Question 1

Some companies are using neuromarketing techniques to preview several versions of commercials to a group of customers, to understand which ones are most effective. The use of this technique would be commonly found in which stage?

Accepted Answer

Neuromarketing techniques used to preview commercials to a select group of customers to determine their effectiveness would fall under the market testing stage of the product development process. This is the stage where the company tests the product (or marketing material in this case) in real-world settings to gather data and feedback from potential customers.

Question 2

All of the following activities are involved in the business analysis phase of the new-product process EXCEPT:

Accepted Answer

The activities involved in the business analysis phase of the new-product process include product analysis, economic analysis, and legal examination. Investment of capital in human resource is not directly related to this phase but may occur at a later stage in the process.

Question 3

KFC is trying to understand whether they should launch the 'Double Down' Sandwich as a regular featured item on the menu. To understand the receptivity to the product in the first place, KFC offers the Double Down for sale:

Accepted Answer

By offering the Double Down in a defined area, KFC can gauge the receptivity of the product among a specific group of customers without committing to a national rollout. This approach allows KFC to test the product's appeal and make adjustments before investing heavily in a new menu item.

Question 4

At Mattel, new product prototypes are child tested in special testing playgrounds during the___________ stage in the new-product process.

Accepted Answer

The development stage is where a physical prototype or a small-scale version of the product is created for testing and refinement. Mattel tests their prototypes in special testing playgrounds during this stage to gather feedback and make necessary improvements before moving on to the next stages of the new-product process.

Question 5

Imagine you work for a production company that has been approached by one of the networks to develop a concept for a new reality show. These seem to be the years of the reality television shows-just like we had not too long ago several new shows modeled after Friends. Where are you and your co-workers most likely to look first for a concept?

Accepted Answer

Observing what's on television allows you to identify current trends and popular formats, which can inspire new concepts that are likely to resonate with audiences.

Question 6

IDEO is a company that:

Accepted Answer

IDEO exists to develop and design new products.

Question 7

When audiences are allowed to preview actual movies such as Pretty Woman and Honey, I Shrunk the Kids before they are released to the general public, it is a part of the ___________stage of the new-product process.

Accepted Answer

Market testing involves testing the actual products in a few test markets to determine consumer response, which is what happens when audiences preview movies before their general release.

Question 8

Developing the marketing strategy required to commercialize a new idea would be created in which stage?

Accepted Answer

The answer of Developing the marketing strategy required to commercialize...

Question 9

Factors such as total market dollars, market growth rate, gross profitability, and cash flow are a part of which stage of the new-product process?

Accepted Answer

These factors are analyzed during the business analysis stage of the new-product process, where the company assesses the potential profitability and feasibility of launching the product. Idea generation is focused on generating new product ideas, development is focused on creating and refining the product, and market testing is focused on gathering feedback from potential customers to refine the product and marketing strategy.

Question 10

In a presentation to Senior Management, you show a weighted point system to a number of ideas a cross-functional team generated. At what stage is this presentation most likely to occur?

Accepted Answer

The use of a weighted point system suggests that the team is in the screening and evaluation phase, where they are trying to determine the most feasible and desirable ideas to pursue further. By assigning weights to different criteria, the team can objectively evaluate each idea and compare them to each other. This is typically done before the ideas move on to the business analysis phase.

Question 11

In the new-product process, the stage that involves exposing actual products to prospective customers under realistic purchase conditions to see if they will buy is called:

Accepted Answer

This stage is called market testing, where a small batch of products is introduced in the market to test their viability by letting the prospective customers purchase them under normal conditions. The feedback received during this stage helps the company improve the product, packaging, or pricing, and to decide whether to continue with the product or not.

Question 12

Which of the following statements about the screening and evaluation stage of the new-product process is true?

Accepted Answer

Concept testing is a part of the external approach in the screening and evaluation stage of the new-product process. It involves testing the concept of the new product with potential consumers to gather feedback and identify any necessary adjustments to the concept before moving forward with development. The given example of a Friends movie mock-up being shown to moviegoers to gather their opinions is an example of a concept test. Option A is incorrect as new-product ideas are eliminated during the screening stage, not the business analysis stage. Option C is incorrect as the internal approach decides the technical feasibility of the new-product idea. Option D is also incorrect as concept testing is conducted during the external approach.

Question 13

Conducting in-person taste tests and using the Internet to virtually test new concepts are most likely to occur in which stage?

Accepted Answer

Internal and external evaluations of new-product ideas involve gathering feedback on the feasibility and potential success of new product concepts. Taste tests and virtual testing are commonly used methods of gathering this feedback. Business analysis involves assessing the financial feasibility of a product, brainstorming involves generating new product ideas, and budgeting involves allocating financial resources.

Question 14

Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments, when a friend suggested combining spices with tea. In the ___________stage of the new-product process, spices and tea were turned into a prototype.

Accepted Answer

The development stage involves creating and testing prototypes, which is exactly what happened when Sara Burns combined spices and tea to create a new product. The other stages listed (idea generation, screening and evaluation, and business analysis) come before or after the development stage.

Question 15

Marketing researchers could ask consumers if they would prefer to serve their children juice in easy-to-open pouches, plastic bottles with screw-on caps, or individual easy-open boxes. When the consumers tell the researcher which package concept they prefer, they are taking part in which stage of the new-product process?

Accepted Answer

The stage being described is concept testing, where potential consumers are asked for feedback on different product concepts before further development and investment is made. Choice A, business analysis, comes after concept testing and involves a more thorough examination of the feasibility and profitability of the preferred product concept. Idea generation, choice B, is the stage at which potential product ideas are generated, before any specific concepts are developed and tested. Development, choice C, comes after the concept has been selected and involves producing a physical product and testing it further. Therefore, D is the best choice.

Question 16

An external evaluation that consists of preliminary testing of a new-product idea (rather than the actual product)with consumers is called:

Accepted Answer

A concept test is a form of external evaluation that involves presenting a new-product idea to potential consumers to gauge their level of interest, understanding and appeal towards the product. The aim of a concept test is to determine the feasibility, acceptance and potential success of a product before it is fully developed and introduced into the market.

Question 17

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

Accepted Answer

The controlled crash of a car containing crash dummies to assess vehicular damage occurs during the development stage of the new-product process. This stage involves creating and testing prototypes to ensure the product meets safety standards and design specifications before it is launched to the market.

Question 18

The use of crash test dummies for a new seatbelt design is most likely to be used in which stage?

Accepted Answer

Crash test dummies are used in the development stage of product design to test and refine prototypes. They are not typically used in the stages of idea generation, business analysis, or screening and evaluation.

Question 19

Concept testing is used at which stage in the new-product process?

Accepted Answer

Concept testing is used during the screening and evaluation stage of the new-product process. This is the stage where ideas are evaluated and narrowed down to determine which ones are worth further development. Concept testing involves gathering feedback from potential customers to determine how they feel about a product idea, and can help to identify any necessary changes or improvements before moving forward with development.

Question 20

All of the following might be used in the development phase, except

Accepted Answer

Marketing plan development is typically done in the pre-launch phase, not the development phase. Safety testing, external solicitation of ideas, and consumer testing are all common activities in the development phase.

Quiz 10: Developing New Products and Services