Marketing Management 2Nd Edition Marshall Test Bank Full Chapter PDF

Marketing Management 2nd Edition
Marshall Test Bank

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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
7-1
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McGraw-Hill Education.
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
7-2
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
7-3
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
7-4
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
7-5
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
7-6
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
7-7
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
7-8
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
7-9
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
7-10
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
7-11
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
7-12
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
7-13
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
42. It is not uncommon to see ________ profits in the introduction phase of the product life cycle
for an industry.
A. High
B. No (or loses)
C. Average
D. Low
E. None of these
7-14
43. The objective in the introduction phase of the product life cycle (PLC) is to _______________.
A. Differentiate the product from those of new competitors, promoting rapid expansion
B. Transition the product from high growth to sales stability

C. Build market awareness for the product, leading to trial purchase
D. Determine the future of the product
E. All of these
44. The essential marketing objective in the growth phase of the PLC is to ____________.
A. Build trial of the product
B. Build public relations for the product
C. Build trial followed by loyalty
D. Differentiate the product from those of new competitors
E. All of these
45. In the _________ phase of PLC, sales continue to increase but at a decreasing rate.
A. Maturity
B. Growth
C. Introduction
D. Decline
E. None of these
7-15
46. Informing and educating the target audience about the product's benefits, characteristics,
and features is part of the communication strategy in the ___________ phase of the product
life cycle.
A. Introduction
B. Growth
C. Maturity
D. Decline
E. All of these
47. In the introduction phase of the PLC it is important to _________.
A. Inform and educate the target audience about the product's features and benefits
B. Link the brand with key product features and highlight differentiation between competitors
C. Work to further differentiate the product from those of competitors
D. Decide whether to invest further in the product or allocate funding to a new project(s)
E. Target the high-end market with a differentiated product and higher price point
48. Generally speaking, the most dramatic increase in revenue occurs in the _________ phase of
the PLC.
A. Introduction
B. Growth
C. Maturity
D. Saturation
E. Decline
7-16
49. Products introduced in the growth phase tend to have __________.
A. Fewer features and better design
B. Differentiated function
C. More features and better design
D. Limited design and more features
E. None of these
50. In the growth phase of the PLC, marketing communications _______.
A. Inform and educate the target audience about the product's features and benefits
B. Face the challenge of deciding between short-term sales promotions or investing more in
the brand
C. Link the brand with key product features and highlight differentiation between competitors
D. All of these
E. None of these
7-17
51. As models proliferate and market segmentation becomes more pronounced, companies seek
__________ distribution for their products.
A. Limited
B. Selective
C. Broader
D. Maximum
E. None of these
52. The first stage of the maturity phase of the PLC is characterized as having _________.
A. Growth, but at a rate lower than the growth stage
B. No growth
C. Loss of sales
D. Growth at an increasing rate in comparison to the growth stage
E. None of these
7-18
53. In the final stage of the maturity phase of the PLC, the market _______.
A. Picks up steam as it moves to the decline stage
B. Begins to feel the pressure of overcapacity and the market starts to lose customers
C. Begins to see price-only buyers move in and challenge existing producers to add more
features to the product
D. Begins to feel the pressure of global manufacturing and moves to go international
E. None of these
54. Early in the maturity phase of the PLC, the product reaches its ________ distribution with
respect to the variety of outlets targeted.
A. Minimum
B. Stable
C. Maximum
D. Selective
E. None of these
7-19
55. In the decline stage of the PLC, price is pressured as a result of _______.
A. Consumers forgetting about the brand
B. New companies forging ahead in the market and offering lower prices to gain market share
C. Suppliers giving the firm price concessions, but not helping with the reduction in market
size
D. Competitors dropping price and costs remaining high due to lower sales volume
E. None of these
56. Products that are new-to-the-world create a product situation that can be described as
______________.
A. Supply chain shifting
B. Innovation by intimidation
C. Diluted innovation
D. Disruptive innovation
E. None of these
7-20
57. New-to-the-world products are products that _______.
A. Have been available before but are recycled
B. Are innovative but only slightly different than previous products
