Question 1

________ 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

The process described matches the definition of reverse engineering, where a product is taken apart and analyzed to create an improved product without infringing on existing patents. Choice A, reverse innovation, involves innovating for the needs of emerging markets and is not related to competitor analysis. Choices C and D are unrelated to the process described. Choice E, creative destruction, involves innovation that replaces old products or business models, and is not specifically related to competitor analysis.

Question 2

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

The key characteristic of brainstorming sessions is that no idea is immediately accepted or rejected. This encourages creativity and freedom of expression, leading to a wider range of ideas and innovative solutions. Option B is partially correct, but not everyone needs to come up with ideas as long as every member has an opportunity to contribute. Option C is incorrect, as the first idea is not always the best idea. Option D is incorrect, as different teams and individuals may bring different perspectives and ideas. Option E is incorrect, as the purpose of brainstorming sessions is to generate ideas collectively, not for the manager to make the final decision.

Question 3

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, creating a two-way communication and exchange of ideas between the client and the software development team. Customer input is an essential part of the software development process, and it often results in new product ideas or features. Reverse engineering, licensing technology, R&D consortia, and clinical trials are not directly related to the software development process in this context.

Question 4

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina realizes there are multiple lines of swimwear out there and hers will need to be unique. For Kristina, which important question should she be asking at this point?
A) What retailers should be used to sell the swimwear?
B) Will this swimwear 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

Kristina should focus on whether her swimwear line satisfies an unmet need to ensure it stands out in a competitive market.

Question 5

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in
A) premarket testing.
B) product launch.
C) test marketing.
D) product development.
E) concept testing.

Accepted Answer

The answer of Lorraine belongs to a national consumer panel...

Question 6

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

This is an example of an R&D consortia, where multiple organizations come together to conduct research and develop products. In this case, the NIH is sponsoring medical foundations to conduct research on rare diseases, and the knowledge gained is then shared with the medical community to encourage the development of treatments more quickly and at a lower cost than if the research were privately funded.

Question 7

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

The answer of If a new product concept gets positive...

Question 8

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 9

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, where a new idea or product is introduced in a limited geographic area to gauge consumer response before launching it on a wider scale. By selecting Orlando, a diverse tourist destination, the restaurant can test how different consumer groups respond to the new idea.

Question 10

Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in
A) test marketing.
B) product launch.
C) alpha testing.
D) target marketing.
E) concept testing.

Accepted Answer

Alpha testing is the stage of testing where a product is tested within the organization before introducing it to the external market, to identify any design issues or bugs. In this case, Barbara is testing the test model of the new inline skates to ensure they meet the initial design specifications, which falls under the category of alpha testing.

Question 11

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in
A) concept testing.
B) market testing.
C) premarket testing.
D) product development.
E) alpha testing.

Accepted Answer

The answer of Golf ball manufacturers use "Iron Mike," a...

Question 12

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are ________, 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

These customers are called lead users, who are early adopters of a product and often modify it for their specific needs, providing valuable feedback and ideas for new and improved products.

Question 13

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 costs of marketing and advertising.
E) the respondent's purchase intentions if the product were made available.

Accepted Answer

During concept testing, the most important question is about the respondent's purchase intentions, as it helps determine the potential market demand and viability of the product concept.

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 release of movies targeted toward general audiences during the summer when children are out of school is part of the product launch strategy. This timing is meant to maximize the audience and revenue potential for the movie.

Question 15

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for ________ the product.
A) pretesting
B) beta testing
C) test marketing
D) alpha testing
E) concept testing

Accepted Answer

Beta testing involves testing a product in a real-use setting, often with a limited group of users, to identify any potential issues before the product is released to the wider market. Auto companies are able to use racing cars as a form of beta testing to identify any flaws in their designs and technology under extreme conditions before releasing them to the general public.

Question 16

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

By voting on the best ideas, the group can come to a consensus and prioritize which ideas should be pursued further. This allows for input from multiple perspectives and helps ensure that the most promising ideas are given the attention they deserve.

Question 17

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

When a global firm turns to its subsidiaries in less developed markets for new product ideas, it is engaging in reverse innovation. This is when innovations are first developed in emerging markets and then brought back to developed markets.

Question 18

YouEye is developing eye tracking technology that works with an individual's webcam. Instead of needing to spend thousands of dollars on eye tracking equipment and having customers come into labs, firms will be able to utilize everyday webcams to track not only what a person attends to on a computer screen but also his or her emotional reactions to these products. Firms such as YouEye are automating the
A) premarket testing process.
B) alpha testing process.
C) beta testing process.
D) evaluation process.
E) concept testing process.

Accepted Answer

The answer of YouEye is developing eye tracking technology that...

Question 19

When conducting exploratory concept testing for her firm's new Internet antipiracy software, which is the most important question that Dee 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 potential customers would be willing to purchase the product. This will help determine the product's marketability and potential for success. Questions about pricing, distribution, and promotional strategies can be addressed later in the development process.

Question 20

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) R&D
B) licensing technology
C) consumer research
D) geodemographic analysis
E) brainstorming

Accepted Answer

Brainstorming is a form of new idea generation where a group of people come together to generate a large number of ideas in a short amount of time. This is exactly what is happening in the meeting where the advertising agency is trying to generate names for a new beach resort.

Quiz 12: Developing New Products

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

One of the key characteristics of brainstorming sessions is

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

Kristina created a virtual prototype of her new line of swimwear on a website to show to consumers. Kristina realizes there are multiple lines of swimwear out there and hers will need to be unique. For Kristina, which important question should she be asking at this point?

Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the products. The national consumer panel Lorraine is part of is engaged in

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

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

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

Barbara is using a test model of her firm's new inline skates to see if they work according to the design specifications. Barbara is involved in

Golf ball manufacturers use "Iron Mike," a machine that swings a golf club at a constant velocity, to test the distance for new golf ball designs. When using Iron Mike, the manufacturers are engaged in

Ron sells commercial-grade tools to building contractors. Whenever he visits his customers, he looks to see if they are using his tools for other tasks or have modified the tools for some other purpose. These customers are ________, who can provide ideas for new and improved products.

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

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

One reason auto companies spend millions on racing cars is that they offer the opportunity to test new designs and technology under extreme conditions. Using the cars in a real-use setting provides an opportunity for ________ the product.

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

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, which is the most important question that Dee should ask?

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.