Question 1

Which of the following is an example of a product in a fashion industry?

Accepted Answer

A) Coke 
B) The Kellogg's Special K cereal 
C) Beatrice milk 
D) Sea of Thieves video game 
E) Haagen-Dazs ice cream 
A) Coke 
B) The Kellogg's Special K cereal 
C) Beatrice milk 
D) Sea of Thieves video game 
E) Haagen-Dazs ice cream

Question 2

The form of market testing conducted by firms before a newly developed product or service is brought to the market to determine how many customers will try it and then continue to use it is known as:

Accepted Answer

A) premarket testing. 
B) alpha testing. 
C) beta testing. 
D) concept testing. 
E) hypothesis testing. 
A) premarket testing. 
B) alpha testing. 
C) beta testing. 
D) concept testing. 
E) hypothesis testing.

Question 3

The category of buyers that tends to enjoy novelty and is regarded as opinion leaders for particular product categories and spreads the word are called:

Accepted Answer

A) early adopters. 
B) early majority. 
C) late majority. 
D) innovators. 
E) laggards. 
A) early adopters. 
B) early majority. 
C) late majority. 
D) innovators. 
E) laggards.

Question 4

Annie is a designer at a popular clothing brand.She observes people on the streets who modify the clothing according to their needs and styles.Annie uses this input while designing new collections.What is the method of idea generation used by Annie in developing new products?

Accepted Answer

A) Interviewing 
B) Licensing 
C) Internal research 
D) Brainstorming 
E) Customer input 
A) Interviewing 
B) Licensing 
C) Internal research 
D) Brainstorming 
E) Customer input

Question 5

List three reasons firms innovate.Support your answer by providing one example for each.

Accepted Answer

Student answers will vary.
Firms innovat

Question 6

Mirka Beauty Products, a beauty company, was testing the quality of its newly developed cream by offering it only in the city of Brightland prior to its national launch. Unfortunately, two of its competitors released similar products before Mirka Beauty could release its product in the market. Realizing that a lapse had occurred, Mirka Beauty released its product in the market emphasizing an additional moisturizing feature which would address customers' needs during the winter season that was just around the corner. Mirka Beauty had prior information about these customer needs because of a series of tests it had conducted before releasing the product which helped it launch the product with the additional feature.
-Mirka Beauty Products marketed its product by educating consumers about the benefits of the additional feature it provided in its product.The marketing mix variable that benefited from the results of the tests is:

Accepted Answer

A) quantity. 
B) promotion. 
C) place. 
D) price. 
E) size. 
A) quantity. 
B) promotion. 
C) place. 
D) price. 
E) size.

Question 7

TransInfo Inc., an information technology firm, is trying to develop new software that will facilitate the transfer of documents in a secure and fast manner.The team of engineers at TransInfo has a detailed discussion and come up with several ideas, out of which they accept only the best possible option.This type of idea generation is called:

Accepted Answer

A) licensing 
B) customer research 
C) brainstorming 
D) market research 
E) internal research 
A) licensing 
B) customer research 
C) brainstorming 
D) market research 
E) internal research

Question 8

Ming, the owner of a fast-food restaurant, continues to accept only cash for transactions, although credit and debit cards are common practice in neighbouring business establishments.Ming has not adopted the technology because of her fears concerning the security of these transactions.Hence, she belongs to the group of buyers called:

Accepted Answer

A) early adopters. 
B) early majority. 
C) laggards. 
D) fad users. 
E) mature customers. 
A) early adopters. 
B) early majority. 
C) laggards. 
D) fad users. 
E) mature customers.

Question 9

A product such as a refrigerator is likely to remain in the maturity period of its product life cycle until a superior product comes along to replace it.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would a firm that wants to be the pioneer in creating new products most likely use to generate ideas for products?

Accepted Answer

A) Licensing 
B) Customer input 
C) Reverse engineering 
D) Internal research and development 
E) Market research and development 
A) Licensing 
B) Customer input 
C) Reverse engineering 
D) Internal research and development 
E) Market research and development

Question 11

Innovators are crucial to the success of any new product or service because:

Accepted Answer

A) they prefer products from established market leaders. 
B) they are easily influenced by advertising. 
C) they help the product or service gain market acceptance. 
D) they are considered opinion leaders and influence other majority groups. 
E) they form a major group of consumers in the market of a new product or service. 
A) they prefer products from established market leaders. 
B) they are easily influenced by advertising. 
C) they help the product or service gain market acceptance. 
D) they are considered opinion leaders and influence other majority groups. 
E) they form a major group of consumers in the market of a new product or service.

Question 12

The method of determining the potential success of a new product by introducing the product to a limited geographical area prior to a national launch is called:

Accepted Answer

A) alpha testing. 
B) beta testing. 
C) concept testing. 
D) test marketing. 
E) premarketing. 
A) alpha testing. 
B) beta testing. 
C) concept testing. 
D) test marketing. 
E) premarketing.

Question 13

Which of the following is NOT true about new products?

Accepted Answer

A) Companies can successfully offer a new product that customers never knew they needed. 
B) Without new products, value of a company will decline. 
C) Companies should always avoid saturated markets for their new products. 
D) Loyal customers do appreciate and expect changes in a product. 
E) The longer a product exists in the marketplace, the more likely it is that the market will become saturated. 
A) Companies can successfully offer a new product that customers never knew they needed. 
B) Without new products, value of a company will decline. 
C) Companies should always avoid saturated markets for their new products. 
D) Loyal customers do appreciate and expect changes in a product. 
E) The longer a product exists in the marketplace, the more likely it is that the market will become saturated.

