Question 1

If a few of Quality Water Systems Inc. customers are asked to try out a new water filter that has not yet been released on the market, this is an example of
A)beta testing.
B)market testing.
C)premarket tests.
D)test marketing.
E)concept testing.

Accepted Answer

Beta testing involves real users trying out a product (in this case, a new water filter) before it is officially launched to identify any issues or gather feedback for improvements.

Question 2

Jacob sells commercial-grade kitchen equipment to major hotel chains and restaurants. Whenever he visits his customers, he looks to see if they are using the equipment for other tasks or have modified the equipment for some other purpose. These customers are examples of ________, who can provide ideas for new and improved products.
A)laggards
B)market testers
C)lead users
D)reverse engineers
E)concept testers

Accepted Answer

The customers in this scenario are lead users because they are using the equipment in innovative ways that could potentially lead to new and improved products. Laggards are the opposite of early adopters and are slow to adopt new products or technologies. Market testers and concept testers are involved in testing new product ideas before they go to market, while reverse engineers analyze how products work in order to replicate or improve upon them.

Question 3

Lilly created a virtual prototype of her new line of fashion boots on a website to show to consumers. Lilly realizes there are multiple lines of fashion boots on the market and hers will need to be unique. For Lilly, what important question should she be asking at this point?
A)What retailers should be used to sell the fashion boots?
B)Will this fashion boot line satisfy an unmet need?
C)What wholesale price should be charged?
D)What promotional plan will work best?
E)In which season should we introduce the product?

Accepted Answer

Lilly needs to determine if her new line of fashion boots will fill an unmet need in the market. This will help her create a unique selling proposition that sets her boots apart from the competition. Choosing the right retailers, setting a wholesale price, creating a promotional plan, and introducing the product in the right season are all important, but they depend on first knowing if there is a market for the product.

Question 4

Sasha is using a test model of her firm's new glow-in-the-dark nail polish to see if it works according to the design specifications. Sasha is involved in
A)test marketing.
B)product launch.
C)alpha testing.
D)target marketing.
E)concept testing.

Accepted Answer

Sasha is conducting alpha testing, which is a type of product testing that occurs before the product is released to the market. Alpha testing is typically done in-house with a select group of testers, and its purpose is to identify any potential issues or bugs with the product before it goes through further testing and eventually hits the market. Since Sasha is testing the glow-in-the-dark nail polish model to make sure it works according to the design specifications, this fits the definition of alpha testing.

Question 5

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is
A)market testing.
B)product design.
C)brainstorming.
D)reverse engineering.
E)launching of the product.

Accepted Answer

After receiving positive evaluations during concept testing, the next step is product design, where the firm develops detailed specifications and prototypes of the product.

Question 6

In the product development process, what takes place between concept testing and market testing?
A)securing financial backing
B)conducting marketing research
C)brainstorming
D)determining potential ROI
E)product design

Accepted Answer

The product design phase takes place between concept testing and market testing. This is when the concept is turned into a tangible product and prototypes are created. The design phase involves creating the physical appearance, packaging, and branding of the product, as well as finalizing specifications and refining the engineering.

Question 7

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in
A)a consortia.
B)reverse innovation.
C)competitive engineering.
D)pioneering.
E)beta testing.

Accepted Answer

This scenario describes reverse innovation, which is when companies develop new products or services in emerging markets and then bring them back to their home markets or other developed markets. This is in contrast to traditional innovation models, where new products are typically developed in mature markets and exported to emerging markets.

Question 8

When conducting exploratory concept testing for her firm's new Internet antipiracy software, what is the most important question that Cassie should ask?
A)How long will it take to bring the software to market?
B)Will respondents purchase the software if it becomes available?
C)Who will determine the price to be charged?
D)Where should the product be sold?
E)Which computer trade show will be used to introduce the product?

Accepted Answer

The most important question when conducting exploratory concept testing is whether or not potential customers would purchase the product if it becomes available. This helps to determine if there is demand for the product and if it would be a viable investment for the firm. While questions such as pricing, distribution channels, and marketing strategies are important, they can be addressed at a later stage once it is confirmed that there is an interested market for the product.

Question 9

One of the key characteristics of brainstorming sessions is
A)no idea is immediately accepted or rejected.
B)everyone must come up with ideas.
C)the first idea is almost always the best idea.
D)only the marketing team is included in these sessions.
E)the manager should always make the final decision.

Accepted Answer

One of the key characteristics of brainstorming sessions is the acceptance of all ideas without judgment or immediate rejection. This allows for the free flow of creativity and encourages participation from all members of the team.

Question 10

A company has a new concept for a lightweight electric scooter that can be easily folded and taken with you inside a building or on public transportation. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to
A)the cost of research and development.
B)the price of the final product.
C)the cost to manufacture the product.
D)the geographic location of potential test market areas.
E)the respondent's purchase intentions if the product were made available.

Accepted Answer

During concept testing, the most important question pertains to the potential customers' opinions and purchase intentions regarding the new product. This helps the company assess the feasibility and potential success of the product in the market. Options A, B, C, and D are important factors to consider in later stages of development, but at this stage, gathering customer feedback is key.

Question 11

The National Institutes of Health (NIH)sponsors medical foundations to conduct research to treat rare diseases. The research is then disseminated to the medical community, thus encouraging the development of drugs and therapies more quickly and at a lower cost than would be possible if the research were privately funded. This is an example of
A)early adopters.
B)market testers.
C)an R&D consortia.
D)reverse engineers.
E)concept testers.