C. Have not been available before their introduction to the market
D. Are not disruptive to the marketplace
E. None of these
58. When new-to-the-world products are better, faster versions of existing products that target,
for the most part, existing customers, it is said that these products are ___________.
A. Neo innovations
B. Subtle innovations
C. Left-handed innovations
D. Sustaining innovations
E. None of these
7-21
59. One way to extend the product is by creating ___________.
A. Additions to existing product lines
B. New names for the same products
C. Products from a different industry to your industry
D. Products that look like the competitions' but are not really different than the competitions'
E. None of these
60. When products like cell phones have been aimed as a safety device for working women and
moms, one way to find "new" markets is to _________.
A. Add features to the phones
B. Sell added benefits to the existing customers
C. Reposition the existing products to new markets
D. Alter the billing so more people can afford the product
E. All of these
7-22
61. Customers view new products much differently than companies. Customers care only if the
product is ______.
A. New to their retail store
B. New to them
C. Offered through a new outlet
D. Offered online instead of at a brick-and-mortar store
E. None of these
62. Success or failure of a new product is determined by the action of the company. The factor or
factors that increase the likelihood of failure can be described as _______.
A. Poor marketing communications
B. Failure to meet customer expectations
C. Incorrect pricing
D. Failure to identify the value proposition
E. All of these
7-23
63. One challenge facing companies is to generate new ideas for products. A good source for
new-product ideas come from internal employees from ________.
A. R&D
B. Marketing
C. Manufacturing
D. All of these
E. None of these
64. Many times customers provide ideas to salespeople, customer service representatives, and
other direct customer contact people in the firm. These type of inside people and customers
are generally good at generating ideas that are ________.
A. Game-changing products
B. Innovative leaps in design
C. Incremental changes to existing products
D. Challenging for R&D due to their aggressive nature
E. None of these
7-24
65. Many organizations are too small to have a national sales force to help discover new-product
ideas. As a consequence they often use _______ that offer a link between the customer and
company.
A. Distributors
B. Parts manufacturers
C. Logistics companies
D. Server farms
E. None of these
66. Firms must _________ new-product ideas from the list of ideas that are generated by the idea
generation stage.
A. Rank order
B. Screen and evaluate as quickly as possible
C. Develop a business plan for
D. Develop a scale model for
E. All of these
7-25
67. A stop-to-market mistake happens when __________.
A. A bad idea is allowed to make it to market
B. The screening committee decides to market a product that has a fatal flaw
C. A good idea is pushed forward without knowing the ROI of its execution
D. A good idea is prematurely eliminated during the screening process
E. None of these
68. Time to market is a term that means _________.
A. This is the best time to market this new product
B. It is time that the company had an entry into a particular market segment
C. How long it will take to develop and get the product to market
D. How long it will take to get the product through the introduction stage to the growth stage
E. None of these
7-26
69. The third stage of the new-product development cycle is _________.
A. Define the product definition
B. Define the product opportunity
C. Define the total value proposition of the cycle
D. Define the trim and vigor of the new concept
E. Define the Google search potential for the new product
70. The business case analysis stage is important because ________.
A. Not a lot of money has been spent on the new product until this point of the new-product
development process
B. It represents another low-cost analysis prior to developing a prototype product
C. The firm has already decided to take this product to the market and this analysis must
confirm this action
D. A, B, and C
E. None of these
71. New purchases of new products are called _______.
A. Original purchases
B. Subliminal purchases
C. Purchase novelties
D. Trial purchases
E. All of these
7-27
72. Total demand is a function of three separate situations, which can be described as
___________.
A. New, ideal, and impulse purchases
B. New, repeat, and replacement purchases
C. New, repeat, and impulse purchases
D. New, impulse, and replacement purchases
E. New, convenient, and impulse purchases
73. Beta testing is designed to __________.
A. Encourage customers to evaluate and provide feedback on the prototype
B. Let engineers inside the company to test the product performance
C. Give fake information to competitors about the new product
D. Let online communities discuss and dissect the new product
E. None of these
7-28
74. Market testing can take a long time, and this can result in ________.
A. Competitors being able to develop marketing strategies to counter a product launch
B. The company losing the excitement of a new product
C. Competitors being able to sabotage the firm's efforts
D. Online guerrilla tactics by competitors that will disrupt the sales cycle of the product
E. None of these
75. In the B2B market, test marketing is ________.
A. Identical to the B2C market

