Question 1

In the early stage of development,the research and development or engineering department may develop a prototype of the product.

Accepted Answer

During the early stage of development, the research and development or engineering department usually develops a prototype of the product to test the design and functionality before manufacturing the final product.

Question 2

A firm that starts with a global strategy is better able to develop products that are marketable worldwide.

Accepted Answer

A firm that starts with a global strategy can better understand the needs and preferences of customers in different regions and develop products that are suitable for various markets. This approach also allows for consistency in branding and messaging across different countries, which can enhance the company's global reputation and customer loyalty.

Question 3

A product category includes all brands that satisfy a particular type of need.

Accepted Answer

A product category is a group of products that share similar features and satisfy a particular need or want. The brands within this category compete with each other to attract customers who have that specific need or want. Examples of product categories include smartphones, laptops, and sports shoes.

Question 4

Fournotts Corp.manufactures and sells accessories for cell phones.To boost its sales,the research and development team is involved in modifying the company's products.In this case,the research and development team will:

Accepted Answer

The research and development team is involved in modifying the company's existing products, which implies that they will make cosmetic or functional changes to improve them. They are not necessarily eliminating or adding products, nor are they creating entirely new applications.

Question 5

Daily Farm,a food and beverage manufacturing firm,is known for its unique variety of table sauces.To provide more variations to its customers,Daily Farm recently launched an olive and pepper sauce.The olive and pepper sauce would fall under the category of improved products.

Accepted Answer

The answer of Daily Farm,a food and beverage manufacturing firm,is...

Question 6

Absolute failure occurs when a product returns a profit but fails to achieve sales,profit,or market share goals.

Accepted Answer

Absolute failure occurs when a product does not generate any profit or revenue, regardless of whether it achieves sales, profit, or market share goals.

Question 7

An innovation is a product perceived as new by a potential adopter.

Accepted Answer

This statement is true. An innovation is a product, service, or idea that a potential adopter perceives as new and is not yet widely adopted in the market. It may offer a new solution to an existing problem or fulfill an unmet need, and its adoption can require changes in behavior, technology, or infrastructure.

Question 8

A message developed for and targeted toward early adopters will be perceived similarly by late majority adopters.

Accepted Answer

Early adopters are typically more receptive to new and innovative ideas, while late majority adopters are more skeptical and need more proof of a product's reliability and usefulness. Therefore, a message that resonates with early adopters may not be as effective for late majority adopters as it may not address their specific concerns and needs.

Question 9

Unlike the growth stage of the product life cycle,emphasis switches from primary demand promotion to aggressive brand advertising and communication of the differences between brands in the introductory stage.

Accepted Answer

In the introductory stage, the focus is on creating primary demand for the product category, not on differentiating between brands, which is more typical of the growth stage.

Question 10

Which of the following is an objective of focus group interviews?

Accepted Answer

The objective of focus group interviews is to stimulate insightful comments through group interaction, allowing researchers to uncover perceptions, opinions, and attitudes towards a particular topic or product.

B, C, and D are not objectives of focus group interviews. Test marketing involves a different set of research methods, recommendations from outside consultants can be obtained through other means, and eliminating ideas inconsistent with the organization's new-product strategy can be done through internal product screening processes.

Question 11

Hakimo Corp.,a manufacturer of audio equipment,has developed a unique wireless speaker system that runs on solar power.The speakers can operate for sixteen hours after being exposed to the sun for two hours.This new product,which is radically different from anything currently available in the market,would fall in the new product category of a:

Accepted Answer

The unique wireless speaker system that runs on solar power, which is radically different from anything currently available in the market, would be classified as a discontinuous innovation. This means that it is a completely new product category that revolutionizes the market and requires significant changes in consumer behavior and understanding.

Question 12

Concept tests are used at the screening stage to rate concept or product alternatives.

Accepted Answer

Concept tests are indeed used at the screening stage to evaluate and compare different concept or product alternatives.

Question 13

Many new product ideas are necessary to produce one successful new product.

Accepted Answer

It is often necessary to generate multiple product ideas and prototypes before arriving at a successful product. This is because not all ideas will be feasible, marketable or meet the needs of consumers. It is also important to gather feedback from potential customers and conduct market research before launching a new product.

Question 14

In the context of the new-product development process,which of the following is true of a new-product strategy?

Accepted Answer

A new-product strategy must be compatible with the objectives of the marketing department, the business unit, and the corporation. This is because the strategy outlines the overall goals and direction for the new product development process, which must align with the broader objectives of the organization. Options A, B, and D are incorrect because a new-product strategy should consider customer and competitor ideas, is not the last stage of the process, and involves creating new products for new markets, rather than targeting existing products at new markets.

Question 15

The product life cycle for a brand is usually longer than the product life cycle for a product form.

Accepted Answer

The answer of The product life cycle for a brand...

Question 16

Which of the following statements is true of a customer innovation center?

Accepted Answer

A customer innovation center is a space or forum designed for companies to meet with customers and involve them in the innovation process. It allows for collaboration and co-creation between the company and its customers, which can lead to insights and ideas that may not have been possible otherwise. It is not a tool for repositioning products or promoting status-conscious advertising, nor is it exclusive to the business analysis stage of the new-product development process.

Question 17

Fresnas Inc.manufactures and sells electronic equipment.The research and development team has generated ideas for new products,and the ideas pass through the screening stage.In this case,the goal of screening will be to:

Accepted Answer

Screening is the process of evaluating new product ideas to eliminate the ones that are inconsistent with the organization's new-product strategy. It is done to ensure that only the most promising ideas are developed into products. Option A pertains to the feasibility study, option C is the prototyping stage, and option D is not a relevant goal of screening.

Question 18

The growth stage of the product life cycle represents the full-scale launch of a new product into the marketplace.

Accepted Answer

The full-scale launch of a new product into the marketplace is characteristic of the introduction stage, not the growth stage. The growth stage follows the introduction stage and is marked by increasing sales and market acceptance.

Question 19

The maturity stage is the shortest stage of the product life cycle.

Accepted Answer

The maturity stage is actually one of the longest and most important stages of the product life cycle. It is the stage where sales growth starts to slow down, competition becomes stronger, and companies need to focus on maintaining customer loyalty and finding new markets for the product. This stage can last for several years before eventually transitioning into the decline stage.

Question 20

A new-product strategy links the new-product development process with the objectives of the marketing department,the business unit,and the corporation.

Accepted Answer

A new-product strategy is developed to ensure that the new product aligns with the overall objectives of the marketing department, business unit, and corporation. It helps to guide the new-product development process to ensure that resources are used effectively and the new product has the best chance of success in the marketplace.

Quiz 11: Developing and Managing Products