Question 1

Which position has profit responsibility for their product group and helps retailer in maximizing the sales for the whole group of products not just the particular manufacturer's product?
A) research analysts
B) early purchasers
C) boundary spanners
D) category managers

Accepted Answer

Category managers are responsible for a group of products and work with retailers to maximize sales for the entire category, not just products from a single manufacturer. They focus on product assortment, pricing, promotion, and shelf placement to optimize sales and profits for the category as a whole.

Question 2

Which statement best describes consumer innovators?
A) They are unlikely to display brand loyalty toward products.
B) As compared to later adopters, they rely less on impersonal information sources.
C) They often act as opinion leaders from whom others seek advice.
D) They are less mobile, and do not prefer changing jobs often.

Accepted Answer

Consumer innovators often act as opinion leaders in their social circles, influencing others' purchasing decisions by sharing their experiences and advice about new products or services.

Question 3

Which statement best describes the role of a new product committee?
A) It helps the organization in identifying a suitable partner for a joint venture.
B) It looks after all the legal aspects of the organization when it launches a new product in the market.
C) It coordinates and integrates the work of the firm's functional departments on a specific project.
D) It reviews and approves new-product plans that arise elsewhere in the organization.

Accepted Answer

A new product committee is typically responsible for reviewing and approving new-product plans that are developed within the organization, ensuring they align with the company's strategic goals and resources.

Question 4

What is the process by which new goods or services are accepted in the marketplace is known as?
A) extension
B) referencing
C) diffusion
D) polarization

Accepted Answer

The process by which new goods or services are accepted and spread throughout the marketplace is known as diffusion. This involves the spread of a product's adoption from its initial market segments to wider audiences.

Question 5

When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios. What was Microsoft increasing by adding this link to its website?
A) product compatibility
B) product complexity
C) possibility of trial use
D) comparison of AOE III to its competitors

Accepted Answer

By offering a free download of one of the game scenarios, Microsoft increased the possibility of trial use, allowing potential customers to experience the game before making a purchase decision.

Question 6

What is the systematic approach to new product development called in which products are developed in an orderly series of steps from one department to the next?
A) phased development
B) a parallel approach
C) PERT (program evaluation and review technique)
D) CPM (critical path method)

Accepted Answer

Phased development is the systematic approach where products are developed in an orderly series of steps from one department to the next, ensuring a structured and sequential progression through the development process.

Question 7

Who often leads new-product development programs, including creation of new-product ideas and recommendations for improving existing products?
A) product architect
B) product manager
C) category manager
D) product analyst

Accepted Answer

Product managers often lead new-product development programs, as they are responsible for the strategy, roadmap, and feature definition for a product or product line. This role typically involves creating new-product ideas and recommendations for improving existing products.

Question 8

What is the approximate new-product failure rate?
A) 25 percent
B) 37 percent
C) 66 percent
D) 80 percent

Accepted Answer

The approximate new-product failure rate is around 80 percent, indicating that a significant majority of new products do not succeed in the market.

Question 9

What is experienced by potential users when a new product innovation is consistent with the values and experiences of potential adopters?
A) a greater level of compatibility
B) a greater level of complexity
C) a greater level of possibility of trial use
D) a greater level of observability

Accepted Answer

When a new product innovation aligns with the values and experiences of potential adopters, they experience a greater level of compatibility. This means the product fits well into their existing habits and needs, making it more likely to be adopted.

Question 10

When does a new product innovation possess relative advantage?
A) when it is consistent with the values and experiences of potential adopters
B) when it appears far superior to previous ideas
C) when it allows potential buyers limited initial use before purchase
D) when it is relatively easy to understand

Accepted Answer

Relative advantage refers to the degree to which an innovation is perceived as better than the idea it supersedes. It does not necessarily relate to consistency with values and experiences (A), trialability (C), or complexity/simplicity (D).

Question 11

What can potential buyers do that might increase the rate of adoption?
A) measure compatibility
B) acknowledge the complexity
C) decline a trial use
D) observe tangible advantages

Accepted Answer

Observing tangible advantages can increase the rate of adoption as it allows potential buyers to see the benefits and effectiveness of a product or service, making them more likely to adopt it.

Question 12

At what stage in the consumer adoption process do buyers consider the likely benefits of the product?
A) awareness
B) trial
C) interest
D) evaluation

Accepted Answer

The answer of At what stage in the consumer adoption...

