Question 1

Development refers to the stage of the new-product process
A)where initial ideas are generated and discussed.
B)that turns an idea on paper into a prototype.
C)where product characteristics and product benefits are selected.
D)where cross-functional team members and leaders are selected and initial tasks are assigned.
E)where the first version of a product enters the marketplace.

Accepted Answer

Development is the stage where an idea is transformed into a prototype, which is a physical representation of the new product. This stage is crucial because it allows the company to test and refine the product before it goes to market. The development stage involves creating a working model of the product, testing and evaluating its performance, and making adjustments as needed. It is an iterative process that takes time and effort to ensure that the final product meets the needs of the target audience.

Question 2

The stage of the new-product process that turns an idea on paper into a prototype is referred to as __________.
A)idea generation
B)screening and evaluation
C)business analysis
D)commercialization
E)development

Accepted Answer

The development stage involves turning the idea into a tangible product or prototype that can be tested and refined before moving on to commercialization.

Question 3

To maximize profits,service providers use tools such as __________ to charge different prices for different times of the day or week to help match the supply and demand for their services.
A)off-peak pricing
B)dynamic pricing
C)capacity pricing
D)down-time pricing
E)yield management pricing

Accepted Answer

Off-peak pricing is a pricing strategy in which a service provider charges different prices for different times of the day or week to help match the supply and demand for their services.

Question 4

Customer experience management (CEM)is
A)the integration of the service component of the marketing mix with efforts to influence consumer demand.
B)the unique combination of benefits received by targeted buyers that include quality,convenience,on-time delivery,and both before-sale and after-sale service at a specific price.
C)the process of managing the entire customer experience within the company.
D)a cluster of benefits that an organization promises customers to satisfy their needs.
E)the ability of logistics management to satisfy users in terms of time,dependability,communication,and convenience.

Accepted Answer

Customer experience management (CEM) is the process of managing the entire customer experience within the company. It involves understanding customers' needs and expectations, designing and delivering products or services that meet those needs, and continually improving the customer experience based on feedback and insights. CEM focuses on creating positive interactions between a company and its customers throughout their entire relationship, from initial contact to post-purchase support. Options A, B, D, and E do not accurately describe what CEM is.

Question 5

Detailed financial projections and assessments of marketing and product synergies are a part of which stage of the new-product process?
A)idea generation
B)market testing
C)business analysis
D)development
E)commercialization

Accepted Answer

Detailed financial projections and assessments of marketing and product synergies are a part of the business analysis stage of the new-product process. This stage involves evaluating the potential profitability of the new product through analyzing costs, sales forecast, and competition.

Question 6

A 3M researcher worked with university students to develop the Post-it^® Flag Highlighter.His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives.At which stage of the new-product process was this product? A)idea generation B)screening and evaluation C)business analysis D)new-product strategy development E)concept testing

Accepted Answer

The researcher worked with university students to develop the Post-it Flag Highlighter, indicating that the idea had already been generated. The team then evaluated the technical feasibility and met the firm's new-product objectives, suggesting that they were screening and evaluating the idea. Therefore, the product was at the screening and evaluation stage of the new-product process.

Question 7

One tool available for services when dealing with capacity management is to use __________ to charge different prices during different times of the day or the week to help match the supply and demand for their services.
A)variable hours of operation-opening or closing a store at different times
B)sales promotion incentives such as coupons
C)off-peak pricing
D)build-to-order service delivery systems
E)rationing

Accepted Answer

Off-peak pricing is a tool used to charge different prices during different times of the day or the week to help match the supply and demand for services. This allows services to better manage their capacity and avoid overbooking during peak times while still generating revenue during slower times. The other options listed are not directly related to capacity management through pricing strategies.

Question 8

An external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product is referred to as
A)new-product strategy development.
B)idea generation.
C)crowdsourcing.
D)market testing.
E)a concept test.

