Exam 11: Developing and Managing Products

Why is the term new product confusing?

An electronics store is currently seeing how Edmontonians react to a retail concept called Studio D, which is targeted to women. Edmonton is the only city in which Studio D stores were introduced. The store will monitor the reactions of customers to the store. What is the store using to determine consumer reaction to a new retailing concept?

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers' dominant characteristic is deliberateness. In terms of the diffusion process, who are these customers most likely to be?

Which of the following statements best describes the product life cycle (PLC)?

Which of the following goes one step further than applied research by converting new technology applications into marketable products?

While developing new products is far from an exact science, most firms follow a formal new-product development process.

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants. Canesta is the pioneering firm in the field and is troubled by economic concerns. Production and promotional costs are high, and profits are negative. Such poor business performance is typical of firms in the introductory stage of the product life cycle.

Describe how a multinational corporation can most efficiently and effectively meet the needs of the global market.

Procter & Gamble is introducing a new controlled-release fabric softener sheet and plans to send consumers free samples in Saturday newspapers. This strategy will increase the trialability of the new product.

What is required for the development stage of the new-product development process to work best?

What is a new product?

Scenario 11-4 When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95. -Refer to the scenario. Some people might consider the use of Richardson's techniques to be unethical. This value judgment could adversely affect its adoption. What does the value judgment result from?

Sara Lee, the maker of Ball Park hot dogs, has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program. What is Sara Lee going to use?

Before the introduction of a timekeeping spreadsheet for salespeople, a sample of salespeople were able to try a prototype. What is this stage of new-product development called?

After successful business analysis of a new product, the development stage begins. Describe the development process. Be sure to explain the difference between laboratory testing and use testing.

The development stage of the new-product process is devoted only to the development of the first prototype of the product.

When choosing a test market, managers need to consider many criteria for a good test market city. List six criteria.

During which stage of the product life cycle do healthy profits usually begin to appear?

A European dairy, which is famous for its rich ice creams, has introduced basil-, tomato-, and oregano-flavoured ice creams. In the process of developing these new flavours, the dairy surveyed world-famous chefs to determine which non-traditional flavours had the greatest level of marketability. This survey would have happened during which stage of the product development process?

Scenario 11-4 When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon.com for $5.95. -Refer to the scenario. Because the benefits of reading the book and employing its techniques are obvious to anyone who has ever attended a carnival, The Secrets of Amusement Park Games-Revealed can be said to exhibit which product characteristic?