Question 1

A(n)_____ typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product.These people are then taken to a mock or real store where their purchases are recorded.
A) adoption-rate test
B) real test market
C) concept test
D) simulated (laboratory)market test
E) consumer juried test

Accepted Answer

The described method is a simulated (laboratory) market test, where participants are shown advertising and promotional materials for multiple products, including the test product, and are taken to a mock or real store to record their purchases. This type of test is often used to simulate a real-world buying experience in a controlled environment. The other answer choices do not fit the described method as well.

Question 2

The maker of Lysol disinfectant tested consumers' reactions to its Lysol Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads,make out a grocery list,and then "shop" in a mock store filled with real products,including the new cleaning product.This is an example of a(n):
A) adoption-rate test
B) simulated (laboratory)market test
C) concept test
D) use test
E) juried consumer test

Accepted Answer

This is a simulated or laboratory market test as the consumers were placed in a mock store setting to test their reaction to the new product. The other options such as adoption-rate test, concept test, use test, and juried consumer test involve different methods of testing and validation.

Question 3

The final stage in the new-product development process is:
A) product testing
B) market testing
C) commercialization
D) product prototyping
E) simulated marketing

Accepted Answer

Commercialization is the final stage in the new-product development process. This is when the product is launched and made available to the market. All the previous stages, such as idea generation, product design, and market research, have led up to this point. It is crucial that the product is successfully launched in order to generate revenue and establish a foothold in the market. Product testing and market testing are important steps prior to commercialization, while product prototyping and simulated marketing may or may not be used in the development process, depending on the product and industry.

Question 4

The screening and concept testing stage of the new product development process is used to:
A) eliminate undesirable ideas and predict consumer acceptance
B) refine the promotion campaign to be used with the new product
C) determine the potential profits to be gained from the new product
D) determine how long the test market should be run
E) generate new product ideas

Accepted Answer

The screening and concept testing stage is used to eliminate undesirable ideas and predict consumer acceptance. This helps to save time and resources in developing a product that is not viable in the market. Refining promotion campaigns, determining potential profits and test market duration come at later stages of the new product development process. Generating new product ideas comes before the screening and concept testing stage.

Question 5

Sara Lee,the maker of Ball Park franks,has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program.Sara Lee is going to use:
A) profitability analysis
B) market development analysis
C) discontinuous innovation
D) laboratory testing
E) test marketing

Accepted Answer

The company is using test marketing by introducing the new product in a limited market to monitor reactions of potential customers to the product and marketing program.

Question 6

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digit 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.During the _____ stage of its new-product development process,a group was assigned the task of estimating preliminary demand for the product,costs,sales,and future profitability.
A) business analysis
B) idea generation
C) concept testing
D) screening
E) test marketing

Accepted Answer

During the business analysis stage, the company analyzes the potential demand for the product, estimates its costs and sales, and evaluates the product's potential profitability. This stage is critical in determining whether the product is worth developing further or not. Therefore, A) business analysis is the most appropriate choice for this question.

Question 7

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?
A) product sampling
B) simulated product adoption
C) online test marketing
D) simulated diffusion
E) market concentration

Accepted Answer

Online test marketing has been found to be an efficient substitute for traditional methods of conducting test markets as it allows companies to reach a larger and more diverse sample of consumers at a lower cost and in a shorter amount of time compared to traditional methods such as in-person product sampling or simulated diffusion.

Question 8

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
A) Use testing
B) Test marketing
C) Concept testing
D) Laboratory testing
E) Discontinuous innovation

Accepted Answer

Test marketing involves introducing a product and marketing program to a limited market to determine customer reactions and make adjustments before a full launch. Use testing, concept testing, laboratory testing, and discontinuous innovation do not involve introducing a product to a market to gather customer feedback.

Question 9

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

Accepted Answer

The idea screening stage eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason.

