Question 1

New-product or service failures may be reduced or avoided if the company developing them has
A)support from marketer-dominated sources of information.
B)a clear patent approved by the governments within the countries it wants to market.
C)a statement of competitive intent.
D)stakeholder approval in the development process.
E)a precise protocol.

Accepted Answer

Ideally,before a new product or service is developed,a firm should have a precise protocol,which is a statement that identifies: (1)a well-defined target market;(2)specific customers' needs,wants,and preferences;and (3)what the product or service will be and do to satisfy consumers.

Question 2

Battery maker Duracell introduced a new product called the Duracell Powermat,which is a wireless charging pad for mobile devices.Because of the perceived fit with its other products,this new product was received well by consumers despite being in a different product category.This innovation strategy is known as a
A)brand extension.
B)radical invention.
C)product line extension.
D)disruptive innovation.
E)product accumulation.

Accepted Answer

Because of its association with batteries and portable energy,the Duracell brand worked well for this wireless charger,sot it was a brand extension strategy that succeeded.

Question 3

Open innovation is
A)a clear plan for new product distribution that will ensure access for all potential customers within the first year of release.
B)a formal and comprehensive analysis of competitors' products to discover ideas for product improvements.
C)an unlimited budget that can be spent for the marketing program for a new product.
D)designing a product around specific customers' needs,wants,and preferences.
E)the practices and processes that encourage the use of external and internal ideas and collaboration when conceiving,producing,and marketing new products.

Accepted Answer

Key term definition-open innovation.

Question 4

Until 1996,U.S.carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan.American car manufacturers could blame their failure to a great degree on
A)an insignificant point of difference.
B)too little market attractiveness.
C)not satisfying customer needs on critical factors.
D)poor product quality.
E)incomplete market and product protocol.

Accepted Answer

Even though the quality of the U.S.-made cars was good,the failure to export sufficient quantities of cars to Japan proved that American carmakers missed the mark on a critical product factor-sending a sufficient number of right-hand-drive cars to meet the needs of Japanese drivers.

Question 5

Before a new product or service is developed,a firm should have a precise protocol,a statement that identifies which of the following?
A)a clear plan for product distribution
B)an analysis of potential competitors' products
C)a precise budget of how much can be spent for the marketing program
D)specific customers' needs,wants,and preferences
E)clear financial goals and expectations

Accepted Answer

Ideally,before a new product or service is developed,a firm should have a precise protocol,which is a statement that identifies: (1)a well-defined target market;(2)specific customers' needs,wants,and preferences;and (3)what the product or service will be and do to satisfy consumers.

Question 6

After gaining widespread attention with the media,as well as popularity with teens,hoverboards made by a variety of manufacturers were found to catch fire or explode.Hoverboard sales suffered greatly as a result of which common reason for product failure?
A)not satisfying customer needs on critical factors
B)poor product quality
C)poor execution of the marketing mix
D)an insignificant point of difference
E)bad timing

Accepted Answer

The product quality was mainly the cause of declining sales for hoverboard,since numerous people were injured using them and several fires occurred.

Question 7

Thirsty Dog! is a zesty beef-flavored,vitamin-enriched,mineral-loaded,lightly carbonated bottled water for your dog.It might have been a great product,but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers.The makers of this product had
A)poor product quality.
B)no economical access to buyers.
C)an insignificant point of difference.
D)incomplete market and product protocol.
E)poor execution of the marketing mix.

Accepted Answer

With thousands of new consumer packaged goods introduced each year,the cost to gain access to retailer shelf space is huge.Because shelf space is judged in terms of sales per square foot,a new product must displace an existing product on the supermarket shelves.Thirsty Dog! failed to generate enough sales to meet its sales per square foot requirements.

Question 8

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom.Although a clever idea,it failed because it
A)did not satisfy customer needs on critical factors.
B)had poor product quality.
C)had bad timing.
D)had an incomplete market and product protocol.
E)had too little market attractiveness.

Accepted Answer

There was not an attractive market for the product because of its questionable market (a real need?)and its brand name may have scared kids,suggesting that there may in fact be monsters hiding in their rooms.