Accepted Answer

A concept test is used to present a new-product idea to consumers for their reactions and feedback before investing in the actual production of the product. This allows companies to gauge consumer interest and make improvements before launching the product. The other options listed either do not involve consumer testing or are not specific to preliminary testing of a new-product idea.

Question 9

An assessment of the "fit" of the proposed new products,from whether it can be economically developed and manufactured to the marketing strategy needed,take place during which stage of the new-product process?
A)business analysis
B)screening and evaluation
C)new-product strategy development
D)development
E)These activities are addressed at every stage with the exception of new-product strategy development.

Accepted Answer

Business analysis is the stage in the new-product process where the proposed new products are assessed for their economic feasibility, manufacturing capabilities and marketing strategy requirements. This stage involves conducting a thorough analysis of the potential costs, revenues and profits associated with the new product, as well as evaluating the resources and capabilities needed to develop and manufacture the product. It also involves assessing the market potential and competition for the new product, which can help determine the appropriate marketing strategy needed to successfully launch and market the product.

Question 10

Business analysis refers to the stage of the new product process
A)where the target markets are selected and resources are allocated to reach them.
B)where the target market segments that show potential are selected and those that do not are eliminated.
C)that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.
D)where there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI)that the new product will give back to the firm.
E)that internally and externally evaluates new-product ideas to eliminate those warranting no further effort.

Accepted Answer

Business analysis is the stage in the new product process where the specifications of the product are determined and the marketing strategy required to bring the product to market is defined along with financial projections. This stage focuses on determining whether the product will be profitable and aligns the resources needed to bring the product to market.

Question 11

A full-scale operating model of the product under development is referred to as a
A)sample.
B)framework.
C)template.
D)prototype.
E)blueprint.

Accepted Answer

A full-scale operating model of the product under development is a prototype. A prototype is a preliminary version of a product that can be used to evaluate and test its design, functionality, and performance. It is a physical or digital model that demonstrates the key features and capabilities of the final product before it is launched into the market. A prototype can help developers identify and fix any flaws, issues or bugs in the product design, and improve its overall quality and usability.

Question 12

__________ includes considering employee interactions with customers to ensure they are consistently delivered and experienced,clearly differentiated from other offerings,and relevant and valuable to the target market.
A)Capacity management
B)Customer experience management
C)Derived demand
D)Internal marketing
E)The key service factor

Accepted Answer

Customer experience management involves ensuring that the interactions between employees and customers are consistently delivered and experienced, clearly differentiated from competitors, and relevant to the target market. This includes strategies for training employees, designing customer touchpoints and creating a consistent brand experience. Capacity management, derived demand, internal marketing, and the key service factor do not specifically address the management of customer experiences.

Question 13

A general review of the marketing strategy,product assessment,economic analysis,and legal examination would all take place during which stage of the new-product process?
A)business analysis
B)screening and evaluation
C)new-product strategy development
D)development
E)These activities are addressed at every stage except new-product strategy development.

Accepted Answer

The business analysis stage involves evaluating the potential success of the new product, which includes analyzing the marketing strategy, assessing the product, conducting an economic analysis, and examining the legal aspects of the product. This stage is focused on determining the viability of the new product, and these activities are essential in making that determination. The screening and evaluation stage evaluates the product concepts and ideas to determine which ones are feasible, while the new-product strategy development stage focuses on developing a plan for bringing the product to market.

Question 14

For services,business analysis must consider __________,which finds ways to match the availability of the service to when it is needed.
A)capacity management
B)customer experience management
C)derived demand
D)internal marketing
E)the seven I's of services

Accepted Answer

Capacity management involves analyzing the availability of a service and finding ways to match it with the demand for that service. This is important for services because they are typically intangible and cannot be stored, making it crucial to manage the capacity of the service to meet customer demand.

Question 15

The stage of the new product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as
A)idea generation.
B)business analysis.
C)marketing analysis.
D)product development.
E)commercialization.

