Question 1

In estimating sales, the manager's first task is to estimate first-time purchases of the new product in each period. To estimate replacement sales, management has to research the product's that is, the number of units that fail in year one, two, three, and so on. The low end of the distribution indicates when the first replacement sales will take place.

Accepted Answer

The estimation of replacement sales is based on the survival-age distribution, which indicates the number of units that fail in each year after purchase. The low end of the distribution determines when the first replacement sales will occur. Options A, C, D, and E are not relevant to this task.

Question 2

In the past, creating physical prototypes was costly and time-consuming, but computer-aided design and manufacturing programs have changed that. Today firms can use ________ to design products on a computer, and then produce plastic models of each.

Accepted Answer

The process described in the question is that of creating physical prototypes quickly and efficiently, which is known as rapid prototyping. The use of computer-aided design (CAD) software is mentioned as the initial step in designing the products on a computer before the prototypes are produced. Therefore, the best choice is C, rapid prototyping. Choices A, B, D, and E are either too broad or irrelevant to accurately describe the process described in the question.

Question 3

Many believe that customer focus does not help to create better or new products. This belief rests on which of the following ideas?

Accepted Answer

This belief reflects the idea that customers may not always know what they want, or may have limited ideas about the potential of new products. Therefore, relying solely on customer feedback may not always result in the most innovative or effective product developments.

Question 4

Combining two product ideas or concepts to create a new offering, for example, oil change/lubrication facilities with cafes is an example of

Accepted Answer

Lateral marketing involves combining two different product ideas or concepts to create a new offering, such as combining oil change/lubrication facilities with cafes. This approach is about finding new ways to satisfy customers by creating new markets or significantly altering existing ones.

Question 5

A ________ occurs when the company dismisses an otherwise good idea.

Accepted Answer

A DROP-error occurs when a company dismisses a potentially successful idea, failing to recognize its potential.

Question 6

The financial analysis for your new product shows that for the fist year you must sell 100 000 units at an average selling price of $10.00 in order to cover the costs of introduction, marketing, and development. The financial process used to arrive at these numbers is called

Accepted Answer

The financial process used to arrive at these numbers is called break-even analysis, which calculates the number of units or sales needed to cover the costs of introduction, marketing, and development. Co-variant analysis and statistical analysis refer to different types of data analysis, and risk analysis may be used to evaluate potential risks associated with the introduction of the new product, but they do not specifically relate to determining the necessary sales volume to cover costs. Financial analysis is a more general term that encompasses various types of analyses, including break-even analysis.

Question 7

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

Accepted Answer

Conjoint analysis is specifically designed to measure consumer preferences for different product attributes by presenting respondents with various product concepts that differ on certain attributes (such as price, quality, or design) and asking them to rate or choose their preferred options. The results of conjoint analysis can then be used to estimate the relative importance of different attributes and to predict the demand for specific product configurations. Marketing research, marketing strategy, gap level, and purchase intentions are all related to understanding consumer behavior and preferences but do not specifically pertain to conjoint analysis.

Question 8

A company should motivate its employees to submit new ideas to a(n) ________ whose name and phone number are widely circulated.

Accepted Answer

The best option is to have an idea manager whose contact information is widely circulated so that employees can easily share their new ideas. This person is responsible for managing and evaluating suggestions from employees, and providing feedback to encourage creativity and innovation within the company. Other options such as a creative manager or senior product manager may not have the same level of focus and responsibility for generating new ideas from employees.

Question 9

Companies use financial measures to evaluate the merit of a new-product proposal. The simplest to use is called ________, in which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure.

Accepted Answer

The financial measure described in the question is break-even analysis, where the company evaluates how many units it needs to sell to cover both its fixed and variable costs. This is a straightforward way to determine if the proposal is financially viable. A is incorrect because risk analysis focuses on identifying and assessing potential risks associated with a project. C, D, and E are also incorrect because these analyses are not used to evaluate the financial viability of a product proposal.

