Deck 11: Developing and Managing Products

Question 1

Nozzle is a specially designed product that retro fits into your existing water faucet and atomizes the water stream in a spray that lets you use 98% less water when washing hands,brushing teeth,and washing produce or dishes.Some consider this a game changer for environmental protection,especially in regions of water scarcity.This product would be categorized as:

A) a repositioned product.
B) an addition to existing product lines.
C) a revised product.
D) a discontinuous innovation.

Answer 1

D

Question 2

Felicita Brewery wants to add brown ale beer to its existing list of alcoholic products.The questions the company currently is asking itself are: What is the likely demand for the product? What impact would the new product probably have on total sales,profits,market share,and return on investment? How would the introduction of the product affect existing products? At what stage of new-product development process is this company?

A) Developmental stage
B) Business analysis stage
C) Marketing stage
D) Screening stage

Answer 2

B

Question 3

What do programs like Google X do to promote innovative thinking among its employees?

A) They eliminate the fear of coming up with bad ideas by rewarding failure.
B) They eliminate the possibility of investment in bad ideas by rewarding only successes.
C) They promote the fear of coming up with bad ideas by punishing failure.
D) They promote investment in bad ideas to explore the possibilities learned from them.

Answer 3

A

Question 4

Samsung is best known for its smartphones,tablets,and televisions.Years ago when it decided to expand its business activities and operations into ship building and military hardware,it was gearing to offer ______.

A) discontinuous innovations
B) new product lines
C) repositioned products
D) new-to-the-world products

Question 5

A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products is called ______.

A) product development
B) niche marketing
C) idea screening
D) commercialization

Question 6

Daily Farm,a food and beverage manufacturing firm,is known for its unique variety of table sauces.To offer more variations to its customers,Daily Farm recently launched an olive and pepper sauce.According to new product development,this new sauce would be categorized as an improved product.

Question 7

The objective of brainstorming is to ______.

A) generate a large quantity of ideas through a process of rigorous objective evaluation
B) generate a small set of distilled ideas through a process of rigorous objective evaluation
C) postpone objective evaluation and focus on the sheer quantity of ideas generated
D) postpone objective evaluation but eliminate ideas that do gain unanimous acceptance

Question 8

When developing new product,which is true of a new-product development strategy?

A) It refrains from adopting ideas suggested by customers and competitors.
B) It doesn't provide the general guidelines for new-product ideas.
C) It must be compatible with the objectives of the marketing department,the business unit,and the corporation.
D) It involves targeting existing products at new markets.

Question 9

Which of the following statements describes a customer innovation center?

A) It is an approach to repositioning a company's products using sales figures.
B) It promotes advertising among status-conscious customers.
C) It is a forum for meeting with customers and directly involving them in the innovation process.
D) It is used in the business analysis stage of the new-product development process.

Question 10

A furniture manufacturer with a reputation for making plain,lightweight foldable steel chairs decides to make cushioned chairs with printed upholstery.The new type of chair will be a ______.

A) product line extension
B) discontinuous innovation
C) repositioned product
D) new and improved product

Question 11

In recent years,LEGO updated the packaging of its LEGO Friends line of toys to be more girl-friendly.It has also started to include bricks that can be used to make a pop star's house and a cupcake café.These efforts indicate that LEGO is repositioning its product.

Question 12

Fournotts Corp.manufactures and sells accessories for cell phones.To boost its sales,the research and development team decides to use product modification as an approach to new product development.In this scenario,the research and development team will most likely:

A) eliminate products that are inconsistent with Fournotts's business mission.
B) develop products by applying new technology.
C) make a slight change in the design or function of the existing products.
D) add new products to supplement Fournotts's established product line.

Question 13

In late 2014,Apple introduced the iPhone 6,which featured a larger screen with 38% more pixels than the iPhone 5S and an upgraded camera that could record videos in slow motion.These changes indicate that Apple was offering a new product line.

Question 14

To rate concept (or product)alternatives,concept tests are often used at the ______ stage.