B. Smaller in scope and involves fewer individuals and companies
C. Larger in scope and involves more individuals and companies
D. Extremely different than B2C because of the magnetic variance of the enterprises
E. None of these
76. Products that start poorly in a product launch __________.
A. Seldom recover from the poor launch
B. Recover readily through increased marketing effort
C. Have a life cycle that looks very elastic
D. Have a knack for being the market leader through slow but steady growth
E. None of these
7-29
77. The rate at which new products become accepted is known as the _________.
A. Product variance process
B. Product sensitivity process
C. Product adoption process
D. Product steering process
E. None of these
78. An individual moves through five stages before adopting a product. The five stages include all
of the following except ____.
A. Awareness
B. Interest
C. Information search
D. Evaluation
E. Adoption
79. An individual purchases the product for the purpose of making a value decision. He is in the
_____ stage of the product adoption process.
A. Awareness
B. Interest
C. Trial
D. Evaluation
E. Adoption
7-30
80. ________ is the focus of a product launch marketing plan, because if you can get consumers
to try the product, you can win them over with superior product design, features, and value.
A. Adoption
B. Trial purchase
C. Interest
D. Evaluation
E. Awareness
81. The innovation diffusion process __________.
A. Is how long it takes a product to move from introduction to growth
B. Is how long it takes a product to move from awareness to interest
C. Is how long it takes a product to move from trial to adoption
D. Is how long it takes a product to move from first purchase to last purchase
E. None of these
82. An individual moves through stages before adopting a product. The interest stage is
characterized as ________.
A. The stage where customers find they have a passion for the product
B. Having the most significance in the new-product adoption process
C. Where consumers seek out added information about a product for further evaluation
D. The stage where customers feel, see, and touch the product
E. None of these
7-31
83. An individual moves through stages before adopting a product. The awareness stage is
characterized as ________.
A. The stage where customers find they have a passion for the product
B. Having the most significance in the new-product adoption process
C. Know of the product, but have insufficient information to move forward through the
adoption process
D. The stage where customers feel, see, and touch the product
E. None of these
84. The evaluation stage of the adoption process is where _________.
A. Consumers seek out information to further define the product
B. Consumers are engaged in the consumption of the product
C. Consumers are at the stage to determine if they want to become loyal to the product
D. Consumers combine all information and evaluate the product prior to trial
E. None of these
7-32
85. Marketers spend heavily in the product launch phase in order to move people through
________.
A. The trial phase and into the adoption phase to get loyalty as soon as possible
B. Awareness, interest, and evaluation, getting them to try the product quickly
C. The evaluation phase quickly in order for them to search out as much information as
possible
D. The adoption phase so they can be product advocates as early as possible
E. None of these
86. The early and late majority make up _________ of all adopters of a product.
A. One-third
B. One-half
C. Two-thirds
D. Three-quarters
E. None of these
87. ________ are product enthusiasts who enjoy being the first to try and master a new product.
A. Innovators
B. Early adopters
C. Early majority
D. Late majority
E. Laggards
7-33
88. Laggards are people in the adoption process who _________.
A. Purchase during the maturation stage
B. Put off purchasing until there is no other option
C. Are price-sensitive and look for simplified products
D. Buy the product used because it lacks interest to them
E. All of these
89. Innovators are product enthusiasts who enjoy being the first people to try a new product.
They represent ___________ of the market.
A. 2.5 percent
B. 13.5 percent
C. 16.0 percent
D. 34.5 percent
E. None of these
90. Product followers are price-sensitive and risk-averse. They purchase older generation or
discontinued models with lower prices and fewer features. This group of adopters is called
the _____________.
A. Laggards
B. Unsure
C. Tried and true
D. Late majority
E. Cheap and cheerful
7-34
Chapter 07 Product Strategy and New-Product Development Answer
Key
True / False Questions
1. The essential benefit is the fundamental need met by the product.
TRUE
The essential benefit is the fundamental need met by the product. No matter what other
value-added product experiences are provided to the customer, the essential benefit must
be part of the encounter.
AACSB: Communication
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Understand the essential role of the product experience in marketing.
Topic: Product: The Heart of Marketing
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
Parents buying their daughter a pair of jeans would probably consider Hollister jeans to be
just another pair of jeans.
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 07-02 Define the characteristics of a product.
7-35
3.
A stock keeping unit (SKU) is a unique identification number used to track a product in the
consumer's home.
FALSE
An SKU is a unique identification number used to track a product through a distribution

system, inventory management, and pricing.
Blooms: Remember
Difficulty: 1 Easy
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
A product can be too reliable. While it is possible to build computers that will last for years
and cost a premium, most computer manufacturers do not build them because computer
technology changes so quickly and product improvements happen so fast that people will
not pay the premium for a computer that will last for many years. They know that better,
cheaper technology will be available before the computer actually malfunctions.
AACSB: Analytic
Blooms: Apply
Difficulty: 2 Medium
7-36
5. Style is very difficult to assess. Firms do not use style often in as much as it is easy to
copy.
FALSE
One of the most difficult discriminators to accurately assess and build into a product is the
look and feel of the product, or style. It is easy for someone to say a particular product has
style, but designing it into a product can be a challenge. More than any other
discriminator, style offers the advantage of being difficult to copy.
Blooms: Remember
Difficulty: 1 Easy
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.
FALSE
Increasingly, consumers and businesses evaluate the repairability, or ease of fixing a

