Deck 6: Product Development

Question 1

A product that has new packaging,different features and updated designs and functions is a

A)new-to-the-market product.
B)revamped product.
C)remanufactured product.
D)new-category entry.
E)product-line extension.

Answer 1

B

Question 2

Dell doesn't currently offer an e-reader in its product line.However,if the company decided to enter the market by producing an e-reader of its own,it would be classified as what type of product?

A)product-line improvement
B)new category entry
C)revamped product
D)product-line extension
E)new-to-the-market

Answer 2

B

Question 3

The new-product strategy development stage accomplishes all of the following except

A)it outlines the costs that will be incurred for the development of new products.
B)it specifies the target markets to be served by new products.
C)it specifies how new products will fit into the company's marketing plan.
D)it provides general guidelines for the new-product development process.
E)it outlines general characteristics of the types of products the firm will develop.

Answer 3

A

Question 4

In marketing terms,the care you receive when you visit your family doctor is an example of

A)an ideA.
B)an action.
C)a good.
D)a concept.
E)a servicE.

Question 5

A group of related products marketed by the same firm is its

A)product line.
B)product mix.
C)marketing mix.
D)marketing line.
E)product category.

Question 6

Read the following statements and select the one that is not an advantage of a product-line extension.

A)Manufacturing of goods may be more efficient.
B)Customers may feel loyalty to the product line.
C)The new product can be advertised alongside existing products.
D)The new product is certain to be accepted by the market.
E)The company and brand may be easily recognized.

Question 7

A product labeled "new and improved" would fall within the category of a

A)revamped product.
B)new-category entry.
C)new-to-the-market product.
D)product-line extension.
E)remanufactured product.

Question 8

In what stage of the new-product development process would a company use a SWOT analysis and environmental scanning to determine where new products may be able to help strengthen the firm's marketing position?

A)test marketing
B)business analysis
C)idea screening
D)new-product strategy development
E)idea generation

Question 9

A technology that displaces an established technology and shakes up the industry,or a groundbreaking product that creates a completely new industry is referred to as

A)planned obsolescence.
B)inventive technology.
C)product revamping.
D)creative technology.
E)disruptive technology.

Question 10

Which of the following accurately describes new-category entries?

A)products that are new to a company but not new to the marketplace
B)products that are reintroduced into the marketplace after having been off the market for a lengthy time
C)inventions that have never been seen before and create a new market
D)products that extend and supplement a company's established product line
E)products that have new packaging,different features,and updated designs and functions

Question 11

As defined in your text,a product refers to

A)any good or service that is mass produced and sold in more than one market.
B)marketed items of value that fulfill a need of an individual consumer or business.
C)a tangible good that is received in exchange for money,time,or effort.
D)the specific combination of goods,services,or ideas that a firm offers to its target market.
E)any intangible offering a firm makes to an individual consumer or a business.

Question 12

The Ford Motor Company produces the Fiesta,Focus,Fusion,and Escape.As a group,these cars represent a

A)product line.
B)marketing line.
C)product mix.
D)marketing class.
E)marketing mix.

Question 13

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

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

Question 14

How long can a company advertise a product as "new and improved" after it hits store shelves?

A)three months
B)six months
C)one year
D)two years
E)indefinitely

Question 15

According to your text,three factors are responsible for the rapid rise in new product development.They are faster and more economical transportation,the advent of electronic communication,and

A)mass production.
B)free trade.
C)the requirement of patents and trademarks.
D)lessening of government restrictions.
E)mass marketing.

Question 16

Inventions that have never been seen before and create a new market are considered

A)new-to-the-market products.
B)new-category entries.
C)revamped products.
D)repositioned products.
E)product-line extensions.

Question 17

When Allstate Insurance advertises You're in Good Hands with Allstate,it is marketing

A)a concept.
B)an action.
C)a service.
D)an idea.
E)a good.

Question 18

The specific combination of goods,services,or ideas that a firm offers to its target market is referred to as

A)a product.
B)stock.
C)a load.
D)supply.
E)inventory.

Question 19

Which of the following is not a way to categorize new products?

A)product-line extensions
B)new-to-the-market products
C)brand development
D)new-category entries
E)revamped products

Question 20

Which of the following makes up the smallest percentage of new products but carries the most potential (and risk)for the company introducing them?