Question 10

_____ evaluate new product ideas usually before any prototype has been created.
A) Concept tests
B) Simulated market tests
C) Market tests
D) User tests
E) Venture analyses

Accepted Answer

Concept tests are used to evaluate new product ideas before any prototypes have been developed. This type of test is often used to determine whether the idea is feasible, whether there is demand for the product, and whether it fits with the company's overall strategy. Concept tests can be conducted through a variety of methods, including surveys, focus groups, and interviews.

Question 11

In the _____ stage of new-product development,preliminary demand,cost,sales,and profitability estimates are made.
A) prototype screening
B) idea generation
C) concept testing
D) post-brainstorming
E) business analysis

Accepted Answer

Business analysis is the stage where preliminary demand, cost, sales, and profitability estimates are made. Prototype screening is the stage where a preliminary design is tested for functionality while concept testing is the stage where the product concept is evaluated by potential customers. Idea generation and post-brainstorming are earlier stages in the new product development process where ideas are generated and evaluated.

Question 12

In the _____ stage of new-product development,the technical feasibility of manufacturing the new product is examined as a prototype is produced.
A) screening
B) development
C) market testing
D) concept testing
E) business analysis

Accepted Answer

The development stage is where a prototype of the new product is produced and technical feasibility is examined. This stage focuses on the design and development of the product, including materials, production processes, and any necessary testing.

Question 13

Top managers at a company that publishes regional magazines considered making maps,but then decided maps were not within the company's corporate mission.Which stage of the new-product development process did its new-product development process reach?
A) development
B) idea generation
C) idea screening
D) business analysis
E) customer testing

Accepted Answer

The decision to not pursue maps indicates that the idea underwent idea screening, which is the stage where ideas are evaluated against the company's mission and goals to determine if they should move forward to development.

Question 14

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created,the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers.The consumer group was asked to evaluate the three product ideas in terms of their marketability.This stage of new-product development is called:
A) prototype screening
B) concept tests
C) market testing
D) idea manipulation
E) idea diffusing

Accepted Answer

This stage of new-product development is called concept tests, which involves presenting product ideas to a sample of potential buyers and asking them to evaluate each idea in terms of its marketability. It is done before creating a prototype. Prototype screening is done after creating a prototype to evaluate its feasibility, and market testing is done after launching the product to test its performance in the market. Idea manipulation and idea diffusing are not specific stages of new-product development.

Question 15

When selecting a test market city,a researcher should look for a city:
A) where the demographics and purchasing habits mirror the overall market for the product
B) that has media spillover from other cities to increase media alternatives
C) that is as large as possible
D) that has limited distribution
E) where there is no competition

Accepted Answer

The best choice for a test market city is one where the demographics and purchasing habits mirror the overall market for the product. This allows for a more accurate representation of how the product will perform in the larger market. The other options (B, C, D, E) do not necessarily contribute to the selection of a suitable test market city.

Question 16

During the ______ stage of the new-product development process,production starts,inventories are built up,the product is shipped to distribution points,the sales force is trained,and advertising and promotion begins.
A) commercialization
B) product testing
C) market analysis
D) product prototyping
E) simulated marketing

Accepted Answer

The commercialization stage is the final stage in the new-product development process where the product is introduced to the market. During this stage, production begins, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotions begin. Thus, choice A is the correct answer.

Question 17

The development stage of the new-product development process works best when ______ is practiced.
A) competitive product equity
B) simultaneous product development
C) laboratory testing
D) test marketing
E) the new-product paradigm

Accepted Answer

The development stage of the new-product development process works best when simultaneous product development is practiced, where cross-functional teams work together to save time and increase efficiency. This allows for different departments such as research and development, marketing, and production to work together at the same time rather than in a linear fashion. This helps to speed up the process of bringing a new product to market while reducing the risk of errors or delays. Additionally, this stage may involve laboratory testing, which is done to determine if the product meets performance and safety standards. Test marketing may also be done at this stage to obtain feedback from a select group of customers before the product is launched on a larger scale. However, simultaneous product development is the key factor that makes the development stage successful. Choice A (competitive product equity) and E (the new-product paradigm) are not relevant to this stage while C (laboratory testing) and D (test marketing) can be part of the process but are not the primary factor for success.