problem with the product, as part of the product evaluation process. As a result,
companies have built better diagnostics into their products to help isolate, identify, and
repair products without the need for the costly repairs of a professional service. Luxury
cars such as the Corvette are available with tires that enable the driver to continue driving
even after the tire has been damaged.
Blooms: Apply
Difficulty: 1 Easy
7-37
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
The real challenge is that style can be difficult to create consistently. Consumer tastes
change over time, and what is considered stylish can quickly lose it appeal.
AACSB: Analytic
Blooms: Understand
8. Product life cycle (PLC) includes four basic stages: introduction, growth, maturity, and
decline.
TRUE
Companies create, launch, and transform products as market conditions change over time.
This product evolution is referred to as the product life cycle (PLC) and defines the life of
a product in four basic stages: introduction, growth, maturity, and decline (see Exhibit 7.8).
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-04 Understand the life of a product and how product strategies change over time.
Topic: The Life of the Product: Building the Product Experience
7-38
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
See Exhibit 7.9.
AACSB: Analytic
Blooms: Understand
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
See Exhibit 7.9.
Blooms: Remember
7-39
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
Most people would define new as a product that has not been available before or bears
little resemblance to an existing product. Desktop computers, cell phones, and tablet
computers are examples of new-to-the-world products considered disruptive innovations.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-05 Recognize the importance of new-product development to long-term success.
Topic: New Products-Creating Long-Term Success
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.
FALSE
The new-product development process consists of three main activities: (1) identify
product opportunities, (2) define the product opportunity, and (3) develop the product
opportunity.
Blooms: Remember
Topic: New-Product Development Process
7-40
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
In creating an effective new-product marketing strategy it is important to clearly identify

