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Exam 11: Developing and Managing Goods and Services

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Question 151

Multiple Choice

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Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase.

A) idea generation
B) concept testing
C) business analysis
D) screening
E) test marketing

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Question 152

Multiple Choice

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Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification; changes to make the TV's remote easier to use would be classified as a(an) ___.

A) functional; aesthetic modification
B) aesthetic; functional modification
C) aesthetic; quality modification
D) aesthetic; line extension
E) quality modification; functional modification

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Question 153

Multiple Choice

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Ideally, test marketing should follow which stage in the new-product development process?

Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service.

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

What should marketers do to promote the consistency and reliability of their services most effectively?

The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence.

Because of inseparability of the consumption and production of services, customers are often present when a service is produced.

Scenario 11.1 Use the following to answer the questions. Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013. About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. Refer to Scenario 11.1. In 2012, Cheetos was in which phase of new-product development?

Scenario 11.3 Use the following to answer the questions. The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year. The children's playground is accessible for members only, and is a fenced and secured area. During the weekdays, children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has been very popular with the professionals who stop by for a swimming workout before or after work. Many of the YMCA locations are very busy all day, however, the midtown "Y" is busier during the early morning and early evenings. At a recent meeting, Maya Sinclair, its manager, shared her concerns about getting more people into the "Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional members or charge more per member for the annual fee. Refer to Scenario 11.3. The children who take swimming lessons must be in attendance at the pool during the time of their appointment. The need for the child to be in attendance in order to receive the lesson is an example of the ____ feature of a service, while the need for them to be there at the time of their appointment, represents the ____ feature.

When a customer takes part in the production of a service, other customers can affect the outcome of the service.

Scenario 11.2 Use the following to answer the questions. Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear, however this product is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. Refer to Scenario 11.2. The group of people that management has assembled to take on the task of new-product development is best described as

During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _____, which analyzes a product idea to see if it matches an organization's objectives and resources, and _____, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product.

Which of the following is the best example of a high-contact service?

Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of ____ is relative or difficult to describe without a basis of comparison.

Inseparability also means that customers expect a service to be provided in a certain way by a specific person.

You are in the new product development process for a new consumer electronics product. So far, everything has been very positive and you are starting to believe this product might be a blockbuster. As you prepare for the next stage of the process, you are concerned that your competition might try to "jam" your new product by increasing promotional activities for their own products. More importantly, you are concerned that these competitors might try to copy your product as you move into this next stage. Which of the following stages of the new product development process are you about to enter?

Product managers can be responsible for a single product, a product line, or several products.

When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ____ phase of the new-product development process.