Question 1

In terms of new product development, identify an advantage that some Japanese firms appear to possess.

Accepted Answer

A)  Their managers understand the fact that market share will not lead to customer loyalty, which in turn will not lead to profits. 
B)  The emphasis on short-term profits by their managers. 
C)  Their management is free from the pressure of steady improvement in earnings per share. 
D)  The knowledge that profitability in the long run is not supported by the stock market. 
A)  Their managers understand the fact that market share will not lead to customer loyalty, which in turn will not lead to profits. 
B)  The emphasis on short-term profits by their managers. 
C)  Their management is free from the pressure of steady improvement in earnings per share. 
D)  The knowledge that profitability in the long run is not supported by the stock market.

Question 2

Richard Simmons Dijon Vinaigrette Salad Spray seemed like a good idea. It was a low-calorie idea for putting salad dressing on salad fixings without overpowering the greens. Unfortunately, the product's association with fitness guru Richard Simmons offended many potential consumers who consider him too flamboyant, and the product failed. What kind of opportunity costs did the salad spray's manufacturer incur?

Accepted Answer

A)  Costs involved in producing the salad spray. 
B)  Explicit cost 
C)  Outlay Cost 
D)  Time spent in unprofitable product development. 
A)  Costs involved in producing the salad spray. 
B)  Explicit cost 
C)  Outlay Cost 
D)  Time spent in unprofitable product development.

Question 3

Which of the following is an internal source of new product ideas?

Accepted Answer

A)  Academic journals 
B)  Management 
C)  Consultants 
D)  Focus groups 
A)  Academic journals 
B)  Management 
C)  Consultants 
D)  Focus groups

Question 4

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

Accepted Answer

A)  needs of the customers. 
B)  products offered by competitors. 
C)  prevailing price for the product. 
D)  market leader's selling price. 
A)  needs of the customers. 
B)  products offered by competitors. 
C)  prevailing price for the product. 
D)  market leader's selling price.

Question 5

The inability to satisfy consumer needs can be attributed to all of the following, except

Accepted Answer

A)  inadequacy of upfront intelligence efforts. 
B)  failure on the part of company to stick close to its core competencies. 
C)  the inability to provide better value than competing products and technologies. 
D)  new product sales growing far more rapidly than sales of current products. 
A)  inadequacy of upfront intelligence efforts. 
B)  failure on the part of company to stick close to its core competencies. 
C)  the inability to provide better value than competing products and technologies. 
D)  new product sales growing far more rapidly than sales of current products.

Question 6

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

A)  new-to-the-world products. 
B)  new category entries. 
C)  additions to product lines. 
D)  product improvements. 
A)  new-to-the-world products. 
B)  new category entries. 
C)  additions to product lines. 
D)  product improvements.

Question 7

Which of the following indicates the direction in which the organization is moving with respect to its current products and markets?

Accepted Answer

A)  Growth vector matrix 
B)  Line extension 
C)  Market segmentation 
D)  Market diversification 
A)  Growth vector matrix 
B)  Line extension 
C)  Market segmentation 
D)  Market diversification

Question 8

The 78th McDonald's outlets in Hawaii introduced a breakfast meal that consists of egg, rice and spam. McDonald's management decides to serve spam for breakfast through the end of July and base its decision to include it in the regular menu consisting of rice, Portuguese sausage, and saimin, based on its popularity. This best illustrates

Accepted Answer

A)  product development. 
B)  test marketing. 
C)  sales promotion. 
D)  direct marketing. 
A)  product development. 
B)  test marketing. 
C)  sales promotion. 
D)  direct marketing.

Question 9

Which of the following is a reason why new products have failed once they reach the marketplace?

Accepted Answer

A)  Extensive marketing support. 
B)  Product differentiation. 
C)  Faulty estimates of marketing potential. 
D)  Use of advertisements to position brand differences. 
A)  Extensive marketing support. 
B)  Product differentiation. 
C)  Faulty estimates of marketing potential. 
D)  Use of advertisements to position brand differences.

Question 10

Some ideas for new television shows appear to be certain successes because of story-lines and/or actors performing in them. However, such television shows typically have a budget that may be exceeded by a show set in more exotic locations around the world or by the increased salary demands of its stars. This cost overrun would be an example of a (n) _____ risk.

Accepted Answer

A)  functional 
B)  hierarchical 
C)  market 
D)  internal 
A)  functional 
B)  hierarchical 
C)  market 
D)  internal

Question 11

Various alternatives exist for creating and managing cross-functional product development teams. Two of the better-known methods are the establishment of skunkworks and

Accepted Answer

A)  rugby approach. 
B)  the iceberg method. 
C)  idea equity. 
D)  the tag team approach. 
A)  rugby approach. 
B)  the iceberg method. 
C)  idea equity. 
D)  the tag team approach.

Question 12

Ideally, products that generate a maximum dollar profit with a minimum amount of risk should be

Accepted Answer

A)  harvested or divested. 
B)  developed and marketed. 
C)  produced only for the local market. 
D)  shelved for future use. 
A)  harvested or divested. 
B)  developed and marketed. 
C)  produced only for the local market. 
D)  shelved for future use.

Question 13

Coca-Cola plans to launch a new version of Diet Coke called Diet Coke Plus. The drink will be similar to the current Diet Coke, but it will be fortified with vitamins and minerals. The Diet Coke Plus would be a part of which of the following new products based categories?

