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Harran University - Yeniehir Campus MGT 201 Marketing Defined, Explained, Applied, 2e (Levens) Chapter 12 Product and Service Strategies 1)A(n)_is defined as a bundle of attributes that delivers benefits to consumers

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Harran University - Yeniehir Campus

MGT 201

Marketing Defined, Explained, Applied, 2e (Levens)

Chapter 12 Product and Service Strategies

1)A(n)_is defined as a bundle of attributes that delivers benefits to consumers.

A)           core benefit

B)            service variability

C)            portfolio D) product

E) augmented product

 

2)                           are a form of product that consist of a collection of activities that, when performed, delivers benefits to a customer.

A)           Line extensions B) Services

C)            Brands

D)           Consumer products

E)            Supplements

 

3)            Level of quality, features, functions, and design are all examples of         .

A)           core benefits

B)            product attributes

C)            levels of a product

D)           product mixes

E)            product utility

4)            In marketing terms, benefits define a product's , or what the product does

for a customer. A) utility

B)            warranty

C)            tangibility

D)           intangibility

E)            variability

 

5)            The        of a service means that it cannot be perceived through the five senses before it is produced and consumed.

A)           utility

B)            warranty

C)            tangibility D) intangibility

E) variability

 

6)            The        of a service means that it cannot be stored for later use and must be consumed upon delivery.

A)           inseparability B) perishability

 

C)            tangibility

D)           intangibility

E)            variability

 

7)            The most basic level upon which a product can be viewed is the                , which addresses the question, "What fundamental benefit is the customer buying?"

A)           actual product

B)            augmented product C) core benefit

D)           product design

E)            utility product

 

8)            The third level of a product is the             around the core benefit and actual product that offers additional consumer services and benefits that enhance ownership of the actual product.

A)           brand equity

B)            augmented product

C)            brand extension

D)           design

E)            image

 

9)                           are products purchased and used by end consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products.

A)           Services

B)            Consumer products

C)            Line extensions

D)           Industrial products

E)            Straight extensions

 

10)          A(n)       is a good or service that consumers purchase frequently with little or no advance planning.

A)           specialty product

B)            unsought product

C)            shopping   product D) convenience product

E) generic product

 

11)                         are less frequently purchased consumer products that customers compare carefully on quality, features, and benefits.

A)           Shopping products

B)            Convenience products

C)            Unsought products

D)           Industrial products

E)            Line extensions

 

 

 

12)                         are infrequently purchased consumer products with unique characteristics for which buyers are willing to make a special purchase effort.

A)           Shopping products

B)            Unsought products C) Specialty products

D)           Industrial products

E)            Line extensions

 

13)                         are consumer products that the consumer either does not know about or knows about but does not normally think about buying.

A)           Specialty products

B)            Line extensions C) Unsought products

D)           Shopping products

E)            Staples

 

14)          Promotion activities for which of the following types of products are most likely to be highly targeted to very specific audiences?

A)           specialty products

B)            context products

C)            consumer products

D)           shopping products

E)            staples

 

15)          Prices of shopping products are typically higher than the prices of           

products but lower than the prices of     products.

A)           unsought; convenience B) convenience; specialty

C)            specialty; unsought

D)           unsought; specialty

E)            specialty; convenience

 

16)          Products and services fall into two broad classifications based on the types of customers who purchase and use them. Which is one of these broad classes?

A)           industrial products

B)            specialty products

C)            supplies and services

D)           materials and parts

E)            convenience products

 

17)                         are those products purchased for further processing or for use in conducting a business.

A)           Unsought products

 

B)            Specialty products

C)            Shopping products D) Industrial products

E) Accessories

 

18)          MRO products are goods that businesses use for              .

A)           management, research, and order-processing

B)            marketing, relationship-building, and operations

C)            maintenance, research, and organization D) maintenance, repair, and operations

E) marketing, research, and organization

 

19)          In the business market, wheat and lumber are examples of        .

