Question 1

Which of the following is the best definition of product features?

Accepted Answer

A)  The things a product does that provide benefits to the customer
B)  Mechanical efforts or activities a company provides that add value to a product
C)  Specific design characteristics that allow a product to perform certain tasks
D)  How a product is conceived, planned, and produced with the necessary functions
E)  The physical appearance of a product

Question 2

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

Accepted Answer

A) True 
 B)False

Question 3

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is

Accepted Answer

A)  quality.
B)  consistency.
C)  durability.
D)  functionality.
E)  design.

Question 4

Concept testing gives reliable feedback, but at a relatively high cost.

Accepted Answer

A) True 
 B)False

Question 5

The majority of new-product projects initiated by major companies reach the commercialization stage.

Accepted Answer

A) True 
 B)False

Question 6

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)

Accepted Answer

A)  evaluation study.
B)  formal evaluation.
C)  product inspection.
D)  systematic review.
E)  reassessment examination.

Question 7

Line extensions are less common than other new products because line extensions are more expensive and more risky.

Accepted Answer

A) True 
 B)False

Question 8

Ashley has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n)  _____ modification.

Accepted Answer

A)  subjective
B)  quality
C)  aesthetic
D)  functional
E)  sensory

Question 9

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

Accepted Answer

A) True 
 B)False

Question 10

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

Accepted Answer

A)  pure goods
B)  pure services
C)  customer services
D)  service products
E)  tangible-dominant products

Question 11

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

Accepted Answer

A)  Product development
B)  Evaluation of competitor's efforts
C)  Screening
D)  Idea generation
E)  Business analysis

Question 12

Demand-based pricing most closely relates to the ____ of services.

Accepted Answer

A)  perishability
B)  intangibility
C)  heterogeneity
D)  customer contact aspect
E)  inseparability

Question 13

Select the true statement concerning test marketing.

Accepted Answer

A)  Test marketing is simply an extension of the screening and developing stages.
B)  Test marketing should be conducted after all the marketing mix variables have been finalized.
C)  Test marketing is a limited introduction of the product in areas chosen to represent the intended market.
D)  If the product is successful in the test market, then it is ensured of success upon total introduction.
E)  Large corporations usually launch test-marketing efforts in one small area at a time.

Question 14

How a pair of jeans looks, regardless of the price, is an example of styling.

Accepted Answer

A) True 
 B)False

Question 15

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?

Accepted Answer

A)  Avoiding competition positioning
B)  Head-to-head competition positioning
C)  Positioning based on price
D)  Target market positioning
E)  Positioning based on style

Question 16

Which of the following statements about customer contact in services marketing is false?

Accepted Answer

A)  Service employees are important in creating satisfied customers.
B)  High-contact services are less expensive to deliver because they are typically equipment based.
C)  The main principle of customer contact is that satisfied employees lead to satisfied customers.
D)  Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services.
E)  Employee training programs are an effective way to ensure good customer contact and reduce problems.

Question 17

The fact the services cannot be inventoried and then sold at a later date is called

Accepted Answer

A)  intangibility.
B)  heterogeneity.
C)  inseparability.
D)  perishability.
E)  nonstorability.

Question 18

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called

Accepted Answer

A)  concept testing.
B)  customer response testing.
C)  idea analysis.
D)  test marketing.
E)  screening.

Question 19

Jorge is speaking to his brother about the interaction he had today with one of his clients. Since he is referring to his customer as a client, Jorge is most likely a(n)

Accepted Answer

A)  funeral director.
B)  house painter.
C)  masseur.
D)  dry cleaner.
E)  auto repairman.

Question 20

Sam tells Carl that he likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. He is asking Carl to proceed to which stage of the new-product development process?

Accepted Answer

A)  Idea generation
B)  Business analysis
C)  Commercialization
D)  Test marketing
E)  Screening

Exam 11: Developing and Managing Goods and Services

Sam tells Carl that he likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. He is asking Carl to proceed to which stage of the new-product development process?

Correct AnswerverifiedShow Answer

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

Correct AnswerverifiedShow Answer

Client-based relationships are interactions that result in satisfied customers who repeatedly use a service over time.

Correct AnswerverifiedShow Answer

The majority of new-product projects initiated by major companies reach the commercialization stage.

Correct AnswerverifiedShow Answer

Which of the following is the best definition of product features?

Correct AnswerverifiedShow Answer

How a pair of jeans looks, regardless of the price, is an example of styling.

Correct AnswerverifiedShow Answer

Concept testing gives reliable feedback, but at a relatively high cost.

Correct AnswerverifiedShow Answer

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is

Correct AnswerverifiedShow Answer

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called

Correct AnswerverifiedShow Answer

Ashley has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n) _____ modification.

Correct AnswerverifiedShow Answer

Jorge is speaking to his brother about the interaction he had today with one of his clients. Since he is referring to his customer as a client, Jorge is most likely a(n)

Correct AnswerverifiedShow Answer

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?

Correct AnswerverifiedShow Answer

Select the true statement concerning test marketing.

Correct AnswerverifiedShow Answer

The fact the services cannot be inventoried and then sold at a later date is called

Correct AnswerverifiedShow Answer

Which of the following statements about customer contact in services marketing is false?

Correct AnswerverifiedShow Answer

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?

Correct AnswerverifiedShow Answer

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)

Correct AnswerverifiedShow Answer

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

Correct AnswerverifiedShow Answer

Demand-based pricing most closely relates to the ____ of services.

Correct AnswerverifiedShow Answer

Line extensions are less common than other new products because line extensions are more expensive and more risky.

Correct AnswerverifiedShow Answer

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