Question 1

Ideally, test marketing should follow which stage in the new-product development process?

Accepted Answer

Test marketing typically follows the product development stage, where the product is developed into a prototype and tested in a real market setting to gauge consumer response before full-scale production and commercialization.

Question 2

Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process.

Accepted Answer

Clive and his colleagues are analyzing the potential profitability of the new plastic laminate. This is part of the business analysis phase, where the company evaluates the financial feasibility of the new product.

Question 3

"Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development.

Accepted Answer

The question "Is the demand strong enough?" is related to assessing the market potential and profitability of the new product, which is done during the business analysis phase. This phase involves analyzing the cost of producing and marketing the product, estimating potential sales, and determining if the investment is likely to yield a satisfactory return. The other phases, such as screening, concept testing, product development, and test marketing, focus on other aspects of new-product development such as generating ideas, evaluating product concepts, designing and developing the product, and testing it in the market.

Question 4

Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ____ stage of the new-product development process.

Accepted Answer

Test marketing involves launching the product in a specific geographic area to gauge consumer response before a full-scale launch. Given that Angela and Ralph have doubts about the promotional and pricing campaigns, test marketing would allow them to gather feedback from consumers and make necessary adjustments before fully launching the product. Therefore, D is the best choice.

Question 5

As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process?

Accepted Answer

Justin is working on the prototype, which is part of the product development phase of the new-product development process. This involves creating and testing a prototype before moving on to commercialization or test marketing. The other options (idea generation, screening, and commercialization) come before or after the product development phase.

Question 6

After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

Accepted Answer

The functional testing of the prototype is a part of the product development phase, which involves creating and testing prototypes, conducting extensive testing, and making necessary adjustments to achieve performance and safety qualifications. The other phases listed - product design, screening, concept testing and test marketing - occur earlier in the new-product development process.

Question 7

Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?

Accepted Answer

Concept testing is the stage of the new-product development process where customers are first exposed to the new product idea. This stage involves presenting the idea or concept to potential customers to gauge their reactions, preferences, and interest in the product, allowing the company to make any necessary changes or adjustments before investing further resources in product development.

Question 8

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the ____ phase of the new-product development process.

Accepted Answer

Test marketing is the phase where a small-scale launch of the product is done in a specific region to gauge consumer response and make necessary adjustments before a full-scale commercial launch. Since the managers are planning to go directly to regional commercialization, they are skipping the test marketing phase.

Question 9

One disadvantage of test marketing a new product is that

Accepted Answer

Competitors may copy the product during the test marketing phase, as this period allows them to observe and analyze the new product's features, benefits, and market reception, potentially leading to imitation or improvement upon the original product before it is fully launched.

Question 10

Which of the following phases of new-product development is likely the least costly for the firm?

Accepted Answer

Concept testing is the phase where the firm tests the basic idea of the new product, which is usually done through surveys, interviews, or focus groups. As it is a preliminary phase, it typically involves low costs compared to the other phases of new-product development.

Question 11

The test marketing stage

Accepted Answer

The test marketing stage involves a sample launching of the entire marketing mix to observe and evaluate consumer response. It typically comes after business analysis and before a full product launch. While it can help to mitigate the risk of product failure, it cannot ensure that the product will not fail. Additionally, while it may give a temporary advantage, test marketing does not prevent competitors from copying the product.

Question 12

Select the true statement concerning test marketing.

Accepted Answer

Test marketing is a limited introduction of the product in areas chosen to represent the intended market, where the firm can study actual consumer behavior under realistic market conditions. It is conducted after the marketing mix variables have been finalized, but it is not guaranteed that a successful test market will ensure success upon total introduction. Large corporations may conduct test marketing in multiple areas to gather more data and insight. Thus, options A, B, D, and E are incorrect.

Question 13

Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.

Accepted Answer

Break-even analysis is used during the business analysis stage to determine the point at which a product's total revenue equals its total costs, which is essential for determining the product's profitability and potential success in the market.

Question 14

If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast U.S. region, he might want to engage in ____ to reduce the validity of the other firm's results.

Accepted Answer

Jamming is a tactic used by companies to interfere with a competitor's test marketing efforts, often by introducing their own promotions or products to skew the competitor's results.

Question 15

Kara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked, "What level of quality are we building into the camping gear?" Based on this question, Kara and her team are most likely in the ____ phase of new-product development.

Accepted Answer

The question asked by the team member indicates that the product is in the product development phase, where the focus is on building a quality product that meets customer needs and specifications.

Question 16

Patrick is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the ___ phase of the new-product development process.

Accepted Answer

The questions that Patrick has been asked indicate that he is participating in the concept testing phase, which is the stage where potential customers provide feedback on the new product idea. The other options are not fitting as concept testing aims to understand consumer reaction to the new product concept, while business analysis is focused on financial viability, idea screening involves internal evaluation of the feasibility of products before testing them in the market, idea generation is the brainstorming stage at the beginning of the process, and test marketing is the final stage before full launch.

Question 17

Marcellis is a product manager for a major electronics company. His current project is the development and introduction of a new smartphone. Since there are a number of smartphones currently out on the market, Marcellis is concerned about product failure. Currently, Marcellis and his team are in the screening phase of the new product development process. Has his team already passed that phase that is best able to measure the product failure concern?

Accepted Answer

The test marketing phase, which comes after the screening, concept testing, and business analysis phases, is the best phase to measure product failure concern because it involves launching the product in a limited market to gauge consumer response before a full-scale launch.

Question 18

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process?

Accepted Answer

Karla is asking Jeff to conduct a business analysis, which involves gathering financial data and making projections to determine whether the new product idea is financially viable. This is the stage that follows idea generation and screening, and precedes test marketing and commercialization.

Question 19

PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test market characteristics would be least useful to PepsiCo when testing the new soft drink?

Accepted Answer

Tourism being a major industry in the area would have little to no impact on the testing of a new soft drink flavor. The other characteristics mentioned, such as research and audit services, retailer cooperation, lack of competitor interference, and stable year-round sales of soft drinks, would all be useful in testing the new product.

Question 20

The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is

Accepted Answer

During the product development phase, the organization focuses on determining the technical feasibility of producing the new product and ensuring it can be produced at a cost that allows for a reasonable selling price. This phase involves creating prototypes and conducting detailed analysis of the product's design, materials, and manufacturing processes.

Quiz 12: Developing and Managing Products