Deck 11: New Products

Question 1

A currently accepted and popular style in a given field is termed:

A) fashion.
B) style.
C) mode.
D) fad.
E) chic.

Answer 1

A

Question 2

The stage of the new product development process in which the marketer develops product ideas into alternative product concepts, attempts to ascertain the attractiveness of each concept with customers to find out how attractive each concept is to customers, and selects the best concept for further development is known as:

A) product testing.
B) prototype development.
C) concept testing.
D) market testing.
E) concept development.

Answer 2

E

Question 3

When it comes to new product development, there are degrees of newness. Which of the following is NOT a new product?

A) product improvements
B) product line extensions
C) new category
D) new inventions
E) All of the above are considered new products.

Answer 3

E

Question 4

As Williams Skincare company continued with the task of developing a new product, a spray- on hair removal cream, a group was assigned the task of estimating preliminary demand for the product, costs, sales and future profitability. The company is MOST likely in which stage of the new product development process?

A) commercialisation
B) test marketing
C) idea screening
D) concept development
E) business analysis

Question 5

During the commercialisation stage of the new product process, marketers must make a number of key decisions. Which of the following is NOT one of these decisions?

A) What to launch?
B) Where to launch?
C) Who to target?
D) How to launch?
E) When to launch?

Question 6

A research technique often used in concept testing involves comparisons of different product concepts by measuring consumers' trade- offs in preferences and intentions to buy, and simulates how consumers might react to changes in current products or to new products is known as:

A) conjoint analysis.
B) factor analysis.
C) correspondence analysis.
D) discriminant analysis.
E) cluster analysis.

Question 7

An industrial marketer asks a select group of potential customers to agree to use the new product for a limited time. This type of test marketing is known as a:

A) controlled test market.
B) trade show test.
C) dealer display.
D) product- use test.

Question 8

The stage of the product adoption process in which consumers sample the product on a limited scale to improve their understanding of product value is known as:

A) awareness.
B) interest.
C) evaluation.
D) trial.
E) adoption.

Question 9

The stage of the new product development process that attempts to reduce the number of ideas and identify those ideas with potential for further development is known as:

A) idea screening.
B) concept testing.
C) idea pre- screening.
D) idea vetting.
E) idea generation.

Question 10

Working with lead users offers a number of advantages in new product development. Which of the following is NOT one of the advantages?

A) Lead users' strong needs are likely to become more widely felt in the market in the future.
B) Lead users can often provide new- product concept and design data to manufacturers because of their own attempts to satisfy their need.
C) Lead users are heavy users of the product category or technology and are likely to become profitable customers.
D) Lead users can serve as a need- forecasting benchmark for market research.
E) All of the above are advantages.

Question 11

The Alpha Corporation is just beginning to experience new competitors attempting to draw sales from its latest new product. Alpha's product is MOST likely to be entering its:

A) introduction.
B) growth.
C) maturity.
D) decline.
E) demise.

Question 12

When a researcher poses a question or problem to an open pool of people, either online or offline, with a view to gaining as many different responses as possible in a short period of time, this is known as:

A) crowdsourcing.
B) swarming.
C) crowdsurfing.
D) mass market research.
E) rent- a- crowd.

Question 13

A market roll- out is part of the stage of the new product development process known as:

A) test marketing.
B) market strategy development.
C) product development.
D) commercialisation.
E) business analysis.

Question 14

Gary is involved in a new product development process and produces a report which contains a statement of the target market; the planned value proposition and a set of sales, profit and market share goals for the first 10 years following commercialisation. Gary is involved in which stage of the new product development process?

A) concept development
B) business analysis
C) product development
D) market strategy development
E) test marketing

Question 15

A detailed version of a new product idea, stated in meaningful customer terms is known as a(n):

A) working model.
B) sample product.
C) concept.
D) idea.
E) prototype.

Question 16

A particular type of consumer that has been found to be critical in the successful adoption of new products is known as:

A) early adopter.
B) opinion leader.
C) influencer.
D) lead user.
E) all of the above

Question 17

The group of buyers that accounts for about 2.5 per cent of all adopters and is first to adopt a new product is known as:

A) innovators.
B) early adopters.
C) laggards.
D) early majority.
E) late majority.

