Product Planning & Development

Which of the following describes a pure service?

• The physical, or tangible, items available for customers to purchase

• Does not include a tangible product; are the primary “product” of a business

• Includes services which correspond to a physical product

• A name, term or symbol used to identify related products

Which of the following is NOT a type of product decision which should be considered during the product planning phase?

• Brand name

• Packaging

• Profitability

• Label

What is a product line?

• A group of related items or brands sold by the same company

• A specific brand or individual product within a line

• All the products a company makes or sells

• The process of creating new or improved products

Which of the following describes a product mix?

• Additional product divisions or product categories

• The number of available items offered in each product line

• Brainstorming new product ideas

• Includes all products a company makes or sells

Which of the following describes product width?

• The number of product lines a company offers to its customers

• The height of a product

• The number of different products a company offers within a given line

• The height of a product

When screening product ideas, companies should NOT evaluate their ideas based on which of the following criteria?

• Company objectives

• Demand and profit potential

• Practicality

• Advertising costs

Which of the following advertising strategies is used in the product maturity stage?

• Build brand awareness

• Establish a beachhead against the competitors

• Lower the advertising expenditures

• Build brand loyalty

Which of the following is one of the seven steps in the product development process?

• Conception

• Idea assessment

• Product testing

• Execution

What is a test market?

• A small-scale introduction of a product to a specific area

• Environment which evaluates product ideas and feasibility

• Selected groups of people used to analyze and test the concept of a given product

• Gathering input, decisions and work from businesses and individuals outside the actual company

Which of the following is NOT something companies can do to maintain their product planning success?

• Improve current products

• Hire new employees

• Create product variations

• Eliminate weak products