Question 1

The stage of the new-product process that develops a pool of concepts to serve as candidates for new products is referred to as

Accepted Answer

A) idea generation. 
B) product development. 
C) open innovation assessment. 
D) screening and evaluation. 
E) new-product strategy development. 
A) idea generation. 
B) product development. 
C) open innovation assessment. 
D) screening and evaluation. 
E) new-product strategy development.

Question 2

The type of business products known as support products includes installations, industrial services, accessory equipment, and

Accepted Answer

A) components. 
B) supplies. 
C) materials. 
D) derived products. 
E) complementary products. 
A) components. 
B) supplies. 
C) materials. 
D) derived products. 
E) complementary products.

Question 3

A product line is a group of product or service items that are closely related because they satisfy a class of needs, __________, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range.

Accepted Answer

A) are made of similar components 
B) are used together 
C) have one SKU number 
D) require high levels of R&D 
E) are made from the same formulations 
A) are made of similar components 
B) are used together 
C) have one SKU number 
D) require high levels of R&D 
E) are made from the same formulations

Question 4

An important way of defining new products is in terms of their effects on consumption. This approach classifies new products according to

Accepted Answer

A) the price. 
B) the extent of media promotion. 
C) the degree of potential product cannibalization. 
D) the presence of feature bloat. 
E) the degree of learning required by the consumer. 
A) the price. 
B) the extent of media promotion. 
C) the degree of potential product cannibalization. 
D) the presence of feature bloat. 
E) the degree of learning required by the consumer.

Question 5

Which of the following is the best example of a convenience product?

Accepted Answer

A) Kindle Fire 
B) Lexus LS 460 luxury automobile 
C) flight on United Airlines 
D) Roget's Thesaurus 
E) Hidden Valley Ranch salad dressing 
A) Kindle Fire 
B) Lexus LS 460 luxury automobile 
C) flight on United Airlines 
D) Roget's Thesaurus 
E) Hidden Valley Ranch salad dressing

Question 6

LG Electronics Inc. has entered into an agreement with Google to offer selected smartphone models that use a multitouch interface rather than buttons to make calls with Google's Android operating system. When the multitouch interface was first introduced, it was an example of which type of innovation?

Accepted Answer

A) continuous innovation 
B) discontinuous innovation 
C) disruptive innovation 
D) dynamically continuous innovation 
E) evolutionary innovation 
A) continuous innovation 
B) discontinuous innovation 
C) disruptive innovation 
D) dynamically continuous innovation 
E) evolutionary innovation

Question 7

Which of the following is considered an idea?

Accepted Answer

A) haircut 
B) bird feeder 
C) theater production 
D) marketing class 
E) security 
A) haircut 
B) bird feeder 
C) theater production 
D) marketing class 
E) security

Question 8

Characterize the difference between a product line and a product mix. Give an example of each.

Accepted Answer

A product line is a group of products or

Question 9

Advertising is most important for which of the following products?

Accepted Answer

A) bicycle 
B) toaster 
C) orange juice 
D) deck furniture 
E) watch 
A) bicycle 
B) toaster 
C) orange juice 
D) deck furniture 
E) watch

Question 10

Services refers to

Accepted Answer

A) ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. 
B) intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. 
C) philanthropic activities performed without expectations of monetary remuneration. 
D) any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. 
E) any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. 
A) ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value. 
B) intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. 
C) philanthropic activities performed without expectations of monetary remuneration. 
D) any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own. 
E) any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

Question 11

Among business products, support products that include tools and office equipment are referred to as

Accepted Answer

A) installations. 
B) supplies. 
C) raw materials. 
D) accessory equipment. 
E) components. 
A) installations. 
B) supplies. 
C) raw materials. 
D) accessory equipment. 
E) components.

Question 12

The first stage of the new-product development process is

Accepted Answer

A) idea generation. 
B) screening and evaluation. 
C) business analysis. 
D) new-product strategy development. 
E) concept testing. 
A) idea generation. 
B) screening and evaluation. 
C) business analysis. 
D) new-product strategy development. 
E) concept testing.

Question 13

Most American families buy the same __________ items over and over again, making it difficult to gain buyers for new products.

Accepted Answer

A) 25 
B) 50 
C) 100 
D) 125 
E) 150 
A) 25 
B) 50 
C) 100 
D) 125 
E) 150

Question 14

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on __________, which failed quickly.

