1. Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

compensating

balancing

late

strategic pay off

2. Which of the following is the best example of a new-to-the-world product?

Tata Motors, an Indian automobile company, acquires Jaguar to extend its business

Kids-Med, a company that produces childcare products, launches a non-contact thermometer

Pestorica, a publishing company, decides to launch a new sports magazine

Walmart, the retail giant, opens new stores in an underdeveloped African country

3. Marketers must see themselves as benefit providers. For example, when a shopper purchases new shoes, he or she expects the shoes to cover his or her feet and allow him or her to walk unobstructed. This is an example of what level in the consumer-value hierarchy?

Potential product

Basic product

Pure tangible product

Augmented product

4. Which of the following is the level at which the product’s primary characteristics operate?

Conformance quality

Performance quality

Durability

Design

5. When the physical product cannot be easily differentiated, the key to competitive success may lie in adding valued services and improving their quality. The main service differentiators are ordering ease, delivery, installation, ________, customer consulting, maintenance, and repair.

customer training

technology intensity

adaptability

ease of use

6. Which of the following will most help service providers overcome the limitation of intangibility of services when positioning itself?

Cultivating non-peak demand

Working with larger groups

Sharing services

Using brand symbols

7. Product launches include many tasks and often take longer than expected. To coordinate effectively, a planning technique such as ______ can be used.

key path scheduling

task scheduling planner

critical path scheduling

master scheduling

8. The five product levels constitute a ________. At each level more customer value is added.

customer-value hierarchy

demand chain

value grid

business model

9. Which of the following is most closely related with the organic growth of an organization?

Developing new products from within

Increasing the operational profitability

Increasing productivity of employees

Acquiring a product or service brand

10. Most new-product activities are devoted to

introducing backward integration

changing the target markets

improving existing products

changing the existing market dynamics

11. A dance school in the Bronx teaches professional hip-hop and salsa. It is experiencing an increase in student admissions, which is leading to substantial improvement in profits. The school is going through the ________ phase of its life cycle.

maturity

growth

introduction

decline

12. Services high in ________ are those services that have characteristics the buyer normally finds hard to evaluate even after consumption.

trial qualities

credence qualities

experience qualities

search qualities

13. ________ is the ability of a company to prepare on a large-scale basis individually designed products, services, programs, and communications.

Backward compatibility

Interoperability

Mass customization

Reverse engineering

14. Which of the following steps will help service firms to increase their quality control?

Standardizing the service performance process

Providing complementary services to customers

Cultivating non-peak demand

Adopting differential pricing

15. Product-line analysis provides information for two key decision areas: product-line length and ________.

product-class composition

product need family

popular pricing

product mix-pricing

16. Poga International, a multinational beverage corporation, identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Exchange entry

Late entry

First entry

Parallel entry

17. It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n) ________.

emergency good

heterogeneous shopping good

impulse good

specialty good

18. Happy Home Products produces detergents, toothpaste, bar soap, disposable diapers, and paper products. This company has a product ________ of five lines.

type

length

class

width

19. One of the ways to change the course of a brand is to modify the product. Under product modification, ________ adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience.

technological improvement

quality improvement

style improvement

feature improvement

20. Campbell Soups is a newly established company that specializes in preparing healthy but tasty food for children under the age of 5. It is incurring huge production costs, nonexistent profits, and slow sales growth. The company is in the ________ phase of its life cycle.

maturity

growth

introduction

decline

21. Using the ________ level of the product hierarchy to market its soups, Campbell Soups feature the company name first, then the soup variety on their packaging.

product-line

product-class

product-type

product-family