Question 1

The American Red Cross uses marketing to help achieve its goals. As a service, it can be classified as

Accepted Answer

A)  a nonprofit organization.
B)  equipment-based.
C)  a for-profit organization.
D)  a business firm.
E)  a governmental agency.F) A) and B)
G) B) and D)

Question 2

Since its launch, Netflix has changed its business model in order to

Accepted Answer

A)  compete with Blockbuster's retail store expansion.
B)  respond to changing customer service needs.
C)  expand its focus from entertainment to movie collectibles and memorabilia.
D)  avoid head-to-head competition with satellite television providers, which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix.
E)  begin preparations to withdraw from its traditional method of mail delivery, which takes 2-3 business days, and introduce next-day delivery through FedEx.F) None of the above
G) A) and E)

Question 3

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German car makers exported several models with the steering wheel on the right to accommodate the way the Japanese drive their cars on the left side of the road. American car manufacturers could blame their failure to a great degree on

Accepted Answer

A)  an insignificant point of difference.
B)  too little market attractiveness.
C)  not satisfying customer needs on critical factors.
D)  poor product quality.
E)  incomplete market and product protocol.F) A) and E)
G) A) and D)

Question 4

Accessory equipment are support products that include items such as

Accepted Answer

A)  stationery, paper clips, and brooms.
B)  tools and office equipment.
C)  buildings and fixed equipment.
D)  raw materials and component parts.
E)  maintenance, repair, and legal services.F) B) and E)
G) None of the above

Question 5

Ideally, before a new product or service 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 or service will be and do to satisfy consumers.

Accepted Answer

A)  a clear plan for distribution
B)  specific customers' needs, wants, and preferences
C)  an analysis of potential competitors' products or services
D)  a precise budget of how much can be spent for the marketing program
E)  clear financial goals and expectationsF) B) and E)
G) B) and D)

Question 6

Convenience products refer to

Accepted Answer

A)  items that consumers will make special efforts to seek out and buy.
B)  items for which consumers compare several alternatives on criteria such as price, quality, or style.
C)  products consumers purchase frequently and with a minimum of shopping effort.
D)  ancillary products used to make other products work more efficiently.
E)  low-cost items for which there are numerous substitutes and generic equivalents.F) A) and E)
G) A) and C)

Question 7

In using a gap analysis, the two basic components of a customer's evaluation of a service are

Accepted Answer

A)  expectations and customer contact.
B)  expectations and experience.
C)  intangibility and inconsistency.
D)  experience and credence.
E)  inconsistency and inseparability.F) B) and E)
G) A) and B)

Question 8

Southwest Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 p.m. The plane, a Boeing 737, has a capacity of 120 passengers. During the past month, the flight has averaged 24 passengers, a load factor of only 20 percent. Once the plane takes off, the empty seats generate no revenue for the airline for that flight. What unique aspect of services does this situation describe?

Accepted Answer

A)  incongruity
B)  intangibility
C)  inconsistency
D)  inseparability
E)  idle production capacityF) D) and E)
G) A) and C)

Exam 9: Developing New Products and Services

Ideally, before a new product or service 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 or service will be and do to satisfy consumers.

Correct Answer
verified

In using a gap analysis, the two basic components of a customer's evaluation of a service are

Correct Answer
verified

Correct Answer
verified

The American Red Cross uses marketing to help achieve its goals. As a service, it can be classified as

Correct Answer
verified

Correct Answer
verified

Accessory equipment are support products that include items such as

Correct Answer
verified

Convenience products refer to

Correct Answer
verified

Since its launch, Netflix has changed its business model in order to

Correct Answer
verified

Exam 9: Developing New Products and Services

Ideally, before a new product or service 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 or service will be and do to satisfy consumers.

Correct AnswerverifiedShow Answer

In using a gap analysis, the two basic components of a customer's evaluation of a service are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The American Red Cross uses marketing to help achieve its goals. As a service, it can be classified as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Accessory equipment are support products that include items such as

Correct AnswerverifiedShow Answer

Convenience products refer to

Correct AnswerverifiedShow Answer

Since its launch, Netflix has changed its business model in order to

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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