the product benefits to the target.
Blooms: Understand
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.
FALSE
Repeat purchases are defined as the number of products purchased by the same
customer. This can be important with frequently purchased products such as convenience
goods that rely on frequent repeat purchases for success.
Blooms: Understand
Difficulty: 1 Easy
7-41
15. The business case analysis is an overall evaluation of a product and usually assesses the
product's probability of success.
TRUE
The business case analysis is an overall evaluation of a product and usually assesses the
product's probability of success. It is often done when there are changes to an existing
marketing plan, such as an increase in the marketing communications budget. The
business case would assess the feasibility of increasing the communications budget.
Blooms: Understand
Difficulty: 1 Easy
16. An individual moves through five stages before adopting a product, including awareness,
interest, trial, testing, and adoption.
FALSE
An individual moves through five stages before adopting a product.
Blooms: Remember
Learning Objective: 07-07 Identify how new products become diffused in a market.
Topic: Consumer Adoption and Diffusion Process
7-42
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
Trial purchase is the focus of a product launch marketing plan, because if you can get
consumers to try the product, you can win them over with superior product design,
features, and value.
Blooms: Remember
Learning Objective: 07-03 Recognize how product strategies evolve from one product to many products.
18. Early adopters are opinion leaders who seek out new products but are price-sensitive to
innovation.
FALSE
Early adopters (13 percent)—product opinion leaders who seek out new products
consistent with the personal self-image. This group is not price-sensitive and is willing to
pay the price premium for a product. At the same time, early adopters demand a high level
of personalized service and product features.
Blooms: Remember
7-43
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
See Exhibit 7.12.
Blooms: Remember
Difficulty: 1 Easy
20. Late majority are product followers that are price-sensitive and risk-averse.
TRUE
Late majority (34 percent)—product followers who are price-sensitive and risk-averse.
They purchase older generation or discontinued models with lower prices and fewer
product features.
Blooms: Remember
Difficulty: 1 Easy
Multiple Choice Questions
7-44
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
The essential component in delivering value is the product experience, which is why it is
considered the heart of marketing.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 07-01 Understand the essential role of the product experience in marketing.
7-45
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You may laugh, children, but it is true. The dolphin had a servant,
who was also a dolphin, but of the family of the Globiceps. These are
so called because of their round heads, which look like the globes
used in the electric lighting of streets.
The young dolphin was playing in the water. He tried to attract
Pinocchio’s attention in many ways. He spouted water through the
hole which every dolphin has at the top of his head. He called to the
marionette. He smiled at the youngster. It was of no use. Pinocchio,
with his wooden nose in the air and his dough cap on one ear, would
not even turn his head.
“I wonder if he is deaf or blind?” the dolphin finally said, loudly
enough to be heard.
Pinocchio turned with a start.
“For your own benefit, I just wish to say that I am not now and never
have been deaf,” he said as haughtily as he could.
“Then why do you look at me in that fashion? And why don’t you
answer me?” was the reply.
“I am acting just as a gentleman should toward those who are
beneath him,” said Pinocchio.
“I don’t know which of us is the better of the two. All I do know is, that
my father was the richest inhabitant of the sea and that the other
dolphins considered him their king.”
“King?” mumbled Pinocchio, who knew himself to be the son of a
poor carpenter, earning so little that he never had a penny in his
pocket.
“But king or not, what does it matter? In this world we are all equal,
for we have all been created by God. Listen, my dear marionette.
Come here. As we are to travel such a long distance together, we
should be friends. Are you willing to be my friend?”
These pleasing words made Pinocchio see how stupid and how rude
he had been.
“Think of it! A fish (oh, no, I mean a sea animal) giving me lessons in
politeness!” Then turning to the dolphin, he said, “Yes, we shall be
friends. What is your name?”
“Marsovino. And yours?”
“Pinocchio.”
“A beautiful name. Come, shake hands.”
“Very willingly,” replied Pinocchio.
The good little animal stuck one of his fore fins out of the water for
Pinocchio to shake.
“And what is the tutor’s name?” said the boy of wood to the boy of
the sea.
“The tutor is a dolphin of the Tursio family, but I call him father. Is it
true that you are coming with us on our travels?”
“Yes,” said the marionette, proudly. “And I am able to teach you.”
“Teach me! That’s strange. How do you expect to teach me?”
“You will soon find out. You talk rather disrespectfully to me. I have
been in all the schools of the kingdom. And you? You probably have
never been on land for twenty-four hours.”
Marsovino looked at the marionette smilingly, but made no reply.
Pinocchio walked up and down with his hands in his pockets and his
hat at an angle of forty-five degrees, ruffling his feathers at the
brilliant remark he had made.
As soon as Tursio came near, Marsovino asked him if he were ready.
“Yes. Everything is finished,” was the reply. “Are you ready,
Pinocchio?”
“Yes. I am ready. Let us start.”
“Start? How? Do you mean to say that you are coming under the sea
with that suit?”
“Of course. It’s the only one I have.”
