 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13. Which of the following statements regarding goods is most accurate? A. In order to be classified as a good, an item must appeal to all five senses. B. Music is not considered a good because it only involves a single sense - hearing. C. Some goods also have intangible attributes. D. To market a good that contains visual attributes, you cannot use an auditory medium. E. The aroma of chocolate chip cookies is considered an idea because it affects one's senses. 14. The division of products into durable and nondurable goods helps to __________. A. B. C. D. E. comply with NAICS guidelines address environmental concerns comply with ISO 9000 requirements classify products for tax purposes provide direction for marketing actions 15. Which of the following statements regarding goods is most accurate? A. Nondurable goods would rely more on advertising than durable goods. B. Durable goods would benefit more on advertising than nondurable goods. C. There is little if any difference between marketing actions between durable and nondurable goods. D. Nondurable goods would rely more on personal selling than durable goods. E. The durable and nondurable classification applies to services as well as to products. 16. A __________ is defined as an item consumed in one or a few uses. A. B. C. D. E. durable good convenience good specialty good shopping good nondurable good 17. A nondurable good is defined as a(n) A. item consumed in one or a few uses. B. item that usually lasts over an extended number of uses. C. item that lasts at least one year without becoming obsolete. D. product purchased only for the use of ultimate consumers. E. product used in the production of other products. 9-4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 18. Items consumed in one or a few uses, such as food and fuel, are referred to as __________. A. B. C. D. E. services perishable goods durable goods nondurable goods disposable goods 19. Among consumer products, advertising and wide distribution are especially important for A. B. C. D. E. durable goods. specialty products. nondurable goods. production goods. semidurable goods. 20. Which of the following is the best example of a nondurable good? A. B. C. D. E. laundry detergent shoes insurance iPod laser surgery 21. Which of the following is the best example of a nondurable good? A. B. C. D. E. automobile e-reader baseball gasoline shoes 22. Advertising is most important for which of the following products? A. B. C. D. E. bicycle toaster orange juice deck furniture watch 9-5 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Products that usually last over many uses. reliable products. D. C. B. imperishable goods. C. silverware caviar marketing research chewing gum voting 9-6 Copyright © 2016 McGraw-Hill Education. C. 24. B. such as cars and appliances. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. Cars and appliances are classified as A.23. C. . E. durable goods. Which of the following is considered a durable good? A. E. B. B. item that lasts at least one year without becoming obsolete. nondisposable goods. item that usually lasts over an extended number of uses. product used in the production of other products. product purchased only for the use of ultimate consumers. Durable goods emphasize which of the following elements of the promotional mix? A. D. imperishable goods. E. E. All rights reserved. 25. A durable good is defined as a(n) A. D. D. are referred to as A. reliable products. nondisposable goods. item consumed in one or a few uses. C. endurable goods. durable goods. B. 26. sales promotion personal selling advertising public relations direct marketing 27. reusable goods. E. any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. 30. A. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. services contribute about the same services contribute about half as much services contribute about twice as much services contribute about one quarter as much services are not a component of GDP 9-7 Copyright © 2016 McGraw-Hill Education. B.S. Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as __________. any activity required for the production of a good that cannot be completed "inhouse" and must be outsourced to another firm. D. the human (nonmechanical) component that is part of the manufacturing process. D. Services contribute how much to the U. 31. C. ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. such as technical support for a computer. gross domestic product as compared with goods? A. C. philanthropic activities performed in without expectations of monetary remuneration. B. the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Services are A. services goods products marketing mix ideas 29. C. All rights reserved. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. E. the tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. . E. B. E. Services refer to A. the activities provided to complement a tangible good. B. D.28. C. D. C. services. financial advice. E. E. goods were 50 percent of the GDP. D. B. B. goods represent a larger part of the gross domestic product than services. lamp motorcycle potato chips a marketing class environmentalism 9-8 Copyright © 2016 McGraw-Hill Education. services were worth almost $1 billion. D. goods and services contributed almost equally to the gross domestic product (GDP). production goods. 33. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 34. Intangible items such as airline trips. C. In 2012. B. C. All rights reserved. As shown in Figure 9-1 above. In 1995. E. goods. In 2012. which of the following statements is most accurate? A. Services are a smaller part of the gross domestic product than are goods. support products. Which of the following is considered a service? A. . benefits. or telephone service that an organization provides to consumers are referred to as A. Until 1980.Figure 9-1 32. 35. . In the U. online banking bathing suit silverware washing machine freedom 36. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Which of the following statements about services is most accurate? A. haircut birdfeeder theater production marketing class security 9-9 Copyright © 2016 McGraw-Hill Education. D. identical to the marketing of products or ideas since they both satisfy customer needs. an observation about an individual or group and how they use a service or product. services contribute about twice the value of goods to the GDP. C. in a practical sense. There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products. C. All rights reserved. D. a thought that leads to a product or action. C. a concept explaining the behavior of an individual or group. B. D. In marketing. 38. D. B. The marketing of services is. Which of the following is considered a service? A.S. C. B. C. observation inspiration innovation idea perception 39. Which of the following is considered an idea? A. B. A. a(n) __________ is a thought that leads to a product or action. 37. E. an inspiration that evolved from market research. E.. D. E. Only 10% of all jobs created in the United States are in the services sector. services play only a minor role in GDP on a global scale. an idea is A. B. an observation about a series of events. E. In marketing. E. Although a major contributor to the GDP nationally. C. 9-10 Copyright © 2016 McGraw-Hill Education. items purchased frequently and with a minimum of shopping effort. D. All rights reserved. products used in the production of other items. products an industrial buyer will make an effort to seek out and buy. Products that are purchased by the ultimate consumer are referred to as __________. supplies necessary for the day-to-day operations of a business. generic products end user goods personal items merchandise consumer products 42. products that are sold exclusively to for-profit businesses. 41. A. products that assist directly or indirectly in providing products for resale. D. B. products purchased by the ultimate consumer. B. B. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A. products purchased by the ultimate consumer. D. E. B. E. C. ancillary services necessary for the operation of a business.40. . C. bricks cotton fiber printing press suitcases mainframe computer 43. C. Which of the following would most likely be considered a consumer product? A. Products organizations buy that assist in providing other products for resale are referred to as __________. E. E. D. C. B. Consumer products refer to A. products organizations buy that assist in providing other products for resale. Business products refer to A. reseller goods wholesale goods business products ancillary products retail products 44. E. (2) frequency of purchase. attributes used in making the purchase decision. consumer merchandise organizational resale business 48. A. C. 9-11 Copyright © 2016 McGraw-Hill Education. a durable good. consumer segmentation characteristics. B. C. A. amount of money the customer is willing and able to spend. D. commodities industrial products wares resale products merchandise 47. D. C. B. 49. E. An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT: A. Consumer product classifications differ in terms of the: (1) effort the consumer spends on the decision. C. E. a consumer product. a nondurable good. B. number of competing or substitute products. B. E. E. D. demographics of the consumer. C. D. Business products are also referred to as __________. a business product. Business products are also referred to as __________. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. . B2B products B2C products B4B products BOB products B4C products 46. D. A. E. and (3) the A. a B2B product. Industrial products are also referred to as __________ products.45. B. C. C. shopping convenience specialty unsought supply 54. D. and awareness? A. convenience products are available A. quality. convenience products specialty products unsought products shopping products supplies 9-12 Copyright © 2016 McGraw-Hill Education. on a widespread basis at many outlets. shopping product convenience product specialty product unsought product supplies 52. 51. D. at relatively few outlets. E. B. products consumers purchase frequently and with a minimum of shopping effort. B. . B. only online from the manufacturer. items that consumers will make special efforts to seek out and buy. In terms of brand loyalty. D. In terms of promotion. C. C. consumers are aware of a brand but will readily accept substitutes for which type of product? A. 53. E. at a large number of specialty outlets. D. which of the following types of consumer product would be relatively inexpensive? A. In terms of price. C. D. E. only at convenience stores. ancillary products used to make other products work more efficiently. Convenience products refer to A. E. With respect to distribution. items for which consumers compare several alternatives on criteria such as price. E. low-cost items for which there are numerous substitutes and generic equivalents. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.50. or style. B. availability. which of the following type of product would stress price. or style. D. C. E. quality. . and style is a(n) A. E. does not know about or knows about but does not initially buy. D. buys as a result of buying others' consumer products. makes a special effort to search out and buy. Which of the following is the best example of a convenience product? A. specialty product. E.55. B. or style are referred to as __________. C. Which type of consumer product is purchased relatively infrequently and the purchase decision takes some time because the consumer compares offerings during the shopping experience? A. D. C. convenience product. A. E. quality. B. 59. shopping product. such as impulse purchases. specialty products selective products shopping products prestige products convenience products 57. D. Kindle Fire Lexus LS 460 luxury automobile flight on United Airlines Roget's Thesaurus Hidden Valley Ranch salad dressing 56. conveniently. B. C. 58. unsought product. The type of good for which the consumer compares several alternatives on such criteria as price. All rights reserved. and with a minimum of effort. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. quality. B. D. B. B2B product. compares several alternatives on criteria such as price. Shopping products refer to items that the consumer A. Items for which the consumer compares several alternatives on several criteria such as price. purchases frequently. C. convenience product shopping product specialty product unsought product discretionary product 9-13 Copyright © 2016 McGraw-Hill Education. C. at an extremely small number of outlets. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. relatively inexpensive and widely available. B. very expensive with very limited availability. B. With respect to distribution. very expensive and available at a large number of selective outlets. at a large number of selective outlets. C. shopping product convenience product specialty product unsought product discretionary product 63. consumers prefer specific brands but will accept substitutes for which type of consumer product? A. D. 61. . relatively inexpensive but very limited availability. In terms of promotion. E. D. C. D. B. E. C. shopping products are likely to be A. E. All rights reserved. 62. on a widespread basis at many outlets. at relatively few outlets. by special order from the manufacturer. shopping products are available A. B. D. In terms of brand loyalty. which of the following type of consumer product stresses product differentiation from competitors? A.60. shopping product convenience product specialty product unsought product discretionary product 9-14 Copyright © 2016 McGraw-Hill Education. fairly expensive and available at a large number of selective outlets. With respect to price and availability. products for which there are no close substitutes. D. products purchased for their prestige or high perceived value. E. quality. items that the consumer does not know about or knows about but does not initially buy. With respect to price. No reproduction or distribution without the prior written consent of McGraw-Hill Education. convenience product shopping product specialty product unsought product discretionary product 67. items for which the consumer compares several alternatives on several criteria such as price. C. 66. D. You decide to buy a new car. research mechanical specifications in Consumer Reports. specialty product unsought product discretionary product shopping product convenience product 65. B. and compare prices at several dealerships. which of the following type of consumer product would usually be very expensive? A. B. C.64. C. D. E. products a consumer will make a specific effort to search out and buy. test drive different makes and models. B. D. . or style. All rights reserved. E. E. convenience product shopping product discretionary product specialty product unsought product 9-15 Copyright © 2016 McGraw-Hill Education. C. B. Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision? A. Into which classification of consumer products would your new car purchase fall? A. Specialty products refer to A. You talk to friends about it. D. All rights reserved. D. C. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. shopping product convenience product discretionary product prepurchase product specialty product 69. E. They are only available in your area in a Waterford shop 40 miles from campus. B. consumers are very brand loyal and will not accept substitutes for which type of consumer product? A. convenience products shopping products unsought products specialty products discretionary products 9-16 Copyright © 2016 McGraw-Hill Education. E. You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. In terms of promotion. Distribution is very limited with which of the following type of consumer product? A. B. E. which of the following type of consumer product stresses status and brand uniqueness? A. B. E. C.68. B. C. specialty product convenience product shopping product unsought product discretionary product 70. C. D. . Into which classification of consumer products would the Waterford crystal serving bowls fall? A. In terms of brand loyalty. shopping product convenience product specialty product unsought product discretionary product 71. E. 9-17 Copyright © 2016 McGraw-Hill Education. convenience product shopping product discretionary product unsought product specialty product 73. Which of the following is most likely to be an example of an unsought product? A. E. many that feature the company's distinctive plaid. D. D. 74. E. B. D. Originally found only in Great Britain. This type of consumer service is referred to as a(n) A. convenience product. shopping product. snow shovel smartphone gym membership calculator burial insurance 75. clothing. Burberry is selling which classification of consumer product? A. any products associated with impulse buys at the supermarket checkout counter. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. products that people choose to ignore because they find them offensive from a moral or ethical perspective. unsought product. D. B. Unsought products are A. B. products that the consumer does not know about or knows about but does not initially want. Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry makes fine raincoats. products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle. C. C. C. items within a company's product line that do not perform as well as others in the line. C. support product. All rights reserved. . specialty product. Very infrequent purchases with some comparison shopping are characteristic of the purchasing behavior for a type of consumer product (such as a thesaurus) that a prospective buyer may not initially want. and other items. B.72. dental services would most likey be classified as a(n) A. C. which of the following strategies would most likely be used for unsought products? A. unsought product. With respect to promotion. iPod MP3 player Lexus LS 460 luxury automobile flight on American Airlines to Phoenix Roget's Thesaurus Ivory soap 78. D. specialty product. business product. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. shopping product. E. Which of the following is most likely to be an example of an unsought product? A. discretionary product. C. offering consumer and trade sales promotions establishing the uniqueness and status of the brand generating awareness differentiating the brand from competitive brands stressing price and availability in advertising 77. E. 9-18 Copyright © 2016 McGraw-Hill Education. shopping product. B. C. B. convenience product. convenience product. B.76. C. D. unsought product. B. All rights reserved. D. . E. specialty product. For these people. D. 79. A newly-invented apple peeling and coring machine for the consumer market would be considered a(n) A. Fifty percent or more of American adults have not had their teeth checked by a dentist within the last five years. shopping convenience specialty prestige unsought 82. shopping convenience specialty prestige unsought 9-19 Copyright © 2016 McGraw-Hill Education. D. column B would represent which type of product? A. All rights reserved. E. According to Figure 9-2 above. E. According to Figure 9-2 above. . C. B. C. D. B. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. column C would represent which type of product? A. E. shopping convenience specialty prestige unsought 81. According to Figure 9-2 above. C. column A would represent which type of product? A.Figure 9-2 80. For Vivienne. specialty product unsought product discretionary product shopping product convenience product 86. B. E. She went from car dealer to car dealer in several different cities searching for the lowest price on a new economy car. which of the following products will have the most limited distribution? A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A. The demand for a business product that results from the demand for a consumer product is referred to as A. D. an automobile was a(n) __________. B. D. All rights reserved.83. derived demand. 9-20 Copyright © 2016 McGraw-Hill Education. E. C. secondary demand. C. Secret antiperspirant Fuji disposable camera BP gasoline Marchesa wedding gown Sony HDTV 85. primary demand. E. shopping convenience specialty prestige unsought 84. a college student with limited financial resources. B. Vivienne. column D would represent which type of product? A. C. was considering the purchase of a new automobile. She devoted a great deal of time and energy to getting the best value for her money. D. C. D. E. Considering the classification of consumer products. sequential demand. selective demand. B. . According to Figure 9-2 above. consumer and industrial products. A heat wave results in an increased demand for air conditioners. derived and maintenance products. C. E. Honda reducing its car prices causes GM to do the same. D. A Chinese plastics company increases its output because of its customers' higher toy exports to the United States. D. __________ are items that become part of the final business product. An increase in the number of new. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The number of retail stores in a downtown area decreases even though demand for retail goods increases. Which of the following best illustrates the concept of derived demand? A. E. Heavy-duty Rayovac flashlights are sold to consumers throughout the United States. 89. reciprocity. components and support products. single-family homes results from a spike in the gross national product. This is an example of A. However. B. a tying arrangement. B. 90. E. D. The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells. durable and nondurable products. 88. B. A. derived demand. Components Accessories Support products Production goods Raw assemblies 9-21 Copyright © 2016 McGraw-Hill Education. C. B. strategic alliance demand. All rights reserved. E. C. The two main classifications of business products are A.87. C. relationship marketing. Philips manufactures the bulbs used in Rayovac flashlights. tangible and intangible products. D. . C. The type of business products known as support products includes installations. Raw materials. B. A. accessory equipment. accessories. D. B. are referred to as A. such as grain or lumber as well as assemblies or parts. Installations. and industrial services used to assist in producing other products and services are referred to as __________. and __________. accessory equipment. No reproduction or distribution without the prior written consent of McGraw-Hill Education. industrial services components materials derived products complementary products 9-22 Copyright © 2016 McGraw-Hill Education. A. raw assemblies. components parts production goods raw materials support products 93. support products. B. D. E. Products such as tools and repair services that are used to assist in producing other products and services are referred to as __________. supplies. components. A. . E. C. E.91. D. B. C. production goods. C. 92. E. All rights reserved. supplies. components complementary products support products derived products materials 94. D. C. tools and office equipment. 9-23 Copyright © 2016 McGraw-Hill Education. A. janitorial and legal services. E. B. Installations are support products that include items such as A.95. 99. industrial services. A. warehouses and automated assembly lines. C. The type of business products known as support products includes installations. All rights reserved. Among business products. E. B. D. copy paper. The type of business products known as support products includes installations. components supplies materials derived products complementary products 97. buildings and fixed equipment. B. C. mechanical pencils. D. and __________. lumber and engine parts. The type of business products known as support products includes installations. supplies. complementary products materials industrial services derived products components 98. accessory equipment. E. accessory equipment. repair. supplies. maintenance. accessory equipment components derived products complementary products materials 96. industrial services. D. convenience products. B. and __________. support products include installations such as A. welding masks and computers. A. D. and legal services. E. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. and __________. raw materials and component parts. and light bulbs. C. B. E. D. . a factory roof tiles a cleaning service a photocopier a drill press 101 An extremely large machine for producing sheet metal from steel ingots would be . tools and office equipment. accessory equipment? A. B. installation? A. raw materials. copper wiring a factory a cleaning service pneumatic nail gun ink-jet printer cartridges 9-24 Copyright © 2016 McGraw-Hill Education. are referred to as A. which of the following would most likely be considered an . C. All rights reserved. D. E. E. . E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. installations. and legal services. C. repair. classified as which kind of business products? A. E. C. paper clips. accessory equipment. B. E. maintenance.100 Among business products. A. buildings and fixed equipment. which of the following would most likely be considered . B. components. raw materials and component parts. and brooms. D. D. C. C. D. B. D. 104 Among business products. support products that include tools and office equipment . 103 Among business products. installations finished goods supplies industrial services raw materials 102 Accessory equipment are support products that include items such as . stationery. B. supplies. repair. supplies? A. tools and office equipment. tools and office equipment. product? A. C. B. and brooms. B. and legal services. D. stationery. 107 Among business products. C. paper clips. A. installations accessory equipment supplies industrial services raw materials 106 Supplies are support products that include items such as . D. and light bulbs. C. E. buildings and fixed equipment. raw materials and component parts. All rights reserved. C. 108 Among business products. supplies usually consist of . drafting tables would be best considered which type of . D. buildings and fixed equipment. items used in the manufacturing process and become part of the final product. C. which of the following would most likely be considered . printer paper would be classified as which type of support . A. batteries. installations accessory equipment supplies industrial services raw materials 109 Among business products. E.105 Among business products. B. B. . D. items such as pens. D. maintenance. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. support products? A. E. photocopier sheet rock ink-jet printer cartridges cleaning service concert hall chairs 9-25 Copyright © 2016 McGraw-Hill Education. E. raw materials and component parts. E. B. C. industrial service? A. C. D. E. legal counsel for patent information for a firm's R&D . 112 Among business products. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. buildings and fixed equipment. which of the following would most likely be considered . raw materials and component parts. paper clips. B. supplies? A. tractor phosphoric acid photocopier maintenance athletic training facility syringes 113 When a small retail chain hires an accountant to do its income taxes. and legal services. . D. laser printer phosphoric acid cleaning service magnetic resonance imaging (MRI) scanner trash bags 111 Industrial services are support products that include items such as . department would most likely be classified as which type of support product? A. ancillary services contractual services specialty services accessory services industrial services 9-26 Copyright © 2016 McGraw-Hill Education. tools and office equipment. and brooms. E. stationery. ancillary service industrial service specialty service accessory service contractual service 114 Among business products. the retail chain . C. C. B. would have purchased a(n) __________. which of the following would most likely be considered an . E. B. D. E. D. repair. A.110 Among business products. B. A. C. All rights reserved. maintenance. or government agencies. E. B. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. C. accessory equipment industrial services supply materials component parts installations 116 Services can be classified by .115 A retail chain hires a company to design and install a computer network that would . A. E. the nature of their ownership. their method of delivery. A. E. The retail chain purchased which kind of business products? A. national or global use independent contractors privately owned or publicly owned owned by individuals or corporations for profit or nonprofit organizations 9-27 Copyright © 2016 McGraw-Hill Education. A. C. D. their location on perceptual maps. D. C. equipment. 117 Services can be classified according to whether they are __________. . __________. allow each store in the chain to check the inventory of others in the chain for customer-requested items. All rights reserved. D. nonprofit organizations. E. C. B. organizational reach. national or global use independent contractors privately owned or publicly owned delivered by people or equipment owned by individuals or corporations 118 Services can be classified according to whether they are delivered by people or . B. their use of idle capacity time. for-profit or . or government agencies. fee-based services. Services can be classified by their method of delivery. 9-28 Copyright © 2016 McGraw-Hill Education. A. B represents A. and whether they are __________. government agencies a national organization or a global organization privately owned or publicly owned performed by independent contractors owned by individuals or corporations Figure 9-3 120 Consider Figure 9-3 above. equipment-based services. No reproduction or distribution without the prior written consent of McGraw-Hill Education. equipment-delivered services.119 Services can be classified according to whether they are delivered by people or . D. C. 121 Consider Figure 9-3 above. E. Services can be classified by their method of delivery. nonprofit services. government-delivered services. people-delivered services. technology-based services. equipment. E. B. D. B. fee-delivered services. C. Box . whether they are for profit or nonprofit organizations. people-based services. A represents A. All rights reserved. E. D. Box . B. nonprofit-delivered services. . C. simple machines. They never use off-peak pricing. skilled operators. inconsistency. No reproduction or distribution without the prior written consent of McGraw-Hill Education. common? A. skilled operators. a plumber. and professionals 123 Which of the following is the best example of a people-based service? . and skilled labor automated. D. They do not have problems with idle production capacity. C. unskilled labor. those operated by unskilled operators. A. those operated by skilled operators. All rights reserved. D. inventory. hand tools. and professional operators C. D. B.122 The categories for people-based services include __________. B. and those operated by professionals E. . equipment-based services do not have the . . marketing concern of A. technical equipment. E. skilled labor. 125 The categories for equipment-based services include __________. unskilled operators. E. and a management consultant have in . E. C. B. and unskilled labor automated. D. A. and professionals unskilled operators. intangibility. and safety equipment D. automated. movie theaters airlines accounting vending machines taxis 124 What do a security guard. complex machines B. simple machines. They are all equipment-based services. C. immeasurability. skilled operators. and those operated by skilled operators 126 Compared with people-based services. They are all people-based services. C. insensitivity. 9-29 Copyright © 2016 McGraw-Hill Education. those powered by unskilled labor. . and professionals unskilled labor. B. E. They are all tangible services. A. volunteers. skilled operators. E. lawn care doctors taxis lawyers janitorial services 130 What do a dry cleaning service. A. because __________ have been removed from the delivery of the service. risk and product liability people learning requirements automations accessories 128 Equipment-based services like ATMs. inconsistency. E. a limousine service. online brokerage firms. D. None of them has a problem with idle production capacity. and a railroad have in . D. They all require skilled operators. . inventory. do not have the marketing concern of A. D. intangibility. an automated carwash. C. A. common? A. and automated car . They are all people-based services. 131 What do an online travel agency. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. B. 129 Which of the following is the best example of an equipment-based service? . B. They are all equipment-based services. B. common? A. C. B. They are all tangible services. washes. inseparability. C. They are all people-based services. E. C. They are all equipment-based services. None of them has problems with idle production capacity. D. C. B. E. They are all strictly tangible services.127 Equipment-based services do not have the marketing concern of inconsistency . independence. They never use off-peak pricing. All rights reserved. and a taxi service have in . 9-30 Copyright © 2016 McGraw-Hill Education. S. neuters. be classified as A. were eager to use marketing practices but were not permitted to do so since they were 501C3 organizations as classified by the IRS. a governmental agency. In recent years. to achieve its goals of better serving the communities in which it operates. many nonprofit organizations such as The American Red Cross . a nonprofit organization. have increased their use of marketing practices to improve communication with constituents. maintain its nonprofit status. 133 The American Red Cross uses marketing to help achieve its goals. could not afford marketing activities. A. D. a business firm. nonprofit organizations such as Sterile Feral have turned to marketing to help it A. is a nonprofit organization that catches wild or stray cats. C. and releases them back into the wild. Forest Service. D. 135 What type of organization is the U. Inc. compete with other similar organizations. C. It then . B.132 Recently. 134 Sterile Feral. It is a good-dominate organization on the service continuum. All rights reserved. park system? A. It is a government agency service provider. equipment-based. vaccinates. E. It is manufacturer's agency. B. worried that marketing would limit their profitability as nonprofit organizations. B. it can . B. which manages our national . No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. C. a for-profit organization. It is a regional non-profit. D. E. It is a privately owned firm. expand its business to stray dogs. thought that marketing activities would harm demand. As a service. D. E. . 9-31 Copyright © 2016 McGraw-Hill Education. receive additional government funding. E. or touched before the purchase decision. intangibility. inconsistency. they are much . A. opportunity good risk decision performance 9-32 Copyright © 2016 McGraw-Hill Education. 139 The intangibility element of a service refers to the fact that it . and innovation. and impression. . inventory. intangibility. E. They are all government agency service providers. intangibility. D. D. C. and impression. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A. more difficult for consumers to evaluate. E. E. 140 Because services tend to be a(n) __________ rather than an object.136 What do the United States Post Service. C. innovation. service mix four I's of services service matrix 4Ps of services service continuum 138 The four I's of services consist of . and inventory. inseparability. and inventory . 137 There are four unique elements to services . inflexibility. has value that can only be determined by using subjective criteria. All rights reserved. B. can be objectively evaluated. inconsistency. intangibility. E. and impression. the Connecticut Department of Social . E. can maintain or accumulate good will with customers. inconsistency. Capacity management is not an issue for these organizations. B. C. D.intangibility.which are referred to as the __________. C. B. innovation. B. requires the ability to provide the service even in times of no demand. They are all privately owned companies. D. inseparability. inventory. Services. seen. They never experience idle production capacity. C. A. inconsistency. intangibility. inseparability. B. None fit on the service continuum. . A. and the Phoenix Fire Department have in common? A. D. can't be held. E. incongruity inconsistency inventory costs inseparability intangibility 9-33 Copyright © 2016 McGraw-Hill Education. D. . D. E. intangible consistent tangible timely measurable 143 To help consumers assess and compare services. A. All rights reserved. difficulty results from the A. B. B. D. inseparability of services. 142 To help consumers assess and compare services. tangible or __________. marketers try to make them . D. A. __________ or show the benefits of using the service. emphasizes food and other amenities to overcome the __________ of its service. inflexibility of services.141 Consumers have more difficulty evaluating services than they do products. C. A. interdependence of services. marketers try to make them . E. B. the . B. E. incongruity of services. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. temporal consistent adaptable measurable show the benefits of using the service 144 Singapore Airlines has advertising that shows a traveler in the airline's new seats and . C. C. intangibility of services. Frontier Airlines uses . E. inseparability of the service. cleaned by Stanley Steemer. D. cleaned the carpets. . personable animal characters in its advertising to announce and describe benefits. incongruity inconsistency inventory costs inseparability intangibility 9-34 Copyright © 2016 McGraw-Hill Education. inconsistency inseparability inventory costs intangibility interdependence 147 To help consumers assess and compare its airline service. C. E. She is concerned because a massage. only then did the couple see that they did a good job.145 Sarah has a backache due to overexertion. Kelly and Doug decided to have their carpets . C. Kelly and Doug were unable to judge the service before they bought it. B. D. incongruity inconsistency intangibility inventory costs inseparability 146 Before moving out of their apartment. 148 The brochure for Spa Sydell has photographs of people enjoying the various spa . unlike a pair of shoes. All rights reserved. D. a company specializing in professional carpet cleaning. amenities. By seeing the pictures of available treatments at the spa. a customer has a better idea of what she is buying. She believes a massage would loosen her . B. cannot be experienced or seen before she buys it. The carpet cleaners arrived on time. to help deal with the A. A. and drove away in their bright yellow van. which illustrates the __________ of services. interdependence of the service. inflexibility of the service. intangibility of the service. C. B. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Spa Sydell uses a brochure to help customers deal with the __________ that is associated with using the service. E. back muscles and help her feel better. such as leather seats and stretch seating. E. Which characteristic of services is she concerned about? A. B. incongruity of the service. A. D. incongruity differentiation variation inconsistency intangibility 151 Inconsistency of services refers to the fact that . their quality varies . the quality of service provided by a firm is often inconsistent with its image. E. independent of managerial policies. often A. with each person's capabilities and day-to-day job performance. providing standardization and training. pricing. As a result. B. the quality of a service is . there is no regulation of service industries in terms of basic standards of quality. No reproduction or distribution without the prior written consent of McGraw-Hill Education. inventoried. paying higher incentives to employees to encourage satisfactory performance. 152 Developing. C. E. This element of services is referred to as __________. reducing incentives available to employees because of poor performance. D. services have a varying degree of durability. training and standardization of service delivery procedures cannot be accomplished. Organizations attempt to reduce this inconsistency by A. C. E. D. . B. A. D. B. B. C. inconsistent. the performance of one employee may vary from the performance of another employee even though the same firm employs both. promoting. independent of the quality delivered. A. reducing the customer contact points in the service delivery process. 9-35 Copyright © 2016 McGraw-Hill Education. D. All rights reserved. exercising better hiring practices. C. and delivering services are challenging because the .149 Because services depend on the people who provide them. tied to a product. E. quality of the service is often inconsistent. 150 Services depend on the people who provide them. E. . This is an example of a service being A. C. D. D. C. B. independent of the quality delivered. inseparability inconsistency incongruity inflexibility intangibility 9-36 Copyright © 2016 McGraw-Hill Education. E. the quality of the performance was much poorer than they had heard and seen on campus. E. enjoyed the performance. The students . The students' disappointment was the direct result of which characteristic of services? A. picking up cleaning. tied to a product. inconsistent. 154 A local band performed on campus during a pre-graduation party. B. a concierge company. inventoried. for people who are too busy to perform these simple acts. staff of 60 perform everyday services. inconsistency impressionability intangibility invisibility uniqueness of the service 155 Andrea Arenas is the owner of 2 Places at 1 Time. waiting for the repairman. But when they went to that concert. .153 The Philadelphia Phillies baseball team may have great hitting and pitching one day. D. and lose by 10 runs on the next. inseparable. and going to the post office. C. One way she tries to avoid ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for her clients. No reproduction or distribution without the prior written consent of McGraw-Hill Education. She and her . and some of them were interested enough to buy tickets to see another show at a club downtown. B. such as walking the dog. A. All rights reserved. C. D. cannot separate themselves from the deliverer of the service. the experience was much worse. B. the server filled their water glasses. cannot separate the service itself from the deliverer of the service. E. A. B. . impressionability intangibility inseparability uniqueness of the service inconsistency 158 Inseparability in services means consumers . C. 159 If you find that the staff who work in your college's career center give you poor . B. To maintain a quality image and a standardized offering. advise or otherwise did not provide sufficient help in finding you employment after graduation. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the restaurant. E. This scenario illustrates the ___________ of services. Jason noted that the last time he was at this same restaurant. inseparability intangibility impressionability incongruity inflexibility 9-37 Copyright © 2016 McGraw-Hill Education. B. A. see little variation from one service provider in an industry to another. cannot evaluate a service until it is being or has been used. checked on their table. What unique aspect of services is Alana trying to address? A. are unable to differentiate price from quality. This is an example of which issue associated with services? A.156 Alana operates a wedding preparation service that aids brides-to-be in the planning . D. All rights reserved. C. C. At . D. Alana provides extensive training for each of her employees. D. and took care of their requests. E. impressionability intangibility inconsistency inseparability uniqueness of the service 157 Jason graduated from law school and took his mom to dinner after the ceremony. you may be dissatisfied with your entire college experience. E. of their weddings. the minimum number of customers that a service provider can serve and still remain profitable. D. Mandy often says something derogatory to her friends about the restaurant based on this single experience. Since then. C. This is an example of which issue associated with services? A. idle production capacity. E. A. C. Unlike goods providers. 163 Idle production capacity refers to . she thought the . D. B. D. 9-38 Copyright © 2016 McGraw-Hill Education. B.160 When Mandy last got her drive-thru order at the fast-food restaurant. employees are still able to meet selective demand. a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand. B. A. static demand. C. E. Only service inventory can be reduced through more efficient movement of products. the service provider is often unavailable when there is a demand for the service. E. C. Service inventory costs are related to idle production capacity rather than storage or handling. B. excess inventory. off-peak pricing. inseparability intangibility impressionability incongruity inflexibility 161 Inventory of services differs from that of products in what way? . the ability of a service provider to redirect its efforts so even when there is no primary demand. referred to as A. employee who helped her was cold and unfriendly. The food tasted good but was overshadowed by the employee's demeanor. All rights reserved. a situation that occurs when a service provider is available but there is no demand for the service. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. the maximum number of customers that a service provider must serve in order to remain profitable. 162 A situation that occurs when a service provider is available but there is no demand is . Time is less important to customers of services than customers of products. capacity management. D. There are larger costs associated with the handling of service inventory. E. E.164 What does idle production capacity refer to? . B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. waiting for the repairman. the potential profits of one service provider serving multiple clients at the same time 165 The emergency room staff in Houston's largest hospital is pleasantly surprised when . She has often been hired by major corporations to perform services for their harried executives. all of her employees and equipment are fully being used. C. C. A. All rights reserved. its services are no longer tangible. staff of 60 perform everyday services such as walking the dog. an opportunity for gap analysis. Her staff is overworked and she will soon hire more employees to fill demand. and even other employees. and going to the post office for people who are too busy to perform these simple acts. D. A. . no services can be offered B. the lower demand for the emergency room services means A. in fact. 166 Andrea Arenas is the owner of 2 Places at 1 Time. a situation where a service provider is available but there is no demand for the service D. a concierge company. picking up cleaning. a four-day Fourth of July weekend brings in few accident victims for treatment. They know from experience that such public holidays usually have high rates of accidents. when the supply of service providers exceeds the primary demand for the service C. She and her . the hospital has idle production capacity. D. Arenas is not currently experiencing __________. its services can be separated from the staff. a break in the service continuum. a situation where the demand for exceeds the availability of service providers and as a result. B. off-peak pricing idle production capacity static demand capacity marketing capacity inventory 9-39 Copyright © 2016 McGraw-Hill Education. integrating the service component of the marketing mix with efforts to influence consumer demand E. For the hospital's business office. the economy consumer income word-of-mouth communications competitive trends how the organization delivers its service 9-40 Copyright © 2016 McGraw-Hill Education. C. a service audit. has a capacity of 120 passengers. B. B. E. experience and credence. E. D. customer relationship management. intangibility and inconsistency.m. E. C. the flight has averaged 24 passengers. Once the plane takes off. expectations and customer contact. 