Question 1

In product modification,the first issue to consider is whether

Accepted Answer

A)  existing customers can perceive that a product modification has been made. 
B)  the product is modifiable. 
C)  quality is modified. 
D)  modification will make the product more consistent with customers' desires. 
E)  modification will provide greater satisfaction to the consumer.

Question 2

Product deletion can best be described as the process of deleting a product from the product mix when it

Accepted Answer

A)  is perceived as a failure by top management. 
B)  is reviewed negatively by a systematic review board. 
C)  increases production costs and decreases profits. 
D)  no longer responds to promotional efforts. 
E)  no longer satisfies a sufficient number of customers.

Question 3

What is commercialization,and how is it achieved?

Accepted Answer

The answer of What is commercialization,and how is it achieved?...

Question 4

To manage products effectively,the product manager must be independent of other departments.

Accepted Answer

A) True 
 B)False

Question 5

If you buy McDonald's French fries in Fort Collins,Colorado,and later buy McDonald's French fries in College Station,Texas,you expect them to be of the same quality.This is referred to consistency of quality.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Sales and cost analyses occur most frequently in what stage of the new-product development process?

Accepted Answer

A)  Screening 
B)  Product development 
C)  Test marketing 
D)  Commercialization 
E)  Business analysis

Question 8

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour.This improvement would best be classified as a(n)

Accepted Answer

A)  brand extension. 
B)  product deletion. 
C)  aesthetic modification. 
D)  market extension. 
E)  functional modification.

Question 9

Functional modifications usually require that the product be

Accepted Answer

A)  less specific. 
B)  limited to its functions. 
C)  more appealing. 
D)  more technical. 
E)  redesigned.

Question 10

Venture team members usually come from the same functional areas within the firm.

Accepted Answer

A) True 
 B)False

Question 11

Test marketing is a sample launching of the entire marketing mix.

Accepted Answer

A) True 
 B)False

Question 12

Warranties and customer training are examples of customer services.

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

Introducing new products is risky and so is

Accepted Answer

A)  performing marketing research. 
B)  keeping tabs on the actions of competitors. 
C)  not introducing new products. 
D)  generating new product ideas. 
E)  addressing customers' concerns about products.

Question 15

During the commercialization phase of new-product development,plans for full-scale manufacturing and marketing are refined and settled.

Accepted Answer

A) True 
 B)False

Question 16

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

Accepted Answer

A) True 
 B)False

Question 17

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.Because some products are not doing well,Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued.He is suggesting a

Accepted Answer

A)  product-drop decision. 
B)  discontinuance procedure. 
C)  performance review. 
D)  closing system. 
E)  systematic review.

Question 18

Consistency of product quality means giving consumers the quality they expect every time they purchase a product.

Accepted Answer

A) True 
 B)False

Question 19

PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers.Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?

Accepted Answer

A)  There are research and audit services available. 
B)  Retailers would be cooperative. 
C)  Testing efforts would not be easily jammed by competitors. 
D)  Tourism is a major industry in the area. 
E)  The city has stable year-round sales of soft drinks.

Question 20

Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n)____ modification.

Accepted Answer

A)  functional 
B)  quality 
C)  product extension 
D)  brand 
E)  aesthetic

Exam 11: Strategic Product Management

In product modification,the first issue to consider is whether

Product deletion can best be described as the process of deleting a product from the product mix when it

What is commercialization,and how is it achieved?

To manage products effectively,the product manager must be independent of other departments.

If you buy McDonald's French fries in Fort Collins,Colorado,and later buy McDonald's French fries in College Station,Texas,you expect them to be of the same quality.This is referred to consistency of quality.

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

Sales and cost analyses occur most frequently in what stage of the new-product development process?

When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour.This improvement would best be classified as a(n)

Functional modifications usually require that the product be

Venture team members usually come from the same functional areas within the firm.

Test marketing is a sample launching of the entire marketing mix.

Warranties and customer training are examples of customer services.

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.

Introducing new products is risky and so is

During the commercialization phase of new-product development,plans for full-scale manufacturing and marketing are refined and settled.

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

Consistency of product quality means giving consumers the quality they expect every time they purchase a product.

PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers.Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?

Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification.