Question 1

Market testing refers to
A)exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
B)making sales and profit projections on prototype products to make go-no-go decisions.
C)conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best.
D)independently run comparison tests with similar products currently in the marketplace to determine which one performs best.
E)conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned.

Accepted Answer

Key term definition-market testing.

Question 2

A slotting fee is a payment that a
A)wholesaler makes to place a new product on a retailer's shelf.
B)manufacturer makes to have a wholesaler distribute a new product to retailers.
C)manufacturer makes to place a new product on a retailer's shelf.
D)manufacturer makes to a wholesaler as compensation for warehousing inventory.
E)manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.

Accepted Answer

Key term definition-slotting fee.

Question 3

Commercialization refers to
A)the point at which a new product has diffused throughout the marketplace.
B)the introduction of an offering to sequential geographic areas of the United States.
C)exposing actual products to prospective consumers under realistic purchase conditions.
D)the stage of the new-product development process that positions and launches a new product in full-scale production and sales.
E)the point where new-product concepts are transformed into prototypes.

Accepted Answer

Key term definition-commercialization.

Question 4

The stage of the new-product development process that positions and launches a new product in full-scale production and sales is referred to as
A)marketing program execution.
B)disbursement.
C)launch.
D)commercialization.
E)final distribution.

Accepted Answer

Key term definition-commercialization.

Question 5

Commercialization is the stage in the new-product development process
A)at which the product is positioned and launched in full-scale production and sales.
B)during which the firm performs its final evaluations of the new product.
C)when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard.
D)when advertising campaigns are evaluated using Starch scores to identify brand awareness.
E)at which the product generates the greatest sales and profits.

Accepted Answer

Key term definition-commercialization.

Question 6

Simulated test markets (STMs)are often run in shopping malls where consumers are
A)asked how much a person is willing to pay for an unfamiliar item.
B)asked whether they saw the firm's advertising campaign.
C)questioned about how often they are likely to shop in that particular location.
D)asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product.
E)shown the product or the product concept and are asked about usage,reasons for purchase,and important product attributes.

Accepted Answer

To save time and money,companies often turn to simulated (or laboratory)test markets (STMs),a technique that somewhat replicates a full-scale test market.STMs are often run in shopping malls,to find consumers who use the product class being tested.Next,qualified participants are shown the product or the product concept and are asked about usage,reasons for purchase,and important product attributes.They then see the company's and competitors' ads for the test product.Finally,participants are given money and allowed to choose between buying the firm's product or the products of competitors from a real or simulated store environment.

Question 7

The most expensive stage in the new-product development process for most products and services is
A)commercialization.
B)screening and evaluation.
C)business analysis.
D)development.
E)market testing.

Accepted Answer

Commercialization,or launching full-scale production and sales,is the most expensive stage for most new products.

Question 8

According to the text,which of the following firms is in the development stage of the new-product development process for a driverless car?
A)Honda
B)Apple
C)Google
D)Tesla
E)General Motors

Accepted Answer

In early 2017 the Google team announced its cars had completed over 1 million miles of autonomous driving.These miles were "driven" by a driver with an impressive driving record behind the wheel and a Google engineer in the passenger seat.

Question 9

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers.This was done on a limited scale to determine consumer reactions before national distribution of the product.At that time,Breyer's new product was in the ________ stage of the new-product development process.
A)commercialization
B)screening and evaluation
C)business analysis
D)development
E)market testing

Accepted Answer

The market testing stage of the new-product development process involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy,the situation with Breyer's.

Question 10

The stage of the new-product development process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as
A)development.
B)market testing.
C)business analysis.
D)commercialization.
E)screening and evaluation.

Accepted Answer

Key term definition-market testing.

Question 11

To save time and money,companies often turn to ________,a technique that somewhat replicates a full-scale test market.
A)partial rollouts
B)screening and evaluation
C)virtual reality testing
D)time-to-market measures
E)simulated test markets

Accepted Answer

Key term definition-simulated test markets.

Question 12

If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and to assess the effectiveness of advertising and other promotion tactics,what type of test market is this?
A)laboratory test market
B)concept test market
C)simulated test market
D)controlled test market
E)standard test market

Accepted Answer

A controlled test market involves contracting the entire test program to an outside service,such as IRI.IRI pays retailers for shelf space and,therefore,can guarantee a specified percentage of the test product's potential distribution volume.Its BehaviorScan service uses five demographically representative cities to track sales made to a panel of households.In some cases the effectiveness of different TV commercials and other direct-to-consumer promotions can be measured.