A) developmental
B) business analysis
C) marketing
D) screening

Question 15

For which type of products are concept tests thought to be less effective in predicting the success of a product?

A) Products that are line extensions (same product category and brand)
B) Products that are not easily classified into existing product categories
C) Products that create new consumption patterns
D) Products that do not require major changes in consumer behavior

Question 16

Which of the following is a goal of brainstorming?

A) To get a group to arrive at a solution within set parameters
B) To get a group to promote a product without varying it
C) To discuss ideas while avoiding criticism of them
D) To have a group criticize an idea until it is acceptable to all

Question 17

Hakimo Corp.,a manufacturer of audio equipment,has developed a unique wireless speaker system that runs on solar power.The speakers can operate for 16 hours after being exposed to the sun for 2 hours.This product,which is radically different from anything available in the market,falls into which category of new products?

A) Repositioned products
B) Revised products
C) Discontinuous innovations
D) New and improved products

Question 18

A source suggested to Rubbermaid the idea of the Sidekick,a litter-free lunch box.Rubbermaid could place some of its plastic containers inside a lunch box and sell the box as an alternative to plastic wrap and paper bags.The source saw this opportunity because of being closer to the consumers than the manufacturer was and,thus,more aware of customer needs.Which of the following was likely the source?

A) The product's distributor
B) The product's competitor
C) Customers
D) A company employee

Question 19

The approach taken in the process of simultaneous product development leads a company to ______.

A) lengthen the development process and incur increased costs
B) shorten the development process and incur increased costs
C) lengthen the development process and incur decreased costs
D) shorten the development process and incur decreased costs

Question 20

A company well-known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market.The company changed its campaign to focus on dietary needs rather than just convenience,thus targeting a segment of consumers looking for healthy diet.This is an example of a ______.

A) new line-extension product
B) discontinuous innovation
C) repositioned product
D) new and improved product

Question 21

Test marketing is very expensive.As a result which of the following is true of some companies?

A) They go for a national introduction than an expensive test market.
B) They do not test market line extensions of well-known brands to save costs.
C) It is better to have a large-scale test market that is decidedly affordable.
D) They mandatorily test market line extensions of well-known brands.

Question 22

Which of the following statements best describes simultaneous product development?

A) It is a strategy that provides general guidelines for generating,screening,and evaluating new-product ideas.
B) It is used to determine the reactions of potential customers in a market situation.
C) It is the process where all the involved areas work together rather than sequentially during a product's development.
D) It is a strategy that links the new-product development process with the objectives of the marketing department,the business unit,and the corporation.

Question 23

Which of the following is an objective of focus group interviews?

A) To stimulate insightful comments through group interaction
B) To directly involve customers in test marketing
C) To reject ideas that are obviously inappropriate for some reason
D) To eliminate ideas that are inconsistent with an organization's new-product strategy

Question 24

When advertising a test product,should test locations in particular markets be isolated from media with a far reach,such as television?

A) No,if media advertising cannot reach outside that particular market,it will fail to project the product's true potential outside the market and thus the product may then appear less successful than it could be.
B) No,if media advertising cannot reach consumers within the market area being tested,it may fail to pull in many consumers from the market and thus the product may then appear less successful than it could be.
C) Yes,if media advertising reaches a very large area outside that market,it may pull in many consumers from outside the market being tested and thus the product may then appear more successful than it really is.
D) Yes,if media advertising persuades consumers in the market area,the product may then appear more successful than it really is.It would be an advertising success,not a product success.

Question 25

At which stage in the new-product development process is the decision to market a product made?

A) Commercialization
B) Test marketing
C) Development
D) Business analysis

Question 26

A new-product strategy links the new-product development process with the objectives of the marketing department,the business unit,and the corporation.

Question 27

Cleanz Inc.,a toiletries manufacturing firm,has launched a new range of organic sanitizing wipes.It wants to test its consumers' reactions to this new product in an economical way.Therefore,Cleanz creates flyers that advertise several of its products along with the new product and send them to a few selected members of the target market.Besides this,it also takes the members to a mock shop and monitors their shopping behavior.In this scenario,Cleanz is using _____.