Question 18

Which of the following statements about simultaneous product development is true?
A) Simultaneous product development refers to the practice of developing multiple new products at the same time.
B) With simultaneous product development,all relevant functional areas and outside suppliers participate in all stages of the new-product development process.
C) All departments within the company work together at the same time,but to maintain a high level of secrecy,no one outside the company is involved in simultaneous product development.
D) Simultaneous product development actually increases the length of time it takes to get a product to market and the time the product will stay in the growth stage of its product life cycle.
E) All of these statements about simultaneous product development are true.

Accepted Answer

Simultaneous product development involves all relevant functional areas and outside suppliers participating in all stages of the new-product development process. This approach allows for a faster development process and greater collaboration among different departments and stakeholders. Option A is incorrect as simultaneous product development may not necessarily involve developing multiple new products at the same time. Option C is incorrect as outside suppliers may be involved in simultaneous product development. Option D is incorrect as simultaneous product development can actually decrease the time it takes to get a product to market and increase its success in the growth stage of its product life cycle.

Question 19

Landingham Laboratories has decided to introduce its new over-the-counter antibiotic for ear infections in a limited market consisting of only two cities,and to closely monitor the reactions of potential customers to the product and its marketing program.This is called:
A) diffusion analysis
B) use test
C) dual distribution
D) test marketing
E) laboratory testing

Accepted Answer

The strategy described in the scenario is test marketing, which involves introducing a new product in a limited market and monitoring customer reactions before a full launch. This allows the company to assess the product's potential success and make necessary adjustments before investing in a full-scale launch. Diffusion analysis involves studying how quickly a product will be adopted by the market, use test involves allowing potential customers to try the product for free, dual distribution involves using multiple channels to distribute the product, and laboratory testing involves conducting scientific experiments to test the product's effectiveness.

Question 20

The maker of Skittles candy kitchen tested and prepared hundreds of batches of candy for taste-testers,who were employees of the company.The taste-testers were instructed to identify the best formula for mint-flavored Skittles.This was an example of a(n)_____ test.
A) adoption-rate
B) concept
C) laboratory
D) market
E) diffusion

Accepted Answer

This was a laboratory test, as the candy maker was conducting experiments to test different formulas for a new mint-flavored product. The taste-testing was done in a controlled environment with employees of the company, which is a typical characteristic of a laboratory test. The other options (adoption-rate, concept, market, diffusion) do not accurately reflect the nature of this particular testing scenario.

Quiz 10: Developing and Managing Products

A(n) _____ typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product.These people are then taken to a mock or real store where their purchases are recorded.

The final stage in the new-product development process is:

The screening and concept testing stage of the new product development process is used to:

Sara Lee,the maker of Ball Park franks,has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program.Sara Lee is going to use:

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

_____ evaluate new product ideas usually before any prototype has been created.

In the _____ stage of new-product development,preliminary demand,cost,sales,and profitability estimates are made.

In the _____ stage of new-product development,the technical feasibility of manufacturing the new product is examined as a prototype is produced.

Top managers at a company that publishes regional magazines considered making maps,but then decided maps were not within the company's corporate mission.Which stage of the new-product development process did its new-product development process reach?

When selecting a test market city,a researcher should look for a city:

During the ______ stage of the new-product development process,production starts,inventories are built up,the product is shipped to distribution points,the sales force is trained,and advertising and promotion begins.

The development stage of the new-product development process works best when ______ is practiced.

Which of the following statements about simultaneous product development is true?

Landingham Laboratories has decided to introduce its new over-the-counter antibiotic for ear infections in a limited market consisting of only two cities,and to closely monitor the reactions of potential customers to the product and its marketing program.This is called:

The maker of Skittles candy kitchen tested and prepared hundreds of batches of candy for taste-testers,who were employees of the company.The taste-testers were instructed to identify the best formula for mint-flavored Skittles.This was an example of a(n) _____ test.