Question 1

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.
A) business transformation
B) test marketing
C) business analysis
D) business process reengineering
E) concept testing

Accepted Answer

The business analysis stage is where managers evaluate the business attractiveness of the proposed product concept and marketing strategy. They consider factors such as projected sales, costs, profits, and competition to determine if the product is financially viable.

Question 2

Which of the following stages in the new-product development would a firm engage itself in immediately after the completion of concept testing?
A) idea screening
B) marketing strategy development
C) business analysis
D) product development
E) idea generation

Accepted Answer

After concept testing, the next stage is marketing strategy development, where the firm outlines the target market, planned product positioning, sales, market share, and profit goals for the first few years.

Question 3

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.
A) idea
B) displacement
C) image
D) activation
E) placement

Accepted Answer

The firm's concern with how consumers will perceive the new product indicates a focus on the product's image. The other options are not relevant to this scenario - "idea" refers to the initial concept, "displacement" refers to a change in consumer behavior, "activation" refers to the process of making a product available for purchase, and "placement" refers to where the product is located in a store or in advertising.

Question 4

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.
A) business feasibility plan
B) marketing strategy development
C) business analysis
D) product acceptance
E) business proposal

Accepted Answer

A business analysis is specifically designed to review sales, costs, and profit projections for a new product in order to determine if they align with the objectives of the company. A business feasibility plan and marketing strategy development may be components of a business analysis, but alone do not fully address the requirements of the question. Product acceptance and business proposal are not accurate descriptions of this type of analysis.

Question 5

Which stage of new-product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?
A) concept testing
B) marketing strategy development
C) business analysis
D) product development
E) test marketing

Accepted Answer

The business analysis stage requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product. This includes analyzing the potential market size, competition, and expected costs and profits.

Question 6

In the ________ stage of the new-product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.
A) product design
B) idea generation
C) concept development and testing
D) product development
E) product activation

Accepted Answer

The product development stage involves creating and testing prototypes, conducting market research, and making sure the product is safe and effective before it is launched. It is the stage where products undergo rigorous testing to ensure that they meet consumer needs and perform as intended.

Question 7

An attractive product idea must be developed into a ________.
A) concept alternative
B) product concept
C) brand personality
D) brand placement
E) product strategy

Accepted Answer

An attractive product idea must be developed into a product concept. This is the initial step in the product development process where the basic idea is converted into a product concept. A product concept is a detailed version of the idea stated in a meaningful consumer-oriented manner that provides a better understanding of the features, benefits, and advantages of the product. It is a blueprint or a design that shows the characteristics and attributes of the product.

Question 8

Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.
A) conduct surveys of competitors
B) exclusively consider the government's opinions
C) consider the sales history of similar products
D) apply the PLC concept to industry sales
E) opt for business process reengineering

Accepted Answer

To estimate sales of newly developed apps, Neutron Inc. should consider the sales history of similar products. This can provide insights into market demand and consumer behavior, allowing the company to make informed decisions about which apps to release. Conducting surveys of competitors or relying on the government's opinions may not provide an accurate picture of market demand or consumer behavior. Applying the PLC concept to industry sales or opting for business process reengineering may be useful in other aspects of business analysis, but are not directly related to estimating app sales.

Question 9

What is included in the first part of a marketing strategy statement?
A) distribution strategy
B) product longevity
C) long-run sales goals
D) promotional mixes
E) target market description

Accepted Answer

The first part of a marketing strategy statement typically includes a description of the target market, which may include factors such as demographics, geographic location, and psychographics. This helps the marketer to better understand and segment their audience, which in turn informs decisions about product development, distribution, promotion, and pricing. The other answer choices may be components of a marketing strategy statement, but they would typically be included in later sections.

Question 10

Which of the following is included in the third part of the marketing strategy statement?
A) the planned value proposition
B) distribution strategy
C) the product's planned price
D) marketing budget
E) the planned long-run sales

Accepted Answer

The third part of the marketing strategy statement typically includes the planned long-run sales. This refers to the company's goals for the product's sales over a longer period of time, beyond the initial launch phase. A, B, C, and D are all elements typically included in other parts of the marketing strategy statement.

Question 11

Which of the following is included in the second part of the marketing strategy statement?
A) advertising tagline
B) promotional mix
C) planned price
D) customer segmentation
E) operational excellence

Accepted Answer

The answer of Which of the following is included in...

