Question 1

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which of the following metrics should be used to measure sales performance?

Accepted Answer

Annual percent sales change by city is the most suitable metric to measure sales performance as it provides a direct measure of the actual sales growth or decline in each city. The other metrics such as consumer awareness, production costs, shelf space, and customer psychographics may indirectly affect sales performance but do not directly measure it.

Question 2

Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had

Accepted Answer

With thousands of new consumer packaged goods introduced each year,the cost to gain access to retailer shelf space is huge.Because shelf space is judged in terms of sales per square foot,a new product must displace an existing product on the supermarket shelves.Thirsty Dog! failed to generate enough sales to meet its sales per square foot requirements.

Question 3

Open innovation is

Accepted Answer

Open innovation refers to the process of involving both external and internal sources in the product innovation process. This approach encourages collaboration and the use of ideas from diverse sources to develop and market new products. Therefore, option E is the correct choice. The other options do not accurately describe open innovation.

Question 4

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

The answer of One of the eight primary marketing-related reasons...

Question 5

Before a new product or service is developed, a firm should have a precise protocol, a statement that includes which of the following?

Accepted Answer

A precise protocol should include a well-defined target market to ensure the product or service is developed to meet the needs and preferences of the intended audience.

Question 6

Hewlett-Packard, for example, introduced its HP Tablet a few years after Apple launched its original iPad, about the same time Apple introduced its next-generation iPad 2 that featured multiple apps. According to the textbook, the HP Tablet's failure was due in large part to

Accepted Answer

The answer of Hewlett-Packard, for example, introduced its HP Tablet...

Question 7

A new-product or service protocol is

Accepted Answer

The answer of A new-product or service protocol is
...

Question 8

Less than ________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Accepted Answer

Less than 3 percent of new consumer packaged goods (CPG) exceed first-year sales of $50 million, according to Nielsen research data.

Question 9

New-product or service failures may be reduced or avoided if the company developing them has

Accepted Answer

The answer of New-product or service failures may be reduced...

Question 10

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on

Accepted Answer

The passage implies that German carmakers were successful in Japan because they accommodated driving on the left-hand side of the road, which is a critical factor for customers in Japan. Therefore, American carmakers' failure can be attributed to not satisfying this customer need on a critical factor.

Question 11

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn't believe the claim and were frightened by the "cidal" in the brand name. The reason for this product failure was

Accepted Answer

The answer of Kimberly-Clark developed its Avert Virucidal tissues that...

Question 12

Groupthink occurs in a new product planning process when

Accepted Answer

Groupthink occurs when individuals suppress dissenting opinions due to the pressure to conform to the group's enthusiasm or consensus, as described in option D.

Question 13

One of the two organization-related problems of inertia that can cause new-product failures is

Accepted Answer

The "not-invented-here" problem refers to an organization's reluctance to adopt an idea or product that was developed externally, which can lead to a lack of enthusiasm and effort towards the new product, ultimately resulting in failure. This problem is related to organizational inertia, or the tendency for established organizations to resist change and innovation. Therefore, option B is the correct answer.

Question 14

________ consists of practices and processes that encourage the use of external as well as internal ideas as well as internal and external collaboration when conceiving, producing, and marketing new products and services.

Accepted Answer

Open innovation involves using both internal and external ideas and collaborations to develop and market new products and services.

Question 15

Ideally, before a new product or service is developed, a firm should have a precise ________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.

Accepted Answer

The answer of Ideally, before a new product or service...

Question 16

Open innovation helps organizations overcome ________, one of the organizational inertias common in new-product failures.

Accepted Answer

NIH (Not Invented Here) barriers refer to the reluctance of organizations to consider or adopt ideas or solutions that did not originate internally. Open innovation allows organizations to break down these barriers by seeking external ideas and collaborating with external partners, overcoming the resistance to adopt external ideas or solutions.

Question 17

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

An insignificant point of difference means that the new product does not offer a unique benefit or feature that sets it apart from existing products, which can lead to it being overlooked by potential customers. This is a common reason for new-product failure.

Question 18

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

Accepted Answer

The answer of OUT! International's Hey! There's A Monster In...

Question 19

After gaining widespread attention with the media, as well as popularity with teens, hoverboards made by a variety of manufacturers were found to catch fire or explode. Hoverboard sales suffered greatly as a result of which common reason for product failure?

Accepted Answer

Hoverboards catching fire or exploding is a clear indication of poor product quality, which would lead to a loss of consumer trust and subsequent decline in sales.

Question 20

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was

Accepted Answer

The primary reason for the failure of Fingos was an insignificant point of difference - consumers did not switch from competing snacks like popcorn and potato chips. This indicates that Fingos did not provide enough uniqueness or appeal to attract consumers away from their preferred snacks.

Quiz 9: Developing New Products and Services

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which of the following metrics should be used to measure sales performance?

Open innovation is

One of the eight primary marketing-related reasons for new-product failure is

Before a new product or service is developed, a firm should have a precise protocol, a statement that includes which of the following?

Hewlett-Packard, for example, introduced its HP Tablet a few years after Apple launched its original iPad, about the same time Apple introduced its next-generation iPad 2 that featured multiple apps. According to the textbook, the HP Tablet's failure was due in large part to

A new-product or service protocol is

Less than ________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

New-product or service failures may be reduced or avoided if the company developing them has

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on

Groupthink occurs in a new product planning process when

One of the two organization-related problems of inertia that can cause new-product failures is

________ consists of practices and processes that encourage the use of external as well as internal ideas as well as internal and external collaboration when conceiving, producing, and marketing new products and services.

Ideally, before a new product or service is developed, a firm should have a precise ________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.

Open innovation helps organizations overcome ________, one of the organizational inertias common in new-product failures.

One of the eight primary marketing-related reasons for new-product failure is

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

After gaining widespread attention with the media, as well as popularity with teens, hoverboards made by a variety of manufacturers were found to catch fire or explode. Hoverboard sales suffered greatly as a result of which common reason for product failure?

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was