Question 1

Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line.A friend suggested combining spices from India with tea.In the __________ stage of the new-product process,the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well.
A)idea generation
B)screening and evaluation
C)business analysis
D)market testing
E)commercialization

Accepted Answer

Market testing involves distributing the new product to a small, representative group of potential consumers to see if they would actually buy it. In this case, Nicole is distributing the spice and tea mixtures to grocery stores in Portland and Seattle to test their marketability.

Question 2

Sara Burns is the owner of a company called TropicalSpice and was looking for a new product to go with her company's line of food condiments when a friend suggested combining spices from India with tea.In the __________ stage of the new-product process,the spices and tea mixtures were exposed to prospective consumers under realistic purchase conditions.
A)idea generation
B)screening and evaluation
C)business analysis
D)market testing
E)commercialization

Accepted Answer

Market testing involves exposing the new product to prospective consumers under realistic purchase conditions to measure consumer reactions and potential sales. This is the stage where Sara Burns would have tested the spices and tea mixture with consumers to see if it would be a viable addition to her product line.

Question 3

The most expensive stage in the new-product process for most products and services is
A)commercialization.
B)screening and evaluation.
C)business analysis.
D)development.
E)market testing.

Accepted Answer

Commercialization is the most expensive stage in the new-product process because it involves the full-scale launch and marketing of the new product, including production, distribution, advertising, and sales efforts. This stage requires a significant financial investment and carries high risks, as the success of the product in the market is uncertain. The other stages, such as screening and evaluation, business analysis, development, and market testing, also require resources but are generally less costly than commercialization.

Question 4

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country.This payment is an example of a
A)product placement fee.
B)bribe.
C)product support fee.
D)slotting fee.
E)shelf space allowance.

Accepted Answer

This payment is an example of a slotting fee, which is a fee charged by retailers to suppliers in exchange for stocking their products. The fee serves as a way for retailers to offset the costs associated with introducing new products while giving suppliers access to valuable shelf space.

Question 5

Audiences are allowed to preview actual movies (a "sneak preview")such as The Avengers and The Hunger Games so that changes might be made before they are released to the general public during which stage of the new-product process?
A)market testing
B)business analysis
C)commercialization
D)screening and evaluation
E)concept testing

Accepted Answer

Market testing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. Sneak previews are a form of market testing to gather audience reactions and make necessary changes before the official release.

Question 6

Simulated test markets (STMs)are often run in shopping malls where consumers are
A)asked how much a person is willing to pay for an unfamiliar item.
B)asked whether they saw the firm's advertising campaign.
C)questioned about how often they are likely to shop in that particular location.
D)asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product.
E)questioned to identify who uses the product class being tested.

Accepted Answer

The answer of Simulated test markets (STMs)are often run in...

Question 7

Which of the following statements about test marketing is most accurate?
A)Test marketing is especially important for new services.
B)Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results.
C)Test marketing is better suited to relatively inexpensive new consumer goods than for new services.
D)Test marketing is especially important for new,expensive industrial products.
E)Standard test markets are the least expensive and fastest type.

Accepted Answer

Test marketing is a technique used to gather information about the potential effectiveness of a marketing strategy. It involves introducing a product or service to a limited audience in a geographic area for a specific period of time to test factors such as consumer demand, pricing, distribution, and advertising effectiveness. Test marketing is typically used for relatively inexpensive new consumer goods as it can be costly and time-consuming.

Question 8

Marketers pay slotting fees to grocers in payment for space-or slots-on their retail shelves.Such slotting fees significantly increase the cost of which stage of the new-product process?
A)business analysis
B)market testing
C)screening and evaluation
D)commercialization
E)business analysis.

Accepted Answer

Slotting fees are paid to grocers in exchange for shelf space during the commercialization stage of the new-product process.

Question 9

Introducing new-products sequentially into geographic areas of the U.S.to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as
A)limited rollouts.
B)phased rollouts.
C)market-product expansion.
D)regional rollouts.
E)phased commercialization.

Accepted Answer

Key term definition-regional rollouts.

Question 10

The stage of the new-product process that positions and launches a new product in full-scale production and sales refers to __________.
A)marketing program execution
B)disbursement
C)launch
D)commercialization
E)final distribution

Accepted Answer

Commercialization is the stage of the new-product process that involves positioning and launching a new product into full-scale production and sales. It includes marketing activities and distribution of the product to the target audience.

Question 11

A new beverage by Snapple is currently being sold only in the western United States.Over the next year,Snapple plans to introduce the beverage into areas in the Midwest,and then the eastern U.S.This distribution strategy during commercialization is referred to as a
A)limited rollout.
B)phased rollout.
C)regional rollout.
D)market-product expansion.
E)phased commercialization.

Accepted Answer

The answer of A new beverage by Snapple is currently...

Question 12

Commercialization is the stage in the new-product process
A)at which the product is positioned and launched in full-scale production and sales.
B)during which the firm performs its final evaluations of the new-product.
C)when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard.
D)when advertising campaigns are evaluated using Starch scores to identify brand awareness.
E)at which the product generates the greatest sales and profits.

Accepted Answer

Commercialization is the final stage in the new-product process where the product is positioned and launched in full-scale production and sales. It involves all necessary activities to bring the product to the market, including manufacturing, distribution, promotion, and pricing. This stage is critical as it determines the commercial success of the product by generating sales and profits. Therefore, the best choice is A.

