Question 1

According to the textbook,which of the following firms is working on developing a "driverless car?"
A)Honda
B)Apple
C)Google
D)Ford
E)General Motors

Accepted Answer

According to the textbook, Google is working on developing a "driverless car."

Question 2

Which of the products listed below would be the BEST candidate for full-scale market testing?
A)totally free checking account from Bank One
B)household frequent flyer program from Delta Airlines
C)mid-priced luxury sedan made in America by Mazda
D)new iced coffee beverage from Starbucks
E)slimmer iMac computer

Accepted Answer

A new product, such as a new iced coffee beverage from Starbucks, would be the best candidate for full-scale market testing as it is a completely new product that is not currently offered by the company. This will allow the company to gage how consumers respond to the product and make any necessary adjustments before launching it on a larger scale. A free checking account from Bank One or a household frequent flyer program from Delta Airlines, for example, are not new products and have already been offered by the companies. A mid-priced luxury sedan made in America by Mazda and a slimmer iMac computer are also not new products and are not being introduced by the companies for the first time.

Question 3

Sara Burns is the owner of a company called TropicalSpice and was looking for a new product to go with her company's line of food condiments when a friend suggested combining spices from India with tea.In the __________ stage of the new-product process,the spices and tea mixtures were exposed to prospective consumers under realistic purchase conditions.
A)idea generation
B)screening and evaluation
C)business analysis
D)market testing
E)commercialization

Accepted Answer

Market testing, also known as test marketing, involves exposing a product to prospective customers under realistic purchase conditions to see how they respond. This helps the company evaluate the product's potential success and make any necessary changes before fully launching it into the market. Thus, in this scenario, the stage where Sara's company exposed the spices and tea mixture to prospective consumers would be the market testing stage.

Question 4

When the company Netflix first began,it wasn't as successful as expected.This may have been because
A)the program wasn't subscription-based.
B)too many customers failed to return the VHS cassettes.
C)the price of postage increased dramatically and ate into profits.
D)too many free movies were now available through on-demand cable TV and streaming via the Internet.
E)the primary target market,consisting of young people aged 18 to 24 years old,had declining interest in movies,spending more time listening to music and playing video games.

Accepted Answer

Netflix initially operated as a DVD rental service with a pay-per-rental model, which was not as appealing as the later subscription-based model that contributed to its success.

Question 5

Market testing refers to
A)exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
B)making sales and profit projections on prototype products to make go-no-go decisions.
C)conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best.
D)independently run comparison tests with similar products currently in the marketplace to determine which one performs best.
E)conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned.

Accepted Answer

Market testing involves exposing actual products to prospective consumers under realistic purchase conditions to evaluate their response and see if they will buy. This can help in determining the product's potential success in the market before launching it officially. Other options like making sales projections on prototypes or comparing with similar products currently in the market are not the same as market testing.

Question 6

At Mattel,Barbie is child-tested to be sure the doll cannot be broken apart and accidentally choke a child.This type of consumer or safety test occurs during the __________ stage of the new-product process.
A)new-product strategy development
B)development
C)business analysis
D)screening and evaluation
E)market testing

Accepted Answer

Consumer or safety tests typically occur during the development stage of the new-product process, which involves creating a prototype of the product and testing it for functionality and safety. The other stages listed (new-product strategy development, business analysis, screening and evaluation, and market testing) usually do not involve consumer testing for safety.

Question 7

Audiences are allowed to preview actual movies (a "sneak preview")such as The Hunger Games and Star Trek so that changes might be made before they are released to the general public during which stage of the new-product process?
A)market testing
B)business analysis
C)commercialization
D)screening and evaluation
E)concept testing

Accepted Answer

Sneak previews are part of market testing, where the product is tested in real market conditions to gather feedback and make necessary adjustments before the full-scale launch.

Question 8

Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line.A friend suggested combining spices from India with tea.In the __________ stage of the new-product process,the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well.
A)idea generation
B)screening and evaluation
C)business analysis
D)market testing
E)commercialization

Accepted Answer

Market testing involves distributing the new product to a small sample of the target market to gauge its potential success. In this case, Nicole distributed the spice and tea mixtures to grocery stores in Portland and Seattle to see if they sold well, which falls under the market testing stage of the new-product process.

Question 9

If you watch much television,you have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage.In the new-product process,this safety test would occur during the __________ stage.
A)development
B)market testing
C)idea generation
D)screening and evaluation
E)business analysis

Accepted Answer

The development stage involves creating and testing prototypes, including safety tests like crash tests, to ensure the product meets design and safety standards before it is finalized for production.

Question 10

Test marketing involves offering a product for sale
A)to random sample of people in the top ten major cities of the U.S.
B)in as broad a geographic region as possible.
C)to consumers that are representative of the target market.
D)on a limited basis in a defined area.
E)only on certain days of the week and hours of the day.

Accepted Answer

Test marketing involves offering a product for sale on a limited basis in a defined area to gauge interest and gather feedback. This allows companies to test their product or marketing strategies before a full launch, without risking significant financial losses or damage to their brand reputation.