A) scanner-based research testing
B) simulated market testing
C) virtual test marketing
D) traditional test marketing

Question 28

Steve,a retiree,wants to use his savings to open a day care facility for dogs.After deciding on the services that he would provide to his customers,he calculates costs versus the demand and the profit he could make depending on the volume of sales.After extensive deliberation,Steve decides to take a bank loan because the needed initial investment is too high for opening the facility.Steve is currently in the _____ stage of the new-product development process.

A) commercialization
B) business analysis
C) idea generation
D) test marketing

Question 29

Jenny,the owner of an ice cream parlor,has been experimenting with different flavors to create a new exotic ice cream for her customers.After much deliberation and many tests,she decides to market the new Beet Cake with Black Walnut variant.In this scenario,the chosen ice cream flavor has entered the _____ stage of the new-product development process.

A) business analysis
B) development
C) test marketing
D) commercialization

Question 30

Which of the following is a disadvantage of test marketing?

A) It requires major changes in consumer behavior such as rejecting microwave ovens.
B) It promotes the criticism of an idea,no matter how ridiculous it may seem.
C) It inaccurately predicts the success of a product that creates new consumption patterns.
D) It exposes the new product and its marketing mix to its competitors before its introduction.

Question 31

The final stage in the new-product development process is ______.

A) business analysis
B) development
C) test marketing
D) commercialization

Question 32

Advertising and other promotional materials for a variety of products,including the test product,are shown to members of the product's target market.These people are then taken to shop at a mock or real store,where their purchases are recorded.This is part of the process involved in ______.

A) simulated (laboratory)market testing
B) scanner-based research
C) simultaneous product development
D) customer relationship management

Question 33

Which of the following statements is true of simulated market testing?

A) It is often conducted on prototype models during the development stage.
B) It is a useful tool for implementing simultaneous product development.
C) It is the final stage in the new-product development and marketing process.
D) It is used to monitor shopper behavior to assess a product's likely performance.

Question 34

When considering the new-product development process,which of the following statements is true of screening?

A) It eliminates ideas that are inconsistent with an organization's new-product strategy.
B) It calculates preliminary figures for demand,cost,sales,and profitability.
C) It involves getting consumer reactions to visual representations of a proposed product.
D) It involves making cosmetic or functional changes to existing products.

Question 35

A concept test evaluates an existing product idea,after the creation of a prototype.

Question 36

Besides its high cost,what is the other possible problem that test marketing is likely to face?

A) The actions of competitors countering the test market may contribute to normalizing conditions that the testing firm might expect in the market.
B) The product's success may present a threat to other product extensions recently introduced by the company and thus spread its customers thin.
C) It exposes the new product and its marketing mix to competitors before its introduction.Thus,the element of surprise is lost.
D) Consumers may perceive the sales promotion,pricing,or advertising campaign as overzealous hard sell or even unfair trade practices.

Question 37

In test marketing,the greatest danger is in choosing a test-site city that ______.

A) does not reflect market conditions in the new product's projected market area
B) is unique in being representative of the entire city,although it is unlike neighboring cities
C) does not respond quickly to changing trends and is highly entrenched in its cultural ways
D) has a racial mix and thus has more diversity than other cities in the projected market area

Question 38

Which of the following is an advantage of simultaneous product development?

A) It shortens the development process and reduces costs.
B) It eliminates the need for conducting laboratory tests on product prototypes.
C) It ensures that product development occurs in highly structured stages.
D) It eliminates the need for test marketing a new product.

Question 39

Which of the following statements is true of the development stage of the new-product development process?

A) Costs decrease dramatically once a product idea enters the development stage.
B) The development stage involves evaluating a new-product idea before creating a prototype.
C) Simultaneous product development increases the time spent in the development process.
D) The development stage involves examining the feasibility of manufacturing a product at an acceptable cost.