Question 13

If a firm hired SymphonyIRIGroup's BehaviorScan service to track sales of a new product made to a panel of consumers and assess the effectiveness of advertising and other promotion tactics,what type of test market is this?
A)laboratory test market
B)concept test market
C)simulated test market
D)controlled test market
E)standard test market

Accepted Answer

The answer of If a firm hired SymphonyIRIGroup's BehaviorScan service...

Question 14

Test marketing involves offering a product for sale
A)to random sample of people in the top ten major cities of the U.S.
B)in as broad a geographic region as possible.
C)to consumers that are representative of the target market.
D)on a limited basis in a defined area.
E)only on certain days of the week and hours of the day.

Accepted Answer

Test marketing involves offering a product for sale on a limited basis in a defined area to gauge customer response before launching it on a larger scale. This helps the company evaluate the product's potential success and make any necessary modifications before rolling it out to a larger market.

Question 15

A slotting fee is a payment that a
A)wholesaler makes to place a new product on a retailer's shelf.
B)manufacturer makes to have a wholesaler distribute a new product to retailers.
C)manufacturer makes to place a new product on a retailer's shelf.
D)manufacturer makes to a wholesaler as compensation for warehousing inventory.
E)manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.

Accepted Answer

A slotting fee is a payment made by a manufacturer to a retailer to place a new product on their shelf.

Question 16

Which of the products listed below would be the best candidate for full-scale market testing?
A)totally free checking account from Bank One
B)household frequent flyer program from Delta Airlines
C)mid-priced luxury sedan made in America by Mazda
D)new iced coffee beverage from Starbucks
E)slimmer iMac computer

Accepted Answer

The new iced coffee beverage from Starbucks would be the best candidate for full-scale market testing because it is a new product that has not been tested in the market before and Starbucks has a strong brand presence and customer base to support the testing. Additionally, the coffee market is large and growing, providing ample opportunity for success with a new product.

Question 17

All of the following are examples of test markets EXCEPT: A)controlled test market B)concept test market C)simulated test market D)laboratory test market E)standard test market

Accepted Answer

All of the other options (controlled, simulated, laboratory, and standard) are examples of types of test markets, while concept test market is not a type of test market, but rather a tool used in market research to gauge consumer interest in a new product or idea.

Question 18

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers.This was done on a limited scale to determine consumer reactions before national distribution of the product.Breyer's new product was in the __________ stage of the new-product process.
A)commercialization
B)screening and evaluation
C)business analysis
D)development
E)market testing

Accepted Answer

Breyer's new product was undergoing market testing, which is the stage where a limited sample of the target market is offered the product to determine their reactions before launching the product nationwide.

Question 19

Commercialization refers to
A)the point at which a new product has diffused throughout the marketplace.
B)the introduction of an offering to sequential geographic areas of the U.S.
C)exposing actual products to prospective consumers under realistic purchase conditions.
D)the stage of the new-product process that positions and launches a new product in full-scale production and sales.
E)the point where new-product concepts are transformed into prototypes.

Accepted Answer

Commercialization is the final stage of the new-product process that involves positioning and launching a new product in the marketplace in full-scale production and sales. It involves exposing actual products to prospective consumers under realistic purchase conditions. Therefore, Option D is the correct answer.

Question 20

Because of the time,cost,and confidentiality problems of test markets,consumer packaged goods firms often turn to __________,a technique that replicates a full-scale test market to a limited degree.
A)partial rollouts
B)screening and evaluation
C)virtual reality testing
D)time-to-market measures
E)simulated test markets

Accepted Answer

Simulated test markets are a technique that replicates a full-scale test market to a limited degree, providing a cost-effective and efficient alternative to traditional test markets. This allows consumer packaged goods firms to gather feedback and data on their product's potential success without the time, cost, and confidentiality problems associated with traditional test markets.

Quiz 9: Developing New Products and Services

The most expensive stage in the new-product process for most products and services is

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country.This payment is an example of a

Audiences are allowed to preview actual movies (a "sneak preview") such as The Avengers and The Hunger Games so that changes might be made before they are released to the general public during which stage of the new-product process?

Simulated test markets (STMs) are often run in shopping malls where consumers are

Which of the following statements about test marketing is most accurate?

Marketers pay slotting fees to grocers in payment for space-or slots-on their retail shelves.Such slotting fees significantly increase the cost of which stage of the new-product process?

Introducing new-products sequentially into geographic areas of the U.S.to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as

The stage of the new-product process that positions and launches a new product in full-scale production and sales refers to __________.

A new beverage by Snapple is currently being sold only in the western United States.Over the next year,Snapple plans to introduce the beverage into areas in the Midwest,and then the eastern U.S.This distribution strategy during commercialization is referred to as a

Commercialization is the stage in the new-product process

If a firm hired SymphonyIRIGroup's BehaviorScan service to track sales of a new product made to a panel of consumers and assess the effectiveness of advertising and other promotion tactics,what type of test market is this?

Test marketing involves offering a product for sale

A slotting fee is a payment that a

Which of the products listed below would be the best candidate for full-scale market testing?

All of the following are examples of test markets EXCEPT:

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers.This was done on a limited scale to determine consumer reactions before national distribution of the product.Breyer's new product was in the __________ stage of the new-product process.

Commercialization refers to

Because of the time,cost,and confidentiality problems of test markets,consumer packaged goods firms often turn to __________,a technique that replicates a full-scale test market to a limited degree.