“A suit of paper! The very idea! Luckily I have prepared for this.
Here, Globicephalous,” he said to his servant, “give me that little suit
of ray leather,—the one I had you make this morning.”
“Splendid,” cried Pinocchio, clapping his hands. “Now I have a new
suit.”
Putting it on, he looked at himself in the water. Seeing how dark and
unbecoming it appeared, he turned to Tursio and said excitedly:
“I don’t want this. It is too ugly. I like my pretty flowered-paper one
better.”
“Your paper one Globicephalous will carry in his satchel for you.
Should you wear it in the water, it would be spoiled.”
“I want my pretty suit,” insisted Pinocchio. “If any one saw me in this
thing, he would ask me if I had been through the coal-hole.”
“But yours will be ruined if you wear it in the water, I tell you.”
“I want mine. I want mine,” wailed Pinocchio.
“Very well. Globicephalous, take the paper suit out of the traveling
bag and give it to the boy.”
The marionette turned, expecting to see an ordinary traveling bag.
Instead, he saw Globicephalous take an enormous oyster out of the
water.
“Isn’t that strange! Oyster shells for a traveling bag!”
“Strange? Why, what is strange about that?” asked Tursio.
“What is its name?” asked Pinocchio.
“That is the giant Tridacna. They are the largest oyster shells
known.”
“How large the animal inside must be,” observed Pinocchio, with a
yawn.
“Yes. It is very large, and also very beautiful. The center of the body
is a violet color dotted with black. Around this is a green border. At
the extreme edge the colors change from deepest to lightest blue.
Yes, indeed. It is very beautiful.”
“What a good meal it would make,” thought Pinocchio. His only wish
was for a good dinner, but in order to be polite he said, “Who would
ever think that there are such things under the sea!”
“Why, you have been in every school in the kingdom and don’t know
that?”
“Books on the subject you can find everywhere.”
Pinocchio bit his lips, but did not say a word. Quickly he dressed
himself again in his paper suit and declared himself ready to start.
“All right! Come along!” said the dolphin, stretching a fin out to help
Pinocchio along.
The marionette started to walk into the water. He had not gone far,
however, before his paper suit began to leave him. Hastening back
to the shore, he very meekly put on the ray-leather suit which
Globicephalous handed to him.
“Remember, my boy,” said Tursio, “that in this world of ours we must
think not only of the beauty but also of the usefulness of things. Also,
do not forget that a boy who never learns anything will never be
anything.”
“But I have learned much,” answered Pinocchio. “To prove this to
you, I can now tell you of what material this suit is made.”
“I have told you already. It is of ray leather. Do you know what a ray
is?”
“Surely I know. You may give it another name. Still, it must be that
white animal on four legs. You know. The one the shepherds shear
during some month or other.”
“Mercy!” cried Tursio. “You are talking about sheep. They give wool
to man.”
Pinocchio, without moving an eyelid, went on:
“Yes, that’s true. I have made a mistake. I should have said it is that
plant that bears round fruit, that when it opens....”
“Worse and worse,” interrupted the old dolphin. “What are you
talking of, anyway? That is the cotton plant. Marsovino, please
explain to this boy, who has read all the books in the world, what a
ray is.”
So Marsovino went on: “A ray is a fish, in shape like a large fan. It
has a very long tail, which it uses as a weapon.”
“To what class of fishes does it belong?” asked Pinocchio.
“It belongs to the same class as the lampreys, which look like
snakes, the torpedo,—”
“Be careful never to touch that fellow,” here interrupted Tursio.
“—the sawfish and the squaloids,—that is, the common shark and
the hammerhead.”
“The saw? The hammer?” observed Pinocchio. “If I find them, I must
keep them for my father. He is a carpenter, but so poor that he
seldom has money with which to buy tools.”
“Let us hope that you will never meet the saw, the terrible
hammerhead, or even the common shark,” said Tursio.
Pinocchio made no answer, but in his heart he kept thinking, “I am
very much afraid that the dolphins are teaching me, not I the
dolphins.”
Tursio then handed Pinocchio a small shell of very strange shape. It
looked like a helmet.
“Wear this, Pinocchio,” he said. “It will make a pretty cap for you.”
“It is very pretty. What is it?”
“It is a very rare shell.”
“But it is only one shell. Where is its mate?”
“It has none. It is a univalve. That means it has only one shell. The
tellines have two shells, and are therefore called bivalve. Another
kind looks like a box with a cover.”
“But does an animal live in there?”
“Of course. Every shell has its mollusk.”
“Mollusk?” repeated Pinocchio.
“Yes. The small animals that live in shells are called by that name.”
“They have a very soft body. By means of a member, called a foot,
they get such a strong hold on rocks that it is very hard to tear them
off.”
“Some mollusks have a strong golden-colored thread by which they
also hang to rocks. Why, people have even made cloth out of these
threads.”
Pinocchio cared little for all this explanation. He looked at himself in
the water, and was, after all, very much pleased with himself.
“This cap seems made for me,” he said. “Too bad I have no feather
for it.”
“Perhaps we shall find one on our journey,” laughed Tursio.
“Where will you get it? In the sea?”
“Yes, in the sea,” answered Tursio, in a tone which made the
impudent marionette almost believe him.
CHAPTER IV
“Well, children, let us hasten. If we talk so much,
the sun will rise and find us here. Come, Pinocchio!
Jump on my back and let us start.”
There was no need for Tursio to repeat his
command. In the twinkling of an eye, Pinocchio was
riding on the dolphin’s back, holding on tightly to the
dorsal fin.
“Gallop and gallop, my pretty horse,

