Question 1

According to the text, what should be used to determine whether a company has a balanced portfolio of products and, if not, what new-product ideas are needed to offset the imbalance?
A)internal product development venture teams
B)outside consultants
C)marketing development departments
D)status quo committees

Accepted Answer

Outside consultants are suggested as the source to determine whether a company has a balanced portfolio of products and what new-product ideas are needed to offset the imbalance.

Question 2

When General Mills changed the formula for its Oatmeal Crisp cereal, it added ingredients to reduce the risk of high blood pressure, to lower cholesterol, and to reduce the risk of stroke, thus providing greater value to the consumer. Since it was not trying to reach a new target market, which new product strategy was General Mills using?
A)improved product
B)discontinuous innovation product
C)repositioned product
D)new product innovation

Accepted Answer

General Mills used an improved product strategy by adding ingredients to provide greater value to the consumer. They were not trying to reach a new target market or introduce a completely new product, so they did not use discontinuous innovation, repositioning, or new product innovation strategies.

Question 3

Victorinox has long manufactured Swiss Army knives and recently developed a line of upscale Swiss Army watches. Which strategies did Victorinox use to create new products?
A)new-to-the-world product
B)new product line
C)repositioned product
D)discontinuous innovation product

Accepted Answer

Victorinox used the new product line strategy to develop the line of upscale Swiss Army watches, while continuing to manufacture Swiss Army knives.

Question 4

Why is the term new product confusing?
A)because its meaning varies widely and has several correct definitions
B)because a new product is an old product updated
C)because it is a venture product
D)because all new products carry the same level of newness

Accepted Answer

The term "new product" can be interpreted differently by individuals, leading to multiple correct definitions, which can cause confusion.

Question 5

When the manufacturer of L'Oreal shampoo introduced shampoos designed specifically to appeal to preteens, which of the following best describes the product?
A)not considered new, because the product was not discontinuous
B)easily sold to many foreign countries using the same, popular L'Oreal brand name
C)an example of inventing a product and then trying to create a need
D)a new product because it was an improvement or revision of an existing product

Accepted Answer

The introduction of shampoos specifically designed for preteens is considered a new product because it is an improvement or revision of an existing product. While it may not be a completely new category or concept, it is still a new product within the existing category of shampoos.

Question 6

Which of the following is NOT considered a new product?
A)a 2017 model-year GE oven with the same style, parts, and colour as the 2009 model
B)the addition of a management consultant service to a company that once specialized in investment management
C)a rebranding of Lego products
D)a flavour of Ben & Jerry's brand ice cream that was popular 5 years ago

Accepted Answer

A 2017 model-year GE oven with the same style, parts, and colour as the 2009 model is not considered a new product because it does not offer any new features or improvements from the previous model.

Question 7

In its early years of operation, MGP Ingredients Inc. sold ethanol and animal feed. A steep drop in its sales led the company to focus on developing the first low-carb wheat proteins and starches. What would these low-carb products be an example of?
A)a repositioning strategy
B)a new product line
C)an addition to an existing product line
D)a discontinuous innovation

Accepted Answer

The development of the first low-carb wheat proteins and starches represents the introduction of a new product line for MGP Ingredients Inc.

Question 8

For years, the Lacoste brand of clothing has targeted 40-something male consumers. Today, it targets both male and female fashion-conscious consumers in their 20s with everything from moon boots to shearling coats. Which strategy is being implemented?
A)niche
B)new-product-line
C)retargeting
D)repositioning

Accepted Answer

Lacoste is implementing a repositioning strategy by shifting its target audience from older, male consumers to younger, fashion-conscious consumers of both genders.

Question 9

What links the new-product development process with the objectives of the marketing department, business unit, and corporation?
A)product-review committee
B)concept test
C)new-product strategy
D)product strategy bridge

Accepted Answer

The new-product strategy links the new-product development process with the objectives of the marketing department, business unit, and corporation by ensuring that the development of new products aligns with the overall strategic goals and objectives of the organization.

Question 10

The CEO of a cell-phone company, Teresa Bilodeau, and her colleagues sat around a conference table and came up with as many ways as they could to extend the battery life of their handsets. The practicality of the ideas was not taken in to account. What is this process known as?
A)screening
B)a focus-group interview
C)brainstorming
D)diffusion

Accepted Answer

The process described is brainstorming, which involves generating as many ideas as possible without initially considering the practicality of those ideas. Screening involves analyzing and filtering ideas based on feasibility and other factors, while a focus-group interview involves gathering feedback from a specific group of individuals. Diffusion refers to the spread of an idea or innovation through a population.

Question 11

Which of the following is NOT a likely source of new product ideas?
A)customers
B)employees
C)financial lenders
D)competitors

Accepted Answer

Financial lenders are not likely sources of new product ideas as their primary concern is the financial stability and profitability of the company, rather than developing new products. Customers, employees, and competitors, on the other hand, can provide valuable insights and feedback that can lead to new product ideas.

Question 12

When Glade brand air freshener began marketing a clean linen-scented air spray, how could the action be classified?
A)as a repositioning strategy
B)as a new product line
C)as an addition to an existing product line
D)as a discontinuous innovation

Accepted Answer

Adding a clean linen-scented air spray to an existing line of air fresheners is an example of product line extension. It is not a completely new product line or a discontinuous innovation, and there is no indication that Glade was attempting to reposition their brand with this particular product.