Question 13

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country.This payment is an example of a
A)product placement fee.
B)bribe.
C)slotting fee.
D)product support fee.
E)shelf space allowance.

Accepted Answer

Marketers pay slotting fees to grocers in payment for space,or slots,on their retail shelves,the situation Birds Eye encountered.

Question 14

Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line.A friend suggested combining spices from India with tea.In the ________ stage of the new-product development process,the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well.
A)idea generation
B)screening and evaluation
C)business analysis
D)market testing
E)commercialization

Accepted Answer

Market testing is the stage of the new-product development process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy,which reflects RaisaSpice's current stage.

Question 15

Which of the following statements about test marketing is most accurate?
A)Test marketing is especially useful for new services.
B)Expensive consumer products must be test marketed in as many locations as possible.
C)Test marketing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
D)Test marketing is essential for new,expensive industrial products such as jet engines.
E)Standard test markets are the least expensive and fastest type.

Accepted Answer

Market testing is a stage of the new-product development process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.If the budget permits,consumer packaged goods firms do this by test marketing,which involves offering a product for sale on a limited basis in a defined area for a specific time period.

Question 16

During which stage of the new-product development process are audiences allowed to preview actual movies like Thor: Ragnarok (a sneak preview)so that changes might be made before they are released to the general public?
A)market testing
B)business analysis
C)commercialization
D)screening and evaluation
E)concept testing

Accepted Answer

Market testing involves exposing actual products (the movie)to prospective customers under realistic purchase conditions (in the theater as a sneak preview)to see if they will buy (attend the movie).

Question 17

Test marketing involves offering a product for sale
A)to a random sample of people in the top 10 U.S.cities.
B)in as broad a geographic region as possible.
C)to consumers that are representative of the target market.
D)on a limited basis in a defined area.
E)only on certain days of the week and hours of the day.

Accepted Answer

Key term definition-test marketing.

Question 18

Marketers pay slotting fees to grocers in payment for space,or slots,on their retail shelves.Such slotting fees significantly increase the cost of which stage of the new-product development process?
A)business analysis
B)market testing
C)screening and evaluation
D)commercialization
E)idea generation

Accepted Answer

Because shelf space is so limited,many grocers require a slotting fee for new products,which is a payment a manufacturer makes to place a new item on a retailer's shelf.This can run to several million dollars for a single product.This cost is incurred during the commercialization stage of the new-product development process.

Question 19

Which of the products listed below would be the best candidate for full-scale market testing?
A)totally free checking account from Bank One
B)household frequent flyer program from Delta Airlines
C)mid-priced luxury sedan made in America by Mazda
D)new iced coffee beverage from Starbucks
E)slimmer iMac computer

Accepted Answer

Testing a service beyond the concept level is very difficult because the service is intangible,and consumers can't see what they are buying.Similarly,test markets for expensive consumer products such as cars and computers are impractical.Thus,the new iced coffee product would lend itself best to full-scale market testing.

Question 20

A failure fee is a penalty payment
A)a retailer assesses a manufacturer to handle defective new products that customers returned.
B)a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf.
C)a retailer makes to a manufacturer for stockouts (not keeping point-of-purchase displays continuously stocked with the new product).
D)a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers.
E)a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.

Accepted Answer

Key term definition-failure fee.

Quiz 10: Developing New Products and Services

Market testing refers to

A slotting fee is a payment that a

Commercialization refers to

The stage of the new-product development process that positions and launches a new product in full-scale production and sales is referred to as

Commercialization is the stage in the new-product development process

Simulated test markets (STMs) are often run in shopping malls where consumers are

The most expensive stage in the new-product development process for most products and services is

According to the text,which of the following firms is in the development stage of the new-product development process for a driverless car?

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers.This was done on a limited scale to determine consumer reactions before national distribution of the product.At that time,Breyer's new product was in the ________ stage of the new-product development process.

The stage of the new-product development process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as

To save time and money,companies often turn to ________,a technique that somewhat replicates a full-scale test market.

If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and to assess the effectiveness of advertising and other promotion tactics,what type of test market is this?

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country.This payment is an example of a

Which of the following statements about test marketing is most accurate?

During which stage of the new-product development process are audiences allowed to preview actual movies like Thor: Ragnarok (a sneak preview) so that changes might be made before they are released to the general public?

Test marketing involves offering a product for sale

Marketers pay slotting fees to grocers in payment for space,or slots,on their retail shelves.Such slotting fees significantly increase the cost of which stage of the new-product development process?

Which of the products listed below would be the best candidate for full-scale market testing?

A failure fee is a penalty payment