Question 1

Dexo Inc. plans to launch a new version of its beverage, Lime n' Lemon. The new variant will be similar to the current Lime n' Lemon in terms of taste and packaging, but it will be fortified with vitamins and minerals. The company decides to market the new drink as Lime n' Lemon Extreme. Which of the following new product categories does this new beverage fall into?

Accepted Answer

The new variant of Lime n' Lemon is an improvement and revision of the existing product, as it has been fortified with vitamins and minerals while retaining the original taste and packaging. It is not a new-to-the-world product, as it is a variation of an existing product, and neither is it a new-to-the-firm product or a product repositioning.

Question 2

With regard to new product development, the success of a new product:

Accepted Answer

The success of a new product does not guarantee the success of additional low-cost brand extensions as they may require different marketing strategies and consumer preferences.

Question 3

Light Eats is a buffet-style salad bar with locations in the South, West, and Midwest United States. It serves a variety of salads, soups, and fresh farm products for the health conscious. Recently, it has introduced a new unit called Frozen Fruits, which serves ice creams and sorbets made from fresh fruits and vegetables. Which of the following new product categories does the Frozen Fruits unit fall into?

Accepted Answer

The Frozen Fruits unit is an addition to the existing product line of Light Eats, as it serves a new category of products (ice creams and sorbets made from fresh fruits and vegetables) alongside its existing salad, soup, and farm product offerings.

Question 4

Which of the following best corresponds to repositioning of products?

Accepted Answer

Repositioning of products refers to changing the product's marketing or target audience to revitalize its sales. Retargeting products for new use is an example of repositioning. The other options - line extensions, recovery from sales dips, and novel inventions - are not examples of repositioning.

Question 5

Classics Corp. has been focusing their production efforts entirely on creating intricate artifacts and other collectibles. However, in light of stiff competition and demand, they decide to expand their product class by introducing their first line of dinnerware. In which of the following new product categories would the dinnerware fall?

Accepted Answer

The dinnerware is a new product category for Classics Corp., making it new-to-the-firm, as they have not previously produced or sold dinnerware.

Question 6

Wallflower Inc. sells cards, gift-wrapping materials, and collectibles. To boost sales of its existing products, Wallflower added fresh cut flower arrangements as part of its product offering. In which of the new product categories would the floral arrangements fall?

Accepted Answer

The floral arrangements are a new product category for Wallflower Inc., but they are not new-to-the-world products because they already exist in the market. They are also not a product repositioning or improvement of an existing product category. Therefore, the floral arrangements are classified as new-to-the-firm products because they are a new offering for Wallflower Inc.

Question 7

Which of the following statements is true of new product planning and development?

Accepted Answer

The answer of Which of the following statements is true...

Question 8

In the context of new product development, the inability of a firm to satisfy customer needs can be attributed to:

Accepted Answer

When a firm fails to satisfy customer needs in new product development, it could be attributed to a failure on the part of the firm to stick close to its core competencies. This means that the firm may have ventured outside its area of expertise, resulting in a product that does not adequately meet customers' needs.

Question 9

Fun Time Games Inc. develops and markets mobile entertainment software. The company's application portfolio includes single and multiplayer games, ring tones, and other entertainment content. Its most popular mobile game is the Lightz200. Recently, it released a new, upgraded version compatible with all major mobile handsets called the Lightz201 series. Which of the following product categories would best describe the Lightz201 series?

Accepted Answer

The Lightz201 series is an upgraded version of the existing Lightz200 game, indicating that it is an improvement and revision of an existing product.

Question 10

Products that are inventions and create a whole new market are called _____.

Accepted Answer

New-to-the-world products refer to products that are completely new inventions and create a whole new market as they offer customers a new category of product to consider.

Question 11

_____ are products that extend current product lines to current markets.

Accepted Answer

Additions to existing product lines extend current product lines to current markets by offering new variations or models of existing products.

Question 12

In order to compete with its counterpart, Fine Snacks, Kasey's Pretzels Corp. introduced honey-mustard pretzels to its product line. This is an example of _____.

Accepted Answer

The introduction of honey-mustard pretzels is an addition to Kasey's existing product line, as they are not introducing a completely new product category (like Fine Snacks did) nor are they repositioning an existing product.

Question 13

The primary reason for new product failure is the inability of the selling company to match its offering to the _____.

Accepted Answer

The primary reason for new product failure is the inability of the selling company to match its offering to the needs of the customers. If the product does not align with the needs or desires of the target market, it is unlikely to be successful. Competitor products, prevailing price, and market leader's selling price may all have an impact on sales, but they are not the primary reason for new product failure.

Question 14

For the last decade, Value Foods has sold frozen vegetables in various types of sauces. In 2002, the company changed its packaging and began offering frozen vegetables in resealable bags with separate frozen-sauce pellets. In which of the new product categories would this new method of packaging frozen vegetables fall?

Accepted Answer

The new packaging method represents an improvement and revision of existing products, as it enhances the convenience and usability of the frozen vegetables without introducing a completely new product.

Question 15

In new product planning and development, _____ costs refer not only to alternative uses of funds spent on product failures but also to the time spent in unprofitable product development.

Accepted Answer

Opportunity costs refer to the value of the best alternative forgone when a particular course of action is taken, and in new product planning and development, it refers to the cost of not pursuing other profitable opportunities due to resources being tied up in unprofitable product development. This includes both the funds spent on product failures as well as the time spent on development that could have been used on more profitable projects. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered, while direct costs are costs that are directly attributable to the production of a product or service. Acquisition costs refer to the costs associated with acquiring a new asset or company.

Question 16

Xapple Inc., a manufacturer of bottled lemonade and other beverages, has released a new, zero-calorie drink called Diet Lemonade. This is an example of _____.

Accepted Answer

This is an addition to an existing product line (lemonade and other beverages), as opposed to a completely new product or a repositioning of an existing product.

Question 17

To its line of canned tomato products, Value Foods introduces cans of readymade diced-and-spiced tomatoes. In which of the following new product categories would diced-and-spiced canned tomatoes fall?

Accepted Answer

Diced-and-spiced canned tomatoes are an addition to the existing product line of canned tomato products.

Question 18

HealthPlus Corp., a popular manufacturer of processed food products, recently introduced specialty infant food under the brand name of Nutrababy. Which of the following new product categories does this product fall into?

Accepted Answer

The answer of HealthPlus Corp., a popular manufacturer of processed...

Question 19

Products that take a firm into a product type new to it but that are not new to the world are known as _____.

Accepted Answer

New-to-the-firm products refer to products that are new to the company but not new to the world. These products are considered an expansion of the firm's product portfolio, and they allow the firm to access new markets or appeal to new customer segments without necessarily investing in research and development.

Question 20

Stacy, a marketing manager at a beverage manufacturing firm, conducts a market research to analyze the sales dip of the company's product, Zeal, in the last quarter. Through research, she understands that there is an immediate customer demand requiring the use of organic ingredients to its cola, Zeal. She discussed with the research and development team and decides to enhance Zeal with the introduction of organic ingredients to it. This new product would fall into the category of _____.

Accepted Answer

The introduction of organic ingredients to Zeal is an improvement and revision of the existing product, not a completely new product or addition to the product line.

Quiz 7: New Product Planning and Development