Question 9

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives,which were scientifically designed to kill cold and flu germs when users sneezed,coughed,or blew their noses into them.Unfortunately,people didn't believe the claim and were frightened by the "cidal" in the brand name.The reason for this product failure was
A)an insignificant point of difference.
B)too little market attractiveness.
C)poor execution of the marketing mix.
D)poor product quality.
E)incomplete market and product protocol.

Accepted Answer

A big part of the failure of Kimberly-Clark's Avert Virucidal tissues was its lack of a product protocol that clearly defined how it would satisfy consumer wants and needs.

Question 10

One of the eight primary marketing-related reasons for new-product failure is
A)not listening to the voice of the engineer.
B)not satisfying customer needs on critical factors.
C)too much advertising or too aggressive a tone for it.
D)failure to anticipate competitors' actions.
E)insufficient funding for rollout.

Accepted Answer

There are eight main marketing reasons a new product can fail: (1)insignificant point of difference,(2)incomplete market and product protocol before product development starts,(3)not satisfying customer needs on critical factors,(4)bad timing,(5)no economical access to buyers,(6)poor execution of the marketing mix,(7)too little market attractiveness,and (8)poor product quality.

Question 11

________ consists of practices and processes that encourage the use of external as well as internal ideas and internal as well as external collaboration when conceiving,producing,and marketing new products and services.
A)Innovation partnership
B)Open innovation
C)Formalized collaboration
D)Piggy-back thinking
E)Stakeholder cooperation

Accepted Answer

Key term definition-open innovation.

Question 12

One of the eight primary marketing-related reasons for new-product failure is
A)not listening to the voice of the engineer.
B)poor execution of the marketing mix.
C)too much advertising or too aggressive a tone for it.
D)failure to anticipate competitors' actions.
E)insufficient funding for rollout.

Accepted Answer

There are eight main marketing reasons a new product can fail: (1)insignificant point of difference,(2)incomplete market and product protocol before product development starts,(3)not satisfying customer needs on critical factors,(4)bad timing,(5)no economical access to buyers,(6)poor execution of the marketing mix,(7)too little market attractiveness,and (8)poor product quality.

Question 13

When General Mills introduced Fingos,a corn chip-sized sweetened cereal flake,it assumed that its customers would normally snack on them dry like a potato chip.Unfortunately,consumers did not switch from munching on popcorn and potato chips.The primary reason for the failure of Fingos was
A)an insignificant point of difference-consumers wouldn't switch from competing snacks.
B)too little market attractiveness-the growth in the snacks market is declining.
C)poor execution of the marketing mix-General Mills did not offer free samples at grocery stores.
D)poor product quality-the chips were not the same size.
E)incomplete market and product protocol-the brand name Fingos did not get consumers excited.

Accepted Answer

The point of difference of Fingos was not important enough to get consumers to stop eating competing snacks such as popcorn and potato chips.

Question 14

A new-product or service protocol is
A)the standardized procedures a firm follows for the inception,design,manufacturing,promotion,and distribution of a new product.
B)a formalized statement of intent regarding what will be sold,to whom it will be sold,and by whom it will be sold.
C)maintaining compliance with all licensing,manufacturing,and distribution standards established by the U.S.Federal Trade Commission (FTC).
D)a statement that identifies a well-defined target market,specific customers' needs,wants,and preferences,and what the product or service will be and do to satisfy consumers.
E)the raw unwritten ideas to produce a single commercially successful new product.

Accepted Answer

Key term definition-protocol.

Question 15

One of the two organization-related problems of inertia that can cause new-product failures is
A)poor product quality.
B)encountering the "not-invented-here" problem.
C)poor execution of the marketing mix.
D)bad timing.
E)incomplete market and product protocol.

Accepted Answer

The two organization-related problems of inertia that can cause new-product disasters include: (1)encountering groupthink in task force and committee meetings and (2)avoiding the "not-invented-here" problem.Other alternatives are some of the eight marketing-related reasons a new product can fail.

Question 16

Groupthink occurs in a new product planning process when
A)everyone has an opinion,but no one is willing to take charge and guide the discussion.
B)everyone has the same idea after using the brainstorming idea-generation technique.
C)there is too much competition among marketing managers,so no one is willing to share his or her ideas.
D)someone suspects a problem with a product concept but is afraid to speak up because everyone else is so enthusiastic.
E)top management wants the new product to go forward regardless of what anyone else thinks.

