Question 1

Simulated test markets (STMs) are often run in shopping malls where consumers are
A)asked how much a person is willing to pay for an unfamiliar item.
B)asked whether they saw the firm's advertising campaign.
C)questioned about how often they are likely to shop in that particular location.
D)asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product.
E)questioned to identify product users and their likely consumption and media patterns.

Accepted Answer

Simulated test markets (STMs) are used to identify product users and their likely consumption and media patterns. Therefore, consumers are likely to be questioned in STMs to identify their preferences and behavior towards a new product.

Question 2

The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as __________.
A)marketing program execution
B)disbursement
C)launch
D)commercialization
E)final distribution

Accepted Answer

Commercialization is the stage in the new-product process that involves launching the new product in full-scale production and sales. This stage involves finalizing the product design, production, distribution, and marketing plans, as well as addressing any legal, regulatory, or environmental issues. The goal of commercialization is to successfully introduce the new product into the market and achieve profitability.

Question 3

If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate. What is this type of payment called?
A)an opportunity cost charge
B)lost sales fee
C)shelf space allowance
D)product displacement fee
E)a failure fee

Accepted Answer

Key term definition-failure fee.

Question 4

A failure fee is a penalty payment
A)a retailer assesses a manufacturer to handle defective new products that customers returned.
B)a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf.
C)a retailer makes to a manufacturer for stockouts - not keeping point-of-purchase displays continuously stocked with the new product.
D)a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers.
E)a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.

Accepted Answer

A failure fee is a penalty payment that a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell. This fee ensures that the retailer is not financially burdened by keeping an unpopular product on the shelves and incentivizes the manufacturer to produce high-quality products that are more likely to sell.

Question 5

Commercialization is the stage in the new-product process
A)at which the product is positioned and launched in full-scale production and sales.
B)during which the firm performs its final evaluations of the new-product.
C)when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard.
D)when advertising campaigns are evaluated using Starch scores to identify brand awareness.
E)at which the product generates the greatest sales and profits.

Accepted Answer

Commercialization is the final stage in the new-product process where the product is launched in full-scale production and sales. This stage involves positioning the product, setting up distribution channels, and implementing advertising and promotional efforts to generate sales and profits.

Question 6

Which of the products listed below would be the best candidate for full-scale market testing?
A)totally free checking account from Bank One
B)household frequent flyer program from Delta Airlines
C)mid-priced luxury sedan made in America by Mazda
D)new iced coffee beverage from Starbucks
E)slimmer iMac computer

Accepted Answer

A new beverage from a popular brand like Starbucks would likely generate a lot of interest and be a good candidate for full-scale market testing.

Question 7

If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and assess the effectiveness of advertising and other promotion tactics, what type of test market is this?
A)laboratory test market
B)concept test market
C)simulated test market
D)controlled test market
E)standard test market

Accepted Answer

A controlled test market involves tracking sales and assessing the effectiveness of marketing tactics using a panel of consumers, which aligns with the description of IRI's BehaviorScan service.

Question 8

A new beverage by Snapple is currently being sold only in the western United States. Over the next year, Snapple plans to introduce the beverage into areas in the Midwest, and then the eastern U.S. This distribution strategy during commercialization is referred to as a
A)limited rollout.
B)phased rollout.
C)regional rollout.
D)market-product expansion.
E)phased commercialization.

Accepted Answer

The answer of A new beverage by Snapple is currently...

Question 9

Speed or __________ is often vital in introducing a new product.
A)perpendicular development
B)time to market
C)red tape cutting
D)fast concepting
E)delivery expediting

Accepted Answer

Time to market refers to the amount of time it takes to bring a product from the idea stage to being available for purchase. Speed is often a crucial factor in a successful product launch.

Question 10

Introducing new-products sequentially into geographic areas of the U.S. to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as
A)limited rollouts.
B)phased rollouts.
C)market-product expansion.
D)regional rollouts.
E)phased commercialization.

Accepted Answer

Key term definition-regional rollouts.

Question 11

Audiences are allowed to preview actual movies (a sneak preview) such as The Hunger Games and Star Trek so that changes might be made before they are released to the general public during which stage of the new-product process?
A)market testing
B)business analysis
C)commercialization
D)screening and evaluation
E)concept testing

Accepted Answer

The answer of Audiences are allowed to preview actual movies...

Question 12

Commercialization refers to
A)the point at which a new product has diffused throughout the marketplace.
B)the introduction of an offering to sequential geographic areas of the U.S.
C)exposing actual products to prospective consumers under realistic purchase conditions.
D)the stage of the new-product process that positions and launches a new product in full-scale production and sales.
E)the point where new-product concepts are transformed into prototypes.

Accepted Answer

Commercialization refers to the stage of the new-product process that positions and launches a new product in full-scale production and sales.

Question 13

The most expensive stage in the new-product process for most products and services is
A)commercialization.
B)screening and evaluation.
C)business analysis.
D)development.
E)market testing.

