Marketing Management 2nd Edition By Marshall – Test Bank

Marketing Management 2nd Edition By Marshall – Test Bank

Chapter 07
Product Strategy and New-Product Development

True / False Questions

1. The essential benefit is the fundamental need met by the product.

True False

2. Parents buying their daughter a pair of jeans would probably consider Aeropostale jeans to be just another pair of jeans; however, to the teenager, the same purchase makes an important statement about herself and her choice of clothes.

True False

3. A stock keeping unit (SKU) is a unique identification number used to track a product in the consumer’s home.

True False

4. Sometimes a company can make a product that is too reliable. An example of this would be a computer that cost a large premium over competition but would last for years. The problem is that technology changes too rapidly so better, cheaper, and faster models will come out and make the expensive, long-lasting model obsolete.

True False

5. Style is very difficult to assess. Firms do not use style often in as much as it is easy to copy.

True False

6. Luxury cars such as the Chevrolet Corvette are available with tires that enable the driver to continue driving even after the tire has been damaged. This is an example of Corvette using style as a differentiator.

True False

7. One of the disadvantages of using style as a discriminator is that consumer tastes change over time and what is considered stylish can quickly lose its appeal.

True False

8. Product life cycle (PLC) includes four basic stages: introduction, growth, maturity, and decline.

True False

9. Competitors still enter the maturity stage of the product life cycle because there is still an opportunity for success of a niche product. An example of this was when Audi entered the SUV market during its maturity stage.

True False

10. The maturity stage of the PLC is characterized as having a few large players dominate the market followed by a number of smaller companies with specific products meeting specialized market needs.

True False

11. Brand-new technologies are what people often consider a “new product.” An example of this is the group of companies working on harnessing the wave action of the oceans off the Scottish coast and other rough sea areas.

True False

12. The new-product development process can be described in three steps: (1) identify product opportunities, (2) define the marketplace parameters for the possibility of government regulation, and (3) develop the product opportunity.

True False

13. BMW has used the concept “Ban Boredom” as one of the key benefits of its MINI line. For the people in the MINI’s target market, this is an attractive benefit.

True False

14. The number of products purchased by the same customer is called repeat purchases. This can be important with things like stereos and cell phones because they rely on loyalty for success.

True False

15. The business case analysis is an overall evaluation of a product and usually assesses the product’s probability of success.

True False

16. An individual moves through five stages before adopting a product, including awareness, interest, trial, testing, and adoption.

True False

17. When consumers purchase a product for the purpose of making a value decision in the product adoption process, it is called the trial stage.

True False

18. Early adopters are opinion leaders who seek out new products but are price-sensitive to innovation.

True False

19. Everyone in a target market falls into one of five groups based on their willingness to try the innovation, including innovators, early adopters, early majority, late majority, and laggards.

True False

20. Late majority are product followers that are price-sensitive and risk-averse.

True False

Multiple Choice Questions

21. The product experience is called the ________.

A. Tangible asset of marketing space

B. Focus of consumer attributes

C. Heart of marketing

D. Soul food of marketing

E. All of these

22. The Apple Newton, the first PDA, is a good example of a product that _______.

A. Was technically inferior to the competition

B. Was priced too low to have a good image in the market

C. Was technically better than competition but still unsuccessful

D. Had great connectivity to other computers

E. All of these

23. When product is defined in a marketing context, it is _________.

A. The physical tangible product

B. A bundle of demand and supply issues

C. The total asset balancing between buyer and seller

D. The total product experience

E. All of these

24. An example of an “essential benefit” of a plane ticket is _______.

A. Getting the lowest price possible by shopping BOTS

B. Getting a person to buy from a particular airline

C. Getting a person from one place to another

D. Getting a person to think about the food, liquor, and baggage handling of the airline

E. Getting the person to buy based on unessential items in the product offering

25. Companies translate the essential benefit into physical, tangible elements known as the _________.

A. Augmented product

B. Core product

C. Deviated product

D. Differentiated product

E. Contrasting product

26. When a company creates a product that extends, enhances, and encourages the customer beyond delivering its core, this concept is called _______.