Question 13

Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm's employees got together and listed ways the product might be used. What is this an example of?
A)focusing grouping
B)brainstorming
C)concept testing
D)screening

Accepted Answer

This is an example of brainstorming, as the employees are coming up with ideas for potential uses of the new product. Focusing grouping, concept testing, and screening would involve more structured and targeted approaches to evaluating the potential of the product.

Question 14

Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced sunglasses that play music. The glasses weigh a little over a pound and can hold up to 120 songs. What are these sunglasses an example of?
A)a repositioning strategy
B)a new product line
C)an addition to an existing product line
D)a discontinuous strategy

Accepted Answer

The introduction of sunglasses that play music is an addition to Oakley's existing product line of protective eyewear for various kinds of sports.

Question 15

A new-product strategy can be best described by which of the following?
A)It links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
B)It is part of an organization's takeover strategy.
C)It specifies the roles existing products play in the organization's overall plans.
D)It is part of the overall marketing distribution.

Accepted Answer

A new-product strategy is a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation. It outlines the actions that need to be taken to successfully introduce a new product into the market, including research and development, marketing, and distribution. It is designed to ensure that the new product is aligned with the company's overall goals and objectives.

Question 16

The maker of Kandoo has added Kandoo Baby Wipes to its product line. Is this a new product?
A)Yes, additions to the product line are new products.
B)No, it is only a product addition.
C)Yes, this is a discontinuous innovation.
D)No, this is not a product improvement.

Accepted Answer

Additions to a product line, such as the introduction of Kandoo Baby Wipes by the maker of Kandoo, are considered new products because they expand the brand's offerings and enter the market as new items within the existing product line.

Question 17

Which of the following goes one step further than applied research by converting new technology applications into marketable products?
A)basic research
B)product modification
C)marketing development
D)product development

Accepted Answer

Product development goes beyond applied research by not only creating new technology applications but also turning them into marketable products. Product modification and marketing development are part of the product development process, but they do not necessarily involve creating new technology applications. Basic research, on the other hand, focuses on advancing scientific knowledge without necessarily having a practical application in mind.

Question 18

What is a new product?
A)a product that is new to the world
B)a product that is new to the market
C)a product that is new to the producer
D)a product that is new to the producer or seller, or new to the world

Accepted Answer

A new product can be something entirely novel to the world, something new to a specific market, or a new offering from a producer or seller that they have not previously dealt with. Therefore, option D encompasses all these scenarios, making it the correct answer.

Question 19

TechSys is in the process of developing a new cell-phone. They must first aim to link the new-product development process with the objectives of the marketing department, the business unit, and the corporation. What is this process also known as?
A)screening and concept testing
B)establishing the new-product strategy
C)developing a business analysis
D)building a prototype

Accepted Answer

The process described in the question is known as establishing the new-product strategy, which involves aligning the new-product development process with the objectives of the marketing department, the business unit, and the corporation. Screening and concept testing, developing a business analysis, and building a prototype are all steps within the new-product development process, but do not specifically address the linkage between departments and the overall strategy.

Question 20

A U.K. based drink called Lucozade was originally targeted toward people who were suffering from a cold as a "pick me up". It has since been sold as an energy drink to those who love to play sports. By essentially selling the same product to a new target segment, Lucozade used which strategy?
A)brainstorming
B)repositioning
C)screening
D)reciprocity

Accepted Answer

Lucozade used repositioning strategy by targeting a new segment (people who love to play sports) with the same product that was originally targeted towards a different segment (people suffering from cold) as a "pick me up".

Quiz 11: Developing and Managing Products

According to the text, what should be used to determine whether a company has a balanced portfolio of products and, if not, what new-product ideas are needed to offset the imbalance?

Victorinox has long manufactured Swiss Army knives and recently developed a line of upscale Swiss Army watches. Which strategies did Victorinox use to create new products?

Why is the term new product confusing?

When the manufacturer of L'Oreal shampoo introduced shampoos designed specifically to appeal to preteens, which of the following best describes the product?

Which of the following is NOT considered a new product?

In its early years of operation, MGP Ingredients Inc. sold ethanol and animal feed. A steep drop in its sales led the company to focus on developing the first low-carb wheat proteins and starches. What would these low-carb products be an example of?

For years, the Lacoste brand of clothing has targeted 40-something male consumers. Today, it targets both male and female fashion-conscious consumers in their 20s with everything from moon boots to shearling coats. Which strategy is being implemented?

What links the new-product development process with the objectives of the marketing department, business unit, and corporation?

The CEO of a cell-phone company, Teresa Bilodeau, and her colleagues sat around a conference table and came up with as many ways as they could to extend the battery life of their handsets. The practicality of the ideas was not taken in to account. What is this process known as?

Which of the following is NOT a likely source of new product ideas?

When Glade brand air freshener began marketing a clean linen-scented air spray, how could the action be classified?

Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm's employees got together and listed ways the product might be used. What is this an example of?

Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced sunglasses that play music. The glasses weigh a little over a pound and can hold up to 120 songs. What are these sunglasses an example of?

A new-product strategy can be best described by which of the following?

The maker of Kandoo has added Kandoo Baby Wipes to its product line. Is this a new product?

Which of the following goes one step further than applied research by converting new technology applications into marketable products?

What is a new product?

TechSys is in the process of developing a new cell-phone. They must first aim to link the new-product development process with the objectives of the marketing department, the business unit, and the corporation. What is this process also known as?

A U.K. based drink called Lucozade was originally targeted toward people who were suffering from a cold as a "pick me up". It has since been sold as an energy drink to those who love to play sports. By essentially selling the same product to a new target segment, Lucozade used which strategy?