Question 1

What is the stage of new product development during which ideas with commercial potential are separated from those NOT meeting company objectives?
A) idea generation
B) business analysis
C) screening
D) evaluation

Accepted Answer

Screening is the stage of new product development during which ideas with commercial potential are separated from those NOT meeting company objectives.

Question 2

Which of the following is a crown corporation that oversees the standards system in Canada?
A) Federal Standards Council
B) NAFTA Council
C) Standards Council of Canada
D) Council for Standards in Canada

Accepted Answer

The Standards Council of Canada is a federal Crown corporation that oversees the standardization system in Canada. It promotes efficiency and economic growth by developing and maintaining national standards in a variety of areas, such as health, safety, and industry. The other options given are not accurate in their descriptions of organizations related to standards in Canada.

Question 3

Aspirin has been used for almost a century to treat pain, as well as to reduce inflammation and fever.Recent studies indicate that the regular use of low-dosage aspirin can reduce the incidence of heart attacks and strokes.Bayer Company is trying to capitalize on this new finding and increase sales to potential customers by which of the following strategies?
A) Market Penetration
B) Market Development
C) Product Development
D) Product Diversification

Accepted Answer

Market development involves expanding the company's market for existing products through new channels or targeting new customer groups. Bayer Company is trying to increase sales to potential customers, which falls under the category of market development.

Question 4

When does a new product innovation possess relative advantage?
A) when it is consistent with the values and experiences of potential adopters
B) when it appears far superior to previous ideas
C) when it allows potential buyers limited initial use before purchase
D) when it is relatively easy to understand

Accepted Answer

Relative advantage refers to the perceived superiority of a new product over existing ones. Therefore, a new product innovation possesses relative advantage when it appears far superior to previous ideas.

Question 5

What is the purpose of test-marketing?
A) to subject the product idea to additional study prior to its actual development
B) to verify that the product will perform well in a real-life business environment
C) to separate ideas with commercial potential from those that will not meet company objectives
D) to evaluate the compatibility of the product with organizational resources

Accepted Answer

The purpose of test-marketing is to verify that the product will perform well in a real-life business environment by testing it on a smaller scale before a full-scale launch. Option A is more relevant to concept testing, option C is more relevant to idea generation and screening, and option D is more relevant to feasibility analysis.

Question 6

What are product managers also known as?
A) product directors
B) trade-name managers
C) brand managers
D) product line directors

Accepted Answer

Product managers are also commonly known as brand managers. They are responsible for overseeing the development, marketing, and distribution of a particular brand or product line. They work closely with cross-functional teams such as sales, engineering, and finance to ensure the product's success in the market. Product directors and product line directors may also refer to similar roles, but they may have different levels of responsibility and focus on different aspects of product management. Trade-name managers are not a common term in product management.

Question 7

The highest level of brand loyalty is brand preference.

Accepted Answer

The highest level of brand loyalty is brand insistence, followed by brand advocacy, brand preference, and brand recognition. Brand preference refers to a consumer's preference for a particular brand over others but they may still be open to purchasing other brands depending on the situation.

Question 8

Once consumers have used a product, seen it advertised, or noticed it in a store, it moves from the unknown to the known category, which increases the probability that they will purchase it.

Accepted Answer

This statement is true as consumer awareness of a product can significantly affect their purchasing behavior. Once a product is known or familiar to them, they are more likely to consider it and ultimately make a purchase.

Question 9

Brand insistence is common in luxury products.

Accepted Answer

Brand insistence refers to a consumer's strong loyalty or preference towards a particular brand, and this is commonly observed in the luxury goods market where consumers are willing to pay a premium for the perceived status, quality, and exclusivity associated with a specific brand.

Question 10

Josh usually buys one brand of orange juice but, occasionally, will buy a competitive brand if it's on sale.Josh is exhibiting brand insistence.

Accepted Answer

If Josh were exhibiting brand insistence, he would always buy the same brand and would not consider any other brand, even if it were on sale. Since Josh occasionally buys a different brand on sale, he is exhibiting brand loyalty or brand preference, not brand insistence.

Question 11

What is the approximate new-product failure rate?
A) 25 percent
B) 37 percent
C) 66 percent
D) 80 percent

Accepted Answer

The approximate new-product failure rate is around 80 percent, indicating that a significant majority of new products do not succeed in the market.