170 How a person establishes expectations for a service not yet experienced is . What unique aspect of services does this situation describe? A. D.167 Southwest Airlines operates five flights daily between Chicago and Phoenix during . the two basic components of a customer's evaluation of a . D. B. During the past month. past experiences. about a service and their experience with it based on dimensions of service quality is referred to as A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. expectations and experience. the empty seats generate no revenue for the airline for that flight. personal needs. 169 In using a gap analysis. a Boeing 737. One flight leaves Phoenix at 12:10 p. gap analysis. A. . All rights reserved. C. the winter. The plane. service are A. C. E. influenced by __________. inconsistency and inseparability. B. service encounter differential. a customer contact audit. D. and promotional activities. incongruity intangibility inconsistency inseparability idle production capacity 168 The type of analysis that compares the differences between consumers' expectations . a load factor of only 20 percent. A. the economy consumer income competitive trends promotional activities how the organization delivers its service 174 In a gap analysis. A. the positive reinforcement from friends. C. the actual experiences are determined by A. personal needs. psychological feelings of well-being. how the organization delivers its service past experiences competitive trends the economy consumer income 173 How a person establishes expectations for a service not yet experienced is . D. C. B. influenced by word-of-mouth communications. past experiences. past experiences. D. and promotional activities. a formal post-purchase evaluation or questionnaire. personal needs the economy consumer income competitive trends how the organization delivers its service 172 How a person establishes expectations for a service not yet experienced is . and promotional activities. D. __________. B. However. All rights reserved. personal needs. 9-41 Copyright © 2016 McGraw-Hill Education. B. influenced by word-of-mouth communications. __________. influenced by word-of-mouth communications. and __________. and promotional activities. . yet experienced through word-of-mouth communications. E.171 How a person establishes expectations for a service not yet experienced is . past experiences. after the service was provided. C. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. C. E. the way the organization delivers its service. personal needs. A. E. E. family. repeat encounters with the same service provider. and peers. a person can establish expectations for a service he or she has not . diligence. This assessment of consumer expectations compared to the actual experience they had is a form of __________. A. 9-42 Copyright © 2016 McGraw-Hill Education. and reliability respect. the A. B. C. All rights reserved. B. and responsiveness 177 The term product class refers to . B. C. product item. service encounter survey customer profile analysis gap analysis customer contact audit service audit 176 Which of the following are key dimensions of service quality that might be used to . product class. gap analysis. a variation of a product within a product mix. D.175 Many restaurants now ask consumers to evaluate their experience on a short . fairness. questionnaire when they pay their bill. product line. . intangibility. D. A. product form. the designation of an individual product based upon its form. C. configuration) within a product class are referred to as . the entire product category or industry a set of offerings belong to. the designation of a product based on whether it is a consumer product or business product. C. B. tangibility. E. perform a gap analysis for airline travel? A. product mix. and product knowledge reliability. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. E. E. 178 Variations of a product (shape. E. and honesty honesty. and diligence alacrity. D. the NAICS designation of an individual product or brand. intangibility. C. product item. D. C. 9-43 Copyright © 2016 McGraw-Hill Education. B.179 A product item refers to . stock keeping unit. a group of SKUs that are closely related. A. The Love Bandit Bear is an example of a A. stock ID code. product form. D. B. unique stock mark QR code stock keeping unit order quantity code NAICS stock code 182 The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given . 181 A __________ is the unique identification number that defines an item for ordering or . D. E. inventory purposes. as gifts for almost every occasion imaginable. size. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 180 The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given . The Love Bandit Bear is one bear it designed for people to give to each other on Valentine's Day. or price. . order quantity code. as gifts for almost every occasion imaginable. The unique identification number that the Vermont Teddy Bear Company uses to distinguish this Teddy bear from the others in order to track it in the warehouse is called a(n) A. product mix. C. E. E. All rights reserved. product line. E. D. the variations within a product class. product class. QR code. The Love Bandit Bear is designed for people to give to each other on Valentine's Day. B. C. the entire product category or industry. NAICS stock code. B. a specific product that has a unique brand. the services offered by an organization. financing. B. are distributed through the same type of outlets. or fall within a given price range. or fall within a given price range. are distributed through the same types of outlets. B. or fall within a given price range is referred to as a __________. . or fall within a given price range. B. class of needs. product item product line product mix product class product form 185 A product line refers to . E. C.). they satisfy a class of needs. D. A. 186 A product line is a group of product or service items that are closely related because . __________. the variations within a product class. size. a product and all its ancillary services (warranties. or price. are made of similar components are used together have one SKU number require high levels of R&D made from the same formulations 9-44 Copyright © 2016 McGraw-Hill Education. C. E. they satisfy a class of needs. are used together. C. product class product mix product category marketing category product line 184 A __________ is a group of product or service items that are closely related because . D. a group of product or service items that are closely related because they satisfy a class of needs. are used together. etc. are distributed through the same type of outlets. A. a specific product SKU that has a unique brand. are sold to the same customer group. are distributed through the same types of outlets. D.183 A group of product or service items that are closely related because they satisfy a . A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. are used together. A. E. D. E. All rights reserved. are sold to the same customer group. the entire product category or industry. C. are sold to the same customer group. are sold to the same customer group. B. __________. C. product mixes refer to industrial products. they satisfy a class of needs. B. D. All rights reserved. A broad product line reduces R&D costs. E. C. are made of similar components require high levels of R&D are sold to the same customer group made from the same formulations have one SKU number 188 A product line is a group of product or service items that are closely related because . B. are made of similar components made from the same formulations require high levels of R&D have one SKU number are distributed through the same type of outlets 189 A product line is a group of product or service items that are closely related because . 9-45 Copyright © 2016 McGraw-Hill Education. C. A. A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions. D. are used together. and are distributed through the same type of outlets. are sold to the same customer group. are used together. are used together. are distributed through the same type of outlets. E. __________. . are sold to the same customer group. or fall within a given price range. B. C. they satisfy a class of needs. are made of similar components fall within a given price range made from the same formulations are identical except for price require high levels of R&D 190 Which of the following statements about product lines is most accurate? . An advantage of a narrow product line is the ability to have a greater gap between price points. A. E. A. they satisfy a class of needs.187 A product line is a group of product or service items that are closely related because . or __________. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. Product lines refer to consumer products. An advantage of broad product lines is increased likelihood of access to large retail chain distribution. D. A. or fall within a given price range. E. a product item a product line a product mix a product category a brand line 9-46 Copyright © 2016 McGraw-Hill Education. Scope mouthwash B. The Yellow Pages for Gainesville. following? A. Hallmark Mother's. Florida D. All rights reserved.191 Which of the following is an example of a product line? . B. A. E. C. and Grandparent's Day cards E. Father's Day. . bottles C. D. Apple iPad Crapola Granola Products Photo 192 The Crapola Granola products photo shown above best describes which of the . Zephyrhills natural spring water in 8 oz. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. are distributed through the same types of outlets. a specific product SKU that has a unique brand. D. E. including many different types of trash bags and a large variety of food storage containers. All rights reserved.193 The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given . product mix. product class. Glad products. 9-47 Copyright © 2016 McGraw-Hill Education. D. . A. product line. the entire product category or industry. product mix. Teddy bears are an example of a A. are used together. marketing category. For Glad. 194 During a recent shopping trip to Target. Carlie noticed that the store offered many . C. marketing mix. size. E. B. each of these two product groupings is an example of a __________. as gifts for almost every occasion imaginable. E. a group of products that are closely related because they satisfy a class of needs. C. the variations within a product class. C. D. A. as a A. SKU. product class. product SKUs. C. are sold to the same customer group. all of the different product lines offered by an organization. B. B. target mix. B. 196 A product mix refers to . or fall within a given price range. For the Vermont Teddy Bear Company. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. product line product item product mix product industry product class 195 All of the different product lines offered by an organization are collectively referred to . or price. product lines refer to consumer products. D. marketing mix. E. such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener. 9-48 Copyright © 2016 McGraw-Hill Education. marketing mix. salsa. . pasta sauces. product mixes refer to consumer products. D. D. has a large __________ that includes product groupings . product lines. E. product class. A. product class. C. The company . No reproduction or distribution without the prior written consent of McGraw-Hill Education. product mix. or form. and salad dressings under the Newman's Own brand name. A. 199 Newman's Own is a company that gives all of its profits to charities. product mix. SKUs. product items. product mixes include product lines. product mixes refer to business products. B. 198 A company's product mix is equal to the sum of its . These product lines comprise the company's A. and Pampers diapers.197 Procter & Gamble. Tide detergent). A. product items. C. D. however. B. B. product lines refer to industrial products. product lines include product mixes. C. C. product category. B. product lines. product class. E. produces popcorn. All rights reserved. E. stock keeping units. 200 The relationship between a product line and product mix is . there is no significant difference other than minor product variations of color. size. marketing category. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. technical support people is A. consumers with mind-boggling complexity is referred to as A. B. . legal. E. feature bloat. an exaggeration of a product's performance capabilities. an excessive number of product attributes that overwhelms consumers with unnecessary complexity. the increase in package size when adding more content or making it larger (the mega phenomenon). A. B. E. product differentiation. All rights reserved. the requirement of having consumers learn new behaviors with a continuous innovation. their inability to communicate in laymen's terms. E. C. 203 According to Robert Stephens of the Geek Squad. sensory overload. B. the overcharging in price for a minor product enhancement. the biggest complaint about . that they take too long to answer the telephone. B. C. feature overkill. C. E. D. that they are difficult to understand. D. C. D. the firm's competitors. that they are rude and egotistical. product line extension. 204 A product can be classified as new from all of the following perspectives EXCEPT: . that they lack product knowledge. existing offerings. A. the organization's. the consumer's.201 Feature bloat is . 202 The proliferation of extra characteristics in a product that overwhelms many . 9-49 Copyright © 2016 McGraw-Hill Education. A. 208 The emphasis of a marketing strategy for a continuous innovation concentrates on . dynamically continuous innovation. 207 A product that is new in some way but requires no new behaviors to be learned by . is functionally different is different in color is different in its packaging is different in price requires a different distribution channel 206 An important way of viewing new products is in terms of their effects on . using personal selling. setting a low price. of a continuous innovation? A. B. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. . the extent of media promotion. 209 At the time of its introduction. D. D. product transformation. E. the price. generating awareness. C. consumers is a A. continuous innovation. E. the presence of feature bloat. E. concurrent innovation. home security system disposable lighter microwave oven electric toothbrush video camera 9-50 Copyright © 2016 McGraw-Hill Education. D. B. consumption. D. the degree of potential product cannibalization. B. which of the following products was the best example . E. C. obtaining narrow distribution. A. the degree of learning involved. using reminder advertising to reeducate consumers. . B.205 A product can be classified as new if it __________ from existing products. D. C. discontinuous innovation. C. C. All rights reserved. which from the perspective of consumers is by A. C. continuous innovation dynamically continuous innovation discontinuous innovation insignificant innovation disruptive innovation 9-51 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. continuous innovation dynamically continuous innovation discontinuous innovation insignificant innovation disruptive innovation 211 At the time of its introduction. the first video game system C. dynamically continuous innovation. B. C. B. Atari. . Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology D. All rights reserved. D. discontinuous innovation. Naturalpoint Trakir. continuous innovation. of which type of innovation? A. E. C. of a continuous innovation? A. D. 213 The first LCD (liquid crystal display) flat-panel HD (high definition) TV is an example . Dragon Naturally Speaking voice-recognition software E. which replaces the computer mouse by tracking head movements and then translating those head movements into cursor commands 212 The addition of Clorox II bleach to Tide laundry detergents is an example of a . B. disruptive innovation. which of the following products was the best example .210 Wrigley's new Alert Energy Caffeine Gum "offers a portable solution that lets adults . bundled innovation. D. A. control their caffeine intake. the first Apple iPhone B. E. E." This new gum is most likely which type of innovation? A. 216 LG Electronics Inc. setting a low price. B. dynamically continuous innovation. B. C. discontinuous innovation. progressive innovation. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. D. D. dynamically continuous innovation. When the multitouch interface was first introduced. evolutionary innovation. C. disruptive innovation. include A. smartphone models that use a multitouch interface rather than buttons to make calls with Google's Android operating system. required the pasta to be precooked before it is mixed with the sauces and other ingredients. E. continuous innovation. C. continuous innovation. E. All rights reserved.214 A product that disrupts consumers' normal routines but does not require totally new . 217 There have been pasta sauces on the market for years. D. D. E. discontinuous innovation. C. . 215 The emphasis of a marketing strategy for a dynamically continuous innovation would . These sauces have always . discontinuous innovation. disruptive innovation. dynamically continuous innovation. The development of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an example of a(n) A. advertising to generate awareness. learning is a A. B. has entered into an agreement with Google to offer selected . using personal selling. it was an example of which type of innovation? A. evolutionary innovation. 9-52 Copyright © 2016 McGraw-Hill Education. obtaining widespread distribution. continuous innovation. disruptive innovation. advertising to explain points of difference and benefits. B. inventive innovation continuous innovation discontinuous innovation dynamically continuous innovation continuous invention Heinz EZ Squirt Photo 9-53 Copyright © 2016 McGraw-Hill Education. D. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. C. E.218 Philips Sonicare recently introduced the DiamondClean rechargeable toothbrush. B. . D. All rights reserved. This is an example of which type of innovation? A. disruptive innovation continuous innovation discontinuous innovation dynamically continuous innovation evolutionary innovation 219 LG Electronics recently introduced the Fridge-TV with a 15" television screen . key innovation is its Quadpacer interval timer that goes off after 30-seconds to prompt the user to move on to the next quadrant of the mouth that results in better cleaning and improved gum health. A . mounted in the right side refrigerator door. This is an example of which type of innovation? A. B. continuous invention. E. generate awareness among consumers. consumers is referred to as a(n) A. B. educate consumers about new consumption patterns through personal selling. the . dynamically continuous innovation. 224 Which of the following products at the time of its introduction was the best example . D. progressive innovation. C. C. requires consumers to learn entirely new patterns of behavior and product usage. dynamically continuous innovation. 223 The emphasis of a marketing strategy for a discontinuous innovation would most . 222 A discontinuous innovation is a product that . . degree of newness for the consumer would make this a A. B. evolutionary innovation. continuous innovation. obtain widespread distribution in multiple channels. DVD player disposable lighters instant light charcoal liquid laundry detergent automatic dishwashers 9-54 Copyright © 2016 McGraw-Hill Education. B. D. C. B. disrupts consumers' normal routine but does not require totally new learning. E. D. D. discontinuous innovation. A. C. requires no new learning by consumers. E. discontinuous innovation. All rights reserved.220 When Heinz introduced its new EZ Squirt Ketchup bottle (see the photo above). likely be to A. stress price differentials from competitors' products. B. E. spontaneous innovation. C. is not purchased by innovators and early adopters. E. advertise benefits to consumers that stress points of differentiation. of a discontinuous innovation? A. D. 221 A product that requires the learning of entirely new consumption patterns among . continuous innovation. initiates obsolescence of a product class. No reproduction or distribution without the prior written consent of McGraw-Hill Education. disruptive improvement. All rights reserved. evolutionary innovation. E. B. 227 Dragon Naturally Speaking. continuous innovation. B. C. dynamically continuous innovation. is an example of a(n) A. discontinuous innovation. automobile. 226 Napster was the first software that allowed an individual to easily search for and . a speech recognition software program that allows you to . continuous innovation. D. disruptive improvement. E. use your voice instead of a keyboard to input text into a word processing program. discontinuous innovation. discontinuous innovation. B. After years of driving a horse and buggy. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. continuous innovation. D. D. Figure 9-4 9-55 Copyright © 2016 McGraw-Hill Education. exchange MP3 music files with other individuals (in some cases illegally). E. regulatory innovation. When it was introduced.225 In the early 1900s. The new automobile was an example of a A. disruptive improvement. C. Napster would have been an example of a A. evolutionary innovation. . dynamically continuous innovation. dynamically continuous innovation. he got into his new car and drove it into his new garage. your great-great-grandfather probably purchased his first . until a new and improved version of the same product is produced. 231 The Federal Trade Commission (FTC) considers a product new only . discontinuous innovation. No reproduction or distribution without the prior written consent of McGraw-Hill Education. continuous innovation. D. continuous innovation. D. D. E. E. C. 229 According to Figure 9-4 above. dynamically continuous innovation. All rights reserved. dynamically continuous innovation. evolutionary innovation. E. for a period of seventeen years at which time patent rights are returned to the public domain. B. spontaneous innovation. A. continuous innovation. for a period of one year after it enters widespread distribution. discontinuous innovation.228 According to Figure 9-4 above. B. simultaneous innovation. column A represents a(n) . B. if it is functionally different from a competitor's product. disruptive innovation. C. column C represents a . A. 9-56 Copyright © 2016 McGraw-Hill Education. . 230 According to Figure 9-4 above. dynamically continuous innovation. A. column B represents a(n) . E. A. discontinuous innovation. for a period of six months after it enters regular distribution. C. C. evolutionary innovation. spontaneous innovation. D. B. D. B. E. the manufacturer of Mr. D. added Mr. for the first six months that it was regularly available at a variety of grocery stores. C. Legally. as long it retained these exact product characteristics. meat. a radical invention a brand extension a product line extension a jump in innovation a product refinancing 234 From an organization's perspective regarding its new products and innovations. D. and cheese in a casserole. If Proctor and Gamble . a discontinuous innovation. . necessary to precook the pasta before blending pasta. Clean. Clean product line. . E. C. not a new-product because it does not represent a different SKU. it would be seen by P&G as A. D. a radical invention a brand extension a product line extension a jump in innovation a product deletion 235 Mr. 233 From an organization's perspective regarding its new products and innovations. which of the following new-product strategies has the HIGHEST level of risk? A. until a competitor like Ragu had issued a similar product targeted to the same market. E. E. C. if it was functionally the same as its salsa sauce. a high-risk product mix extension because it is new to the market. this product would only be considered new A. . B. B. new by the Federal Trade Commission for the usual one-year period.232 Prego recently introduced a Pasta Bake Sauce. B. a new product from the company's perspective because it is a product line extension. which was made so that it was not . until its advertising had been seen by every member of its target audience. 9-57 Copyright © 2016 McGraw-Hill Education. which of the following new-product strategies has the LOWEST level of risk? A. (P&G). C. Clean is an antibacterial cleaning liquid for home use. Clean Magic Eraser Bath Scrubber to the Mr. sauce. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. D. and it failed quickly. a totally new. marketing the first Apple computer D. offering online marketing classes rebranded under a new college name 237 Using an existing brand name to introduce a product that is new to the company into . disruptive innovation. E. unfamiliar product category seems like a good idea. A. D. from the company's point of view? A. those consumers who also like Frito-Lay's salty snacks such as Fritos corn chips. moving from production of land-line telephones to smartphones C. 9-58 Copyright © 2016 McGraw-Hill Education. product deletion. Frito-Lay developed Frito-Lay Lemonade as a thirst-quencher for . adding Ball Park Beef Franks with Cheese to the Ball Park Franks line B. B. a totally new. C. B. brand extension. All rights reserved. purveyor of fashion magazines. This innovation strategy is known as a A. unfamiliar market seems like a good idea. C. changing the formula from Coca-Cola to New Coke and then back to Coca Cola Classic E. This innovation strategy is known as a A. Cosmopolitan magazine introduced Cosmopolitan-branded yogurt. did when it introduced its own __________.236 Which of the following new products is the best example of the LOWEST level of risk . C. radical invention product line extension disruptive innovation brand extension product deletion 239 A few years ago. Several years ago. . E. D. product line extension. aspirin yogurt disposable underwear soda (soft drink) perfume 238 Using an existing brand name to introduce a product that is new to the company into . thirst-quenching is not a benefit that comes to mind and Frito-Lay Lemonade failed. which failed quickly. E. radical invention. But when people think of the brand name Frito-Lay. No reproduction or distribution without the prior written consent of McGraw-Hill Education. This is what Cosmopolitan. wants. C. D. and what the product or service will be and do to satisfy consumers. wants. and by whom it will be sold. disruptive innovation. manufacturing. D. proposition.S. formula contract modus operandi protocol methodology 9-59 Copyright © 2016 McGraw-Hill Education.240 Using an existing brand name to introduce a product that is new to the company into . B. unfamiliar market seems like a good idea. All rights reserved. and defining what the product or service will be and do to satisfy consumers. HarleyDavidson introduced perfume under the Harley-Davidson brand name . maintaining compliance with all licensing. B. a statement that identifies a well-defined target market. . methodology. and what the product will be and do to satisfy consumers is referred to as a new product's or service's A. and preferences. manufacturing. Several years ago. 243 Ideally. product deletion. and preferences. brand extension. which is a statement defining the target market. specific customers' needs. before a new product or service is developed. a firm should have a precise . A. and distribution standards established by the U. design. modus operandi. a formalized statement of intent regarding what will be sold. B. formula. E. This innovation strategy is known as a A. a totally new. D. B. E. and distribution of a new product. E.and it failed quickly. to whom it will be sold. 241 A new product or service protocol refers to . radical invention. specifying customers' needs. 242 A statement that identifies: a well-defined target market. C. E. Federal Trade Commission (FTC). product line extension. protocol. A. D. __________. specific customers' needs. C. . promotion. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the raw unwritten ideas to produce a single commercially successful new product. the standardized procedures a firm follows for the inception. a clear plan for distribution C. and (3) what the product or service will be and do to satisfy consumers. A. D. 245 Ideally. a firm should have a precise . protocol. which is a statement that identifies: (1) __________. (2) __________. C. developing them has A. (2) specific customers' needs. an analysis of potential competitors' products or services D. before a new product or service is developed. and (3) __________. support from marketer-dominated sources of information. an analysis of potential competitors' products C. protocol. a precise budget of how much can be spent for the marketing program D. wants. a firm should have a precise . . clear financial goals and expectations 246 Ideally. a well-defined target market E. A. a clear patent approved by the governments within the countries it wants to market. E. B. All rights reserved. a precise budget of how much can be spent for the marketing program E. an analysis of potential competitors' products or services E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. clear financial goals and expectations 247 Ideally. before a new product or service is developed. and preferences. a precise protocol. a firm should have a precise . and (3) what the product or service will be and do to satisfy consumers. which is a statement that identifies: (1) a well-defined target market. what the product or service will be and do to satisfy consumers B. which is a statement that identifies: (1) a well-defined target market. A. and preferences C. clear financial goals and expectations D. wants. wants. specific customers' needs. and preferences. a precise budget of how much can be spent for the marketing program 9-60 Copyright © 2016 McGraw-Hill Education. (2) specific customers' needs. a clear plan for distribution B. stakeholder approval in the development process. before a new product or service is developed. protocol. a clear plan for product distribution B. a statement of competitive intent.244 New product or service failures may be reduced or avoided if the company . it . D.making . All rights reserved. A. B. too little market attractiveness . B. A.the chips were not the same size E. poor execution of the marketing mix . E. assumed that its customers would normally snack on them dry like a potato chip. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . C.the brand name "Fingos" did not get consumers excited 251 One of the eight primary marketing-related reasons for new-product failure is . The primary reason for the failure of Fingos was __________. __________. Unfortunately. D. E.the benchmark of a successful CPG launch. poor product quality . A. 25 50 100 125 150 249 Less than __________ of new consumer packaged goods (CPG) exceed first-year sales .248 Most American families buy the same __________ items over and over again . an insignificant point of difference relative to competing snacks . it difficult to gain buyers for new products.the growth in the snacks market is declining C. C. D. incomplete market and product protocol . of $50 million . A. consumers did not switch from munching on popcorn and potato chips. C.General Mills did not offer free samples at grocery stores D. not listening to the voice of the engineer incomplete market and product protocol too much advertising or too aggressive a tone for it failure to anticipate competitors actions insufficient funding for roll-out 9-61 Copyright © 2016 McGraw-Hill Education. E.consumers wouldn't switch from eating snacks from Frito-Lay and others B. a corn chip-sized sweetened cereal flake. B. 3 percent 10 percent 17 percent 28 percent 35 percent 250 When General Mills introduced Fingos. 254 Microsoft introduced its Zune player a few years after Apple launched its iPod and . C. 253 Until 1996. not listening to the voice of the engineer no economical access to buyers too much advertising or too aggressive a tone for it failure to anticipate competitors actions insufficient funding for roll-out 9-62 Copyright © 2016 McGraw-Hill Education. poor product quality. incomplete market and product protocol. D. C. C. derivatives. __________. incomplete market and product protocol. too little market attractiveness.252 Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C . According to the textbook. B.S. or blew their noses into them. an insignificant point of difference. The reason for this product failure was A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the primary reason for the Zune's failure was due in large part to A. an insignificant point of difference. people didn't believe the claim and were frightened by the "cidal" in the brand name. poor product quality. not satisfying customer needs on critical factors. car makers exported several models with the steering wheel on the right to accommodate the way the Japanese drive their cars on the left side of the road. incomplete market and product protocol. not satisfying customer needs on critical factors. B. U. other competitors had offered their new MP3 players. carmakers sent very few right-hand-drive cars to Japan while German . 255 One of the eight primary marketing-related reasons for new-product failure is . an insignificant point of difference. B. . poor execution of the marketing mix. bad timing. All rights reserved. which were scientifically designed to kill cold and flu germs when users sneezed. A. coughed. poor product quality. Zune sales were very disappointing and Microsoft eventually killed the product. too little market attractiveness. D. D. E. B. E. D. E. Unfortunately. E. C. American car manufacturers could blame their failure to a great degree on A. spreads. . 259 Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads. D. not satisfying customer needs on critical factors. The makers of this product had A. A." The problem: The consoles' microprocessors ran too hot. causing them to pop off their motherboards. an insignificant point of difference. no economical access to buyers. This cost the company not only money to extend its product warranty. incomplete market and product protocol. vitamin-enriched. 257 One of the eight primary marketing-related reasons for new-product failure is . No reproduction or distribution without the prior written consent of McGraw-Hill Education. product was marketed as a new product but it did not meet the legal definition of new 258 After Microsoft launched its Xbox 360 video-game console. C. carbonated bottled water for your dog. It might have been a great product. a competitor with a similar product withdrew from the market C. D. D. __________. poor execution of the marketing mix. an insignificant point of difference. poor product quality. This failure was due to A. C. 9-63 Copyright © 2016 McGraw-Hill Education. C. the product is too innovative B. incomplete market and product protocol. not satisfying customer needs on critical factors. bad timing.256 Thirsty Dog! is a zesty beef-flavored. experience the "red ring of death. poor product quality E. but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. This product failure demonstrates A. poor product quality. millions began to . lightly . E. an insignificant point of difference. E. poor execution of the marketing mix. B. too socially controversial D. but a huge portion of future sales and market share to competitors Sony and Nintendo. mineral-loaded. E. B. . too little market attractiveness. poor product quality. B. All rights reserved. and meats. but at its introduction the company forgot to explain this to potential consumers. 260 OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum . A. B. product failures is __________. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . 261 Groupthink occurs in a meeting when . what marketing metric should be used to measure sales performance? A. E. A. every metric possible shelf space for this year and last year by city production costs customer psychographics annual percent sales change by city 9-64 Copyright © 2016 McGraw-Hill Education. had poor product quality. encountering groupthink in task force and committee meetings C. E. Although a clever idea. C. someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it. D. D. had too little market attractiveness. meeting their sales growth goal for your sunscreen products. everyone has the same idea after using the brainstorming idea-generation technique. incomplete market and product protocol 263 If you are using a marketing dashboard to discover which cities in Florida are not . D. E. B. C. top management wants the new product to go forward regardless of what anyone else thinks. 262 One of the two ORGANIZATION-related problems of inertia that can cause new. had bad timing. so no one is willing to share his/her ideas. poor execution of the marketing mix D. there is too much competition among marketing managers. fragrance was designed to rid scary creatures from a kid's bedroom. bad timing E. it failed because it A. All rights reserved. did not satisfy customer needs on critical factors. everyone has an opinion but no one is willing to take charge. poor product quality B. C. had an incomplete market and product protocol. D. Once shortfalls are identified. 40% 67% 100% 125% 133% 9-65 Copyright © 2016 McGraw-Hill Education. goals set in new-product planning. is shown. If an organization's 2013 sales for the entire U. sales were $30 million. A. C. how to change the promotional strategy B. E. and therefore. B. whether to drop or keep the failing product or market D.S. were $50 million and its 2012 U. .S. No reproduction or distribution without the prior written consent of McGraw-Hill Education. whether to change the goal. what is the annual % sales change? A.264 Marketing dashboards are useful in measuring actual market performance versus the . the annual growth rate in each state . whether the problem is internal or external to the organization C. All rights reserved. if the numbers used for evaluation in the marketing dashboard are accurate UMD9: Marketing Dashboard Map 265 In the UMD9: Marketing Dashboard Map above. with green (which looks gray on printed paper) meaning good and red (which looks black on printed paper) meaning very bad. the first step would be to conduct market research to determine __________. such as sales. the marketing metric used to measure it E. Conduct additional market research in the southern United States. the informal process of brain storming to generate new-product concepts at a marketing staff meeting. and distribution. D. commercialization process SWOT process business prospect development cycle opportunity stage gate sequence new-product process 268 The new-product process refers to . 9-66 Copyright © 2016 McGraw-Hill Education. a formalized protocol for new-product development that begins at the corporate level and ends at the functional level. and evaluation. five key phases ranging from idea generation to creating the first prototype. Focus on the shortfalls in Idaho (ID) and Utah (UT). E. D. B.266 In the UMD9: Marketing Dashboard Map above. the seven stages an organization goes through to identify business opportunities and convert them into salable products or services. B. 269 The new-product process an organization goes through to identify business . E. E. Examine your distribution system in the northeastern United States. is shown. opportunities and convert them into salable products or services contains A. the two stages an organization goes through from idea generation to commercialization. four distinct steps: research. and distribution. C. A. C. If you were a marketing manager faced with this dashboard. D. C. B. A. three phases: planning. All rights reserved. with green (which looks gray on printed paper) meaning good and red (which looks black on printed paper) meaning very poor. E. evaluation. implementation. three main steps: research. 267 The seven stages an organization goes through to identify business opportunities and . seven stages from new product strategy development to commercialization. Change the marketing metric being used to evaluate the states individually. the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing. C. D. production. B. Revise the relevant goals for both east and west coast. production. the annual growth rate in each state . No reproduction or distribution without the prior written consent of McGraw-Hill Education. convert them into salable products or services is referred to as the __________. which of the following would be the best action? A. . process. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Stage 2 is the __________ stage. C. idea generation screening and evaluation screening and analysis new-product strategy development product assessment 271 Figure 9-5 above represents the seven stages of the new-product development . B. . D. B. process. Stage 1 is the __________ stage.Figure 9-5 270 Figure 9-5 above represents the seven stages of the new-product development . A. C. E. All rights reserved. A. D. E. idea generation screening and evaluation screening and analysis new-product strategy development product assessment 9-67 Copyright © 2016 McGraw-Hill Education. D. E. C. A. B. business analysis screening and evaluation market testing commercialization development 275 Figure 9-5 above represents the seven stages of the new-product development . idea generation screening and evaluation screening and analysis new-product strategy development product assessment 273 Figure 9-5 above represents the seven stages of the new-product development . process. D. B. B. C. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Stage 3 is the __________ stage. E. Stage 4 is the __________ stage. E. A. D. idea generation screening and evaluation business analysis new-product strategy development market testing 274 Figure 9-5 above represents the seven stages of the new-product development . A. All rights reserved. process. process. business analysis screening and evaluation market testing commercialization development 9-68 Copyright © 2016 McGraw-Hill Education. C. Stage 5 is the __________ stage. process. Stage 6 is the __________ stage. A. B. . C.272 Figure 9-5 above represents the seven stages of the new-product development . E. C. D. the stage of the new-product process where specific product features and benefits are selected prior creating a new-product prototype. 9-69 Copyright © 2016 McGraw-Hill Education. process. written protocol Stage-Gate process cross-functional team prototype test test market 278 The stage of the new-product process that defines the role for a new product in terms . Stage 7 is the __________ stage. distinctive competency determination new-product strategy development strategic marketing process strategic invention process product protocol definition 279 New-product strategy development refers to . which results in a demonstrable. A. B. E. . C. E. of the firm's overall objectives is referred to as __________. decision making process. A. All rights reserved. C. the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. the stage of the new-product process that turns the idea on paper into a prototype. B. A. producible product corresponding to its protocol. C. A. the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives.276 Figure 9-5 above represents the seven stages of the new-product development . D. E. B. business analysis screening and evaluation market testing commercialization development 277 One reason new products fail is that although most major corporations use a formal . a formalized protocol for new product development determined by director of marketing. sometimes they fail to critically evaluate the progress along the way. D. B. This is why many firms have a __________ to ensure that problems are corrected before proceeding to the next stage. E. D. business analysis. . B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. open innovation and business analysis. B. idea generation. E. E. environmental scanning and open innovation. D. SWOT analysis and environmental scanning. idea generation screening and evaluation new-product strategy development business analysis development 9-70 Copyright © 2016 McGraw-Hill Education. All rights reserved. idea generation screening and evaluation business analysis development new-product strategy development 282 During the first stage of the new-product process. B. B. They are A. E. screening and evaluation. two important activities take place. strategic role the new product might serve in the firm's business portfolio? A. and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats? A. concept testing.280 The first stage of the new-product process is . . 283 In which stage in the new-product process would a firm use both a SWOT analysis . D. 281 Which stage in the new-product process is a SWOT analysis used to identify the . C. A. new-product strategy development. R&D and operations set-up. E. C. concept testing and product forecasting. C. C. D. E. E. revolutionary new product or technology that completely disrupts its business. B. B. A. idea generation product development open innovation assessment screening and evaluation new-product strategy development 286 Developing a pool of concepts to serve as candidates for new products is the . No reproduction or distribution without the prior written consent of McGraw-Hill Education. requires the organization to perform a SWOT analysis and an environmental scan. C. All rights reserved. D. B. __________ stage of the new-product process. D. marketing opportunity disruptive innovation business threat crowdsourcing concept test 285 The stage of the new-product process that develops a pool of concepts to serve as . . 9-71 Copyright © 2016 McGraw-Hill Education. A. candidates for new products is referred to as __________. a firm's Stage 1 product development activities can be blind-sided by a .284 Occasionally. C. E. consists of the techniques used to screen and reject those ideas that have no merit. selects a single concept and scrutinizes it for all potential benefits and flaws. A. which is sometimes called a __________. D. open innovation screening and evaluation product development new-product strategy development idea generation 287 Idea generation is the stage in the new-product process that . C. C. A. E. develops a pool of concepts to serve as candidates for new products. separates ideas into two categories: consumer-oriented and organization-oriented. D. B. the stage of the new-product process where possible promotional campaigns and advertising themes are created. D. E. B. B. All rights reserved. C. C. B. innovation alliances open innovation open collaboration piggy-back thinking stakeholder cooperation 290 Open innovation may enhance the __________ stage of the new-product process. B. the stage of the new-product process when concepts are converted to prototypes. . open innovation screening and evaluation product development new-product strategy development idea generation 291 Open innovation helps organization overcome __________. the discussion and decision of which as target market segments will be selected. E. the techniques used to screen and reject those ideas that have no merit. a practice known as __________. not generate enough useful new-product ideas. E. D. C. A. groupthink intelligent failures incomplete protocols NIH barriers bad timing 9-72 Copyright © 2016 McGraw-Hill Education. D. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. E. A. the stage of the new-product process that develops a pool of concepts to serve as candidates for new-products. This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations. C. . inertias common in new-product failures. 289 Many forward-looking companies have discovered that their own organization does .288 Idea generation refers to . A. one of the organizational . 293 Business researchers emphasize that firms must actively involve customers and . A. D.464 ideas for new . All rights reserved. B. regulators. E. D. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. universities. B. . suppliers in the new-product development process. employees. competitors. C. C. C. E. A. brainstorming groupthink outsourcing crowdsourcing NIH method 295 Dell used __________ to develop an online site to generate 13. A. look like cost them do for them feel like consist of in terms of new features 294 Generating insights leading to marketing actions based on massive numbers of . peoples' ideas is called __________. E. B. suppliers. E. A. products and website and marketing improvements. This means that the focus should be on what the new product will __________ rather than simply what they want. D. C. D.292 All of the following are sources for new product ideas EXCEPT: . brainstorming crowdsourcing group think outsourcing data mining 9-73 Copyright © 2016 McGraw-Hill Education. E. A. C. an Omega-3 enriched SKU for the Philadelphia cream cheese line C. For example.296 IDEO is a company that . conducting a survey among the 2 million people belonging to the NPD Consumer Panel B. 297 Brainstorming sessions at IDEO can generate as many as __________ ideas for . D. creates innovative promotional programs for its clients' new products. observing similar reality programs that are on competing television networks like CBS or MTV C. a carbonated yogurt called Go-Gurt Fizzix D. E. scones with coffee-flavored cream frosting B. Where are you most likely to look first for ideas? A. . inventors. C. organizations also get . B. runs patent searches for companies that don't have and internal legal department. ideas from universities. rates new products like Consumer Reports. brainstorming ideas from the TV production company's employees E. contacting contestants from other reality shows like Survivor or The Amazing Race D. B. is a firm that developed the formal Stage-Gate process to commercialize new products for its clients. 10 25 50 100 200 298 In addition to seeking ideas from more well-known sources. reading about the stars of reality TV programs in gossip magazines like Us Weekly and TV programs like TMZ 9-74 Copyright © 2016 McGraw-Hill Education. All rights reserved. deep fried chicken skins for people who cannot eat pork E. A. General Mills partnered with Brigham Young University to license its patent for __________. D. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. and smaller nontraditional firms. a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos 299 Imagine you work for a TV production company that has been approached by one of . the broadcast TV networks to develop a concept for a new reality show. uses design thinking to develop new products for other organizations. products in an hour. E. Fairfield Inns. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All rights reserved. . B. business.com Warren Buffet's Berkshire Hathaway the Industrial Design Group Unfundale. product ideas to eliminate those that warrant no further effort is referred to as __________. B. __________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources. unlikely to get resources from traditional sources? A. C.com 303 The stage of the new-product process that internally and externally evaluates new. crowdfunding open sourcing venture capital online banking crowdsourcing 302 Which of the following firms uses crowdfunding to raise capital for products that are . B. A. D. obtain the demographics and media behavior of consumers who stay at these facilities in order to develop a target market profile. 301 Because early-stage financing is almost always a problem for those starting a new . E. C. development stage-gate idea generation business analysis screening and evaluation 9-75 Copyright © 2016 McGraw-Hill Education. E. B. assess the strengths and weaknesses of economy hotels that could be used in the new-product development process for the launch of a new economy hotel chain. IDEO Kickstarter. E. complete customer satisfaction surveys to purposefully create inaccuracies in the marketing research for competing economy hotels.300 The Marriott Corporation sent a six-person intelligence team to travel and stay at . C. D. D. C. refute the assumption that open innovation can benefit the Marriott Corporation. D. The purpose of these visits was to A. allow the team to reap the benefits of the new product. A. economy hotels around the country for a six-month period. idea selection and prototype development. B. A. as a replacement for Velcro's hook-and-loop fasteners. where consumers evaluate a new product's performance in an actual-use situation. E. make Formula One race cars more aerodynamic. D. E. 305 The screening and evaluation stage of the new-product process involves . internal and external evaluations of new-product ideas. For example. business and cost analyses. improve the gripping power of batting or work gloves. D. product selection and budgeting projections. D. patent searches and environmental scanning.000 tiny gripping fingers) could be used to improve the gripping power of batting or work gloves. E. at which new product concepts that have been found viable are converted into actual prototypes. 306 The __________ stage of the new-product process includes an examination of the . C. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education.000 tiny fingers) to A. such as 3M determining that the firm's microreplication technology (the 3. at which prospective customers are exposed to new product prototypes for the first time. development Stage-Gate idea generation business analysis screening and evaluation 307 An important aspect of the screening and evaluation stage of the new-product . 9-76 Copyright © 2016 McGraw-Hill Education. D. that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort. A. All rights reserved. 3M was able to use the firm's micro-replication technology (the 3. process is an examination of the technical feasibility for the product.304 Screening and evaluation refers to the stage of the new-product process . B. technical feasibility for the product. B. C. . C. E. C. hold pictures in a photo album without damaging them. keep baseball caps from sliding off the heads of bald men. A. are consistently delivered and experienced. on-time delivery. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. and both before-sale and after-sale service at a specific price. B. D. D.308 A 3M researcher worked with university students to develop the Post-it → Flag . dependability. D. idea generation. Highlighter. His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives. C. a cluster of benefits that an organization promises customers to satisfy their needs. communication. E. convenience. B. idea generation screening and evaluation business analysis new-product strategy development concept testing 309 Customer experience management (CEM) is . the integration of the service component of the marketing mix with efforts to influence consumer demand. a concept test. C. and relevant and valuable to the target market. A. the ability of logistics management to satisfy users in terms of time. A. crowdsourcing. B. new-product strategy development. product idea rather than the actual product is referred to as A. E. market testing. 9-77 Copyright © 2016 McGraw-Hill Education. E. the unique combination of benefits received by targeted buyers that include quality. E. the process of managing the entire customer experience within the company. clearly differentiated from other offerings. At which stage of the new-product process was this product? A. C. Capacity management Customer experience management Derived demand Internal marketing The key service factor 311 An external evaluation with consumers that consists of preliminary testing of a new. All rights reserved. 310 __________ includes considering employee interactions with customers to ensure they . C. . D. and convenience. A. the marketing strategy needed to bring it to market and make financial projections is referred to as A. D. B. in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan. E. internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product.312 A concept test is an . D. external evaluation with consumers that consists of preliminary testing of a newproduct idea rather than the actual product. E. where the target markets are selected and resources are allocated to reach them. E. All rights reserved. . idea generation. business analysis. where the target market segments that show potential are selected and those that do not are eliminated. D. C. A. C. B. that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. product development. commercialization. C. that internally and externally evaluates new-product ideas to eliminate those warranting no further effort. in-house computer simulation of the new product that closely resembles the actual product to forecast sales. 9-78 Copyright © 2016 McGraw-Hill Education. 313 Concept tests are part of which stage in the new-product process? . D. 315 Business analysis refers to the stage of the new product process . marketing analysis. A. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. development screening and evaluation idea generation new-product strategy development business analysis 314 The stage of the new product process that specifies the features of the product and . C. where there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI) that the new product will give back to the firm. internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item. E. D. . development E. B. business analysis B. 318 Detailed financial projections and assessments of marketing and product synergies . D. C. 317 A general review of possible marketing and product synergies. development E. new-product strategy development D. screening and evaluation C. and cannibalization potential would all take place during which stage of the newproduct process? A. idea generation market testing development commercialization business analysis 9-79 Copyright © 2016 McGraw-Hill Education. marketing strategy. business analysis B. These activities are addressed at every stage except new-product strategy development. economically developed and manufactured to the marketing strategy needed. All rights reserved. E. take place during which stage of the new-product process? A. projections are a part of which stage of the new-product process? A. B. screening and evaluation C. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. from whether it can be . C. E. new-product strategy development D. economic analysis. These activities are addressed at every stage with the exception of new-product strategy development.316 An assessment of the fit of the proposed new products. idea generation market testing business analysis development commercialization 319 Factors such as specifying product features. and financial . are a part of which stage of the new-product process? A. C. miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization. 321 A full-scale operating model of the product under development is referred to as a . the availability of the service to when it is needed. C. framework. B. E. B. B. determining whether the new product can be protected with a patent or copyright. All rights reserved. capacity management customer experience management derived demand internal marketing the seven I's of services GDP 9-80 Copyright © 2016 McGraw-Hill Education. D. E. sample. which finds ways to match . B. E. 323 For services. colors. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release. assessing whether the proposed new product fits with the company's mission and objectives. template. simulated operating model of the product given to consumers to use in full-scale field testing. A. D. and sizes to determine which version of the product customers like best. D. 322 A prototype is a . C. using capacity management to find ways to match the availability of the service offering to when it is needed. D. product process EXCEPT: A. . A. digital version of a product produced in multiple shapes. assessing the marketing and product synergies related to the company's existing operations. A.320 All of the following actions occur during the business analysis stage of the new. business analysis must consider __________. full-scale operating model of the product under development. turning the idea on paper into a prototype. C. blueprint. prototype. rationing 326 The stage of the new-product process that turns an idea on paper into a prototype is . 9-81 Copyright © 2016 McGraw-Hill Education. that turns an idea on paper into a prototype. where the first version of a product enters the marketplace. off-peak pricing D. C. idea generation screening and evaluation business analysis commercialization development 327 Development refers to the stage of the new-product process . build-to-order service delivery systems E. C. referred to as __________. E. All rights reserved. __________ to charge different prices during different times of the day or the week to help match the supply and demand for their services. E. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. A. .324 In implementing capacity management. B.opening or closing a store at different times B. sales promotion incentives such as coupons C. A. A. B. where product characteristics and product benefits are selected. A. variable hours of operation . off-peak pricing dynamic pricing capacity pricing down-time pricing yield management pricing 325 One tool available for services when dealing with capacity management is to use . B. service providers use __________ to charge . where initial ideas are generated and discussed. different prices for different times of the day or week to help match the supply and demand for their services. where cross-functional team members and leaders are selected and initial tasks are assigned. D. C. E. market testing idea generation screening and evaluation development business analysis 9-82 Copyright © 2016 McGraw-Hill Education. D. B. new-product strategy development development business analysis screening and evaluation market testing 330 After the new owner purchased a fully equipped yogurt factory. recycler for the business market. B. Barbie is child-tested to be sure the doll cannot be broken apart and . All rights reserved. it took a yogurt . A. E. C. C. E. master a year and a half to come up with the perfect formulation for Chobani Greek Yogurt. B. A. market testing screening and evaluation business analysis development commercialization 329 At Mattel. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. The most likely stage of the new-product process during which this time was spent is __________. product ideas that survive the business analysis stage . A. D. This type of consumer or safety test occurs during the __________ stage of the new-product process. C. accidentally choke a child. . E.328 In the new-product process. Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element? A. proceed to the __________ stage. to develop a battery . C. D. E. development market testing idea generation screening and evaluation business analysis 331 New-product strategy development calls for INGenius Co. B. C. All rights reserved. using fast prototyping to improve the initial service design C. E. D. B. which of the following firms is in the development stage of . In the newproduct process. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. development market testing idea generation screening and evaluation business analysis 333 According to the textbook. . the new-product process for a driverless car? A. D. Honda Apple Google Ford General Motors 334 Another name for the steps in the service delivery process is __________. developing off-peak pricing strategies B. you have seen the ads that show a controlled crash of . service interactions access points path-analysis service encounters wheel of services 335 Which of the following activities are accomplished during the development stage for . D. E. E. ensuring that employees have the commitment and skills to meet customers' expectations and sustain their loyalty D. A. C. this safety test would occur during the __________ stage. analyzing the sequence of service encounters 9-83 Copyright © 2016 McGraw-Hill Education. C. a car containing crash test dummies and the resultant vehicular damage.332 If you watch much television. using capacity management models to match service availability with consumers' needs E. B. services? A. . C. A. conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best. development. B. respond to changing customer service needs. independently run comparison tests with similar products currently in the marketplace to determine which one performs best. compete with Blockbuster's retail store expansion. consumers under realistic purchase conditions to see if they will buy is referred to as A. 338 Market testing refers to . A. E. market testing. which takes 2-3 business days. C. D. screening and evaluation. A.336 Since its launch. 339 All of the following are examples of test markets EXCEPT: . which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix. E. D. expand its focus from entertainment to movie collectibles and memorabilia. conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned. controlled test market concept test market simulated test market laboratory test market standard test market 9-84 Copyright © 2016 McGraw-Hill Education. 337 The stage of the new-product process that exposes actual products to prospective . and introduce next-day delivery through FedEx. No reproduction or distribution without the prior written consent of McGraw-Hill Education. begin preparations to withdraw from its traditional method of mail delivery. exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. Netflix has changed its business model in order to . B. C. making sales and profit projections on prototype products to make go-no-go decisions. C. D. . All rights reserved. B. D. commercialization. avoid head-to-head competition with satellite television providers. E. business analysis. E. B. In the __________ stage of the new-product process. idea generation screening and evaluation business analysis market testing commercialization 341 Audiences are allowed to preview actual movies (a sneak preview) such as The . totally free checking account from Bank One household frequent flyer program from Delta Airlines mid-priced luxury sedan made in America by Mazda new iced coffee beverage from Starbucks slimmer iMac computer 9-85 Copyright © 2016 McGraw-Hill Education. B. containers. No reproduction or distribution without the prior written consent of McGraw-Hill Education. commercialization screening and evaluation business analysis development market testing 343 Which of the products listed below would be the best candidate for full-scale market . This was done on a limited scale to determine consumer reactions before national distribution of the product. . A friend suggested combining spices from India with tea. new product to add to her company's line. A. B. E. D. C. All rights reserved. testing? A. D. C. B. E. market testing business analysis commercialization screening and evaluation concept testing 342 Breyer's introduced a new line of ice cream flavors for sale in elegant black . B. Breyer's new product was in the __________ stage of the new-product process. the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well. E. C. E. A. Hunger Games and Star Trek so that changes might be made before they are released to the general public during which stage of the new-product process? A.340 Nicole owns a small organic spice company called RaisaSpice and was looking for a . C. D. D. 346 If a firm used IRI's BehaviorScan service to track sales of a new product made to a . D. E. E. a technique that replicates a full-scale test market to a limited degree.S. to random sample of people in the top ten major cities of the U. Test marketing is especially important for new. laboratory test market concept test market simulated test market controlled test market standard test market 347 Because of the time. C. B. what type of test market is this? A. E. B. Test marketing is better suited to relatively inexpensive new consumer goods than for new services. cost. to consumers that are representative of the target market. A. Standard test markets are the least expensive and fastest type. All rights reserved. E. B. Test marketing is especially important for new services. expensive industrial products. packaged goods firms often turn to __________. only on certain days of the week and hours of the day. D. D. on a limited basis in a defined area. often in a mall setting. . D. A.344 Test marketing involves offering a product for sale . C. consumer . B. partial rollouts screening and evaluation virtual reality testing time-to-market measures simulated test markets 9-86 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. and confidentiality problems of test markets. C. in as broad a geographic region as possible. C. panel of consumers and assess the effectiveness of advertising and other promotion tactics. A. 345 Which of the following statements about test marketing is most accurate? . Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results. 351 Commercialization is the stage in the new-product process . A.348 Simulated test markets (STMs) are often run in shopping malls where consumers are .S. B. B. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 349 The stage of the new-product process that positions and launches a new product in . full-scale production and sales is referred to as __________. exposing actual products to prospective consumers under realistic purchase conditions. when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard. A. All rights reserved. during which the firm performs its final evaluations of the new-product. marketing program execution disbursement launch commercialization final distribution 350 Commercialization refers to . A. the point where new-product concepts are transformed into prototypes. the point at which a new product has diffused throughout the marketplace. at which the product generates the greatest sales and profits. D. questioned about how often they are likely to shop in that particular location. . B. C. at which the product is positioned and launched in full-scale production and sales. A. E. questioned to identify product users and their likely consumption and media patterns. D. the introduction of an offering to sequential geographic areas of the U. asked how much a person is willing to pay for an unfamiliar item. the stage of the new-product process that positions and launches a new product in full-scale production and sales. 9-87 Copyright © 2016 McGraw-Hill Education. asked whether they saw the firm's advertising campaign. C. C. E. E. E. D. when advertising campaigns are evaluated using Starch scores to identify brand awareness. asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product. D. B. shelves.on their retail . B. E. Such slotting fees significantly increase the cost of which stage of the newproduct process? A. slotting fee. D. product support fee. is A. 9-88 Copyright © 2016 McGraw-Hill Education. 354 Marketers pay slotting fees to grocers in payment for space . No reproduction or distribution without the prior written consent of McGraw-Hill Education. screening and evaluation. E. business analysis market testing screening and evaluation commercialization idea generation 355 Kroger required that Birds Eye pay $15. bribe. . shelf space allowance. manufacturer makes to a wholesaler as compensation for warehousing inventory. development. manufacturer makes to have a wholesaler distribute a new product to retailers. manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf. E. B. business analysis.352 The most expensive stage in the new-product process for most products and services . C.or slots . C. C. commercialization. manufacturer makes to place a new product on a retailer's shelf. A. E. This payment is an example of a A. D. market testing. wholesaler makes to place a new product on a retailer's shelf. B. C. All rights reserved. product placement fee. 353 A slotting fee is a payment that a . D. Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country. B.000 per month to get its new Vegetable . D. E. production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as A. B. a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers. a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf. C.S. phased commercialization. phased rollouts. D. A.356 A failure fee is a penalty payment . All rights reserved. C. E. What is this type of payment called? A. an opportunity cost charge lost sales fee shelf space allowance product displacement fee a failure fee 358 Introducing new-products sequentially into geographic areas of the U. limited rollouts. Snapple plans to introduce the beverage into areas in the Midwest. D. some . and then the eastern U. 9-89 Copyright © 2016 McGraw-Hill Education. C. E. limited rollout. B. D. D. market-product expansion. regional rollouts. Over the next year.S. phased commercialization. B. to allow . . 359 A new beverage by Snapple is currently being sold only in the western United States. regional rollout. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 357 If a new grocery product does not achieve a predetermined sales target. market-product expansion. a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell. B. C. This distribution strategy during commercialization is referred to as a A.not keeping point-of-purchase displays continuously stocked with the new product. a retailer makes to a manufacturer for stockouts . . retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate. E. a retailer assesses a manufacturer to handle defective new products that customers returned. phased rollout. B. C. E. fix it" . perpendicular development time to market red tape cutting fast concepting delivery expediting 361 Parallel development is the simultaneous development of both . try it. E. D. expedited time to market fast prototyping parallel development controlled test marketing concept testing 9-90 Copyright © 2016 McGraw-Hill Education. B. E. A. All rights reserved. A. . involving the simultaneous development of both the product . D. E. the product and promotion strategies. and the production process. cross-functional teams the marketing department research and development engineers product managers top management 363 __________ often speeds up software development by using a "do it. D. A. D.360 Speed or __________ is often vital in introducing a new product. B. production and selling methodologies. . Time to market Parallel development Test marketing Groupthink Fast prototyping 364 Which of the following methods is commonly used in software development to speed . up the development process? A. C. D. B. production and financing tactics. is the responsibility of __________. B. approach that encourages continuous improvement even after the initial design. E. 362 Parallel development. C. R&D and financial analysis. C. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the product and the production process. A. . Give an example of each. B. C.365 The initial target market for X-1 products consisted of __________. No reproduction or distribution without the prior written consent of McGraw-Hill Education. audiophiles who want HD Sirius/XM Satellite radio receivers in their homes D. co-workers Team X-1 employees retail buyers R&D lab IDEO 367 X-1 performs all of the following activities during the development stage of its new. good. and weatherproof audio equipment C. D. 9-91 Copyright © 2016 McGraw-Hill Education. athletes who want waterproof. service. product process EXCEPT: A. define a product. C. B. seniors who want easy-to-use TV remotes with large buttons B. consumers who want an inexpensive MP3 player like the old Sony Walkman E. D. A. . and an idea. E. Explain the characteristics that would . All rights reserved. sweatproof. smartphone users who want a "plug-in" device that lets them listen to AM radio on their smartphone 366 X-1 uses all of the following sources to generate new-product ideas EXCEPT: . E. A. conduct safety tests conduct market tests use 3D drawings conduct functionality tests develop prototypes Short Answer Questions 368 Briefly define what is meant by a product. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All rights reserved. Why are . 370 What are the four types of consumer products? How do they differ? . and . shopping. a consumer product. 371 Explain the differences in promotion between convenience. specialty. some products difficult to categorize as one or the other? Give an example of a business product. 9-92 Copyright © 2016 McGraw-Hill Education. . and a product that is difficult to categorize. unsought products.369 Explain the difference between consumer products and business products. The movie also was made widely available in video stores. No reproduction or distribution without the prior written consent of McGraw-Hill Education. it was shown on pay-per-view channels and then on premium movie channels. 373 The movie The Hunger Games opened originally in a select number of theaters . before opening nationwide.372 Explain what an unsought product is and give some examples. After its theater run. All rights reserved. . and on DVD/Blue-ray. . . 374 Define derived demand and provide an example NOT included in the text. What type(s) of consumer product is this movie? Explain your answer. via Netflix. 9-93 Copyright © 2016 McGraw-Hill Education. 375 What categories of products are classified as business support products? Give an . example of each category. 376 Describe the three ways services can be classified. . 377 Services incorporate the four I's of product marketing. How would each of these four . elements apply to a stock brokerage service? 9-94 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 378 What does it mean when we say services are intangible. How do marketers of . services overcome the problems associated with intangibility? 379 What is the difference between intangibility and inseparability of services? . 380 Characterize the difference between a product line and a product mix. Give an . example of each. 9-95 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 381 Describe the different ways to define a product as new. . 382 Compare continuous, dynamically continuous, and discontinuous innovations. . Provide the marketing strategy and an example of each. 383 What are the eight marketing reasons for new-product failures? . 9-96 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Thirsty Dog! Thirsty Cat! Ad 384 The Thirsty Dog! & Thirsty Cat! ad above shows an example of a product that failed . in the marketplace. Identify and describe the reason(s) for this unique item's marketing-related product failure. 385 Identify and describe each stage in the new-product process in the correct order. . 9-97 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 386 What is idea generation in the new-product process? From where do forward thinking . marketers get their ideas? 387 How could a firm use a test market in its new-product process? . 388 Explain why NOT all products can use test markets. . 9-98 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. produces.Chapter 09 Developing New Products and Services Answer Key Multiple Choice Questions 1. tablet computing. and ideas). E. iPad. iPhone. AACSB: Analytical Thinking 9-99 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 1 Easy Topic: Chapter Opener: Apple 2. as the world's most admired company and Bloomberg Businessweek perennially rates Apple as the most innovative company in the world. animated movies. and CarPlay are all examples of Apple's commitment to __________. C. Macintosh. services. and digital publishing. B. Fortune rated it as the world's most admired company and Bloomberg Businessweek perennially identifies it as the most innovative company in the world. Fortune rated Apple Inc. D. The late Steve Jobs's innovations revolutionized six industries: personal computers. E. iPod. 212 ) The Apple II. and markets new products (goods. 212 ) Advertising Age named its CEO Marketer of the Decade. D. B. A. . (p. IBM Microsoft 3M Kodak Apple Steve Jobs was named Marketer of the Decade. C. music. sustainable procurement social responsibility new product development using renewable resources respecting its workforce The life of an organization depends on how it conceives. (p. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. phones. This firm is A. music. Level of Difficulty: 2 Medium Topic: Chapter Opener: Apple 4. . Level of Difficulty: 2 Medium 9-100 Copyright © 2016 McGraw-Hill Education. iPod iCloud iCar iPad CarPlay This is a description of CarPlay. and digital publishing. (p. E. and receiving messages. B. As of mid-2013. D. 212 ) The late Steve Jobs oversaw or invented innovations that revolutionized six industries. All rights reserved. phones. C. which allows users a "smarter. and more fun way to use iPhone in the car" is referred to as A. D. Apple had not yet revolutionized the cable television industry. 213 ) The Apple innovation that leading car manufacturers are incorporating into their offering that allows users a "smarter. E. music smartphones personal computers cable television tablet devices The late Steve Jobs oversaw or invented innovations that revolutionized six industries: personal computers. No reproduction or distribution without the prior written consent of McGraw-Hill Education. listening to music. safer. safer. (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved.Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. C. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. tablet computing. Level of Difficulty: 2 Medium Topic: Chapter Opener: Apple 3. Which industry below is NOT one of them? A. and more fun way to use iPhone in the car" by facilitating making phone calls. animated movies. a tangible good received in exchange for a person's time and effort. service. 213 ) A. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. Level of Difficulty: 1 Easy Topic: Product 6. or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as __________. combined.product.product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. E. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. a utility bundle a product a service an idea merchandise Key term definition .Topic: Chapter Opener: Apple 5. service. D. A product refers to (p. (p. a good that has in some way been altered. is a thought that leads to an action such as a concept for a new invention. 213 ) A good. Level of Difficulty: 1 Easy Topic: Product 9-101 Copyright © 2016 McGraw-Hill Education. B. B. a good. Key term definition . C. C. All rights reserved. . D. or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. or improved and sold to organizational buyers. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. only for barter.product. bundle of tangible and intangible attributes C. array of physical attributes E. only for legal tender (money). service. D. 213 ) A product is a good. No reproduction or distribution without the prior written consent of McGraw-Hill Education. assortment of value-possessing activities D. or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. A. service. (p. E. collection of tangible qualities Key term definition . promise or commitment exchanged between a seller and a buyer B. for providing value. Level of Difficulty: 1 Easy Topic: Product 9-102 Copyright © 2016 McGraw-Hill Education. Key term definition . or idea consisting of a(n) __________ that satisfy consumers' needs and is received in exchange for money or something else of value. Level of Difficulty: 1 Easy Topic: Product 8.7. 213 ) A product is a good. C. for a person's time and effort. (p. . B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. for money or something else of value. All rights reserved.product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. Level of Difficulty: 1 Easy Topic: Product 10. but also services and ideas as well. . (p. A good has tangible attributes that a consumer's __________ can perceive. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. C. B. E. 214 ) As a marketing term.good. All rights reserved. cognitive intelligence vision knowledge of past experiences five senses emotional intelligence Text term definition . marketing invention merchandise product concept Throughout the textbook. __________ generally includes not only physical goods. the term product generally includes not only physical goods but services and ideas as well. C. D. A. 214 ) A. E. D. B.9. Level of Difficulty: 1 Easy Topic: Goods 9-103 Copyright © 2016 McGraw-Hill Education. (p. good. service Goods can be divided into nondurable goods and durable goods. good. conceptual durable. Level of Difficulty: 1 Easy Topic: Goods 9-104 Copyright © 2016 McGraw-Hill Education. B. B. C. A durable good is one that usually lasts over many uses. and mobile phones. D. product concept. D. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. E. artifact. such as food products and fuel. A nondurable good is an item consumed in one or a few uses. desired tactile. aesthetic required. All rights reserved. nondurable product. such as appliances.11. Level of Difficulty: 1 Easy Topic: Goods 12. cars. Text term definition . new idea. E. C. Goods can be divided into __________ goods and __________ goods. (p. 214 ) A product that has tangible attributes that a consumer's five senses can perceive is referred to as a(n) A. service. 214 ) A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. functional. A good also may have intangible attributes consisting of its delivery or warranties and embody more abstract concepts. Which of the following statements regarding goods is most accurate? (p. such as cars. In contrast. The division of products into durable and nondurable goods helps to __________. No reproduction or distribution without the prior written consent of McGraw-Hill Education. rely heavily on consumer advertising. . B. For example. such as Wrigley's gum. Some goods also have intangible attributes. generally emphasize personal selling. C. E. Music is not considered a good because it only involves a single sense hearing. Level of Difficulty: 2 Medium Topic: Goods 9-105 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. (p. 214 ) A. C. such as becoming healthier or wealthier. nondurable goods. an item must appeal to all five senses.13. comply with NAICS guidelines address environmental concerns comply with ISO 9000 requirements classify products for tax purposes provide direction for marketing actions This classification method of dividing products into durable and nondurable goods also provides direction for marketing actions. B. you cannot use an auditory medium. Level of Difficulty: 2 Medium Topic: Goods 14. The aroma of chocolate chip cookies is considered an idea because it affects one's senses. 214 ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. All rights reserved. costly durable goods. E. To market a good that contains visual attributes. In order to be classified as a good. D. D. E. Nondurable goods would rely more on advertising than durable goods. The durable and nondurable classification applies to services as well as to products. durable good convenience good specialty good shopping good nondurable good Text term definition . In contrast. Level of Difficulty: 1 Easy Topic: Nondurable goods 9-106 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Goods 16.nondurable good. (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. nondurable goods rely heavily on consumer advertising. B. E. C. .15. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. durable goods generally emphasize personal selling. Nondurable goods would rely more on personal selling than durable goods. There is little if any difference between marketing actions between durable and nondurable goods. 214 ) A. Durable goods would benefit more on advertising than nondurable goods. A __________ is defined as an item consumed in one or a few uses. This classification method also provides direction for marketing actions. D. A nondurable good is an item consumed in one or a few uses whereas a durable good is one that usually lasts over many uses. D. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Which of the following statements regarding goods is most accurate? (p. 214 ) A. For example. B. C. B.nondurable good. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 214 ) A. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. Text term definition . All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. B. 214 ) Items consumed in one or a few uses. C. item consumed in one or a few uses. Level of Difficulty: 1 Easy Topic: Nondurable goods 9-107 Copyright © 2016 McGraw-Hill Education.17. Level of Difficulty: 1 Easy Topic: Nondurable goods 18. E. A. product purchased only for the use of ultimate consumers. services perishable goods durable goods nondurable goods disposable goods Text term definition . item that lasts at least one year without becoming obsolete. are referred to as __________. E. C. such as food and fuel. D. (p. D. product used in the production of other products. A nondurable good is defined as a(n) (p. item that usually lasts over an extended number of uses.nondurable good. advertising and wide distribution are especially important for A. Because nondurable goods are purchased frequently and at relatively low cost. specialty products. . D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Recognize the various terms that pertain to products and services. laundry detergent shoes insurance iPod laser surgery A nondurable good is an item consumed in one or a few uses.19. All rights reserved. (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. durable goods. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. consumer advertising and wide distribution in retail outlets are essential. Laundry detergent also has this characteristic and is classified as a nondurable good. semidurable goods. E. E. nondurable goods. Level of Difficulty: 2 Medium Topic: Nondurable goods 20. 214 ) Among consumer products. Which of the following is the best example of a nondurable good? (p. 214 ) A. Level of Difficulty: 3 Hard Topic: Nondurable goods 9-108 Copyright © 2016 McGraw-Hill Education. B. C. D. production goods. such as food or fuel. B. All rights reserved. bicycle toaster orange juice deck furniture watch The classification of durable versus nondurable provides direction for marketing actions. 214 ) A. . automobile e-reader baseball gasoline shoes A nondurable good is an item consumed in one or a few uses. Which of the following is the best example of a nondurable good? (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education.21. 214 ) A. C. such as food or fuel. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Recognize the various terms that pertain to products and services. D. nondurable goods. Advertising is most important for which of the following products? (p. C. such as orange juice. E. Level of Difficulty: 3 Hard Topic: Nondurable goods 9-109 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. rely heavily on consumer advertising. E. B. D. Level of Difficulty: 2 Medium Topic: Nondurable goods 22. For example. B. (p. reliable products. Text term definition . Text term definition . E. All rights reserved. A durable good is defined as a(n) (p. product purchased only for the use of ultimate consumers. Level of Difficulty: 1 Easy Topic: Durable goods 9-110 Copyright © 2016 McGraw-Hill Education. endurable goods. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. B.durable goods. 214 ) Products that usually last over many uses. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 214 ) A. Level of Difficulty: 1 Easy Topic: Durable goods 24. D. . are referred to as A. item that usually lasts over an extended number of uses. nondisposable goods. item that lasts at least one year without becoming obsolete. imperishable goods. item consumed in one or a few uses. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. B. durable goods. product used in the production of other products. C.23. such as cars and appliances. E. D. C.durable goods. . B. 214 ) A. reliable products. All rights reserved. D. cars. A durable good is one that usually lasts over an extended number of uses. D. C. E.25. imperishable goods. E. 214 ) A. Level of Difficulty: 2 Medium Topic: Durable goods 9-111 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. Level of Difficulty: 2 Medium Topic: Durable goods 26. B. and smartphones. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. nondisposable goods. sales promotion personal selling advertising public relations direct marketing Durable goods emphasize the personal selling element of the promotional mix as compared to nondurable goods where advertising is more important. Durable goods emphasize which of the following elements of the promotional mix? (p. Cars and appliances are classified as (p. durable goods. such as appliances. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. reusable goods. D. B. C. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. services goods products marketing mix ideas Key term definition . All rights reserved. 214 ) Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as __________. C. 214 ) A.27. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. such as silverware. Level of Difficulty: 1 Easy Topic: Services 9-112 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 3 Hard Topic: Durable goods 28. E. A.services. Which of the following is considered a durable good? (p. (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Recognize the various terms that pertain to products and services. D. silverware caviar marketing research chewing gum voting A durable good is one that usually lasts over an extended number of uses. B. All rights reserved. the tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Level of Difficulty: 1 Easy Topic: Services 30. 214 ) A. Level of Difficulty: 1 Easy Topic: Services 9-113 Copyright © 2016 McGraw-Hill Education. ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. C. any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. C.services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. D. any activity required for the production of a good that cannot be completed "inhouse" and must be outsourced to another firm. E. 214 ) A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Services refer to (p. . Key term definition . such as technical support for a computer. the activities provided to complement a tangible good.29. D. B. philanthropic activities performed in without expectations of monetary remuneration. E.services. Services are (p. intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Key term definition . the human (nonmechanical) component that is part of the manufacturing process. S. gross domestic product as compared with goods? A.S. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . B. D.6 trillion to the U. while goods provide only half that. All rights reserved.31. See Figure 9-1. economy. 214 ) Services contribute how much to the U. Figure 9-1 shows that services now contribute about $7. Level of Difficulty: 1 Easy Topic: Services Figure 9-1 9-114 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. (p. E. more important now that goods. C.S. services contribute about the same services contribute about half as much services contribute about twice as much services contribute about one quarter as much services are not a component of GDP Services have become a significant part of the U. GDP. C. Level of Difficulty: 3 Hard Topic: Services 9-115 Copyright © 2016 McGraw-Hill Education. See Figure 9-1. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Recognize the various terms that pertain to products and services. D. Since then. financial advice. E. support products. services have been a larger component of the economy. services were worth almost $1 billion. All rights reserved. Level of Difficulty: 2 Medium Topic: Services 33. or telephone service that an organization provides to consumers are referred to as A. goods and services contributed almost equally to the gross domestic product (GDP). which of the following statements is most accurate? (p. B. D. benefits. Services are a smaller part of the gross domestic product than are goods. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. C. Services are intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Until 1980. services. As shown in Figure 9-1 above. In 2012.32. 