Question 1

A statement that identifies a well-defined target market; specific customers' needs, wants, and preferences; and what the product will be and do to satisfy consumers is referred to as a new product's or service's
A)protocol.
B)proposition.
C)modus operandi.
D)formula.
E)methodology.

Accepted Answer

A protocol is a statement that outlines the target market, customer needs, and the product's features and benefits to satisfy those needs.

Question 2

New-product or service failures may be reduced or avoided if the company developing them has
A)support from marketer-dominated sources of information.
B)a clear patent approved by the governments within the countries it wants to market.
C)a statement of competitive intent.
D)stakeholder approval in the development process.
E)a precise protocol.

Accepted Answer

The answer of New-product or service failures may be reduced...

Question 3

When only minor changes in a consumer's behavior are required to adopt a product innovation, this represents
A)a continuous innovation.
B)a discontinuous innovation.
C)a disruptive innovation.
D)a dynamically continuous innovation.
E)an evolutionary innovation.

Accepted Answer

A dynamically continuous innovation refers to a product that requires a moderate change in consumer behavior to adopt the innovation. This is in contrast to a continuous innovation, which requires minimal changes, or a discontinuous innovation, which requires significant changes. A disruptive innovation refers to a new product that initially only appeals to a niche market but eventually displaces an established product. An evolutionary innovation refers to incremental improvements to an existing product.

Question 4

Which of the following new products is the best example of the lowest level of risk from the company's point of view?
A)adding Ball Park Beef Franks with Cheese to the Ball Park Franks line
B)moving from production of landline telephones to smartphones
C)marketing the first Apple computer
D)changing the formula from Coca-Cola to New Coke and then back to Coca-Cola Classic
E)offering online marketing classes rebranded under a new college name

Accepted Answer

Adding a new product to an existing product line (i.e. Ball Park Franks) is a low level of risk for a company because they already have an established customer base and distribution channels in place. The other options involve more significant changes or innovations, which carry higher levels of risk.

Question 5

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on __________, which failed quickly.
A)aspirin
B)frozen dinners
C)disposable underwear
D)soda (soft drink)
E)perfume

Accepted Answer

Colgate put its brand name on frozen dinners, which failed quickly. It was a misalignment with the brand's core products and expertise in dental hygiene.

Question 6

A few years ago, Frito-Lay developed Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay's salty snacks such as Fritos Corn Chips. But when people think of the brand name Frito-Lay, thirst-quenching is not a benefit that comes to mind and Frito-Lay Lemonade failed. This innovation strategy is known as a
A)brand extension.
B)radical invention.
C)product line extension.
D)disruptive innovation.
E)product deletion.

Accepted Answer

The strategy used was a brand extension, where a company uses an existing brand name to launch a product in a different category. Frito-Lay attempted to extend its brand into the beverage market, which did not align with consumer perceptions of the brand.

Question 7

Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new
A)for the first six months that it was regularly available at a variety of grocery stores.
B)until a competitor such as Ragu had issued a similar product targeted to the same market.
C)as long it retained these exact product characteristics.
D)if it was functionally the same as its salsa sauce.
E)until its advertising had been seen by every member of its target audience.

Accepted Answer

A product is legally considered new for a limited time, typically six months, after it becomes available in the market.

Question 8

When extra features are added and consumers don't need to learn new behaviors, this represents a
A)continuous innovation.
B)discontinuous innovation.
C)dynamically continuous innovation.
D)spontaneous innovation.
E)simultaneous innovation.

Accepted Answer

A continuous innovation adds extra features to a product or service without requiring consumers to learn new behaviors. It enhances the existing product without disrupting the usual way consumers use it.

Question 9

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the highest level of risk?
A)a radical invention
B)a brand extension
C)a product line extension
D)a jump in innovation
E)a product deletion

Accepted Answer

A radical invention involves the creation of a completely new product or technology that has never been seen before. This involves a high level of risk as it is uncertain how consumers will respond to the new product and there may be significant financial investments required in research and development. In contrast, brand extension, product line extension, jump in innovation, and product deletion all involve modifications or improvements to existing products, which are generally considered to be less risky.

Question 10

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the lowest level of risk?
A)a radical invention
B)a brand extension
C)a product line extension
D)a jump in innovation
E)a product refinancing

Accepted Answer

Successful organizations view newness and innovation in their products at three levels.The lowest level,which usually involves the least risk,is a product line extension.This is an incremental improvement of an existing product line the company already sells.At the next level is a significant jump in innovation or technology or a brand extension involving putting an established brand name on a new product in an unfamiliar market.The third and highest level of innovation involves a radical invention,a truly revolutionary new product.