A)new-to-the-market products
B)product-line extensions
C)revamped products
D)repositioned products
E)new-category entries

Question 21

Business analysis refers to the stage of the new-product development process

A)where the direction a company will take in developing a new product is determined.
B)where it is decided if a product can be developed and marketed within the time and budget constraints of the company.
C)where a concept test is performed to determine if the product will sell.
D)where a new product is analyzed to determine its profitability.
E)where a SWOT analysis and environmental scanning are used to determine if a new product will help strengthen the firm's marketing plan.

Question 22

In what stage of the new-product development process would organizations use social media to evaluate potential new products?

A)product launch
B)idea screening
C)business analysis
D)idea generation
E)test marketing

Question 23

During which stage of the new-product development process would a firm test the marketing strategy related to the new product?

A)product development
B)idea screening
C)test marketing
D)product launch
E)business analysis

Question 24

Which of the following would be considered an internal source of idea generation?

A)an independent inventor
B)a company's customers
C)a company's employees
D)a company's competitors
E)a company's suppliers

Question 25

The stage of the new-product development (NPD)process in which a set of product concepts is generated from which to identify potentially viable new products is called idea

A)analysis.
B)screening.
C)marketing.
D)generation.
E)development.

Question 26

A concept test is part of which stage of the new-product development process?

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

Question 27

Which of the following is a key question that should be asked in the idea screening stage?

A)Is the proposed product within the company's ability to produce?
B)Will the product sell?
C)Can the product be launched in a timely manner?
D)Can the product be developed within the time and budget constraints of the company?
E)Will the product meet the minimum return-on-investment requirements?

Question 28

The procedure in which marketing professionals ask consumers for their reactions to verbal descriptions and rough visual models of a potential product is called

A)concept marketing.
B)test marketing.
C)prototype evaluation.
D)idea screening.
E)concept testing.

Question 29

A company that is introducing a new product in its final form to a geographically limited market to see how well the product sells and to get reactions from potential users is engaged in

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

Question 30

Which stage of the new-product development process is usually the most expensive for new products?

A)business analysis
B)test marketing
C)idea screening
D)product development
E)product launch

Question 31

Read the following list of tasks and select the one that does not take place during the product launch stage.

A)purchase the materials to make and package the good
B)manufacture enough of the good to fill distribution pipelines
C)prepare internal systems for taking service orders
D)hire and train employees
E)make sure the product can be manufactured at a cost low enough to generate profits

Question 32

Idea generation is the stage in the new-product development process in which

A)a collection of product concepts is generated for determining potentially viable new products.
B)it is determined if the idea fits into the company's marketing strategy and should be developed.
C)ideas are test-marketed with consumers to determine if they should be developed further.
D)prototypes are developed to test new product ideas.
E)the company determines the direction it will take in developing new products.

Question 33

Firms that generate new-product ideas by gathering both external and internal ideas are using

A)pivoting.
B)diffusion.
C)positioning.
D)disruptive technology.
E)open innovation.

Question 34

If a product idea is deemed to have the potential of being profitable in the business analysis stage,then it moves on to the

A)idea screening stage.
B)concept testing stage.
C)test marketing stage.
D)product launch stage.
E)product development stagE.

Question 35

When Fisher-Price comes up with an idea for a new toy,it needs to ensure that the children who play with the toy will not choke on any of its parts and that the toy in general will not be a hazard to the children who will be using it.In what stage of the new-product development process will these safety checks occur?

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

Question 36

Estimating the cost of a product,identifying the price at which a product will be sold,and estimating the demand for a product all take place in which stage of the new-product development process?

A)business analysis
B)test marketing
C)new-product strategy development
D)product launch
E)product development

Question 37

If a firm builds a mock shopping experience for participants to observe their response to marketing stimuli,this is referred to as a

A)focus group.
B)concept test market.
C)prototype.
D)simulated test market.
E)trial test market.

Question 38

In what stage of the new-product development process would a company make a prototype of the product?

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

Question 39

In which stage of the new-product development process do most ideas for new products and services end up getting rejected for one reason or another?

A)idea screening
B)business analysis
C)test marketing
D)product development
E)idea generation

Question 40

A mock-up of a good with the materials the firm expects to use in the final product is called a

A)template.
B)sample.
C)model.
D)prototype.
E)blueprint.

