Question 1

Factors such as total market dollars,market growth rate,gross profitability,and cash flow are a part of which stage of the new-product process?

Accepted Answer

The factors mentioned such as total market dollars, market growth rate, gross profitability, and cash flow are part of the business analysis stage of the new-product process. This is the stage where the company evaluates the potential success and profitability of the new product idea by analyzing market data, financial information, and other relevant factors.

Question 2

In a presentation to Senior Management,you show a weighted point system to a number of ideas a cross-functional team generated.At what stage is this presentation most likely to occur?

Accepted Answer

The weighted point system is typically used in the screening and evaluation stage of the idea development process to objectively evaluate the feasibility and potential success of each idea. This stage occurs after idea generation but before business analysis and development. The presentation to Senior Management is likely to occur during this stage to get their buy-in and support for the most promising ideas.

Question 3

Which of the following statements about the screening and evaluation stage of the new-product process is true?

Accepted Answer

A mock-up of a movie based on the Friends series shown to moviegoers who are asked their opinions of the movie is an example of a concept test, which is a part of the screening and evaluation stage of the new-product process. The external approach is concerned with market analysis, and the business analysis stage comes after the screening and evaluation stage.

Question 4

Developing the marketing strategy required to commercialize a new idea would be created in which stage?

Accepted Answer

The answer of Developing the marketing strategy required to commercialize...

Question 5

In the new-product process,the stage that involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy is called:

Accepted Answer

Market testing is the stage in the new-product process that involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy. This is a crucial stage as it allows the company to test the viability of the product and make necessary changes before launching it in the market. Option A, commercialization, is the stage when the product is introduced to the market after successful market testing. Option B, screening and evaluation, is the first stage of the new-product process that involves evaluating the feasibility and potential of the product idea. Option D, development, involves developing and creating the product prototype after the idea has been approved in the screening and evaluation stage.

Question 6

IDEO is a company that:

Accepted Answer

IDEO is well known for its expertise in product design and innovation. The company exists to develop and design new products that solve problems and meet the needs of consumers. IDEO's approach is highly collaborative, emphasizing creativity, empathy, and design thinking. It works with a wide range of clients across different industries and sectors, including both consumer and business markets.

Question 7

Concept testing is used at which stage in the new-product process?

Accepted Answer

Concept testing is used in the screening and evaluation stage of the new-product process. It is used to gather feedback and measure the potential success of a product idea before investing further resources in development.

Question 8

The use of crash test dummies for a new seatbelt design is most likely to be used in which stage?

Accepted Answer

Crash test dummies would be used in the development stage of a new seatbelt design to test its effectiveness and safety.

Question 9

All of the following activities are involved in the business analysis phase of the new-product process EXCEPT:

Accepted Answer

Investment of capital in human resources is not typically considered a part of the business analysis phase of the new-product process. Economic analysis, product analysis, and legal examination are all important aspects of this phase.

Question 10

Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments,when a friend suggested combining spices with tea.In the _____ stage of the new-product process,spices and tea were turned into a prototype.

Accepted Answer

The prototype is created in the development stage of the new-product process where the idea is turned into a tangible product. In this scenario, the idea of combining spices and tea was generated in the initial stage, screening and evaluation may have been done to determine if it aligns with the company's goals and objectives, and business analysis may have been conducted to assess the potential profitability of adding the new product to the company's line of food condiments.

Question 11

Conducting in-person taste tests and using the Internet to virtually test new concepts are most likely to occur in which stage?

Accepted Answer

In-person taste tests and virtual testing are methods typically used in the stage of internal and external evaluations of new-product ideas to determine if the concepts are viable and appealing to consumers.

Question 12

If you watched much television,you have seen the ads that show a controlled crash of a car containing crash dummies and the resultant vehicular damage.In the new-product process,this test would occur during the _____ stage.

Accepted Answer

The controlled crash test of a car with crash dummies is part of the development stage, where the product is tested for safety and performance before it is finalized for market testing or production.

Question 13

Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments,when a friend suggested combining spices with tea.This is an example of:

Accepted Answer

Sara Burns and her friend actively generated new ideas for the company's product line by considering combining spices with tea. This is an example of idea generation.

Question 14

Assume that,as marketing director for Mazda,you see your sales decreasing in the years since the Honda Prelude with four-wheel steering was introduced.If you hope to regain sales in this market quickly through a new-product action,the most valuable sources of ideas would be:

Accepted Answer

The decrease in sales suggests that customers are likely switching to the Honda Prelude with four-wheel steering. Therefore, studying and analyzing the features and benefits offered by the Honda Prelude would be valuable. This is because it would enable Mazda to understand what makes the Honda Prelude successful and develop a competing product that meets or exceeds those features and benefits. This information can be obtained by analyzing competitive products. While consumer and employee suggestions are also valuable sources of ideas, they may not provide insights into the features and benefits that are attracting Mazda's target customers to the Honda Prelude. Additionally, research and development breakthroughs may take longer to implement and may not necessarily address the specific needs of the market segment that Mazda is trying to target. Hence, the most valuable source of ideas in this case would be competitive products.

Question 15

Marketing researchers could ask consumers if they would prefer to serve their children juice in easy-to-open pouches,plastic bottles with screw-on caps,or individual easy-open boxes.When the consumers tell the researcher which package concept they prefer,they are taking part in which stage of the new-product process?

Accepted Answer

The consumers' feedback is being gathered through concept testing, which is the stage where the company evaluates the appeal of a product idea by getting feedback from customers. The other stages mentioned, idea generation, development, and business analysis, are primarily focused on generating, refining, and assessing the viability of the product idea itself, rather than consumer preferences for specific physical aspects of the product such as packaging.

Question 16

An external evaluation that consists of preliminary testing of a new-product idea (rather than the actual product)with consumers is called:

Accepted Answer

A concept test is a form of external evaluation that evaluates a new-product idea, rather than the product itself, to determine its viability and potential success with consumers.

Question 17

When it comes to developing new services over new products there are some significant differences.All of the following represent the differences except:

Accepted Answer

The statement "focus on the competition, not on consumers" is actually not a difference between developing new services and new products. In fact, both new product and new service development should always keep the customer in mind and strive to meet their needs and preferences. The other options are all valid differences, such as the involvement of the service delivery staff in the customer experience, the need for local production of services, and the often invisible development process of services.

Question 18

At Mattel,new product prototypes are child tested in special testing playgrounds during the _____ stage in the new-product process.

Accepted Answer

The development stage in the new-product process involves creating and testing prototypes. Mattel specifically tests their new product prototypes in special testing playgrounds with children, indicating the importance of this stage in their process. Therefore, option B is the correct answer.

Question 19

All of the following might be used in the development phase,except

Accepted Answer

Safety testing, consumer testing, and external solicitation of ideas are all common activities during the development phase of a product or service. However, marketing plan development typically occurs later, during the commercialization phase, after the product has been fully developed and tested.

Question 20

Imagine you work for a production company that has been approached by one of the networks to develop a concept for a new reality show.These seem to be the years of the reality television shows-just like we had not too long ago several new shows modeled after Friends.Where are you and your co-workers most likely to look first for a concept?

Accepted Answer

Observing what's currently on television helps identify trends and popular formats, providing inspiration for new reality show concepts.

Quiz 10: Developing New Products and Services