Deck 8: Create the Product

Question 1

Even though most people in the original target market for electric toothbrushes already knew how to brush their teeth,consumers still had some learning to do in order to make good use of the new brushing technique.The electric toothbrush is an example of a .

A)nonradical innovation
B)continuous innovation
C)dynamically continuous innovation
D)competitive innovation
E)discontinuous innovation

Answer 1

C

Question 2

Experts suggest that between of all new products fail.

A)one- third and one- half
B)one- half and two- thirds
C)one- third and two- thirds
D)one- tenth and one- fifth
E)one- fifth and one- half

Answer 2

A

Question 3

A knockoff is a .

A)new product that is so radically different from anything on the market that it has difficulty moving out of the introduction stage of its product life cycle
B)new product that copies,with slight modifications,the design of an original product
C)company that uses it's advertising to show how superior it is to its competitors
D)product that is unbranded
E)company that uses a me- too strategy for its promotion

Answer 3

B

Question 4

Which of the following statements about the adopter categories is true?

A)Late majority adopters are typically very concerned about social acceptance.
B)Early majority adopters are typically middle class and like to buy well- established products.
C)More than 50 percent of the population is classified as late majority adopters.
D)Innovators are a much larger group than laggards.
E)Early adopters are risk aversive.

Question 5

A _ is typically a nondurable good or service that consumers purchase frequently with a minimum of comparison and effort.

A)homogeneous product
B)convenience product
C)shopping product
D)generic product
E)specialty product

Question 6

The last stage in the new- product development process is _.

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

Question 7

When Mae's mother died,Mae was glad her mother had the foresight to prepay her funeral expenses.Then Mae was told that new state regulations require each coffin placed in the ground had to be in a burial vault-- an additional $800 expense.For Mae,the burial vault was a(n) .

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

Question 8

Consumers must engage in a great amount of learning to use a because no similar product has ever been on the market.

A)nonradical innovation
B)discontinuous innovation
C)competitive innovation
D)continuous innovation
E)dynamically continuous innovation

Question 9

In terms of the five characteristics of innovations that affect the rate of adoption,the digital camera would most clearly have a higher degree of _ than flavored bottled water.

A)tangibility
B)complexity
C)compatibility
D)comparative advantage
E)comparability

Question 10

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively.They came up with an idea for a pair of blurry goggles.They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated.The first crude pair of blurry goggles developed by the entrepreneurs to show to prospective customers was .

A)a heuristic
B)raw material
C)a synergistic model
D)processed material
E)a prototype

Question 11

A website is full of games,activities,music,and stories that appeal to children of all ages.Before a parent commits to paying the annual membership fee to gain access to the site,s/he can register for one free month of use.By accepting the free month's usage,potential adopters move into the stage.

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

Question 12

Pepsi- Cola's development of Wild Cherry Pepsi,a cherry- flavored soda,is an example of a .

A)dynamically continuous innovation
B)competitive innovation
C)nonradical innovation
D)discontinuous innovation
E)continuous innovation

Question 13

Ore- Ida's development of Funky Fries,microwaveable,single servings of Kool- Blue,seasoned potatoes is an example of a because consumers did not have to learn anything new to prepare and serve the potatoes.

A)continuous innovation
B)dynamically continuous innovation
C)discontinuous innovation
D)nonradical innovation
E)competitive innovation

Question 14

The is the actual product such as a refrigerator plus delivery,installation,financing,and warranty.

A)value network
B)augmented product
C)generic product
D)potential product
E)actual product

Question 15

During the technical development phase of the new product development process,a physical version of the product is developed; it is called a .

A)test market
B)prototype
C)focus groups
D)product concept
E)business analysis

Question 16

Which of the following statements about innovation is true?

A)Customer perception has nothing to do with the definition of innovation.
B)A product may legally be described as new and innovative for three years.
C)Innovation is anything that the marketer decides to call new.
D)The FTC has created a legal definition of the term innovation.
E)A product may be called an innovation even though it is not significantly changed from its predecessors.

Question 17

The built- in,fold- down child seats such as those found in Chrysler minivans were an example of a because they required consumers to learn how to properly use the seat as well as the advantages of the seat.

A)continuous innovation
B)nonradical innovation
C)discontinuous innovation
D)competitive innovation
E)dynamically continuous innovation

Question 18

are manufactured goods or subassemblies of finished items that organizations need to complete their own products.

A)Component parts
B)Raw materials
C)Processed materials
D)Accessory equipment
E)MRO products

Question 19

Which of the following statements about the adoption rates of organizations is true?

A)Firms are more likely to accept a new product if they perceive the improvement to be large in relation to the investment they will have to make.
B)Firms that welcome innovations are likely to be younger companies.
C)Firms that accept innovation tend to have an entrepreneurial corporate culture.
D)Organizations are likely to adopt an innovation that helps them increase their gross margins.
E)All of the above statements are true.

