Marketing Exam 2 Chapter 10

Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors offered their new MP3 players. Sales were very disappointing. According to the textbook, the primary reason for the Zune’s failure was due in large part to
bad timing
Dell used __________ to develop an online site to generate 13,464 ideas for new products and website and marketing improvements.
crowdsourcing
According to Amber Arnseth, the “Ionator’s” key benefits using Activeion technology are
safety, simplicity, sustainability, savings, and fun.
With respect to price, which of the following type of consumer product would most likely be very expensive?
speciality product
In terms of promotion, which of the following types of products would stress price, availability, and awareness?
convenience
During a recent shopping trip to a local Target store, Pat noticed several things. First, she noticed that the store offered a tremendous variety of products, including toys; pet food; clothing for men, women, and children; health and beauty aids; small household appliances; automotive products; and more. Each product grouping at Target is an example of a(n) __________.
product line
You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall?
shopping product
There have been pasta sauces on the market for years. These sauces have always required the pasta be precooked before it is mixed with the sauces and other ingredients. The development of Prego Pasta Bake Sauce that does not require the use of pre-cooked pasta would be an example of a(n)
dynamically continuous innovation
Kroger required that Birds Eye pay $15,000 to get its new Vegetable Quinoa Pilaf placed in the frozen vegetable freezer section of its supermarkets. This payment is an example of a
slotting fee
Which of the following is the best example of a nondurable good?
laundry detergent
New chewing gum flavors like lemon-lime, crystal mint, and mint mojito helped Wrigley’s add to its sales. These new flavors are which type of innovation?
continuous innovation
At the time of its introduction, which of the following products was the best example of a continuous innovation?
Breathe Right nasal strips, a sticky strip that is worn across the nose at night to help people with a stuffy nose to breathe better
A product that has tangible attributes that a consumer’s five senses can perceive is referred to as a(n)
good
Newman’s Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauce, and salad dressings under the Newman’s Own brand name. These product lines comprise the company’s
product mix
Items consumed in one or a few uses, such as food and fuel, are referred to as ________.
nondurable goods
The two main classifications of business products are
components and support
A slotting fee is a payment a
manufacturer makes to place a new product on a retailer’s shelf.
Among consumer products, advertising and wide distribution are especially important for
nondurable goods
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, and are distributed through the same type of outlets, or __________.
fall within a given price range
The emphasis of a marketing strategy for a discontinuous innovation would most likely be to
educate consumers about entirely new consumption patterns through product trial and personal selling.
Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers’ needs, wants, and preferences; and (3) what the product will be and do to satisfy consumers.
well-defined target market
Support products are items used to assist in producing other goods and services. These include installations, supplies, accessory equipment, and __________.
industrial services
From an organization’s perspective regarding its new products and innovations, which of the following new-product strategies has the highest level of risk?
radical innovation
To maximize profits, service providers use tools such as __________ to charge different prices for different times of the day or week to reflect the variations in demand for their services.
off-peak pricing
A prototype is a(n)
full-scale operating model of the product under development.
In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and small nontraditional firms. For example, inventor Gary Schwartzberg sold his idea for __________ to Kraft Foods, Inc.
tube-shaped bagels filled with Philadelphia cream cheese
According to Figure 10-1 above, column “A” would represent what type of product?
convenience
Which of the following products at the time of its introduction was the best example of a discontinuous innovation?
automatic dishwashers
Marissa, a college student, and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a college student with limited financial resources, Marissa 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 Marissa, an automobile was a __________.
shopping product
Marissa Mayer oversees virtually every new design or feature on Google’s home page, from the color of the Google tool bar to the exact words on a Google page. Her job title is
Vice President—Search Products and User Experience.
Figure 10-3 above represents the seven stages of the new-product development process. Stage 6 is the __________ stage.
market testing
The Marriott Corporation sent a six-person intelligence team to travel and stay at economy hotels around the country for a six-month period. The purpose of these visits was to
obtain ideas by observing consumers in their “natural use environments” to discover their behavioral and emotional reactions to these economy hotels that could be used in the new-product development process that resulted in the launch of Fairfield Inns.
The stage of the new-product process that turns an idea on paper into a prototype is referred to as __________.
development
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 __________.
product
Products that are purchased by the ultimate consumer are referred to as __________.
consumer products
In terms of price, which of the following type of consumer product would most likely be relatively inexpensive?
convenience product
Installations are support products that include items such as
buildings and fixed equipment
Installations, accessory equipment, supplies, and industrial services used to assist in producing other goods and services are referred to as __________.
support goods
__________ often speeds up software development by using a “do it, try it, fix it” approach that encourages continuous improvement even after the initial design.
fast prototyping
According to Figure 10-2 above, column “C” represents a
discontinuous innovation
Marketing dashboards are useful in measuring actual market performance versus the goals set in new-product planning, such as sales. Once shortfalls are identified, the first step market research would take would be to determine _____________.
whether the problem is internal or external to the organization
Raw materials, such as grain or lumber as well as assemblies or parts, are referred to as
components
Parallel development is the simultaneous development of both
product and production process.