Accepted Answer

The NIH sponsoring medical foundations to conduct research is an example of an R&D consortia, which is a group of companies or organizations that come together to research and develop new products or technologies. In this case, the goal is to develop treatments for rare diseases and disseminate the research to the medical community to encourage further drug and therapy development. This approach allows for collaboration and cost-sharing among the members of the consortium, ultimately leading to faster and more affordable solutions for patients.

Question 12

At the end of a brainstorming session, participants are often asked to
A)identify the worst ideas.
B)defer to management for the final decision.
C)identify which ideas each person proposed.
D)vote on the best ideas.
E)propose one more new idea each.

Accepted Answer

Voting on the best ideas allows for a democratic selection process and ensures that the most popular and feasible ideas are chosen.

Question 13

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in
A)alpha testing.
B)product launch.
C)test marketing.
D)beta testing.
E)concept testing.

Accepted Answer

This scenario describes alpha testing, which is typically done by the manufacturer's staff to ensure the product is functional and stable before moving on to beta testing with external users. Product launch and test marketing are later stages in the product development and launch process, while concept testing occurs earlier in the process to gauge consumer interest and demand.

Question 14

Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies)during the summer when children are out of school. The timing of the release pertains to the product's
A)premarket test.
B)launch.
C)evaluation.
D)research and development.
E)test marketing.

Accepted Answer

The timing of the movie release (summer when children are out of school) is associated with the launch of the product, which is the release of the movie to the general audience. This is also a crucial element of the marketing mix, as it impacts the product's success in terms of revenue and popularity.

Question 15

Rolling River Golf Equipment Corp. has been trying to develop a lightweight putter for years but hasn't come up with the best technology. After learning that Griggson Group had what Rolling River needed, Rolling River bought the right to use the technology in its putters. What process is helping the company develop its new putters?
A)licensing
B)R&D consortia
C)brainstorming
D)franchising
E)outsourcing

Accepted Answer

Licensing is the process of acquiring the rights to use a product or technology owned by another company. In this scenario, Rolling River Golf Equipment Corp. bought the right to use the technology owned by Griggson Group, which is a form of licensing.

Question 16

Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through
A)reverse engineering.
B)licensing technology.
C)customer input.
D)R&D consortia.
E)clinical trials.

Accepted Answer

Customized business software companies work closely with their users during installation and often receive customer input which can lead to new product ideas. Reverse engineering, licensing technology, R&D consortia, and clinical trials are not typical methods used in developing customized business software.

Question 17

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in ________, a form of new idea generation.
A)premarket testing
B)licensing technology
C)consumer research
D)geodemographic analysis
E)brainstorming

Accepted Answer

Brainstorming is a form of new idea generation in which a group of people gather to generate creative ideas and solutions to a problem or question. The situation described in the question is a classic example of a brainstorming session, in which the group is tasked with generating new names for a beach resort.

Question 18

To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as
A)R&D.
B)licensing.
C)consumer research.
D)outsourcing.
E)brainstorming.

Accepted Answer

Licensing involves purchasing the rights to use another firm's technology or ideas for a new product. R&D refers to researching and developing new products from scratch, consumer research involves gathering feedback from potential customers, outsourcing refers to delegating tasks to external firms, and brainstorming is a creative technique for generating ideas within a team.

Question 19

________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.
A)Reverse innovation
B)Reverse engineering
C)Selective dissection
D)Redistribution
E)Creative destruction

Accepted Answer

Reverse engineering is the process of taking apart a product and analyzing its design and components in order to create a similar or improved product without infringing on any patents held by competitors. This can be a valuable strategy for companies looking to stay competitive in their industry and ensure they are offering the best possible product to their customers.

Question 20

Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of
A)target marketing.
B)test marketing.
C)product marketing.
D)product launching.
E)premarket testing.

Accepted Answer

This is an example of test marketing, which involves launching a product or service in a limited market to gauge its response before a broader launch. In this case, restaurants are testing new ideas in Orlando, Florida, to gain insights into what consumer groups will like.

Quiz 12: Developing New Products

If a few of Quality Water Systems Inc. customers are asked to try out a new water filter that has not yet been released on the market, this is an example of

Lilly created a virtual prototype of her new line of fashion boots on a website to show to consumers. Lilly realizes there are multiple lines of fashion boots on the market and hers will need to be unique. For Lilly, what important question should she be asking at this point?

Sasha is using a test model of her firm's new glow-in-the-dark nail polish to see if it works according to the design specifications. Sasha is involved in

If a new product concept gets positive evaluations from potential customers during concept testing, the next step for a firm is

In the product development process, what takes place between concept testing and market testing?

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in

When conducting exploratory concept testing for her firm's new Internet antipiracy software, what is the most important question that Cassie should ask?

One of the key characteristics of brainstorming sessions is

A company has a new concept for a lightweight electric scooter that can be easily folded and taken with you inside a building or on public transportation. The company is currently engaged in concept testing. The most important question during this phase of product development pertains to

At the end of a brainstorming session, participants are often asked to

Before Segway manufactured its two-wheeled people movers, it built a prototype and had staff engineers test it for performance and stability. At this stage, Segway was involved in

Hollywood studios typically release movies targeted toward general audiences (G- or PG-rated movies) during the summer when children are out of school. The timing of the release pertains to the product's

Companies that develop customized business software often work closely with their users when installing their products. This close contact often creates new product ideas through

Suppose that you work for an advertising agency and are brought into a meeting where everyone is asked to generate ideas for names for a new beach resort. You are engaged in ________, a form of new idea generation.

To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as

________ involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.

Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of