Question 1

Many marketers are now using new simulated test marketing technologies to reduce the costs of test marketing and to speed up the process.

Accepted Answer

Simulated test marketing technologies are becoming more popular among marketers as they can reduce the costs of test marketing and speed up the process.

Question 2

Malibu Beach Parties finds that the tastes and preferences of its customers change more rapidly than in the past.The manager should constantly look for external ideas from customers,suppliers,and the competition.

Accepted Answer

The statement suggests that customer preferences and tastes are changing rapidly, so the manager should constantly seek external ideas from customers, suppliers, and competitors to keep up with these changes. Therefore, the answer is true.

Question 3

Controlled test markets are still the most widely used approach for major in-market testing.

Accepted Answer

While controlled test markets were once a widely used approach for in-market testing, the rise of digital and social media platforms, along with advanced analytics and simulation models, has led to a broader range of methods being adopted. Companies now often use virtual test markets, online consumer panels, and social media monitoring as more cost-effective and faster alternatives.

Question 4

Companies rarely solicit ideas from customers during the idea generation stage of product development.

Accepted Answer

Companies often engage in methods such as surveys, focus groups, and social media discussions to gather ideas and feedback from customers during the idea generation stage of product development.

Question 5

GreenTree Lawn and Garden Products is engaged in marketing strategy development.Management should first create a statement outlining the product's planned price,distribution,and marketing budget for the first year.

Accepted Answer

Management should first define the overall marketing strategy, including target market and value proposition, before detailing specific elements like price, distribution, and budget.

Question 6

A firm can obtain new products in two ways: acquisition or new-product development.

Accepted Answer

Acquisition involves purchasing an existing product or company that has developed a new product, while new-product development involves creating a new product internally through research and development efforts.

Question 7

A product idea is an idea for a possible product a company can offer the market,while a product concept is a detailed version of the idea stated in meaningful consumer terms.

Accepted Answer

A product idea is a general idea, while a product concept is the fleshed-out version that takes into consideration the features and benefits that a product can deliver to a customer in a way that consumers can understand.

Question 8

According to one estimate.80 percent of all new consumer products fail.

Accepted Answer

According to various sources, including Harvard Business School and Nielsen, the failure rate for new consumer products is indeed around 80%.

Question 9

GreenTree Lawn and Garden Products is engaged in a review of the sales,costs,and profit projections for some new products to find out whether they satisfy the company's objectives.This activity is called business product development.

Accepted Answer

The activity described is called business product analysis or product evaluation, not product development. Product development is the process of creating new products or improving existing ones.

Question 10

Sequential product development has the advantage of not only being a team-oriented approach,but it is also faster in bringing products to market.

Accepted Answer

Sequential product development, also known as the waterfall model, is a linear and sequential approach to product development that involves completing each stage before moving on to the next. While it may seem organized, it has the drawback of being slower and inflexible because each stage must be completed before the next can begin, leading to delays in product release.

Question 11

Dell's IdeaStorm website asks consumers or anyone else for insights on how to improve the company's product offering.This is an example of crowdsourcing.

Accepted Answer

Dell's IdeaStorm website is a well-known example of crowdsourcing, which involves soliciting ideas, feedback, or contributions from a large group of people, usually online. By asking its customers and other stakeholders to share their thoughts and suggestions about how to improve its products or services, Dell is able to tap into the collective intelligence and creativity of the crowd, which can lead to better ideas and more innovative solutions. Crowdsourcing can be used for a wide range of purposes, from product development and marketing to customer support and problem solving.

Question 12

A company launching a new product into the market must first decide on when to launch the product.

Accepted Answer

A company needs to carefully consider the timing of product launch to ensure it aligns with market demand and competition.

Question 13

JumBo Games is launching a new set of game toys in the commercialization stage.The first decision to make is introduction timing and the second is where to launch the new product.

Accepted Answer

The statement is true. The first decision while commercializing a new set of game toys is to decide on the introduction timing and the second is to decide on where to launch the new product.

Question 14

Concept testing works best with people who are familiar with the new idea and the new product's purpose.This generally includes top management,the sales force,and research and development.

Accepted Answer

Concept testing is most effective when it includes potential customers or users who can provide feedback on the concept's appeal and usability, not just those internally familiar with the idea.

Question 15

The first idea-reducing stage is idea screening,which helps spot good ideas and drop poor ones as soon as possible.

Accepted Answer

Idea screening is the first stage of idea generation where potential ideas are evaluated and analyzed to determine their feasibility and potential success. The aim is to identify and select the most promising ideas while dropping those that are not likely to succeed.

Question 16

The business analysis stage represents the first large jump in financial investment in the new-product development process.

Accepted Answer

The business analysis stage is not the first large jump in financial investment; typically, the development stage, which follows concept testing and business analysis, represents a more significant increase in investment as it involves the creation of prototypes and the launch of detailed market studies.

Question 17

New product development begins with a systematic search for new product ideas through idea generation.

Accepted Answer

Idea generation is the first step in the new product development process where a company systematically searches for new product ideas.

Question 18

More broadly,many companies are now developing crowdsourcing or open-innovation new-product idea programs.

Accepted Answer

This statement is true. Many companies are turning to crowdsourcing and open innovation to generate new product ideas and improve their innovation processes.

Question 19

Blair Housewares wants to add new lines of products to its 46-store chain.Managers are correct in believing that the purpose of idea generation is to create a few ideas and that the purpose of succeeding stages is to increase that number.

Accepted Answer

The statement is incorrect. The purpose of the idea generation stage is to generate as many ideas as possible, and the purpose of the succeeding stages is to evaluate and select the best ideas.

Question 20

The stage at which new product and marketing programs are introduced into realistic market settings is called concept testing.

Accepted Answer

The stage described is known as market testing, not concept testing. Concept testing typically involves presenting the product concept to target consumers before the actual product is developed, to gauge potential demand and receive feedback. Market testing, on the other hand, involves introducing the actual product and marketing program into a realistic market setting to test their performance before a full-scale launch.

Quiz 10: New-Product Development and Product Life-Cycle Strategies