Question 40

A mobile telephone manufacturer markets a limited edition cell phone model with 126 different functions.The campaign failed across all 50 states in the United States.Which of the following is the most likely reason?

A) The mobile simply wouldn't offer any discernible benefit compared to existing products.
B) There was a good match between product and customer desires to have a simple phone.
C) The market size was overestimated and thus the manufacturer overproduced.
D) The price was little high and the initial distribution covered a small geographical area.

Question 41

Absolute failure of a new product occurs when it returns a profit but fails to achieve its sales goals,profit goals,or market share goals.

Question 42

In comparison to early adopters,which of the following statements is true of the early majority?

A) They are more likely to be opinion leaders.
B) They are less likely to extend the adoption process.
C) They are self-confident,and they rely less on group norms.
D) They are likely to collect more information and evaluate more brands.

Question 43

Which of the following is the most important factor in successful new-product introduction?

A) The features of the new product should be similar to its substitutes in the market.
B) The product should not be developed using crowdsourcing.
C) The new product should be priced lower than the other products in the same category.
D) The new product should deliver a meaningful and perceivable benefit to a sizable number of people.

Question 44

Which of the following is characteristic of both early adopters and the early majority?

A) Both groups tend to be opinion leaders.
B) Both rely on group norms and values.
C) Both desire to earn the respect of others.
D) Both are influenced by social media websites and digital promotions.

Question 45

Which is true of the influencers found among early adopters?

A) They come from higher-income groups and are mostly in their 30s.
B) They use media differently than other users who are considered followers.
C) They are distinguished not by demographics but by behavior.
D) They are not focused on earning the respect of others.

Question 46

Which of the following is a characteristic shared by both early majority and the late majority?

A) Both tend to have opinion leaders within their groups.
B) Both rely on science and experts for information.
C) Both depend on word-of-mouth communication.
D) Both are primarily influenced by the mass media.

Question 47

How does a multinational corporation meet the needs of the global market?

Question 48

A relative product failure results when a new product returns a profit but fails to achieve its goals for sales,profit,or market share.

Question 49

It is during the product development stage that one asks questions such as: Would current customers benefit from the product? What new facilities,if any,would be needed? How might competitors respond? What is the risk of failure? Is the company willing to take the risk?

Question 50

A process called 3D printing,or additive manufacturing,is sometimes used to create three-dimensional prototypes quickly and at a relatively low cost.

Question 51

How can the Internet be used to help implement simultaneous product development?

Question 52

Compared to innovators,early adopters ______.

A) rely less on group norms and values
B) are less oriented to the local community
C) are more likely to be opinion leaders
D) have weaker affiliations with groups

Question 53

When Clayton Specialties enters the simultaneous product development phase for its new engine,it will have its R&D department and marketing work sequentially on the product.

Question 54

A firm that starts with a global strategy is better able to develop products that are marketable worldwide.

Question 55

Which of the following is a characteristic of products produced by multinational corporations?

A) Products are developed for global distribution and then tweaked to meet unique market requirements whenever possible.
B) A firm that starts with a local strategy is better able to develop global products.
C) Products are inadequately distributed in local markets.
D) Test marketing is not required for products developed by multinational firms.

Question 56

Roger,an affluent college graduate,buys gadgets on the day of their launch in the market.He reads expert reviews on the Internet,and is not influenced by the opinions of his family and friends while choosing products.Roger is most likely to belong to the category of _____ in the context of diffusion of innovation.

A) the late majority
B) innovators
C) the early majority
D) early adopters

Question 57

Concept tests are considered relatively precise predictors of success for new products that are not copycat items,are not easily classified into existing product categories,and do not require major changes in consumer behavior.

Question 58

Explain the difference between absolute and relative product failure.Discuss the reasons why a large proportion of new product introductions fail.

Question 59

Innovators are eager to try new ideas and products,almost as an obsession.Which of the following is true of them?

A) They are the first 12.5% of all those who adopt a product.
B) They have higher incomes and are more self-confident.
C) They are less worldly,more introverted,and less sociable than noninnovators.
D) They have higher incomes and rely more on group norms.