214 ) A. production goods. (p. In 1995. goods. . B. goods were 50 percent of the GDP. In 2012. goods and services contributed almost equally to the gross domestic product (GDP). No reproduction or distribution without the prior written consent of McGraw-Hill Education. Until 1980. 214 ) Intangible items such as airline trips. E. goods represent a larger part of the gross domestic product than services. All rights reserved. D. . lamp motorcycle potato chips a marketing class environmentalism Services are intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. Level of Difficulty: 3 Hard Topic: Services 35. C. 214 ) A. Which of the following is considered a service? (p. online banking bathing suit silverware washing machine freedom Services are intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. D. Which of the following is considered a service? (p. C.34. No reproduction or distribution without the prior written consent of McGraw-Hill Education. such as online banking. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Recognize the various terms that pertain to products and services. such as the marketing class students are taking. E. Level of Difficulty: 3 Hard Topic: Services 9-116 Copyright © 2016 McGraw-Hill Education. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Recognize the various terms that pertain to products and services. 214 ) A. B. more important now that goods. a concept explaining the behavior of an individual or group. . The marketing of services is.36. In the U.. Only 10% of all jobs created in the United States are in the services sector. services contribute about twice the value of goods to the GDP. E. D. economy.S.6 trillion to the U. an idea is (p. GDP. Text term definition . All rights reserved. Figure 9-1 shows that services now contribute about $7. services play only a minor role in GDP on a global scale.idea. Level of Difficulty: 2 Medium Topic: Services 37. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. In marketing. Which of the following statements about services is most accurate? (p. an observation about an individual or group and how they use a service or product. an inspiration that evolved from market research.S. D. Services have become a significant part of the U. while goods provide only half that. an observation about a series of events. 214 ) A. C. C. See Figure 9-1. in a practical sense. Although a major contributor to the GDP nationally. E. a thought that leads to a product or action. identical to the marketing of products or ideas since they both satisfy customer needs.S. Level of Difficulty: 1 Easy Topic: Idea 9-117 Copyright © 2016 McGraw-Hill Education. 214 ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. B. idea. haircut birdfeeder theater production marketing class security An idea is a thought that leads to a product or action. . Level of Difficulty: 3 Hard Topic: Idea 40. 214 ) A. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. AACSB: Analytical Thinking 9-118 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 1 Easy Topic: Idea 39.38. B. C. items purchased frequently and with a minimum of shopping effort. a(n) __________ is a thought that leads to a product or action. All rights reserved.consumer products. Which of the following is considered an idea? (p. D. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-01 Recognize the various terms that pertain to products and services. Consumer products refer to (p. products that assist directly or indirectly in providing products for resale. products an industrial buyer will make an effort to seek out and buy. observation inspiration innovation idea perception Text term definition . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-01 Recognize the various terms that pertain to products and services. products purchased by the ultimate consumer. E. products used in the production of other items. (p. 214 ) A. C. such as the notion of security. B. 215 ) A. E. D. Key term definition . In marketing. B. The other products listed are business products. 215 ) A. C. Level of Difficulty: 3 Hard Topic: Consumer products 9-119 Copyright © 2016 McGraw-Hill Education. bricks cotton fiber printing press suitcases mainframe computer Consumer products like suitcases are products purchased by the ultimate consumer. Level of Difficulty: 1 Easy Topic: Consumer products 42. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. (p. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. generic products end user goods personal items merchandise consumer products Key term definition . D. . 215 ) Products that are purchased by the ultimate consumer are referred to as __________. E. Which of the following would most likely be considered a consumer product? (p.Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All rights reserved. B. Level of Difficulty: 1 Easy Topic: Consumer products 41. A.consumer products. C. E. supplies necessary for the day-to-day operations of a business. B.43. products organizations buy that assist in providing other products for resale. C. products purchased by the ultimate consumer. C. E. products that are sold exclusively to for-profit businesses. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. D. Level of Difficulty: 1 Easy Topic: Business products 9-120 Copyright © 2016 McGraw-Hill Education. (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Business products refer to (p.business products.business products. Key term definition . reseller goods wholesale goods business products ancillary products retail products Key term definition . E. Level of Difficulty: 1 Easy Topic: Business products 44. B. . D. 215 ) A. ancillary services necessary for the operation of a business. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. A. 215 ) Products organizations buy that assist in providing other products for resale are referred to as __________. Business products are also referred to as __________. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. . commodities industrial products wares resale products merchandise Business products. D. B. B2B products B2C products B4B products BOB products B4C products Business products. B. C. also called B2B (business-to-business) products or industrial products. Business products are also referred to as __________. D. E. Level of Difficulty: 1 Easy Topic: Business products 46. C. also called B2B (business-to-business) products or industrial products. are ones that assist directly or indirectly in providing products for resale. E. 215 ) A.45. (p. Level of Difficulty: 1 Easy Topic: Business products 9-121 Copyright © 2016 McGraw-Hill Education. 215 ) A. (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. are ones that assist directly or indirectly in providing products for resale. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. C.47. D. 215 ) A. C. Each classification results in different marketing actions. consumer merchandise organizational resale business Business products. E. An iMac is not a nondurable good because it is not consumed in one or a few uses. No reproduction or distribution without the prior written consent of McGraw-Hill Education. a nondurable good. . also called B2B (business-to-business) products or industrial products. (p. E. are ones that assist directly or indirectly in providing products for resale. Level of Difficulty: 2 Medium Topic: Classifying products 9-122 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. (p. B. B. a consumer product. an Apple iMac computer can be sold to consumers for personal use or to business firms for office use. D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Industrial products are also referred to as __________ products. a business product. All rights reserved. Some products can be considered both consumer and business items. For example. Level of Difficulty: 1 Easy Topic: Business products 48. a durable good. 215 ) An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT: A. a B2B product. quality. (2) frequency of purchase. Level of Difficulty: 1 Easy Topic: Convenience products 9-123 Copyright © 2016 McGraw-Hill Education. and (3) the A.convenience products. Key term definition . products consumers purchase frequently and with a minimum of shopping effort. demographics of the consumer. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. See Figure 9-2. Level of Difficulty: 2 Medium Topic: Classifying consumer products 50. items that consumers will make special efforts to seek out and buy. E. low-cost items for which there are numerous substitutes and generic equivalents. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified.49. D. or style. and (3) frequency of purchase. D. C. number of competing or substitute products. (p. E. All rights reserved. ancillary products used to make other products work more efficiently. C. consumer segmentation characteristics. (2) attributes used in making the purchase decision. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. amount of money the customer is willing and able to spend. 215 ) Consumer product classifications differ in terms of the: (1) effort the consumer spends on the decision. The four types of consumer products differ in terms of the: (1) effort the consumer spends on the decision. . Convenience products refer to (p. attributes used in making the purchase decision. items for which consumers compare several alternatives on criteria such as price. 215 ) A. C. Because consumers are unwilling to exert much search effort. convenience products must be widely available at a widespread variety of retail outlets. See Figure 9-2.51. D. . All rights reserved. D. only online from the manufacturer. B. E. B. 215 ) In terms of price. No reproduction or distribution without the prior written consent of McGraw-Hill Education. With respect to distribution. convenience products are available (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. C. shopping product convenience product specialty product unsought product supplies Convenience products are a consumer product that is a relatively low-priced consumer product. which of the following types of consumer product would be relatively inexpensive? A. on a widespread basis at many outlets. only at convenience stores. See Figure 9-2. Level of Difficulty: 2 Medium Topic: Convenience products 52. Level of Difficulty: 2 Medium Topic: Convenience products 9-124 Copyright © 2016 McGraw-Hill Education. 215 ) A. (p. at a large number of specialty outlets. at relatively few outlets. E. (p. B. See Figure 9-2. availability. availability. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. consumers are aware of the brand but will accept substitutes. 215 ) In terms of promotion. shopping convenience specialty unsought supply Promotion for convenience products stresses price. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. 215 ) In terms of brand loyalty. See Figure 9-2. which of the following type of product would stress price. Level of Difficulty: 2 Medium Topic: Convenience products 54.53. Level of Difficulty: 2 Medium Topic: Convenience products 9-125 Copyright © 2016 McGraw-Hill Education. E. and awareness? A. C. B. D. All rights reserved. convenience products specialty products unsought products shopping products supplies For convenience products. and awareness. E. consumers are aware of a brand but will readily accept substitutes for which type of product? A. . (p. D. E. widely available.55. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. 215 ) Items for which the consumer compares several alternatives on several criteria such as price. Kindle Fire Lexus LS 460 luxury automobile flight on United Airlines Roget's Thesaurus Hidden Valley Ranch salad dressing Salad dressing is relatively inexpensive. quality. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Which of the following is the best example of a convenience product? (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. C. C. B.shopping products. Level of Difficulty: 1 Easy Topic: Shopping products 9-126 Copyright © 2016 McGraw-Hill Education. D. and is purchased frequently with little time and effort. advertised and promoted heavily. Level of Difficulty: 3 Hard Topic: Convenience products 56. . 215 ) A. E. or style are referred to as __________. A. specialty products selective products shopping products prestige products convenience products Key term definition . All rights reserved. D. (p. or style. Key term definition . D. Level of Difficulty: 1 Easy Topic: Shopping products 9-127 Copyright © 2016 McGraw-Hill Education. convenience product. conveniently. C. specialty product. shopping product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. E. and with a minimum of effort. such as impulse purchases. Level of Difficulty: 1 Easy Topic: Shopping products 58. B2B product. does not know about or knows about but does not initially buy. purchases frequently. and style is a(n) A. C. unsought product. compares several alternatives on criteria such as price. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. makes a special effort to search out and buy. . quality.shopping products. All rights reserved. buys as a result of buying others' consumer products. Key term definition . 215 ) A. Shopping products refer to items that the consumer (p. E. 215 ) The type of good for which the consumer compares several alternatives on such criteria as price.shopping products.57. B. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. (p. quality. by special order from the manufacturer. B. Level of Difficulty: 2 Medium Topic: Shopping products 9-128 Copyright © 2016 McGraw-Hill Education. on a widespread basis at many outlets. B. E. D. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 215 ) Which type of consumer product is purchased relatively infrequently and the purchase decision takes some time because the consumer compares offerings during the shopping experience? A. (p. 215 ) A. D. With respect to distribution.59. at an extremely small number of outlets. at relatively few outlets. convenience product shopping product specialty product unsought product discretionary product Figure 9-2 shows that for shopping products. E. C. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Figure 9-2 shows that shopping products are available at a large number of selective outlets. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. consumers make these purchases infrequently and require extended shopping time to compare offerings. All rights reserved. Level of Difficulty: 2 Medium Topic: Shopping products 60. shopping products are available (p. at a large number of selective outlets. C. Level of Difficulty: 2 Medium Topic: Shopping products 62. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. No reproduction or distribution without the prior written consent of McGraw-Hill Education. shopping product convenience product specialty product unsought product discretionary product Figure 9-2 shows that the promotion goal for a shopping product is to differentiate it from competitors. Level of Difficulty: 2 Medium Topic: Shopping products 9-129 Copyright © 2016 McGraw-Hill Education. (p. E. which of the following type of consumer product stresses product differentiation from competitors? A. B. Figure 9-2 indicates that shopping products are fairly expensive and are distributed through a large number of selective outlets. With respect to price and availability. 215 ) A. 215 ) In terms of promotion. . D. relatively inexpensive but very limited availability. C. very expensive and available at a large number of selective outlets.61. relatively inexpensive and widely available. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. E. All rights reserved. B. shopping products are likely to be (p. fairly expensive and available at a large number of selective outlets. very expensive with very limited availability. D. or style . (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. C. D. . Level of Difficulty: 2 Medium Topic: Shopping products 64. B.the situation described for your new car purchase. test drive different makes and models. Into which classification of consumer products would your new car purchase fall? A. You talk to friends about it. consumers prefer specific brands but will accept substitutes for which type of consumer product? A. shopping product convenience product specialty product unsought product discretionary product Figure 9-2 shows that consumers will prefer specific brands of shopping products but will accept substitutes. No reproduction or distribution without the prior written consent of McGraw-Hill Education. specialty product unsought product discretionary product shopping product convenience product Shopping products are items for which the consumer compares several alternatives on criteria such as price. C. 215 ) You decide to buy a new car. 215 ) In terms of brand loyalty. Level of Difficulty: 3 Hard Topic: Shopping products 9-130 Copyright © 2016 McGraw-Hill Education. research mechanical specifications in Consumer Reports. E. E.63. (p. B. All rights reserved. D. quality. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. and compare prices at several dealerships. All rights reserved. products a consumer will make a specific effort to search out and buy. quality. E. Key term definition . Level of Difficulty: 2 Medium Topic: Specialty products 9-131 Copyright © 2016 McGraw-Hill Education. products for which there are no close substitutes. convenience product shopping product specialty product unsought product discretionary product Figure 9-2 shows that the consumer makes infrequent purchases of specialty products and needs extensive search and decision time for their purchase. No reproduction or distribution without the prior written consent of McGraw-Hill Education. products purchased for their prestige or high perceived value. (p. C. Level of Difficulty: 1 Easy Topic: Specialty products 66. B. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. items that the consumer does not know about or knows about but does not initially buy. Specialty products refer to (p. 215 ) Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision? A. items for which the consumer compares several alternatives on several criteria such as price. C.65. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. . or style.specialty products. D. E. D. 215 ) A. Level of Difficulty: 2 Medium Topic: Specialty products 9-132 Copyright © 2016 McGraw-Hill Education. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. shopping product convenience product discretionary product prepurchase product specialty product Figure 9-2 shows very limited distribution takes place for specialty products.67. C. Distribution is very limited with which of the following type of consumer product? (p. convenience product shopping product discretionary product specialty product unsought product Figure 9-2 shows that specialty consumer products are usually very expensive. B. All rights reserved. C. . (p. Level of Difficulty: 2 Medium Topic: Specialty products 68. D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. D. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. B. which of the following type of consumer product would usually be very expensive? A. 215 ) With respect to price. 215 ) A. E. 215 ) In terms of promotion. All rights reserved. 215 ) In terms of brand loyalty. B. B. Level of Difficulty: 2 Medium Topic: Specialty products 9-133 Copyright © 2016 McGraw-Hill Education. shopping product convenience product specialty product unsought product discretionary product Figure 9-2 shows that consumers are very brand loyal and will not accept substitutes for specialty products. No reproduction or distribution without the prior written consent of McGraw-Hill Education. specialty product convenience product shopping product unsought product discretionary product Figure 9-2 indicates that promotion of specialty products stresses the uniqueness of the brand and status of the product. C. . (p. E. consumers are very brand loyal and will not accept substitutes for which type of consumer product? A. which of the following type of consumer product stresses status and brand uniqueness? A.69. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. (p. D. Level of Difficulty: 2 Medium Topic: Specialty products 70. D. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. and other items.71. convenience products shopping products unsought products specialty products discretionary products Specialty products are items that a consumer makes a special effort to search out and buy. They are only available in your area in a Waterford shop 40 miles from campus. E. E. (p. D. convenience product shopping product discretionary product unsought product specialty product Burberry sells specialty products that a consumer makes a special effort to search out and buy. Level of Difficulty: 3 Hard Topic: Specialty products 9-134 Copyright © 2016 McGraw-Hill Education. many that feature the company's distinctive plaid. D. . All rights reserved. clothing. 215 ) Burberry makes fine raincoats. B. Level of Difficulty: 3 Hard Topic: Specialty products 72. Into which classification of consumer products would the Waterford crystal serving bowls fall? A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. B. Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. No reproduction or distribution without the prior written consent of McGraw-Hill Education. (p. Items are usually expensive and are found in a very limited number of high-end stores. 215 ) You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. Originally found only in Great Britain. C. Burberry is selling which classification of consumer product? A. such as the Waterford crystal serving bowls. products that people choose to ignore because they find them offensive from a moral or ethical perspective. See Figure 9-2. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. like burial insurance.73. snow shovel smartphone gym membership calculator burial insurance Unsought products are items that the consumer either does not know about or knows about but does not initially want. Level of Difficulty: 2 Medium Topic: Unsought products 9-135 Copyright © 2016 McGraw-Hill Education. E. C.unsought products. Key term definition . products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle. 215 ) A. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Unsought products are (p. any products associated with impulse buys at the supermarket checkout counter. D. Which of the following is most likely to be an example of an unsought product? (p. products that the consumer does not know about or knows about but does not initially want. C. items within a company's product line that do not perform as well as others in the line. Level of Difficulty: 1 Easy Topic: Unsought products 74. 215 ) A. B. E. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified.75. B. Level of Difficulty: 2 Medium Topic: Unsought products 9-136 Copyright © 2016 McGraw-Hill Education. shopping product. unsought product. D. offering consumer and trade sales promotions establishing the uniqueness and status of the brand generating awareness differentiating the brand from competitive brands stressing price and availability in advertising Figure 9-2 shows that awareness is an essential goal of promotion for unsought products. E. B. Figure 9-2 shows that very infrequent purchases and some comparison shopping characterize the purchase behavior of consumers for unsought products like a thesaurus. (p. support product. convenience product. 215 ) With respect to promotion. which of the following strategies would most likely be used for unsought products? A. Level of Difficulty: 2 Medium Topic: Unsought products 76. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. C. . All rights reserved. C. E. (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. specialty product. D. 215 ) Very infrequent purchases with some comparison shopping are characteristic of the purchasing behavior for a type of consumer product (such as a thesaurus) that a prospective buyer may not initially want. This type of consumer service is referred to as a(n) A. B. unsought product. specialty product. C.77. like Roget's Thesaurus. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. discretionary product. . Level of Difficulty: 3 Hard Topic: Unsought products 9-137 Copyright © 2016 McGraw-Hill Education. shopping product. E. Which of the following is most likely to be an example of an unsought product? (p. 215 ) A newly-invented apple peeling and coring machine for the consumer market would be considered a(n) A. C. convenience product. 215 ) A. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. B. All rights reserved. D. Level of Difficulty: 2 Medium Topic: Unsought products 78. (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Unsought products are items that the consumer either does not know about or knows about but does not initially want. iPod MP3 player Lexus LS 460 luxury automobile flight on American Airlines to Phoenix Roget's Thesaurus Ivory soap Unsought products are items that the consumer either does not know about or knows about but does not initially want. like this kitchen product that would initially lack awareness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. . He or she may not initially want this service. convenience product. unsought product. No reproduction or distribution without the prior written consent of McGraw-Hill Education. For these people. 215 ) Fifty percent or more of American adults have not had their teeth checked by a dentist within the last five years. shopping product. they also know the service can be very expensive and perhaps uncomfortable. C. Level of Difficulty: 3 Hard Topic: Unsought products Figure 9-2 9-138 Copyright © 2016 McGraw-Hill Education. specialty product. especially if the consumer hasn't seen the dentist for the past five years. While most consumers know about dental checkups. B. business product. Unsought products are items that the consumer either does not know about or knows about but does not initially want. dental services would most likey be classified as a(n) A. E. D. All rights reserved. perhaps being afraid of what the check-up might reveal.79. (p. C. column A would represent which type of product? (p. D. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 215 ) A. C. Level of Difficulty: 2 Medium Topic: Classification of consumer products 81. shopping convenience specialty prestige unsought Figure 9-2 shows that specialty products (A) are items that a consumer makes a special effort to search out and buy. According to Figure 9-2 above. D.80. According to Figure 9-2 above. Level of Difficulty: 2 Medium Topic: Classification of consumer products 9-139 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. B. . column B would represent which type of product? (p. B. E. All rights reserved. 215 ) A. shopping convenience specialty prestige unsought Figure 9-2 shows that unsought products (B) are items that the consumer does not know about or knows about but does not initially want. E. 82. According to Figure 9-2 above, column C would represent which type of product? (p. 215 ) A. B. C. D. E. shopping convenience specialty prestige unsought Figure 9-2 shows that convenience products (C) are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 2 Medium Topic: Classification of consumer products 83. According to Figure 9-2 above, column D would represent which type of product? (p. 215 ) A. B. C. D. E. shopping convenience specialty prestige unsought Figure 9-2 that shopping products (D) are items for which the consumer compares several alternatives on criteria, such as price, quality, or style. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 2 Medium Topic: Classification of consumer products 9-140 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 84. (p. 215 ) Considering the classification of consumer products, which of the following products will have the most limited distribution? A. B. C. D. E. Secret antiperspirant Fuji disposable camera BP gasoline Marchesa wedding gown Sony HDTV Marchesa wedding gowns will have the most limited distribution since they are a specialty product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 3 Hard Topic: Classification of consumer products 85. (p. 215 ) Vivienne, a college student with limited financial resources, was considering the purchase of a new automobile. She went from car dealer to car dealer in several different cities searching for the lowest price on a new economy car. She devoted a great deal of time and energy to getting the best value for her money. For Vivienne, an automobile was a(n) __________. A. B. C. D. E. specialty product unsought product discretionary product shopping product convenience product Because Marissa searched a variety of car dealers and was looking for the lowest price on her new car, a shopping product for her. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 3 Hard Topic: Classification of consumer products 9-141 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 86. (p. 216 ) The demand for a business product that results from the demand for a consumer product is referred to as A. B. C. D. E. sequential demand. selective demand. primary demand. secondary demand. derived demand. Text term definition - derived demand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 1 Easy Topic: Derived demand 87. Which of the following best illustrates the concept of derived demand? (p. 216 ) A. The number of retail stores in a downtown area decreases even though demand for retail goods increases. B. An increase in the number of new, single-family homes results from a spike in the gross national product. C. A Chinese plastics company increases its output because of its customers' higher toy exports to the United States. D. A heat wave results in an increased demand for air conditioners. E. Honda reducing its car prices causes GM to do the same. Sales of industrial products (plastics) frequently result from the sale of consumer products (Chinese toy exports sold in the U.S.). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 3 Hard Topic: Derived demand 9-142 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 88. (p. 216 ) Heavy-duty Rayovac flashlights are sold to consumers throughout the United States. However, Philips manufactures the bulbs used in Rayovac flashlights. The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells. This is an example of A. B. C. D. E. a tying arrangement. reciprocity. strategic alliance demand. relationship marketing. derived demand. Derived demand refers to sales of business and industrial products (flashlight light bulbs) frequently resulting from the sale of consumer products (flashlights). In this case, Rayovac buys large quantities of bulbs from Philips, but only enough to match the number of flashlights they sell to U.S. consumers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 3 Hard Topic: Derived demand 89. The two main classifications of business products are (p. 216 ) A. B. C. D. E. durable and nondurable products. components and support products. tangible and intangible products. consumer and industrial products. derived and maintenance products. Business products may be classified as components or support products. Components are items that become part of the final product whereas support products are items used to assist in producing other products and services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 2 Medium Topic: Business products 9-143 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 90. __________ are items that become part of the final business product. (p. 216 ) A. B. C. D. E. Components Accessories Support products Production goods Raw assemblies Text term definition - components. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 1 Easy Topic: Components products 91. (p. 216 ) Raw materials, such as grain or lumber as well as assemblies or parts, are referred to as A. B. C. D. E. production goods. components. accessories. support products. raw assemblies. Components are items that become part of the final product. These include raw materials such as lumber, as well as assemblies such as a Ford car engine. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 2 Medium Topic: Components products 9-144 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 216 ) Products such as tools and repair services that are used to assist in producing other products and services are referred to as __________. (p. and industrial services used to assist in producing other products and services are referred to as __________. D. . supplies. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. E. Level of Difficulty: 1 Easy Topic: Support products 9-145 Copyright © 2016 McGraw-Hill Education.support products. components parts production goods raw materials support products Text term definition .support products. B. 216 ) Installations. All rights reserved.92. A. D. B. Level of Difficulty: 1 Easy Topic: Support products 93. E. C. components complementary products support products derived products materials Text term definition . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. accessory equipment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. (p. supplies. and legal services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. supplies. Level of Difficulty: 2 Medium Topic: Support products 95. such as buildings and fixed equipment. such as buildings and fixed equipment. and legal services. These include: (1) installations. such as maintenance. (p. paper clips. 216 ) The type of business products known as support products includes installations. such as tools and office equipment. industrial services components materials derived products complementary products Business products used to assist in producing other products and services are support products. A. accessory equipment components derived products complementary products materials Business products used to assist in producing other products and services are support products. repair. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. and (4) industrial services. industrial services. E. and brooms. (p. D. such as stationery. (3) supplies. 216 ) The type of business products known as support products includes installations.94. such as maintenance. (2) accessory equipment. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. accessory equipment. (3) supplies. C. Level of Difficulty: 2 Medium Topic: Support products 9-146 Copyright © 2016 McGraw-Hill Education. such as tools and office equipment. These include: (1) installations. All rights reserved. B. such as stationery. C. and __________. paper clips. A. D. (2) accessory equipment. and (4) industrial services. and __________. repair. and brooms. B. and brooms. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. and (4) industrial services. and __________. paper clips. Level of Difficulty: 2 Medium Topic: Support products 9-147 Copyright © 2016 McGraw-Hill Education. D. 216 ) The type of business products known as support products includes installations. . paper clips. and legal services. accessory equipment. (3) supplies. such as tools and office equipment. industrial services. repair. and (4) industrial services. A. All rights reserved. components supplies materials derived products complementary products Business products used to assist in producing other products and services are support products. 216 ) The type of business products known as support products includes installations. D. E. such as stationery. Level of Difficulty: 2 Medium Topic: Support products 97. repair. and legal services. A. (2) accessory equipment. such as tools and office equipment. such as maintenance. and brooms. (p. These include: (1) installations. (2) accessory equipment. E.96. complementary products materials industrial services derived products components Business products used to assist in producing other products and services are support products. and __________. C. such as stationery. such as buildings and fixed equipment. such as buildings and fixed equipment. These include: (1) installations. accessory equipment. such as maintenance. (p. C. supplies. (3) supplies. B. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. support products include installations such as (p. E. Among business products.installations. D. convenience products. 216 ) A. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Support products are items used to assist in producing other products and services. mechanical pencils. such as automated assembly lines. B. buildings and fixed equipment. and light bulbs. C. copy paper. Installations are support products that include items such as (p. tools and office equipment. Level of Difficulty: 1 Easy Topic: Support products 99. and legal services. . B. such as buildings. Text term definition . like warehouses and fixed equipment. E.98. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. raw materials and component parts. repair. D. welding masks and computers. janitorial and legal services. These include installations. warehouses and automated assembly lines. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 216 ) A. lumber and engine parts. maintenance. Level of Difficulty: 3 Hard Topic: Support products 9-148 Copyright © 2016 McGraw-Hill Education. E. Level of Difficulty: 3 Hard Topic: Support products 101. 216 an installation? ) A. 216 classified as which kind of business products? ) A. Among business products. such as the large sheet metal-making machine. such as buildings like a factory. D. These include installations. which of the following would most likely be considered (p. Level of Difficulty: 3 Hard Topic: Support products 9-149 Copyright © 2016 McGraw-Hill Education. installations finished goods supplies industrial services raw materials Installations are expensive items such as buildings and fixed equipment. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. An extremely large machine for producing sheet metal from steel ingots would be (p. C. B. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified.100. D. a factory roof tiles a cleaning service a photocopier a drill press Items used to assist in producing other products and services are support products. B. All rights reserved. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. and legal services. raw materials and component parts. C. tools and office equipment. repair. Text term definition . D. B.accessory equipment. D. components.102. Accessory equipment are support products that include items such as (p. Text term definition . buildings and fixed equipment. 216 equipment are referred to as ) A. 216 ) A. installations. Level of Difficulty: 1 Easy Topic: Support products 103. C. B. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. stationery. E.accessory equipment. raw materials. . paper clips. support products that include tools and office (p. Level of Difficulty: 1 Easy Topic: Support products 9-150 Copyright © 2016 McGraw-Hill Education. accessory equipment. maintenance. and brooms. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Among business products. supplies. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . drafting tables would be best considered which type of (p. C. such as tools like a pneumatic nail gun. Among business products. B. Level of Difficulty: 3 Hard Topic: Support products 105. Among business products. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. copper wiring a factory a cleaning service pneumatic nail gun ink-jet printer cartridges Business products used to assist in producing other products and services are support products. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. installations accessory equipment supplies industrial services raw materials Accessory equipment includes tools and office equipment like drafting tables.104. 216 accessory equipment? ) A. All rights reserved. D. Level of Difficulty: 3 Hard Topic: Support products 9-151 Copyright © 2016 McGraw-Hill Education. These include accessory equipment. 216 support products? ) A. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. which of the following would most likely be considered (p. E. C. and brooms. and legal services. and light bulbs. B. Among business products. and brooms. . All rights reserved. batteries. Level of Difficulty: 1 Easy Topic: Support products 107. supplies usually consist of (p. repair. items used in the manufacturing process and become part of the final product. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. No reproduction or distribution without the prior written consent of McGraw-Hill Education. stationery. C.supplies. D. items such as pens. E. raw materials and component parts. 216 ) A. Text term definition . paper clips. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. buildings and fixed equipment. C. B. Level of Difficulty: 3 Hard Topic: Support products 9-152 Copyright © 2016 McGraw-Hill Education. raw materials and component parts. D. Supplies are similar to convenience products and consist of products like stationery. 216 ) A. maintenance. tools and office equipment. Supplies are support products that include items such as (p. paper clips. buildings and fixed equipment. tools and office equipment.106. E. Level of Difficulty: 3 Hard Topic: Support products 109. and brooms. Among business products. Level of Difficulty: 3 Hard Topic: Support products 9-153 Copyright © 2016 McGraw-Hill Education. B. B. printer paper would be classified as which type of (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Among business products. .108. which of the following would most likely be considered (p. installations accessory equipment supplies industrial services raw materials Supplies are similar to convenience products and consist of products like stationery. C. photocopier sheet rock ink-jet printer cartridges cleaning service concert hall chairs Business products used to assist in producing other products and services are support products. These include supplies. 216 support product? ) A. 216 supplies? ) A. D. E. D. C. such as ink-jet printer cartridges. paper clips. All rights reserved. Level of Difficulty: 1 Easy Topic: Support products 9-154 Copyright © 2016 McGraw-Hill Education.industrial services. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. D. tools and office equipment. B. C. buildings and fixed equipment. Level of Difficulty: 3 Hard Topic: Support products 111. 216 ) A. Text term definition . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. repair. which of the following would most likely be considered (p. 216 supplies? ) A. These include supplies. All rights reserved. stationery. B. . Among business products. E. laser printer phosphoric acid cleaning service magnetic resonance imaging (MRI) scanner trash bags Business products used to assist in producing other products and services are support products. paper clips. maintenance. Industrial services are support products that include items such as (p. raw materials and component parts. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified.110. and legal services. such as trash bags. and brooms. tractor phosphoric acid photocopier maintenance athletic training facility syringes Business products used to assist in producing other products and services are support products. . ancillary service industrial service specialty service accessory service contractual service Business products used to assist in producing other products and services are support products. B. When a small retail chain hires an accountant to do its income taxes. D. C. E. such as accounting services. which of the following would most likely be considered (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. 216 an industrial service? ) A. ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. B.112. 216 chain would have purchased a(n) __________. C. Level of Difficulty: 2 Medium Topic: Support products 113. D. These include industrial services. Level of Difficulty: 3 Hard Topic: Support products 9-155 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. These include industrial services. E. All rights reserved. Among business products. the retail (p. such as those offered as part of a photocopier maintenance contract. Among business products. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. such as legal services. Level of Difficulty: 3 Hard Topic: Support products 115. E. 216 department would most likely be classified as which type of support product? ) A. E. All rights reserved. accessory equipment industrial services supply materials component parts installations Industrial services are intangible activities to assist the industrial buyer such as designing and installing a computer network. ancillary services contractual services specialty services accessory services industrial services Items used to assist in producing other goods and services are support products. B. A retail chain hires a company to design and install a computer network that would (p.114. The retail chain purchased which kind of business products? A. 216 allow each store in the chain to check the inventory of others in the chain for ) customer-requested items. legal counsel for patent information for a firm's R&D (p. . B. D. D. These include industrial services. Level of Difficulty: 3 Hard Topic: Support products 9-156 Copyright © 2016 McGraw-Hill Education. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. C. C. their location on perceptual maps. C. Services can be classified according to whether they are __________. . or government agencies. organizational reach. or (3) they are government sponsored. D. or (3) government agencies. Services can be classified according to whether (1) they are delivered by people or equipment. E. Services can be classified by (p. (2) they are profit or nonprofit.116. E. D. their use of idle capacity time. Level of Difficulty: 2 Medium Topic: Classifying services 9-157 Copyright © 2016 McGraw-Hill Education. the nature of their ownership. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 216 ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. their method of delivery. B. All rights reserved. B. 216 nonprofit organizations. for-profit or (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. ) A. Level of Difficulty: 2 Medium Topic: Classifying services 117. national or global use independent contractors privately owned or publicly owned delivered by people or equipment owned by individuals or corporations Services can be classified according to whether they are (1) delivered by people or equipment. (2) profit or nonprofit. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. . or government agencies. (2) profit or nonprofit. national or global use independent contractors privately owned or publicly owned owned by individuals or corporations for profit or nonprofit organizations Services can be classified according to whether they are (1) delivered by people or equipment. B. Level of Difficulty: 2 Medium Topic: Classifying services 9-158 Copyright © 2016 McGraw-Hill Education. E. D.118. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. E. and whether ) they are __________. B. (2) profit or nonprofit. C. or (3) government agencies. C. 216 equipment. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A. Services can be classified according to whether they are delivered by people or (p. D. __________. government agencies a national organization or a global organization privately owned or publicly owned performed by independent contractors owned by individuals or corporations Services can be classified according to whether they are (1) delivered by people or equipment. 216 equipment. Services can be classified according to whether they are delivered by people or (p. whether they are for profit or nonprofit organizations. or (3) government agencies. ) A. Level of Difficulty: 2 Medium Topic: Classifying services 119. All rights reserved. people-delivered services. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. . B. government-delivered services.Figure 9-3 120. E. Services can be classified according to whether they are delivered by: (1) people or equipment. Consider Figure 9-3 above. (2) for-profit or nonprofit organizations. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Services can be classified by their method of delivery. D. or (3) government agencies. equipment-delivered services. Level of Difficulty: 2 Medium Topic: Classifying services 9-159 Copyright © 2016 McGraw-Hill Education. fee-delivered services. 