Question 12

Which of the following groups do marketers involve for the process of concept testing new products?
A) suppliers
B) employees
C) target consumers
D) manufacturers
E) competitors

Accepted Answer

Concept testing involves gathering feedback from target consumers to determine their potential interest in a new product. While suppliers, employees, manufacturers, and competitors may provide valuable insights, their input is not typically used in the concept testing phase.

Question 13

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.
A) test marketing
B) focus group surveys
C) commercialization
D) concept testing
E) business analysis

Accepted Answer

The answer of Once the prototype of Wainwright Industries' new...

Question 14

Which of the following statements is true of the new-product development process?
A) The purpose of the idea screening stage is to create a large number of ideas.
B) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.
C) A product concept is the way consumers perceive an actual or potential product.
D) The concept testing stage is the stage at which the product and its proposed marketing program are introduced into realistic market settings.
E) Commercialization is the process of inviting broad communities of people such as customers, employees, and scientists into the new-product innovation process.

Accepted Answer

Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage. This is the correct statement about the new-product development process. Option A is incorrect as the purpose of the idea screening stage is to eliminate weak, unfeasible, or unprofitable ideas. Option C is incorrect as a product concept is a detailed version of the idea stated in meaningful consumer terms. Option D is incorrect as concept testing is done before creating the product and is aimed at testing the viability of the idea. Option E is incorrect as commercialization is the process of introducing the product to the market after testing and making necessary modifications.

Question 15

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.
A) prototype
B) component part
C) synergistic model
D) product image
E) product idea

Accepted Answer

A crude pair of goggles developed to show prospective customers is known as a prototype.

Question 16

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.
A) why many companies engage in crowdsourcing
B) one of the problems associated with test marketing
C) why prototypes are so important
D) how idea screening can make a product a commercial success
E) the importance of different sources for idea generation

Accepted Answer

This situation demonstrates the problem with test marketing, where competitors may rush to market with their own similar product before the original product gains significant market share.

Question 17

A ________ is the way consumers perceive an actual or potential product.
A) product idea
B) product concept
C) product image
D) brand personality
E) concept test

Accepted Answer

Product image refers to the way consumers perceive an actual or potential product. A product idea is a thought or suggestion as to a possible product. A product concept is a detailed version of a product idea where the company defines the benefit of the product to customers, the target market, and key feature and attributes. Brand personality refers to the set of human characteristics associated with a brand. Concept test is a small-scale product trial to determine if the target market will accept the product.

Question 18

Which of the following stages of the new-product development process occurs immediately after the completion of the business analysis for the product or service?
A) idea screening
B) product development
C) product activation
D) marketing strategy development
E) product design

Accepted Answer

The next stage after the completion of the business analysis is the product development stage. In this stage, the product concept is further developed into a tangible product or service, including creating a prototype or testing various versions to determine the most effective design.

Question 19

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?
A) controlled test markets
B) simulated test markets
C) standard test markets
D) ambush marketing
E) affinity marketing

Accepted Answer

The answer of Yummy Peanut Butter created a new coconut-flavored...

Question 20

Which of the following statements best explains why idea screening may be the most important step of new-product development?
A) It increases the number of ideas generated.
B) It provides an opportunity for the marketer to test the prototype in a simulated market.
C) It helps forecast the products' sales and profits accurately for a specific period.
D) It gives research and development team members an opportunity to gather consumer feedback.
E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

Accepted Answer

Idea screening is important because it helps the company save money in product development costs by going ahead with only the product ideas that are likely to be profitable. This is because idea screening allows companies to assess the feasibility of potential products and evaluate whether they are worth investing in before committing resources to their development. By narrowing down the number of ideas to those that have the most potential for success, companies can focus their efforts and resources on developing products that are more likely to be successful in the market.

Quiz 9: New-Product Development and Product Life Cycle Strategies

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.

Which of the following stages in the new-product development would a firm engage itself in immediately after the completion of concept testing?

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

Which stage of new-product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?

In the ________ stage of the new-product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

An attractive product idea must be developed into a ________.

Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.

What is included in the first part of a marketing strategy statement?

Which of the following is included in the third part of the marketing strategy statement?

Which of the following is included in the second part of the marketing strategy statement?

Which of the following groups do marketers involve for the process of concept testing new products?

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

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

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.

A ________ is the way consumers perceive an actual or potential product.

Which of the following stages of the new-product development process occurs immediately after the completion of the business analysis for the product or service?

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?

Which of the following statements best explains why idea screening may be the most important step of new-product development?