Question 1

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.The testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?
A) idea screening
B) idea generation
C) product development
D) concept testing

Accepted Answer

Testing the new lures by tournament professionals and fishing guides would take place in the product development stage, as this is when the new product is being developed and tested before it is launched in the market. Idea screening is the initial stage where potential ideas are evaluated, while idea generation is the stage where new ideas are generated. Concept testing involves testing the idea with a small group of target consumers before proceeding with the product development stage.

Question 2

A European dairy,which is famous for its rich ice creams,has introduced basil-,tomato-,fennel-,and oregano-flavoured ice creams.
-Refer to European Dairy.What is the introduction of new flavours an example of?
A) a new product line
B) a repositioning strategy
C) a revision to existing products
D) an addition to an existing product line

Accepted Answer

The introduction of new flavours is an addition to an existing product line as the dairy already produces ice creams and is simply expanding their range by adding new flavours.

Question 3

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.Because buyers of fishing lures want to have the newest,most technologically improved lure,most of Rapala's customers would more than likely fall into which category of adopters?
A) prompt diffusers
B) early adopters
C) early majority
D) innovators

Accepted Answer

The answer of Finland-based Rapala VMC Corp.is the world's largest...

Question 4

Reynolds,the manufacturer of aluminum foil,developed plastic wrap in an array of different festive colours.This is an example of a new product.

Accepted Answer

The statement describes the development of a new product, which is the plastic wrap with different colours. Therefore, the answer is A - True.

Question 5

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.After the trade show,the newest lure made by Rapala will enter which stage of the new-product development process?
A) idea screening
B) commercialization
C) concept testing
D) product development

Accepted Answer

After the trade show, the newest lure made by Rapala will enter the commercialization stage, which involves producing and launching the new product in the market.

Question 6

The development of a strawberry-flavoured cake mix by Duncan Hines would not be considered a new product since the company was already making cake mixes.It would simply be called a line extension.

Accepted Answer

The answer of The development of a strawberry-flavoured cake mix...

Question 7

While developing new products is far from an exact science,most firms do follow a formal new-product development process.

Accepted Answer

Most firms do follow a formal new-product development process to minimize the risk of failure and ensure that the new product meets customer needs and expectations.

Question 8

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.The degree to which the newest lures are perceived as superior to earlier models refers to a characteristic used to predict the rate of adoption.What is it?
A) complexity
B) trialability
C) relative advantage
D) differentiation capability

Accepted Answer

Relative advantage refers to the degree to which the new product is perceived as superior to existing products. In the case of fishing lures, new models must have a relative advantage to previous ones in order to be adopted by consumers.

Question 9

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.
-Refer to Virtual Keyboard.During which stage of its new-product development process would a group have been assigned the task of estimating preliminary demand for the product,costs,sales,and future profitability?
A) business analysis
B) idea generation
C) screening
D) test marketing

Accepted Answer

During the business analysis stage of new-product development, a group is assigned the task of estimating preliminary demand for the product, costs, sales, and future profitability. This stage involves evaluating the attractiveness of the product idea from a financial standpoint and determining whether it makes sense for the company to invest resources in bringing the product to market.

Question 10

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.As a global marketer,Rapala uses a one product-one message strategy.What does this mean?
A) It empowers local managers to change the product in any way necessary.
B) It sells the same product using the same promotional tools in every country in which it operates.
C) It gives its local managers promotional and production autonomy.
D) It has low brand equity.

Accepted Answer

A one product-one message strategy means that the same product is sold using the same promotional tools in every country where the company operates. This allows for a consistent brand image and messaging across markets.

Question 11

Market researchers have determined nine categories of lifestyles for computer users.
-Refer to Lifestyle Categories.One of the categories is described as "Mouse Potatoes," who like the Internet for entertainment and can't wait to buy the latest in "technoentertainment." In terms of the diffusion process,"Mouse Potatoes" would be classified as which of the following?
A) innovators
B) late majority
C) early majority
D) late adopters

Accepted Answer

"Mouse Potatoes" are eager to buy the latest in "technoentertainment," indicating they are among the first to adopt new technologies. This aligns with the characteristics of innovators in the diffusion process, who are eager to try new ideas and products.

Question 12

Market researchers have determined nine categories of lifestyles for computer users.
-Refer to Lifestyle Categories.One of the categories is described as "Fast Forwards," who are the early adopters of new technology for home,office,and personal use.This means that this group is most likely to adopt new technology when it is in which stage of its product life cycle?
A) expansion
B) introduction
C) maturity
D) growth

Accepted Answer

"Fast Forwards" are described as early adopters of new technology, implying they are the first to use and purchase new products. This suggests that they are most likely to adopt new technology during its introductory stage, when it is first released to the market.