Question 20

Which of the following is the best example of a nondurable good?

A)ream of paper
B)file cabinet
C)dishwasher
D)freezer
E)book shelf

Question 21

Burger King developed a new french fry to compete with McDonald's world's best french fry.The specifications included that the crunch would last for seven or more chews.The product failed because consumers did not like the fry as well as McDonald's fry.Burger King did not the idea for both technical and commercial value.

A)look at the benefits of
B)screen
C)advertise
D)style
E)promote

Question 22

Marissa arrived early for her job interview.She was very excited about the opportunity to interview for a prestigious position.As she got out of the car,she got a run in her pantyhose.She was pleased to see a convenience store down the road and went there to purchase a replacement pair of pantyhose.For Marissa,the pantyhose were an example of a(n)_ .

A)attribute- based convenience good
B)staple
C)unsought product
D)emergency product
E)impulse product

Question 23

Which of the following is an example of a product?

A)a garbage can
B)the formula for a cellulose- based plastic
C)a haircut
D)a musical performance by the Dixie Chicks
E)all of the above

Question 24

Procter & Gamble introduced its Duncan Hines ready- to- spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready- to- spread frosting,which eclipsed the Duncan Hines product introduction.General Foods was able to enter the stage of the new- product development process before Procter & Gamble could.

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

Question 25

Tony wanted to buy a pair of binoculars but not just any brand.He wanted to buy a pair of Steiner Nighthunter just like the pair he had learned about in his newest copy of Peter's Hunt magazine.He had to visit five different sporting goods stores before he found this brand.For Tony,the Steiner Nighthunter is an example of a _ _.

A)shopping product
B)commodity
C)specialty product
D)convenience product
E)homogeneous product

Question 26

The vehicle jack and other hand tools carried by a truck driver are examples of which type of business product?

A)repair products
B)operating supplies
C)organizational products
D)restoration products
E)maintenance products

Question 27

A(n)is a purchase made on the spur of the moment without any planning or search effort.

A)unsought product
B)commodity
C)impulse purchase
D)shopping product
E)emergency product

Question 28

Which of the following new products would have the greatest degree of observability?

A)the Wonder Bra,which made women who wore one appear to have increased her bust by at least one cup size
B)Tylenol PM,a nonprescription sleep aid
C)microwaveable plastic dishes
D)silk underwear for men
E)nail clippers designed to prevent ingrown toenails

Question 29

The for a guest paying for a night's stay at a hotel is a bed,bathroom,towels,dresser,light,and closet.

A)value- deliverable product
B)augmented product
C)actual product
D)core product
E)customized benefit

Question 30

A _ _ is a pronounced modification to an existing product that requires a modest amount of learning or change in behavior to use it.

A)nonradical innovation
B)competitive innovation
C)continuous innovation
D)dynamically continuous innovation
E)discontinuous innovation

Question 31

An Internet company provides other businesses operating on the Internet with various kinds of help handling distribution bottlenecks including software that manages tariffs and exchange rates for companies that ship internationally.This company is an example of a(n).

A)processed product
B)component service
C)MRO service
D)tangible product
E)specialized service

Question 32

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

A)a subscription to a magazine
B)a CD player
C)chewing gum
D)a lawn mower
E)a silk scarf

Question 33

If Bosa Nova added the new acai juice ingredient to an energy drink it is an example of a _ ; it is a modification to an existing product that differentiates one brand from another.The consumer doesn't have to learn anything to use the new product.

A)continuous innovation
B)dynamically continuous innovation
C)competitive innovation
D)nonradical innovation
E)discontinuous innovation

Question 34

occurred when Alton Johnson's fascination with the fruits of Brazil led him to develop juices with new fruit flavors by Bosa Nova for the American market.

A)Product manufacturing
B)Product development
C)Idea screening
D)Idea generation
E)Concept testing

Question 35

Customers usually know a good deal about ,are loyal to specific brands,and spend little,if any,time comparing alternatives.

A)homogeneous products
B)specialty products
C)convenience products
D)shopping products
E)commodities

Question 36

The last stage in the product adoption process is .

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

Question 37

are typically lower in social class than other adopter categories and are bound by tradition.

A)Early adopters
B)Laggards
C)Late majority
D)Early majority
E)Impulse buyers

Question 38

For the business market,a multipurpose absorbent used to clean up any type of spills would be an example of a(n).

A)operating supply
B)consumer product
C)maintenance product
D)repair product
E)restoration product

Question 39

In the business market,wheat,coal,and bauxite (used to make aluminum)are all examples of .

A)accessory equipment
B)processed materials
C)MRO products
D)component parts
E)raw materials

Question 40

Harrah's built a large casino in the St.Louis area.In terms of business- to- business product,the structure that houses Harrah's casino is a(n).

