Question 1

_____ occurs when an existing product is targeted toward new market segments.It is another type of new-product development because the product is new to that segment.

Accepted Answer

Repositioned products are existing products targeted at new markets or market segments,or repositioned to change the current market's perception of the product.

Question 2

Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates.The week after the compound was invented,a group of the firm's employees got together and listed ways the product might be used.This is an example of:

Accepted Answer

Brainstorming is a process where a group thinks of as many ways to vary a product or solve a problem.

Question 3

Which of the following is the LEAST likely source for new-product ideas?

Accepted Answer

Customers,employees,distributors,and competitors are interacting with the marketplace and may have ideas for goods to serve customer needs.The bank from which the company gets its debt financing is the least likely alternative here.

Question 4

After the research team at Nabisco had generated more than two dozen new-product ideas for a substitute for partially hydrogenated oils that tastes the same but has zero trans fat,the company formed a committee to analyze whether the product ideas were consistent with the organization's new-product strategy.This is called:

Accepted Answer

Idea screening is the first filter in the product development process.It serves to eliminate new product ideas that are inconsistent with the organization's new-product strategy.

Question 5

Apple recently introduced a newly designed iPod nano with Multi-Touch capability,a built-in FM radio,and mix-making Genius.Since it was not trying to reach a new target market,Apple was using which new product strategy?

Accepted Answer

Apple was improving its iPod nano product.

Question 6

Oakley,a manufacturer of protective eyewear for various kinds of sports,has introduced sunglasses that play music.The glasses weigh just a few ounces and can hold up to 120 songs.These sunglasses would be an example of a(n):

Accepted Answer

The new sunglasses supplement the firm's established product line.

Question 7

The process of converting applications for new technologies into marketable products is called:

Accepted Answer

Product development is a marketing strategy that entails the creation of marketable new products.

Question 8

The first stage of the new-product development process is:

Accepted Answer

New-product strategy is the first subset of the organization's new-product development plan.It specifies what roles new products play in the organization's overall plan and describes goals.

Question 9

For years,Diet Dr.Pepper has been considered a diet drink.After declining sales,the company is attempting to present Diet Dr.Pepper as an alternative to having a dessert.This is an example of a _____ strategy.

Accepted Answer

One way to create innovative products is to target new markets through repositioning.Repositioning is an attempt to change the market's perception of a product.

Question 10

When Procter & Gamble wanted to enter the hair care market,it purchased Wella,a leading German company specializing in hair care products.What new product category does this acquisition represent for P&G?

Accepted Answer

New product lines are defined as products that a firm has not previously offered.

Question 11

A new-product strategy:

Accepted Answer

All of these statements accurately describe a new-product strategy.

Question 12

The same manufacturer produces Hanes,Playtex,and Bali clothing for women.This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas,such as jewelry,wide shoes,and belts.The manufacturer used a research technique called a:

Accepted Answer

An objective of focus group interviews is to stimulate insightful comments through group interaction.

Question 13

Top managers at a commercial real estate firm that specializes in site location and installation of cellphone towers considered providing the same service for windmill location and installation but decided this was not within the company's corporate mission.Which stage of the new-product development process did its new-product development process reach?

Accepted Answer

Screening involves rejecting products that don't fit with company plans.

Question 14

Scientific research aimed at discovering new technologies is called:

Accepted Answer

This defines basic research.

Question 15

Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:

Accepted Answer

Introducing a specific number of new products each year is not one of the factors identified for success.

Question 16

At what stage of the new-product development process are most new-product ideas rejected?

Accepted Answer

Screening is the stage when the bulk of the ideas are rejected for being incompatible or impractical.

Question 17

Which of the following stages of the new-product development process is the first filter in the new-product development process and serves to eliminate new-product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason?

Accepted Answer

Most new-product ideas are rejected at this stage,called the idea screening stage.

Question 18

A(n)_____ links the new-product development process with the objectives of the marketing department,business unit,and corporation.

Accepted Answer

A new product strategy must be compatible with these objectives.

Question 19

_____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas.

Accepted Answer

The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a problem,no matter how ridiculous it may seem.

Question 20

Dial Corporation has introduced Dial Basics,a premium soap product with an emphasis on value.Dial Basics would be an example of which strategy to create a new product?

Accepted Answer

Dial Basics is marketed as a value brand.

Quiz 11: Developing and Managing Products