Accepted Answer

Commercialization involves significant investments in advertising, sales promotion, and distribution efforts. These expenses can make it the most expensive stage in the new-product process, especially for products that require extensive market development efforts. The other stages, such as screening and evaluation, business analysis, development, and market testing, may involve high costs, but they are typically lower than those associated with commercialization.

Question 14

Which of the following statements about test marketing is most accurate?
A)Test marketing is especially important for new services.
B)Expensive consumer products must be test marketed in extremely upscale shopping malls to guarantee accurate results.
C)Test marketing is better suited to relatively inexpensive new consumer goods than for new services.
D)Test marketing is especially important for new, expensive industrial products.
E)Standard test markets are the least expensive and fastest type

Accepted Answer

Test marketing is better suited to relatively inexpensive new consumer goods than for new services, as testing a service beyond the concept level is difficult due to the intangibility of the service. Additionally, test markets for expensive consumer products and industrial products are impractical. Therefore, option C is the most accurate statement.

Question 15

A slotting fee is a payment that a
A)wholesaler makes to place a new product on a retailer's shelf.
B)manufacturer makes to have a wholesaler distribute a new product to retailers.
C)manufacturer makes to place a new product on a retailer's shelf.
D)manufacturer makes to a wholesaler as compensation for warehousing inventory.
E)manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.

Accepted Answer

A slotting fee is a payment made by the manufacturer to place a new product on a retailer's shelf. This payment is often made to ensure that the product receives adequate visibility and promotion within the store.

Question 16

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country. This payment is an example of a
A)product placement fee.
B)bribe.
C)slotting fee.
D)product support fee.
E)shelf space allowance

Accepted Answer

This payment is an example of a slotting fee, which is a payment made by a manufacturer to a retailer in exchange for securing shelf space for their product. In this case, Birds Eye paid Kroger to secure space for their new Vegetable Quinoa Pilaf in the frozen vegetable freezer section of all its supermarkets around the country.

Question 17

Test marketing involves offering a product for sale
A)to random sample of people in the top ten major cities of the U.S.
B)in as broad a geographic region as possible.
C)to consumers that are representative of the target market.
D)on a limited basis in a defined area.
E)only on certain days of the week and hours of the day.

Accepted Answer

Test marketing involves offering a product for sale on a limited basis in a defined area. This allows the marketer to evaluate the product's performance and make necessary adjustments before launching it on a larger scale. Random sampling of people in major cities or in a broad geographic region may not provide representative data for the target market. Similarly, restricting sales to certain days and hours may not allow for a full evaluation of the product's performance.

Question 18

Because of the time, cost, and confidentiality problems of test markets, consumer packaged goods firms often turn to __________, a technique that replicates a full-scale test market to a limited degree, often in a mall setting.
A)partial rollouts
B)screening and evaluation
C)virtual reality testing
D)time-to-market measures
E)simulated test markets

Accepted Answer

The technique described in the question is a simulated test market, which replicates a full-scale test market in a limited way, often in a mall setting. The other choices - partial rollouts, screening and evaluation, virtual reality testing, and time-to-market measures - do not accurately match the description given.

Question 19

Marketers pay slotting fees to grocers in payment for space - or slots - on their retail shelves. Such slotting fees significantly increase the cost of which stage of the new-product process?
A)business analysis
B)market testing
C)screening and evaluation
D)commercialization
E)idea generation

Accepted Answer

Slotting fees are paid during the commercialization stage, when the product is being launched in retail stores. These fees can significantly increase the cost of commercialization, as the marketer needs to pay the grocer to secure shelf space for their product.

Question 20

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new-product process.
A)commercialization
B)screening and evaluation
C)business analysis
D)development
E)market testing

Accepted Answer

The new product was being tested on a limited scale to determine consumer reactions before national distribution. This indicates that it was in the market testing stage of the new-product process.

Quiz 9: Developing New Products and Services

Simulated test markets (STMs) are often run in shopping malls where consumers are

The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as __________.

If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate. What is this type of payment called?

A failure fee is a penalty payment

Commercialization is the stage in the new-product process

Which of the products listed below would be the best candidate for full-scale market testing?

If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and assess the effectiveness of advertising and other promotion tactics, what type of test market is this?

A new beverage by Snapple is currently being sold only in the western United States. Over the next year, Snapple plans to introduce the beverage into areas in the Midwest, and then the eastern U.S. This distribution strategy during commercialization is referred to as a

Speed or __________ is often vital in introducing a new product.

Introducing new-products sequentially into geographic areas of the U.S. to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as

Audiences are allowed to preview actual movies (a sneak preview) such as The Hunger Games and Star Trek so that changes might be made before they are released to the general public during which stage of the new-product process?

Commercialization refers to

The most expensive stage in the new-product process for most products and services is

Which of the following statements about test marketing is most accurate?

A slotting fee is a payment that a

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country. This payment is an example of a

Test marketing involves offering a product for sale

Because of the time, cost, and confidentiality problems of test markets, consumer packaged goods firms often turn to __________, a technique that replicates a full-scale test market to a limited degree, often in a mall setting.

Marketers pay slotting fees to grocers in payment for space - or slots - on their retail shelves. Such slotting fees significantly increase the cost of which stage of the new-product process?

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new-product process.