Question 11

A new-product or service protocol is
A)the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product.
B)a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold.
C)maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC).
D)a statement that identifies a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.
E)the raw unwritten ideas to produce a single commercially successful new product.

Accepted Answer

The answer of A new-product or service protocol is
A)the standardized...

Question 12

The Federal Trade Commission (FTC) considers a product new only
A)for a period of one year after it enters widespread distribution.
B)if it is functionally different from a competitor's product.
C)until a new and improved version of the same product is produced.
D)for a period of six months after it enters regular distribution.
E)for a period of 17 years at which time patent rights are returned to the public domain.

Accepted Answer

The answer of The Federal Trade Commission (FTC) considers a...

Question 13

Which of the following products at the time of its introduction was the best example of a discontinuous innovation?
A)DVD player
B)disposable lighters
C)instant light charcoal
D)liquid laundry detergent
E)automatic dishwashers

Accepted Answer

The answer of Which of the following products at the...

Question 14

In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of
A)a continuous innovation.
B)a dynamically continuous innovation.
C)a disruptive improvement.
D)a discontinuous innovation.
E)an evolutionary innovation.

Accepted Answer

A discontinuous innovation refers to a new product that requires consumers to significantly change their behavior, as was the case with the transition from horse and buggy to automobiles.

Question 15

Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of
A)a continuous innovation.
B)a discontinuous innovation.
C)a dynamically continuous innovation.
D)a disruptive improvement.
E)an evolutionary innovation.

Accepted Answer

The answer of Dragon Naturally Speaking, a speech recognition software...

Question 16

Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally). When it was introduced, Napster would have been an example of a
A)discontinuous innovation.
B)continuous innovation.
C)dynamically continuous innovation.
D)regulatory innovation.
E)disruptive improvement.

Accepted Answer

Napster represented a discontinuous innovation because it was a new and revolutionary way to exchange music files that disrupted the traditional music industry business model. It completely changed how music was distributed, and it caused a significant shift in consumer behavior.

Question 17

Ideally, before a new product or service is developed, a firm should have a precise __________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.
A)formula
B)contract
C)modus operandi
D)protocol
E)methodology

Accepted Answer

The answer of Ideally, before a new product or service...

Question 18

When marketing efforts usually involve not only gaining initial consumer awareness but also educating consumers on both the benefits and proper use of the product, this represents
A)a spontaneous innovation.
B)a continuous innovation.
C)a discontinuous innovation.
D)a dynamically continuous innovation.
E)an evolutionary innovation.

Accepted Answer

Discontinuous innovation requires significant consumer learning and behavior change, as it introduces a new product or concept that is unfamiliar to consumers, necessitating education on its benefits and use.

Question 19

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly. This innovation strategy is known as a
A)radical invention.
B)product line extension.
C)disruptive innovation.
D)product deletion.
E)brand extension.

Accepted Answer

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market is called brand extension. The failure of the Harley-Davidson perfume indicates that the brand extension strategy did not work in that particular case.

Question 20

Mr. Clean is an antibacterial cleaning liquid for home use. If Procter & Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as
A)a discontinuous innovation.
B)a new product from the company's perspective because it is a product line extension.
C)a high-risk product mix extension because it is new to the market.
D)new by the Federal Trade Commission for the usual one-year period.
E)not a new product because it does not represent a different SKU.

Accepted Answer

Adding the Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line would be considered a product line extension, as it is a new product that is related to and extends the existing product line. It is not a discontinuous innovation or a high-risk product mix extension. It would also not require a new product review by the Federal Trade Commission, as it is not a completely new product but rather an extension of an existing one.

Quiz 10: Developing New Products and Services

A statement that identifies a well-defined target market; specific customers' needs, wants, and preferences; and what the product will be and do to satisfy consumers is referred to as a new product's or service's

New-product or service failures may be reduced or avoided if the company developing them has

When only minor changes in a consumer's behavior are required to adopt a product innovation, this represents

Which of the following new products is the best example of the lowest level of risk from the company's point of view?

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on __________, which failed quickly.

Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new

When extra features are added and consumers don't need to learn new behaviors, this represents a

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the highest level of risk?

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the lowest level of risk?

A new-product or service protocol is

The Federal Trade Commission (FTC) considers a product new only

Which of the following products at the time of its introduction was the best example of a discontinuous innovation?

In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of

Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of

Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally) . When it was introduced, Napster would have been an example of a

Ideally, before a new product or service is developed, a firm should have a precise __________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.

When marketing efforts usually involve not only gaining initial consumer awareness but also educating consumers on both the benefits and proper use of the product, this represents

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly. This innovation strategy is known as a

Mr. Clean is an antibacterial cleaning liquid for home use. If Procter & Gamble (P&G) , the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as