Chapter 12: Developing and Managing Products

Question 1

line extension

Answer 1

development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs

Question 2

product modification

Answer 2

changes in one or more characteristics of a product

Question 3

quality modifications

Answer 3

changes relating to a product’s dependability and durability

Question 4

functional modifications

Answer 4

changes affecting a product’s versatility, effectiveness, convenience, or safety

Question 5

aesthetic modifications

Answer 5

changes relating to the sensory appeal of a product

Question 6

new-product development process

Answer 6

a seven-phase process for introducing products:
idea generation, 
screening, 
concept testing, 
business analysis, 
product development, 
test-marketing, 
and commercialization

Question 7

idea generation

Answer 7

seeking product ideas to achieve organizational objectives

Question 8

screening

Answer 8

selecting the ideas with the greatest potential for further review

Question 9

concept testing

Answer 9

seeking a sample of a potential buyers’ responses to a product idea

Question 10

business analysis

Answer 10

evaluating the potential impact of a product idea on the firm’s sales, costs, and profits

Question 11

product development

Answer 11

determining if producing a product is technically feasible and cost effective

Question 12

test marketing

Answer 12

a limited introduction of a product in geographic areas chosen to represent the intended market

Question 13

commercialization

Answer 13

refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product

Question 14

product differentiation

Answer 14

creating and designing products so that customers perceive them as different from competing products

Question 15

quality

Answer 15

the overall characteristics of a product that allow it to perform as expected in satisfying customer needs

Question 16

level of quality

Answer 16

the amount of quality a product possesses

Question 17

consistency of quality

Answer 17

the degree to which a product has the same level of quality over time

Question 18

product design

Answer 18

how a product is conceived, planned, and produced

Question 19

styling

Answer 19

the physical appearance of a product

Question 20

product features

Answer 20

specific design characteristics that allow a product to perform certain tasks

Question 21

customer services

Answer 21

human or mechanical efforts or activities that add value to a product

Question 22

product positioning

Answer 22

the decisions and activities intended to create and maintain a certain concept of the firm’s product, relative to competitive brands, in customers’ minds

Question 23

product deletion

Answer 23

eliminating a product from the product mix when it no longer satisfies a sufficient number of customers

Question 24

product manager

Answer 24

the person within an organization who is responsible for a product, a product line, or several distinct products that make up a group

Question 25

brand manager

Answer 25

the person responsible for a single brand

Question 26

market manager

Answer 26

the person responsible for managing the marketing activities that serve a particular group of customers

Question 27

venture team

Answer 27

a cross-functional group that creates entirely new products that may be aimed at new markets