Question 1

It is considered inefficient to use concept tests during the idea screening stage of the new-product development process.

Accepted Answer

During the idea screening stage of the new-product development process,it is appropriate to use concept tests.

Question 2

Very few firms follow a formal new-product development process.

Accepted Answer

Most companies follow a formal new-product development process.

Question 3

Concept tests are considered fairly good predictors of success for line extensions and for products that do not require major changes in consumer behavior.

Accepted Answer

Concept tests are designed to test reactions and perceptions of consumers towards a new product concept. They can provide valuable insights into the potential success of a line extension or a product that aligns closely with existing consumer behaviors and preferences. However, for products that require significant changes in consumer behavior, such as new technologies or disruptive innovations, concept tests may be less reliable in predicting success.

Question 4

Central Bark is a dog day care center.When you check your dog into a Central Bark you know your pooch will be pampered.Since kennels have been boarding dogs for years,the dog day care is not really a new product.

Accepted Answer

There are many types of new product ranging from new-to-the-world products to low-price products.

Question 5

A test market is one example of a focus group test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

Accepted Answer

A test market is not a focus group.

Question 6

Adaptation is the process by which the adoption of an innovation spreads.

Accepted Answer

This process is referred to as diffusion.

Question 7

Martina loves her new Kindle and has tweeted to her followers several times about how great the product is.This is an example of communication directly from the marketer to potential adopters.

Accepted Answer

This is an example of word-of-mouth communication among consumers.

Question 8

Without the Internet,it would be impossible to conduct simultaneous product development from different parts of the world.

Accepted Answer

The Internet enables real-time communication and collaboration among team members located in different parts of the world, making it possible to conduct simultaneous product development. Without the Internet, such collaboration would be hindered by distance and time differences.

Question 9

A product must be a discontinuous innovation to be considered a "new" product.

Accepted Answer

There are six categories of new products,only one of which is new-to-the-world discontinuous innovative products.

Question 10

A firm's new-product strategy links the new-product development process with the objectives of the marketing departments,the business unit,and the corporation.

Accepted Answer

A firm's new-product strategy should align with the larger objectives of the marketing department, business unit, and corporation to ensure that new product development efforts are focused and strategic.

Question 11

The first filter in the product development process is called screening.

Accepted Answer

Most are rejected at the idea screening stage.

Question 12

Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

Accepted Answer

Increasing globalization and competition means that multinational firms must consider the needs and preferences of consumers around the world when developing new products in order to stay competitive in the global marketplace.

Question 13

One benefit of test marketing is that the marketing activity is shielded from competitors.

Accepted Answer

Test marketing may result in a serious problem if a firm's competitors find out about the new product before it has been fully introduced.

Question 14

The two techniques considered most useful for generating new-product ideas are customer-generation and competitive imitation.

Accepted Answer

The two techniques considered most useful for generating new-product ideas are brainstorming and focus group exercises.

Question 15

The Internet offers a fast,cost-effective way to conduct test marketing.

Accepted Answer

The Internet indeed provides a fast and cost-effective way to conduct test marketing as it allows businesses to reach a large and diverse audience quickly and at a lower cost compared to traditional methods of test marketing. It also facilitates real-time data collection and analysis, enabling businesses to make informed decisions about product development and marketing strategies.

Question 16

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

Accepted Answer

The statement mentions Andersen Electronics is conducting estimations of costs and revenues for a new amusement park video skill game, indicating that the firm is analyzing a new product for a potential business venture. Hence, the statement is true.

Question 17

Seven employees from a company are trying to come up with ideas for new-product development.The employees are all in a room together,shouting out potential ideas.The ideas are written down and evaluated as they are generated.This is an example of brainstorming.

Accepted Answer

Brainstorming does not involve evaluation of the ideas as they are generated;criticism of any kind is avoided.

Question 18

The development of Coke Zero by Coca Cola would not be considered a new product since the company was already making soft drinks.It would simply be called a line extension.

Accepted Answer

Line extensions are considered to be a type of new product.Coke Zero is an example of an addition to an existing product line.

Question 19

The decision to market a product is called commercialization.

Accepted Answer

Commercialization is the process of introducing a product or service into the market to be sold to consumers or businesses.

Question 20

For a firm that adheres to the product concept,the logical place to start generating new-product ideas is with the customers of the firm.

Accepted Answer

Firms adhering the marketing concept-not the product content-logically start generating new-product ideas from customers.

Quiz 11: Developing and Managing Products