A. Product extension

B. Product deviation

C. Product subordination

D. Product clustering

E. Product enhancement

27. Tangibility refers to __________.

A. The service delivered with the product

B. The ability to create a combination of product and service

C. The physical aspect of a product

D. The value of the product in the market

E. None of these

28. Today many tangible products have a component that impacts the customer’s satisfaction before and after the purchase. This component that complements the tangible aspects of the product is called __________.

A. Physical aspects

B. Supply chain

C. Monetary characteristics

D. Intangible characteristics

E. Total emergence

29. Products that consumers purchase that are relatively low cost, purchased frequently, and lacking some amount of interest by the customer are called __________.

A. Shopping goods

B. Convenience goods

C. Specialty goods

D. Unsought goods

E. Consenting goods

30. Clothes, furniture, and major appliances are called shopping goods. This category of good implies that ________.

A. Consumers do more research prior to buying

B. They are purchased less frequently

C. They cost more and carry a fear of making a wrong decision

D. They have a variety of choices on prices and features

E. All of these

31. _____ are unique purchases made based on a defining characteristic for the consumer. The characteristic might be a real or perceive product feature such as Apple iPhone’s easy user interface.

A. Shopping goods

B. Convenience goods

C. Specialty goods

D. Unsought goods

E. None of these

32. There is a category of goods called unsought goods. These goods are characterized as being the kinds of things that consumers _______.

A. Want to be completely convenient to them

B. Do more research on and compare across product dimensions such as color, size, features, and price

C. Frequently purchase and have little interest in seeking new information about

D. Would rather not purchase at all

E. None of these

33. Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with __________.

A. What the competition is doing

B. The ability to manufacture the feature in a timely way

C. What they will pay at a given quality level

D. The configurations that make a positive brand look stylish

E. None of these

34. An important issue for consumers is conformance, which is the product’s ability _________.

A. To deliver on features and performance characteristics promised in marketing communications

B. To conform to the standards set by the federal guidelines

C. To deliver value in the form of product quality

D. To get the manufacturing aligned using quality processes

E. All of these

35. When a company can show that its product’s projected lifetime is high under certain operating conditions, it is using _____ as a differentiator.

A. Style

B. Performance Quality

C. Form

D. Durability

E. Conformance Quality

36. More than any other discriminator, style offers the advantage to a company of _______.

A. Being a low-cost differentiator

B. Being easy to do consistently over time

C. Being able to reduce quality with greater style

D. Being difficult for competition to copy

E. All of these

37. A product line is a group of products linked through usage, customer profile, price points, and distribution channels. Within a product line, strategies are developed for ________.

A. One product in the line at a time

B. All the different product lines taken together

C. A single product, but also for all products in the line

D. The top two products in the line and all the rest lumped together in one campaign

E. None of these

38. Companies must balance the number of items in a product line. Too many items and customers find it difficult to see the differences between the products. Too few products and the company runs the risk of _______.

A. Having inefficiencies in production

B. Having trouble with discounters because they may have the same product as a full-price store

C. Having a problem with communication to the market about the products

D. Missing important market opportunities that are not being attacked by the current product offerings

E. None of these

39. Combining all the products offered by a company is called the ___________.

A. Product combination package

B. Product mix

C. Product profile

D. Product standardization

E. Product function

40. Generally speaking, a new product will get ________ level of budget with respect to communication than (as) established products.

A. A lower

B. The same

C. A mid

D. A higher

E. None of these

41. The product life cycle (PLC) for a particular product has ________.

A. More than one life cycle—industry and brand life cycles

B. One life cycle for all brands combined

C. Life cycles that resemble normal curves

D. An evolutionary phase that defines when to offer a new product

E. None of these