Swiftly over the boundless sea.
Straight through the water take thy course,
Till my dear father again I see.”
“Gallop and gallop, my pretty horse,

Gallop away under the sea.
Swim to the south, and swim to the north,
Till my dear father again I see.”
So sang Pinocchio gleefully.

Tursio and his swimming companions, with a few shakes of their
strong tails, were soon far away from shore. This is not to be
wondered at, for dolphins are known to be very swift. Very soon
Pinocchio saw nothing but sea and sky. Always holding on tightly to
Tursio’s fin, he looked to the right and to the left; but nothing could
he see of his dear father.
“Hold fast, Pinocchio,” suddenly cried Tursio.
“All right, Mr. Tursio,” replied Pinocchio, but he could say no more.
For suddenly, with a great jump, the dolphin was under water.
What a moment for our poor wooden hero!
“Now I understand it all,” he thought. “This dolphin wants to get me
into the sea that he may eat me at his leisure. Oh, poor me! I shall
never again see the light of day.”
But marvel of marvels! He suddenly awoke to the fact that, instead of
drowning, he was breathing easily. Not only that, but he could
actually talk!
“This is strange,” said he. “I have always thought that people would
drown in the water.”
“And it is true,” answered the dolphin, “that men usually drown in the
sea. But I have given you the power to live under water. You see,
then, you have become a real amphibian.”
“A real what? What am I now?”
“An amphibian. That is, you have the power to live both in the air and
in the water.”
“But are there such animals?”
“Why, of course, child. Frogs, for example, which belong to the
Batrachia family. In the water they breathe with branchiæ, or gills,
and in the air with lungs. Usually, however, the name is given only to
those mammals that live in the water and move only with great
difficulty on the earth. To this class belong the seals and the sea
lions.”
“Well, then, I shall never drown.”
“No; and you will have a wonderful journey under the sea. Just hold
on to me, and I will carry you. Do not be afraid.”
“Afraid? Of course not. But I don’t like the darkness very much.”
“That is too bad. But the darkness will not last very long. You know, I
promised that we should make our journey by the light of the sun.
Wait awhile.”
Through the water Tursio went like an arrow, followed by Marsovino
and the servant.
Pinocchio, to gain courage, shut his eyes. When he opened them
again, wonder of wonders! Very near to him a large sun was moving
back and forth. It looked as if it were alive.
“The sun at the bottom of the sea!” yelled Pinocchio, frightened
almost to death. “Do you want me to believe that? You must be a
wizard playing tricks on me.”
“I am not a wizard, Pinocchio, and the sun is not a trick. It is nothing
more nor less than a fish.”
“I never heard of such a thing.”
“And you have been in all the schools of the kingdom! Marsovino,
please explain to this boy what a sunfish is.”
“The sunfish is so called because of the bright light that comes from
its body. When several of these fish are together, the sea looks as if
it were full of little, shining suns.”
As usual, Pinocchio was silent. He was beginning to think that even
dolphins knew more than he did.
Stretching out his hand, he touched a small fish that was passing by.
Another surprise! As soon as he touched it, it began to swell and
swell, until it was as round as a ball. And from this ball, countless
points began to stick out.
“Suddenly, with a Great Jump, the Dolphin was under the
Water.”
“Oh!” yelled Pinocchio again. “What is it this time?”
“It is only a globefish, my marionette. It is harmless, if you don’t
touch it.”
“But why should it turn into a balloon?”
“It does that to protect itself,” answered Tursio. “It is possible for the
globefish to do that, because it can take in a large quantity of air.
With bristles ready, it can then meet the attacks of other fish, as each
point is as sharp as a needle.”
“I never knew that before,” exclaimed Pinocchio, forgetting his
previous boast.
Tursio and Marsovino looked at each other and laughed.
CHAPTER V
The night passed without further adventure.
As soon as morning dawned, the four friends rose
to the surface. Our marionette was delighted to see
the sun again. The pure morning air, though,
reminded him that he was hungry. The day before,
if you remember, he had eaten very little.
“I should like something to eat,” he said in a weak
voice.
“Let us go to breakfast,” answered the dolphin. Gayly he dove into
the water, and led the party deep into the sea. After a short swim, he
stopped. But, unfortunately, the four friends found themselves in a
place where there were very few herring and salmon. These, you
know, are the dolphin’s favorite food.
The salmon is a fish that lives both in rivers and in seas. Like the
swallow, he looks for warm places in which to pass the winter. So, in
large numbers he migrates to the sea at that time of the year, and in
the spring he returns to the rivers.
“This morning our breakfast will be light,” observed Tursio,
swallowing three herring at once.
“I shall not eat anything. I don’t feel very well. Besides, salmon is the
only thing I can eat,” said Marsovino.
Tursio, wishing to please his pupil, started to swim toward two very
high rocks. They were so high that their tops stuck out of the water.
Very probably they were the base of an island in the middle of the
sea. But although he looked here, there, and everywhere, he could
find no salmon.
Globicephalous satisfied his hunger with three dozen herring and
half a bushel of smelts.
And Pinocchio? Pinocchio this time certainly did not suffer from lack
of food.
Tursio had shown him a large rock, attached to which were hundreds
of oysters. Some were of the size of a pinhead. Others were as large
as a boy’s cap, and these were two years old.
