Question;115. T F;Many of the so-called new products that are launched each year are in;fact line extensions.;116. T F;Line extensions are less common than other new products because line;extensions are more expensive and more risky.;117. T F;Quality modifications never seek to reduce product quality.;118. T F;Quality modification of an existing product aims at changing the;product's safety, convenience, or versatility.;119. T F;Functional modifications usually require that the product be redesigned.;120. T F;Functional modifications make an existing product more durable.;121. T F;Functional modifications help an organization achieve and maintain a;progressive image.;122. T F;Automobile makers rely heavily on aesthetic modifications.;123. T F;The major drawback in using aesthetic modifications is that their value;is determined subjectively.;124. T F;New products are classified solely as innovations that have never been;sold by any organization.;125. T F;Firms marketing a quality product that generates strong sales can afford;to keep expenses down by eliminating new-product development.;126. T F;Sales personnel are an external source for new product ideas.;127. T F;Concept testing gives reliable feedback, but at a relatively high cost.;128. T F;Concept testing presents a small sample of potential buyers with a trial;version of the new product to determine their initial reactions.;129. T F;The business analysis stage of new-product development explores how well;the new product fits in with the firm's existing product mix.;130. T F;Business analysis provides a tentative sketch of a product's;profitability.;131. T F;An important question in the business analysis stage of new-product;development is, ?Will this product meet our profit goal??;132. T F;Estimates of sales are an important component of business analysis.;133. T F;The product development stage determines the technical feasibility of;producing the new product.;134. T F;Relatively few product ideas are put into the product development stage.;135. T F;Test marketing is a sample launching of the entire marketing mix.;136. T F;Test marketing is an extension of the product screening process.;137. T F;Test marketing should be conducted when a product has been given a low;probability of success.;138. T F New-product;development does not include planning for advertising.;139. T F;Test marketing is used by companies of all sizes, primarily because of;the perceived risk of product failure on the open market and the associated;consequences.;140. T F;Time spent in test marketing can benefit a firm's competitors.;141. T F;During the commercialization phase of new-product development, plans for;full-scale manufacturing and marketing are refined and settled.;142. T F;The majority of new-product projects initiated by major companies reach;the commercialization stage.;143. T F;Designing a product that customers perceive as different from competing;products is an example of product differentiation.;144. T F;Consistency of product quality means giving consumers the quality they;expect every time they purchase a product.;145. T F;The concept of product quality is the same from consumer to consumer and;from consumer markets to organizational markets.;146. T F;The sum of all the product's physical characteristics is called product;quality.;147. T F;If you buy McDonald's French fries in Fort Collins, Colorado, and later;buy McDonald's French fries in College Station, Texas, you expect them to be of;the same quality. This is referred to consistency of quality.;148. T F;Product design is the process of creating and designing products so that;consumers perceive them as different from competing products.;149. T F;How a pair of jeans looks, regardless of the price, is an example of;styling.;150. T F;Product support services are important mainly for products that are;mechanical in nature.;151. T F;Delivery, installation, financing, repair, warranties, and guarantees;are all examples of product features.;152. T F;Warranties and customer training are examples of customer services.;153. T F;The decision to drop a product should always be a unanimous decision of;the management team.;154. T F;Systematic reviews of a company's product mix aid in determining when;product deletion is necessary.;155. T F;The phase-out approach to product deletion involves a process of;continuous price increases to make as much profit as possible before the;product is finally priced out of existence.;156. T F;The phase-out approach to product deletion exploits any strengths left;in the product.;157. T F;Therunout approach to product deletion is used for technologically;obsolete products.;158. T F;Arunout approach to product deletion lets the product decline without;changing the marketing strategy.;159. T F;The dropping approach to product deletion generates a sales spurt just;before removing the product from the market.;160. T F;To manage products effectively, the product manager must be independent;of other departments.;161. T F;Product managers can be responsible for a single product, a product;line, or several products.;162. T F;A brand manager is a type of product manager.;163. T F;There is no best approach to managing products.;164. T F;Brand and product managers operate cross-functionally.;165. T F;Product managers are most useful in the development of new products.;166. T F;A venture team has the authority to execute plans for the development of;products.;167. T F;Venture teams work outside of established organization divisions.;168. T F;Venture team members usually come from the same functional areas within;the firm.
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