Question 1

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.
A) controlled test market
B) simulated test market
C) standard test market
D) systematic sample
E) accidental sample

Accepted Answer

In a controlled test market, specific groups of customers and stores are selected to test new products and marketing tactics in a controlled environment, allowing for greater control and accuracy in measuring the effectiveness of the strategies. Simulated test markets use computer models to predict outcomes, while standard test markets involve launching a product in a typical marketing environment. Systematic and accidental sampling are methods of selecting participants in a research study, and are not specific to test marketing.

Question 2

Introducing a new product into the market is called ________.
A) test marketing
B) simulation
C) co-marketing
D) commercialization
E) segmentation

Accepted Answer

Commercialization refers to the process of introducing a new product into the market. Test marketing is a part of the process of commercialization. Simulation refers to a technique used to imitate real-life situations. Co-marketing is a strategy where two or more brands come together to market a product. Segmentation refers to the process of dividing a market into smaller groups with similar needs or characteristics.

Question 3

Which of the following statements is true of test marketing?
A) The amount of test marketing needed remains constant for each new product.
B) When the costs of developing and introducing the product are low, the company will have to do significant test marketing.
C) Test marketing is seldom done on products that are risky.
D) Test marketing is seldom done when management is not sure of the product or its marketing program.
E) Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

Accepted Answer

Test marketing can be costly and time-consuming, which may give competitors an advantage. The amount of test marketing needed may vary for each new product, and it is not necessarily true that low development costs will result in less test marketing. Risky products may still be tested, and management may still choose to conduct test marketing even if they are unsure about the product or marketing program.

Question 4

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.
A) where to launch the new product
B) how to launch the new product
C) why to launch the new product
D) what pricing strategies to implement
E) what marketing mix elements to use

Accepted Answer

The answer of According to the commercialization stage of the...

Question 5

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?
A) retest the product in additional markets
B) develop a planned market rollout over time
C) liquidate its assets to gain capital and capacity
D) seek the help of a nationally known consultant
E) develop a prototype

Accepted Answer

Developing a planned market rollout over time would allow Skyrim Corp. to gradually expand its distribution and production capacity, while also building up the necessary capital to do so. Retesting the product in additional markets could be useful, but it may not address the issue of lacking capital and production capacity. Liquidating its assets would likely result in a loss of resources and would not necessarily solve the problem. Seeking the help of a consultant or developing a prototype may also be useful, but they may not directly address the issue of lacking capital and capacity.

Question 6

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?
A) controlled test markets
B) simulated test markets
C) standard test markets
D) ambush marketing
E) affinity marketing

Accepted Answer

The answer of Yummy Peanut Butter created a new coconut-flavored...

Question 7

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.
A) how to develop a marketing strategy
B) which market to compete in
C) whether to launch the new product
D) how to compete in the market
E) how long to compete in the market

Accepted Answer

Test marketing is done to make a final decision about whether to launch the new product or not. It helps management to assess the viability of a new product in the market by testing various marketing variables such as pricing, packaging, advertising, etc. Based on the results of the test marketing, management can make an informed decision about whether to introduce the product in the market or make necessary changes before launching the product.

Question 8

All of the following are disadvantages of test marketing EXCEPT that test marketing ________.
A) is typically expensive
B) can be time consuming
C) enables competitors to gain advantages
D) encourages dishonesty among participants
E) fails to guarantee product success in the market

Accepted Answer

Test marketing may have disadvantages such as being expensive, time consuming, enabling competitors to gain advantages, and failing to guarantee product success in the market. However, it does not necessarily encourage dishonesty among participants. In fact, test marketing often relies on honest and accurate feedback from participants to make informed decisions about products.

Question 9

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?
A) concept testing process
B) customer value proposition
C) customer-centered new product development
D) customer lifetime value
E) team-based new product development

Accepted Answer

Customer-centered new product development explicitly focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. The other options, while related to customers, do not have the same emphasis on customer satisfaction and problem-solving.

Question 10

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.
A) test marketing
B) focus group surveys
C) commercialization
D) concept testing
E) business analysis

Accepted Answer

The answer of Once the prototype of Wainwright Industries' new...

