Question 1

Which of the following stages of new product development typically involves specifying the details of each idea's technological feasibility,its cost,how it can be marketed,and its market potential?

Accepted Answer

Idea evaluation is the stage in which the ideas generated are analyzed and evaluated. It includes specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential.

Question 2

Which of the following statements best describes the process of idea screening in new product development?

Accepted Answer

Idea screening is the process of evaluating various ideas for new products or services and selecting the most promising ones to be developed further. This involves examining each idea in detail to determine its feasibility, market potential, and compatibility with the organization's resources and capabilities. The purpose of idea screening is to narrow down the list of potential new products so that only the most viable ideas are pursued further. Therefore, option B is the best description of the process. Options A and C describe subsequent stages of product development, while option D is not related to the idea screening process.

Question 3

Which of the following statements is true about me-too products?

Accepted Answer

Me-too products are those that are similar to existing products in the market. As small businesses may not have the resources to develop completely new and innovative products, they may opt for me-too products to stay competitive. Therefore, option B is the correct choice. Option A is incorrect as skipping steps in the new product development process can lead to failure. Option C is also incorrect as idea generation is a shorter stage when developing me-too products as ideas already exist in the market. Option D is also incorrect as testing a me-too product's differential advantage over competition is important to identify its unique selling proposition and help it stand out in the market.

Question 4

The research and development team of Leonide Inc.has generated five different product ideas.All five ideas are being rated against each other on their characteristics such as product uniqueness,idea profitability,protectable intellectual property,and product team quality.Based on their ranking in this stage,only three ideas will make it to the immediate next step which will be the stage of _____.

Accepted Answer

The stage that comes after rating the ideas against each other is feasibility study, where the selected three ideas will be further evaluated for feasibility and practicality before moving on to the commercialization stage. Therefore, option C, feasibility study, is the correct choice. Option A, idea generation, is not applicable as the ideas have already been generated. Option B, commercialization, is not the immediate next step, as the ideas need to be further evaluated before they can be commercialized. Option D, market introduction, is also not the immediate next step as the ideas are not ready for market introduction without further evaluation.

Question 5

A service typically exhibits the characteristic of _____ because if it is not used when offered,it cannot be saved for later use.

Accepted Answer

Perishability refers to the fact that services cannot be stored or saved for later use. If a service is not utilized when offered, it is lost. Tangibility refers to how physical and tangible a service is, absorptivity refers to how easily a service can be absorbed by the customer, and homogeneity refers to how similar or consistent a service is across different locations or providers.

Question 6

The first time Jena visited Blue Corals Inn,a restaurant in her neighborhood,she was delighted with the food and service quality.However,the next time she dined at the same place,the restaurant's food and service seemed to have lost its quality.This scenario best illustrates the _____ characteristic of services.

Accepted Answer

The heterogeneity characteristic of services refers to the variability in quality that can occur from one service encounter to the next. This is illustrated in the scenario, where Jena's experience with the food and service quality at the restaurant differed between her first and second visits. Perishability, tangibility, and absorptivity do not apply to this scenario.

Question 7

Purchasing a car with a warranty is most likely to be an example of a _____.

Accepted Answer

A car with a warranty is a good-dominated product because it is primarily a tangible item (the car) accompanied by a service (the warranty).

Question 8

Which of the following statements is true of the total product approach?

Accepted Answer

The total product approach involves looking beyond just the basic physical product and considering other aspects such as the brand, packaging, customer service, and overall experience. By using this approach, businesses can better understand their customers' needs and preferences and create a more comprehensive and effective marketing strategy. Therefore, using the total product approach can indeed help businesses get inside their customers' heads. The other statements are incorrect.

Question 9

While developing a new product,in the product development stage,the first versions of products are used in further consumer testing.These first versions of products are called _____.

Accepted Answer

The first versions of a product, which are used in consumer testing in the product development stage, are called prototypes. A prototype is the initial sample or model of a product that is made to test and evaluate its design, functionality, and features before it is mass-produced. A prototype can be used to identify any flaws or issues with the product and make necessary adjustments and improvements before launch. Therefore, option B is the correct answer.