Question 14

Explain the concept testing stage in the development of a new product.

Accepted Answer

Ideas with potential are developed furth

Question 15

The process that entails the balancing of various engineering, manufacturing, marketing, and economic considerations to develop a product most accurately defines the term:

Accepted Answer

A) concept testing. 
B) idea generation. 
C) product launching. 
D) alpha testing. 
E) product design. 
A) concept testing. 
B) idea generation. 
C) product launching. 
D) alpha testing. 
E) product design.

Question 16

According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:

Accepted Answer

A) they act as opinion leaders and spread the word to the next groups entering a market. 
B) they are regarded as highly knowledgeable and are not price sensitive. 
C) they affect the profitability of new products and services. 
D) they avoid change and rely on traditional products until they are no longer available. 
E) they enter a new product market when the product has achieved its full market potential. 
A) they act as opinion leaders and spread the word to the next groups entering a market. 
B) they are regarded as highly knowledgeable and are not price sensitive. 
C) they affect the profitability of new products and services. 
D) they avoid change and rely on traditional products until they are no longer available. 
E) they enter a new product market when the product has achieved its full market potential.

Question 17

The later phases of the maturity stage of a product is characterized by:

Accepted Answer

A) increased sales. 
B) market saturation. 
C) an increase in profits. 
D) less market segmentation. 
E) increasing numbers of early adopters. 
A) increased sales. 
B) market saturation. 
C) an increase in profits. 
D) less market segmentation. 
E) increasing numbers of early adopters.

Question 18

Explain how the use of the adoption cycle benefit firms? Provide one example.

Accepted Answer

By using the adoption cycle, firms can p

Question 19

Which of the following terms can be best defined as buyers who want to be the first to have a new product or service?

Accepted Answer

A) Lead users 
B) Laggards 
C) Early adopters 
D) First movers 
E) Innovators 
A) Lead users 
B) Laggards 
C) Early adopters 
D) First movers 
E) Innovators

Question 20

Fiery Inc.is a manufacturer of hockey accessories that are lightweight as well as aerodynamic.As a first mover, Fiery was able to fulfill the high demand for these accessories in Arahonia where hockey is a popular sport.The high diffusion of Fiery products in Arahonia was successful because of their:

Accepted Answer

A) complexity. 
B) trialability. 
C) compatibility. 
D) visibility. 
E) observability. 
A) complexity. 
B) trialability. 
C) compatibility. 
D) visibility. 
E) observability.

Which of the following is an example of a product in a fashion industry?

The form of market testing conducted by firms before a newly developed product or service is brought to the market to determine how many customers will try it and then continue to use it is known as:

The category of buyers that tends to enjoy novelty and is regarded as opinion leaders for particular product categories and spreads the word are called:

Annie is a designer at a popular clothing brand.She observes people on the streets who modify the clothing according to their needs and styles.Annie uses this input while designing new collections.What is the method of idea generation used by Annie in developing new products?

List three reasons firms innovate.Support your answer by providing one example for each.

A product such as a refrigerator is likely to remain in the maturity period of its product life cycle until a superior product comes along to replace it.

Which of the following would a firm that wants to be the pioneer in creating new products most likely use to generate ideas for products?

Innovators are crucial to the success of any new product or service because:

The method of determining the potential success of a new product by introducing the product to a limited geographical area prior to a national launch is called:

Which of the following is NOT true about new products?

Explain the concept testing stage in the development of a new product.

The process that entails the balancing of various engineering, manufacturing, marketing, and economic considerations to develop a product most accurately defines the term:

According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:

The later phases of the maturity stage of a product is characterized by:

Explain how the use of the adoption cycle benefit firms? Provide one example.

Which of the following terms can be best defined as buyers who want to be the first to have a new product or service?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Consumer Behaviour

Business-To-Business Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Services: The Intangible Product

Pricing Concepts and Strategies: Establishing Value

Distribution Channels

Retailing and Omni-Channel Marketing

Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Global Marketing

Ethics and Socially Responsible Marketing

Filters

Exam 8: Developing New Products

Which of the following is an example of a product in a fashion industry?

The form of market testing conducted by firms before a newly developed product or service is brought to the market to determine how many customers will try it and then continue to use it is known as:

The category of buyers that tends to enjoy novelty and is regarded as opinion leaders for particular product categories and spreads the word are called:

Annie is a designer at a popular clothing brand.She observes people on the streets who modify the clothing according to their needs and styles.Annie uses this input while designing new collections.What is the method of idea generation used by Annie in developing new products?

List three reasons firms innovate.Support your answer by providing one example for each.

A product such as a refrigerator is likely to remain in the maturity period of its product life cycle until a superior product comes along to replace it.

Which of the following would a firm that wants to be the pioneer in creating new products most likely use to generate ideas for products?

Innovators are crucial to the success of any new product or service because:

The method of determining the potential success of a new product by introducing the product to a limited geographical area prior to a national launch is called:

Which of the following is NOT true about new products?

Explain the concept testing stage in the development of a new product.

The process that entails the balancing of various engineering, manufacturing, marketing, and economic considerations to develop a product most accurately defines the term:

According to the diffusion of innovation theory, buyers belonging to the early majority group are considered crucial because:

The later phases of the maturity stage of a product is characterized by:

Explain how the use of the adoption cycle benefit firms? Provide one example.

Which of the following terms can be best defined as buyers who want to be the first to have a new product or service?

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Consumer Behaviour

Business-To-Business Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Services: The Intangible Product

Pricing Concepts and Strategies: Establishing Value

Distribution Channels

Retailing and Omni-Channel Marketing

Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Global Marketing

Ethics and Socially Responsible Marketing

Filters