Question 12

What is the systematic approach to new product development called in which products are developed in an orderly series of steps from one department to the next?
A) phased development
B) a parallel approach
C) PERT (program evaluation and review technique)
D) CPM (critical path method)

Accepted Answer

The systematic approach to new product development in which products are developed in an orderly series of steps from one department to the next is called phased development. This approach involves a series of stages which include idea generation, concept development, testing, product development, market testing, and finally, commercialization. Each stage is completed before moving onto the next, and each department is responsible for completing their respective stage before passing the product onto the next department.

Question 13

A product has attained a monopoly position with its consumers when the brand loyalty stage of brand insistence has been achieved.

Accepted Answer

Brand insistence is the highest stage of brand loyalty, where consumers are so loyal to a particular brand that they will not consider purchasing any other brand even if it means going without the product. At this stage, a product has attained a monopoly position with its consumers, as they are not open to any other alternatives.

Question 14

A cereal company sent free samples of a new cereal to a researched list of potential customers.Which of the following BEST describes the stage in the consumer adoption process that was accelerated?
A) Awareness
B) Interest
C) Evaluation
D) Adoption

Accepted Answer

The answer of A cereal company sent free samples of...

Question 15

Which of the following items would seldom be test-marketed?
A) potato chips
B) postal system sorting equipment
C) cellular telephones
D) breakfast cereals

Accepted Answer

Postal system sorting equipment is a highly specialized product that is not suitable for test marketing, as it requires significant investment and testing in controlled environments. It is typically tested through computer simulations and rigorous testing before being released to the market.

Question 16

Brand preference is the stage of brand loyalty at which consumers rely on previous experience with a branded product when choosing it, if available, over competitors' products.

Accepted Answer

This statement is true. Brand preference is a stage of brand loyalty where consumers prefer a particular brand based on their past experiences with it, and they are likely to choose it over rival brands.

Question 17

What type of marketing research project is undertaken during the business analysis stage of the new product development process and often uses focus groups and in-store polling to gather data?
A) telephone screening
B) idea generation
C) sample distribution
D) concept testing

Accepted Answer

The type of marketing research project that is undertaken during the business analysis stage of the new product development process and often uses focus groups and in-store polling to gather data is concept testing. Concept testing involves presenting potential product ideas or concepts to a target audience to gather feedback and assess interest and demand. This can involve focus groups or in-store polling where participants are asked to provide their opinions and preferences on various aspects of the product concept.

Question 18

Buyers rarely identify the brand with the manufacturer.

Accepted Answer

Buyers often identify the brand with the manufacturer, especially if the brand has a strong reputation or has consistently delivered quality products.

Question 19

Deanna purchases only Diet Coke; in fact, she never considers any other brands.Deanna has reached the level of brand preference.

Accepted Answer

Deanna has reached the level of brand loyalty, as she consistently purchases Diet Coke and does not consider other brands. Brand preference implies a favoring of one brand over others but does not exclude considering or purchasing other brands.

Question 20

What is a new product committee?
A) a task force of experts assigned to generate new product ideas
B) a group of experts permanently assigned to generate, evaluate, and implement new product projects
C) the employees, suppliers, and customers that are a part of the relationship marketing process
D) the most common arrangement for activities related to developing a new product

Accepted Answer

The answer of What is a new product committee?
A) a...

Quiz 10: Developing and Managing Brand and Product Strategies

What is the stage of new product development during which ideas with commercial potential are separated from those NOT meeting company objectives?

Which of the following is a crown corporation that oversees the standards system in Canada?

When does a new product innovation possess relative advantage?

What is the purpose of test-marketing?

What are product managers also known as?

The highest level of brand loyalty is brand preference.

Once consumers have used a product, seen it advertised, or noticed it in a store, it moves from the unknown to the known category, which increases the probability that they will purchase it.

Brand insistence is common in luxury products.

Josh usually buys one brand of orange juice but, occasionally, will buy a competitive brand if it's on sale.Josh is exhibiting brand insistence.

What is the approximate new-product failure rate?

What is the systematic approach to new product development called in which products are developed in an orderly series of steps from one department to the next?

A product has attained a monopoly position with its consumers when the brand loyalty stage of brand insistence has been achieved.

A cereal company sent free samples of a new cereal to a researched list of potential customers.Which of the following BEST describes the stage in the consumer adoption process that was accelerated?

Which of the following items would seldom be test-marketed?

Brand preference is the stage of brand loyalty at which consumers rely on previous experience with a branded product when choosing it, if available, over competitors' products.

What type of marketing research project is undertaken during the business analysis stage of the new product development process and often uses focus groups and in-store polling to gather data?

Buyers rarely identify the brand with the manufacturer.

Deanna purchases only Diet Coke; in fact, she never considers any other brands.Deanna has reached the level of brand preference.

What is a new product committee?