Question 1

Borden, Inc., wants to develop a new line of great tasting, low-calorie, low-fat, and low-cholesterol processed cheese products. The managers are studying whether demand is strong enough and whether the new line will yield a favorable return on investment. The managers are currently in which phase of new product development?

Accepted Answer

The managers are conducting a business analysis to determine whether the new line will yield a favorable return on investment. This is a critical phase in the new product development process, as it helps determine the feasibility of the product before investing significant resources into further development and commercialization.

Question 2

Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent. The company presented its proposed new product to a group of potential customers in the form of a short explanation and questionnaire. Lever Brothers is conducting

Accepted Answer

Lever Brothers is conducting concept testing, which involves presenting a new product idea to potential customers and asking for their feedback in the form of a questionnaire. The company is testing the viability of the product concept before investing further resources into its development and launch.

Question 3

As the product idea committee of Foster Manufacturing Company went through its list of possible new products, it rejected various ideas for one or more reasons. Which of the following is least likely to be a reason for rejection?

Accepted Answer

This is the least likely reason for rejection because increasing annual sales is usually a desirable outcome for any company. However, the other options (A, B, D, E) are all valid reasons for rejecting a product idea.

Question 4

Which of the following is not a phase in the new product development process?

Accepted Answer

Modification is not a phase in the traditional new product development process. However, it can be considered a sub-phase within Development or Launch phase.

Question 5

In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas. Now that there is a list of product ideas, the next step is

Accepted Answer

The next step after generating a list of product ideas is to screen them. This involves evaluating the ideas against predetermined criteria, such as feasibility, customer needs, profitability, and alignment with the company's goals and values. Screening helps identify the most promising product ideas to pursue further, while discarding the ones that are unlikely to succeed or don't fit with the company's strategy. After screening, the remaining ideas can then be subjected to business analysis, product development, test marketing, and commercialization, in that order.

Question 6

All of the following are stages in the evolution of new products except

Accepted Answer

Product modification is not a stage in the evolution of new products. Rather, it involves making changes or improvements to an existing product. The stages in the evolution of new products are typically identified as screening, idea generation, concept testing, business analysis, product development, test marketing, and commercialization.

Question 7

Hillary has a new product idea that aligns well with her company's current organizational resources. She puts together a presentation for potential buyers and requests feedback on their reactions and suggestions. Hillary is

Accepted Answer

Hillary is engaging in concept testing by presenting her product idea to potential buyers and asking for their feedback, which helps in evaluating the concept's appeal and potential success before it's fully developed or launched.

Question 8

The Glo-Brite Company is considering development of a new children's toothpaste in fun-shaped dispensers. Before performing any business analysis on the product, Glo-Brite would like an initial response from potential customers to determine interest in a toothpaste of this type. Glo-Brite will begin ____ to gather the information.

Accepted Answer

Concept testing is the appropriate step for Glo-Brite to gather initial response from potential customers to determine interest in a product. This step aims at asking potential customers about their thoughts and opinions on the product concept to evaluate its feasibility and potential success.

Question 9

The stage in the evolution of new products in which ideas that match company objectives are analyzed as to whether the firm has the required expertise for the product's development and marketing is called

Accepted Answer

This is the screening stage of new product development where ideas are evaluated based on company objectives, technical feasibility, and the ability to market the product. The purpose is to narrow down ideas so that only the most promising ones move forward to the next stage of development.

Question 10

The stage in the evolution of a new product in which a pool of ideas is created is called

Accepted Answer

Idea generation is the stage in the evolution of a new product in which a pool of ideas is created. This is the initial phase in which ideas are collected from various sources like customers, employees, competitors and other stakeholders. The other options like product development, screening, test marketing, and business analysis come after idea generation.

Question 11

Entirely new products are called

Accepted Answer

Entirely new products that are not based on existing products or designs are called innovations. They may offer new benefits, features, or functions that were not previously available, and often require significant research and development efforts to bring to market. Generics and imitations, on the other hand, are based on existing products and may be lower-priced alternatives. House brands are products that are sold under the retailer's own name, and adaptations are existing products that have been modified or customized to suit a specific market or need.

Question 12

Products that are designed to be similar to and compete with existing products of other firms are called

Accepted Answer

Products that are designed to be similar to and compete with existing products of other firms are called imitations. Imitations are often created to offer a lower-priced alternative to a popular product in the market.

Question 13

What type of product modification is likely to make the greatest impact on a food product?

Accepted Answer

The answer of What type of product modification is likely...

Question 14

There are seven stages in the evolution of a new product. The stage in which an idea is determined to be technically feasible is

Accepted Answer

The stage in which an idea is determined to be technically feasible is product development. During this stage, the idea is developed into a tangible product or service through research, design, and development. This includes testing the technical feasibility of the idea and ensuring it can be produced and delivered effectively. Idea generation is the initial stage where new ideas are brainstormed, screening is the stage where ideas are evaluated based on various criteria, business analysis focuses on the market potential and financial viability, and concept testing evaluates consumer response to the idea.

Question 15

Why should companies develop and introduce new products?

Accepted Answer

Failing to introduce new products can lead to stagnation and loss of market share, which can threaten the long-term success of the firm. It is important for companies to continuously innovate and offer new products to stay competitive in the market. A, C, D, and E are not valid reasons for introducing new products.

Question 16

The redesign of a bicycle to improve its safety is an example of a(n) ____ modification.

Accepted Answer

The redesign of a bicycle to improve its safety is a modification that changes its functionality or performance. This would not be considered a visual, quality, aesthetic, or texture modification.

Question 17

The stage of new product development in which potential customers are presented with a written or oral description of the product to determine their initial attitudes and buying intentions is called

Accepted Answer

Concept testing is the stage in the new product development process where potential customers are presented with a written or oral description of the product to gauge their initial attitudes and buying intentions. This helps the company to determine whether the product has potential in the market or not, and to make necessary changes before proceeding to further stages. Screening is the preliminary stage in which ideas are evaluated to eliminate unsuitable ones. Test marketing involves launching the product in a limited market to test its performance. Business analysis involves evaluating the product's financial feasibility, while commercialization involves the final stage of launching the product into the market.

Question 18

TCBY wants to expand its line of food products. The company sent surveys to consumers to determine which food items would appeal to them for dessert or snacks. The company is in which phase of new product development?

Accepted Answer

TCBY is still in the initial phase of new product development, where it is trying to generate ideas for food products that could be added to its menu. Sending surveys to consumers to determine their preferences is a part of the idea generation process.

Question 19

The largest number of product ideas are rejected during the ____ stage of new product development.

Accepted Answer

During the screening stage, companies evaluate the many ideas generated in the idea generation stage to eliminate those that are not feasible or do not align with the company's overall objectives. This stage sees the highest number of rejections as it serves as the first filter in the process of narrowing down ideas to those with the most potential.

Question 20

After several years of success with the product line, Procter & Gamble introduced its popular Sure deodorant in three new scents. This is an example of ____ modification.

Accepted Answer

Aesthetic modification involves changing the product's look, feel, or other sensory attributes. In this case, introducing new scents to the deodorant line can be categorized as an aesthetic modification.

Quiz 13: A: Creating and Pricing Products That Satisfy Customers