“Go and have your breakfast,” said Tursio.
“Must I eat those horrible-looking things?” asked Pinocchio.
“Open them and see what is inside,” was the reply.
“Pinocchio this Time certainly did not suffer from Lack of
Food.”
After Pinocchio had opened and eaten one, he no longer thought of
the looks of the oyster shells. He opened and ate so many, that it
was a wonder to Marsovino that so small a person could hold so
much.
Suddenly Pinocchio noticed numberless tiny, tiny white specks
coming out of some oysters. To him they looked like grains of sand.
But when he saw the specks moving and trying hard to attach
themselves to rocks, he could not help crying out, “O look at the live
sand, Tursio.”
“Who told you it is live sand?” asked Tursio. “Those are the newborn
oysters, looking for a place on which to spend their lives. Where
those small grains hang, there the oysters will live, grow, and die.”
“If no one gets them before that,” added Globicephalous.
“And are all those little dots oysters?”
“Yes. All of them. And many of them come from a single oyster, for
an oyster gives forth almost two millions of eggs at a time. These
little things have so many enemies, however, that very seldom do
more than ten of the millions grow old.”
“Two millions! Then I may eat all I want to,” continued Pinocchio,
unmercifully tearing away the poor oysters, young and old.
“Look, Pinocchio,” here called Tursio, pointing to a small fish, colored
with brilliant blues and reds. “That is the stickleback. You may have
heard that this fish makes a nest, as do birds. Also that the male, not
the female, takes care of the eggs.”
“Surely I have,” answered Pinocchio, seriously.
The stickleback seemed to be very much excited. He moved around
the nest he had made and watched it anxiously. The cause for this
was soon evident. A second stickleback made its appearance from
behind the rocks. At once the two engaged in a terrific struggle. They
bit each other, used their tails as weapons, and charged each other
viciously. During the battle they changed color—to a beautiful blue
mottled with silver.
Pinocchio was struck with wonder. “Look! Look! One is wounded....
He falls.... He dies!” he cried. “And look at the other. How quickly he
returns to the nest to guard the eggs!”
“But how is it,” here asked Marsovino, “that once I saw a stickleback
swallow one of his little ones?”
“If you had followed him, you would later have seen the small fish
come safely out of the large one’s mouth,” answered Tursio.
“‘Look! Look! One is Wounded.’”
“But why did the large one swallow the small one?” asked Pinocchio.
“Because the little one probably wanted to run away from the nest. It
was too soon, the little one was too young to take care of himself; so
the father took the only means he had to save the youngster from an
enemy,” patiently explained Tursio.
Just then a small fish attracted the dolphin’s attention.
“Boys,” he said, “do you see that tiny fish? It is called the pilot fish. It
is the shark’s most faithful friend. Wherever goes the shark, there
goes the pilot fish.”
“Now, Pinocchio,” he continued after a pause, “I shall leave you with
Globicephalous. Marsovino and I are going to pay a visit to the
dolphin Beluga, who is a great friend of mine. He usually lives in the
polar seas, but on account of his health, he has come to warmer
waters. We shall return this evening, if all be well. Meet us near
those two mountains which are so close together that they form a
gorge. You may take a walk with Globicephalous, but be sure to be
at that spot to-night.”
“I am ashamed to be seen with a servant,” began Pinocchio.
“You are a fine fellow,” answered Tursio, with sarcasm. “Do you
know what you should do? Buy a cloak of ignorance and a throne of
stupidity, and proclaim yourself King of False Pride of the Old and
the New World!”
With this remark Tursio turned to his pupil, and the two swam away.

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Marketing Management 2nd Edition

Marshall Test Bank

Product Strategy and New-Product Development

True / False Questions

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

Multiple Choice Questions

A. Tangible asset of marketing space

B. Focus of consumer attributes

D. Soul food of marketing

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

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

A. The physical tangible product

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

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

A. Consumers do more research prior to buying

A. Want to be completely convenient to them

D. Would rather not purchase at all

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

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

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

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

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

A. Having inefficiencies in production

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

A. Product combination package

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

B. Transition the product from high growth to sales stability

D. Determine the future of the product

A. Build trial of the product

B. Build public relations for the product

C. Build trial followed by loyalty

D. Differentiate the product from those of new competitors

47. In the introduction phase of the PLC it is important to _________.

A. Fewer features and better design

C. More features and better design

D. Limited design and more features

50. In the growth phase of the PLC, marketing communications _______.

A. Growth, but at a rate lower than the growth stage

D. Growth at an increasing rate in comparison to the growth stage

A. Picks up steam as it moves to the decline stage

D. Begins to feel the pressure of global manufacturing and moves to go international