Question 1

The screening and business analysis stages of new-product development,determine the product's financial and technical requirements.

Accepted Answer

The screening and business analysis stages of new-product development involve evaluating the product's market potential, competition, profitability, and technical feasibility to determine its financial and technical requirements.

Question 2

Concept testing is a marketing research project that attempts to measure consumer attitudes and perceptions about the new product idea.

Accepted Answer

Concept testing is a marketing research technique that aims to evaluate consumer attitudes and perceptions toward a potential new product or service idea.

Question 3

If potential buyers can observe an innovation's superiority in a tangible form,the adoption rate increases.

Accepted Answer

When potential buyers can observe and experience the tangible superiority of an innovation, they are more likely to adopt it. The tangible form can include physical products, prototypes, demos, or tangible benefits such as increased efficiency, cost savings, or convenience. This helps to build trust and credibility in the innovation, making it easier for customers to see its value and potential impact on their lives.

Question 4

A product diversification strategy focuses on developing entirely new products for new markets.

Accepted Answer

A product diversification strategy typically involves developing new products for new markets in order to expand a company's customer base and reduce reliance on existing products and markets.

Question 5

Even if a new product tests well in the market and reaches the commercialization stage,it may still take a while to catch on with the general public.

Accepted Answer

Just because a product tests well and reaches the commercialization stage does not guarantee immediate success with the general public. It may take time and effort for the product to gain traction and become widely accepted.

Question 6

The number of product liability lawsuits has fallen in recent years thanks to better designed products and more detailed regulations.

Accepted Answer

The answer of The number of product liability lawsuits has...

Question 7

The consumer adoption process spans from awareness of a product to its acceptance or rejection after a purchase has been made.

Accepted Answer

The consumer adoption process includes the stages of awareness, interest, evaluation, trial, and adoption. After adoption, the consumer may make a decision to continue using the product or reject it and cease further purchases.

Question 8

Product liability insurance has become an essential element for any new or existing product strategy.

Accepted Answer

Product liability insurance helps protect businesses from financial losses due to legal claims related to their products, making it a crucial aspect of product strategy.

Question 9

Companies test market their new-product offerings to measure consumer reactions under normal competitive conditions.

Accepted Answer

Companies do test market their new-product offerings to measure consumer reactions under normal competitive conditions. This helps them to analyze the potential demand for their product and make necessary changes or improvements before fully launching it in the market.

Question 10

A company sent free samples of their new shampoo to a researched list of potential customers.This strategy is most likely to accelerate the evaluation and trial stages of the consumer adoption process.

Accepted Answer

By sending free samples, the company is providing potential customers with an opportunity to try the new product without any cost. This can accelerate the evaluation and trial stages of the consumer adoption process, as customers are more likely to try and evaluate the product if they don't have to pay for it.

Question 11

A product development strategy might include flanker brands that are introduced into the market to increase the overall market share of the company.

Accepted Answer

Flanker brands are a type of product development strategy that involves introducing new products or brands to capture additional market share and appeal to a different segment of customers.

Question 12

The diffusion process focuses on the speed at which an innovative product is accepted or rejected by all members of a community or social system.

Accepted Answer

This is correct. The diffusion process is a concept in marketing that studies how a new product or idea is adopted by different groups of people within a society. It considers factors such as communication channels, opinion leaders, and the perceived value of the product in order to understand how quickly or slowly it will be adopted by a given market.

Question 13

Cannibalization is the loss of sales of an existing product due to competition from a new product introduced into the market by a competing firm.

Accepted Answer

The answer of Cannibalization is the loss of sales of...

Question 14

New product committee members spend less time conceiving and developing their own new-product ideas than reviewing and approving new-product plans that arise elsewhere in the organization.

Accepted Answer

As members of the new product committee, their role is to review and approve new-product plans that arise elsewhere in the organization, rather than generating their own ideas from scratch.

Question 15

Consumer innovators are individuals who rely on the experiences of initial buyers before making trial purchases.

Accepted Answer

Consumer innovators are individuals who are among the first to purchase and try out new products or services, not those who wait for the experiences of initial buyers.

Question 16

In the awareness phase of the consumer adoption process,consumers make a trial purchase of an item to determine its usefulness.

Accepted Answer

In the awareness phase, consumers become aware of a new product or service, but they do not make a trial purchase yet. The trial purchase occurs in the trial phase, after the consumer has gained more information and decided to try the product.

Question 17

Compared to first adopters,later adopters rely more heavily on impersonal information sources while purchasing new products.

Accepted Answer

The answer of Compared to first adopters,later adopters rely more...

Question 18

A product can fulfill its mission of satisfying consumer needs only if it ensures safe operation.

Accepted Answer

Ensuring safe operation is a fundamental requirement for any product to be successful in satisfying consumer needs. If a product is not safe to use, consumers may not be able to utilize it as intended or may face injury or harm while using it, which can negatively impact their experience with the product. Therefore, ensuring safe operation is crucial for a product to fulfill its mission of satisfying consumer needs.

Question 19

A venture team functions as an entity separate from the basic organization.

Accepted Answer

A venture team is a distinct entity formed within an organization to pursue a specific initiative, opportunity or goal. It often operates separately from the rest of the organization to focus on its objectives and make quick decisions without being hindered by corporate bureaucracy.

Question 20

A product manager often leads new product development programs,including creation of new product ideas and recommendations for improving existing products.

Accepted Answer

A product manager is responsible for leading new product development programs, which includes ideation and making recommendations for improving existing products.

Quiz 13: Developing and Managing Brand and Product Categories