A)           components

B)            equipment

C)            processed materials

D)           MRO products E) raw materials

 

20)          In business markets,      are finished products that organizations use to complete their own products.

A)           components

B)            equipment products

C)            processed materials

D)           MRO products

E)            raw materials

 

21)          New product development starts with  . A) idea generation

B)            idea screening

C)            concept development

D)           marketing strategy

E)            test marketing

 

22)          After concept development, a firm would engage in which stage of developing and marketing a new product?

A)           idea screening

B)            marketing strategy

C)            business analysis

D)           product development

E)            test marketing

 

23)          Once the product or service passes the business analysis test, it moves into the

                stage of new product development.

A)           concept development B) concept testing

C)            idea screening

D)           marketing strategy

E)            commercialization

 

24)          Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes concept testing, the next step is               .

A)           commercialization

B)            focus group surveys

C)            concept development

D)           post-testing

E)            marketing strategy

 

25)          Introducing a new product into the market is called         .

A)           test marketing

B)            new product development

C)            experimenting

D)           commercialization

E)            marketing development

 

26)          A focus group would most likely be used in the  stage of new product development.

A)           idea screening

B)            concept development

C)            test marketing

D)           commercialization

E)            business analysis

 

27)          The purpose of the idea generation stage of new product development is to create a    number of ideas. The purpose of succeeding stages is to           that number.

A)           small number; reduce

B)            small number; increase

C)            large number; increase D) large number; reduce

E) limited number; sustain

 

28)          Although test marketing costs can be high, they are often small when compared with    .

A)           business analysis costs

B)            the costs of a major mistake

C)            prototype development costs

 

D)           the costs of idea generation

E)            research and development costs

 

29)          Which type of innovation involves introducing an existing product or service to a new market?

A)           concept change

B)            discontinuous innovation C) context change

D)           cosmetic change

E)            style change

 

30)          Which of the following is the innovation that involves the greatest degree of change?

A)           concept change

B)            cannibalization

C)            context change

D)           cosmetic change

E)            style change

 

31)                         is most frequently defined as the customer's overall reaction to the attributes of a product or service.

A)           Variability

B)            Utility

C)            Diffusion

D)           Style E) Quality

 

32)                         is a method through which customer needs are translated into product and quality requirements.

A)           Discontinuous innovation

B)            Six Sigma C) QFD

D) ISO 9000

E) !SO 9001

 

 

33)                         is a process of using statistical analysis to continually reduce manufacturing defects.

A)           Discontinuous innovation B) Six Sigma

C)            QFD

D)           ISO 9000

E)            ISO 9001

 

34)          While a sensational         may grab consumers' attention through a pleasing

 

visual appearance, it does not necessarily improve a product's usability.

A)           design B) style

C)            utility

D)           benefit

E)            product level

 

35)          Product                contributes to a product's usability as well as to its looks.

A)           style B) design

C)            augmentation

D)           brand

E)            utility

 

36)          A             is the collection of all products and services offered by a company. A) product portfolio

B)            brand line

C)            consumer mix

D)           product line

E)            line extension

 

37)          A             is a group of products that are closely related. A) product line

B)            line extension

C)            product portfolio

D)           line expansion

E)            product mix

 

38)          Product mix        refers to the number of different product lines the company offers.

A)           length

B)            height C) width

D)           perimeter

E)            depth

 

39)          Product mix        refers to the number of versions offered of each product within a line.

A)           length B) depth

C)            height

D)           width

E)            perimeter

 

40)          Increasing sales will most likely occur at which stage of the PLC?

A)           introduction

B)            maturity C) growth

D)           decline

E)            product development

 

41)                         is the product life cycle period when sales fall off and profits drop.

A)           Introduction

B)            Growth

C)            Maturity D) Decline

E) Development

 

42)          All of the following are stages in the PLC EXCEPT               .

