8.01 Understanding Product Service Management

Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor's brand.  What strategy would be most appropriate to use in this situation?

• Take the product off the market
• Do nothing; fluctuations in sales are common
• Modify the product to renew customer interest
• Triple the advertising budget for the product

Why is the quality level of a product an important product/service management decision?

• It identifies a product's brand
• It reflects the image of the business.
• It protects the consumers.
• It refers to the way the product works.

Which activity is addressed in the product/service management function?

• Setting discounts to clear products from inventory
• Determining where products will be offered for sale
• Focusing promotional activities on a new-product release
• Eliminating products that are slow sellers

Which of the following is a way that a business can extend the life cycle of an established product?

• By restricting distribution
• By attracting consumers who are innovators
• By promoting the product to current users
• By finding new uses for the product

Why does a company need to know what stage of the product life cycle its products are in?

• To prevent imitators from entering the market
• To find new uses for the product
• To predict the length of the life cycle
• To adapt its marketing strategies

Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product's life cycle?

• Because sales decline in the growth stage
• Because marketing strategies are adjusted
• Because competitors have entered the market
• Because production is more efficient

What is a technologically advanced method that allows businesses to produce products that are specialized for a very few customers?

• Intermittent conversion
• Automatic production
• Computerized robotics
• Mass customization

What is one way businesses use computer technology to obtain information to improve their product/service mix?

• Mailing questionnaires to customers
• Tracking visitors to their web sites
• Compiling detailed databases
• Preparing interactive software programs

Which of the following technological tools helps a business's employees simultaneously access the same information about the business's products?

• Memory card
• Micro-portal
• Intranet
• Generator

What is an example of an ethical issue that a product/service manager might face?

• Use of color on the label
• Use of environmentally friendly packaging
• Use of packaging as a means of promotion
• Use of nutrition information on a food label