A)building staple
B)MRO product
C)installation
D)specialty product
E)accessory equipment

Question 41

Estimating is deciding whether anyone is likely to buy a new product.

A)commercial success
B)technical success
C)problem recognition
D)perceptual mapping
E)idea generation

Question 42

is when marketers use a variety of sources to come up with a potentially new product that would beneficial to customers and is compatible with the company mission.

A)Idea generation
B)Problem recognition
C)A repositioning strategy
D)Perceptual mapping
E)Product screening

Question 43

Marketers classify innovations based on their .

A)contribution margins
B)degree of tangibility
C)degree of newness
D)costs to manufacture/provide
E)prices

Question 44

Which of the following is NOT identified as one of the five characteristics of innovations that affect the rate of adoption?

A)relative advantage
B)compatibility
C)tangibility
D)observability
E)trialability

Question 45

The first step in the adoption process is .

A)need evaluation
B)interest
C)awareness
D)product evaluation
E)problem recognition

Question 46

Some potential customers,even after _ ,do not go on to the final stage of product confirmation.

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

Question 47

Which of the following is an example of an innovation?

A)a new product such as personal digital assistants
B)tongue piercings
C)a new communications technology such as WiMAX
D)fads such as Razor scooters
E)all of the above

Question 48

For a veterinarian's office,the paper used to print payment receipts,the antiseptic used to sterilize instruments,and the soap used to clean examination tables are all examples of .

A)restoration products
B)organizational products
C)operating supplies
D)repair products
E)maintenance products

Question 49

A _ _ is a good or service for which consumers will spend time and effort gathering information on price,product attributes,and product quality.

A)shopping product
B)homogeneous product
C)generic product
D)specialty product
E)convenience product

Question 50

Unlike innovators,have a great concern for social acceptance.

A)early adopters
B)laggards
C)late majority
D)impulse buyers
E)early majority

Question 51

Marketers may conduct a massive advertising campaign,called a media blitz,to make consumers aware of a new product in the stage of a customer's adoption of a new product.

A)evaluation
B)trial
C)awareness
D)adoption
E)impulse purchase

Question 52

is the extent to which a new product is consistent with existing cultural values,customs,and practices.

A)Complexity
B)Relative advantage
C)Tangibility
D)Comparability
E)Compatibility

Question 53

Organizations are likely to adopt an innovation that .

A)helps them increase gross margins
B)provides a way to reduce labor costs
C)is consistent with a firm's way of doing business
D)helps them increase profits
E)all of the above

Question 54

Innovators are NOT .

A)people who like to boast about being the first to try a new product
B)the last people to try a new product
C)younger than others in the population
D)typically described as worldly
E)typically better educated than other segments in the population

Question 55

Beth wants to buy Christmas lights to decorate her new home.At various stores,Beth found lights priced from $6.99 a strand to $25.99 a strand.Beth bought almost $200 worth of the cheapest lights so that she could have as many lights on her house as possible.For Beth,Christmas lights are a(n) .

A)commodity
B)attribute- based shopping product
C)homogeneous product
D)price- based shopping product
E)specialized shopping product

Question 56

is the degree to which a consumer perceives that a new product provides superior benefits.

A)Tangibility
B)Relative advantage
C)Complexity
D)Compatibility
E)Comparability

Question 57

Netlie provides rental of DVDs.Netlie's includes free shipping,no time limits,extensive selection,and targeted recommendation.

A)augmented product
B)function
C)actual product
D)attribute- based shopping good
E)benefit

Question 58

The for a guest paying for a night's stay at a hotel is rest and sleep.

A)core product
B)generic product
C)augmented product
D)value- deliverable product
E)customized benefit

Question 59

is the degree to which consumers find a new product or its use difficult to understand.

A)Complexity
B)Compatibility
C)Comparability
D)Tangibility
E)Relative advantage

Question 60

Marketers classify convenience products as .

A)generic products and branded products
B)staples,impulse products,and emergency products
C)core products,actual products,and augmented products
D)specialty products,shopping products,and unsought products
E)attribute- based products and price- based products

Question 61

The Federal Trade Commission says that a product must be entirely new or changed significantly to be called new and that a product may be called new for only months.

A)three
B)six
C)ten
D)twelve
E)two

Question 62

for the Bosa Nova energy drink is the moment of truth when the sales of the product spike from a slow climb to an unprecedented new level,that is ,reaches the moment of critical mass.

A)Market modification
B)Commercialization
C)Product adoption
D)Positioning
E)The tipping point

Question 63

For an amusement park,concession food trailers,the parking lot,the first- aid building,and the building where the park's daily receipts are tallied are all examples of .