216 Box A represents ) A. C. All rights reserved. nonprofit-delivered services. Figure 9-3 shows one classification: whether services are delivered by people (B) or equipment (A). (p. . D. D. C. Services can be classified by their method of delivery. unskilled labor. Consider Figure 9-3 above. technology-based services. (p. Figure 9-3 shows one classification: whether services are delivered by people (B) or equipment (A). skilled labor. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. Level of Difficulty: 2 Medium Topic: Classifying services 9-160 Copyright © 2016 McGraw-Hill Education. skilled labor. E. nonprofit services. equipment-based services. Level of Difficulty: 2 Medium Topic: Classifying services 122. Services can be classified according to whether they are delivered by: (1) people or equipment. and professionals. B. skilled operators. 216 ) A. fee-based services. volunteers. and unskilled labor automated. people-based services. C. (2) for-profit or nonprofit organizations. and professionals unskilled operators. E. and professionals unskilled labor. (p. or (3) government agencies. All rights reserved. The categories for people-based services include __________. skilled operators. and skilled labor automated. skilled operators. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. 216 Box B represents ) A.121. and professionals Figure 9-3 shows that the three categories for people-based services include unskilled labor. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. and the management consultant is professional labor. The security guard is unskilled labor. D. only accountants are a people-based service. E. They never use off-peak pricing. B. What do a security guard. Level of Difficulty: 3 Hard Topic: Classifying services 9-161 Copyright © 2016 McGraw-Hill Education. all are people-based services. Level of Difficulty: 2 Medium Topic: Classifying services 124. and a management consultant have in (p. C. Which of the following is the best example of a people-based service? (p. the plumber is skilled labor. They are all equipment-based services. 216 common? ) A. C. B. They are all tangible services. See Figure 9-3. They are all people-based services. They do not have problems with idle production capacity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. D. a plumber. 216 ) A. movie theaters airlines accounting vending machines taxis Figure 9-3 shows that of those services listed. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. E.123. All rights reserved. Level of Difficulty: 2 Medium Topic: Classifying services 9-162 Copyright © 2016 McGraw-Hill Education. C. and those operated by skilled operators. Compared with people-based services. E. All rights reserved. and professional operators C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 216 marketing concern of ) A. Level of Difficulty: 2 Medium Topic: Classifying services 126. equipment-based services do not have the (p. 216 ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. inconsistency. those operated by relatively unskilled operators. automated. D. simple machines. Equipment-based services do not have the marketing concern of inconsistency because people are removed from the provision of the service. The categories for equipment-based services include __________. (p. . unskilled operators. immeasurability. skilled operators. hand tools. and safety equipment D. technical equipment. those powered by unskilled labor. complex machines B.125. and those operated by professionals E. and those operated by skilled operators Figure 9-3 shows that the three categories for equipment-based services include automated (self-service). B. those operated by unskilled operators. insensitivity. intangibility. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. inventory. simple machines. those operated by skilled operators. B. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Classifying services 128. Equipment-based services do not have the marketing concern of inconsistency because people are removed from the provision of the service. D. Equipment-based services do not have the marketing concern of inconsistency (p. risk and product liability people learning requirements automations accessories Equipment-based services do not have the marketing concern of inconsistency because people are removed from the provision of the service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. . Level of Difficulty: 2 Medium Topic: Classifying services 9-163 Copyright © 2016 McGraw-Hill Education. and automated car (p. intangibility. do not have the marketing concern of ) A. D. ) A. independence. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. online brokerage firms. E. B. Equipment-based services like ATMs. inventory. 216 because __________ have been removed from the delivery of the service. All rights reserved. C.127. inconsistency. C. 216 washes. inseparability. 129. C. an automated carwash. lawn care doctors taxis lawyers janitorial services Figure 9-3 shows that of those services listed here. only taxis are equipment-based services. C. What do a dry cleaning service. Level of Difficulty: 3 Hard Topic: Classifying services 9-164 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. and maintenance equipment. the carwash requires automated equipment. See Figure 9-3. and the taxi service needs vehicles. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. B. . All rights reserved. Level of Difficulty: 3 Hard Topic: Classifying services 130. garages. 216 ) A. 216 common? ) A. the dry cleaning service requires a dry cleaning store and cleaning equipment. D. They are all people-based services. They never use off-peak pricing. None of them has problems with idle production capacity. Which of the following is the best example of an equipment-based service? (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. and a taxi service have in (p. They are all tangible services. All of the other alternatives are people-based services. E. B. They are all equipment-based services. E. Of these equipment-based services. D. The online travel agency. thought that marketing activities would harm demand. limousine service. No reproduction or distribution without the prior written consent of McGraw-Hill Education. See Figure 9-3. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. E. worried that marketing would limit their profitability as nonprofit organizations. They are all people-based services. and a railroad have in (p. D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. and railroad all require a significant amount of equipment to deliver the service. C. 216 common? ) A. have increased their use of marketing practices to improve communication with constituents. Level of Difficulty: 2 Medium Topic: Classifying services 9-165 Copyright © 2016 McGraw-Hill Education. . Level of Difficulty: 3 Hard Topic: Classifying services 132. In recent years. They are all strictly tangible services. What do an online travel agency.131. D. nonprofit organizations such as the American Red Cross have begun to use marketing practices to help achieve their goals. B. They are all equipment-based services. E. They all require skilled operators. B. All rights reserved. were eager to use marketing practices but were not permitted to do so since they were 501C3 organizations as classified by the IRS. many nonprofit organizations such as The American Red Cross (p. a limousine service. Recently. None of them has a problem with idle production capacity. C. 217 ) A. could not afford marketing activities. a governmental agency. The American Red Cross uses marketing to help achieve its goals. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. As a service. ) nonprofit organizations such as Sterile Feral have turned to marketing to help it A. Level of Difficulty: 3 Hard Topic: Classifying services 9-166 Copyright © 2016 McGraw-Hill Education. maintain its nonprofit status. a for-profit organization. In recent years. E. a business firm. and releases them back into the wild. D. C. D. Inc. vaccinates. nonprofit organizations such as the American Red Cross have begun to use marketing practices to help achieve their goals. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Sterile Feral. In recent years. E. B. equipment-based.133. receive additional government funding. In recent years. nonprofit organizations such as the American Red Cross have begun to use marketing practices to help achieve their goals. 217 neuters. expand its business to stray dogs. to achieve its goals of better serving the communities in which it operates. All rights reserved. compete with other similar organizations. 217 can be classified as ) A. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 2 Medium Topic: Classifying services 134. it (p. B. is a nonprofit organization that catches wild or stray cats. It then (p. a nonprofit organization. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All are government agency service providers. 217 park system? ) A. It is manufacturer's agency. None fit on the service continuum. Forest Service. D. They are all government agency service providers. What do the United States Post Service. and the Phoenix Fire Department have in common? ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. They are all privately owned companies. C. Capacity management is not an issue for these organizations. It is a regional non-profit. the Connecticut Department of Social (p. 217 Services. Level of Difficulty: 3 Hard Topic: Classifying services 136. Level of Difficulty: 3 Hard Topic: Classifying services 9-167 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. It is a good-dominate organization on the service continuum. It is a government agency service provider. which manages our national (p. B. What type of organization is the U. Forest Service is a government agency service provider. It is a privately owned firm.135. The U. D.S. All rights reserved. B. C.S. E. . E. They never experience idle production capacity. inseparability. and inventory. Key term definition . intangibility. B. (p. Level of Difficulty: 1 Easy Topic: Four is of services 9-168 Copyright © 2016 McGraw-Hill Education. intangibility. Level of Difficulty: 1 Easy Topic: Four is of services 138. inconsistency. and impression. and impression.four I's of services. B. C. All rights reserved. and innovation. inconsistency. No reproduction or distribution without the prior written consent of McGraw-Hill Education. ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. 217 ) A. innovation. 217 inseparability. inseparability. inventory. C. intangibility.which are referred to as the __________. . E. D. There are four unique elements to services .137.intangibility. innovation. inventory. inflexibility. The four I's of services consist of (p. inconsistency. service mix four I's of services service matrix 4Ps of services service continuum Key term definition . D.four I's of services. inconsistency. intangibility. intangibility. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. and impression. and inventory . E. seen. that is. can't be held. The intangibility element of a service refers to the fact that it (p. All rights reserved. touched. Services are intangible. or seen before the purchase decision. can be objectively evaluated. they can't be held. Level of Difficulty: 2 Medium Topic: Four is of services 9-169 Copyright © 2016 McGraw-Hill Education. can maintain or accumulate good will with customers. touched. has value that can only be determined by using subjective criteria. B. or seen before their purchase. . E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. they are much more difficult for consumers to evaluate. Because services tend to be a performance rather than an object. they are much (p. or touched before the purchase decision. B. that is. requires the ability to provide the service even in times of no demand. 217 ) A. opportunity good risk decision performance Services are intangible. Level of Difficulty: 2 Medium Topic: Four is of services 140. Because services tend to be a(n) __________ rather than an object. C. D. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service.139. they can't be held. No reproduction or distribution without the prior written consent of McGraw-Hill Education. ) A. 217 more difficult for consumers to evaluate. D. E. they are much more difficult for consumers to evaluate. D. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Services are intangible. Level of Difficulty: 2 Medium Topic: Four is of services 9-170 Copyright © 2016 McGraw-Hill Education. interdependence of services. the (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Four is of services 142. marketers try to make them tangible or show the benefits of using the service. E. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. . or seen before their purchase. B. they can't be held. intangibility of services. marketers try to make them (p. touched. incongruity of services. that is. Consumers have more difficulty evaluating services than they do products. or seen before their purchase. To help consumers assess and compare services. C. Because services tend to be a performance rather than an object. inflexibility of services. 217 difficulty results from the ) A. To help consumers assess and compare services. ) A. touched. inseparability of services. they can't be held. intangible consistent tangible timely measurable Services are intangible. that is. 217 __________ or show the benefits of using the service.141. B. C. D. . marketers like Singapore Airlines try to make them tangible or show the benefits of using the service. E. To help consumers assess and compare services. or seen before their purchase. temporal consistent adaptable measurable show the benefits of using the service Services are intangible. Singapore Airlines has advertising that shows a traveler in the airline's new seats (p. marketers try to make them (p. To help consumers assess and compare services. 217 and emphasizes food and other amenities to overcome the __________ of its ) service. No reproduction or distribution without the prior written consent of McGraw-Hill Education. or seen before their purchase. ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. B. touched. Level of Difficulty: 3 Hard Topic: Four is of services 9-171 Copyright © 2016 McGraw-Hill Education. A. that is. touched. To help consumers assess and compare services. Level of Difficulty: 2 Medium Topic: Four is of services 144.143. D. they can't be held. marketers try to make them tangible or show the benefits of using the service. All rights reserved. B. C. incongruity inconsistency inventory costs inseparability intangibility Services are intangible. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. C. 217 tangible or __________. D. E. they can't be held. that is. A. or seen before their purchase. Level of Difficulty: 3 Hard Topic: Four is of services 9-172 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. She is concerned because a massage. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Which characteristic of services is she concerned about? A. touched. Kelly and Doug were unable to judge the service before they bought it. E. or seen before their purchase. Sarah cannot judge a massage before purchase because of the service's intangibility. C. and drove away in their bright yellow van. only then did the couple see that they did a good job. incongruity inconsistency intangibility inventory costs inseparability Services are intangible. 217 carpets cleaned by Stanley Steemer. ) unlike a pair of shoes. B. Level of Difficulty: 3 Hard Topic: Four is of services 146. E. Kelly and Doug decided to have their (p. The carpet cleaners arrived on time. that is. Before moving out of their apartment. B. that is. A carpet cleaning service must be purchased before consumers can evaluate it. inconsistency inseparability inventory costs intangibility interdependence Services are intangible.145. C. touched. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. they cannot be held. which illustrates the __________ of services. . cannot be experienced or seen before she buys it. She believes a massage would loosen (p. they cannot be held. a company specializing in professional carpet ) cleaning. D. cleaned the carpets. D. Sarah has a backache due to overexertion. 217 her back muscles and help her feel better. To help consumers assess and compare services. that is. All rights reserved. Level of Difficulty: 3 Hard Topic: Four is of services 148. 217 personable animal characters in its advertising to announce and describe benefits. C. A. E. Services are intangible. ) such as leather seats and stretch seating. C. they cannot be held. E. incongruity inconsistency inventory costs inseparability intangibility Services are intangible. To help consumers assess and compare its airline service. they can't be held. Frontier Airlines uses (p. The pictures allow customers to feel less uncertain about their service purchase. B. 217 amenities.147. incongruity of the service. D. . a customer ) has a better idea of what she is buying. marketers try to make them tangible or show the benefits of using the service. touched. inseparability of the service. Spa Sydell uses a brochure to help customers deal with the __________ that is associated with using the service. intangibility of the service. that is. or seen before their purchase. Level of Difficulty: 3 Hard Topic: Four is of services 9-173 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. touched. B. inflexibility of the service. D. Frontier Airlines sells perishable and intangible transportation from one point to another and tries to make the service more tangible by describing tangible benefits with the personable animals shown in their advertising campaigns. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. By seeing the pictures of available treatments at the spa. No reproduction or distribution without the prior written consent of McGraw-Hill Education. or seen before their purchase. to help deal with the A. interdependence of the service. The brochure for Spa Sydell has photographs of people enjoying the various spa (p. their quality varies with each person's capabilities and day-today job performance. D. A. B. Level of Difficulty: 2 Medium Topic: Four is of services 9-174 Copyright © 2016 McGraw-Hill Education. their quality varies (p. and delivering services is challenging because the quality of a service is often inconsistent. independent of managerial policies. pricing. promoting. independent of the quality delivered. Because services depend on the people who provide them. their quality varies with each person's capabilities and day-today job performance. promoting. C. tied to a product. Level of Difficulty: 2 Medium Topic: Four is of services 150. As a result. E. This element of ) services is referred to as __________. C. and delivering services is challenging because the quality of a service is often inconsistent. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. 217 is often ) A. Developing.149. inventoried. incongruity differentiation variation inconsistency intangibility Developing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. pricing. . the quality of a service (p. 217 with each person's capabilities and day-to-day job performance. Services depend on the people who provide them. D. inconsistent. All rights reserved. Because services depend on the people who provide them. Because services depend on the people who provide them. B. Organizations attempt to reduce inconsistency through standardization and training. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Four is of services 152. paying higher incentives to employees to encourage satisfactory performance. Developing. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All rights reserved. there is no regulation of service industries in terms of basic standards of quality. their quality varies with each person's capabilities and day-to-day job performance. training and standardization of service delivery procedures cannot be accomplished. pricing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. promoting. the quality of service provided by a firm is often inconsistent with its image. the performance of one employee may vary from the performance of another employee even though the same firm employs both. and delivering services are challenging because (p. Because services depend on the people who provide them. 217 ) A. C. exercising better hiring practices. Organizations attempt to reduce ) this inconsistency by A. 217 the quality of the service is often inconsistent. services have a varying degree of durability.151. reducing incentives available to employees because of poor performance. C. Inconsistency of services refers to the fact that (p. reducing the customer contact points in the service delivery process. providing standardization and training. D. B. E. E. B. . Level of Difficulty: 2 Medium Topic: Four is of services 9-175 Copyright © 2016 McGraw-Hill Education. As a result. This is an example of a service being ) A. their quality varies with each person's capabilities and day-to-day job performance. The students' disappointment was the direct result of which characteristic of services? A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. B. the quality of the performance was much poorer than they had heard and seen on campus. inseparable. and lose by 10 runs on the next. A local band performed on campus during a pre-graduation party.153. . The students (p. independent of the quality delivered. The Philadelphia Phillies baseball team may have great hitting and pitching one (p. 217 enjoyed the performance. But when they went to that concert. D. The band for whatever reason did not perform as well at the downtown venue as it had on campus. inconsistency impressionability intangibility invisibility uniqueness of the service Because services depend on the people who provide them. inventoried. tied to a product. Level of Difficulty: 2 Medium Topic: Four is of services 154. B. C. Services depend on the people who provide them. C. For example. All rights reserved. the Philadelphia Phillies baseball team may have great hitting and pitching one day and the next day lose by 10 runs. D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. their quality varies with each person's capabilities and day-to-day job performance. E. inconsistent. Level of Difficulty: 3 Hard Topic: Four is of services 9-176 Copyright © 2016 McGraw-Hill Education. 217 day. Inconsistency is more of a problem in services than it is with tangible goods. and some of them were interested enough to buy tickets ) to see another show at a club downtown. C. . Organizations like Alana's attempt to reduce inconsistency through standardization and training. picking up ) cleaning. for people who are too busy to perform these simple acts. E. All rights reserved. E. impressionability intangibility inconsistency inseparability uniqueness of the service Because services depend on the people who provide them. their quality varies with each person's capabilities and day-to-day job performance. such as walking the dog. A.155. D. Alana provides extensive training for each of her employees. Level of Difficulty: 3 Hard Topic: Four is of services 156. their quality varies with each person's capabilities and day-to-day job performance. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. 217 her staff of 60 perform everyday services. B. and going to the post office. She and (p. Organizations like Andrea's attempt to reduce inconsistency through standardization and training. a concierge company. One way she tries to avoid ___________ of services for her regular customers is to make sure that the same well-trained person is always assigned to work for her clients. B. What unique aspect of services is Alana trying to address? A. D. 217 planning of their weddings. waiting for the repairman. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. Andrea Arenas is the owner of 2 Places at 1 Time. inseparability inconsistency incongruity inflexibility intangibility Because services depend on the people who provide them. Alana operates a wedding preparation service that aids brides-to-be in the (p. C. To maintain a quality image and a standardized ) offering. Level of Difficulty: 3 Hard Topic: Four is of services 9-177 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All rights reserved. (p.157. E. cannot separate themselves from the deliverer of the service. C. D. 217 ) A. A difference between services and products related to problems of consistency is inseparability. B. In most cases. and ) took care of their requests. the experience was much worse. C. see little variation from one service provider in an industry to another. E. This scenario illustrates the ___________ of services. D. Level of Difficulty: 2 Medium Topic: Four is of services 9-178 Copyright © 2016 McGraw-Hill Education. cannot separate the service itself from the deliverer of the service. Inseparability in services means consumers (p. Level of Difficulty: 3 Hard Topic: Four is of services 158. impressionability intangibility inseparability uniqueness of the service inconsistency Because services depend on the people who provide them. A. This often results in inconsistency like the varied service Jason experienced. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. their quality varies with each person's capabilities and day-to-day job performance. the server filled their water glasses. the consumer cannot and does not separate the service from the deliverer of the service or the setting within which the service occurs. checked on their table. cannot evaluate a service until it is being or has been used. . B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. are unable to differentiate price from quality. Jason noted that the last time he was at this same restaurant. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 217 At the restaurant. Jason graduated from law school and took his mom to dinner after the ceremony. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. E. inseparability intangibility impressionability incongruity inflexibility The inseparability of services means consumers cannot separate the service from the deliverer of the service. D.159. All rights reserved. C. If you find that the staff who work in your college's career center give you poor (p. so poor staff in one area can taint your impression of the whole college. Mandy often says something derogatory to her friends about the restaurant based on this single experience. she thought (p. inseparability intangibility impressionability incongruity inflexibility The inseparability of services means consumers cannot separate the service from the deliverer of the service. 217 advise or otherwise did not provide sufficient help in finding you employment after ) graduation. Since then. E. . This is an example of which issue associated with services? A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. you may be dissatisfied with your entire college experience. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. B. This is an example of which issue associated with services? A. and so the rude service has soured Mandy on this restaurant. The food tasted good but ) was overshadowed by the employee's demeanor. 217 the employee who helped her was cold and unfriendly. Level of Difficulty: 3 Hard Topic: Four is of services 9-179 Copyright © 2016 McGraw-Hill Education. B. When Mandy last got her drive-thru order at the fast-food restaurant. D. Level of Difficulty: 3 Hard Topic: Four is of services 160. Service inventory costs are related to idle production capacity rather than storage or handling. D. Only service inventory can be reduced through more efficient movement of products. Time is less important to customers of services than customers of products.idle production capacity. 217 ) A. 217 is referred to as ) A. With services. Inventory problems exist with goods because many items are perishable and because there are costs associated with handling inventory. Inventory of services differs from that of products in what way? (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. off-peak pricing. All rights reserved. Level of Difficulty: 1 Easy Topic: Idle production capacity 9-180 Copyright © 2016 McGraw-Hill Education.161. capacity management. idle production capacity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. inventory carrying costs are more subjective and are related to idle production capacity. B. E. The inventory cost of a service is the cost of paying the person used to provide the service along with any needed equipment. A situation that occurs when a service provider is available but there is no demand (p. Level of Difficulty: 2 Medium Topic: Four is of services 162. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. static demand. which is when the service provider is available but there is no demand for the service. There are larger costs associated with the handling of service inventory. the service provider is often unavailable when there is a demand for the service. C. Unlike goods providers. E. B. . excess inventory. Key term definition . D. What does idle production capacity refer to? (p. a situation where the demand for exceeds the availability of service providers and as a result.163. . a situation where a service provider is available but there is no demand for the service D. Idle production capacity refers to (p. Key term definition . All rights reserved. B. when the supply of service providers exceeds the primary demand for the service C. D. 217 ) A. No reproduction or distribution without the prior written consent of McGraw-Hill Education.idle production capacity. Level of Difficulty: 1 Easy Topic: Idle production capacity 164. the ability of a service provider to redirect its efforts so even when there is no primary demand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. no services can be offered B. 217 ) A. E. Level of Difficulty: 1 Easy Topic: Idle production capacity 9-181 Copyright © 2016 McGraw-Hill Education. a situation that occurs when a service provider is available but there is no demand for the service.idle production capacity. the potential profits of one service provider serving multiple clients at the same time Key term definition . C. the minimum number of customers that a service provider can serve and still remain profitable. employees are still able to meet selective demand. the maximum number of customers that a service provider must serve in order to remain profitable. a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand. integrating the service component of the marketing mix with efforts to influence consumer demand E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. 165. The emergency room staff in Houston's largest hospital is pleasantly surprised (p. 217 when a four-day Fourth of July weekend brings in few accident victims for ) treatment. They know from experience that such public holidays usually have high rates of accidents. For the hospital's business office, the lower demand for the emergency room services means A. B. C. D. E. a break in the service continuum. its services are no longer tangible. its services can be separated from the staff. the hospital has idle production capacity. an opportunity for gap analysis. The inventory cost of service is the cost of paying the people used to provide the service along with any needed equipment. With services, inventory-carrying costs are related to idle production capacity, which is when the service provider is available but there is no demand for the service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 3 Hard Topic: Idle production capacity 166. Andrea Arenas is the owner of 2 Places at 1 Time, a concierge company. She and (p. 217 her staff of 60 perform everyday services such as walking the dog, picking up ) cleaning, waiting for the repairman, and going to the post office for people who are too busy to perform these simple acts. She has often been hired by major corporations to perform services for their harried executives, and even other employees. Her staff is overworked and she will soon hire more employees to fill demand. Arenas is not currently experiencing __________; in fact, all of her employees and equipment are fully being used. A. B. C. D. E. off-peak pricing idle production capacity static demand capacity marketing capacity inventory With services, idle production capacity is when the service provider is available but there is no demand for the service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 3 Hard 9-182 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Topic: Idle production capacity 167. Southwest Airlines operates five flights daily between Chicago and Phoenix during (p. 217 the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a ) capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe? A. B. C. D. E. incongruity intangibility inconsistency inseparability idle production capacity With services, inventory carrying costs are related to idle production capacity, which is when the service is available but there is no demand (the empty seats in this example). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 3 Hard Topic: Idle production capacity 168. The type of analysis that compares the differences between consumers' (p. 218 expectations about a service and their experience with it based on dimensions of ) service quality is referred to as A. B. C. D. E. customer relationship management. service encounter differential. gap analysis. a customer contact audit. a service audit. Key term definition - gap analysis. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 1 Easy Topic: Gap analysis 9-183 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 169. In using a gap analysis, the two basic components of a customer's evaluation of a (p. 218 service are ) A. B. C. D. E. expectations and customer contact. expectations and experience. intangibility and inconsistency. experience and credence. inconsistency and inseparability. Consumers evaluate a service by comparing their expectations to the actual experience through gap analysis. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 1 Easy Topic: Gap analysis 170. How a person establishes expectations for a service not yet experienced is (p. 218 influenced by __________, personal needs, past experiences, and promotional ) activities. A. B. C. D. E. the economy consumer income word-of-mouth communications competitive trends how the organization delivers its service Expectations are influenced by word-of-mouth communications, personal needs, past experiences, and promotional activities, while actual experiences are determined by the way an organization actually delivers its service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Gap analysis 9-184 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 171. How a person establishes expectations for a service not yet experienced is (p. 218 influenced by word-of-mouth communications, __________, past experiences, and ) promotional activities. A. B. C. D. E. personal needs the economy consumer income competitive trends how the organization delivers its service Expectations are influenced by word-of-mouth communications, personal needs, past experiences, and promotional activities, while actual experiences are determined by the way an organization actually delivers its service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Gap analysis 172. How a person establishes expectations for a service not yet experienced is (p. 218 influenced by word-of-mouth communications, personal needs, __________, and ) promotional activities. A. B. C. D. E. how the organization delivers its service past experiences competitive trends the economy consumer income Expectations are influenced by word-of-mouth communications, personal needs, past experiences, and promotional activities, while actual experiences are determined by the way an organization actually delivers its service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Gap analysis 9-185 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 173. How a person establishes expectations for a service not yet experienced is (p. 218 influenced by word-of-mouth communications, personal needs, past experiences, ) and __________. A. B. C. D. E. the economy consumer income competitive trends promotional activities how the organization delivers its service Expectations are influenced by word-of-mouth communications, personal needs, past experiences, and promotional activities, while actual experiences are determined by the way an organization actually delivers its service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Gap analysis 174. In a gap analysis, a person can establish expectations for a service he or she has (p. 218 not yet experienced through word-of-mouth communications, personal needs, past ) experiences, and promotional activities. However, the actual experiences are determined by A. the way the organization delivers its service. B. the positive reinforcement from friends, family, and peers, after the service was provided. C. repeat encounters with the same service provider. D. psychological feelings of well-being. E. a formal post-purchase evaluation or questionnaire. Expectations are influenced by word-of-mouth communications, personal needs, past experiences, and promotional activities, while actual experiences are determined by the way an organization actually delivers its service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Gap analysis 9-186 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Is my flight on time? Tangibility .Are the gate. and reliability respect. tangibility. 218 questionnaire when they pay their bill. . C. the plane. and the baggage area clean? Responsiveness . This assessment of consumer expectations ) compared to the actual experience they had is a form of __________.Are the flight attendants willing to answer my questions? AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. or gaps. and responsiveness For airline customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. B. All rights reserved. A. and honesty honesty. diligence. and product knowledge reliability. when customers are asked to compare the delivered quality of the service to their expectations for service quality. Which of the following are key dimensions of service quality that might be used to (p. Level of Difficulty: 2 Medium Topic: Gap analysis 9-187 Copyright © 2016 McGraw-Hill Education. D. C. Level of Difficulty: 3 Hard Topic: Gap analysis 176. service encounter survey customer profile analysis gap analysis customer contact audit service audit One of the primary methods used to evaluate the quality of a service is gap analysis. E.175. Many restaurants now ask consumers to evaluate their experience on a short (p. E. fairness. between expectations and actual experience are identified. intangibility. here are three dimensions of service quality and the kinds of questions airline customers might ask to evaluate them: Reliability . intangibility. No reproduction or distribution without the prior written consent of McGraw-Hill Education. gap analysis. and corrective actions can be taken. and diligence alacrity. Differences. B. D. 218 perform a gap analysis for airline travel? ) A. product form. No reproduction or distribution without the prior written consent of McGraw-Hill Education. product form. the entire product category or industry a set of offerings belong to.177. E. Level of Difficulty: 1 Easy Topic: Product class 178. Text term definition . The term product class refers to (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. D. product mix. 219 ) A. the designation of a product based on whether it is a consumer product or business product. Text term definition . product item. D. product line. configuration) within a product class are referred to (p. . B. E. a variation of a product within a product mix.product class. the NAICS designation of an individual product or brand. the designation of an individual product based upon its form. Level of Difficulty: 1 Easy Topic: Product form 9-188 Copyright © 2016 McGraw-Hill Education. C. All rights reserved. product class. Variations of a product (shape. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. C. B. 219 as the ) A. or price. The Vermont Teddy Bear Company sells handmade Teddy bears designed to be (p. 219 ) A. All rights reserved. product mix.179. Key term definition . D. a specific product that has a unique brand. 219 given as gifts for almost every occasion imaginable. B. size. . D. A product item is a specific product as noted by a unique brand. A product item refers to (p. The Love Bandit Bear is an example of a A. Level of Difficulty: 3 Hard Topic: Product item 9-189 Copyright © 2016 McGraw-Hill Education. product line. product item. or price . No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. the variations within a product class. The Love Bandit Bear is one ) bear it designed for people to give to each other on Valentine's Day. product class.product item. the services offered by an organization. Level of Difficulty: 1 Easy Topic: Product item 180. E. C. C.the Love Bandit Bear is a unique brand within the Vermont Teddy Bear Company's product line. a group of SKUs that are closely related. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. size. product form. the entire product category or industry. E. B. D. D. NAICS stock code. unique stock mark QR code stock keeping unit order quantity code NAICS stock code Text term definition . 219 given as gifts for almost every occasion imaginable. . A __________ is the unique identification number that defines an item for ordering (p. The unique identification number that the Vermont Teddy Bear Company uses to distinguish this Teddy bear from the others in order to track it in the warehouse is called a(n) A. The Vermont Teddy Bear Company sells handmade Teddy bears designed to be (p. stock ID code. Level of Difficulty: 1 Easy Topic: Stock keeping unit 182.181. 219 or inventory purposes. The stock keeping unit is unique identification number that defines an item for ordering or inventory purposes. The Love Bandit Bear is ) designed for people to give to each other on Valentine's Day.stock keeping unit. All rights reserved. stock keeping unit. B. E. B. ) A. E. Level of Difficulty: 3 Hard Topic: Stock keeping unit 9-190 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. QR code. No reproduction or distribution without the prior written consent of McGraw-Hill Education. order quantity code. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. C. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 1 Easy Topic: Product line 184. C. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 219 class of needs. are ) distributed through the same types of outlets. A. or fall within a given price range is referred to as a __________. E.product line. product item product line product mix product class product form Key term definition . are distributed through the same type of outlets. All rights reserved. are sold to the same customer group. or fall within a given price range. product class product mix product category marketing category product line Key term definition . are used together. are used together.product line.183. 219 they satisfy a class of needs. E. B. . Level of Difficulty: 1 Easy Topic: Product line 9-191 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. A group of product or service items that are closely related because they satisfy a (p. are sold to the same customer ) group. A __________ is a group of product or service items that are closely related because (p. C. A. D. D. 185. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. All rights reserved.product line. a product and all its ancillary services (warranties. are made of similar components are used together have one SKU number require high levels of R&D made from the same formulations A product line is a group of product or service items that are closely related because they satisfy a class of needs. financing. __________. or fall within a given price range. are sold to the same customer ) group. are used together. or price. . the variations within a product class. A. Key term definition . B. are distributed through the same type of outlets. a group of product or service items that are closely related because they satisfy a class of needs. etc. the entire product category or industry. D. 219 ) A. 219 because they satisfy a class of needs. E. or fall within a given price range. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. or fall within a given price range. a specific product SKU that has a unique brand. B. Level of Difficulty: 1 Easy Topic: Product line 186. are sold to the same customer group. C. are distributed through the same types of outlets. are sold to the same customer group. C. A product line refers to (p. D. are distributed through the same type of outlets. A product line is a group of product or service items that are closely related (p.). No reproduction or distribution without the prior written consent of McGraw-Hill Education. size. are used together. Level of Difficulty: 2 Medium Topic: Product line 9-192 Copyright © 2016 McGraw-Hill Education. A. All rights reserved. are distributed through the same type of outlets. 219 because they satisfy a class of needs. Level of Difficulty: 2 Medium Topic: Product line 188. __________. E. B. A product line is a group of product or service items that are closely related (p. are made of similar components require high levels of R&D are sold to the same customer group made from the same formulations have one SKU number A product line is a group of product or service items that are closely related because they satisfy a class of needs. No reproduction or distribution without the prior written consent of McGraw-Hill Education. are used together. are ) distributed through the same type of outlets. or fall within a given price range. A product line is a group of product or service items that are closely related (p. are used together. C. 219 because they satisfy a class of needs. are sold to the same customer group. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. or fall within a given price range. C.187. Level of Difficulty: 2 Medium Topic: Product line 9-193 Copyright © 2016 McGraw-Hill Education. A. are used together. D. are used together. E. B. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. D. are distributed through the same type of outlets. __________. or fall within a given price range. are made of similar components made from the same formulations require high levels of R&D have one SKU number are distributed through the same type of outlets A product line is a group of product or service items that are closely related because they satisfy a class of needs. are sold to the same ) customer group. are sold to the same customer group. or fall within a given price range. are used together. are sold to the same ) customer group. or fall within a given price range. A.189. D. All rights reserved. An advantage of broad product lines is increased likelihood of access to large retail chain distribution. E. A product line is a group of product or service items that are closely related (p. Level of Difficulty: 2 Medium Topic: Product line 9-194 Copyright © 2016 McGraw-Hill Education. . and are distributed through the same type of outlets. are sold to the same customer group. are distributed through the same type of outlets. C. firms are more likely to obtain distribution in supermarket chains. Which of the following statements about product lines is most accurate? (p. E. A broad product line reduces R&D costs. 219 ) A. Level of Difficulty: 2 Medium Topic: Product line 190. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. are made of similar components fall within a given price range made from the same formulations are identical except for price require high levels of R&D A product line is a group of product or service items that are closely related because they satisfy a class of needs. Product lines refer to consumer products. With a broader product line. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. 