A)           introduction

B)            growth

C)            maturity D) adoption

E) decline

 

43)          In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

A)           growth

B)            decline

C)            maturity

D)           product development

E)            adoption

 

44)          Which stage in the PLC normally lasts longest?

A)           growth

B)            decline C) maturity

D)           phase-in

E)            adoption

 

45)          Which of the following best represents the options a company has when a product is declining?

A)           license or harvest the product

B)            harvest or divest the product

C)            divest, harvest, or license the product

D)           license or pioneer the product

E)            pioneer, harvest, or divest the product

 

46)                         refers to the speed with which consumers and businesses adopt a particular product.

A)           A penetration strategy

B)            Positioning

C)            A skimming strategy

D)           Diversification

E)            Diffusion of innovation

 

47)          Unlike innovators, early adopters in general        .

A)           compose the smallest of the innovation adoption categories B) have greater concern for social acceptance

C)            have stronger physiological needs than others in the population

D)           are light media users

E)            are less mainstream

 

48)          Which of the following statements about the innovation adoption categories is ?

A)           More than 50 percent of the population is classified as late majority adopters.

B)            Early adopters avoid risk.

C)            Early majority adopters do not want to be the first or the last to try a new product.

D)           Innovators are a much larger group than laggards.

E)            Late majority adopters are typically very concerned about social acceptance.

 

49)                         are typically bound by tradition and are the last to adopt an innovation.

A)           Innovators

B)            Early majority adopters

C)            Late majority adopters D) Laggards

E) Impulse buyers

 

50)          A product that has entered the decline stage could most likely be cycled back to the growth or maturity stage through    .

A)           promotion or repositioning

B)            concept testing

C)            business analysis

D)           a penetration strategy

E)            a skimming strategy

 

51)          Which of the following is an example of a good?

A)           a massage B) a textbook

C)            a medical examination by a doctor

D)           an idea for a new television show

E)            dry cleaning

 

52)          When the Twin Six Cafe provides gourmet menu options to its customers as well as impeccable service that includes allowing customers to hand-select their own cuts of meat,         .

A)           only an actual product is evident

B)            only an augmented product is evident.

C)            only a core benefit is evident.

D)           both a core benefit and an actual product are evident.

E)            a core benefit, an actual product, and an augmented product are evident.

 

53)          A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood is an example of a               .

A)           convenience product

B)            shopping product C) specialty product

D)           service

E)            core product

 

54)          You have an upset stomach. Your spouse rushes to the nearest store for a bottle of Pepto-Bismol. This product is a(n)   product.

A)           convenience

B)            unsought

C)            specialty

D)           shopping

E)            augmented

 

55)          Mabel Lu is planning to buy a new washing machine. She notices that washing machines are available in a wide range of prices, and she wants to make sure she gets the most for her money. This product is a(n)                product.

A)           convenience

B)            unsought

C)            specialty D) shopping

E) augmented

 

56)          Which of the following statements best explains why idea screening may be the most important step of new product development?

A)           It increases the number of ideas generated.

B)            Some potentially profitable ideas may be ill perceived by the idea screeners.

C)            Some ideas that will become market disasters may be originally viewed favorably by the idea screeners.

D)           It gives research and development team members an opportunity to gather consumer feedback.

E)            It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.

 

 

57)          During which stage of new product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

A)           concept development

B)            marketing strategy C) business analysis

D)           product development

E)            test marketing

 

58)          Which of the following costs is most likely associated with the commercialization stage of new product development?

A)           building or renting a manufacturing facility

B)            paying groups of target customers for product feedback

C)            determining the product's planned price, distribution, and marketing budget

D)           developing a prototype of the product

E)            identifying target markets

 

59)          When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying of its ketchup, the company was introducing               .

A)           cosmetic change

B)            context change

C)            concept change

D)           discontinuous innovation

E)            a new core benefit

 

60)          Which of the following is(are) examples of product mix depth?