Accepted Answer

Business analysis is the stage of the new product process that involves analyzing the potential profitability and financial feasibility of the product. This includes specifying the features of the product, identifying the target market, and estimating the costs involved in production and marketing. The result of this stage is a business plan that outlines the marketing strategy and financial projections for the product. Therefore, option B is the correct answer.

Question 16

A concept test is an
A)internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product.
B)external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product.
C)internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item.
D)in-house computer simulation of the new product that closely resembles the actual product to forecast sales.
E)in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan.

Accepted Answer

A concept test is an external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product. This allows for feedback and insight into whether or not the new-product idea is viable before investing time and money into the actual product development.

Question 17

Concept tests are part of which stage in the new-product process?
A)development
B)screening and evaluation
C)idea generation
D)new-product strategy development
E)business analysis

Accepted Answer

Concept tests are part of the screening and evaluation stage in the new-product process. This stage involves evaluating and testing the feasibility and potential success of different product ideas before investing resources into further development. Concept tests help to determine consumer interest, potential market size, and feasibility of bringing the product to market.

Question 18

All of the following actions occur during the business analysis stage of the new-product process EXCEPT:
A)using capacity management to find ways to match the availability of the service offering to when it is needed.
B)assessing the marketing and product synergies related to the company's existing operations.
C)turning the idea on paper into a prototype.
D)determining whether the new product can be protected with a patent or copyright.
E)assessing whether the proposed new product fits with the company's mission and objectives.

Accepted Answer

Turning the idea on paper into a prototype is a step in the product development stage, not the business analysis stage.

Question 19

Factors such as specifying product features,marketing strategy,and financial projections are a part of which stage of the new-product process?
A)idea generation
B)market testing
C)development
D)commercialization
E)business analysis

Accepted Answer

These factors, including business analysis, are all a part of the business analysis stage of the new-product process. This stage involves analyzing the potential profitability and feasibility of the new product idea.

Question 20

A prototype is a(n)
A)miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization.
B)full-scale operating model of the product under development.
C)sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release.
D)simulated operating model of the product given to consumers to use in full-scale field testing.
E)a digital version of a product produced in multiple shapes,colors,and sizes to determine which version of the product customers like best.

Accepted Answer

A prototype is a full-scale operating model of the product under development, used to test and refine the design before final production.

Quiz 10: Developing New Products and Services

Development refers to the stage of the new-product process

The stage of the new-product process that turns an idea on paper into a prototype is referred to as __________.

To maximize profits,service providers use tools such as __________ to charge different prices for different times of the day or week to help match the supply and demand for their services.

Customer experience management (CEM) is

Detailed financial projections and assessments of marketing and product synergies are a part of which stage of the new-product process?

A 3M researcher worked with university students to develop the Post-it® Flag Highlighter.His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives.At which stage of the new-product process was this product?

One tool available for services when dealing with capacity management is to use __________ to charge different prices during different times of the day or the week to help match the supply and demand for their services.

An external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual product is referred to as

An assessment of the "fit" of the proposed new products,from whether it can be economically developed and manufactured to the marketing strategy needed,take place during which stage of the new-product process?

Business analysis refers to the stage of the new product process

A full-scale operating model of the product under development is referred to as a

__________ includes considering employee interactions with customers to ensure they are consistently delivered and experienced,clearly differentiated from other offerings,and relevant and valuable to the target market.

A general review of the marketing strategy,product assessment,economic analysis,and legal examination would all take place during which stage of the new-product process?

For services,business analysis must consider __________,which finds ways to match the availability of the service to when it is needed.

The stage of the new product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as

A concept test is an

Concept tests are part of which stage in the new-product process?

All of the following actions occur during the business analysis stage of the new-product process EXCEPT:

Factors such as specifying product features,marketing strategy,and financial projections are a part of which stage of the new-product process?

A prototype is a(n)

A 3M researcher worked with university students to develop the Post-it^® Flag Highlighter.His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives.At which stage of the new-product process was this product?