Question 1

A firm's new-product strategy links the new-product development process with the objectives of the marketing departments,the business unit,and the corporation.

Accepted Answer

A firm's new-product strategy should align the development process with the marketing objectives, the business unit's goals, and the overall strategy of the corporation. This ensures that new products are developed and launched in a way that will benefit the company as a whole.

Question 2

A recording company that is introducing audio versions of early television comedies has decided to offer clips of the recordings at its Web site.This plan will increase the trialability of the new product.

Accepted Answer

By offering clips of the recordings at its website, the recording company is allowing potential customers to try out the product before purchasing it, increasing the trialability of the new product.

Question 3

Seven employees at the Ferguson Fabricators are trying to come up with ideas for new product development.The employees are all in a room together,shouting out potential ideas.The ideas are written down and evaluated as they are generated.This is an example of brainstorming.

Accepted Answer

In traditional brainstorming, ideas are generated without immediate evaluation or criticism to encourage free thinking and creativity.

Question 4

The product life cycle is so named because it is similar to the premise underlying the concept of any life cycle.The unit of interest is born,it grows for some time,and it reaches some level of maturity and stability before dying.

Accepted Answer

The statement accurately describes the basic concept of the product life cycle, comparing it to a living organism's life cycle.

Question 5

Test marketing may result in a serious problem if a firm's competitors find out about the new product before it has been fully introduced.

Accepted Answer

If competitors find out about the new product before it has been fully introduced, they may have the opportunity to create similar products or adapt their marketing strategies to better compete with the upcoming product, potentially reducing the market share and success of the new product.

Question 6

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

Accepted Answer

Most firms follow a formal new-product development process that involves various stages, such as idea generation, concept development and testing, market research, product design and development, testing and validation, and launch. However, the specific process and number of stages may vary depending on the industry, company, product, and market.

Question 7

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

Accepted Answer

The development of plastic wrap in different colors is a new product introduced by the company Reynolds, making the statement true.

Question 8

The city a firm chooses as its test market should reflect the demographic and other characteristics of the whole nation only if that is an accurate representation of the producer's intended market for the product.

Accepted Answer

The purpose of a test market is to gather information on how a product will likely perform in a larger market. If the test market accurately reflects the characteristics of the intended market, the information gathered will be more useful and reliable. However, if the intended market is different from the whole nation in terms of demographic and other characteristics, it may be more appropriate to choose a test market that is more representative of the intended market.

Question 9

Basically,all that happens in the development stage of the new-product process is that the first prototype of the product gets developed.

Accepted Answer

The development stage of the new-product process involves much more than just creating a first prototype. It also includes testing, refining, and making necessary changes to the product before finalizing it for market release.

Question 10

The two techniques that are considered most useful for generating new-product ideas are customer-generation and competitive imitation.

Accepted Answer

The two techniques considered most useful for generating new-product ideas are brainstorming and focus groups.

Question 11

The development of a strawberry-flavored 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-flavored cake mix...

Question 12

The most important factor in successful new-product introductions is a good match between product characteristics and customer desires.

Accepted Answer

A good match between product characteristics (such as features, design, quality, price, etc.) and customer desires (needs, wants, preferences, trends, etc.) is crucial for creating value for customers and gaining market share for the company. Other factors, such as effective marketing, distribution, pricing, promotion, branding, and customer service, also play important roles in new-product success, but they are often dependent on the core product offering. Therefore, companies should conduct thorough market research, product development, testing, and launch strategies to ensure that their new products meet the needs and expectations of their target customers.

Question 13

A test market is one example of a laboratory test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

Accepted Answer

A test market is not a laboratory test.

Question 14

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

Accepted Answer

The statement states that Andersen Electronics is doing estimations of costs and revenues for a new amusement park video skill game, which indicates that they are engaged in a new-product business analysis. Therefore the statement is true.

Question 15

The Sumatra Coffee Company has two new products.One is a simple hand-cranked coffee grinder.The other is a combination grinder and brewer that also can be used to dispense hot milk.Of these two,the hand-cranked grinder will probably be diffused more quickly because it is less complex.

Accepted Answer

The statement is true as the hand-cranked grinder is less complex and therefore easier to manufacture and distribute.

Question 16

The USPS has developed a personalized photo stamp that customers can create and use to mail letters.The USPS has already performed screening,development,and testing.Assuming the results coincide with profit and cost expectations,the Postal Service's most likely next step is commercialization.

Accepted Answer

The statement correctly describes the typical process of product development and commercialization.

Question 17

For a firm that adheres to the marketing concept,the logical place to start generating new-product ideas is with the customers of the firm.

Accepted Answer

The marketing concept focuses on understanding and meeting the needs and wants of customers. Therefore, it is logical to start generating new-product ideas by listening to customers' feedback, researching their preferences and trends in their behavior, etc.

Question 18

Diffusion is the process by which the adoption of an innovation spreads.

Accepted Answer

Diffusion theory explains how an innovation spreads through a population over time, often through the use of communication channels.

Question 19

Increasing globalization of markets and of competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

Accepted Answer

As markets and competition become increasingly globalized, it is important for multinational firms to consider new-product development from a global perspective in order to remain competitive and satisfy the needs of diverse customers in different regions.

Question 20

It is considered inefficient to use concept tests during the idea screening stage of the new product development process.

Accepted Answer

Concept tests can be useful during the idea screening stage to gather feedback and assess customer interest, helping to identify which ideas should be pursued further in the development process. However, concept tests should not be the only criteria used to make decisions about which ideas to pursue. Other factors such as feasibility, competitiveness, and alignment with business strategy should also be considered.

Quiz 10: Developing and Managing Products