Question 1

Saying, "Okay, maybe some ideas are in fact bad ideas" corresponds to which step in the process of creating new products?

Accepted Answer

This statement reflects the process of evaluating and filtering ideas, which is part of in-house winnowing and refinement.

Question 2

Which of the following stages occurs last?

Accepted Answer

The decline stage occurs last in the product life cycle, following the maturity stage.

Question 3

The opposite of a top-down approach is usually called

Accepted Answer

The answer of The opposite of a top-down approach is...

Question 4

The process of developing new products depends first on a company's

Accepted Answer

A company's culture influences its approach to innovation, creativity, and risk-taking, which are crucial for developing new products.

Question 5

A(n) __________ approach is found frequently among companies with strong engineering orientations, pharmaceutical and biomedical firms, financial services, and many high-technology companies.

Accepted Answer

The answer of A(n) __________ approach is found frequently among...

Question 6

The goal of forecasting is to estimate the "$SP." What does "$SP" stand for?

Accepted Answer

Sales potential refers to the maximum sales level that a company can achieve under ideal conditions, and forecasting aims to estimate this potential to guide business strategies.

Question 7

Because customers typically overstate their purchase intention, research has suggested ratcheting down the purchase intention estimate by a factor of

Accepted Answer

The answer of Because customers typically overstate their purchase intention,...

Question 8

The test marketing was successful.Now, Jules needs to estimate the sales potential of the new all-natural cleaning product her company developed.Which of the following equations should she use?

Accepted Answer

The correct equation to estimate sales potential ($SP) is $SP = MP × PI × Pr, where MP is market potential, PI is purchase intention, and Pr is price. This equation considers the multiplicative effect of these factors on sales potential.

Question 9

Marketing management is involved throughout the new product development process, and especially in the __________ stage.

Accepted Answer

The answer of Marketing management is involved throughout the new...

Question 10

What term refers to the likelihood that the target segment will buy the product?

Accepted Answer

Purchase intention refers to the likelihood that the target segment will buy the product.

Question 11

When testing the best color for a new detergent, SoapSuds Inc.set up a test market that uses a virtual shopping experience to give customers a chance to buy the product (or not), which is called a(n) __________ test market.

Accepted Answer

A simulated test market is a virtual shopping experience designed to mimic real-world purchasing scenarios, allowing companies to test consumer reactions to products without launching them in a physical market.

Question 12

Adam and Jose are attempting to identify the bundle of product features most likely to attract customers.Jose argues that they should conduct a(n) __________, which involves comparing different combinations of attributes, and the customer simply determines which product combination sounds best, next best, and so on.

Accepted Answer

A conjoint study involves comparing different combinations of product attributes to determine which combination customers prefer, making it suitable for identifying attractive product features.

Question 13

__________ are 40-50 small metropolitan areas throughout the United States that have characteristics, such as demographics and socioeconomic status, that are representative of the country as a whole.

Accepted Answer

The answer of __________ are 40-50 small metropolitan areas throughout...

Question 14

Which of the following steps comes immediately after idea creation in the new product development process?

Accepted Answer

In the new product development process, after idea creation, the next step is in-house winnowing and refinement, where ideas are screened and refined to select the most promising ones for further development.

Question 15

Top-down is also called __________ because the idea comes from within the company, and then feedback from the outside is sought later in the process.

Accepted Answer

Top-down is referred to as "inside-out" because it starts with internal ideas and strategies, and then seeks external feedback.

Question 16

In order to calculate sales potential, we need to know what three things?

Accepted Answer

Sales potential is calculated by understanding the market potential, the purchase intention of the target audience, and the price at which the product will be sold.

Question 17

During __________, a new product (good or service) is brought into the marketplace with heavy marketing spending.

Accepted Answer

During market introduction, a new product is launched into the marketplace, often accompanied by significant marketing efforts to build awareness and interest.

Question 18

At which stage in the new product development process does the company have a number of ideas that it thinks might work and gets customers' feedback as to which ideas sound most promising?

Accepted Answer

Concept testing involves presenting the product ideas to potential customers to gather feedback on which concepts are most appealing and promising.

Question 19

Using customer data from test marketing to predict the product's likely success is known as

Accepted Answer

Forecasting involves using data, such as customer data from test marketing, to predict future outcomes like a product's success.

Question 20

Focus groups and web surveys are used mostly during which phase of product development?

Accepted Answer

Focus groups and web surveys are primarily used during the concept testing phase to gather consumer feedback and validate ideas before further development.

Quiz 8: New Products and Innovation