Question 1

Commercialization is the stage in the new-product process

Accepted Answer

Commercialization is the stage at which the product is positioned and launched in full-scale production and sales. This is the point in the process where the product is introduced to the market and available for purchase by consumers.

Question 2

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

Accepted Answer

The answer of Simulated test markets (STMs)are often run in...

Question 3

failure fee is a penalty payment

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.

Question 4

marketing involves offering a product for sale

Accepted Answer

Test marketing involves offering a product for sale on a limited basis in a defined area to gauge its potential success before a wider launch.

Question 5

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

Accepted Answer

This payment is an example of a slotting fee, which is a payment made by a supplier to a retailer to cover the costs associated with placing the supplier's product on the retailer's shelves. Kroger required Birds Eye to pay $15,000 for the placement of their new product in the frozen vegetable freezer section of their supermarkets.

Question 6

Parallel development is the simultaneous development of both

Accepted Answer

Parallel development refers to developing the product and production process simultaneously to maximize efficiency and speed up the time to market.

Question 7

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

Accepted Answer

A new product in the food and beverage industry such as a new iced coffee beverage from Starbucks would be the best candidate for full-scale market testing. This would allow Starbucks to gauge customer interest, refine the product, and make necessary changes before a full launch.

Question 8

new beverage by Snapple is currently being sold only in the western United States.Over the next year,Snapple plans to introduce the beverage sequentially into areas in the eastern U.S.This is referred to as a

Accepted Answer

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

Question 9

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

Accepted Answer

Key term definition-regional rollouts.

Question 10

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.

Accepted Answer

Simulated test markets replicate a full-scale test market to a limited degree, and they are commonly used by consumer packaged goods firms due to the time, cost, and confidentiality issues of conducting actual test markets. Simulated test markets use a sample of consumers to provide data on consumer behavior and preferences, which is then used to predict how a product will perform in the market. This technique allows firms to evaluate a product's potential success without incurring the expense and time involved in running a full-scale test market.

Question 11

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

Accepted Answer

A controlled test market involves using a service like SymphonyIRIGroup's BehaviorScan to track sales and assess marketing tactics in a controlled environment with a specific panel of consumers.

Question 12

Which of the following statements is MOST accurate?

Accepted Answer

Test marketing is typically more expensive than other types of research, so it is better suited for lower-risk, lower-cost new consumer products rather than expensive or complex services or industrial products. Additionally, consumer products are often more easily tested in a controlled environment than services or industrial products.

Question 13

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.

Accepted Answer

Breyer's limited scale introduction of the new line of ice cream flavors in elegant black containers indicates that it is undergoing market testing, which is the fifth stage in the new-product development process. During this stage, a product is launched in a limited market to gauge consumer reaction and make necessary modifications before it is introduced on a national or global level.

Question 14

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

Accepted Answer

Commercialization is the stage of the new-product process that positions and launches a new product in full-scale production and sales. It involves creating a marketing plan, setting up the distribution channels, and establishing the pricing strategies. The main goal of the commercialization stage is to introduce the product to the market and generate sales revenue.

Question 15

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

Accepted Answer

Commercialization involves the actual launch of the product or service in the market and requires significant investments in advertising, sales promotion, and distribution. It also involves the production and delivery of the product or service, which can be costly. Therefore, it is typically the most expensive stage in the new-product process. The other stages (screening and evaluation, business analysis, development, and market testing) may involve some investment but are generally less expensive compared to commercialization.

Question 16

slotting fee is a payment a

Accepted Answer

A slotting fee is a payment made by a manufacturer to a retailer in exchange for placing a new product on the retailer's shelf. It is also known as a shelving fee or a listing fee. The fee is intended to compensate the retailer for the cost of placing the product on the shelf, which includes the labor cost of stocking the product, the cost of resetting the shelf to accommodate the new product, and the risk of stocking a new, unproven product.

Question 17

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 failed to make.What is this type of payment called?

Accepted Answer

A failure fee is a penalty payment required by some retailers from manufacturers when a new product does not meet predetermined sales targets, compensating for the underutilization of valuable shelf space.

Question 18

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

Accepted Answer

"Time to market" refers to the amount of time it takes for a product to be developed and launched in the market. It is a crucial factor in a competitive industry.

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?

Accepted Answer

Slotting fees are paid to retailers when a product is being commercialized and placed on the retail shelves. Therefore, the cost of commercialization increases significantly due to these fees.

Question 20

Commercialization refers to

Accepted Answer

Commercialization is defined as the stage of the new-product process that positions and launches a new product in full-scale production and sales. It involves bringing the product to the market and making it available to consumers. This is the final stage in the new-product process, following product development, testing, and market research.

Quiz 10: Developing New Products and Services