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A prototype is a


A) 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) full-scale operating model of the product or service under development.
C) sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release.
D) simulated operating model of the product given to consumers to use in full-scale field testing.
E) digital version of a product produced in multiple shapes, colors, and sizes to determine which version of the product customers like best.

F) A) and E)
G) A) and B)

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In terms of promotion,which of the following product types would stress price,availability,and awareness?


A) shopping
B) convenience
C) specialty
D) unsought
E) supply

F) B) and D)
G) A) and D)

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A person can establish expectations for a service he or she has not yet experienced through word-of-mouth communications,personal needs,past experiences,and promotional activities.However,the actual experience(s) 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.

F) A) and D)
G) C) and D)

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The relationship between a product line and product mix is


A) product mixes include product lines.
B) product lines include product mixes.
C) product lines refer to consumer products; product mixes refer to business products.
D) product mixes refer to consumer products; product lines refer to industrial products.
E) there is no significant difference other than minor product variations of color, size, or form.

F) A) and C)
G) A) and B)

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Convenience products refer to


A) items that consumers will make special efforts to seek out and buy.
B) items for which consumers compare several alternatives on criteria such as price, quality, or style.
C) products consumers purchase frequently and with a minimum of shopping effort.
D) ancillary products used to make other products work more efficiently.
E) low-cost items for which there are numerous substitutes and generic equivalents.

F) A) and D)
G) C) and D)

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The emphasis of a marketing strategy for a discontinuous innovation would most likely be to


A) generate awareness among consumers.
B) advertise benefits to consumers that stress points of differentiation.
C) educate consumers about new consumption patterns through personal selling.
D) obtain widespread distribution in multiple channels.
E) stress price differentials from competitors' products.

F) A) and C)
G) A) and B)

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What is the difference between intangibility and inseparability of services?

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Intangibility refers to the fact that se...

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Before moving out of their apartment,Kelly and Doug decided to have their carpets cleaned by Stanley Steemer,a company specializing in professional carpet cleaning.The carpet cleaners arrived on time,cleaned the carpets,and drove away in their bright yellow van.Only then did the couple see that they did a good job.Kelly and Doug were unable to judge the service before they bought it,which illustrates the __________ of services.


A) inconsistency
B) inseparability
C) inventory costs
D) intangibility
E) interdependence

F) D) and E)
G) A) and C)

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Compare continuous,dynamically continuous,and discontinuous innovations.Provide the marketing strategy and an example of each.

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With a continuous innovation,no new lear...

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Describe the different ways to define a product as new.

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The term new in relation to a new produc...

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Which of the following statements about test marketing is most accurate?


A) Test marketing is especially useful for new services.
B) Expensive consumer products must be test marketed in as many locations as possible.
C) Test marketing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
D) Test marketing is essential for new, expensive industrial products such as jet engines.
E) Standard test markets are the least expensive and fastest type.

F) None of the above
G) B) and E)

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New-product strategy development is


A) the stage of the new-product development process where specific product features and benefits are selected prior creating a new-product prototype.
B) a formalized protocol for new-product development determined by the director of marketing.
C) the stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives.
D) the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.
E) the stage of the new-product development process that turns the idea on paper into a prototype, which results in a demonstrable, producible product corresponding to its protocol.

F) B) and D)
G) B) and C)

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Services are


A) 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.
B) intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
C) philanthropic activities performed without expectations of monetary remuneration.
D) 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.
E) 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.

F) C) and D)
G) A) and C)

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Introducing new products sequentially into geographic areas of the United States to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as


A) limited rollouts.
B) phased rollouts.
C) market-product expansion.
D) regional rollouts.
E) phased commercialization.

F) A) and E)
G) D) and E)

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Southwest Airlines operates a daily flight between Chicago and Phoenix using a Boeing 737,which has a capacity of 120 passengers.During the past month,the flight has averaged 112 passengers.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) incongruity
B) intangibility
C) inconsistency
D) inseparability
E) idle production capacity

F) A) and B)
G) A) and C)

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Mr.Clean is an antibacterial cleaning liquid for home use.If Procter & Gamble (P&G) ,the manufacturer of Mr.Clean,added Mr.Clean Magic Eraser Bath Scrubber to the Mr.Clean product line,it would be seen by P&G as


A) a discontinuous innovation.
B) a new product from the company's perspective because it is a product line extension.
C) a high-risk product mix extension because it is new to the market.
D) new by the Federal Trade Commission for the usual one-year period.
E) not a new product because it does not represent a different SKU.

F) D) and E)
G) C) and D)

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The Thirsty Dog! beverage is 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.

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Thirsty Dog! failed because it had no ec...

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An iMac personal computer from Apple can be classified according to all of the following categories except which?


A) a business product
B) a nondurable good
C) a B2B product
D) a durable good
E) a consumer product

F) B) and C)
G) C) and D)

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Services can be classified according to whether they are


A) national or global.
B) independent contractors.
C) privately owned or publicly owned.
D) delivered by people or equipment.
E) owned by individuals or corporations.

F) B) and C)
G) A) and C)

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Which of the following is the best example of a nondurable good?


A) napkins
B) water heater
C) insurance
D) iPod
E) laser surgery

F) D) and E)
G) C) and E)

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