Accepted Answer

A)  New-to-the-world products 
B)  New category entries 
C)  Product improvements 
D)  Repositionings 
A)  New-to-the-world products 
B)  New category entries 
C)  Product improvements 
D)  Repositionings

Question 14

Mary, who was on vacation, in Atlanta, Georgia, bought Heinz hot pepper ketchup for her family. Upon returning to Houston, Texas, she was unable to find the product on the supermarket shelves. When asked about the product, the salesperson informed her that the product was launched in Atlanta for on a trial basis, and was withdrawn due to its low sales. Heinz should have been in this stage of new product development.

Accepted Answer

A)  Product planning 
B)  Commercialization 
C)  Product development 
D)  Test marketing 
A)  Product planning 
B)  Commercialization 
C)  Product development 
D)  Test marketing

Question 15

This refers to creating new products to replace existing ones.

Accepted Answer

A)  Market penetration 
B)  Product development 
C)  Market development 
D)  Market diversification 
A)  Market penetration 
B)  Product development 
C)  Market development 
D)  Market diversification

Question 16

Establishing progress goals that facilitate the "proceed" or "do not proceed" decisions regarding continuation of projects is an integral part of managing

Accepted Answer

A)  strategic risk. 
B)  competitive risk. 
C)  internal risk. 
D)  market risk. 
A)  strategic risk. 
B)  competitive risk. 
C)  internal risk. 
D)  market risk.

Question 17

Which of the following is not essential to the generation of new product ideas?

Accepted Answer

A)  Technology push 
B)  Market pull 
C)  Customer needs and wants 
D)  High investments 
A)  Technology push 
B)  Market pull 
C)  Customer needs and wants 
D)  High investments

Question 18

Minefree Games Inc. develops and markets mobile entertainment software. The company's application portfolio includes single and multiplayer games, ring tones, and other entertainment content. Their most popular mobile game is the Nightfly 200. Recently, they released a new improved version compatible with all major mobile handsets, the Nightfly 201 series. Which is the product category that would best describe Nightfly 201 series?

Accepted Answer

A)  New-to-the-world products 
B)  Additions to product lines 
C)  Repositionings 
D)  Product improvements 
A)  New-to-the-world products 
B)  Additions to product lines 
C)  Repositionings 
D)  Product improvements

Question 19

A current product of a company has been enhanced to better serve consumer needs. The new product would fall into which of the following categories?

Accepted Answer

A)  New-to-the-world products 
B)  New category entries 
C)  Additions to product lines 
D)  Product improvements 
A)  New-to-the-world products 
B)  New category entries 
C)  Additions to product lines 
D)  Product improvements

Question 20

Product development and diversification can be characterized as

Accepted Answer

A)  product mix strategies. 
B)  strategies based on differentiation. 
C)  target market segmentation strategies. 
D)  cost leadership strategies. 
A)  product mix strategies. 
B)  strategies based on differentiation. 
C)  target market segmentation strategies. 
D)  cost leadership strategies.

In terms of new product development, identify an advantage that some Japanese firms appear to possess.

Which of the following is an internal source of new product ideas?

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

The inability to satisfy consumer needs can be attributed to all of the following, except

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

Which of the following indicates the direction in which the organization is moving with respect to its current products and markets?

Which of the following is a reason why new products have failed once they reach the marketplace?

Various alternatives exist for creating and managing cross-functional product development teams. Two of the better-known methods are the establishment of skunkworks and

Ideally, products that generate a maximum dollar profit with a minimum amount of risk should be

Coca-Cola plans to launch a new version of Diet Coke called Diet Coke Plus. The drink will be similar to the current Diet Coke, but it will be fortified with vitamins and minerals. The Diet Coke Plus would be a part of which of the following new products based categories?

This refers to creating new products to replace existing ones.

Establishing progress goals that facilitate the "proceed" or "do not proceed" decisions regarding continuation of projects is an integral part of managing

Which of the following is not essential to the generation of new product ideas?

A current product of a company has been enhanced to better serve consumer needs. The new product would fall into which of the following categories?

Product development and diversification can be characterized as

Strategic Planning and the Marketing Management Process

Marketing Research : Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

Integrated Marketing Communications : Advertising, Sales Promotion, Public Relations, and Direct Marketing

Personal Selling, Relationship Building, and Sales Management

Distribution Strategy

Pricing Strategy

The Marketing of Services

Global Marketing

Filters

Exam 7: New Product Planning and Development

In terms of new product development, identify an advantage that some Japanese firms appear to possess.

Which of the following is an internal source of new product ideas?

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

The inability to satisfy consumer needs can be attributed to all of the following, except

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

Which of the following indicates the direction in which the organization is moving with respect to its current products and markets?

Which of the following is a reason why new products have failed once they reach the marketplace?

Various alternatives exist for creating and managing cross-functional product development teams. Two of the better-known methods are the establishment of skunkworks and

Ideally, products that generate a maximum dollar profit with a minimum amount of risk should be

Coca-Cola plans to launch a new version of Diet Coke called Diet Coke Plus. The drink will be similar to the current Diet Coke, but it will be fortified with vitamins and minerals. The Diet Coke Plus would be a part of which of the following new products based categories?

This refers to creating new products to replace existing ones.

Establishing progress goals that facilitate the "proceed" or "do not proceed" decisions regarding continuation of projects is an integral part of managing

Which of the following is not essential to the generation of new product ideas?

A current product of a company has been enhanced to better serve consumer needs. The new product would fall into which of the following categories?

Product development and diversification can be characterized as

Strategic Planning and the Marketing Management Process

Marketing Research : Process and Systems for Decision Making

Consumer Behavior

Business, Government, and Institutional Buying

Market Segmentation

Product and Brand Strategy

Integrated Marketing Communications : Advertising, Sales Promotion, Public Relations, and Direct Marketing

Personal Selling, Relationship Building, and Sales Management

Distribution Strategy

Pricing Strategy

The Marketing of Services

Global Marketing

Filters