A)           hamburger and cheeseburger

B)            hamburger and apple pie

C)            Coke and Diet Coke D) A and C

E) all of the above

 

61)          Having recently celebrated her 50th birthday, Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the        stage of the PLC.

A)           introduction

B)            growth C) maturity

D)           decline

E)            adoption

 

62)          When Kraft focused on cost-cutting with its older and established brands, leaving them to wither without much investment or modification, Kraft decided to           the older products.

 

A)           license

B)            maintain

C)            divest D) harvest

E) review

 

Refer to the scenario below to answer the following questions.

 

Most people laughed when Evelyn Ringler explained her product idea: a solar- powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.

The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacturing of children's race cars and walking dolls.

Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on- the-go consumers who lead busy lives. The price would be above average but would likely drop after Evelyn recouped some of her costs.

After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a test market in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."

 

63)          The financial savings in reduced electricity costs that customers of Ringler's solar- powered vacuum can expect to experience are part of the      .

A)           core benefit

B)            augmented product

C)            product image

D)           context change

E)            idea screening

 

64)          When Ringler set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?

A)           concept testing

B)            marketing strategy

C)            idea screening

D)           business analysis

E)            commercializing

 

65)          Evelyn's vacuum is at the              stage of the product life cycle.

A)           innovation B) introduction

C)            growth

D)           adoption

E)            maturity

 

66)          Services produced by the private sector account for more than half of the U.S. gross domestic product.

Answer:

67)          One of the distinguishing characteristics of a service is utility, which means that the service cannot be separated from its means or manner of production.

Answer:

68)          When all products in a category have similar core benefits, the appeal of one can be enhanced through differentiating it at the actual product level.

Answer:

69)          Specialty products are purchased infrequently. Answer:

70)          Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

Answer:

71)          The stage at which a new product and marketing program are introduced into realistic market settings to evaluate customer acceptance of the product is called marketing strategy.

Answer:

72)          Style makes products more attractive and easier to use. Answer:

73)          Style is a larger concept than design. Design describes the appearance of a product.

Answer:

74)          A product line is also known as a product mix. Answer:

75)          When a company introduces a new product to an existing product line, it is using the strategy of a line extension.

Answer:

76)          Cannibalization is a possible result of adding products to a portfolio. Answer:

77)          PLC stands for product level concept. Answer:

78)          The PLC represents the common pattern of evolution of sales and profits that all products share.

Answer:

79)          A company that wants to establish a dominant market share during the introduction stage of a product's life cycle would be most likely to use a skimming strategy.

Answer:

80)          Innovators tend to be better off financially than other adopter groups. Answer:

81)          Sony offers consumers more than just camcorders; it provides consumers with a

 

complete solution to their picture-taking problems, including additional customer service and product warranties. This offering is called an augmented product.

Answer:

82)          Luxury, all-inclusive vacations cannot be characterized as specialty products. Answer:

83)          Quaker produces a variety of cereals. This variety is called a product line. Answer:

 

84)          Give an example of the most basic level of product, the core benefit.

 

85)          Give examples of the second level of product, the actual product.

 

86)          Give an example of an augmented product.

 

87)          Give three examples of convenience products.

 

88)          Give three examples of specialty products.

 

89)          What do MRO products and consumer convenience products have in common? How do they differ?

 

90)          What can a company expect to learn by setting up a test market?

 

91)          Why might measuring service quality be more difficult than measuring product quality?

 

92)          Explain the difference between a full-line product strategy and a limited-line product strategy.

 

 

93)          Why might ad expenditures remain high in the growth stage of the PLC?

 

94)          Identify the difference between tangible and intangible products and explain why most products can be thought of as falling on a tangible/intangible continuum.

 

95)          Explain the four ways in which a service is distinguished from a good.

 

96)          Describe the three different levels of a product.

 

97)          Briefly describe the steps in the new product development process.

 

98)          Compare product mix width, length, and depth.

 

 

99)          Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the PLC.

 

100)       Identify and briefly describe the five innovation adoption segments in the population.