If you are using a marketing dashboard to discover which cities in Florida have the weakest sales of sunscreen, what marketing metric should be used to measure sales performance?
unit sales for this year and last year by city
Business products are also referred to as __________ products.
B2B products– business to business
Leona hates carrying a camera with her on vacations. If she only knew of the existence of the ½” thick Logitech pocket digital camera that easily fits in any pocket! For Leona, the Logitech camera is a(n)
unsought
At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart and accidentally choke a child. This type of safety test occurs during the __________ stage of the new-product process.
development
Which of the following is the best example of a convenience product?
toothpaste
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. This is what Bic did when it introduced __________, and it failed quickly.
disposable underwear
Advertising is important for products, such as Butterfinger candy bars and Dasani bottled water, that are purchased frequently and at a relatively low cost. Also, wide distribution in retail outlets is essential. Why?
They are nondurable goods and easily substitutable, so consumers need to be reminded of their existence.
Feature bloat is
an excessive number of product attributes that overwhelms consumers with unnecessary complexity.
Among business products, support products that include tools and office equipment are referred to as
accessory equipment
Which of the following is MOST likely to be an example of an unsought product?
burial insurance
Dragon, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of a(n)
discontinuous innovation.
Unsought products are
products that the consumer does not know about or knows about but does not initially want.
Considering the classification of consumer products, which of the following products will have the most limited distribution?
Rolex watches
Breyer’s introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer’s new product was in the __________ stage of the new-product process.
market testing
Idea generation is the stage in the new-product process that
develops a pool of concepts as candidates for new products.
Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are referred to as __________.
shopping products
New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market. Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element?
development
The Little Remedies products shown above best describe which of the following?
product line
Speed or __________ is often vital in introducing a new product.
time to market
Which of the following is NOT a benefit of using the Activeion Ionator?
cost of the Ionator unit itself
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
for money or something else of value.
New-product strategy development refers to
the stage of the new-product process that defines the strategic role for a new product in terms of the firm’s overall objectives.
Burberry makes fine raincoats, clothing, and other items, some that feature the company’s distinctive plaids. Originally found only in Great Britain, 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 is selling which classification of consumer product?
specialty product
Figure 10-3 above represents the seven stages of the new-product development process. Stage 1 is the __________ stage.
new-product strategy development
The late Steve Jobs oversaw or invented innovations that revolutionized six industries. Which industry below is NOT one of these six?
television
The addition of Clorox II bleach to Tide laundry detergents is an example of
continuous innovation.
Among business products, legal counsel for patent information for a firm’s R&D department would most likely be classified as which type of support product?
industrial services
A discontinuous innovation is a product that
requires consumers to learn entirely new patterns of behavior and product usage.
Figure 10-3 above represents the seven stages of the new-product development process. Stage 6 is the __________ stage.
market testing
Among business products, which of the following would most likely be considered an installation?
a factory
In terms of price, which of the following type of consumer product would most likely be relatively inexpensive?
convenience product
Products (such as tools and repair services) that are used to assist in producing other goods and services are referred to as __________.
support products
A durable good is defined as a(n)
item that usually lasts over an extended number of uses.
Supplies are support products that include items such as
stationery, paper clips, and brooms
With respect to distribution, shopping products are available
at a large number of selective outlets
Which of the following is an example of a product line?
Hallmark Mother’s and Father’s Day cards Option 4
Who wouldn’t want to eat Garlic Cake? Garlic Cake was supposed to be served as an hors d’oeuvre with sweet breads, spreads, and meats, but somehow the company forgot to tell and explain this to potential consumers. This product failure demonstrates
poor execution of the marketing mix.
All of the different product lines offered by an organization are collectively referred to as a
product mix
Figure 10-3 above represents the seven stages of the new-product development process. Stage 2 is the __________ stage.
idea generation
The new-product process an organization goes through to identify business opportunities and convert them into salable products or services contains
seven stages from new product strategy development to commercialization.
A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain would have purchased which kind of business products?
industrial services
The stage of the new product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as
business analysis
Sara Burns is the owner of a company called TropicalSpice and was looking for a new product to go with her company’s line of food condiments when a friend suggested combining spices from India with tea. In the __________ stage of the new-product process, the spices and tea mixtures were exposed to prospective consumers under realistic purchase conditions.
market testing
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 __________.
services
Philips Sonicare recently introduced the FlexCare+ rechargeable toothbrush. A key innovation is a new “gum care” mode that prompts consumers to brush for a full 3-minute cycle for improved gum health. This is an example of which type of innovation?
dynamically continuous innovation
One of the eight primary MARKETING-RELATED reasons for new-product failure is __________.
incomplete market and product protocol Option 2
Which of the following statements regarding goods is MOST accurate?
In addition to appealing to the senses, some goods also have intangible attributes.
A failure fee is a penalty payment
a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.
A product that establishes new consumption patterns among consumers is a
discontinuous innovation.
A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, __________, are distributed through the same type of outlets, or fall within a given price range.
are sold to the same customer group
In terms of promotion, which of the following types of products would stress price, availability, and awareness?
convenience
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is one bear it designed for people to give to each other on Valentine’s Day. The Love Bandit Bear is an example of a
product item
The Vermont Teddy Bear Company sells handmade Teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give to each other on Valentine’s Day. The unique identification number that the Vermont Teddy Bear Company uses to distinguish this Teddy bear from the others in its product line for ordering and inventory purposes is called a(n)
stock keeping unit
A general review of the marketing strategy, product assessment, economic analysis, and legal examination would all take place during which stage of the new-product process?
business analysis
Support products are items used to assist in producing other goods and services. These include installations, industrial services, supplies, and __________.
accessory equipment
Shopping products refer to items that the consumer
compares several alternatives on several criteria such as price, quality, or style.
The first stage of the new-product process is
new product strategy development
According to Robert Stephens of the Geek Squad, the biggest complaint about technical support people is
they are rude and egotistical
The Federal Trade Commission (FTC) considers a product “new” only
for a period of six months after it enters regular distribution.
Mr. Clean is an antibacterial cleaning liquid for home use. If Proctor and 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 new product from the company’s perspective because it is a product line extension.
When audiences are allowed to preview actual movies (a “sneak preview”) such as Harry Potter and the Deathly Hallows—Part 2 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 does this occur?
market testing
Among business products, supplies usually consist of
items as pens, batteries and light bulbs
A concept test is an
external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product.
imulated test markets (STMs) are often run in shopping malls where consumers are
questioned to identify who uses the product class being tested.
The New York Times calls Marissa Mayer the “__________” of Google’s home page, the one person who “controls the look, feel, and functionality of the Internet’s most heavily trafficked search engine.”
gatekeeper
In the new-product process, product ideas that survive the business analysis stage proceed to the __________ stage.
development
In terms of promotion, which of the following type of consumer product stresses status and uniqueness of brand?
specialty product
Despite the quality and benefits of Activeion’s Ionator, the company was faced with several challenges. Which of the following is an example of one of Activeion’s obstacles when marketing this new product?
It was difficult to define “clean” to customers relative to the competitive household products market.
According to Figure 10-2 above, column “A” represents a
continuous innovation
In terms of promotion, which of the following type of consumer product stresses product differentiation from competitors?
shopping product
Products organizations buy that assist in providing other products for resale are referred to as __________.
business products
Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn’t believe the claim and were frightened by the “cidal” in the brand name. The reason for this product failure was
incomplete market and product protocol.
An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT:
nondurable good
Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new
for the first six months that it was regularly available.
Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. This is what Harley-Davidson magazine did when it introduced __________, and it failed quickly.
perfume
With respect to promotion, which of the following strategies would most likely be used for unsought products?
generating awareness
Which of the products listed below would be the best candidate for full-scale market testing?
new iced coffee beverage from Starbucks
George Santayana, Spanish philosopher once said, “Those who cannot remember the past are condemned to repeat it.” Applied to the organizational problems in new-product failure, this is really an example of
skipping stages in the new-product process
A dramatic benefit of Activeion’s Ionator is its __________.
environmental impact on users’ health and safety
Parallel development, involving the simultaneous development of both the product and the production process, is the responsibility of __________.
cross-functional teams
A new product protocol should be created
before the product is even developed.
In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes for which type of product?
convenience
A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range is referred to as a __________.
product line
Which of the following is considered an idea?
freedom
From an organization’s perspective regarding its new products and innovations, which of the following new-product strategies has the lowest level of risk?
product line extension
When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased a(n) __________ kind of business product.
industrial services
LG Electronics recently introduced the Fridge-TV. This is an example of which type of innovation?
dynamically continuous innovation
Marketers pay slotting fees to grocers in payment for space—or slots—on their retail shelves. Such slotting fees significantly increase the cost of which stage of the new-product process?
commercialization
The Apple II, Macintosh, iPod, iPhone, MacBook Air, and iPad are all examples of a company’s commitment to __________.
new product development
The screening and evaluation stage of the new-product process involves
internal and external evaluations of new-product ideas.
New product failures may be reduced or avoided if the company developing the new product has
a precise protocol
With respect to price and availability, shopping products are likely to be
fairly expensive and available at a large number of selective outlets.
Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) __________; and (3) what the product will be and do to satisfy consumers.
specific customers’ needs, wants, and preferences
In which stage in the new-product process would a firm use both a SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats?
new-product strategy development
Ideally, before a new product is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers’ needs, wants, and preferences; and (3) __________.
what the product will be and do to satisfy consumers
Volvo’s YCC opens its doors with a press of a button on the car key, will parallel park the car with a self-steering system, and has customized seat covers that can be removed and washed. Many of these new product features were added because Volvo sought ideas from
women employees
Accessories are support products that include items such as
tools and office equipment
Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally). When it was introduced, Napster would have been an example of a
discontinuous
Among business products, printer paper would be classified as which type of support product?
supplies
Business analysis refers to the stage of the new product process
that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.