Question 18

The first stage in the new product development process is:

A) concept development.
B) idea screening.
C) idea generation.
D) test marketing.
E) product development.

Question 19

Of the following types of test market, the one that is LEAST expensive is:

A) standard test marketing.
B) simulated test markets.
C) geographic environment.
D) experimental environment.
E) online simulated technologies.

Question 20

A strong innovation management system should reveal several favourable outcomes. Which of the following is NOT one of the expected outcomes on innovation management?

A) demonstrates that top management rewards innovation
B) results in improved market share, sales and profits
C) creates an innovation- oriented corporate culture
D) demonstrates that top management supports and encourages innovation
E) none of the above

Question 21

The stage of the new product development process that follows concept development and concept testing is:

A) product development.
B) commercialisation.
C) business analysis.
D) market strategy development.
E) test marketing.

Question 22

The adopter category that is most suspicious of new product ideas is:

A) innovators.
B) early adopters.
C) laggards.
D) early majority.
E) late majority.

Question 23

The stages a consumer passes through when adopting a product are described by the:

A) product awareness.
B) iroduct life stage.
C) product history.
D) product adoption.
E) product life cycle.

Question 24

Which of the following is NOT one of the stages in the new product development process?

A) concept development
B) new product launch
C) product development
D) idea generation and screening
E) business analysis and marketing strategy development

Question 25

After Carlton Foods evaluated many cereal product ideas and before any prototype was developed, the cereal company selected three ideas to present to a group of consumers. The consumer group was asked to evaluate the three product ideas in terms of their market acceptance and marketability. This stage of new product development is called:

A) test marketing.
B) concept testing.
C) business analysis.
D) idea screening.
E) concept development.

Question 26

The stage of the product life cycle where inefficient competitors are most likely to exit the market is known as:

A) introduction.
B) growth.
C) maturity.
D) decline.
E) demise.

Question 27

The stage of the product adoption process in which consumers make full and regular use of a new product is known as:

A) awareness.
B) interest.
C) evaluation.
D) trial.
E) adoption.

Question 28

Assessing a new product concept with groups of target customers is known as:

A) product trial.
B) prototype testing.
C) concept testing.
D) market testing.
E) concept development.

Question 29

A marketer wanting to test a business product is likely to use which of the following test market methods?

A) New products displayed in distributor and dealer display rooms where the marketer can observe how customers respond to both the new product and competitors' products.
B) A controlled test market in which a limited supply of new products is produced and sold in defined geographic areas.
C) A product- use test in which a select group of potential customers agree to use the new product for a limited time.
D) Marketer observes and assesses buyer interest by presenting the new product at a trade show.
E) all of the above

Question 30

Virgin Galactic plans to become the world's first commercial spaceline by offering space flights to tourists before the end of the decade. Virgin has been taking reservations for its space flights since 2005 and has currently received deposits from around 600 potential passengers. However, before the company can take paying passengers, it must satisfy the Civil Aviation Authorities that the flights are safe. To that end, the company must make at least 30 crewed flights into space successfully. These crewed flights also enable the company to fine tune the flight experience. The first of these crewed flights occurred in 2010 and since then, the company has made 16 of the required 30 test flights. Virgin Galactic is in which stage of the new product development process?

A) test marketing
B) business analysis
C) product development
D) concept testing
E) concept development

Question 31

Which of the following statements BEST describes the main purpose of test marketing?

A) To test concept drawings or working models before a focus group of target customers.
B) To test marketing is to test the product itself in real market situations.
C) To test a prototype of the product under laboratory conditions.
D) To allow a select group of target customers to work with pre- release products for use in actual use situations.
E) none of the above

Question 32

During a product's life cycle, the first time a company experiences a significant increase in sales is known as:

A) introduction.
B) growth.
C) maturity.
D) decline.
E) demise.

Question 33

The stage of the product life cycle where sales and profits are likely to be the lowest is known as:

A) introduction.
B) growth.
C) maturity.
D) decline.
E) demise.

Question 34

The stages a product passes through from development to eventual decline are described by the:

A) product life cycle.
B) product awareness.
C) product history.
D) product life stage.
E) product adoption.

Question 35

A company will typically develop a prototype of a new product concept during the stage of the new product development process.

A) market strategy development
B) test marketing
C) concept testing
D) commercialisation
E) product development

Question 36

A new product department is excited about a new concept for a suntan lotion that goes on blue and fades away as the ability of the lotion to protect skin disappears. Projected sales, growth and profit looked very promising. The idea has been passed to R & D to determine if the product could be feasibly made. At this point, the new product department's idea is in the stage.

A) concept testing
B) idea generation
C) commercialisation
D) concept development
E) test marketing

Question 37

According to a report by consulting company, McKinsey, as discussed in your text, the main reason why service innovations fail is which of the following?

A) lack of a substantial market
B) lack of resources to build the market, or to withstand lumpy cash flow
C) the inability to recruit sufficient staff
D) complexity in service delivery
E) All of the above are important.

Question 38

A basic and distinctive mode of expression is termed:

A) fashion.
B) style.
C) mode.
D) fad.
E) chic.

Question 39

An industrial marketer produces a limited supply of new products and asks the sales team to sell it in a limited number of geographic markets. This type of test marketing is known as a:

A) controlled test market.
B) product- use test.
C) trade show test.
D) dealer display.

Question 40

The HiTech company operates in the technology sector and is considering offering more customised solutions to its clients. This company is MOST likely in which stage of the product life cycle?

A) introduction
B) growth
C) maturity
D) decline
E) demise

Question 41

A sales manager is currently involved in reviewing sales projections and cost estimates associated with several potential new products. The analysis would most accurately be described as:

A) market strategy development.
B) concept development.
C) concept testing.
D) business analysis.
E) product development.

Question 42

The stage of the product life cycle where a company is MOST likely to consider modifying its product is:

A) introduction.
B) growth.
C) maturity.
D) decline.
E) demise.

Question 43

The step that follows concept testing in the new product development process is:

A) test marketing.
B) concept testing.
C) creating a prototype.
D) business analysis.
E) commercialisation.

Question 44

is the stage of the new product development process that allows marketers to gain experience with marketing the product, iron out potential problems, and uncover any additional information required before committing to the expense of full introduction.

A) Market strategy development
B) Business analysis
C) Test marketing
D) Product development
E) Commercialisation

Question 45

Fashions that enter the market quickly and are typically adopted with great zeal are known as:

A) fashion.
B) style.
C) mode.
D) fad.
E) chic.

Question 46

According to your text, the most important source of new product ideas is which of the following?

A) seminars and exhibitions
B) market research consultancies
C) crowdsourcing
D) customers
E) commercial laboratories and inventors

Question 47

Under what conditions would a marketer consider forgoing the test marketing stage of the new product development process?

A) when the new product involves only minor modifications
B) when management are confident that the new product will be successful
C) when the costs of research and development are relatively low
D) all of the above
E) None of the above-all new products should be test marketed.

Question 48

Which of the following statements about the product life cycle (PLC) is FALSE?

A) Most product classes pass through the maturity stage relatively quickly.
B) Not all products pass through the S- shaped product life cycle.
C) The PLC can be applied to a product class or a product form.
D) The PLC can be applied to a brand.
E) None of the above-all statements are true.

Question 49

The last stage of the new product development process is:

A) market strategy development.
B) product development.
C) business analysis.
D) test marketing.
E) commercialisation.

Question 50

An international brand marketer has decided to launch its new product in New Zealand first. Providing that the product proves to be successful in NZ, the product will be released in Malaysia before tackling Australia, Indonesia and Thailand. This process is known as:

A) geographic release.
B) test marketing.
C) incremental distribution strategy.
D) a planned rollout.
E) a systematic product rollout.

Question 51

During new product development, the main purpose of the business analysis may perform a number of functions. Which of the following BEST describes the purpose?

