Question 1

The final stage in the new-product development process is:
A) product testing
B) market testing
C) commercialization
D) product prototyping
E) simulated marketing

Accepted Answer

Commercialization is the decision to market a product.

Question 2

During the _____ stage of the new-product development process,production starts,inventories are built up,the product is shipped to distribution points,the sales force is trained,and advertising and promotion begin.
A) commercialization
B) product testing
C) market analysis
D) product prototyping
E) simulated marketing

Accepted Answer

The commercialization stage is the decision to market a product and sets several task in motion.

Question 3

In the _____ stage of new-product development,preliminary demand,cost,sales,and profitability estimates are made.
A) prototype screening
B) idea generation
C) concept testing
D) post-brainstorming
E) business analysis

Accepted Answer

New-product ideas that survive the initial screening process move to the business analysis stage,where preliminary figures for demand,cost,sales,and profitability are calculated.

Question 4

All of the following are reasons products fail EXCEPT:
A) overestimation of market size
B) poor match between product features and customer desires
C) a price too high or too low
D) direct distribution
E) not offering any discernible benefit compared to existing products

Accepted Answer

Inadequate distribution is another reason.

Question 5

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created,the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers.The consumer group was asked to evaluate the three product ideas in terms of their marketability.This stage of new-product development is called:
A) prototype screening
B) concept testing
C) market testing
D) idea manipulation
E) idea diffusing

Accepted Answer

Concept tests evaluate new-product ideas usually before any prototype has been created.

Question 6

The maker of Purell hand sanitizer tested consumers' reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads,make out a grocery list,and then "shop" in a mock store filled with real products,including the new product.This is an example of a(n):
A) adoption-rate test
B) simulated (laboratory) market test
C) concept test
D) use test
E) juried consumer test

Accepted Answer

Simulated (laboratory)market tests typically entail showing members of the target market advertising for a variety of products,and then monitoring purchase behavior in a mock or real store.

Question 7

In the _____ stage of new-product development,the technical feasibility of manufacturing the new product is examined as a prototype is produced.
A) screening
B) development
C) market testing
D) concept testing
E) business analysis

Accepted Answer

During the development stage,the technical feasibility of manufacturing the product at a reasonable cost is thoroughly examined.This stage can be long and expensive and can involve a great deal of testing.Products are often modified after the testing.

Question 8

The main goal of the global product development process is to:
A) come up with a single standard product or product line suitable for all global markets
B) expand the number of different new-product offerings so that individual country needs are more likely to be met
C) develop every product for potential worldwide distribution and adaptation to other countries
D) come up with new-product ideas in the United States and use global markets as test markets
E) repeat the steps in the process with marketing teams in each and every foreign country targeted

Accepted Answer

Multinational companies develop each product for potential worldwide usage,with minor unique requirements incorporated.

Question 9

What degree of failure occurs when a company cannot recoup its development,marketing,and production costs?
A) primary
B) secondary
C) absolute
D) conditional
E) relative

Accepted Answer

This is the definition of an absolute failure.

Question 10

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
A) Use testing
B) Test marketing
C) Concept testing
D) Laboratory testing
E) Discontinuous innovation

Accepted Answer

After products and marketing programs have been developed,they are usually tested in the marketplace using test marketing,which is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Question 11

Because Laurence did not know companies actually sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident,he paid almost $4,000 to have his dog's broken hip replaced.Once he discovered such a product existed,he perceived the insurance to be a(n):
A) heterogeneous shopping product
B) diffusion
C) market laggard
D) product diversification
E) innovation

Accepted Answer

An innovation is a product perceived as new by a potential adopter.

Question 12

Middleton has developed the Flybar 1200,an extreme pogo stick that propels users more than five feet into the air.During the _____ stage of its new-product development process,a group was assigned the task of estimating preliminary demand for the product,costs (including issues with liability),sales,and future profitability.
A) business analysis
B) idea generation
C) concept testing
D) screening
E) test marketing

Accepted Answer

In the business analysis stage of new-product development,preliminary demand,cost,sales,and profitability estimates are made.