219 because they satisfy a class of needs. C. A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions. No reproduction or distribution without the prior written consent of McGraw-Hill Education. An advantage of a narrow product line is the ability to have a greater gap between price points. are used together. B. which strive to increase efficiencies by dealing with fewer suppliers. product mixes refer to industrial products. B. D. or __________. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Hallmark Mother's. such as the Hallmark cards. All rights reserved. and Grandparent's Day cards E. Scope mouthwash B. are used together. Level of Difficulty: 3 Hard Topic: Product line Crapola Granola Products Photo 9-195 Copyright © 2016 McGraw-Hill Education. or fall within a given price range. Florida D. Zephyrhills natural spring water in 8 oz. Which of the following is an example of a product line? (p. Apple iPad A product line is a group of product or service items that are closely related because they satisfy a class of needs. The other alternatives are product items. The Yellow Pages for Gainesville.191. Father's Day. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. are distributed through the same type of outlets. 219 ) A. are sold to the same customer group. . bottles C. product class. The Vermont Teddy Bear Company sells handmade Teddy bears designed to be (p. 219 given as gifts for almost every occasion imaginable. SKU. D. D. The Crapola Granola products fit this definition. are distributed through the same type of outlets. marketing category. All rights reserved. are sold to the same customer group. E. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. C. For the Vermont Teddy Bear ) Company. 219 following? ) A. Level of Difficulty: 2 Medium Topic: Product line 193. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. B. product line. Level of Difficulty: 3 Hard Topic: Product line 9-196 Copyright © 2016 McGraw-Hill Education. product mix. Teddy bears are an example of a A. gift-giving for special occasions. a product item a product line a product mix a product category a brand line A product line is a group of product or service items that are closely related because they satisfy a class of needs. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service.in this case. The Crapola Granola products photo shown above best describes which of the (p. E. are used together.192. . or fall within a given price range. A product line is a group of products (Teddy bears) that are closely related because they satisfy a class of needs . are used together. E. During a recent shopping trip to Target. A product class refers to the entire product category or industry. Carlie noticed that the store offered many (p. 219 to as a ) A.product mix. that satisfy a class of needs. product SKUs. Level of Difficulty: 3 Hard Topic: Product line 195. marketing mix. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. or are purchased by the same customer group. D. C. product line product item product mix product industry product class A product line is a group of product or service items that are closely related. B. .194. product class. Key term definition . including many different types of trash bags and a large variety of ) food storage containers. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 219 Glad products. target mix. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service. E. Level of Difficulty: 1 Easy Topic: Product mix 9-197 Copyright © 2016 McGraw-Hill Education. B. D. each of these two product groupings is an example of a __________. like the Glad products. All of the different product lines offered by an organization are collectively referred (p. are distributed through similar outlets. A. product mix. C. All rights reserved. For Glad. A product mix is the number of product lines offered by a company. B. 219 such as beauty and grooming (Crest toothpaste and Gillette razors) and household ) care (Downy fabric softener. All rights reserved. . or fall within a given price range. All of the different product lines offered by an organization are referred to collectively as the product mix. B. C. product mix. a specific product SKU that has a unique brand. D. A. are distributed through the same types of outlets. marketing mix. or price. product class. A product mix refers to (p. Procter & Gamble. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 1 Easy Topic: Product mix 197. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. has a large __________ that includes product groupings (p. product lines. Tide detergent). product items. the entire product category or industry. however. are sold to the same customer group. Key term definition . all of the different product lines offered by an organization. D. a group of products that are closely related because they satisfy a class of needs. 219 ) A. C. E. are used together. the variations within a product class.product mix. E. size. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-03 Describe four unique elements of service.196. Level of Difficulty: 2 Medium Topic: Product mix 9-198 Copyright © 2016 McGraw-Hill Education. and Pampers diapers. product items. Level of Difficulty: 3 Hard Topic: Product mix 9-199 Copyright © 2016 McGraw-Hill Education. marketing mix. . in this case all of the product groupings produced by Newman's Own. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. A product mix is the number of product lines offered by an organization. These product lines comprise the company's A. 219 produces popcorn. All rights reserved. and salad dressings under the Newman's ) Own brand name.198. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The company (p. B. salsa. E. product lines. D. B. marketing category. product class. pasta sauces. All of the different product lines offered by an organization are referred to collectively as the product mix. stock keeping units. C. product category. D. E. SKUs. Level of Difficulty: 2 Medium Topic: Product mix 199. Newman's Own is a company that gives all of its profits to charities. product class. 219 ) A. product mix. A company's product mix is equal to the sum of its (p. there is no significant difference other than minor product variations of color. Feature bloat is the proliferation of extra features that overwhelms many consumers with mind-boggling complexity. or fall within a given price range. an exaggeration of a product's performance capabilities. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The relationship between a product line and product mix is (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. C. product mixes refer to business products. D. Feature bloat is (p. A product line is a group of product or service items that are closely related because they satisfy a class of needs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Product mix and product line 201. B. are used together. 219 ) A. the requirement of having consumers learn new behaviors with a continuous innovation. E. D. B. E. 220 ) A. C. size. All rights reserved. the increase in package size when adding more content or making it larger (the mega phenomenon). or form. product mixes refer to consumer products. are sold to the same customer group. the overcharging in price for a minor product enhancement. Level of Difficulty: 1 Easy Topic: Marketing matters: Feature bloat 9-200 Copyright © 2016 McGraw-Hill Education.200. are distributed through the same types of outlets. product lines refer to industrial products. product lines include product mixes. . product mixes include product lines. product lines refer to consumer products. an excessive number of product attributes that overwhelms consumers with unnecessary complexity. A product mix consists of all the product lines offered by the organization. B. feature overkill. product line extension. sensory overload. feature bloat. Level of Difficulty: 2 Medium Topic: Marketing matters: Feature bloat 9-201 Copyright © 2016 McGraw-Hill Education. D. egotistical behavior. that they are rude and egotistical.202. B. According to Robert Stephens of the Geek Squad. Level of Difficulty: 1 Easy Topic: Marketing matters: Feature bloat 203. Feature bloat is the proliferation of extra features that overwhelms many consumers with mind-boggling complexity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. product differentiation. that they are difficult to understand. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. that they take too long to answer the telephone. their inability to communicate in laymen's terms. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. All rights reserved. the biggest complaint about (p. C. D. 220 consumers with mind-boggling complexity is referred to as ) A. The proliferation of extra characteristics in a product that overwhelms many (p. E. The biggest complaint about tech support people is their rude. 220 technical support people is ) A. that they lack product knowledge. E. C. existing offerings. C. the consumers. E.204. the firm's competitors. and the organization. the organization's. All rights reserved. 220 ) A. Newness from an organization's competitors' perspective is not a criterion for classifying an offering as new. B. (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. legal. Level of Difficulty: 2 Medium Topic: Newness 205. Level of Difficulty: 2 Medium Topic: Newness 9-202 Copyright © 2016 McGraw-Hill Education. D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. A product can be classified as new if it __________ from existing products. A product can be classified as new from all of the following perspectives EXCEPT: (p. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. A product can be classified as new from the perspectives of existing products. E. . C. is functionally different is different in color is different in its packaging is different in price requires a different distribution channel If a product is functionally different from existing products. the consumer's. in legal terms. D. 220 ) A. it can be classified as new. the degree of potential product cannibalization. 220 consumption. B. dynamically continuous innovation. the extent of media promotion. 221 consumers is a ) A. An important way of viewing new products is in terms of their effects on (p. Level of Difficulty: 1 Easy Topic: Continuous innovation 9-203 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. continuous innovation. which from the consumer's perspective is by the degree of learning required. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. C. the price. D. which from the perspective of consumers is by ) A. Text term definition . All rights reserved. concurrent innovation. C. discontinuous innovation. See Figure 9-2. Level of Difficulty: 2 Medium Topic: Newness 207. A product that is new in some way but requires no new behaviors to be learned by (p. A key way to define new products is in terms of their effects on consumption. B. E.206. product transformation. the degree of learning involved. E. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved.continuous innovation. the presence of feature bloat. Level of Difficulty: 2 Medium Topic: Continuous innovation 209. Level of Difficulty: 3 Hard Topic: Continuous innovation 9-204 Copyright © 2016 McGraw-Hill Education. The emphasis of a marketing strategy for a continuous innovation would include generating awareness of the product among consumers. using personal selling. E. C. D. using reminder advertising to reeducate consumers. C. D.208. B. B. setting a low price. All rights reserved. At the time of its introduction. See Figure 9-2. 221 ) A. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. 221 example of a continuous innovation? ) A. generating awareness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. the situation with disposable lighters which were used just like other lighters but could be thrown away. E. home security system disposable lighter microwave oven electric toothbrush video camera Continuous innovations require no new learning by consumers. obtaining narrow distribution. The emphasis of a marketing strategy for a continuous innovation concentrates on (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. which of the following products was the best (p. 210. At the time of its introduction. E. Level of Difficulty: 3 Hard Topic: Continuous innovation 9-205 Copyright © 2016 McGraw-Hill Education. Dragon Naturally Speaking voice-recognition software E. which of the following products was the best (p. Atari. the first video game system C. B. Naturalpoint Trakir. continuous innovation dynamically continuous innovation discontinuous innovation insignificant innovation disruptive innovation A continuous innovation requires no new learning by consumers such as this new caffeinated chewing gum." This new gum is most likely which type of ) innovation? A. . 221 example of a continuous innovation? ) A. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology D. Wrigley's new Alert Energy Caffeine Gum "offers a portable solution that lets adults (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. C. 221 control their caffeine intake. Only the shampoo meets this criterion (no need to shampoo or condition one's hair differently). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. D. the first Apple iPhone B. Level of Difficulty: 3 Hard Topic: Continuous innovation 211. which replaces the computer mouse by tracking head movements and then translating those head movements into cursor commands Continuous innovations require no new learning by consumers. 221 ) A. as is the case with adding bleach to a laundry detergent. The first LCD (liquid crystal display) flat-panel HD (high definition) TV is an (p. B. continuous innovation. no new behaviors must be learned.212. Though new technology makes a LCD flat-panel HDTV possible. continuous innovation dynamically continuous innovation discontinuous innovation insignificant innovation disruptive innovation With continuous innovation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. C. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. The addition of Clorox II bleach to Tide laundry detergents is an example of a (p. Consumers require no education about how to turn on and watch TV. E. Level of Difficulty: 3 Hard Topic: Continuous innovation 9-206 Copyright © 2016 McGraw-Hill Education. discontinuous innovation. disruptive innovation. 221 example of which type of innovation? ) A. Level of Difficulty: 3 Hard Topic: Continuous innovation 213. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . dynamically continuous innovation. D. E. Continuous innovations require no new learning by consumers. from the consumer point of view the product is improved but they don't need to learn new behaviors to use the product. D. All rights reserved. C. bundled innovation. advertising to generate awareness. using personal selling. benefits. 221 new learning is a ) A.dynamically continuous innovation. E. setting a low price. Level of Difficulty: 2 Medium Topic: Dynamically continuous innovation 9-207 Copyright © 2016 McGraw-Hill Education. E. obtaining widespread distribution. discontinuous innovation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. D. 221 would include ) A. D. dynamically continuous innovation. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 1 Easy Topic: Dynamically continuous innovation 215.214. A product that disrupts consumers' normal routines but does not require totally (p. continuous innovation. Text term definition . progressive innovation. and proper use of the product to consumers. The emphasis of a marketing strategy for a dynamically continuous innovation would include advertising that stresses points of difference. disruptive innovation. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. C. advertising to explain points of difference and benefits. See Figure 9-4. The emphasis of a marketing strategy for a dynamically continuous innovation (p. All rights reserved. . C. Level of Difficulty: 3 Hard Topic: Dynamically continuous innovation 217. it was an example of which type of innovation? A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. continuous innovation. continuous innovation. Level of Difficulty: 3 Hard Topic: Dynamically continuous innovation 9-208 Copyright © 2016 McGraw-Hill Education. E. A dynamically continuous innovation requires only minor changes in consumer behavior to use the product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. surf the Internet. the situation with the new pasta. There have been pasta sauces on the market for years. 221 smartphone models that use a multitouch interface rather than buttons to make ) calls with Google's Android operating system. B. . evolutionary innovation. All rights reserved. D. The development of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an example of a(n) A. C. disruptive innovation. dynamically continuous innovation. . For LG's smartphones with Google's Android operating system. discontinuous innovation. disruptive innovation. No reproduction or distribution without the prior written consent of McGraw-Hill Education. discontinuous innovation. B. When the multitouch interface was first introduced. These sauces have always (p. LG Electronics Inc. has entered into an agreement with Google to offer selected (p. evolutionary innovation. E.216. 221 required the pasta to be precooked before it is mixed with the sauces and other ) ingredients.a minor change in learned behavior. dynamically continuous innovation. D. Dynamically continuous innovations require only minor changes in behavior. etc. users use a multitouch interface instead of buttons to make calls. LG Electronics recently introduced the Fridge-TV with a 15" television screen (p. disruptive innovation continuous innovation discontinuous innovation dynamically continuous innovation evolutionary innovation Dynamically continuous innovations disrupt the consumer's normal routine (brushing teeth and gums with an electric toothbrush with a timer) but do not require totally new learning. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. B. 221 key innovation is its Quadpacer interval timer that goes off after 30-seconds to ) prompt the user to move on to the next quadrant of the mouth that results in better cleaning and improved gum health. This is an example of which type of innovation? A. D. All rights reserved. Philips Sonicare recently introduced the DiamondClean rechargeable toothbrush. C. C. This is an example of which type of ) innovation? A. A (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved.218. Level of Difficulty: 3 Hard Topic: Dynamically continuous innovation 9-209 Copyright © 2016 McGraw-Hill Education. D. B. Level of Difficulty: 3 Hard Topic: Dynamically continuous innovation 219. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. 221 mounted in the right side refrigerator door. inventive innovation continuous innovation discontinuous innovation dynamically continuous innovation continuous invention Dynamically continuous innovations disrupt the consumer's normal routine (watching TV on the fridge is a new routine) but does not require totally new learning. E. . D. Level of Difficulty: 3 Hard Topic: Dynamically continuous innovation 9-210 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. continuous innovation. continuous invention. A dynamically continuous innovation disrupts consumer's normal routine but does not require totally new learning by consumers. 221 degree of newness for the consumer would make this a ) A. in storing and squeezing an upside-down bottle. C. AACSB: Analytical Thinking Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. spontaneous innovation. B.Heinz EZ Squirt Photo 220. which this would apply to the Heinz ketchup bottle. All rights reserved. When Heinz introduced its new EZ Squirt Ketchup bottle (see the photo above). discontinuous innovation. the (p. dynamically continuous innovation. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. requires consumers to learn entirely new patterns of behavior and product usage. dynamically continuous innovation. Level of Difficulty: 1 Easy Topic: Discontinuous innovation 222. requires no new learning by consumers.discontinuous innovation. initiates obsolescence of a product class. All rights reserved. Level of Difficulty: 1 Easy Topic: Discontinuous innovation 9-211 Copyright © 2016 McGraw-Hill Education. D. B. disrupts consumers' normal routine but does not require totally new learning. Text term definition . continuous innovation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. 221 ) A. discontinuous innovation. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. progressive innovation. A discontinuous innovation is a product that (p. C. . C. is not purchased by innovators and early adopters.221. E. E. A product that requires the learning of entirely new consumption patterns among (p. Text term definition . 221 consumers is referred to as a(n) ) A. evolutionary innovation. D.discontinuous innovation. advertise benefits to consumers that stress points of differentiation. D. E. All rights reserved. Level of Difficulty: 3 Hard Topic: Discontinuous innovation 9-212 Copyright © 2016 McGraw-Hill Education. educate consumers about new consumption patterns through personal selling. 221 example of a discontinuous innovation? ) A. E. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The emphasis of a marketing strategy for a discontinuous innovation would most (p. 221 likely be to ) A. . obtain widespread distribution in multiple channels. generate awareness among consumers.223. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. stress price differentials from competitors' products. Which of the following products at the time of its introduction was the best (p. C. DVD player disposable lighters instant light charcoal liquid laundry detergent automatic dishwashers Automatic dishwashers required consumers to learn a whole new consumption pattern compared with washing dishes by hand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 2 Medium Topic: Discontinuous innovation 224. Figure 9-4 shows that the emphasis of a marketing strategy for a discontinuous innovation would most likely be to educate consumers through product trial and personal selling. B. D. 225. In the early 1900s, your great-great-grandfather probably purchased his first (p. 221 automobile. After years of driving a horse and buggy, he got into his new car and ) drove it into his new garage. The new automobile was an example of a A. B. C. D. E. continuous innovation. dynamically continuous innovation. disruptive improvement. discontinuous innovation. evolutionary innovation. Discontinuous innovations such as the first automobile require consumers to learn entirely new patterns of behavior and product usage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 3 Hard Topic: Discontinuous innovation 226. Napster was the first software that allowed an individual to easily search for and (p. 221 exchange MP3 music files with other individuals (in some cases illegally). When it ) was introduced, Napster would have been an example of a A. B. C. D. E. discontinuous innovation. continuous innovation. dynamically continuous innovation. regulatory innovation. disruptive improvement. Discontinuous innovations such as Napster required consumers to learn entirely new patterns of behavior, some of which were illegal. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 3 Hard Topic: Discontinuous innovation 9-213 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 227. Dragon Naturally Speaking, a speech recognition software program that allows you (p. 221 to use your voice instead of a keyboard to input text into a word processing ) program, is an example of a(n) A. B. C. D. E. continuous innovation. discontinuous innovation. dynamically continuous innovation. disruptive improvement. evolutionary innovation. Discontinuous innovations, such as the Dragon Naturally Speaking speech recognition software program, require consumers to learn entirely new patterns of behavior and product usage. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 3 Hard Topic: Discontinuous innovation Figure 9-4 9-214 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 228. According to Figure 9-4 above, column A represents a(n) (p. 221 ) A. B. C. D. E. spontaneous innovation. continuous innovation. discontinuous innovation. dynamically continuous innovation. evolutionary innovation. Figure 9-4 shows that with a discontinuous innovation, the consumer must learn entirely new consumption patterns to use the product. The marketing strategy is to educate consumers through product trial and personal selling. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 2 Medium Topic: Discontinuous innovation 229. According to Figure 9-4 above, column B represents a(n) (p. 221 ) A. B. C. D. E. continuous innovation. discontinuous innovation. disruptive innovation. dynamically continuous innovation. evolutionary innovation. Figure 9-4 shows that with a dynamically continuous innovation, only minor changes in behavior are required. The marketing strategy is to educate prospective buyers on the product's benefits, advantages, and proper use. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 2 Medium Topic: Dynamically continuous innovation 9-215 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 230. According to Figure 9-4 above, column C represents a (p. 221 ) A. B. C. D. E. continuous innovation. discontinuous innovation. dynamically continuous innovation. spontaneous innovation. simultaneous innovation. Figure 9-4 shows that with a continuous innovation, consumers don't need to learn new behaviors. The marketing strategy is to gain consumer awareness and wide distribution. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 2 Medium Topic: Continuous innovation 231. The Federal Trade Commission (FTC) considers a product new only (p. 221 ) A. for a period of one year after it enters widespread distribution. B. if it is functionally different from a competitor's product. C. until a new and improved version of the same product is produced. D. for a period of six months after it enters regular distribution. E. for a period of seventeen years at which time patent rights are returned to the public domain. The U.S. Federal Trade Commission (FTC) advises that the term new be limited to use with a product up to six months after it enters regular distribution. The difficulty with this suggestion is in the interpretation of the term regular. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 2 Medium Topic: Newness 9-216 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 232. Prego recently introduced a Pasta Bake Sauce, which was made so that it was not (p. 221 necessary to precook the pasta before blending pasta, sauce, meat, and cheese in ) a casserole. Legally, this product would only be considered new A. for the first six months that it was regularly available at a variety of grocery stores. B. until a competitor like Ragu had issued a similar product targeted to the same market. C. as long it retained these exact product characteristics. D. if it was functionally the same as its salsa sauce. E. until its advertising had been seen by every member of its target audience. The U.S. Federal Trade Commission (FTC) advises that the term new be limited to use with a product up to six months after it enters regular distribution. In this case, national distribution could be understood to mean regular distribution. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 3 Hard Topic: Newness 233. From an organization's perspective regarding its new products and innovations, (p. 221 which of the following new-product strategies has the LOWEST level of risk? -222) A. B. C. D. E. a radical invention a brand extension a product line extension a jump in innovation a product refinancing Successful organizations view newness and innovation in their products at three levels. The lowest level, which usually involves the least risk, is a product line extension. This is an incremental improvement of an existing product line the company already sells. At the next level is (1) a significant jump in innovation or technology or (2) a brand extension involving putting an established brand name on a new product in an unfamiliar market. The third and highest level of innovation involves a radical invention, a truly revolutionary new product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. Level of Difficulty: 2 Medium Topic: Newness 9-217 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. a new product from the company's perspective because it is a product line extension. added Mr. The lowest level. not a new-product because it does not represent a different SKU. The third and highest level of innovation involves a radical invention. a high-risk product mix extension because it is new to the market. Clean Magic Eraser Bath Scrubber -222) to the Mr. Level of Difficulty: 2 Medium Topic: Newness 235. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. a discontinuous innovation. At the next level is (1) a significant jump in innovation or technology or (2) a brand extension involving putting an established brand name on a new product in an unfamiliar market. new by the Federal Trade Commission for the usual one-year period.234. From an organization's perspective regarding its new products and innovations. Clean product line. All rights reserved. E. Clean product line. This is an incremental improvement of an existing product line the company already sells.or adds a product item to .the Mr. (p. is a product line extension. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. B. Level of Difficulty: 3 Hard Topic: Product line extension 9-218 Copyright © 2016 McGraw-Hill Education. 221 which of the following new-product strategies has the HIGHEST level of risk? -222) A. The Mr. If Proctor and Gamble (p. it would be seen by P&G as A. the manufacturer of Mr. Clean is an antibacterial cleaning liquid for home use. a truly revolutionary new product. which usually involves the least risk. Clean. D. a radical invention a brand extension a product line extension a jump in innovation a product deletion Successful organizations view newness and innovation in their products at three levels. Clean Magic Eraser Bath Scrubber is a new product from P&G's perspective since it extends . B. D. E. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. 221 (P&G). Mr. which usually involves the least risk. unfamiliar product category seems like a good idea. 221 risk from the company's point of view? -222) A. Using an existing brand name to introduce a product that is new to the company (p. Which of the following new products is the best example of the LOWEST level of (p. such as adding Beef Franks with Cheese to the Ball Park product line. which failed quickly. Cosmopolitan thought so. At the lowest level. 222 into a totally new. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. This is an incremental improvement of an existing product for the company.236. adding Ball Park Beef Franks with Cheese to the Ball Park Franks line B. This is what ) Cosmopolitan. All rights reserved. C. B. Level of Difficulty: 3 Hard Topic: Product line extension 237. moving from production of land-line telephones to smartphones C. A. is a product line extension. . changing the formula from Coca-Cola to New Coke and then back to Coca Cola Classic E. aspirin yogurt disposable underwear soda (soft drink) perfume Using an existing brand name to introduce a new product into an unfamiliar market . No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Brand extension 9-219 Copyright © 2016 McGraw-Hill Education. It puts its brand name on a line of yogurts that were not successful and disappeared within 18 months. did when it introduced its own __________. purveyor of fashion magazines. marketing the first Apple computer D. national brand name.looks deceptively easy for companies with a powerful. E. D. offering online marketing classes rebranded under a new college name Successful organizations are starting to view newness and innovation in their products at three levels. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. 222 those consumers who also like Frito-Lay's salty snacks such as Fritos corn chips. ) Cosmopolitan magazine introduced Cosmopolitan-branded yogurt. thirst-quenching is not a benefit that comes to mind and Frito-Lay Lemonade failed. Using an existing brand name to introduce a product that is new to the company (p. This innovation strategy is known as a A. a brand extension strategy that failed. . C. This innovation strategy is known as a A. A few years ago. 222 into a totally new. radical invention. radical invention product line extension disruptive innovation brand extension product deletion Cosmopolitan magazine discovered its readers couldn't see themselves buying its branded yogurt. brand extension. Frito-Lay's loyal customers couldn't see themselves buying its Frito-Lay Lemonade. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. E. and it failed quickly. C. product deletion. a brand extension strategy that failed.238. D. unfamiliar market seems like a good idea. E. B. Level of Difficulty: 3 Hard Topic: Brand extension 9-220 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Brand extension 239. ) But when people think of the brand name Frito-Lay. disruptive innovation. product line extension. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. B. Several years ago. All rights reserved. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Frito-Lay developed Frito-Lay Lemonade as a thirst-quencher for (p. manufacturing. Harley-Davidson's loyal customers couldn't see themselves buying its perfume. product deletion. E. C. ) Harley-Davidson introduced perfume under the Harley-Davidson brand name .and it failed quickly. product line extension. B. manufacturing. the raw unwritten ideas to produce a single commercially successful new product. 222 ) A. unfamiliar market seems like a good idea. radical invention. E. wants. . A new product or service protocol refers to (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. D. and what the product or service will be and do to satisfy consumers. to whom it will be sold.240. D. a statement that identifies a well-defined target market. brand extension. 222 into a totally new. Using an existing brand name to introduce a product that is new to the company (p. and distribution of a new product.S. and by whom it will be sold. design. a brand extension strategy that failed. This innovation strategy is known as a A. C. Several years ago. and preferences. maintaining compliance with all licensing. Text term definition . promotion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. and distribution standards established by the U. the standardized procedures a firm follows for the inception. disruptive innovation.protocol. All rights reserved. Level of Difficulty: 1 Easy Topic: Protocol 9-221 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. a formalized statement of intent regarding what will be sold. Federal Trade Commission (FTC). Level of Difficulty: 3 Hard Topic: Brand extension 241. specific customers' needs. B. specific customers' (p. which is a statement defining the target market. and (3) what the product or service will be and do to satisfy consumers. before a new product or service is developed. E. formula. Text term definition . specifying customers' ) needs. wants.242. Ideally. protocol. . which is a statement that identifies: (1) a well-defined target market. A. A statement that identifies: a well-defined target market. methodology. D. All rights reserved. and what the product will be and do to satisfy ) consumers is referred to as a new product's or service's A. 222 __________. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. C. and preferences. Level of Difficulty: 2 Medium Topic: Protocol 9-222 Copyright © 2016 McGraw-Hill Education. and preferences. 222 needs. formula contract modus operandi protocol methodology Ideally. wants. E. and defining what the product or service will be and do to satisfy consumers. D. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. a firm should have a precise protocol.protocol. Level of Difficulty: 1 Easy Topic: Protocol 243. B. modus operandi. before a new product or service is developed. a firm should have a precise (p. proposition. (2) specific customers' needs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. B. an analysis of potential competitors' products C. stakeholder approval in the development process. New product or service failures may be reduced or avoided if the company (p. 222 developing them has ) A. A. support from marketer-dominated sources of information. Level of Difficulty: 2 Medium Topic: Protocol 9-223 Copyright © 2016 McGraw-Hill Education. . which is a statement that identifies: (1) a well-defined target market. and preferences. a firm should have a precise protocol. wants.244. Ideally. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. wants. before a new product or service is developed. wants. 222 protocol. a clear plan for product distribution B. and (3) what the product or service will be and do to satisfy consumers. which is a statement that identifies: (1) __________. (2) specific customers' needs. before a new product or service is developed. a firm should have a precise protocol. D. Level of Difficulty: 2 Medium Topic: Protocol 245. All rights reserved. a clear patent approved by the governments within the countries it wants to market. clear financial goals and expectations Ideally. (2) specific customers' needs. (2) specific customers' ) needs. a firm should have a precise (p. and (3) what the product or service will be and do to satisfy consumers. and preferences. and (3) what the product or service will be and do to satisfy consumers. a precise protocol. C. a precise budget of how much can be spent for the marketing program D. a well-defined target market E. E. before a new product or service is developed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. a statement of competitive intent. and preferences. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. Ideally. which is a statement that identifies: (1) a well-defined target market. and preferences. (2) ) specific customers' needs. A. a firm should have a precise (p. before a new product or service is developed. clear financial goals and expectations Ideally. a firm should have a precise protocol. a firm should have a precise protocol. Ideally. clear financial goals and expectations D. 222 protocol. and preferences C. which is a statement that identifies: (1) a well-defined target market. a precise budget of how much can be spent for the marketing program Ideally. specific customers' needs. wants.246. a precise budget of how much can be spent for the marketing program E. what the product or service will be and do to satisfy consumers B. wants. Level of Difficulty: 2 Medium Topic: Protocol 247. a firm should have a precise (p. Ideally. an analysis of potential competitors' products or services D. before a new product or service is developed. and (3) what the product or service will be and do to satisfy consumers. which is a statement that identifies: (1) a well-defined target market. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . (2) specific customers' needs. and preferences. and (3) what the product or service will be and do to satisfy consumers. before a new product or service is developed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. which is a statement that identifies: (1) a well-defined target market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. a clear plan for distribution C. wants. and (3) what the product or service will be and do to satisfy consumers. which is a statement that identifies: (1) a well-defined target market. wants. before a new product or service is developed. (2) ) __________. (2) specific customers' needs. All rights reserved. A. an analysis of potential competitors' products or services E. a clear plan for distribution B. 222 protocol. and preferences. and (3) __________. Level of Difficulty: 2 Medium Topic: Protocol 9-224 Copyright © 2016 McGraw-Hill Education. the benchmark of a successful CPG launch. 222 sales of $50 million . D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. ) A.the benchmark of a successful CPG launch. . Most American families buy the same __________ items over and over again (p. 222 making it difficult to gain buyers for new products. Level of Difficulty: 2 Medium Topic: New products 9-225 Copyright © 2016 McGraw-Hill Education.making it difficult to gain buyers for new products. C.248. C. ) A. All rights reserved. Less than __________ of new consumer packaged goods (CPG) exceed first-year (p. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. D. 3 percent 10 percent 17 percent 28 percent 35 percent Less than 3 percent of new consumer packaged goods (CPG) exceed first-year sales of $50 million . No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: New products 249. 25 50 100 125 150 Most American families buy the same 150 items over and over again . E. B. E. .the growth in the snacks market is declining C. not listening to the voice of the engineer incomplete market and product protocol too much advertising or too aggressive a tone for it failure to anticipate competitors actions insufficient funding for roll-out There are eight main marketing reasons a new product can fail: (1) insignificant point of difference. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. D. A. (7) poor execution of the marketing mix.consumers wouldn't switch from eating snacks from Frito-Lay and others B.General Mills did not offer free samples at grocery stores D. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 9-226 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. (3) not satisfying customers on critical factors. it (p. poor product quality . B. (4) bad timing. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. ) A.250. (2) incomplete market and product protocol before product development starts. ) Unfortunately. When General Mills introduced Fingos.the chips were not the same size E. One of the eight primary marketing-related reasons for new-product failure is (p. (5) no economical access to buyers. (6) poor product quality.the brand name "Fingos" did not get consumers excited According to the textbook. and (8) too little market attractiveness. 222 assumed that its customers would normally snack on them dry like a potato chip. the point of difference of Fingos was not important enough to get consumers to stop eating competing snacks such as popcorn and potato chips. consumers did not switch from munching on popcorn and potato chips. an insignificant point of difference relative to competing snacks . Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 251. a corn chip-sized sweetened cereal flake. poor execution of the marketing mix . too little market attractiveness . C. 222 __________. incomplete market and product protocol . The primary reason for the failure of Fingos was __________. American car manufacturers could blame their failure to a great degree on A. made cars was good. people didn't believe the claim and were frightened by the "cidal" in the brand name. . too little market attractiveness. carmakers sent very few right-hand-drive cars to Japan while (p. coughed. C. incomplete market and product protocol.S. 223 German car makers exported several models with the steering wheel on the right ) to accommodate the way the Japanese drive their cars on the left side of the road. D. or blew their noses into them. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 9-227 Copyright © 2016 McGraw-Hill Education. poor product quality. C. D. B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Even though the quality of the U. poor execution of the marketing mix. E. Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C (p. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 253.S. which were scientifically designed to kill cold and flu germs when -223) users sneezed. All rights reserved.252. A big part of the failure of Kimberly-Clark's Avert Virucidal tissues was its lack of a product protocol that clearly defined how it would satisfy consumer wants and needs.sending a sufficient number of right-hand-drive cars to meet the needs of Japanese drivers. too little market attractiveness. E. poor product quality. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. 222 derivatives. U. incomplete market and product protocol. B. an insignificant point of difference. the failure to export sufficient quantities of cars to Japan proved that American car makers missed the mark on a critical product factor . Unfortunately. Until 1996. an insignificant point of difference. The reason for this product failure was A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. not satisfying customer needs on critical factors. an insignificant point of difference. 223 other competitors had offered their new MP3 players. 223 __________. the primary reason for the Zune's failure was due in large part to A. E. D. All rights reserved. Microsoft introduced its Zune player way too late . B. incomplete market and product protocol. E. Microsoft introduced its Zune player a few years after Apple launched its iPod and (p. not listening to the voice of the engineer no economical access to buyers too much advertising or too aggressive a tone for it failure to anticipate competitors actions insufficient funding for roll-out There are eight main marketing reasons a new product can fail: (1) insignificant point of difference. bad timing. (6) poor product quality. . According to the textbook.well after Apple and other competitors had marketed their new MP3 players. and (8) too little market attractiveness. B. C. ) A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. One of the eight primary marketing-related reasons for new-product failure is (p. (5) no economical access to buyers.254. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 9-228 Copyright © 2016 McGraw-Hill Education. C. Microsoft was unable to crack the market dominated by Apple and its iPod line of MP3 players. not satisfying customer needs on critical factors. Bad timing occurs when a product is introduced too soon. poor product quality. Microsoft eventually killed the product. (4) bad timing. (3) not satisfying customers on critical factors. (7) poor execution of the marketing mix. D. Zune sales were very ) disappointing and Microsoft eventually killed the product. (2) incomplete market and product protocol before product development starts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 255. too late. No reproduction or distribution without the prior written consent of McGraw-Hill Education. or when consumer tastes are shifting dramatically. the product is too innovative B. 223 __________. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. It might have been a great product. poor product quality.256. (2) incomplete market and product protocol before product development starts. a new product must displace an existing product on the supermarket shelves. All rights reserved. Level of Difficulty: 2 Medium 9-229 Copyright © 2016 McGraw-Hill Education. (5) no economical access to buyers. an insignificant point of difference. C. (4) bad timing. With thousands of new consumer packaged goods introduced each year. Thirsty Dog! is a zesty beef-flavored. D. too socially controversial D. poor product quality E. the cost to gain access to retailer shelf space is huge. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. but ) competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. 223 carbonated bottled water for your dog. lightly (p. (6) poor product quality. a competitor with a similar product withdrew from the market C. mineral-loaded. no economical access to buyers. poor execution of the marketing mix. product was marketed as a new product but it did not meet the legal definition of new There are eight main marketing reasons a new product can fail: (1) insignificant point of difference. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. ) A. The makers of this product had A. vitamin-enriched. Because shelf space is judged in terms of sales per square foot. (7) poor execution of the marketing mix. . Thirsty Dog! failed to generate enough sales to meet its sales per square foot requirements. incomplete market and product protocol. One of the eight primary marketing-related reasons for new-product failure is (p. (3) not satisfying customers on critical factors. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 257. and (8) too little market attractiveness. an insignificant point of difference. and meats. bad timing. E. incomplete market and product protocol. poor product quality. The costs to an organization for poor quality can be staggering and include the labor. D. E. (p. Microsoft had to set aside $1. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. C. millions began to (p. This failure was due to A. materials. C. D. All rights reserved.Topic: Marketing reasons for new-product failures 258. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. costing it future sales and reducing its market share lead of the multibillion videogame console market over rivals Sony and Nintendo. not satisfying customer needs on critical factors. poor execution of the marketing mix.not to mention the lost sales. 223 experience the "red ring of death. Level of Difficulty: 3 Hard Topic: Marketing reasons for new-product failures 259. not satisfying customer needs on critical factors. too little market attractiveness. This information should have been a key promotional (advertising) element of the marketing mix. and market share that usually results. and other expenses to fix the problem . an insignificant point of difference. but at its introduction the company forgot to explain this to ) potential consumers. 223 spreads. Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads. profits. poor product quality. B. causing them to pop off their motherboards. After Microsoft launched its Xbox 360 video-game console." The problem: The consoles' microprocessors ) ran too hot. No reproduction or distribution without the prior written consent of McGraw-Hill Education. This cost the company not only money to extend its product warranty. Garlic Cake died because consumers were left wondering just what a Garlic Cake was. This product failure demonstrates A. .1 billion to extend its warranty and fix the affected poor quality consoles for free. 9-230 Copyright © 2016 McGraw-Hill Education. but a huge portion of future sales and market share to competitors Sony and Nintendo. 223 fragrance was designed to rid scary creatures from a kid's bedroom. did not satisfy customer needs on critical factors. it failed because it A. Encountering groupthink in a meeting occurs when someone knows or suspects the new-product concept is a dumb idea. top management wants the new product to go forward regardless of what anyone else thinks. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 261. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. everyone has an opinion but no one is willing to take charge. there is too much competition among marketing managers. C. so no one is willing to share his/her ideas. Although a ) clever idea. B. D. . E. But that person is afraid to speak up for fear of being cast as a negative thinker and not a team player. had an incomplete market and product protocol. E. There was not an attractive market for the product because of its questionable market (a real need?) and its brand name may have scared kids. 224 ) A. OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. B. had bad timing. All rights reserved. suggesting that there may in fact be monsters hiding in their rooms. had too little market attractiveness. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. and then being ostracized from real participation in the group. Level of Difficulty: 2 Medium 9-231 Copyright © 2016 McGraw-Hill Education. had poor product quality.Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 260. Groupthink occurs in a meeting when (p. C. someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it. everyone has the same idea after using the brainstorming idea-generation technique. One of the two ORGANIZATION-related problems of inertia that can cause new(p. B. If you are using a marketing dashboard to discover which cities in Florida are not (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . 224 meeting their sales growth goal for your sunscreen products. D. All rights reserved. The correct choice (annual percentage change by city) allows you to compare actual numbers versus forecasts or company expectations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. 224 product failures is __________. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. C.Topic: Organizational inertia in new-product failure 262. Level of Difficulty: 3 Hard Topic: Using marketing dashboards 9-232 Copyright © 2016 McGraw-Hill Education. C. D. E. every metric possible shelf space for this year and last year by city production costs customer psychographics annual percent sales change by city One of the advantages of a marketing dashboard is the ability to select the metrics based on the firm's objectives. E. Level of Difficulty: 2 Medium Topic: Organizational inertia in new-product failure 263. B. what marketing ) metric should be used to measure sales performance? A. ) A. poor product quality encountering groupthink in task force and committee meetings poor execution of the marketing mix bad timing incomplete market and product protocol The two organization-related problems of inertia that can cause new-product disasters include (1) encountering groupthink in task force and committee meetings and (2) avoiding the NIH problem. Other alternatives are some of the eight marketing-related reasons a new product can fail. Marketing dashboards are useful in measuring actual market performance versus (p. such as sales. You'll want to conduct marketing research to see if the problem starts with an external factor such as changing consumer tastes or an internal factor such as a breakdown in your distribution system. ) the first step would be to conduct market research to determine __________. whether to drop or keep the failing product or market D. and therefore. the marketing metric used to measure it E. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. . Once shortfalls are identified. whether to change the goal. You'll need to start by trying to identify the problem. Level of Difficulty: 2 Medium Topic: Using marketing dashboards UMD9: Marketing Dashboard Map 9-233 Copyright © 2016 McGraw-Hill Education. if the numbers used for evaluation in the marketing dashboard are accurate Marketing is often about grappling with sales shortfalls. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. 224 the goals set in new-product planning. whether the problem is internal or external to the organization C. how to change the promotional strategy B.264. C. AACSB: Analytical Thinking Blooms: Apply Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. Change the marketing metric being used to evaluate the states individually. were $50 million and its 2012 U.S. which of the following would be the best action? A. In the UMD9: Marketing Dashboard Map above.in this case in the northeastern United States. E. In the UMD9: Marketing Dashboard Map above. what is the annual % sales change? A.$30) ÷ $30] × 100 = 67%. D. with green (which looks gray on printed paper) meaning good and ) red (which looks black on printed paper) meaning very poor.265. If an organization's 2013 sales for the entire U. You'll need to start by trying to identify and correct the problems in the largest volume states that are underperforming . You'll want to do marketing research to see if the problem starts with (1) an external factor involving consumer tastes or (2) an internal factor such as a breakdown in your distribution system. Examine your distribution system in the northeastern United States. sales were $30 million. the annual growth rate in each (p. Focus on the shortfalls in Idaho (ID) and Utah (UT). Level of Difficulty: 3 Hard Topic: Using marketing dashboards 266. C. D.S. the annual growth rate in each (p. All rights reserved. B. Level of Difficulty: 3 Hard Topic: Using marketing dashboards 9-234 Copyright © 2016 McGraw-Hill Education. . AACSB: Analytical Thinking Blooms: Apply Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. 40% 67% 100% 125% 133% The annual % of sales change = [($50 . E. B. Conduct additional market research in the southern United States. 224 state is shown. with green (which looks gray on printed paper) meaning good and ) red (which looks black on printed paper) meaning very bad. Revise the relevant goals for both east and west coast. If you were a marketing manager faced with this dashboard. 224 state is shown. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the two stages an organization goes through from idea generation to commercialization. . Level of Difficulty: 1 Easy Topic: New-product process 9-235 Copyright © 2016 McGraw-Hill Education. the seven stages an organization goes through to identify business opportunities and convert them into salable products or services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. All rights reserved. the informal process of brain storming to generate new-product concepts at a marketing staff meeting.new-product process. commercialization process SWOT process business prospect development cycle opportunity stage gate sequence new-product process Key term definition . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. D. 225 ) A. The seven stages an organization goes through to identify business opportunities (p.267. Level of Difficulty: 1 Easy Topic: New-product process 268. C. B. Key term definition . the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The new-product process refers to (p. B. D. ) A. C.new-product process. E. E. a formalized protocol for new-product development that begins at the corporate level and ends at the functional level. 225 and convert them into salable products or services is referred to as the __________. screening and evaluation. production. market testing.269. evaluation. E. and evaluation. idea generation. D. . All rights reserved. four distinct steps: research. seven stages from new product strategy development to commercialization. and commercialization. and distribution. The new-product process an organization goes through to identify business (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 225 opportunities and convert them into salable products or services contains ) A. Level of Difficulty: 2 Medium Topic: New-product process Figure 9-5 9-236 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. three phases: planning. and distribution. development. business analysis. implementation. The seven key steps of the new-product process are: new-product strategy development. production. three main steps: research. B. five key phases ranging from idea generation to creating the first prototype. D. . C. building upon the previous stage's results. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Level of Difficulty: 2 Medium Topic: New-product process 9-237 Copyright © 2016 McGraw-Hill Education. idea generation screening and evaluation screening and analysis new-product strategy development product assessment Stage 1 . See Figure 9-5. Stage 2 is the __________ stage. Figure 9-5 above represents the seven stages of the new-product development (p. E. C.the new-product strategy development stage in the new-product process defines the role for a new product in terms of the firm's overall objectives. B. ) A. 225 process. Figure 9-5 above represents the seven stages of the new-product development (p.270. idea generation screening and evaluation screening and analysis new-product strategy development product assessment Stage 2 . Stage 1 is the __________ stage. See Figure 9-5. 225 process. No reproduction or distribution without the prior written consent of McGraw-Hill Education. ) A. D. Level of Difficulty: 2 Medium Topic: New-product process 271. All rights reserved. B.the idea generation stage in the new-product process develops a pool of concepts as candidates for new products. B. idea generation screening and evaluation screening and analysis new-product strategy development product assessment Stage 3 . AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Figure 9-5 above represents the seven stages of the new-product development (p. idea generation screening and evaluation business analysis new-product strategy development market testing Stage 4 . D. C. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B.the screening and evaluation stage in the new-product process internally and externally evaluates new-product ideas to eliminate those that warrant no further effort. See Figure 9-5. Figure 9-5 above represents the seven stages of the new-product development (p.the business analysis stage in the new-product process specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. ) A. Stage 3 is the __________ stage. See Figure 9-5. ) A. 225 process. 225 process. C. E. Level of Difficulty: 2 Medium Topic: New-product process 273. E. D. Stage 4 is the __________ stage. Level of Difficulty: 2 Medium Topic: New-product process 9-238 Copyright © 2016 McGraw-Hill Education.272. . business analysis screening and evaluation market testing commercialization development Stage 6 . 225 process.the market testing stage in the new-product process involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.274. business analysis screening and evaluation market testing commercialization development Stage 5 . AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. C. Level of Difficulty: 2 Medium Topic: New-product process 9-239 Copyright © 2016 McGraw-Hill Education. ) A. Level of Difficulty: 2 Medium Topic: New-product process 275. ) A. Figure 9-5 above represents the seven stages of the new-product development (p. . D. Stage 5 is the __________ stage. B. E. 225 process. Figure 9-5 above represents the seven stages of the new-product development (p. See Figure 9-5. B. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. See Figure 9-5. Stage 6 is the __________ stage. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E.the development stage in the new-product process turns the idea on paper into manufacturing the product but also performing laboratory and consumer tests to ensure it meets the standards established for it. All rights reserved. Level of Difficulty: 2 Medium Topic: New-product process 277. the project doesn't proceed to the next stage and product development is killed. Stage 7 is the __________ stage. 225 process. E. ) A. D. This is why many firms have a __________ to ensure that problems are corrected before proceeding to the next stage. business analysis screening and evaluation market testing commercialization development Stage 7 . sometimes they fail to critically evaluate the ) progress along the way. See Figure 9-5. One reason new products fail is that although most major corporations use a (p. C. Level of Difficulty: 2 Medium Topic: New-product process 9-240 Copyright © 2016 McGraw-Hill Education. written protocol Stage-Gate process cross-functional team prototype test test market Today many firms use a formal Stage-Gate process to evaluate whether the results at each stage of the new-product development process are successful enough to warrant proceeding to the next stage. C. If problems in a stage can't be corrected. E. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. 225 formal decision making process. Figure 9-5 above represents the seven stages of the new-product development (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. A.the commercialization stage in the new-product process launches a new product in full-scale production and sales. All rights reserved. D. .276. a formalized protocol for new product development determined by director of marketing. Level of Difficulty: 1 Easy Topic: New-product process 279. the stage of the new-product process that turns the idea on paper into a prototype.278. the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. 225 terms of the firm's overall objectives is referred to as __________. All rights reserved. which results in a demonstrable. B. C. the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing. Key term definition . 225 ) A. the stage of the new-product process where specific product features and benefits are selected prior creating a new-product prototype. . ) A. D. D. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. distinctive competency determination new-product strategy development strategic marketing process strategic invention process product protocol definition Key term definition . E. producible product corresponding to its protocol. E.new-product strategy development. Level of Difficulty: 1 Easy Topic: New-product process 9-241 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education. New-product strategy development refers to (p.new-product strategy development. The stage of the new-product process that defines the role for a new product in (p. C. E. C. idea generation. No reproduction or distribution without the prior written consent of McGraw-Hill Education.280. concept testing. business analysis. The first stage of the new-product process is (p. 226 strategic role the new product might serve in the firm's business portfolio? ) A. Level of Difficulty: 1 Easy Topic: New-product process 281. screening and evaluation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. a SWOT analysis is performed. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Level of Difficulty: 2 Medium Topic: New-product process 9-242 Copyright © 2016 McGraw-Hill Education. B. new-product strategy development. See Figure 9-5. D. The outcome not only defines the vital protocol for each new-product idea but also identifies the strategic role it might serve in the firm's business portfolio. D.new-product strategy development. Key term definition . All rights reserved. 225 ) A. E. idea generation screening and evaluation business analysis development new-product strategy development At the new-product strategy development stage. . Which stage in the new-product process is a SWOT analysis used to identify the (p. B. C. During this stage. Level of Difficulty: 2 Medium Topic: New-product process 9-243 Copyright © 2016 McGraw-Hill Education. 226 and environmental scanning to assess its strengths and weaknesses relative to the ) trends it identifies as opportunities or threats? A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. two important activities take (p. SWOT analysis and environmental scanning. R&D and operations set-up. In which stage in the new-product process would a firm use both a SWOT analysis (p. They are ) A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. firms use both a SWOT analysis and environmental scanning to assess their strengths and weaknesses relative to the trends they identify as opportunities or threats. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. new-product strategy development is the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives. so it uses SWOT analysis and environmental scanning in its assessment. open innovation and business analysis. concept testing and product forecasting. C. All rights reserved. E. 226 place. D. B. E. B. Level of Difficulty: 2 Medium Topic: New-product process 283.282. During the first stage of the new-product process. For companies. D. idea generation screening and evaluation new-product strategy development business analysis development The purpose of the new-product strategy development stage is to define the role for a new product in terms of the firm's overall objectives. . environmental scanning and open innovation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: New-product process 285.idea generation.284. C. 226 a revolutionary new product or technology that completely disrupts its business. marketing opportunity disruptive innovation business threat crowdsourcing concept test Disruptive innovations examples in the text include Wikipedia. a firm's Stage 1 product development activities can be blind-sided by (p. A. ) A. All rights reserved. Level of Difficulty: 1 Easy Topic: New-product process 9-244 Copyright © 2016 McGraw-Hill Education. The stage of the new-product process that develops a pool of concepts to serve as (p. digital photography. E. B. 226 candidates for new products is referred to as __________. D. idea generation product development open innovation assessment screening and evaluation new-product strategy development Key term definition . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. . Occasionally. E. and personal computers. D. B. ) which is sometimes called a __________. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 1 Easy Topic: New-product process 9-245 Copyright © 2016 McGraw-Hill Education.idea generation. 226 ) A. 226 __________ stage of the new-product process. D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. separates ideas into two categories: consumer-oriented and organizationoriented. Idea generation is the stage in the new-product process that (p. open innovation screening and evaluation product development new-product strategy development idea generation Key term definition .idea generation. Key term definition . consists of the techniques used to screen and reject those ideas that have no merit. ) A. Developing a pool of concepts to serve as candidates for new products is the (p. requires the organization to perform a SWOT analysis and an environmental scan. Level of Difficulty: 1 Easy Topic: New-product process 287. E. B. selects a single concept and scrutinizes it for all potential benefits and flaws.286. develops a pool of concepts to serve as candidates for new products. . B. C. D. All rights reserved. Idea generation refers to (p.open innovation. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 1 Easy Topic: New-product process 289. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. D. 226 not generate enough useful new-product ideas. the techniques used to screen and reject those ideas that have no merit. . C.288. the stage of the new-product process that develops a pool of concepts to serve as candidates for new-products. the stage of the new-product process when concepts are converted to prototypes. the stage of the new-product process where possible promotional campaigns and advertising themes are created. Level of Difficulty: 1 Easy Topic: Open innovation 9-246 Copyright © 2016 McGraw-Hill Education. C. E. A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process.idea generation. 226 ) A. innovation alliances open innovation open collaboration piggy-back thinking stakeholder cooperation Text term definition . a practice known as __________. the discussion and decision of which as target market segments will be selected. E. All rights reserved. Key term definition . B. This has caused them to find new ) product ideas by developing strategic relationships with outside individuals and organizations. B. Many forward-looking companies have discovered that their own organization does (p. Open innovation helps organization overcome __________. building upon the previous stage's results. All rights reserved. C. (p. 226 inertias common in new-product failures. one of the organizational (p. open innovation screening and evaluation product development new-product strategy development idea generation Idea generation. involves developing a pool of concepts to serve as candidates for new products. D. C. It helps organizations overcome not-invented-here (NIH) barriers. Level of Difficulty: 2 Medium Topic: Open innovation 9-247 Copyright © 2016 McGraw-Hill Education. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Open innovation may enhance the __________ stage of the new-product process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. 226 ) A.290. ) A. groupthink intelligent failures incomplete protocols NIH barriers bad timing Many forward-looking companies use open innovation. D. E. in which an organization finds and executes creative new-product ideas by developing strategic relationships with outside individuals and organizations. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Level of Difficulty: 2 Medium Topic: Open innovation 291. B. in which an organization finds and executes creative new-product ideas by developing strategic relationships with outside individuals and organizations. . Many forward-looking companies use open innovation. the second stage of the new-product process. B. employees.292. suppliers. . E. competitors. competitors. B. 226 ) A. and inventors. nontraditional firms. Sources of new product ideas include employees. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Business researchers emphasize that firms must actively involve customers and (p. This means that the focus ) should be on what the new product will __________ rather than simply what they want. Level of Difficulty: 2 Medium Topic: New-product process 293. universities. universities. regulators. No reproduction or distribution without the prior written consent of McGraw-Hill Education. customers. All of the following are sources for new product ideas EXCEPT: (p." R&D labs (the firm's and professional R&D labs outside the firm). "crowdsources. This means the focus should be on what the new product will do for them rather than simply what they want. D. A. co-workers. B. look like cost them do for them feel like consist of in terms of new features Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. 227 suppliers in the new-product development process. C. suppliers. smaller. All rights reserved. C. E. D. Level of Difficulty: 2 Medium Topic: New-product process 9-248 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. ) A. All rights reserved.464 ideas for new products and website and marketing improvements. 227 products and website and marketing improvements.294. D. . C. E. 227 peoples' ideas is called __________. brainstorming crowdsourcing group think outsourcing data mining Dell used crowdsourcing to develop an online site to generate 13. Level of Difficulty: 1 Easy Topic: Crowdsourcing 295. C. Generating insights leading to marketing actions based on massive numbers of (p. Level of Difficulty: 2 Medium Topic: Crowdsourcing 9-249 Copyright © 2016 McGraw-Hill Education. Dell used __________ to develop an online site to generate 13.crowdsourcing. B. E. ) A. B.464 ideas for new (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. No reproduction or distribution without the prior written consent of McGraw-Hill Education. of which 402 were implemented. brainstorming groupthink outsourcing crowdsourcing NIH method Text term definition . D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. which involves incorporating human behavior as well as building upon the ideas of others into the innovation-design process. E. ) A. C. uses design thinking to develop new products for other organizations. 10 25 50 100 200 IDEO is a world-class new-product development firm that uses design thinking. As the most prolific and influential design firm in the world. which involves incorporating human behavior as well as building upon the ideas of others into the innovation-design process. IDEO is a world-class new-product development firm that uses design thinking. IDEO has created thousands of products for its clients. 227 products in an hour. 227 ) A. Level of Difficulty: 2 Medium Topic: New-product process 9-250 Copyright © 2016 McGraw-Hill Education. No reproduction or distribution without the prior written consent of McGraw-Hill Education.296. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. creates innovative promotional programs for its clients' new products. IDEO has created thousands of products for its clients. Level of Difficulty: 2 Medium Topic: New-product process 297. B. D. IDEO is a company that (p. is a firm that developed the formal Stage-Gate process to commercialize new products for its clients. rates new products like Consumer Reports. Brainstorming sessions conducted at IDEO can generate 100 new ideas in an hour. D. As the most prolific and influential design firm in the world. All rights reserved. runs patent searches for companies that don't have and internal legal department. . C. Brainstorming sessions at IDEO can generate as many as __________ ideas for (p. E. B. 228 ideas from universities. . All rights reserved. Level of Difficulty: 3 Hard Topic: New-product process 9-251 Copyright © 2016 McGraw-Hill Education. an Omega-3 enriched SKU for the Philadelphia cream cheese line C. brainstorming ideas from the TV production company's employees E. FOX. 228 of the broadcast TV networks to develop a concept for a new reality show. conducting a survey among the 2 million people belonging to the NPD Consumer Panel B. a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos The first-of-its-kind carbonated yogurt Go-Gurt Fizzix was launched by General Mills partnering with Brigham Young University to license the university's patent to put some fizz into the yogurt. to analyze these competitors to discover their shows' strengths and weaknesses.298. observing similar reality programs that are on competing television networks like CBS or MTV C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. etc. In addition to seeking ideas from more well-known sources. scones with coffee-flavored cream frosting B. a carbonated yogurt called Go-Gurt Fizzix D. reading about the stars of reality TV programs in gossip magazines like Us Weekly and TV programs like TMZ Marketers would first look at the set of competitive reality shows that are currently being broadcast on other TV networks like CBS. ABC. Where ) are you most likely to look first for ideas? A. inventors. organizations also get (p. No reproduction or distribution without the prior written consent of McGraw-Hill Education. NBC. and smaller nontraditional firms. A. Imagine you work for a TV production company that has been approached by one (p. contacting contestants from other reality shows like Survivor or The Amazing Race D. For example. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. MTV. Level of Difficulty: 2 Medium Topic: New-product process 299. ) General Mills partnered with Brigham Young University to license its patent for __________. deep fried chicken skins for people who cannot eat pork E. Marriott then budgeted $500 million for a new economy hotel chain . refute the assumption that open innovation can benefit the Marriott Corporation. C.300. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. Level of Difficulty: 2 Medium Topic: New-product process 301. The Marriott Corporation sent a six-person intelligence team to travel and stay at (p. Marketers can analyze the competition to discover strengths and weaknesses in competing products. . E. All rights reserved. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. crowdfunding open sourcing venture capital online banking crowdsourcing Text term definition .Fairfield Inns. The purpose of these ) visits was to A. D. __________ is a way to gather an online community of supporters to ) financially rally around a specific project that is unlikely to get resources from traditional sources.crowdfunding. Because early-stage financing is almost always a problem for those starting a new (p. complete customer satisfaction surveys to purposefully create inaccuracies in the marketing research for competing economy hotels. Level of Difficulty: 1 Easy Topic: Crowdfunding 9-252 Copyright © 2016 McGraw-Hill Education. D. The Marriott Corporation used the intelligence team to assess the competitions' strengths and weaknesses on everything from the soundproof qualities of the rooms to the softness of the towels. B. allow the team to reap the benefits of the new product. B. Fairfield Inns. assess the strengths and weaknesses of economy hotels that could be used in the new-product development process for the launch of a new economy hotel chain. obtain the demographics and media behavior of consumers who stay at these facilities in order to develop a target market profile. 228 economy hotels around the country for a six-month period. 228 business. The stage of the new-product process that internally and externally evaluates new(p. Level of Difficulty: 1 Easy Topic: New-product process 9-253 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Crowdfunding 303.com Crowdfunding is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. IDEO Kickstarter. C.com Warren Buffet's Berkshire Hathaway the Industrial Design Group Unfundale. E.screening and evaluation. E.2 million for startup SmartThings to introduce a product that allows users to monitor their homes by remote control. For example. Kickstarter. D. . development stage-gate idea generation business analysis screening and evaluation Text term definition . such as banks or venture capital firms. B.com raised $1. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. 228 are unlikely to get resources from traditional sources? ) A. A.302. Which of the following firms uses crowdfunding to raise capital for products that (p. 229 product ideas to eliminate those that warrant no further effort is referred to as ) __________. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. D. internal and external evaluations of new-product ideas.screening and evaluation. Text term definition . idea selection and prototype development. that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort. Screening and evaluation refers to the stage of the new-product process (p. Level of Difficulty: 1 Easy Topic: New-product process 9-254 Copyright © 2016 McGraw-Hill Education. at which new product concepts that have been found viable are converted into actual prototypes. E. D. 229 ) A. C. B. Text term definition . patent searches and environmental scanning. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. 229 ) A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. business and cost analyses. . The screening and evaluation stage of the new-product process involves (p.screening and evaluation. at which prospective customers are exposed to new product prototypes for the first time. B. All rights reserved. Level of Difficulty: 1 Easy Topic: New-product process 305. that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E. where consumers evaluate a new product's performance in an actual-use situation.304. D. product selection and budgeting projections. Level of Difficulty: 2 Medium Topic: New-product process 9-255 Copyright © 2016 McGraw-Hill Education. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The __________ stage of the new-product process includes an examination of the (p. . D. such as 3M determining that the firm's micro) replication technology (the 3. development Stage-Gate idea generation business analysis screening and evaluation The third stage of the new product process is screening and evaluation. A. E. 3M was able to use the firm's micro-replication technology to improve the gripping power of batting or work gloves. For example. All rights reserved. keep baseball caps from sliding off the heads of bald men. C. which involves internal and external evaluations of the new product ideas to eliminate those that warrant no further effort. An important aspect of the screening and evaluation stage of the new-product (p. improve the gripping power of batting or work gloves.000 tiny fingers) to A. 3M was able to use the firm's micro-replication technology to improve the gripping power of batting or work gloves. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C.306. The third stage of the new product process is screening and evaluation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. ) 3M was able to use the firm's micro-replication technology (the 3. make Formula One race cars more aerodynamic. B. Level of Difficulty: 2 Medium Topic: New-product process 307. B. hold pictures in a photo album without damaging them.000 tiny gripping fingers) could be used to improve the gripping power of batting or work gloves. D. which involves internal and external evaluations of the new product ideas to eliminate those that warrant no further effort. as a replacement for Velcro's hook-and-loop fasteners. 229 technical feasibility for the product. 229 process is an examination of the technical feasibility for the product. communication. B. D. the integration of the service component of the marketing mix with efforts to influence consumer demand. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. a cluster of benefits that an organization promises customers to satisfy their needs. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. the ability of logistics management to satisfy users in terms of time. 229 Highlighter. Key term definition . . A 3M researcher worked with university students to develop the Post-it→ Flag (p. Level of Difficulty: 3 Hard Topic: New-product process 309. convenience. 229 ) A. This is the stage where the 3M researcher was.customer experience management (CEM). and both before-sale and after-sale service at a specific price. E. dependability. a firm internally evaluates the technical feasibility of the new product concept and whether it meets the objectives established for it during the new-product strategy development stage. the unique combination of benefits received by targeted buyers that include quality. B. At which stage of the new-product process was this product? A. idea generation screening and evaluation business analysis new-product strategy development concept testing In the screening and evaluation stage of the new-product process. Level of Difficulty: 1 Easy Topic: Customer experience management 9-256 Copyright © 2016 McGraw-Hill Education. and convenience. on-time delivery. C. D. His team evaluated the technical feasibility of the proposed design and ) determined whether the idea met the firm's new-product objectives.308. the process of managing the entire customer experience within the company. E. Customer experience management (CEM) is (p. All rights reserved. E. . 229 they are consistently delivered and experienced. D. Level of Difficulty: 2 Medium Topic: Customer experience management 311. No reproduction or distribution without the prior written consent of McGraw-Hill Education.concept tests. market testing. B. Level of Difficulty: 1 Easy Topic: Concepts tests 9-257 Copyright © 2016 McGraw-Hill Education. A. __________ includes considering employee interactions with customers to ensure (p. idea generation. E. C. 229 new-product idea rather than the actual product is referred to as ) A. B. Text term definition . D. clearly differentiated from other service offerings. crowdsourcing. and relevant and valuable to the target market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. new-product strategy development.310. All rights reserved. C. Marketers must consider employees' interactions with customers so that the new services are consistently delivered and experienced. and relevant and valuable to the target market. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Capacity management Customer experience management Derived demand Internal marketing The key service factor Customer experience management (CEM) is the process of managing the entire customer experience within the company. clearly differentiated from other ) offerings. a concept test. An external evaluation with consumers that consists of preliminary testing of a (p. internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. .concept tests. in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan. Level of Difficulty: 2 Medium Topic: Concepts tests 9-258 Copyright © 2016 McGraw-Hill Education. All rights reserved. Concept tests are used in the external approach to Stage 3 of the new-product process . Concept tests are part of which stage in the new-product process? (p. in-house computer simulation of the new product that closely resembles the actual product to forecast sales. Text term definition . D. B. C. development screening and evaluation idea generation new-product strategy development business analysis Concept tests are external evaluations with consumers that consist of preliminary testing of a new-product idea rather than an actual product. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 1 Easy Topic: Concepts tests 313. E. external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. A concept test is an (p. 229 ) A. 229 ) A.screening and evaluation. E. B. D.312. internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product. C. Level of Difficulty: 1 Easy Topic: Business analysis 315. B. E. marketing analysis. Level of Difficulty: 1 Easy Topic: Business analysis 9-259 Copyright © 2016 McGraw-Hill Education. The stage of the new product process that specifies the features of the product (p. D. .business analysis. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Text term definition . 229 ) A. product development. where there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI) that the new product will give back to the firm. where the target market segments that show potential are selected and those that do not are eliminated. B. business analysis. 229 and the marketing strategy needed to bring it to market and make financial ) projections is referred to as A. No reproduction or distribution without the prior written consent of McGraw-Hill Education.314. C. that internally and externally evaluates new-product ideas to eliminate those warranting no further effort. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. where the target markets are selected and resources are allocated to reach them. D. Text term definition . commercialization. idea generation. Business analysis refers to the stage of the new product process (p. that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections. E. All rights reserved.business analysis. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Will the new product require a lot of new machinery to produce? Will it cannibalize sales of existing products or will it increase revenues by reaching new market segments? Can it be patented? AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process.from whether the product can be economically developed and manufactured to the marketing strategy needed to have it succeed in the marketplace. . 229 and cannibalization potential would all take place during which stage of the new) product process? A. 229 economically developed and manufactured to the marketing strategy needed. An assessment of the fit of the proposed new products. The business analysis stage assesses the total business fit of the proposed new product with the company's mission and objectives . screening and evaluation C. new-product strategy development D. development E. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. (p. screening and evaluation C. Level of Difficulty: 2 Medium Topic: Business analysis 9-260 Copyright © 2016 McGraw-Hill Education. business analysis B. economic analysis. These activities are addressed at every stage with the exception of new-product strategy development. These activities are addressed at every stage except new-product strategy development. A general review of possible marketing and product synergies. business analysis B. The business analysis stage requires not only detailed financial projections but also assessments of the marketing and product synergies related to the company's existing operations. from whether it can be (p. development E. new-product strategy development D.316. take ) place during which stage of the new-product process? A. Level of Difficulty: 2 Medium Topic: Business analysis 317. Level of Difficulty: 2 Medium Topic: Business analysis 9-261 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E. Level of Difficulty: 2 Medium Topic: Business analysis 319. 229 projections are a part of which stage of the new-product process? ) A. B. C. Factors such as specifying product features. E.318. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. and financial (p. C. idea generation market testing development commercialization business analysis Business analysis involves specifying the product features and marketing strategy as well as making the necessary financial projections needed to commercialize a product. 229 are a part of which stage of the new-product process? ) A. D. idea generation market testing business analysis development commercialization Business analysis requires not only detailed financial projections but also assessments of the marketing and product synergies related to the company's existing operations. B. Detailed financial projections and assessments of marketing and product synergies (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. . D. marketing strategy. prototype. assessing whether the proposed new product fits with the company's mission and objectives. D. Level of Difficulty: 1 Easy Topic: Prototype 9-262 Copyright © 2016 McGraw-Hill Education.320. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 229 product process EXCEPT: ) A. C. using capacity management to find ways to match the availability of the service offering to when it is needed. Level of Difficulty: 2 Medium Topic: Business analysis 321. Text term definition . Turning the idea on paper into a prototype occurs during the development stage rather than the business analysis stage of the new-product process. 229 ) A. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E. . A full-scale operating model of the product under development is referred to as a (p. assessing the marketing and product synergies related to the company's existing operations. template.prototype. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. blueprint. determining whether the new product can be protected with a patent or copyright. All rights reserved. framework. B. sample. C. D. E. All of the following actions occur during the business analysis stage of the new(p. turning the idea on paper into a prototype. . and sizes to determine which version of the product customers like best. simulated operating model of the product given to consumers to use in fullscale field testing. ) A. capacity management customer experience management derived demand internal marketing the seven I's of services GDP For services. D. C. 230 match the availability of the service to when it is needed. All rights reserved. For services. D. full-scale operating model of the product under development. E. A prototype is a (p. Text term definition . colors. sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release. Level of Difficulty: 2 Medium Topic: Capacity management 9-263 Copyright © 2016 McGraw-Hill Education. E. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization. B. C. For example.322. Level of Difficulty: 1 Easy Topic: Prototype 323. 229 ) A. business analysis involves using capacity management to find ways to match the availability of the service offering to when it is needed. airlines and mobile phone service providers use off-peak pricing to charge different prices during different times of the day or during different days of the week to help match the supply and demand for their services. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process.prototype. which finds ways to (p. digital version of a product produced in multiple shapes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. business analysis must consider __________. All rights reserved. A. Level of Difficulty: 1 Easy Topic: Off-peak pricing 9-264 Copyright © 2016 McGraw-Hill Education. B. build-to-order service delivery systems E. A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 230 __________ to charge different prices during different times of the day or the week ) to help match the supply and demand for their services. service providers use __________ to charge (p. C. rationing Services such as airlines and mobile phone service providers use off-peak pricing to charge different prices for different times of the day or week to help match the supply and demand for their services.opening or closing a store at different times B. sales promotion incentives such as coupons C. E. One tool available for services when dealing with capacity management is to use (p. variable hours of operation . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process.324. 230 different prices for different times of the day or week to help match the supply and ) demand for their services. D. Level of Difficulty: 1 Easy Topic: Off-peak pricing 325. . off-peak pricing dynamic pricing capacity pricing down-time pricing yield management pricing Service providers perform capacity management by using off-peak pricing to vary prices by time of day or day of week to help match the supply and demand for their services. off-peak pricing D. In implementing capacity management. where product characteristics and product benefits are selected. Level of Difficulty: 1 Easy Topic: Development 9-265 Copyright © 2016 McGraw-Hill Education. Development refers to the stage of the new-product process (p. D. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. that turns an idea on paper into a prototype. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. idea generation screening and evaluation business analysis commercialization development Text term definition . The stage of the new-product process that turns an idea on paper into a prototype (p. Level of Difficulty: 1 Easy Topic: Development 327. 230 ) A. ) A.development. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. where the first version of a product enters the marketplace. B. where initial ideas are generated and discussed. 230 is referred to as __________. where cross-functional team members and leaders are selected and initial tasks are assigned. B.326. E. . C.development. Text term definition . All rights reserved. At Mattel. product ideas that survive the business analysis stage (p. E. E.business analysis is followed by Stage 4 development. All rights reserved. This type of consumer or safety test occurs during the ) __________ stage of the new-product process. Level of Difficulty: 2 Medium Topic: Development 329. The firm not only manufactures a prototype. Note that this is not the market testing stage because the products are not offered for sale. Stage 3 . C. Barbie is child-tested to be sure the doll cannot be broken apart and (p. 230 proceed to the __________ stage. market testing screening and evaluation business analysis development commercialization In the new-product process. A. Level of Difficulty: 3 Hard Topic: Development 9-266 Copyright © 2016 McGraw-Hill Education. In the new-product process. D. 230 accidentally choke a child. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. ) A. the idea on paper is turned into an actual prototype. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. B. new-product strategy development development business analysis screening and evaluation market testing At the development stage. C. D. . it also performs laboratory and consumer safety tests to ensure the product meets the standards set. B.328. New-product strategy development calls for INGenius Co. Level of Difficulty: 3 Hard Topic: Development 9-267 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 3 Hard Topic: Development 331. Which is the most likely stage of the new-product ) process in which manufacturing issues regarding the new product become an especially important element? A. E. C. D. producible product that involves manufacturing the new product. A. producible product that involves manufacturing the new product. This results in a demonstrable. to develop a battery (p. C. E.330. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. This results in a demonstrable. All rights reserved. After the new owner purchased a fully equipped yogurt factory. it took a yogurt (p. . 230 master a year and a half to come up with the perfect formulation for Chobani ) Greek Yogurt. market testing idea generation screening and evaluation development business analysis Development is the stage of the new-product process that involves turning the idea on paper into a prototype. 230 recycler for the business market. development market testing idea generation screening and evaluation business analysis Development is the stage of the new-product process that involves turning the idea on paper into a prototype. the situation at Chobani. The most likely stage of the new-product process during which this time was spent is __________. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Level of Difficulty: 3 Hard Topic: Development 333. you have seen the ads that show a controlled crash (p. which of the following firms is in the development stage (p. Honda Apple Google Ford General Motors By August 2012. E. Google's driverless car had logged 300. According to the textbook. . C. B. C. Level of Difficulty: 1 Easy Topic: Development 9-268 Copyright © 2016 McGraw-Hill Education. Performing laboratory and safety tests to ensure that it meets standards is also important. turning the idea on paper into a prototype. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. D.332. D. All rights reserved. this safety test would occur during the __________ stage. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 230 of a car containing crash test dummies and the resultant vehicular damage.000 miles without an accident. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. B. E. In the ) new-product process. Car manufacturers have done extensive safety tests by crashing their cars into concrete walls. If you watch much television. A. 230 of the new-product process for a driverless car? ) A. development market testing idea generation screening and evaluation business analysis Product ideas that survive the business analysis proceed to actual development. All rights reserved. to improve the interactions between consumers and the service provider.334. C. Which of the following activities are accomplished during the development stage (p. using capacity management models to match service availability with consumers' needs E. Level of Difficulty: 2 Medium Topic: Development 9-269 Copyright © 2016 McGraw-Hill Education. using fast prototyping to improve the initial service design C. Another name for the steps in the service delivery process is __________. ensuring that employees have the commitment and skills to meet customers' expectations and sustain their loyalty D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. or service encounters. 230 ) A. which involves analyzing the entire sequence of steps. . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Level of Difficulty: 2 Medium Topic: Development 335. (p. D. organizations analyze the sequence of service encounters during the development stage of the new-product process. B. service interactions access points path-analysis service encounters wheel of services Improving the delivery of customer service is critical. 230 for services? ) A. E. analyzing the sequence of service encounters For services. developing off-peak pricing strategies B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. . and introduce next-day delivery through FedEx. Key term definition . 230 consumers under realistic purchase conditions to see if they will buy is referred to ) as A. Level of Difficulty: 1 Easy Topic: Market testing 9-270 Copyright © 2016 McGraw-Hill Education. expand its focus from entertainment to movie collectibles and memorabilia. respond to changing customer service needs. development. C. screening and evaluation. compete with Blockbuster's retail store expansion. begin preparations to withdraw from its traditional method of mail delivery. All rights reserved. C. B. The stage of the new-product process that exposes actual products to prospective (p. market testing. B. D.market testing. which takes 2-3 business days. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. D. Level of Difficulty: 2 Medium Topic: Development 337. which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix. avoid head-to-head competition with satellite television providers. 230 ) A. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E. Netflix has changed its business model in order to (p. business analysis. Since its launch.336. Netflix founder and chief executive Reed Hastings's business model is changing continuously to respond to changing customer needs and new technology in order to maximize customer service. commercialization. E. Level of Difficulty: 1 Easy Topic: Market testing 339. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All rights reserved. E. . C. A concept test is an external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product and occurs during the screening and evaluation stage of the new-product process. Level of Difficulty: 2 Medium Topic: Market testing 9-271 Copyright © 2016 McGraw-Hill Education.338. conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best. D. independently run comparison tests with similar products currently in the marketplace to determine which one performs best. Market testing refers to (p. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. 230 ) A. making sales and profit projections on prototype products to make go-no-go decisions. or laboratory. and (3) simulated.market testing. exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. D. All of the following are examples of test markets EXCEPT: (p. conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. controlled test market concept test market simulated test market laboratory test market standard test market The three main kinds of test markets are (1) standard. C. B. (2) controlled. Key term definition . 230 ) A. B. Level of Difficulty: 3 Hard Topic: Market testing 9-272 Copyright © 2016 McGraw-Hill Education. A friend suggested combining spices ) from India with tea. C. All rights reserved. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. idea generation screening and evaluation business analysis market testing commercialization Market testing is the stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. B. 230 Hunger Games and Star Trek so that changes might be made before they are ) released to the general public during which stage of the new-product process? A. E. Nicole owns a small organic spice company called RaisaSpice and was looking for a (p. the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well. 230 new product to add to her company's line. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. D. which reflects RaisaSpice's current stage. Level of Difficulty: 3 Hard Topic: Market testing 341. In the __________ stage of the new-product process. A. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E. . C.340. market testing business analysis commercialization screening and evaluation concept testing Market testing that involves exposing actual products (the movie) to prospective customers under realistic purchase conditions (in the theater as a sneak preview) to see if they will buy (attend the movie). B. Audiences are allowed to preview actual movies (a sneak preview) such as The (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. the product may subsequently be offered for sale on a widespread basis. . Based on results. D. totally free checking account from Bank One household frequent flyer program from Delta Airlines mid-priced luxury sedan made in America by Mazda new iced coffee beverage from Starbucks slimmer iMac computer Testing a service beyond the concept level is very difficult because the service is intangible and consumers can't see what they are buying. This was done on a limited scale to determine consumer reactions ) before national distribution of the product. 231 market testing? ) A. E. Level of Difficulty: 3 Hard Topic: Market testing 343. Breyer's new product was in the __________ stage of the new-product process. C. commercialization screening and evaluation business analysis development market testing The market testing stage of the new-product process involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. B. Which of the products listed below would be the best candidate for full-scale (p. Breyer's introduced a new line of ice cream flavors for sale in elegant black (p. the situation with Breyer's. the new iced coffee product would lend itself best to full-scale market testing. A. Similarly. test markets for expensive consumer products such as cars and computers are impractical. All rights reserved. Level of Difficulty: 3 Hard Topic: Market testing 9-273 Copyright © 2016 McGraw-Hill Education. E. C. 230 containers. Thus. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D.342. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Test marketing involves offering a product for sale (p. C. B. D. only on certain days of the week and hours of the day.344. B. Test marketing is especially important for new. Level of Difficulty: 1 Easy Topic: Test marketing 345. Testing a service beyond the concept level is very difficult because the service is intangible and consumers can't see what they are buying. . Similarly. E. Standard test markets are the least expensive and fastest type. expensive industrial products. in as broad a geographic region as possible.S. All rights reserved. Which of the following statements about test marketing is most accurate? (p. on a limited basis in a defined area. test markets for expensive consumer products and industrial products are impractical. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process.test marketing. Test marketing is better suited to relatively inexpensive new consumer goods than for new services. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. to random sample of people in the top ten major cities of the U. Test marketing is especially important for new services. Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results. E. to consumers that are representative of the target market. 230 ) A. Text term definition . 231 ) A. D. Level of Difficulty: 2 Medium Topic: Test marketing 9-274 Copyright © 2016 McGraw-Hill Education. C. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. D. A. a technique that replicates a full) scale test market to a limited degree. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. . Its BehaviorScan service uses five demographically representative cities to track sales made to a panel of households. D. B. IRI pays retailers for shelf space. what type of test market is this? A. In some cases the effectiveness of different TV commercials and other direct-to-consumer promotions can be measured. and therefore. such as IRI. often in a mall setting.simulated test markets. C. partial rollouts screening and evaluation virtual reality testing time-to-market measures simulated test markets Text term definition . cost. E. If a firm used IRI's BehaviorScan service to track sales of a new product made to a (p. Because of the time. B. Level of Difficulty: 2 Medium Topic: Controlled test market 347. 231 panel of consumers and assess the effectiveness of advertising and other ) promotion tactics. and confidentiality problems of test markets. laboratory test market concept test market simulated test market controlled test market standard test market A controlled test market involves contracting the entire test program to an outside service.346. E. can guarantee a specified percentage of the test product's potential distribution volume. consumer (p. Level of Difficulty: 1 Easy Topic: Simulated test market 9-275 Copyright © 2016 McGraw-Hill Education. 231 packaged goods firms often turn to __________. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Simulated test markets (STMs) are often run in shopping malls where consumers (p. D. No reproduction or distribution without the prior written consent of McGraw-Hill Education. asked whether they saw the firm's advertising campaign. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. C. Next participants are exposed to product concepts and advertising. ) A. D. E. 231 are ) A. Simulated test markets (STM) is a technique that replicates a full-scale test market but in a limited fashion. All rights reserved. The stage of the new-product process that positions and launches a new product in (p.348. asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product. Level of Difficulty: 1 Easy Topic: Commercialization 9-276 Copyright © 2016 McGraw-Hill Education. E. C. B. asked how much a person is willing to pay for an unfamiliar item. B. Level of Difficulty: 2 Medium Topic: Simulated test market 349. 231 full-scale production and sales is referred to as __________.commercialization. marketing program execution disbursement launch commercialization final distribution Key term definition . questioned about how often they are likely to shop in that particular location. STMs are often run in shopping malls. . where consumers are questioned to identify who uses the product class being tested. questioned to identify product users and their likely consumption and media patterns. during which the firm performs its final evaluations of the new-product. D. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. B. Key term definition .commercialization. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the point where new-product concepts are transformed into prototypes. when advertising campaigns are evaluated using Starch scores to identify brand awareness. Key term definition .350.commercialization. Level of Difficulty: 1 Easy Topic: Commercialization 9-277 Copyright © 2016 McGraw-Hill Education. E. 231 ) A. 231 ) A. Commercialization is the stage in the new-product process (p. the stage of the new-product process that positions and launches a new product in full-scale production and sales. B. All rights reserved. D. C. Commercialization refers to (p. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. . the introduction of an offering to sequential geographic areas of the U. at which the product is positioned and launched in full-scale production and sales. at which the product generates the greatest sales and profits. C.S. when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard. Level of Difficulty: 1 Easy Topic: Commercialization 351. the point at which a new product has diffused throughout the marketplace. exposing actual products to prospective consumers under realistic purchase conditions. The most expensive stage in the new-product process for most products and (p. development. Level of Difficulty: 2 Medium Topic: Commercialization 353. manufacturer makes to have a wholesaler distribute a new product to retailers. D. or launching full-scale production and sales. Text term definition . E. . B. is the most expensive stage for most new products.slotting fee. C. A slotting fee is a payment that a (p. manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf. All rights reserved. screening and evaluation. business analysis. E. manufacturer makes to a wholesaler as compensation for warehousing inventory. C. wholesaler makes to place a new product on a retailer's shelf. Level of Difficulty: 1 Easy Topic: Slotting fee 9-278 Copyright © 2016 McGraw-Hill Education. manufacturer makes to place a new product on a retailer's shelf. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. B. 231 services is ) A. market testing. D. 232 ) A. commercialization. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Commercialization.352. D. slotting fee. business analysis market testing screening and evaluation commercialization idea generation Because shelf space is so limited. product support fee. . bribe. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Such slotting fees significantly increase the cost of which stage of ) the new-product process? A. Level of Difficulty: 3 Hard Topic: Slotting fee 9-279 Copyright © 2016 McGraw-Hill Education. This can run to several million dollars for a single product. This cost is incurred during the commercialization stage of the new-product process. which is a payment a manufacturer makes to place a new item on a retailer's shelf. C. Level of Difficulty: 2 Medium Topic: Slotting fee 355.on their retail shelves. Marketers pay slotting fees to grocers in payment for space . D.or slots . product placement fee. C. This payment is an example of a A. B.000 per month to get its new Vegetable (p.or slots . E. All rights reserved.on their (p. E. Kroger required that Birds Eye pay $15. shelf space allowance. 232 Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of ) all its supermarkets around the country. 232 retail shelves.354. the situation Birds Eye encountered. many grocers require a slotting fee for new products. Marketers pay slotting fees to grocers in payment for space . B. No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. failure fee. Level of Difficulty: 1 Easy Topic: Failure fee 357. . an opportunity cost charge lost sales fee shelf space allowance product displacement fee a failure fee Text term definition . AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf. 232 ) A. 232 retailers require a penalty payment by the manufacturer to compensate them for ) sales that its valuable shelf space was unable to generate. Level of Difficulty: 1 Easy Topic: Failure fee 9-280 Copyright © 2016 McGraw-Hill Education. a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell. D. B.356. some (p. E. A failure fee is a penalty payment (p.failure fee. C. a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers. C. If a new grocery product does not achieve a predetermined sales target. Text term definition . B. D. a retailer makes to a manufacturer for stockouts . a retailer assesses a manufacturer to handle defective new products that customers returned.not keeping point-of-purchase displays continuously stocked with the new product. What is this type of payment called? A. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Text term definition . B.regional rollouts. market-product expansion. Level of Difficulty: 1 Easy Topic: Regional rollouts 359. Over the next year. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. This distribution strategy during commercialization is referred to as a A.S. 232 States. Snapple plans to introduce the beverage into areas in ) the Midwest. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B. limited rollout. C.regional rollouts. Text term definition . phased rollout. limited rollouts. D. market-product expansion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Level of Difficulty: 3 Hard Topic: Regional rollouts 9-281 Copyright © 2016 McGraw-Hill Education. phased rollouts. 232 production levels and marketing activities to build up gradually to minimize the ) risk of new-product failure is referred to as A. regional rollout. phased commercialization. A new beverage by Snapple is currently being sold only in the western United (p. phased commercialization. . Introducing new-products sequentially into geographic areas of the U.S. All rights reserved. and then the eastern U. regional rollouts.358. C. E. E. D. to allow (p. parallel development. 232 and the production process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. cross-functional teams the marketing department research and development engineers product managers top management Text term definition . ) A. E. C. the product and the production process. production and selling methodologies. D. . Parallel development is the simultaneous development of both (p. 232 ) A. B. E. All rights reserved. the product and promotion strategies. is the responsibility of __________. Speed or __________ is often vital in introducing a new product. (p. E. C.time to market. R&D and financial analysis. D. involving the simultaneous development of both the product (p. AACSB: Analytical Thinking 9-282 Copyright © 2016 McGraw-Hill Education. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. B. production and financing tactics. C. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D. Level of Difficulty: 1 Easy Topic: Parallel development 362.360. perpendicular development time to market red tape cutting fast concepting delivery expediting Text term definition . Level of Difficulty: 1 Easy Topic: Time to market 361. Parallel development. 232 ) A.parallel development. B. Text term definition . 233 speed up the development process? ) A. D. D. expedited time to market fast prototyping parallel development controlled test marketing concept testing Text term definition . E. B. C. __________ often speeds up software development by using a "do it. Level of Difficulty: 1 Easy Topic: Fast prototyping 364. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. No reproduction or distribution without the prior written consent of McGraw-Hill Education. All rights reserved.fast prototyping. Time to market Parallel development Test marketing Groupthink Fast prototyping Text term definition . fix it" (p.Accessibility: Keyboard Navigation Blooms: Remember Learning Objective: 09-06 Explain the purpose of each step of the new-product process. E. 233 approach that encourages continuous improvement even after the initial design. ) A. Which of the following methods is commonly used in software development to (p. B. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. Level of Difficulty: 1 Easy Topic: Parallel development 363. . C.fast prototyping. try it. Level of Difficulty: 2 Medium Topic: Fast prototyping 9-283 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Video Case 10: X-1 366. No reproduction or distribution without the prior written consent of McGraw-Hill Education. "No idea is a bad idea. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. sweatproof. (p. E. Employees and coworkers. and weatherproof audio equipment audiophiles who want HD Sirius/XM Satellite radio receivers in their homes consumers who want an inexpensive MP3 player like the old Sony Walkman smartphone users who want a "plug-in" device that lets them listen to AM radio on their smartphone The initial target market for X-1 products consisted of athletes who wanted waterproof. C. E. D. All rights reserved. co-workers Team X-1 employees retail buyers R&D lab IDEO X-1 uses many sources to help generate new ideas.365. D. 236 ) A. B. can make suggestions at a "blue sky" meeting where. 236 ) A. C. Level of Difficulty: 2 Medium Topic: Video Case 10: X-1 9-284 Copyright © 2016 McGraw-Hill Education. sweatproof. X-1 uses all of the following sources to generate new-product ideas EXCEPT: (p. and weatherproof audio equipment. seniors who want easy-to-use TV remotes with large buttons athletes who want waterproof. for example. according to Dirksing. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. . The initial target market for X-1 products consisted of __________. B." The company also uses open innovation to generate new ideas by engaging retail buyers and soliciting ideas from a group of volunteer athletes called Team X-1. X-1 performs all of the following activities during the development stage of its (p. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. No reproduction or distribution without the prior written consent of McGraw-Hill Education. which follows the development stage. The firm uses a 3D printer to check the aesthetics and the dimensions and to see how the product will actually fit on a person. conduct safety tests conduct market tests use 3D drawings conduct functionality tests develop prototypes In the development stage of the process. E. Market tests are conducted during the market testing stage of the new-product process. Once the dimensions are determined. a functional prototype is needed. C. . X-1 actually turns the idea into a prototype. The initial prototypes are used to conduct safety tests and the first functionality tests in a real world environment. Level of Difficulty: 2 Medium Topic: Video Case 10: X-1 Short Answer Questions 9-285 Copyright © 2016 McGraw-Hill Education. D. 236 new-product process EXCEPT: ) A.367. All rights reserved. X-1 checks the outside dimensions on a 3D printed prototype and sends the final 3D drawings to a factory to get a functional prototype made. B. -214) A product is a good. 215 are some products difficult to categorize as one or the other? Give an example of a ) business product. such as a cruise. which usually last over many years (a mattress). service. Consumer products are products purchased by the ultimate consumer. Why (p. depending on their use. Briefly define what is meant by a product. such as a warranty. some products can be considered both consumer and industrial products. good. Give an example of each. such as getting people to eat organically grown vegetables. and an idea. Products like tablet devices and office supplies can be classified as either. A good has tangible attributes that a consumer's five senses can perceive and intangible ones that embody more abstract concepts. Explain the characteristics that would (p. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 2 Medium Topic: Consumer versus business products 9-286 Copyright © 2016 McGraw-Hill Education. . a consumer product. An idea is a thought that leads to a product or action. whereas Cray computers and high-tension steel springs are business products used in producing other products or services. that an organization provides to satisfy consumer needs in exchange for money or something else of value. such as convenience. or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or something else of value. All rights reserved. Goods can also be divided into nondurable goods. Services are intangible activities. 213 define a product. and a product that is difficult to categorize. No reproduction or distribution without the prior written consent of McGraw-Hill Education. or benefits. service. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-01 Recognize the various terms that pertain to products and services. which are consumed in one or a few uses (a bottle of juice). Level of Difficulty: 2 Medium Topic: Product terminology 369. Explain the difference between consumer products and business products.368. and durable goods. However. whereas business products are products that assist directly or indirectly in providing products for resale. Oil of Olay face moisturizer and Bass shoes are clearly consumer products. conveniently. these types of consumer products differ in terms of the: (1) effort the consumer spends on the decision. See Figure 9-2. and with a minimum of shopping effort. Convenience products are items that the consumer purchases frequently. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. shopping. shopping products. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Thus. each individual may classify a particular product in a different way from other consumers.370. Promotion for unsought products would strongly emphasize awareness of the product itself. (p. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. or style. however. Unsought products are those products that the consumer either does not know about or knows about but does not initially want. Level of Difficulty: 2 Medium Topic: Types of consumer products 9-287 Copyright © 2016 McGraw-Hill Education. Specialty products are those items that a consumer makes a special effort to search out and buy. Level of Difficulty: 2 Medium Topic: Types of consumer products 371. Shopping products are the type in which the consumer compares several alternatives on criteria such as price. specialty products. quality. What are the four types of consumer products? How do they differ? (p. and unsought products are the four types of consumer products. availability. specialty. 215 and unsought products. ) Promotion for convenience products would emphasize price. Explain the differences in promotion between convenience. 215 ) Convenience products. (2) attributes used in making the purchase decision. Products generally fall into one or another of these categories. . and (3) frequency of purchase. Promotion for shopping products would emphasize differentiation from competitors. and awareness. Promotion for specialty products would emphasize brand and status. See Figure 9-2. the need many not have been anticipated. Level of Difficulty: 3 Hard Topic: Types of consumer products 9-288 Copyright © 2016 McGraw-Hill Education. People had to look for it and request it by name. it was shown on pay-per-view ) channels and then on premium movie channels. . AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. What type(s) of consumer product is this movie? Explain your answer. (p. but both products satisfy a customer's need at the time it arises. 215 before opening nationwide. It does not necessary mean that the item is rare or hard to come by. Explain what an unsought product is and give some examples. Level of Difficulty: 2 Medium Topic: Types of consumer products 373. All rights reserved. It remained a specialty product when it was made available on pay-per-view television. By the time it reached the video stores and Netflix. 215 ) An unsought product is an item that the consumer either does not know about or knows about but does not initially want. Initially. Student answers may vary.372. The movie also was made widely available in video stores. See Figure 9-2. but all should realize that it does not stay in the same category. It could be something as simple as a thesaurus or as complex as a burial insurance. No reproduction or distribution without the prior written consent of McGraw-Hill Education. In both cases. and DVD/Blue-ray rentals or purchases were relatively inexpensive. See Figure 9-2. The movie The Hunger Games opened originally in a select number of theaters (p. No substitutions were acceptable. via Netflix. it was more of a convenience product because it had wide availability. After its theater run. there were substitutes. it was a specialty product in that people who wanted to see it had to search for it and seeing it first gave the viewer status. and on DVD/Blue-ray. AACSB: Analytical Thinking Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. Level of Difficulty: 3 Hard Topic: Derived demand 375. ) Business support products include installations (buildings and fixed equipment). AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. and accounting or legal services). AACSB: Analytical Thinking Blooms: Apply Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. 216 ) Services can be classified three ways based on whether they are: (1) delivered by people such as accountants and lawyers or by equipment such as vending machines. (p. that is. Level of Difficulty: 2 Medium Topic: Business support products 376. (2) a profit or nonprofit organization. supplies (similar to consumer convenience products. Level of Difficulty: 2 Medium Topic: Classifying services 9-289 Copyright © 2016 McGraw-Hill Education. if consumer demand for Ford automobiles increases. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-02 Identify the ways in which consumer and business products and services can be classified. sales of industrial products frequently result (or are derived) from the sale of consumer products. (p. All rights reserved. 216 example of each category.374. and industrial services (maintenance and repairs. consisting of products like paper clips and brooms). What categories of products are classified as business support products? Give an (p. Define derived demand and provide an example NOT included in the text. 216 ) A major characteristic of business products is that sales of items are often the result of derived demand. and (3) government agencies. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. Describe the three ways services can be classified. accessory equipment (tools and office equipment). For example. this will increase the demand for maintaining and servicing Fords. which are purchased to assist in the production of other products and services. consumers cannot separate the service (stock purchase) from the deliverer of the service (stockbroker) or the setting in which the service occurs. who vary in their job performance. or touched before the purchase decision. In contrast. (3) Inseparability . A major marketing need for services is to make them tangible or show the benefits of using the service. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. How do marketers of (p. before purchasing a traditional product. AACSB: Analytical Thinking Blooms: Apply Learning Objective: 09-03 Describe four unique elements of service. Level of Difficulty: 2 Medium Topic: Four is of services 9-290 Copyright © 2016 McGraw-Hill Education. 217 four elements apply to a stock brokerage service? ) The four unique elements of services are: (1) Intangibility . touched.brokerage services have little inventory carrying costs because the brokers work on commission. Singapore Airlines advertisements show a traveler enjoying comfortable seating. . (2) Inconsistency . Services incorporate the four I's of product marketing. or seen before the purchase decision.a brokerage service is intangible because it cannot be seen. For example.the quality of a brokerage service will vary because different people. a consumer can touch a box of laundry detergent. (4) Inventory .377. provide this service. Level of Difficulty: 3 Hard Topic: Four is of services 378. held. All rights reserved. or sample a new breakfast cereal. No reproduction or distribution without the prior written consent of McGraw-Hill Education. broadband Internet connections. commission costs will be lower. What does it mean when we say services are intangible. and other tangible benefits of a business class fare. kick a tire of an automobile. How would each of these (p. If a broker does not make any sales. 217 services overcome the problems associated with intangibility? ) The intangibility of services means that they cannot be held. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. What is the difference between intangibility and inseparability of services? (p. Inseparability means consumers cannot (and do not) separate the service from the deliverer of the service or the setting in which the service occurs. or seen before the purchase decision. and Blueberry. and Pampers diapers.379. college.such as attentive care in a nursing home or security from life insurance which cannot be easily displayed because they are intangible. Procter & Gamble. or fall within a given price range. Level of Difficulty: 2 Medium Topic: Product line versus product mix 9-291 Copyright © 2016 McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Four is of services 380. or university. Characterize the difference between a product line and a product mix. So. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A product mix is the number of product lines offered by an organization. Services need to help consumers understand benefits of use . Three items are currently in the line: the original Crapola Granola. ) A product line is a group of products that are closely related because they satisfy a class of needs. 219 example of each. Give an (p. are sold to the same customer group. Students may have a number of other different examples. maple syrup. 217 ) Intangibility refers to the fact that services cannot be held. a haircut is difficult to separate from a barber and education is difficult to separate from a teacher. for example. Number Two. and honey. grains. and Red. The example given in the textbook is Crapola Granola. has a large product mix that includes product lines such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener. touched. fruit. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-03 Describe four unique elements of service. Tide detergent). All rights reserved. a line of granola containing nuts. . are distributed through the same type of outlets. are used together. White. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. (2) newness from the consumer's perspective (the effects of a new product on consumption patterns based on the degree of learning consumers require). therefore. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-04 Explain the significance of "newness" in new products and services as it relates to the degree of consumer learning involved. and discontinuous innovations. Level of Difficulty: 2 Medium Topic: New product definitions 382. such as cooking with a microwave oven or operating a personal computer. and (4) newness from the company's perspective (a product line extension. See Figure 9-4. is on generating awareness and obtaining distribution. No reproduction or distribution without the prior written consent of McGraw-Hill Education. dynamically continuous. . Describe the different ways to define a product as new.381. All rights reserved. Marketing activities focus on stressing benefits and product differences to the consumer. 221 Provide the marketing strategy and an example of each. ) With a continuous innovation. (p. Level of Difficulty: 2 Medium Topic: Types of innovations 9-292 Copyright © 2016 McGraw-Hill Education. or a radical invention). There are several ways to view the newness of a product. as with the Reebok Pump athletic shoe. The marketing emphasis. Marketing these new products often requires a significant amount of time educating consumers on how to use the product. no new learning by consumers is required. These include: (1) newness compared with existing products (functionally different from existing offerings). Dynamically continuous innovations disrupt consumers' normal routines but do not require totally new learning. (3) newness in legal terms (the FTC defines new during the first six months after a product enters regular distribution). a brand extension. such as with a new Sony PlayStation game. a significant jump in innovation. (p. A discontinuous innovation requires consumers to establish entirely new consumption patterns. Compare continuous. 220 -221) The term "new" in relation to a new product is difficult to define. No reproduction or distribution without the prior written consent of McGraw-Hill Education.383. What are the eight marketing reasons for new-product failures? (p. (5) no economical access to buyers. All rights reserved. (3) not satisfying customers on critical factors. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. 222 -223) There are eight main marketing reasons a new product can fail: (1) insignificant point of difference. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures Thirsty Dog! Thirsty Cat! Ad 9-293 Copyright © 2016 McGraw-Hill Education. (2) incomplete market and product protocol before product development starts. . and (8) too little market attractiveness. (6) poor product quality. (4) bad timing. (7) poor execution of the marketing mix. Identify and describe each stage in the new-product process in the correct order. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Thirsty Dog! & Thirsty Cat! failed to generate enough sales to meet retailers' requirements. which exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy. The bottled water had to displace existing or similar products (if there were any) on retailers' shelves at pet stores. See Figure 9-5. (p. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. and (7) commercialization. The Thirsty Dog! & Thirsty Cat! ad above shows an example of a product that (p. (4) business analysis. (6) market testing. Thirsty Dog! & Thirsty Cat! failed because it had no economical assess to its customers. which turns the concept into a demonstrable prototype capable of being produced. it has to pay both slotting and failure fees to gain and retain access to these shelves. develops a pool of concepts as candidates for new products generated by customer suggestions. basic R&D activity. competitive offerings. Level of Difficulty: 2 Medium Topic: Marketing reasons for new-product failures 385. which specifies the features of the product and the marketing strategy needed to commercialize it and making necessary financial projections (sales. (3) screening and evaluation. Identify and describe the reason(s) for this unique item's ) marketing-related product failure. and outside visionaries. (5) development. etc. Moreover. 223 failed in the marketplace. . profit. which positions and launches the new-product in full-scale production and sales. Level of Difficulty: 2 Medium Topic: New-product process 9-294 Copyright © 2016 McGraw-Hill Education. grocery stores.384. which involves conducting internal and external evaluations of the new-product concepts (not actual products) to eliminate those that do not warrant further effort and resources.). 225 ) There are seven stages in the new-product process: (1) new-product strategy development. supplier suggestions. All rights reserved. etc. market share. (2) idea generation. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-05 Describe the factors contributing to the success or failure of a new product or service. which defines the role for a new-product in terms of the organization's overall objectives. employee suggestions. Unfortunately. New-product ideas are generated from employees. suppliers. AACSB: Analytical Thinking Blooms: Understand Learning Objective: 09-06 Explain the purpose of each step of the new-product process. . smaller." basic R&D and professional R&D labs. co-workers. competitors' products. This has led to open innovation. What is idea generation in the new-product process? From where do forward (p. Many forward-looking companies have discovered their own organization is not generating enough useful new-products ideas. universities. in which an organization finds and executes creative new-product ideas by developing strategic relationships with outside individuals and organizations. All rights reserved. customers. No reproduction or distribution without the prior written consent of McGraw-Hill Education. nontraditional firms. building upon the previous stage's results. and inventors. 226 thinking marketers get their ideas? ) Idea generation is the second stage of the new-product process that develops a pool of concepts as candidates for new products.386. "crowdsourcing. Level of Difficulty: 2 Medium Topic: Idea generation 9-295 Copyright © 2016 McGraw-Hill Education. grocery scanners to measure sales based on other manipulations of selected marketing mix variables such as price. A firm has three test marketing options: (1) In a standard test market. Level of Difficulty: 3 Hard Topic: Test marketing 388. where consumers are questioned to identify who uses the product class being tested. Firms like IRI's BehaviorScan assist marketers in selecting test market cities that must include cable systems to deliver different ads to different homes and tracking systems like those of to measure sales resulting from different advertising campaigns. companies often turn to simulated (or laboratory) test markets (STM). No reproduction or distribution without the prior written consent of McGraw-Hill Education. AACSB: Analytical Thinking Blooms: Understand 9-296 Copyright © 2016 McGraw-Hill Education. Explain why NOT all products can use test markets. STMs are often run in shopping malls. a technique that replicates a full-scale test market to a limited degree. 231 ) Not all products can use test markets. a firm must choose one or several cities (usually small and demographically representative of the target market) for the test. (3) To save time and money. All rights reserved. Test marketing a service is very difficult because it is intangible and consumers can't see what they are buying. For these products. how do you test market a new building for an art museum? Similarly. test markets for expensive consumer products such as cars or costly industrial products such as jet engines are impractical. AACSB: Analytical Thinking Blooms: Apply Learning Objective: 09-06 Explain the purpose of each step of the new-product process. reactions of potential buyers to mockups or one-of-a-kind prototypes are all that is feasible. participants are given money to decide to buy or not buy the firm's or the competitors' product from a real or simulated store environment. The service pays retailers for shelf space and can therefore guarantee a specified percentage of the test product's potential distribution volume. 230 -231) Test marketing involves offering actual products for sale under realistic purchase conditions on a limited basis to see if consumers will actually buy the product and to try different ways of marketing it. (2) A controlled test market involves contracting the entire test program to an outside service. To select a test market. a company develops a product and then attempts to sell it through normal distribution channels in a number of test-market cities. and important product attributes. and distribution. . reasons for purchase. qualified participants are shown the product or the product concept and are asked about usage. For example. Finally.387. (p. Next. How could a firm use a test market in its new-product process? (p. Then they see the company's ads for the test product along with those of competitors. Learning Objective: 09-06 Explain the purpose of each step of the new-product process. All rights reserved. . No reproduction or distribution without the prior written consent of McGraw-Hill Education. Level of Difficulty: 2 Medium Topic: Test marketing 9-297 Copyright © 2016 McGraw-Hill Education.