Question 1

When Middleton developed the Flybar 1200, an extreme pogo stick that propels users more than 1.5 metres feet into the air, it performed screening, development, and testing prior to commercialization of the product.

Accepted Answer

The statement mentions that Middleton performed screening, development, and testing prior to commercialization, indicating that the statement is true.

Question 2

Scenario 11-4
When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95.
-Refer to the scenario. Some people might consider the use of Richardson's techniques to be unethical. This value judgment could adversely affect its adoption. What does the value judgment result from?

Accepted Answer

The value judgment results from the compatibility of Richardson's techniques with the ethical standards of some individuals. Some may believe that using techniques to win arcade games is unfair or cheating, therefore the compatibility of Richardson's techniques with ethical values may affect its adoption.

Question 3

The most important factor in successful new-product introductions is a good match between product characteristics and market needs.

Accepted Answer

This statement is true. It is important for a new product to meet the needs of the target market in order for it to be successful. Customers are more likely to purchase a new product if it solves a problem they are facing or offers a benefit they desire. Thus, companies need to conduct market research and analyze customer feedback to ensure their product meets the demands and preferences of their target audience.

Question 4

While developing new products is far from an exact science, most firms follow a formal new-product development process.

Accepted Answer

Most firms follow a formal new-product development process which includes stages such as idea generation, screening and evaluation, concept testing, business analysis, product development, market testing, commercialization, and launch. However, the process may vary depending on the industry, product, and company size.

Question 5

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

Accepted Answer

The most useful techniques for generating new-product ideas include customer and market research, brainstorming, and ideation sessions, rather than solely relying on customer generation and competitive imitation.

Question 6

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 overall goals and objectives of the various departments and units within the organization, including marketing and the broader corporate strategy. This helps ensure that new products are developed with a clear purpose and that resources are allocated effectively to support their success.

Question 7

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

Accepted Answer

A test market is actually a real-world setting where a new product is introduced to a limited geographical area or demographic group to gauge its performance before a wider release, not a laboratory test.

Question 8

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.

Accepted Answer

Test marketing involves introducing a new product to a limited market to gauge its potential success before a full launch. If competitors find out about the new product, they may try to replicate it or launch a similar product before the original firm has had a chance to establish a market presence. This can result in lost sales and weaker competitive positioning for the original firm.

Question 9

Seven employees at Ferguson Fabricators 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

The answer of Seven employees at Ferguson Fabricators are trying...

Question 10

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

Accepted Answer

Diffusion theory describes how the adoption of an innovation spreads over time among potential adopters, so diffusion is indeed the process by which the adoption of an innovation spreads.

Question 11

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

Accepted Answer

Concept tests can be used during the idea screening stage to determine customer interest and help identify the most promising ideas. However, it is important to keep in mind that concept tests are not always accurate and should be followed up with more thorough testing and analysis before making final decisions on product development.

Question 12

The development of garlic butter-flavoured crescent rolls by Pillsbury would not be considered a new product since the company was already making crescent rolls. It would simply be called a line extension.

Accepted Answer

The answer of The development of garlic butter-flavoured crescent rolls...

Question 13

Scenario 11-4
When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95.
-Refer to the scenario. Because the benefits of reading the book and employing its techniques are obvious to anyone who has ever attended a carnival, The Secrets of Amusement Park Games-Revealed can be said to exhibit which product characteristic?

Accepted Answer

Observability refers to the degree to which the benefits or results of a product can be easily observed or communicated to others. In this scenario, the benefits of Richardson's book are obvious to anyone who has attended a carnival and seen him win almost every arcade game, making it a highly observable product characteristic.

Question 14

Scenario 11-4
When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95.
-Refer to the scenario. In terms of the new-product development process, which stage is the book's availability on Amazon.com?

Accepted Answer

The availability of the book on Amazon.com indicates that it has passed through the previous stages of idea generation, business analysis, and test marketing and has been launched for commercialization.

Question 15

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

Accepted Answer

The marketing concept focuses on delivering customer satisfaction by identifying and meeting the needs and wants of customers. Therefore, it makes sense for the firm to start generating new-product ideas based on the feedback and preferences of their customers.

Question 16

The development stage of the new-product process is devoted only to the development of the first prototype of the product.

Accepted Answer

The development stage of the new-product process involves refining and improving prototypes, as well as conducting testing and analysis to ensure the product meets customer needs and is financially viable. It is not limited to only the development of the first prototype.

Question 17

The city a firm chooses as its test market should reflect the demographic and other characteristics of the whole nation only if that is an accurate representation of the producer's intended market for the product.

Accepted Answer

The purpose of a test market is to simulate the broader market and gather information on how a product will perform. Therefore, if a firm intends to sell its product nationally, it makes sense to choose a test market that reflects the demographic and other characteristics of the whole nation. However, if the intended market for the product is different from the whole nation, then the test market should reflect the characteristics of that specific market.

Question 18

Campbell has developed a line of premium soups called Campbell's Select Gold Label to go with its red-label brands. This is an example of a new product.

Accepted Answer

The statement describes a new line of premium soups, which implies that it is a new product introduced by Campbell. Therefore, the statement is true.

Question 19

Scenario 11-4
When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95.
-Refer to the scenario. Since, with the use of Richardson's book, most people can win arcade games and carry home as many stuffed animals as their arms can hold, what would carnival operators hope for?

Accepted Answer

Carnival operators would hope for a slow diffusion of the book to maintain the challenge and profitability of arcade games. If the book's strategies became widely known quickly, it could reduce the games' appeal and profitability.

Question 20

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 that Andersen Electronics is engaged in its first estimations of costs and revenues for a new amusement park video skill game, indicating that the firm is undertaking a new-product business analysis. Therefore, the statement is true.

Quiz 11: Developing and Managing Products