Question 41

The process by which new products are likely to be adopted,the rate at which they will be adopted,and the process through which the products will spread into markets is referred to as

A)distribution.
B)circulation.
C)time to market.
D)diffusion.
E)planned obsolescencE.

Question 42

A product that uses less energy to operate or can be recycled when the consumer is finished using it,it said to have

A)an ethical design.
B)a green design.
C)an environmental design.
D)a sustainable design.
E)an organic design.

Question 43

Wilbur does not like change.He thinks the cell phone he currently owns is just fine even though it doesn't have all the features of new phones on the market.Wilbur hopes that he doesn't lose this phone because the company doesn't make this style anymore and he doesn't want to get anything different.What type of adopter is Wilbur?

A)early majority
B)laggard
C)early adopter
D)late majority
E)innovator

Question 44

As it pertains to new product characteristics,the superior position a product enjoys over competing products if consumers believe it has more value than other products in its category is referred to as

A)product preference.
B)compatibility.
C)superiority.
D)observability.
E)competitive advantagE.

Question 45

A good or a service will likely fail to be profitable if which of the following adopters does not purchase the product?

A)late majority
B)innovators
C)early adopter
D)early majority
E)laggards

Question 46

The type of development path preferred by most supply chain management professionals is

A)concurrent new-product development.
B)sequential new-product development.
C)departmental new-product development.
D)parallel new-product development.
E)functional new-product development.

Question 47

Franco is considered to be tech savvy by his friends.He is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo.What type of product adopter is Franco?

A)early adopter
B)late majority
C)laggard
D)early majority
E)innovator

Question 48

When categorizing risk in new-product development,the highest level of risk occurs when

A)competitors copy products and sell them at a lower price.
B)supplier cost savings are not achieved.
C)the product takes sales away from existing products.
D)the product fails to generate sales.
E)inadequate supply of materials delays production.

Question 49

Burt's company is in the process of developing what he feels is a complex and risky project.Burt has decided to use a development sequence in which functional areas consecutively complete their development tasks.That way each set of activities can be easily tracked.What type of development path is Burt using?

A)sequential
B)parallel
C)concurrent
D)functional
E)departmental

Question 50

Compare the following to determine which is not a way that companies can reduce the risk of new product failures.

A)carefully listen to the customer for new product ideas
B)skip steps in the development process to market a product sooner
C)understand current market trends to anticipate demand
D)anticipate changes in the marketplace
E)be willing to fail on occasion

Question 51

Siobhan wants to join a new health club.Her roommate belongs to a club that Siobhan heard about on the radio.She decides to use her roommate's free guest passes to try out the club to see if it meets her needs.What stage of the consumer adoption process does this represent?

A)comparison
B)interest
C)adoption
D)trial
E)awareness

Question 52

Which of the following factors most likely drives the decision to use a concurrent approach in the development of high-tech products?

A)cost
B)risk
C)control
D)speed
E)complexity

Question 53

The term time to market refers to

A)how long a company spends test-marketing a product.
B)the speed with which a company launches a product.
C)the time a new product spends on the market before becoming accepted by the publiC.
D)the time it takes the marketing department to develop an advertising campaign.
E)the time it takes to develop a product.

Question 54

Which of the following accurately represents the steps in the consumer adoption process?

A)awareness,research,comparison,evaluation,and adoption
B)awareness,evaluation,trial,adoption,and feedback
C)interest,evaluation,comparison,trial,and adoption
D)interest,comparison,evaluation,trial,and adoption
E)awareness,interest,evaluation,trial,and adoption

Question 55

The practice in which companies frequently come out with new models of a product that make existing models obsolete is an ethical issue related to new-product development and is termed

A)time to market.
B)diversion.
C)diffusion.
D)planned obsolescence.
E)bait-and-switch.

Question 56

Which category of product adopters relies on others for information and buys a product because their friends have already done so?

A)late majority
B)innovators
C)early majority
D)early adopter
E)laggards

Question 57

From a marketing standpoint,which group of product adopters should marketers spend the least amount of time and effort in convincing them to buy a product?