Question 13

Why does the complexity of an innovation affect its adoption rate?
A) because consumers are slow to adopt products they find difficult to use
B) the product is inconsistent with the values of potential adopters
C) when a free or discounted trial is provided to delay the product acceptance
D) when the superiority of the product is visible to the consumer

Accepted Answer

Complexity can hinder the adoption rate of an innovation because if potential users perceive the product as difficult to understand or use, they are less likely to adopt it. This is because ease of use is a significant factor in the decision-making process for adopting new technologies or products.

Question 14

What are product managers also known as?
A) product directors
B) trade-name managers
C) brand managers
D) product line directors

Accepted Answer

Product managers are often referred to as brand managers, as they are responsible for the strategy, roadmap, and feature definition of a product or product line, similar to how brand managers oversee the marketing and image of a brand.

Question 15

What is the first step in the new-product development process?
A) screening
B) development
C) idea generation
D) business analysis

Accepted Answer

The first step in the new-product development process is idea generation, where the goal is to come up with concepts for new products.

Question 16

Which statement best describes venture teams?
A) A venture team is disbanded after every meeting.
B) A venture team functions as an integral part of the basic organization.
C) A venture team's flexible lifespan may extend over a number of years.
D) A venture team is responsible for looking after all the legal aspects of introducing a new product in the market.

Accepted Answer

Venture teams are formed to focus on specific projects or innovations, and their lifespan can vary greatly depending on the project's scope and requirements. They are not necessarily disbanded after every meeting, nor are they solely responsible for legal aspects of product introduction, and while they can be integral to an organization, their defining feature is their project-focused, flexible duration.

Question 17

How can marketers accelerate the adoption process?
A) by paying retailers and wholesalers to heavily promote the product
B) by test-marketing the product first
C) by manipulating one of the characteristics of a product innovation
D) by introducing the product into a foreign market first

Accepted Answer

Marketers can accelerate the adoption process by manipulating characteristics of a product innovation, such as improving its relative advantage, compatibility, complexity, trialability, or observability, to make it more appealing to consumers.

Question 18

What is a new product committee?
A) a task force of experts assigned to generate new product ideas
B) a group of experts permanently assigned to generate, evaluate, and implement new product projects
C) the employees, suppliers, and customers that are a part of the relationship marketing process
D) the most common arrangement for activities related to developing a new product

Accepted Answer

The answer of What is a new product committee?
A) a...

Question 19

In the context of the consumer diffusion process, what is the final group of consumers that make trial purchases of a new product called?
A) innovators
B) late majority
C) early purchasers
D) laggards

Accepted Answer

Laggards are the final group of consumers to adopt a new product, typically showing skepticism and adopting the product only after it has become mainstream or out of necessity.

Question 20

What is the stage of new product development during which ideas with commercial potential are separated from those NOT meeting company objectives?
A) idea generation
B) business analysis
C) screening
D) evaluation

Accepted Answer

During the screening stage, ideas are evaluated to determine if they align with the company's objectives and if they have potential commercial viability. This process helps to filter out concepts that do not meet the company's goals or are not feasible for development.

Quiz 11: Developing and Managing Brand and Product Strategies

Which position has profit responsibility for their product group and helps retailer in maximizing the sales for the whole group of products not just the particular manufacturer's product?

Which statement best describes consumer innovators?

Which statement best describes the role of a new product committee?

What is the process by which new goods or services are accepted in the marketplace is known as?

When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios. What was Microsoft increasing by adding this link to its website?

What is the systematic approach to new product development called in which products are developed in an orderly series of steps from one department to the next?

Who often leads new-product development programs, including creation of new-product ideas and recommendations for improving existing products?

What is the approximate new-product failure rate?

What is experienced by potential users when a new product innovation is consistent with the values and experiences of potential adopters?

When does a new product innovation possess relative advantage?

What can potential buyers do that might increase the rate of adoption?

At what stage in the consumer adoption process do buyers consider the likely benefits of the product?

Why does the complexity of an innovation affect its adoption rate?

What are product managers also known as?

What is the first step in the new-product development process?

Which statement best describes venture teams?

How can marketers accelerate the adoption process?

What is a new product committee?

In the context of the consumer diffusion process, what is the final group of consumers that make trial purchases of a new product called?

What is the stage of new product development during which ideas with commercial potential are separated from those NOT meeting company objectives?