Question 1

List the four methods of consumer-product testing and give an indication of their relative costliness.

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Question 2

After management develops the product concept and marketing strategy,it can evaluate the proposal's business attractiveness.Management needs to prepare sales,costs,and profit potentials.The first step is to estimate total sales.Describe what is included in estimating total sales.

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Question 3

In an economy of change,continuous innovation is necessary.Most companies rarely innovate,some innovate occasionally,and a few innovate continuously.Comment on why a company should continuously develop new products.

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Question 4

Differentiate between incremental innovation and the creation of disruptive technologies.What kind of companies focus on each and what impact does each have on the marketplace?

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Question 5

Following a successful concept test,the new-product manger will develop a preliminary strategy plan for introducing the new product into the market.This plan consists of three parts.List and briefly describe the elements contained in these three parts.

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Question 6

"Our product is a powdered mixture that is added to milk to make an instant breakfast that gives the person all the needed nutrition along with good taste and high convenience.The product would be offered in three flavors and would come in individual packets,six to a box,at $2.49 a box." This is an example of ________.

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Question 7

Sony used to enjoy a three-year lead on new products.Today,Matsushita will copy the product within six months,leaving very little time for Sony to recoup its initial investments.This is an example of ________,one of the factors hindering new-product development.

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Shorter product life cycles refer to the decreasing time period between the introduction and decline of a product in the market. This is a hindrance to new product development because companies have less time to recoup their initial investments before the product becomes outdated. In this scenario, Matsushita can copy Sony's product within six months, meaning Sony's product may already be outdated by the time it hits the market.

Question 8

When the major car companies added drink holders to the design of their cars,they were practicing ________,where the firm attaches high importance to incorporating customer preferences in the final designs.

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Customer-driven engineering is the practice of incorporating customer preferences into the final design of a product. The addition of drink holders to cars is an example of this practice.

Question 9

Customer needs and wants are the logical place to start the search for new product ideas.Identify four ways a company can draw new ideas from its customers.

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Question 10

Your firm has a new-product concept that seems to be a sure winner.You have estimated that the cost of development is $1 million,which the company does not have.As a result,this sure winner does not get out of the idea stage.This is an example of ________,which is one of the factors hindering new-product development.

Accepted Answer

The scenario describes a situation where the cost of development is hindering the new-product development process. The company does not have the required $1 million, which is an example of a capital shortage. Option E is the correct answer.

Question 11

When the USB memory stick was introduced,it destroyed demand for floppy disks due to its vastly superior storage capacity,cheaper price per unit of storage capacity,and more convenient size,shape,and usage.This was an example of ________.

Accepted Answer

The introduction of USB memory stick disrupted the market for floppy disks, which had been the dominant technology for portable data storage at the time. USB memory stick had superior storage capacity, cheaper price per unit, and more convenient usage compared to floppy disks. This is a classic example of disruptive technology.

Question 12

Mountain bikes developed as a result of youngsters taking their bikes up to the top of a mountain and riding down.When the bikes broke,the youngsters began building more durable bikes and adding things such as motorcycle brakes,improved suspension,and accessories.These youngsters would be considered ________.

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Lead users are a group of users who experience needs before the rest of the market and as a result, they innovate and develop new products to meet their needs. In this case, the youngsters who were taking their bikes up to mountains and riding down experienced the need for more durable bikes and improved suspension, and as a result, they innovated and developed the mountain bike.

Question 13

You have been asked to participate in an idea-generating session.The moderator gives you the following directions: "List the attributes of the object in front of you (a cup),now modify each attribute by replacing each attribute with another." You are participating in what kind of creativity techniques?

Accepted Answer

This is an Attribute listing technique where the attributes of the object are listed and then modified by replacing each attribute with another.

Question 14

When Scott Paper couldn't compete with Fort Howard Paper Co.on price for the lucrative institutional toilet tissue market,it decided to differentiate by making larger rolls of paper and providing institutional customers with free dispensers.This is an example of ________.

Accepted Answer

This is an example of incremental innovation, where the company made small improvements to their product and marketing strategy in order to differentiate from their competitors.

Question 15

The consumer-adoption process focuses on the mental process through which an individual passes from first hearing about an innovation to final adoption or use of the product/service.Adopters of new products have been observed to move through five distinct stages.List and define these stages.

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Question 16

The new-product development process starts with the search for ideas.New-product ideas can come from interacting with various groups and using creativity-generating techniques.Identify and define these techniques.

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Question 17

Describe concept testing as it is used to manage the development process.

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Question 18

When Tide introduces a new fragrance of laundry detergent,some consumers who buy the new fragrance switch from other Tide variants,as opposed to from other brands.The income lost on the other Tide variants is called ________.

Accepted Answer

The income lost on other Tide variants due to the introduction of a new fragrance is called cannibalized income. This is because the new fragrance is essentially "eating into" the sales of other Tide variants, rather than bringing in incremental income from new customers or increasing sales overall.

Question 19

Combining two product ideas or concepts to create a new offering,for example,oil change/lubrication facilities with cafés,is an example of ________.

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Question 20

When the new-product prototype is ready,it must be put through rigorous functional tests and customer tests.Consumer testing can take several forms,from bringing consumers into a laboratory to giving them samples to use in their homes.Consumer preferences can be measured in several ways.List the three most common ways that consumer preference is measured.

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Quiz 20: Introducing New Market Offerings