Accepted Answer

A) aspirin 
B) frozen dinners 
C) disposable underwear 
D) soda (soft drink) 
E) perfume 
A) aspirin 
B) frozen dinners 
C) disposable underwear 
D) soda (soft drink) 
E) perfume

Question 15

You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall?

Accepted Answer

A) convenience products 
B) shopping products 
C) unsought products 
D) specialty products 
E) discretionary products 
A) convenience products 
B) shopping products 
C) unsought products 
D) specialty products 
E) discretionary products

Question 16

Burberry makes fine raincoats, clothing, and other items, many that feature the company's distinctive plaid. Originally found only in Great Britain, Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry is selling which classification of consumer product?

Accepted Answer

A) convenience product 
B) shopping product 
C) discretionary product 
D) unsought product 
E) specialty product 
A) convenience product 
B) shopping product 
C) discretionary product 
D) unsought product 
E) specialty product

Question 17

The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion. For the Vermont Teddy Bear Co., teddy bears are an example of a

Accepted Answer

A) product class. 
B) product mix. 
C) SKU. 
D) marketing category. 
E) product line. 
A) product class. 
B) product mix. 
C) SKU. 
D) marketing category. 
E) product line.

Question 18

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?

Accepted Answer

A) Conduct a survey among the 2 million people belonging to the NPD Consumer Panel. 
B) Observe similar reality programs that are on competing television networks. 
C) Contact contestants from other reality shows such as Survivor or The Amazing Race. 
D) Brainstorm ideas from the TV production company's employees. 
E) Read about the stars of reality TV programs in gossip magazines such as Us Weekly and TV programs like TMZ. 
A) Conduct a survey among the 2 million people belonging to the NPD Consumer Panel. 
B) Observe similar reality programs that are on competing television networks. 
C) Contact contestants from other reality shows such as Survivor or The Amazing Race. 
D) Brainstorm ideas from the TV production company's employees. 
E) Read about the stars of reality TV programs in gossip magazines such as Us Weekly and TV programs like TMZ.

Question 19

The emphasis of a marketing strategy for a continuous innovation concentrates on

Accepted Answer

A) obtaining narrow distribution. 
B) setting a low price. 
C) generating awareness. 
D) using reminder advertising to reeducate consumers. 
E) using personal selling. 
A) obtaining narrow distribution. 
B) setting a low price. 
C) generating awareness. 
D) using reminder advertising to reeducate consumers. 
E) using personal selling.

Question 20

__________ are items that become part of the final business product.

Accepted Answer

A) Components 
B) Accessories 
C) Support products 
D) Production goods 
E) Raw assemblies 
A) Components 
B) Accessories 
C) Support products 
D) Production goods 
E) Raw assemblies

Exam 10: Developing New Products and Services

The stage of the new-product process that develops a pool of concepts to serve as candidates for new products is referred to as

The type of business products known as support products includes installations, industrial services, accessory equipment, and

A product line is a group of product or service items that are closely related because they satisfy a class of needs, __________, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range.

An important way of defining new products is in terms of their effects on consumption. This approach classifies new products according to

Which of the following is the best example of a convenience product?

Which of the following is considered an idea?

Characterize the difference between a product line and a product mix. Give an example of each.

Advertising is most important for which of the following products?

Services refers to

Among business products, support products that include tools and office equipment are referred to as

The first stage of the new-product development process is

Most American families buy the same __________ items over and over again, making it difficult to gain buyers for new products.

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on __________, which failed quickly.

The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion. For the Vermont Teddy Bear Co., teddy bears are an example of a

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?

The emphasis of a marketing strategy for a continuous innovation concentrates on

__________ are items that become part of the final business product.

Creating Customer Relationships and Value Through Marketing

Developing Successful Organizational and Marketing Strategies

Scanning the Marketing Environment

Ethical and Social Responsibility for Sustainable Marketing

Understanding Consumer Behavior

Understanding Organizations As Customers

Understanding and Reaching Global Consumers and Markets

Marketing Research: From Customer Insights to Actions

Market Segmentation Targeting and Positioning

Managing Successful Products Services and Brands

Services Marketing

Building the Price Foundation

Arriving at the Final Price

Managing Marketing Channels and Supply Chains

Retailing and Wholesaling

Integrated Marketing Communications and Direct Marketing

Advertising Sales Promotion and Public Relations

Using Social Media and Mobile Marketing to Connect With Consumers

Personal Selling and Sales Management

Implementing Interactive and Multichannel Marketing

Pulling It All Together: the Strategic Marketing Process

Financial Aspects of Marketing

Building an Effective Marketing Plan

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