Question 11

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new product development process. Fantastic Flavors uses a ________ approach.
A) customer-centered new product development
B) sequential product development
C) team-based new product development
D) heuristic
E) functional

Accepted Answer

Fantastic Flavors is using a team-based approach in their new product development process by having employees from different functional areas work together in cross-functional groups. This allows for a more collaborative and efficient process, as well as incorporating varied perspectives and expertise.

Question 12

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.
A) why many companies engage in crowdsourcing
B) one of the problems associated with test marketing
C) why prototypes are so important
D) how idea screening can make a product a commercial success
E) the importance of different sources for idea generation

Accepted Answer

This situation demonstrates one of the potential drawbacks of test marketing, which is that competitors can quickly react and introduce similar products to capture market share.

Question 13

Under a team-based new product development approach, ________.
A) a single departmental team works to complete different stages of the process before passing the new product along to the next department and stage
B) the organizational tension and confusion is less than under the sequential approach
C) company departments work closely together in cross-functional teams
D) a bottleneck at one phase can seriously delay an entire project
E) the new product passes from one department to another before finalizing

Accepted Answer

Under a team-based new product development approach, company departments work closely together in cross-functional teams to complete the different stages of the process simultaneously. This approach reduces organizational tension and confusion and allows for quicker decision-making, but it can also present challenges if there is a bottleneck at one phase that delays the entire project.

Question 14

A company getting ready to launch a new product must make several decisions. The company must first decide on ________.
A) whether to launch the product in a single location
B) whether to launch the product in a region
C) whether to launch the product into full national distribution
D) when to introduce the product
E) when to develop a planned market rollout

Accepted Answer

The answer of A company getting ready to launch a...

Question 15

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.
A) timing
B) location
C) organizational structure
D) test marketing
E) product mix

Accepted Answer

The answer of Steelz Inc. has designed a process that...

Question 16

________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
A) Team-based product development
B) Simultaneous product development
C) Sequential product development
D) Horizontal integration
E) Vertical integration

Accepted Answer

Sequential product development is the approach in which each department completes its stage of the new product development process before passing it on to the next department and stage. This approach ensures that each stage is completed thoroughly before moving on to the next stage, reducing the risk of errors or issues being carried forward.

Question 17

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new product development process before P&G could.
A) commercialization
B) co-marketing
C) idea generation
D) idea screening
E) simulation

Accepted Answer

General Foods was able to enter the commercialization stage of the new product development process before P&G could, as General Mills rushed to market its own product before the Duncan Hines product had a chance to gain traction.

Question 18

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.
A) controlled test market
B) simulated test market
C) standard test market
D) focus group
E) survey

Accepted Answer

A simulated test market is a controlled virtual environment where new products and marketing tactics can be tested before launching them in the market. It is a cost-effective alternative to a standard test market and allows companies to try out different marketing scenarios and gather feedback from participants in a controlled setting.

Question 19

Which of the following involves costs that most likely occur during the commercialization stage of new product development?
A) building or renting a manufacturing facility
B) paying target customers for product feedback
C) determining the product's planned distribution
D) developing a prototype of the product
E) identifying target markets

Accepted Answer

Building or renting a manufacturing facility typically occurs during the commercialization stage as the product is ready for mass production and distribution.

Question 20

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
A) when the new product requires a major investment
B) when management lacks confidence in the new product
C) when management lacks confidence in the marketing strategy
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low

Accepted Answer

When the costs of developing and introducing the product are low, the company may prefer to skip test marketing to save on expenses. Test marketing can be a costly process, and if the product's success is highly likely, the company may choose to introduce it directly into the market.

Quiz 9: New Product Development and Product Life-Cycle Strategies

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

Introducing a new product into the market is called ________.

Which of the following statements is true of test marketing?

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

All of the following are disadvantages of test marketing EXCEPT that test marketing ________.

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new product development process. Fantastic Flavors uses a ________ approach.

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.

Under a team-based new product development approach, ________.

A company getting ready to launch a new product must make several decisions. The company must first decide on ________.

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.

________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

Which of the following involves costs that most likely occur during the commercialization stage of new product development?

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?