Question 1

A review of the sales,costs and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

Accepted Answer

A business analysis is a review of the sales, costs, and profit projections for a new product to determine whether they meet the company's objectives. A business feasibility plan refers to assessing the feasibility of a business idea, while market strategy development pertains to creating a plan on how to market and sell the product. Product acceptance refers to how well the product is received by the market. A proposal is a written document suggesting a plan, product, or service to an individual or organization.

Question 2

The R-W-W framework asks three questions: Is it real? Can we win? Is it worth doing? Marketers should ask these questions during the ________ stage of the new-product development process.

Accepted Answer

The R-W-W (Real, Win, Worth doing) framework is typically used during the idea screening stage of the new-product development process to evaluate the viability, competitive advantage, and potential profitability of new product ideas.

Question 3

A potential marketer of new Teflon coated shower enclosures asks consumers,'Do you understand how the addition of Teflon will benefit you?' and 'Would this type of shower closure solve a cleaning problem for you?' This marketer is in the ________ stage of new-product development.

Accepted Answer

The marketer is in the concept development and testing stage since they are asking potential consumers if they understand the benefit of the new Teflon coating and if it would solve a cleaning problem for them. This stage involves developing and testing product concepts with target consumers to gather feedback and determine potential market interest.

Question 4

A firm has asked its engineering department to create a prototype for a promising product concept.The firm is engaged in ________.

Accepted Answer

The firm has asked its engineering department to create a prototype for a promising product concept, which is a key activity in product development. Product development involves the process of designing, creating, and introducing a new product or service into the market.

Question 5

An attractive idea must be developed into a ________.

Accepted Answer

An attractive idea must first be developed into a product concept, which is a detailed version of the idea stated in meaningful consumer terms. Once this is done, the other options listed can be considered and developed further.

Question 6

The third part of the marketing strategy statement includes all of the following EXCEPT ________.

Accepted Answer

The third part of the marketing strategy statement includes long-run sales, profit goals, and marketing mix strategies, but it does not include short-run sales. Short-run sales are typically a tactical consideration and are not a part of the overarching marketing strategy.

Question 7

The second part of the marketing strategy statement outlines the product's planned price,distribution and ________ for the first year.

Accepted Answer

The answer of The second part of the marketing strategy...

Question 8

After concept testing,a firm would engage in which stage in developing and marketing a new product?

Accepted Answer

After concept testing, a firm typically moves to the marketing strategy development stage, where it outlines the target market, planned value proposition, sales, market-share, and profit goals for the first few years.

Question 9

A fabric manufacturer has just created a new combination of colour and fabric types.The firm wants to be sure of the way consumers perceive its new product.The firm is concerned with the product ________.

Accepted Answer

The firm's concern with the new product is how consumers perceive it, which directly relates to the product's image in the eyes of the consumers. The other options (idea, concept, proposal, presentation) are all related to the development and creation of the product, rather than its perception in the market.

Question 10

________ calls for testing new-product concepts with groups of target consumers.

Accepted Answer

Concept testing specifically refers to the process of testing new-product concepts with a group of target consumers. The other options are all stages in the new-product development process, but they do not necessarily involve testing with consumers.

Question 11

A ________ is the way consumers perceive an actual or potential product.

Accepted Answer

Product image refers to the way consumers perceive an actual or potential product. A product idea is a concept for a product that is in the very early stages of development, while a product concept is a detailed description of a product that includes its benefits, features, and proposed selling price. Test market refers to the process of launching a product in a specific geographic area to gather feedback on its performance, while a concept test is a research method that involves presenting a product concept to potential customers to gauge their interest and measure their understanding of the concept.

Question 12

Which of the following statements best explains why idea screening may be the most import step of new product development?

Accepted Answer

Idea screening is critical because it helps to save the company money in product development costs by only approving profitable product ideas. This step ensures that the company invests its resources on the product ideas that are more likely to succeed in the market, reducing the risks of failure, and improving the chances of success. Therefore, it's essential to give green lights to only the product ideas that are likely to be profitable.

Question 13

For some ________,a simple description consisting of a word or a rough drawing might be sufficient.

Accepted Answer

A product concept is an initial idea or design for a new product. For some audiences, a simple description or rough drawing may be enough to understand the concept.

Question 14

Which of the following is a product concept?

Accepted Answer

A thin, lightweight laptop with extended battery life appealing to students and young professionals who want access to their computer anywhere, anytime is a specific product concept with a target audience and unique features. The other options describe general product categories or basic features without specific target audiences or unique characteristics.

Question 15

The first part of the marketing strategy statement describes the target market,the planned product positioning,and the sales,________ and profit goals for the first few years.

Accepted Answer

The target market, product positioning, sales, and profit goals are directly related to the market share that the company is aiming to capture. Therefore, the best choice is A.

Question 16

With what groups do firms conduct concept testing for new products?

Accepted Answer

Firms typically conduct concept testing with their target consumers to gather feedback on new product ideas before launching them in the market. This helps them gauge consumer interest, identify potential issues, and make necessary adjustments to the product before investing in manufacturing and marketing efforts. While suppliers, employees, manufacturers, and competitors may provide useful insights, they are not the primary audience for concept testing.

Question 17

In the concept testing stage of new-product development,a product concept in ________ form is presented to groups of target consumers.

Accepted Answer

In the concept testing stage of new-product development, a product concept is often presented in a physical or symbolic form to groups of target consumers to gauge their reactions and gather feedback. This helps in refining the product concept before further development and investment.

Question 18

GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs.The owners will begin the first idea-reducing stage,called ________,to arrive at a realistic number to pursue.

Accepted Answer

Idea screening is the first stage of the idea-reducing process where a large number of ideas are evaluated against a set of criteria to arrive at a realistic number of ideas to pursue. The other options mentioned are later stages in the product development process.

Question 19

Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?

Accepted Answer

The proposed customer value proposition is most likely to be included in an executive's write-up of a new-product idea because it clearly outlines the unique value the product offers to customers, which is crucial for gaining initial buy-in from a new-product committee.

Question 20

A detailed version of a new idea stated in meaningful customer terms is called a ________.

Accepted Answer

A product concept is a detailed version of a new idea stated in meaningful customer terms. It includes the product's features, benefits, target audience, and unique selling proposition. It helps to define the product and communicate its value to potential customers. A product proposal is a formal document that outlines the details of a proposed product, including its features, benefits, costs, and expected outcomes. A product image is the perception that customers have of a product based on its reputation, branding, and marketing. A product idea is a general notion or vision for a new product. A product movement is not a commonly used term in product development.

Quiz 8: New Products: Developing and Managing Innovation