Accepted Answer

Encountering groupthink in a meeting occurs when someone knows or suspects the product concept is a dumb idea.But that person is afraid to speak up for fear of being cast as a negative thinker and not a team player,and then being ostracized from real participation in the group.

Question 17

Hewlett-Packard introduced its HP Tablet a few years after Apple launched its original iPad,about the same time Apple introduced its next-generation iPad2.HP Tablet sales were very disappointing,and Hewlett-Packard eventually killed the product.According to the text,the primary reason for the HP Tablet's failure was due in large part to
A)bad timing.
B)not satisfying customer needs on critical factors.
C)poor product quality.
D)an insignificant point of difference.
E)incomplete market and product protocol.

Accepted Answer

Bad timing occurs when a product is introduced too soon,too late,or when consumer tastes are shifting dramatically.Hewlett-Packard introduced its HP Tablet a few years after Apple launched its original iPad,about the same time Apple introduced its next-generation iPad 2 that featured multiple apps.Hewlett-Packard was late and its HP Tablet was significantly behind in apps compared to the iPad 2.Failure to deliver a product that satisfied consumer preferences in a timely manner caused Hewlett-Packard to abandon its HP Tablet two months after its introduction.

Question 18

Less than ________ of new consumer packaged goods (CPG)exceed first-year sales of $50 million-the benchmark of a successful CPG launch.
A)3 percent
B)10 percent
C)17 percent
D)28 percent
E)35 percent

Accepted Answer

Less than 3 percent of new consumer packaged goods (CPG)exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Question 19

Using an existing brand name to introduce a product that is new to the company into a totally new,unfamiliar market seems like a good idea.Several years ago,Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly.This innovation strategy is known as a
A)radical invention.
B)product line extension.
C)disruptive innovation.
D)product deletion.
E)brand extension.

Accepted Answer

Harley-Davidson's loyal customers couldn't see themselves buying its perfume,a brand extension strategy that failed.

Question 20

Ideally,before a new product or service is developed,a firm should have a precise ________,which is a statement defining the target market,specifying customers' needs,and defining what the product or service will be and do to satisfy consumers.
A)formula
B)contract
C)modus operandi
D)protocol
E)methodology

Accepted Answer

Ideally,before a new product or service is developed,a firm should have a precise protocol,which is a statement that identifies: (1)a well-defined target market;(2)specific customers' needs,wants,and preferences;and (3)what the product or service will be and do to satisfy consumers.

Quiz 10: Developing New Products and Services

New-product or service failures may be reduced or avoided if the company developing them has

Open innovation is

Until 1996,U.S.carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan.American car manufacturers could blame their failure to a great degree on

Before a new product or service is developed,a firm should have a precise protocol,a statement that identifies which of the following?

After gaining widespread attention with the media,as well as popularity with teens,hoverboards made by a variety of manufacturers were found to catch fire or explode.Hoverboard sales suffered greatly as a result of which common reason for product failure?

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom.Although a clever idea,it failed because it

One of the eight primary marketing-related reasons for new-product failure is

________ consists of practices and processes that encourage the use of external as well as internal ideas and internal as well as external collaboration when conceiving,producing,and marketing new products and services.

One of the eight primary marketing-related reasons for new-product failure is

When General Mills introduced Fingos,a corn chip-sized sweetened cereal flake,it assumed that its customers would normally snack on them dry like a potato chip.Unfortunately,consumers did not switch from munching on popcorn and potato chips.The primary reason for the failure of Fingos was

A new-product or service protocol is

One of the two organization-related problems of inertia that can cause new-product failures is

Groupthink occurs in a new product planning process when

Less than ________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Using an existing brand name to introduce a product that is new to the company into a totally new,unfamiliar market seems like a good idea.Several years ago,Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly.This innovation strategy is known as a

Ideally,before a new product or service is developed,a firm should have a precise ________,which is a statement defining the target market,specifying customers' needs,and defining what the product or service will be and do to satisfy consumers.