Question 1

Which of the following is not a phase in the new product development process?

Accepted Answer

Modification is not a phase in the new product development process. The five phases of the new product development process include idea generation, screening, concept testing, business analysis, development, test marketing, and commercialization.

Question 2

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Accepted Answer

A functional modification is one that improves the performance or safety of the product. Redesigning a bicycle to improve its safety would fall under this category. Visual, quality, aesthetic, and texture modifications may also be made to a bicycle, but they are not specifically related to improving safety.

Question 3

TCBY wants to expand its line of food products.The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks.The company is in which phase of new product development?

Accepted Answer

TCBY is still in the initial phase of new product development, where it is trying to generate ideas for food products that could be added to its menu. Sending surveys to consumers to determine their preferences is a part of the idea generation process.

Question 4

Hillary has a new product idea that aligns well with her company's current organisational resources.She puts together a presentation for potential buyers and requests feedback on their reactions and suggestions.Hillary is

Accepted Answer

Hillary is gathering feedback on her product idea from potential buyers, which is a form of concept testing. This process helps her to gauge interest and make any necessary changes before moving forward.

Question 5

Why should companies develop and introduce new products?

Accepted Answer

Companies should develop and introduce new products because failing to do so can threaten the future success of the firm. Stagnation and a lack of innovation can lead to loss of market share, decreased profits, and ultimately, failure of the business. It is crucial for companies to stay ahead of the competition and meet their customers' evolving needs and preferences through the development of new, relevant products.

Question 6

When Duracell came out with a new battery that significantly outlasted the company's earlier product, the battery had undergone a(n) ____ modification.

Accepted Answer

The modification mentioned in the scenario relates to the battery's ability to last longer, which is a functional improvement. The other options (B) feature, (C) quality, (D) aesthetic, and (E) market, do not accurately describe the modification mentioned in the scenario.

Question 7

Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent.The company presented its proposed new product to a group of potential customers in the form of a short explanation and questionnaire.Lever Brothers is conducting

Accepted Answer

Lever Brothers is conducting concept testing by presenting the proposed new product to potential customers and obtaining their feedback through a questionnaire.

Question 8

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas.Now that there is a list of product ideas, the next step is

Accepted Answer

Screening is the next step after generating new product ideas. It involves evaluating the ideas against specific criteria such as feasibility, profitability, strategic fit, and market potential. This will help to filter out the ideas that are not worth pursuing and identify those that are most promising for further development. Once the screening process is complete, the remaining ideas will move on to product development.

Question 9

The largest number of product ideas are rejected during the ____ stage of new product development.

Accepted Answer

During the screening stage, companies evaluate and filter out unfeasible or unsuitable ideas, leading to the rejection of the largest number of product ideas.

Question 10

The stage of new product development in which potential customers are presented with a written or oral description of the product to determine their initial attitudes and buying intentions is called

Accepted Answer

The stage described is concept testing, which involves presenting potential customers with a description of the product to gauge their initial interest and intended buying behavior. The other options listed are different stages in the new product development process: screening involves evaluating product ideas, test marketing involves launching a product in a limited market to gather feedback, business analysis focuses on financial projections, and commercialization is the stage where the product is launched for general sale.

Question 11

What type of product modification is likely to make the greatest impact on a food product?

Accepted Answer

The answer of What type of product modification is likely...

Question 12

The stage in the evolution of a new product in which a pool of ideas is created is called

Accepted Answer

Idea generation is the stage in which a pool of ideas is created for a new product. Product development comes after idea generation, screening is the process of evaluating ideas, test marketing is the stage of introducing the product to a small market to gather feedback, and business analysis is the process of evaluating the viability of the product from a financial perspective.

Question 13

Products that are designed to be similar to and compete with existing products of other firms are called

Accepted Answer

Products that are designed to be similar to and compete with existing products of other firms are called imitations. They are often referred to as "copycats" and can be illegal if they infringe on the original company's patents or trademarks.

Question 14

The stage in the evolution of new products in which ideas that match company objectives are analysed as to whether the firm has the required expertise for the product's development and marketing is called

Accepted Answer

This stage is called screening, which involves evaluating the feasibility of the proposed ideas to determine whether they are aligned with company goals and whether the firm has the expertise to develop and market the product.

Question 15

All of the following are stages in the evolution of new products except

Accepted Answer

Product modification is not a stage in the evolution of new products, rather it is a process of improving or changing an existing product. The stages in the evolution of new products include screening, product development, business analysis, commercialisation, and market testing.

Question 16

The Glo-Brite Company is considering development of a new children's toothpaste in fun-shaped dispensers.Before performing any business analysis on the product, Glo-Brite would like an initial response from potential customers to determine interest in a toothpaste of this type.Glo-Brite will begin ____ to gather the information.

Accepted Answer

Concept testing involves gathering feedback from potential customers on a new product idea before proceeding with further business analysis or product development. Therefore, it is the best choice for Glo-Brite to get an initial response from potential customers about their interest in the new children's toothpaste in fun-shaped dispensers.

Question 17

Entirely new products are called

Accepted Answer

Entirely new products are defined as innovations, as they are new and different from existing products in the market.

Question 18

Borden, Inc., wants to develop a new line of great tasting, low-calorie, low-fat, and low-cholesterol processed cheese products.The managers are studying whether demand is strong enough and whether the new line will yield a favourable return on investment.The managers are currently in which phase of new product development?

Accepted Answer

The managers are currently in the phase of business analysis, where they are studying demand and potential return on their investment for the new product line.

Question 19

As the product idea committee of Foster Manufacturing Company went through its list of possible new products, it rejected various ideas for one or more reasons.Which of the following is least likely to be a reason for rejection?

Accepted Answer

The least likely reason for rejection would be that the product would allow the company to increase its annual sales by 20 percent. This is because the goal of the product idea committee is to find new products that will bring in more revenue for the company, so a product that would increase sales would typically be a desirable option. The other options (A, B, D, and E) are all valid reasons for rejecting a product idea.

Question 20

After several years of success with the product line, Procter & Gamble introduced its popular Sure deodorant in three new scents.This is an example of ____ modification.

Accepted Answer

Aesthetic modification refers to changes made to the appearance or sensory appeal of a product. In this case, the introduction of new scents to the Sure deodorant line is a modification made to enhance its aesthetic appeal to customers.

Quiz 12: Aproduct Development and Pricing Strategies