Question 60

At the product development stage,it is premature to explore the feasibility of manufacturing the product at an acceptable cost.

Question 61

Marketers typically pay little or no attention to directing their advertising or personal selling toward laggards.

Question 62

Which of the following describes laggards?

A) They have the shortest adoption time and the lowest socioeconomic status.
B) They have the longest adoption time and the highest socioeconomic status.
C) They have the longest adoption time and the lowest socioeconomic status.
D) They have the shortest adoption time and the highest socioeconomic status.

Question 63

When predicting or explaining the rate of acceptance and diffusion of a new product,the degree to which it can be sampled on a limited basis is its ______.

A) compatibility
B) trialability
C) observability
D) complexity

Question 64

It really does not matter whether the product is "new to the world" or some other category of new product.If it is new to a potential adopter,it is an innovation in this context.

Question 65

Identify a similarity between laggards and innovators.

A) Neither relies on group norms.
B) Neither is rooted in tradition.
C) Both are eager to try new products.
D) Both exhibit short adoption time.

Question 66

Which is a key characteristic of those in the early majority who purchase a new product?

A) They do not spend much time weighing the pros and cons of adopting a new product.
B) They are likely to collect less information and evaluate fewer brands than early adopters.
C) They rely on the group for information but are unlikely to be opinion leaders themselves.
D) They tend to be opinion leaders themselves,rather than their friends and neighbors.

Question 67

Steven,a construction worker,tends to buy a new gadget if most of his friends have them and only after they've teased him about not having the gadget yet.He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions.It can be inferred that when it comes to the diffusion of innovation,Steven belongs to the group of _____.

A) early adopters
B) innovators
C) late majority
D) early majority

Question 68

When considering a product's characteristics and the rate of adoption,complexity refers to the degree to which a new product is ______.

A) difficulty to understand and use the new product
B) consistent with existing values
C) perceived as superior to existing substitutes
D) available to be tried on a limited basis

Question 69

Both demographics and behavior distinguish early adopters.

Question 70

Innovators are the first 2.5% of all those who adopt a new product.Early adopters are the next 13.5% to adopt the product.

Question 71

Explain the differences between innovators and early adopters.

Question 72

Which of the following products has the highest trialability?

A) An airline
B) A condominium
C) A toothpaste
D) An investment app

Question 73

Jason bought his first color television set after flat screen televisions were already widely diffused.He is most likely to be one among the ______.

A) early adopters
B) early majority
C) late majority
D) laggards

Question 74

Comparably speaking,which of the following would have the highest observability in terms of its rate of acceptance and diffusion?

A) A new line of trousers
B) A musical instrument
C) A medicinal tea
D) A social media app

Question 75

When predicting or explaining a new the rate of adoption and diffusion of a new product,relative advantage refers to the degree to which that product is ______.

A) free of difficulty relating to its usage
B) consistent with existing values
C) perceived as superior to existing substitutes
D) available to be tried on a limited basis

Question 76

In the context of diffusion of innovation,the dominant value of laggards is _____.

A) skepticism
B) deliberateness
C) adventure
D) tradition

Question 77

Which of the following describes the late majority?

A) They adopt a new product because most of their friends have already adopted it.
B) They do not rely on group norms and their adoption is free from pressure to conform.
C) They tend to be younger and above average in income as well as education.
D) They depend mainly on mass media rather than on word-of-mouth communication.

Question 78

When considering the diffusion of innovation,which group is least motivated by advertising or personal selling?

A) Laggards
B) Innovators
C) The late majority
D) The early majority

Question 79

Which statement is true of opinion leaders?

A) They most likely belong to the late majority category of adopters.
B) They speed up the diffusion process through word-of-mouth communication.
C) They are distinguished by demographics.
D) They have the longest adoption time and the lowest socioeconomic status.

Question 80

When considering the diffusion of innovation regarding new products,a dominant characteristic of innovators is tradition.