Question 1

Which of the following methods for new-product development incorporates buyers' preferences in the final design of the product?

Accepted Answer

Quality function deployment is a method for new-product development that involves understanding buyers' preferences and using this information to design a final product that meets customers' needs and expectations. This approach uses a structured process to translate customer requirements into specific product features and attributes, and it involves close collaboration between different functional areas within the organization to ensure that the final design reflects the most important customer priorities. Thus, A) is the best answer.

Question 2

The stage in the new product process that occurs first is the ________ stage.

Accepted Answer

Idea generation is the stage where new product ideas are generated through various sources like customer feedback, market research, internal brainstorming sessions, etc. It is the initial stage of the new product process.

Question 3

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it pursues ________.

Accepted Answer

The answer of Jordan's firm enters new markets by tweaking...

Question 4

________ are formal statements of expected product performance by the manufacturer.

Accepted Answer

Warranties are formal statements made by the manufacturer about the expected performance of the product. They usually promise repair or replacement of the product if it does not meet the stated specifications or if it fails within a certain period.

Question 5

Packaging includes all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package.

Accepted Answer

The primary package is the container that holds the product, while the secondary package is the outer wrapping that holds the primary packages together. The tertiary package, also known as the shipping package, is the container that protects the secondary package during transportation and handling. The consumer package refers to the primary package that the customer sees and interacts with when purchasing and using the product. The retailer and supplier packages are not commonly used terms in the packaging industry. Therefore, C is the best choice as it is the only option that fits the definition of the tertiary package.

Question 6

Guarantees are most effective in two situations. The first is when the company or products are not well known. The second is when the product's quality is ________ to competition.

Accepted Answer

Guarantees are most effective when the product's quality is superior to the competition because it provides a sense of confidence to the customer in choosing the product over others. The guarantee acts as a reassurance that the company is confident in their product's performance and quality. In the case where the product's quality is not superior, offering a guarantee may not have as significant of an impact on the customer's decision-making process.

Question 7

Most new-product activities are devoted to ________.

Accepted Answer

The most common new-product activities are focused on improving existing products, rather than developing entirely new-to-the-world products or changing target markets or market dynamics. Backward integration is not typically a new-product activity.

Question 8

What are the situations in which guarantees are most effective?

Accepted Answer

The answer of What are the situations in which guarantees...

Question 9

A(n) ________ is an elaborated version of a product idea expressed in consumer terms.

Accepted Answer

The definition given in the question fits the description of a product concept. The other options, such as test brand, alpha product, and beta product, refer to different stages of product development, while a business schedule is a document outlining a company's planned activities and timelines. Therefore, the best choice is option E, product concept.

Question 10

Brown & Smith, Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Before approving a new design, the company draws it on a computer and then produces models to show potential consumers and get their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here.

Accepted Answer

The concept testing method used here is rapid prototyping, which involves creating physical prototypes to show potential consumers and get their reactions.

Question 11

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer orientated) that you wish to see implemented by the design team.

Accepted Answer

The answer of In discussions with the packaging design team,...

Question 12

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

Accepted Answer

The answer of Sellers must label their products. Labels serve...

Question 13

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?

Accepted Answer

The next step after refining a prototype based on in-house testing would be to conduct beta testing with customers. This will allow the company to gather feedback from actual users and further refine the product before commercializing it. Performing concept testing, creating a marketing strategy, and performing business analysis typically occur earlier in the new product development process.

Question 14

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms use "ingredient branding" of a new item. What are the basic goals of ingredient branding?

Accepted Answer

The answer of As the marketing manager for your firm,...

Question 15

Which of the following is most closely related with the organic growth of an organization?

Accepted Answer

Organic growth refers to the growth that a company experiences through its own resources and internal capabilities, rather than through mergers, acquisitions or external investments. Developing new products from within is the most closely related to organic growth because it involves utilizing existing resources and capabilities to create new revenue streams. Acquiring a product or service brand, entering new market places, increasing operational profitability, and increasing productivity of employees can all contribute to growth, but they may rely more heavily on external factors such as mergers or acquisitions, partnerships, or new hires.

Question 16

Warranties are formal statements of expected product performance by the manufacturer.

Accepted Answer

Warranties are legally binding contracts that provide assurance to the consumer that the product will perform as expected or be repaired or replaced by the manufacturer. They are formal statements of expected product performance.

Question 17

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance.

Accepted Answer

Infrequently purchased products typically exhibit replacement cycles based on physical wear or obsolescence associated with changing style, features, and performance. This is because customers do not need to frequently replace these products.

Question 18

Which of the following questions is answered during the business analysis of ideas?

Accepted Answer

During business analysis, the focus is on evaluating whether the product can meet sales expectations, which involves analyzing potential market size, sales volume, and profitability.

Question 19

Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

Accepted Answer

Guarantees are most effective when the product is new or unknown, as they help reduce the perceived risk for the consumer and differentiate the product from competitors.

Question 20

Many sellers offer either general or specific guarantees. Guarantees reduce the buyer's ________ risk.

Accepted Answer

Guarantees reduce the buyer's perceived risk. Perceived risk is the risk that a buyer feels or believes exists. Guarantees can help to alleviate this risk by providing assurances that the seller stands behind their product or service.

Quiz 9: Setting Product Strategy and Introducing New Offerings