A) to estimate the resources that will be needed to support the new product in its first few years
B) to evaluate the extent to which the new product proposal fits with the corporate mission
C) to evaluate the financial viability of the new product proposal
D) to outline the marketing strategies and tactics that will be used to commercialise the product
E) to evaluate the probable competitor responses to any new product launch

Question 52

Omega Inc. has put together a cross- functional working group to manage a new product concept from concept development through to commercialisation. The team consists of representatives from sales, marketing, production, R & D, Logistics and Human Resources. Omega Inc.'s approach to new product development is BEST described as:

A) standard new product development.
B) simulated new product development.
C) systematic new product development.
D) team- based new product development.
E) customer- centred new product development.

Question 53

The yo- yo is a product that makes a rapid market appearance, quickly becomes a "must- have" accessory for many young people, disappears from the market with almost the same speed that it appeared and then seems to lie dormant for a decade or more before a new incarnation of the yo- yo appears and the cycle repeats. The yo- yo is a great example of a:

A) fashion.
B) style.
C) mode.
D) fad.
E) genre.

Question 54

Which of the following product characteristics influences the rate at which consumers adopt new products?

A) the relative complexity; the ease with which the technology can be understood or used
B) the degree to which the product benefits can be observed
C) the ability to trial or sample the product on a limited scale
D) the product's relative advantage over existing technologies or substitutes
E) all of the above

Question 55

A _ is an idea for a potential new product that fits with the company's mission; a is a detailed version of the idea stated in meaningful consumer terms.

A) product concept; sample product
B) product idea; product concept
C) product idea; trial product
D) product concept; working model
E) product concept; prototype

Question 56

Under which conditions should a marketer consider investing in the cost of test marketing?

A) when management have questions about the optimal marketing mix for the new product and/or its market acceptance
B) when management are not confident of the new product's market probable success
C) when the costs of research and development are relatively high
D) all of the above
E) none of the above

Question 57

The stage of the product adoption process in which consumers seek out more information about a new product is known as:

A) awareness.
B) interest.
C) evaluation.
D) trial.
E) adoption.

Question 58

The group of buyers that account for 13.5 per cent of all adopters; are relatively reliant on group norms and adopt new products or ideas before the average person is known as:

A) innovators.
B) early adopters.
C) laggards.
D) early majority.
E) late majority.

Question 59

Buyers can be categorised according to their tendency to adopt new products. Which of the following is NOT one of the adopter groups?

A) laggards
B) non- adopters
C) early adopters
D) innovators
E) early Majority

Question 60

New product should undergo testing is to ensure that they:

A) perform efficiently.
B) deliver customer value.
C) perform safely.
D) all of the above
E) none of the above

Question 61

Within the secondary school yard, there are often people belonging to different subcultures such as Homies, Geeks, Goths and others. Each subculture is recognisable by its distinctive manner of dressing. For example, Homies wear saggy pants, baggy T- shirts, long shorts, shoes without laces and may even sport braided hairstyles in a type of "uniform" intended to identify individuals as members of Homie group. This manner of dressing is BEST described as:

A) fashion.
B) style.
C) mode.
D) fad.
E) genre.

Question 62

The head of Research and Development at Beta Corporation has been asked to forward a write up of the firm's latest new product ideas produced by the R & D department to the new product development committee for review. The write up will be used for:

A) building prototypes.
B) concept testing.
C) idea generation.
D) concept development.
E) idea vetting.

Question 63

The stage of the product adoption process in which consumers consider whether trying a new product makes sense is known as:

A) awareness.
B) interest.
C) evaluation.
D) trial.
E) adoption.

Question 64

The stage of the product life cycle that typically lasts longer and poses more marketing challenges is:

A) introduction.
B) growth.
C) maturity.
D) decline.
E) demise.

Question 65

The adopter category that is more likely to be seen as opinion leaders and is thus more important to the successful diffusion of new product ideas is:

A) innovators.
B) early adopters.
C) laggards.
D) early majority.
E) late majority.

Question 66

The stage of the product life cycle where sales begin to slow down is known as:

A) introduction.
B) growth.
C) maturity.
D) decline.
E) demise.

Question 67

The Kappa Corporation is preparing to roll out a new product and is currently deciding whether it should enter the market at the same time it knows a competitor's new product is coming out. The firm is in which stage of the new product development process?

