Question 1

Marketers often involve actual customers in product testing.

Accepted Answer

Marketers often involve actual customers in product testing to get feedback and insights into how the product performs in real-life situations and how it can be improved to better meet the needs of the target audience.

Question 2

A marketer has chosen a multiple-city test market. What can be concluded from this choice of a multiple-city test market?

Accepted Answer

The answer of A marketer has chosen a multiple-city test...

Question 3

How might a firm benefit from implementing an "intrapreneurial" program?

Accepted Answer

The answer of How might a firm benefit from implementing...

Question 4

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

Accepted Answer

Sequential product development is typically slower because each phase must be completed before the next begins, unlike concurrent or parallel approaches that allow for overlapping phases.

Question 5

The business analysis stage represents the first large jump in financial investment in the new product development process.

Accepted Answer

The answer of The business analysis stage represents the first...

Question 6

Differentiate between controlled test markets and simulated test markets.

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The answer of Differentiate between controlled test markets and simulated...

Question 7

A marketer has selected a single city in which to conduct a test market. What can be concluded from this choice of a single-city test market?

Accepted Answer

The answer of A marketer has selected a single city...

Question 8

Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.

Accepted Answer

Concept testing is most effective with potential customers who are representative of the target market, not just internal stakeholders like top management or the sales force.

Question 9

To avoid too few new product ideas and the failure of many good ideas, management should implement an innovation management system that collects, reviews, evaluates, and manages new product ideas.

Accepted Answer

Implementing an innovation management system can help in gathering and managing new product ideas, evaluating their potential, and avoiding the failure of good ideas due to lack of attention or a structured process.

Question 10

Why are competitors considered a good external idea source?

Accepted Answer

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Question 11

A company launching a new product into the market must first decide where to launch the product.

Accepted Answer

The answer of A company launching a new product into...

Question 12

What factors are assessed in test marketing?

Accepted Answer

The answer of What factors are assessed in test marketing?...

Question 13

GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

Accepted Answer

Business product development refers to the process of creating and launching new products or services, as well as improving existing ones, not reviewing sales, costs, and profit projections. The activity described in the statement is more related to product analysis or financial analysis.

Question 14

The potential sales, costs, and profit projections are being determined for a new product idea at Art for Kids. Which of the following stages of the new product development process does this illustrate?

Accepted Answer

The answer of The potential sales, costs, and profit projections...

Question 15

Why might individual departments prefer sequential product development?

Accepted Answer

The answer of Why might individual departments prefer sequential product...

Question 16

GreenTree Lawn and Garden Products is engaged in marketing strategy development. The first part of the marketing strategy statement created by management should outline the product's planned price, distribution, and marketing budget for the first year.

Accepted Answer

The first part of a marketing strategy statement typically outlines the target market, planned product positioning, and sales goals, not the product's price, distribution, and marketing budget.

Question 17

What elements may help to create a product image?

Accepted Answer

The answer of What elements may help to create a...

Question 18

Briefly describe the steps in the new product development process.

Accepted Answer

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Question 19

JumBo Games is in the commercialization stage. The first decision that the firm should make while introducing the product in the market is introduction timing.

Accepted Answer

The introduction timing is a crucial aspect of the commercialization stage, and the firm should carefully consider the timing to maximize the product's success.

Question 20

A company introducing a product that is similar to its competitors' product will do a complete test market to gain maximum information before product introduction.

Accepted Answer

A company may not always conduct a complete test market for a product similar to competitors', as it might rely on existing market data or choose other strategies to save time and resources.

Quiz 9: Developing New Products and Managing the Product Life Cycle