Question 1

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) concept test
C) product concept
D) product image
E) product idea

Accepted Answer

The description given of the goggles matches the definition of a prototype, which is a preliminary model of a product used for testing and development purposes. A concept test is a form of market research used to gather feedback on a product concept. A product concept is the initial idea for a product, while a product image refers to the overall perception and reputation of a product. A product idea is a general concept or notion for a product, before it is fully developed.

Question 2

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, which is a detailed version of the idea stated in meaningful consumer terms. This includes the product's intended benefits, target market, and competitive positioning. A product concept serves as a foundation for developing a product strategy, which outlines the actions needed to bring the product to market. However, concept alternatives, brand personality, and brand placement are all important considerations throughout the product development process.

Question 3

Which of the following stages in the new product development would a firm engage 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

The answer of Which of the following stages in the...

Question 4

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, Neutron Inc. should consider the sales history of similar products. This will provide valuable insights into how the market reacts to similar products and how successful they have been in the past. Surveying competitors, exclusively considering the government's opinions or applying the PLC concept to industry sales may also be useful, but are not as directly relevant to estimating sales. Business process reengineering is not relevant to this particular task.

Question 5

Which of the following would most likely be included in an executive's write up of a new product idea to be presented to a new product committee?
A) the proposed customer value proposition
B) the product image
C) the marketing strategy
D) the business analysis
E) the pricing strategy

Accepted Answer

The answer of Which of the following would most likely...

Question 6

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

A product image is the mental picture that consumers have of a product, which is shaped by advertising, company reputation, and the features and benefits of the product itself. Product ideas refer to suggestions for potential new products, product concepts are more detailed descriptions of a product's features and benefits, brand personality relates to the set of human characteristics associated with a particular brand, and concept tests are research studies conducted to evaluate consumers' reactions to potential new products or marketing campaigns.

Question 7

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 the profitability of the product proposal is evaluated, taking into account factors such as production costs, pricing, and potential sales volume. This step helps to decide whether or not to move forward with the development of the new product.

Question 8

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

Marketers involve target consumers in the process of concept testing new products to gather feedback and insights about the product's potential success in the market. This helps in identifying and addressing any issues or concerns before launching the product. Suppliers, employees, manufacturers, and competitors may be involved in other stages of product development and marketing, but not typically in concept testing.

Question 9

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 product development stage occurs immediately after the completion of the business analysis. In this stage, the product concept is transformed into a tangible product or service. Therefore, choice B is the best answer.

Question 10

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 feasibility plan includes a broader assessment of whether a business idea is feasible, not just a specific product. Marketing strategy development focuses on how to market and promote the product, not its sales, costs, and profit projections. Product acceptance refers to whether customers like and purchase the product, not its financial projections. A business proposal is a document that outlines a proposed business idea or project, not a review of sales, costs, and profit projections. Therefore, the best choice is C, business analysis, as it specifically addresses the review of financial projections to determine if they align with a company's objectives.

Question 11

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 should always include a description of the target market. This helps to ensure that all subsequent marketing efforts are focused on reaching and resonating with the intended consumer audience. The other options listed may be included in a marketing strategy statement, but they would typically come later in the document.

Question 12

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 13

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

The statement "Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage" is true. The purpose of the idea screening stage is to eliminate weaker ideas, a product concept is the way the company perceives the product, the concept testing stage comes before the realistic market setting, and commercialization is the process of bringing the new product to market.

Question 14

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 about how consumers will perceive the new product relates to its image. The image refers to the overall impression that consumers have of the product, including its appearance, quality, and other characteristics that influence their attitudes and behaviors towards it.

Question 15

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 analysis allows for the evaluation of the product's potential profitability and return on investment.

Question 16

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 17

A product idea is ________.
A) the way consumers perceive an actual or potential product
B) the knowledge and awareness of a product among consumers
C) a possible product that the company can see itself offering to the market
D) a detailed version of the new product idea stated in meaningful consumer terms
E) the testing of new product concepts with groups of target consumers

Accepted Answer

A product idea is a possible product that the company can see itself offering to the market. It is a concept or a vision of a potential product that can satisfy the needs and wants of the target market. It is not the way consumers perceive a product, the knowledge and awareness of a product, a detailed version of the new product idea or the testing of new product concepts with groups of target consumers.

Question 18

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 by identifying and prioritizing the most profitable product ideas to pursue. By screening out ideas that are unlikely to be successful, the company can avoid investing resources in developing and launching products that are unlikely to generate profits.

Question 19

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 rigorous testing to ensure that the product is safe, effective and valuable to consumers. This stage involves creating prototypes and testing them to make necessary changes before the product is launched.

Question 20

A detailed version of a new idea stated in meaningful customer terms is called a product ________.
A) solution
B) concept
C) image
D) proposal
E) lining

Accepted Answer

A product concept is a detailed version of a new idea stated in meaningful customer terms. It outlines the proposed product's features, benefits, target market, and unique selling proposition. It helps to clearly articulate the idea and its potential appeal to customers.

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

An attractive product idea must be developed into a ________.

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

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 ________.

Which of the following would most likely be included in an executive's write up of a new product idea to be presented to a new product committee?

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

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

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 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 ________.

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

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

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

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 ________.

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?

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

A product idea is ________.

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

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 detailed version of a new idea stated in meaningful customer terms is called a product ________.