A) test marketing
B) market strategy development
C) product development
D) business analysis
E) commercialisation

Question 68

The bustle, a steel or mesh frame which women wore attached to the back of their waists and designed to support the weight of fabric used in long skirt trains, was popular during the late nineteenth century. It enhanced the female silhouette by enlarging the buttocks. In its day, the bustle was one of the most popular female accessories, worn by women around the world from the early 1870s through to the early twentieth century. The bustle is a late nineteenth century example of a:

A) fashion.
B) style.
C) mode.
D) fad.
E) genre.

Question 69

A study of 200 moderate- to- high- technology new- product launches found that the single most important success factor is:

A) having a unique superior product.
B) quality of execution at each stage of the new product development process.
C) capacity for technological and market synergy.
D) sufficient product development funds.
E) the absence of competition.

Question 70

Which of the following statements about lead users is correct?

A) Lead users are especially important in times of rapidly changing technologies.
B) Lead users are less important in slowly evolving markets.
C) Lead users have needs that are similar to the rest of the market.
D) Lead users confront needs well ahead of most of the marketplace.
E) All of the above are true.

Question 71

Management at Greville Street Lingerie Company considered making embroidered pillow slip covers, but then decided slip covers were not within the company's corporate mission. Which stage of the new product development process did they reach?

A) idea generation
B) concept testing
C) concept development
D) idea screening
E) business analysis

Question 72

A marketer of new shower screens with a Teflon coating that is stain resistant asks a panel of consumers, "Do you understand how the addition of Teflon will benefit you?" and "Would this type of shower closure solve a cleaning problem for you?" This marketer is in which stage of new product development?

A) business analysis
B) idea screening
C) concept development
D) commercialisation
E) test marketing

Question 73

Which of the following statements about product development in service firms is false?

A) On average, innovation tends to be less innovative because service firms tend to be smaller.
B) On average, service firm innovations tend to be more incremental and less structured.
C) On average, service firm innovations tend to be social or organisational rather than based on R & D.
D) On average, service firm innovation is more likely to be based on process improvements.
E) All of the above are true.

Question 74

A test market in which researchers measure consumer responses to new products and marketing tactics in laboratory stores or simulated shopping environments is known as:

A) standard test marketing.
B) simulated test markets.
C) geographic environment.
D) experimental environment.
E) consumer panels.

Question 75

Testing new consumer products in situations like those that will be faced during full scale launch takes place in test markets called:

A) standard test marketing.
B) simulated test markets.
C) simulated shopping environment.
D) experimental environment.
E) consumer panels.

Question 76

During the market strategy development stage of the new product development process, the marketing department prepares a marketing strategy statement. Which of the following elements would NOT normally be included in the statement?

A) the planned sales, profit and market share goals for the first few years after launch
B) a description of the target market
C) an outline of the promotional activity required for product launch
D) the planned value proposition
E) the planned price, distribution and marketing budget for the first year

Question 77

Select the words that best complete the following sentence. The purpose of is to create a large number of new product ideas; the purpose of _ is to reduce the number of ideas.

A) generation; testing
B) development; filtering
C) development; selection
D) generation; vetting
E) generation; screening

Question 78

The majority of all products sold today are in stage of the product life cycle.

A) introduction
B) growth
C) maturity
D) decline
E) demise

Question 79

Which of the stages in the new product development process is the most expensive?

A) idea generation and screening
B) business analysis
C) concept development
D) commercialisation
E) product development

Question 80

Five- year- old Jessica Rosbrook of Kent in England has a dream job. A host of new toy products are delivered to her door by European toy manufacturer, TOMY. Jessica knows how lucky she is because she gets to play with these new toys before they hit the market and well before any of her friends has seen them. Jessica plays with the hottest games and toys for several weeks in her own home environment, after which she provides TOMY with a rating and review of each new product. Not only does Jessica get to keep all the toys, she has also built up an enviable toy collection and is paid a small fee for her "work." Jessica is engaged in which part of the new product development stage?

A) product development
B) test marketing
C) market strategy development
D) limited scale trial
E) commercialisation