Question 1

Introducing new-products sequentially into geographic areas of the U.S.to allow production levels and marketing activities to build up gradually to minimize the risk of new-product failure is referred to as

Accepted Answer

Regional rollouts involve introducing new products gradually across different geographic areas to manage production and marketing risks effectively.

Question 2

Kroger required that Birdseye pay $15,000 to get its new frozen stir-fry vegetable mix placed in the freezers of Kroger supermarkets.This payment is an example of a

Accepted Answer

The payment required by Kroger in order for Birdseye to have their new product placed in their supermarket freezers is an example of a slotting fee. Slotting fees are a common practice in the retail industry where manufacturers pay a fee to retailers for the right to have their products placed on their shelves or in their freezers.

Question 3

A new beverage by Snapple is currently being sold only in the Western United States.Over the next year, Snapple plans to introduce the beverage sequentially into the U.S.from west to east.This is referred to as a

Accepted Answer

The answer of A new beverage by Snapple is currently...

Question 4

Because of the time, cost, and confidentiality problems of test markets, manufacturers often turn to __________, a technique that simulates a full-scale test market but in a limited fashion.

Accepted Answer

Simulated test markets are a technique that simulates a full-scale test market but in a limited fashion. This technique saves time, cost, and maintains confidentiality. In this method, a small group of people are selected and presented with a hypothetical product or situation to provide feedback, which is then analyzed to make decisions about the product's launch.

Question 5

Slotting fees are paid by manufacturers to grocers in payment for space-or slots-in their warehouses and on their retail shelves.Such slotting fees most significantly increase the cost of which stage of the new-product process for food manufacturers?

Accepted Answer

Slotting fees are paid by manufacturers during the commercialization stage of the new-product process. This is because they are paying for the shelf space and warehouse space for their new product to be sold.

Question 6

Commercialization is the stage in the new-product processes

Accepted Answer

Commercialization is the stage in the new-product processes that positions and launches a new product in full-scale production and sales. It is the stage where the company introduces the product to the market and starts making it available to consumers for purchase.

Question 7

The most expensive stage for most new products is

Accepted Answer

Commercialization is the stage where the product is launched and introduced to the market. This stage involves heavy spending on advertising, promotion, packaging, pricing, and distribution. It is the most expensive stage for new products because it requires significant resources to create initial awareness, generate demand, and establish a stable market presence for the product. The other stages like screening and evaluation, development, business analysis, and market testing require spending, but the costs are generally lower compared to the commercialization stage. Therefore, option A) commercialization is the best choice.

Question 8

A failure fee is a penalty payment

Accepted Answer

A failure fee is typically paid by a manufacturer to a retailer as compensation for sales not made while the product was on the shelf. It is essentially a penalty for failing to meet sales targets or for creating excess inventory.

Question 9

Commercialization refers to

Accepted Answer

Commercialization refers specifically to the stage of the new-product process where the product is launched in full-scale production and sales. While some of the other options may relate to aspects of commercialization, such as affordability or mass-production, only D specifically describes the stage of the new-product process that is commonly referred to as commercialization.

Question 10

A slotting fee is a payment a

Accepted Answer

A slotting fee is a payment made by a manufacturer to a retailer to place a new product on their shelf. This fee is meant to compensate the retailer for the space and effort required to introduce a new product to their inventory.

Question 11

When audiences are allowed to preview actual movies such as Pretty Woman and National Treasure: Book of Secrets before they are released to the general public, it is a part of the __________ stage of the new-product process.

Accepted Answer

This is a clear example of market testing, where the product (movie) is made available to a select group (audience) to gather feedback and assess their interest before releasing it to the general public.

Question 12

Time to market or __________ is often vital in introducing a new product.

Accepted Answer

Time to market refers to the amount of time it takes from the conception of a product to the moment it is available for purchase by consumers. In today's fast-paced business environment, speed is often crucial in order to stay ahead of competitors and meet the demands of consumers. Therefore, option C: "speed" is the best choice to complete the sentence.

Question 13

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers.This was done on a limited scale to determine consumer reactions before national distribution of the product.Breyer's new product was in the __________ stage of the new-product process.

Accepted Answer

The product is in the market testing stage of the new-product process, as Breyer's is testing the product on a limited scale to determine consumer reactions before national distribution.

Question 14

The test market in the U.S.that most closely matches the average U.S.demographics in the 2000 Census is

Accepted Answer

Wichita Falls, TX, has been found to most closely match the demographics of the entire U.S. population based on factors such as age, race, income, education, and geography.

Question 15

If a new grocery product does not achieve a predetermined sales target, some retailers require a penalty payment by the manufacturer to compensate the retailer for sales its valuable shelf space failed to make.What is this type of payment called?

Accepted Answer

This type of payment is commonly known as a failure fee, where the manufacturer is penalized for not being able to achieve the sales target for their product, and compensate for the retailer's loss of potential sales. The other options such as dropout charge, loser fee, retailer spiff, and drop-off settlement do not accurately describe this type of payment.

Question 16

Test marketing involves offering a product for sale

Accepted Answer

Test marketing involves offering a product for sale on a limited basis in a defined area to evaluate its performance before a full-scale launch. This helps to minimize risks and costs associated with introducing new products or services. The other options do not accurately describe the process of test marketing.

Question 17

Which of the following statements is most accurate?

Accepted Answer

Test marketing is better suited to relatively inexpensive consumer products because testing services or industrial products can be expensive and impractical. Additionally, expensive and high-end testing environments may not be representative of the product's overall market. Hence, relatively less expensive products are more suitable for test marketing as they can be easily tested in various locations and markets, giving a better understanding of how the product performs in a real-world scenario.

Question 18

Which of the products listed below would be the best candidate for full-scale market testing?

Accepted Answer

A new iced coffee beverage from Snapple would be the best candidate for full-scale market testing as it is a new product with potential for a wide target audience. Testing could help determine its popularity and potential profitability.

Question 19

Simulated test markets (STMs) are often run in shopping malls, where consumers are asked to identify

Accepted Answer

The answer of Simulated test markets (STMs) are often run...

Question 20

The stage of the new-product process that positions and launches a new product in full-scale product and sales refers to __________.

Accepted Answer

Commercialization refers to the stage where the new product is positioned and launched in the market for full-scale production and sales. Fabrication refers to the process of creating or manufacturing the product, disbursement and distribution refer to the stages of getting the product to the market, and ultimate distribution is not a commonly used term in the new-product process.

Quiz 10: Developing New Products and Services