Chapter 13: Developing and Managing Products

Question 1

Good

Answer 1

tangible product

Question 2

Service

Answer 2

intangible product

Question 3

purchased to satisfy personal and family needs (convenience, shopping and specialty)

Answer 3

consumer product

Question 4

bought for resale, for making other products

Answer 4

business product

Question 5

where buyers want to expert only minimal effort

Answer 5

convenience product

Question 6

item where buyers are willing to put lots of effort on planning and making purchase

Answer 6

shopping product

Question 7

item that possesses uniqueness where buyers are willing to spend considerable purchasing effort

Answer 7

specialty product

Question 8

product that is not actively sought out until a significant event occurs

Answer 8

unsought product

Question 9

basic material that actually becomes part of a physical product

Answer 9

raw materials

Question 10

large tools and machines used for production

Answer 10

major equipment

Question 11

equipment used in a business’ production or office activities

Answer 11

accessory equipment

Question 12

item that becomes part of a physical item or a product and is a fixed item

Answer 12

component part

Question 13

used directly in production of another product but not identifiable in the finished product. ex: glue

Answer 13

process material

Question 14

facilitates production but doesn’t become part of finished product. ex: paper, pencil

Answer 14

supply

Question 15

intangible product that an organization uses in its operation

Answer 15

business service

Question 16

• any product improvement that customers value over existing choices
• includes entirely new products or adaptations of existing products

Answer 16

innovation

Question 17

Idea generation

Answer 17

1st phase of product development process

Question 18

2nd phase of P.D. process. Screen ideas to select the best one

Answer 18

Product Analysis

Question 19

3rd phase of P.D. process. Build prototypes of the product to test on a small scale

Answer 19

Development and testing

Question 20

Final phase of P.D. Take all you’ve learned from previous phases and make final improvements before launching to the market

Answer 20

Commercialization

Question 21

4 phases of Product Development Process

Answer 21

idea generation, product analysis, development and testing and commercialization

Question 22

4 stages of Product Life Cycle

Answer 22

introduction stage, growth stage, maturity stage and decline stage

Question 23

few competitors, sales low, profits low

Answer 23

introduction stage

Question 24

customers begin to adopt product, sales and profits increase, competitors take notice and enter product category

Answer 24

growth stage

Question 25

sales peak, profits decline as market becomes saturated and competitors lower prices

Answer 25

maturity stage

Question 26

helps marketers maximize profitability of their products over time

Answer 26

product life cycle

Question 27

collection of all the company’s products

Answer 27

product mix

Question 28

group of similar products that are related in how they work or their target audience

Answer 28

product line

Question 29

Decisions about product mix changes may be based on: (4)

Answer 29

1. changes in customer preference
2. challenges from competitors
3. stage of product life cycle
4. simplify product mix

Question 30

Benefits of grouping by product line: (3)

Answer 30

1. create clarity for consumers
2. better management of the company’s product mix
3. simplify branding decisions

Question 31

protect product, attract buyer attention, provides product info, better serves customer needs

Answer 31

packaging