A)processed materials
B)convenience products
C)equipment
D)specialty products
E)MRO products

Question 64

Which of the following statements is NOT a reason successful new- product introductions are becoming more difficult for firms?

A)costs of research and development may be huge
B)increasing manufacturers' costs
C)products are becoming outdated faster than ever
D)venture capitalists have run out of money to invest
E)the number of products competing for limited retail shelf space

Question 65

is how visible a new product and its benefits are to others who might adopt it.

A)Relative advantage
B)Compatibility
C)Tangibility
D)Comparability
E)Observability

Question 66

describes how the use of a product spreads throughout a population.

A)Product rollout
B)Market manipulation
C)Diffusion
D)Diversification
E)Positioning

Question 67

Diffusion refers to .

A)the promotion used to support products throughout their product life cycle
B)the second stage of the market segmentation process
C)the selection of opinion leaders to encourage product acceptance
D)the way the use of a product spreads throughout a population
E)the methodology used for evaluating new product ideas

Question 68

Traffic in major metropolitan areas is too often brought to a standstill after wreckage has been cleared away because investigators must painstakingly measure skid marks and determine culpability.After a police chief missed an important meeting because of a wreck investigation,he was pleased to find an article about a company that markets a new high- tech crash investigation system that shortens the time required for these investigations by 50 percent.In which stage of the adoption process is the police chief?

A)adoption,when it purchased the system,because he is buying the product
B)confirmation,because he is convinced the city made the right decision
C)evaluation,because he is looking for similar products
D)trial,because he is testing the effectiveness of the system
E)interest,because he can see how the system will benefit him and the city

Question 69

Prior to the development of the cardiac stent,surgeons used balloons to clear obstructed heart vessels,but there was no way to ensure the vessels would stay open.The stent is a tiny metal scaffold that props open the formerly obstructed blood vessel and keeps it from becoming obstructed again.Surgeons who use the stent had to engage in a great deal of learning to understand its use and how valuable a tool it was in patient care.There was nothing like the stent on the market when it first appeared.The cardiac stent was an example of a .

A)competitive innovation
B)nonradical innovation
C)dynamically continuous innovation
D)discontinuous innovation
E)continuous innovation

Question 70

Which of the following is the best example of a durable good?

A)detergent
B)package of lightbulbs
C)bottle of nail polish
D)computer printer
E)bag of cat food

Question 71

At a retail store,the display racks on which clothes are hung,the shelving,and the cash registers are all examples of .

A)specialty products
B)MRO products
C)accessory equipment
D)building staples
E)capital equipment

Question 72

means the coming together of two or more technologies to create new systems that provide greater benefit than the original technologies alone.

A)Knockoff
B)Convergence
C)Idea generation
D)Discontinuous innovation
E)Dynamically continuous innovations

Question 73

Procter & Gamble introduced its Duncan Hines ready- to- spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready- to- spread frosting,which eclipsed the Duncan Hines product introduction.This act illustrates .

A)why prototypes are so important
B)one of the problems associated with test marketing
C)how idea screening can make a product a commercial success
D)why many companies engage in test marketing
E)the variety of sources for idea generation

Question 74

MRO products are goods that businesses use for .

A)maintenance,research,and organization
B)management,research,and order- processing
C)marketing,relationship- building,and operation
D)marketing,research,and organization
E)maintenance,repair,and operation

Question 75

Which of the following statements about durable goods is true?

A)Durable goods are more likely to require low- involvement decisions than perishable goods.
B)Durable goods provide a benefit over a long period of time.
C)Consumers purchasing durable goods typically use habitual decision making.
D)The information search is quicker for durable goods than it is for nondurable goods.
E)Product evaluation is more likely to take place for nondurable goods than for durable goods.

Question 76

For many firms is a continuous process of looking for ways to make an existing product better.

A)product development
B)technical development
C)product manufacturing
D)idea screening
E)concept testing

Question 77

The business analysis for a new product begins with .

A)assessing how the new product will fit into a firm's total product mix
B)problem recognition
C)perceptual mapping
D)idea generation
E)a repositioning strategy

Question 78

Which of the following is an important reason for a firm to understand new products?

A)the high cost of developing new products
B)the high cost of bringing new products to market
C)customer demands concerning new products
D)the high cost of new products that fail
E)all of the above

Question 79

Before attending a recent trade show,a police officer had wished there was a gadget that he could subtly use to check the alcohol levels of car drivers and passengers that he pulled over for traffic infractions,but never thought he would.At the show,he discovered a flashlight made by KAS Systems that could be used to check alcohol levels without anyone knowing what he was doing.Prior to the show,the KAS system was a(n)for the police officer.

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

Question 80

are the last in the population to adopt a new product.

A)Laggards
B)Slackers
C)Late majority adopters
D)Shirkers
E)Dawdlers