Question 1

Ideally, test marketing should follow which stage in the new-product development process?

Accepted Answer

Test marketing should follow the product development stage as it allows the company to test the product and make necessary changes before launching it in the market. Screening is too early in the process, business analysis comes after test marketing, and limited production and commercialization come after the product has been tested and refined through test marketing.

Question 2

Select the true statement concerning test marketing.

Accepted Answer

Test marketing is a limited introduction of the product in areas chosen to represent the intended market. This allows marketers to test the product and marketing mix variables before introducing it to the entire market. Option A, B, D, and E are incorrect because they do not accurately describe the purpose or process of test marketing.

Question 3

The test-marketing stage

Accepted Answer

The test-marketing stage involves launching the entire marketing mix (product, price, promotion, and distribution) on a small scale to assess the potential success of the product before a full-scale launch. It helps to identify any weaknesses or issues with the product and marketing strategy, and allows for adjustments to be made before a full-scale launch. Therefore, option D is the correct answer. The other options are incorrect as the test-marketing stage is not an extension of the screening stage (option A), does not ensure that the product will not fail (option C), is not primarily meant to prevent competitors from copying the product (option E), and may not necessarily come immediately after business analysis (option B).

Question 4

The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is

Accepted Answer

During the product development phase, the organization focuses on determining the technical feasibility of producing the new product and ensuring it can be produced at a cost that allows for a reasonable selling price. This phase involves creating prototypes and conducting detailed assessments of the product's design and production requirements.

Question 5

Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development.

Accepted Answer

During the business analysis phase, marketers evaluate the potential demand and profitability of the product to determine if it is feasible to bring it to market. This is where the question "Is the demand strong enough?" would be addressed.

Question 6

Johan and Alecs are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Jinn-Vac. They are in the ____ phase of the new-product development process.

Accepted Answer

Johan and Alecs are in the commercialization phase, which involves preparing budgets for the new product and finalizing plans for full-scale marketing and manufacturing. This is the final phase in the new-product development process where the product is launched into the market.

Question 7

Marlon and Eden at Fresh Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ____ stage of the new-product development process.

Accepted Answer

Marlon and Eden are uncertain about which promotional and pricing campaign will be better received by consumers, and the best way to test this is through test marketing. Test marketing is a stage where a small portion of the target market is exposed to the product and its marketing campaign to evaluate consumer response in a real-world setting. This will help Marlon and Eden assess the potential success of their product and adjust their promotional and pricing strategies before launching it on a larger scale.

Question 8

Early in the commercialization phase, marketers must make decisions about

Accepted Answer

The answer of Early in the commercialization phase, marketers must...

Question 9

Brice is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Brice and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process.

Accepted Answer

Brice and his colleagues are analyzing the potential profitability of the new product. This falls under the business analysis phase of the new product development process.

Question 10

If Duke Oh, product manager at Gale Rider Boats, became aware that Seven Seas Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast U.S. region, he might want to engage in ____ to reduce the validity of the other firm's results.

Accepted Answer

Jamming is a strategy where a company interferes with a competitor's test marketing efforts to skew the results, making it difficult for the competitor to gather accurate data.

Question 11

Clara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked, "What level of quality are we building into the camping gear?" Based on this question, Clara and her team are most likely in the ____ phase of new-product development.

Accepted Answer

The question about the level of quality being built into the camping gear suggests that the product is already in the development phase, where the product is being designed and tested before production. Therefore, the correct answer is product development.

Question 12

After building a prototype of his new device, Jacob is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.

Accepted Answer

The functional testing process is part of the product development phase, which is the stage where a working prototype is created and tested for performance and safety. The product design phase refers to the initial design process and concept testing involves gathering feedback from potential customers. Screening is a preliminary stage where ideas are evaluated and selected for further development. Test marketing occurs after the product has been fully developed and is being marketed to a select group of consumers.

Question 13

Luhan is a product manager for a major electronics company. His current project is the development and introduction of a new smartphone. Since there are a number of smartphones currently out on the market, Luhan is concerned about product failure. Currently, Luhan and his team are in the screening phase of the new product development process. Has his team already passed the phase that is best able to measure the product failure concern?

Accepted Answer

The test marketing phase, which comes after the screening, concept testing, and business analysis phases, is the best phase to measure product failure concern because it involves launching the product in a limited market to gauge consumer response and market viability before a full-scale launch.

Question 14

One disadvantage of test marketing a new product is that

Accepted Answer

Competitors may use the test marketing phase as an opportunity to analyze and copy the product, potentially launching their own versions before or shortly after the original product's broader release. This can dilute the market share and reduce the competitive advantage of the original product.

Question 15

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as

Accepted Answer

Rollout refers to the gradual introduction of a new product during its commercialization. It involves testing the product in a few markets before making it available nationwide or globally. This approach helps companies gauge the product's performance, build brand awareness, and assess consumer feedback before scaling up production and marketing efforts. Market development, market extension, and competitive jamming are strategies companies employ to increase sales of existing products. Regional commercialization is not a commonly used term in marketing.

Question 16

PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?

Accepted Answer

The fact that tourism is a major industry in the area would not have a strong influence on the testing of a new soft drink flavor. It would be more important to have stable year-round sales of soft drinks and cooperative retailers, as well as research and audit services available and testing efforts that are not easily disrupted by competitors.

Question 17

Which of the following is a disadvantage of gradually introducing a product to market?

Accepted Answer

Gradually introducing a product allows competitors to monitor the results of the new product before committing to their own product launch, potentially giving them an advantage in the market.

Question 18

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the ____ phase of the new-product development process.

Accepted Answer

The question indicates that the company plans to directly go to regional commercialization, which implies that they are skipping the test marketing phase of the new-product development process. Test marketing is a crucial stage in which a company releases a product in a limited market to evaluate consumer response, identify potential issues, and make necessary adjustments before launching the product on a larger scale. Skipping this phase can be risky as it may result in unforeseen issues and potentially harm the success of the product.

Question 19

When Fitz and Isabel analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ____ phase of the new-product development process.

Accepted Answer

Commercialization is the phase in the new-product development process where the product is launched and the company decides on the marketing mix. Analyzing test market results to determine if changes are needed in the marketing mix is part of preparing for and executing the commercialization phase.

Question 20

As Tara works on the prototype of a new action-oriented computer game, she is engaging in which phase of the new-product development process?

Accepted Answer

Product development is the phase in the new-product development process where the actual product is created and tested. Tara is working on the prototype of a new action-oriented computer game, which falls under this phase.

Quiz 11: Developing and Managing Goods and Services