A)early adopter
B)early majority
C)laggards
D)innovators
E)late majority

Question 58

What type of adopter is typically well respected by their peers and sought by marketers because they tend to be opinion leaders who are willing to talk to other people about their experiences with their purchases?

A)laggard
B)innovator
C)early majority
D)early adopter
E)late majority

Question 59

Nora is in the market for a new HD television.She has spent quite a bit of time gathering information and thinking about the purchase.She has asked her friends for opinions about the models they own and is happy that there are a lot of models to choose from.Nora is most likely what type of adopter?

A)late majority
B)innovator
C)laggard
D)early adopter
E)early majority

Question 60

The most common ethical issue in new-product development involves the Federal Trade Commission's definition of the term

A)healthier.
B)better.
C)guaranteed.
D)new.
E)improved.

Question 61

Which stage of the product life cycle usually lasts the longest?

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

Question 62

First introduced in 1935 and highly popular in the early 1980s,Sperry Top-Sider shoes are once again a hit with young adult consumers.These shoes are an example of a

A)low-learning product.
B)high-learning product.
C)fad product.
D)slow-learning product.
E)fashion product.

Question 63

In which stage of the product life cycle are promotional strategies geared toward reminding consumers about the product and its value to them?

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

Question 64

People who are similar to one another usually have many of the same needs,likes,and dislikes,and this similarity helps products to be adopted more readily.This refers to which characteristic regarding product adoption?

A)modernity
B)compatibility
C)complexity
D)homiphily
E)cosmopolitanism

Question 65

Which of the following is not a stage in the product life cycle?

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

Question 66

Several things have led to the rapid rate at which new products are developed.They are faster and more economical transportation,the advent of electronic communication,and _____ _____.

Question 67

What stage of the product life cycle is characterized by a full line of products,an intensive effort to maintain distribution,and a product price equal or below that of competitors?

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

Question 68

Udi's Gluten Free sells bread,bagels,cookies,pizza crust,and other products that are gluten free.The combination of all the products that Udi's Gluten Free sells is referred to as its

A)name brand.
B)product line.
C)marketing mix.
D)product mix.
E)category linE.

Question 69

The extent to which a country is connect to other cultures is referred to as

A)cosmopolitanism.
B)homiphily.
C)complexity.
D)compatibility.
E)modernity.

Question 70

Which type of product has a product life cycle curve that is a steep up-and-down curve because consumers rapidly adopt and then abandon the product?

A)high-learning products
B)slow-learning products
C)low-learning products
D)fashion products
E)fad products

Question 71

The new product characteristic that refers to how well a new product fits into potential customers' needs,values,product knowledge,and past behaviors is

A)competitive advantage.
B)observability.
C)trialability.
D)compatibility.
E)complexity.

Question 72

Products that take longer for consumers to see the benefits of or that do not have a good infrastructure in place for support are called

A)extended products.
B)complex products.
C)low-learning products.
D)high-learning products.
E)slow-learning products.

Question 73

Which stage of the product life cycle is characterized by low or negative profits and the possible need of companies to offer incentives to stores to get them to carry the product?

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

Question 74

During which stage of the product life cycle do customer service and repairs begin to take on significance as a way to differentiate a firm's products?

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

Question 75

As firms introduce new products at a faster rate,what tends to happen to existing products in the product mix?

A)The price of existing products tends to go up.
B)Existing products enter the maturity and decline stages more quickly.
C)Product life cycles become much slower.
D)Production costs for existing products tend to go down.
E)Existing products enter the maturity and decline stages more slowly.

Question 76

During which stage of the product life cycle does a company have to promote the differences between its brand and that of the competition,and attempt to portray its competitive advantage?

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

Question 77

At what stage of the product life cycle is price usually the highest?

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

Question 78

The marketers at Pantene included a trial size of their new shampoo in the September issue of InStyle Magazine.National sales increased dramatically within a few weeks,an example of this product's

A)compatibility.
B)observability.
C)complexity.
D)competitive advantage.
E)trialability.

Question 79

If a company is using coupons or buy-one-get-one-free promotions to reduce the existing inventory of a product,that product is most likely in what stage of the product life cycle?

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

Question 80

General Motors offers Chevrolet,GMC,Buick,and Cadillac as product categories.The extent to which a company offers different product categories refers to its

A)product depth.
B)product width.
C)product-mix consistency.
D)product line.