Question 10

The job of translating target customer requirements into a working prototype is helped by a set of methods known as

Accepted Answer

Quality function deployment (QFD) is a set of methods used to translate customer requirements into product specifications, and then into a working prototype. QFD involves a structured approach to understanding customer needs and preferences, and then translating those needs into specific product design and development requirements. This helps ensure that the final product meets or exceeds customer expectations and delivers on the intended benefits.

Question 11

Total estimated sales are the sum of estimated first-time sales, replacement sales, and ________ for the new product.

Accepted Answer

Repeat sales refer to customers who have previously bought the product and are likely to buy it again in the future. Including repeat sales in the total estimated sales gives a more accurate picture of the product's potential revenue.

Question 12

The ________ creativity technique begins in a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally materializes a new idea by associating all the thoughts.

Accepted Answer

The description given perfectly matches the technique of mind mapping, where a central idea is written down and then other ideas are linked to it through branches and sub-branches, forming a visual map of related thoughts. This technique encourages free-flowing and non-linear thinking, often leading to innovative solutions.

Question 13

A ________ is an elaborated version of the idea expressed in consumer terms.

Accepted Answer

A product concept is a detailed description of a product's attributes, benefits, and positioning in the market. It is an elaborated version of the initial product idea that is expressed in consumer terms. The other options are not directly related to the definition of a product concept.

Question 14

________ works by listing all the normal assumptions about an entity and then turning them around.

Accepted Answer

Reverse assumption analysis works by listing all the normal assumptions about an entity and then turning them around. This technique is often used to identify key assumptions that may be limiting creativity or hindering problem-solving.

Question 15

You have been asked to participate in an idea generating session. The moderator gives you the following directions: "List the attributes of the object in front of you (a cup), now modify each attribute, by replacing each attribute with another." You are participating in what kind of creativity techniques.

Accepted Answer

The activity described is attribute listing, as the moderator is asking for a list of attributes of the cup and then modifying each one. Morphological analysis involves breaking down an object or problem into its various components and then recombining them in new ways. Reverse assumption analysis involves challenging assumptions about a problem or situation. Mind mapping involves visually organizing ideas and information. Forced relationships involve making connections between seemingly unrelated objects or concepts.

Question 16

A powdered instant breakfast drink is at the concept testing stage. Which product dimension is being measured when researchers ask target consumers whether or not they see the product solving a problem?

Accepted Answer

The product dimension being measured when researchers ask target consumers whether or not they see the product solving a problem is the need level. This refers to the level of need that consumers have for the product and whether the product fulfills a need or solves a problem for them.

Question 17

Attractive ideas must be refined into testable product concepts. A ________ is a possible product the company might offer to the market.

Accepted Answer

The answer of Attractive ideas must be refined into testable...

Question 18

The methodology of quality function deployment takes the list of desired ________ generated by market research and turns them into a list of ________ that the engineers can use.

Accepted Answer

Quality function deployment involves translating customer/market requirements (customer attributes) into specific engineering requirements (engineering attributes) that can guide the development of a product or service. Therefore, the best choice would be B, which correctly identifies the terms used in the process.

Question 19

"Our product is a powdered mixture that is added to milk to make an instant breakfast that gives the person all the needed nutrition along with good taste and high convenience. The product would be offered in three flavors and would come in individual packets, six to a box, at $2.49 a box." This is an example of

Accepted Answer

The statement describes the product concept, which details the features, benefits, and potential customers of the product. It outlines the product's form, function, packaging, and target price. It does not refer to the brand, idea generating, or product testing.

Question 20

The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source.

Accepted Answer

The technique described is morphological analysis, which involves breaking down a problem into dimensions, exploring potential combinations of those dimensions, and considering various options for medium and power source. Attribute listing involves identifying the attributes of an object or idea, reverse assumption analysis involves challenging assumptions, and mind mapping involves brainstorming and visually organizing ideas.

Quiz 20: Introducing New Marketing Offerings