Question 10

Which of the following is the first stage of the new product development process?

Accepted Answer

Idea generation is the first stage in the new product development process where new ideas for a product or service are generated. This can be done through various means like customer feedback, market research, brainstorming, and competitive analysis.

Question 11

A(n)_____ typically means the core product plus features that tend to differentiate the product from competition.

Accepted Answer

An augmented product refers to the core product plus additional features that distinguish it from competitors. A pure good is a product without any additional features or services, while a hybrid product combines physical products with additional digital services or features. A me-too product is a copy or imitation of a successful product in the market without much differentiation.

Question 12

An item's capability of being touched,seen,tasted,or felt is called _____.

Accepted Answer

Tangibility refers to an item's ability to be touched, seen, tasted, or felt. Legitimacy refers to whether an item is legal or authorized, mutuality refers to a relationship of mutual exchange or benefit, and perishability refers to the likelihood of an item spoiling or expiring.

Question 13

ZestOne Technologies has launched a series of tablet computers that are similar to a competitor's product that already exists in the market.Such products are typically termed as _____.

Accepted Answer

Me-too products are products that are similar or copied from an existing product that is already present in the market. In this case, ZestOne Technologies is launching a tablet computer that is similar to a competitor's product that already exists in the market, making it a me-too product. The other options - prototypes, augmented products, and complementary goods - do not fit the description of this scenario.

Question 14

Pure goods are more _____ than pure services.

Accepted Answer

Pure goods, such as a standardized product on a production line, tend to be more homogenous or uniform in nature compared to pure services, which may vary depending on the provider, location, or timing.

Question 15

Which of the following statements is true about products?

Accepted Answer

Nowadays, many products are blends of goods and services. For instance, when purchasing a mobile phone, you are not just buying a tangible device but also the software that comes with it and the customer support that assists you whenever a problem arises.

Question 16

Your best and most loyal customer,that "perfect fit" customer is called your ________.

Accepted Answer

The term "perfect fit" customer refers to a specific segment of the market that a business wants to target and serve. This segment is known as the target market, which consists of customers who are most likely to buy a company's products or services and become repeat customers. A customer focus group is a research method used to gather feedback from customers, but it is not a specific customer segment. A strategic group refers to a group of firms within an industry that share similar strategic positions. A sales pitch is a presentation or speech that promotes a product or service.

Question 17

Which of the following statements is true about pure services?

Accepted Answer

Pure services are characterized by their heterogeneity, meaning they can vary greatly from one service provider to another or even from one service encounter to another with the same provider. This variability is due to the human element involved in service delivery.

Question 18

The core product typically includes:

Accepted Answer

The core product is the basic description of what a company or product does, such as its main function or purpose.

Answer: B
 The core product may also include features that differentiate it from competing products and make it more appealing to customers.

Answer: C
 The actual or augmented product may reflect what a product means to the customers, but this is not typically included in the core product.

Answer: D
 The actual or augmented product may include the value and cost benefits customers incur from a product, but this is not typically included in the core product.

Question 19

Which of the following is most likely to be an example of a good-dominated product?

Accepted Answer

Purchasing a sewing machine with a warranty means that the buyer is getting a durable and reliable product with the added assurance of a warranty, which is a characteristic of good-dominated products. The other options (leasing, renting, and hiring the services of a tailor) involve temporary use of the product or service, which do not fall under the category of good-dominated products.

Question 20

The entire bundle of products,services,and meanings of one's offering; including extras like service,warranty,or delivery,as well as what the product means to the customer refers to _____.

Accepted Answer

The total product refers to the entire bundle of products, services, and meanings of one's offering, including extras like service, warranty, or delivery, as well as what the product means to the customer. This includes the core product, the augmented product, and any additional benefits or features that come with the product. A is incorrect because the augmented product only includes the additional benefits and features beyond the core product. C is incorrect because a hybrid product is a combination of physical products and services. D is incorrect because a pure good is a tangible product with no added services or features.

Quiz 9: Small Business Marketing: Product and Pricing Strategies