Question 13

Market researchers have determined nine categories of lifestyles for computer users.
-Refer to Lifestyle Categories.One of the categories is described as "Hand-Shakers," who are typically managers who do not possess any computer skills but rather allow their assistants to provide all necessary technological knowledge.In terms of the diffusion process,"Hand-Shakers" would most likely be classified as which of the following for office technology?
A) late adopters
B) late minority
C) laggards
D) late majority

Accepted Answer

"Hand-Shakers" who do not possess any computer skills and rely on their assistants for all technological knowledge are likely to be laggards in the diffusion process for office technology. Laggards are the very last group to adopt new technology and are resistant to change.

Question 14

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.ca for $5.95.
-Refer to Amusement Park Games.Some people might consider the use of Richardson's techniques as being unethical,and this value judgment could adversely affect its adoption.What does the judgment result from?
A) the book's observability
B) the book's compatibility
C) the book's intangibility
D) the book's complexity

Accepted Answer

The judgment results from the book's compatibility, as some people may consider using Richardson's techniques to win arcade games as being unfair or cheating.

Question 15

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.
-Refer to Virtual Keyboard.In a meeting with Canesta corporate officials,you (a leading marketing consultant)are asked if the new virtual keyboard will be quickly accepted by the Canadian consumer.You tell them that this depends on many product characteristics-as a matter of fact,all of the following EXCEPT which one?
A) the "buy Canadian" movement in Canada
B) how much of a relative advantage it has over currently used keyboards
C) how similar it is to existing keyboards in use and fulfilling needs
D) its degree of trialability

Accepted Answer

The "buy Canadian" movement is a socio-political factor and not a product characteristic. The acceptance of the virtual keyboard will depend on its relative advantage, similarity to existing keyboards, and degree of trialability.

Question 16

A European dairy,which is famous for its rich ice creams,has introduced basil-,tomato-,fennel-,and oregano-flavoured ice creams.
-Refer to European Dairy.Which of the following product characteristics would most likely influence the market success of these new flavours?
A) compatibility
B) competitive advantage
C) comparability
D) tangibility

Accepted Answer

Compatibility refers to the degree to which the product is consistent with the values, beliefs, and practices of its target market. In this case, the new flavors of ice creams may be well-received if they are compatible with the tastes and preferences of the European market. As these flavors are commonly used in European cuisine, there is high potential for compatibility with the target market. Thus, compatibility is likely to be the most influential product characteristic for the market success of these new flavors.

Question 17

A European dairy,which is famous for its rich ice creams,has introduced basil-,tomato-,fennel-,and oregano-flavoured ice creams.
-Refer to European Dairy.In the process of developing these new flavours,the dairy surveyed world-famous chefs to determine which nontraditional flavours had the greatest level of marketability.This survey would have happened during which stage of the product development process?
A) basic research
B) applied research
C) idea screening
D) brainstorming

Accepted Answer

The survey of world-famous chefs to determine marketability of nontraditional flavors is part of the idea screening stage, where potential product ideas are evaluated for feasibility and market potential.

Question 18

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.The "dream lure for the 21st century will more than likely be an example of what?
A) an addition to an existing product line
B) a repositioned product
C) a new product line
D) an improvement to an existing product

Accepted Answer

The "dream lure for the 21st century" is likely an addition to an existing product line, as it represents a new product within Rapala's existing range of fishing lures.

Question 19

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.
-Refer to Virtual Keyboard.This virtual keyboard,which is radically different from anything currently on the market would be classified as which of the following?
A) a discontinuous innovation
B) a sporadic innovation
C) a venture product
D) an episodic innovation

Accepted Answer

A discontinuous innovation is a new product or service that is a major departure from existing offerings, and the virtual keyboard developed by Canesta qualifies as such. It is a radical departure from traditional physical keyboards and offers a new way of interacting with digital devices.

Question 20

Finland-based Rapala VMC Corp.is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2003,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala.Fishing lures are most likely in which stage of their product life cycle?
A) innovation
B) growth
C) maturity
D) decline

Accepted Answer

The fishing lure industry has been in existence for a long time and has reached maturity. The fact that new lures must be introduced every year to stay competitive confirms that the industry is not in the innovation stage. There is no evidence of the industry being in decline or experiencing rapid growth, indicating that the industry has reached a stable state of maturity. Therefore, fishing lures are most likely in the maturity stage of their product life cycle.

Quiz 9: Developing and Managing Products

A European dairy,which is famous for its rich ice creams,has introduced basil-,tomato-,fennel-,and oregano-flavoured ice creams. -Refer to European Dairy.What is the introduction of new flavours an example of?

Reynolds,the manufacturer of aluminum foil,developed plastic wrap in an array of different festive colours.This is an example of a new product.

The development of a strawberry-flavoured cake mix by Duncan Hines would not be considered a new product since the company was already making cake mixes.It would simply be called a line extension.

While developing new products is far from an exact science,most firms do follow a formal new-product development process.

A European dairy,which is famous for its rich ice creams,has introduced basil-,tomato-,fennel-,and oregano-flavoured ice creams. -Refer to European Dairy.Which of the following product characteristics would most likely influence the market success of these new flavours?