Exam 13: Conceiving, Developing, and Managing Products

Test marketing is useful in determining both final and intermediate consumer product purchase behavior.

The Following Questions are linked to this scenario: A car wax company developed a new car wax that is particularly resistant to acid rain. The pollutants in acid rain can cause significant damage to a car's finish. -Further research by the car wax manufacturer indicated that the proposed product would yield a 10 percent return on the firm's investment. The car wax manufacturer required a minimum of a 15 percent return to further consider the product. The proposed new product was analyzed on the basis of which new-product planning technique?

In which stage of the new-product planning process is the consumer presented with a description or picture of a proposed product and then asked to evaluate his/her purchase intentions or to express his or her attitudes?

A firm estimates that first-year sales of a new product will be $10 million, and that sales will rise 7 percent per year for the next three years. It also estimates that the firm's cost of goods sold will be 40 percent of revenues. The company is involved in the product screening stage of new-product planning.

A significant long-term advantage to a company is an important product with strong patent protection.

The diffusion process spans all stages of a product life cycle.

a. Develop a 15-item new-product screening checklist. Divide the checklist into general characteristics, market characteristics, and production characteristics. b. Evaluate a disposable lead mechanical pencil to be marketed by a traditional pencil manufacturer. The mechanical pencil holds three leads, is made of colorful plastic, and has a built-in eraser. In contrast to the traditional wooden pencil that sells for between three and five cents retail, the mechanical pencil sells for approximately ten cents. Unlike the traditional wooden pencil, the mechanical pencil has retractable lead, fits into one's pocket or purse, and does not require sharpening.

Which stage of the product life cycle most closely corresponds to the commercialization stage of the new-product planning process?

An important part of product screening is the evaluation of a new product's return on investment.

Test marketing enables a firm to study

Dissatisfaction with test marketing may be based on

A firm may be able to manage the product life cycle by extending maturity or reversing a decline.

The major difference between a relative and an absolute product failure is based upon whether

A new product is expected to have an average repurchase rate of four months. A test market is scheduled for two months. A problem with this test market situation may be that

Which of these is an example of the use of the diffusion process concept for a notebook computer manufacturer?

Which of these is NOT a major reason behind the importance of new products?

The idea generation stage of the new-product planning process most closely refers to

The proposed length of a test market should have no relationship to the average purchase rate for a product.

Which product life-cycle stage corresponds with the use of price-sensitive, low-income groups as a target market?

The diffusion process describes the