Question 13

What degree of product failure results when the product returns a profit but fails to achieve sales,profit,or market share goals?
A) primary
B) secondary
C) absolute
D) conditional
E) relative

Accepted Answer

This is the definition of a relative product failure.

Question 14

A(n)_____ typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product.These people are then taken to a mock or real store where their purchases are recorded.
A) adoption-rate test
B) real test market
C) concept test
D) simulated (laboratory) market test
E) consumer juried test

Accepted Answer

This is a description of a simulated (laboratory)market test.

Question 15

A team-oriented approach to new-product development is referred to as:
A) simultaneous product development
B) synergistic product development
C) commercialized product development
D) synchronized product development
E) parallel product development

Accepted Answer

The development process works best when all the involved areas (R&D,marketing,engineering,production,and even suppliers)work together rather than sequentially,a process call simultaneous product development.

Question 16

Which of the following statements about simultaneous product development is true?
A) Simultaneous product development refers to the practice of developing multiple new products at the same time.
B) With simultaneous product development,all relevant functional areas and outside suppliers participate in all stages of the new-product development process.
C) All departments within the company work together at the same time,but to maintain a high level of secrecy,no one outside the company is involved in simultaneous product development.
D) Simultaneous product development actually increases the length of time it takes to get a product to market and the time the product will stay in the growth stage of its product life cycle.
E) All of these statements about simultaneous product development are true.

Accepted Answer

Suppliers are typically involved in the process,which shortens the length of time it takes to get a new product to market.

Question 17

Firms that routinely experience success in new-product introduction tend to have:
A) strong leadership
B) a history of a sales orientation
C) an obsession with quantity rather than quality
D) an unwillingness to fail
E) all of the choices

Accepted Answer

Firms that routinely experience success in new-product introduction tend to have strong leadership,an obsession with producing the very best product possible,a vision of what the market will be like in the future,a history of carefully listening to customers,a commitment to new-product development,a project-based team approach,a drive to get every aspect of the product development process right,and a willingness to fail occasionally.

Question 18

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?
A) product sampling
B) simulated product adoption
C) online test marketing
D) simulated diffusion
E) market concentration

Accepted Answer

The text describes the activities of P&G,Quaker Oats,General Mills,and other companies that use online test marketing.

Question 19

A product that is perceived as new by a potential adopter,whether the product is "new to the world" or simply new to the individual,is a(n):
A) innovation
B) diffusion
C) discontinuous product
D) laggard
E) simulated new product

Accepted Answer

An innovation is a product perceived as new by a potential adopter.

Question 20

When selecting a test market city,a researcher should look for a city:
A) where the demographics and purchasing habits mirror the overall market for the product
B) that has media spillover from other cities to increase media alternatives
C) that is as large as possible
D) that has limited distribution
E) where there is no competition

Accepted Answer

Test marketing is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.The market city should be similar to the overall market for accuracy of results.

Quiz 11: Developing and Managing Products

The final stage in the new-product development process is:

During the _____ stage of the new-product development process,production starts,inventories are built up,the product is shipped to distribution points,the sales force is trained,and advertising and promotion begin.

In the _____ stage of new-product development,preliminary demand,cost,sales,and profitability estimates are made.

All of the following are reasons products fail EXCEPT:

In the _____ stage of new-product development,the technical feasibility of manufacturing the new product is examined as a prototype is produced.

The main goal of the global product development process is to:

What degree of failure occurs when a company cannot recoup its development,marketing,and production costs?

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

What degree of product failure results when the product returns a profit but fails to achieve sales,profit,or market share goals?

A(n) _____ typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product.These people are then taken to a mock or real store where their purchases are recorded.

A team-oriented approach to new-product development is referred to as:

Which of the following statements about simultaneous product development is true?

Firms that routinely experience success in new-product introduction tend to have:

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?

A product that is perceived as new by a potential adopter,whether the product is "new to the world" or simply new to the individual,is a(n) :

When selecting a test market city,a researcher should look for a city: