Question 1

How do companies organize new product development?

Accepted Answer

Companies handle the organizational aspect of new-product development in several ways. Many assign responsibility to product managers. Some employ new-product managers who report to category managers. A few companies have growth leaders, a full-time job for its most creative and successful managers. Some companies have a high-level management committee charged with reviewing and approving proposals. Large companies often establish a new-product department headed by a manager with substantial authority and access to top management whose responsibilities include generating and screening new ideas, working with the R&D department, and carrying out field testing and commercialization.

Question 2

Morboro Energy, Inc. is a large chain of fuel stations. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________.

Accepted Answer

A)  lateral marketing 
B)  brand extension 
C)  market development 
D)  internal marketing 
E)  brand personification 
A)  lateral marketing 
B)  brand extension 
C)  market development 
D)  internal marketing 
E)  brand personification A

Question 3

Why should companies study competitors?

Accepted Answer

Companies can also find good ideas by researching competitors' products and services.
They can find out what customers like and dislike about competitors' products. They can buy their competitors' products, take them apart, and build better ones. Company sales representatives and intermediaries are a particularly good source of ideas. These groups have firsthand exposure to customers and are often the first to learn about competitive developments.

Question 4

Concept testing means validating the product concept by discussing within the design group.

Accepted Answer

A) True 
 B)False

Question 5

Identify the major reasons why new product failures occur.

Accepted Answer

The following are some of the possible r

Question 6

Compatibility refers to the degree to which the innovation matches the values and experiences of the individuals.

Accepted Answer

A) True 
 B)False

Question 7

What is the significance of performing business analysis?

Accepted Answer

Business analysis is performed

Question 8

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?

Accepted Answer

A)  idea generation 
B)  idea screening 
C)  business analysis 
D)  concept development and testing 
E)  product development and testing 
A)  idea generation 
B)  idea screening 
C)  business analysis 
D)  concept development and testing 
E)  product development and testing

Question 9

Consumer preferences for alternative product concepts can be measured with conjoint analysis.

Accepted Answer

A) True 
 B)False

Question 10

Use reverse assumption analysis to analyze a school.

Accepted Answer

Reverse assumption analysis involves ide

Question 11

Haribou Tea Company, Inc. operates teahouses primarily in India. The company wants to launch a new brand of specialty tea and it has created a few hypothetical combinations. The company wants to select two of the combinations after obtaining a ranking by customers based on their preference. What concept testing method is suited here?

Accepted Answer

The company can use conjoint a

Question 12

Tosho Electronics, a leading Japanese, electronic manufacturer believes shorter product life cycles of new products reduces the scope for R&D and innovation. Offer a possible reason for shorter lifecycles.

Accepted Answer

The answer of Tosho Electronics, a leading Japanese, electronic manufacturer...

Question 13

Morphological analysis starts by forming a new dimension and then thinks about the possible problems of the dimension.

Accepted Answer

A) True 
 B)False

Question 14

________ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.

Accepted Answer

A)  Sales wave analysis 
B)  Simulative data testing 
C)  Adaptive conjoint analysis 
D)  Business analysis 
E)  Exponential data collection 
A)  Sales wave analysis 
B)  Simulative data testing 
C)  Adaptive conjoint analysis 
D)  Business analysis 
E)  Exponential data collection

Question 15

Surgeons and ER nurses would be considered ________ for surgical equipment.

Accepted Answer

A)  venture agents 
B)  internal customers 
C)  buzz agents 
D)  lead users 
E)  connectors 
A)  venture agents 
B)  internal customers 
C)  buzz agents 
D)  lead users 
E)  connectors

Question 16

Employees can be a source of ideas for improving production, products, and services.

Accepted Answer

A) True 
 B)False

Question 17

Identify the element in the DIG network that considers how a new product can fit into customers lives and how it can be distinguished from the competitors' products.

Accepted Answer

A)  business analysis 
B)  internal design analysis 
C)  strategic blueprint 
D)  demand landscape 
E)  opportunity space 
A)  business analysis 
B)  internal design analysis 
C)  strategic blueprint 
D)  demand landscape 
E)  opportunity space

Question 18

Armordo is a famous vacuum cleaner brand in Korea. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

Accepted Answer

A)  awareness 
B)  adoption 
C)  evaluation 
D)  trial 
E)  interest 
A)  awareness 
B)  adoption 
C)  evaluation 
D)  trial 
E)  interest

Question 19

Andersen, the CEO of a home appliance manufacturer, believes in controlled idea generation techniques such as brainstorming when creating new designs and ideas for product revisions. He does not engage in observational methods. What part of DIG framework is eminently used here?

Accepted Answer

The opportunity space is used

Question 20

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Accepted Answer

A)  first entry 
B)  blunt entry 
C)  parallel entry 
D)  late entry 
E)  exchange entry 
A)  first entry 
B)  blunt entry 
C)  parallel entry 
D)  late entry 
E)  exchange entry

Exam 20: Introducing New Market Offerings

How do companies organize new product development?

Morboro Energy, Inc. is a large chain of fuel stations. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________.

Why should companies study competitors?

Concept testing means validating the product concept by discussing within the design group.

Identify the major reasons why new product failures occur.

Compatibility refers to the degree to which the innovation matches the values and experiences of the individuals.

What is the significance of performing business analysis?

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?

Consumer preferences for alternative product concepts can be measured with conjoint analysis.

Use reverse assumption analysis to analyze a school.

Tosho Electronics, a leading Japanese, electronic manufacturer believes shorter product life cycles of new products reduces the scope for R&D and innovation. Offer a possible reason for shorter lifecycles.

Morphological analysis starts by forming a new dimension and then thinks about the possible problems of the dimension.

________ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.

Surgeons and ER nurses would be considered ________ for surgical equipment.

Employees can be a source of ideas for improving production, products, and services.

Identify the element in the DIG network that considers how a new product can fit into customers lives and how it can be distinguished from the competitors' products.

Armordo is a famous vacuum cleaner brand in Korea. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

Andersen, the CEO of a home appliance manufacturer, believes in controlled idea generation techniques such as brainstorming when creating new designs and ideas for product revisions. He does not engage in observational methods. What part of DIG framework is eminently used here?

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events, and Public Relations

Managing Personal Communications: Direct Marketing and Personal Selling

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

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