Question 11

Another name for the steps in the service delivery process is __________.
A)service interactions
B)access points
C)path-analysis
D)service encounters
E)wheel of services

Accepted Answer

Service encounters is another name for the steps in the service delivery process, as it refers to the direct interactions between the customer and the service provider during the service delivery process. The other options are not specific enough or do not encompass all the steps in the service delivery process.

Question 12

All of the following were changes in the Netflix business model since its founding in 1997 EXCEPT:
A)Netflix announced a pricing change that separated DVDs by mail and online offerings.
B)Netflix began offering downloadable movies for sale at $9.99 each.
C)Netflix created a subscription VHS cassette service so customers can receive them through the mail.
D)Netflix has several "copycat" competitors,such as Amazon.
E)Netflix began to offer original TV programming.

Accepted Answer

Netflix never offered downloadable movies for sale at $9.99 each; instead, it transitioned from DVD rentals to streaming services and later began producing original content.

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.
A)commercialization
B)screening and evaluation
C)business analysis
D)development
E)market testing

Accepted Answer

Breyer's new product was in the market testing stage, where a limited scale introduction of the product is done to determine consumer reactions before national distribution of the product.

Question 14

Since its launch,Netflix has changed its business model in order to
A)compete with Blockbuster's retail store expansion.
B)respond to changing consumer needs and the evolution of new technologies.
C)expand its focus from entertainment to movie collectibles and memorabilia.
D)avoid head-to-head competition with satellite television providers,which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix.
E)begin preparations to withdraw from its traditional method of mail delivery,which takes 2-3 business days,and introduce next-day delivery through FedEx.

Accepted Answer

The passage states that Netflix changed its business model "in order to respond to changing consumer needs and the evolution of new technologies." This suggests that the company recognized the importance of adapting to market conditions and staying up-to-date with technological advancements. The other options presented are not supported by the passage.

Question 15

All of the following are examples of test markets EXCEPT:
A)controlled test market
B)concept test market
C)simulated test market
D)laboratory test market
E)standard test market

Accepted Answer

All of the other options (controlled, simulated, laboratory, and standard) are examples of test markets. A concept test, however, is not a type of test market. It is a research method used to assess consumer reactions to a new product idea or concept before it is developed and launched to the market.

Question 16

In the new-product process,product ideas that survive the business analysis stage proceed to the __________ stage.
A)market testing
B)screening and evaluation
C)business analysis
D)development
E)commercialization

Accepted Answer

The answer of In the new-product process,product ideas that survive...

Question 17

New-product strategy development calls for INGenius Co.to develop a battery recycler for the business market.Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element?
A)market testing
B)idea generation
C)screening and evaluation
D)development
E)business analysis

Accepted Answer

Development is the stage in the new-product process where the product design is finalized, and the product is tested, manufactured, and introduced to the market. Therefore, it is during the development stage that manufacturing issues become an especially important element.

Question 18

After the new owner purchased a fully equipped yogurt factory,it took a yogurt master a year and a half to come up with the perfect formulation for Chobani Greek Yogurt.The most likely stage of the new-product process during which this time was spent is __________.
A)development
B)market testing
C)idea generation
D)screening and evaluation
E)business analysis

Accepted Answer

The formulation of the perfect Chobani Greek Yogurt is part of the development stage of the new-product process. This is when the actual creation or design of the product takes place, and it can involve extensive research and testing until the desired result is achieved.

Question 19

Which of the following activities are accomplished during the development stage for services?
A)developing off-peak pricing strategies
B)using fast prototyping to improve the initial service design
C)ensuring that employees have the commitment and skills to meet customers' expectations and sustain their loyalty
D)using capacity management models to match service availability with consumers' needs
E)analyzing the sequence of service encounters

Accepted Answer

The answer of Which of the following activities are accomplished...

Question 20

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as
A)development.
B)market testing.
C)business analysis.
D)commercialization.
E)screening and evaluation.

Accepted Answer

Market testing is the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy. This helps the company to determine whether or not the product will be successful before it is brought to market.

Quiz 10: Developing New Products and Services

According to the textbook,which of the following firms is working on developing a "driverless car?"

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

When the company Netflix first began,it wasn't as successful as expected.This may have been because

Market testing refers to

At Mattel,Barbie is child-tested to be sure the doll cannot be broken apart and accidentally choke a child.This type of consumer or safety test occurs during the __________ stage of the new-product process.

Audiences are allowed to preview actual movies (a "sneak preview") such as The Hunger Games and Star Trek so that changes might be made before they are released to the general public during which stage of the new-product process?

If you watch much television,you have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage.In the new-product process,this safety test would occur during the __________ stage.

Test marketing involves offering a product for sale

Another name for the steps in the service delivery process is __________.

All of the following were changes in the Netflix business model since its founding in 1997 EXCEPT:

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.

Since its launch,Netflix has changed its business model in order to

All of the following are examples of test markets EXCEPT:

In the new-product process,product ideas that survive the business analysis stage proceed to the __________ stage.

New-product strategy development calls for INGenius Co.to develop a battery recycler for the business market.Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element?

After the new owner purchased a fully equipped yogurt factory,it took a yogurt master a year and a half to come up with the perfect formulation for Chobani Greek Yogurt.The most likely stage of the new-product process during which this time was spent is __________.

Which of the following activities are accomplished during the development stage for services?

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as