Question 1

Market testing is designed to help the company ________.

Accepted Answer

Market testing is a process of gathering and analyzing data from potential consumers to help companies adjust their marketing plans before product launch. It helps companies identify potential problems or issues with their product, pricing, packaging, and advertising strategies. By doing so, they can minimize the chances of product failure and increase the likelihood of successful market penetration.

Question 2

Firms practicing internal service quality are _____,that is,they place the customer at the center of everything that takes place both inside and outside the firm.

Accepted Answer

Internal service quality focuses on placing the customer at the center of everything, which implies a customer-centric approach. Options A, D, and E are incorrect because these options do not prioritize customer satisfaction or experience. Option B is incorrect because market orientation focuses on understanding and satisfying customer needs and wants, but it does not necessarily put the customer at the center of all internal processes.

Question 3

_____ involves treating employees as customers and developing systems and benefits that satisfy their needs.

Accepted Answer

Internal marketing involves promoting the company's values and goals to its employees, treating them as internal customers, and developing systems and benefits that satisfy their needs. This improves employee satisfaction and retention, which can lead to better customer service and ultimately, increased profitability. Options A and E are related to external customers, while options C and D are not widely used terms in this context.

Question 4

The greater the ___________,the more market testing a company will want to do before a full product launch.

Accepted Answer

The risk of failure is directly related to the amount of market testing a company will want to do before a full product launch. If the risk of failure is high, the company will want to conduct extensive market testing to ensure that the product meets customer needs and preferences.

Question 5

Before a company develops a full prototype of a new product,it often _________.

Accepted Answer

Companies often create simulations to test and refine product concepts before developing a full prototype, allowing for virtual consumer feedback and adjustments.

Question 6

Total demand is a function of three separate situations,which can be described as ___________.

Accepted Answer

The three types of purchases mentioned in choice B are the most common and accurate ways to describe the three situations that affect total demand. "New" purchases refer to customers buying a product or service for the first time, "repeat" purchases refer to customers who have bought the product or service before and are buying it again, and "replacement" purchases refer to customers who are replacing a product or service they have used up or that has become outdated. This covers all possible customer situations that would affect demand.

Question 7

Generation Millennium Computer Co.is trying to test a new product concept.It would be normal for the company to ____________.

Accepted Answer

It is common practice for companies to ask consumers about their willingness to purchase a new product and at what price, evaluate their opinions about the product design, and understand how it compares to other products in the market. Hence, all of the above options are viable choices for Generation Millennium Computer Co. to test their new product concept.

Question 8

Beta testing is designed to __________.

Accepted Answer

Beta testing is a process in which a product is tested by actual users in a real-world setting to gather feedback on its performance and usability. Encouraging customers to evaluate and provide feedback on the prototype is the primary purpose of beta testing.

Question 9

The business case analysis is an overall evaluation of a product and usually assesses ________.

Accepted Answer

The business case analysis typically assesses the potential success or profitability of a product or project, considering factors such as market demand, competition, costs, and potential revenue. While the product life cycle, future industry trends, and target market characteristics may be relevant factors in the analysis, they are not the primary focus.

Question 10

_______ are often considered a more realistic picture of product growth.

Accepted Answer

The answer of _______ are often considered a more realistic...

Question 11

It is typical to develop a ___________ in the new product development cycle during the business case analysis stage.

Accepted Answer

Developing a projection of total demand for the product over a specified period of time, usually five years, is a common practice in the business case analysis stage of the new product development cycle. This helps the company to estimate the potential sales and revenue for the product and make informed decisions about whether to proceed with the development or not.

Question 12

Companies often have to delineate a product's characteristics,which refers to ______________.

Accepted Answer

Delineating a product's characteristics involves describing all aspects of the product, including its appearance, texture, physical elements, and features.

Question 13

Once a product is ready to be test marketed,________.

Accepted Answer

Test marketing involves launching the product with a brand identity and packaging that will be used when the product is commercialized. This helps to test the effectiveness of the marketing mix and gather feedback on the product's acceptance by the target market. The use of a code or fake name is not common practice in test marketing. The appeals and benefits highlighted in the test marketing phase should be consistent with those used in the commercialization phase.

Question 14

The new product development process changed in the 1990's due to __________.

Accepted Answer

The new product development process changed in the 1990s due to an increase in the cost of taking products to market combined with high failure rates. This caused companies to reassess their development process and adopt new strategies to reduce costs and increase the success rate of new products.

Question 15

After a new product is designed in the product development cycle it leads to a distinct set of physical characteristics and a detailed feature mix.At this point,the company would _________.

Accepted Answer

At this point, the company would develop a marketing strategy that is detailed but tentative.

Question 16

Market testing can take a long time,and this can result in ________.

Accepted Answer

If market testing takes a long time, competitors may have the opportunity to analyze the product and develop marketing strategies to counter it, giving them an advantage in the market.

Question 17

The business case analysis stage is important because ________.

Accepted Answer

The business case analysis stage is important because it involves an overall evaluation of a product, assesses its potential success, and helps determine whether the product is worth investing time and resources into. It helps the firm make an informed decision before moving forward with development and launch. Options B, C, and E do not fully capture the significance of this stage.

Question 18

One method of developing a new product is to develop a model which incorporates more planning and follows a sequential timeline with key process metrics being met at each stage before moving on through the process.In this model,the product that results is __________.

Accepted Answer

The description mentions a sequential timeline with key process metrics being met at each stage, indicating a more structured and intentional approach to product development. This suggests that the resulting product model is considered close to the final product that will be rolled out to customers.

Question 19

For many consumer products,test markets run __________.

Accepted Answer

Test markets typically run for less than a year as companies want to get feedback from consumers quickly and efficiently to make necessary changes to the product or marketing strategy. Long-term test markets would not be cost-effective and could delay the product launch.

Question 20

New purchases of new products are called _______.

Accepted Answer

Trial purchases are purchases made by consumers to try out and experience new products for the first time. This is different from replacement purchases, which involve consumers buying a new product to replace a previous one that has become worn out or faulty. The other options (A, B, and C) do not accurately describe this type of purchase.

Quiz 9: The Product Experience: New-Product Development and Service