Deck 6: Product Development

Question 1

During the test-marketing stage, the firm tests not only the product itself but also the marketing strategy related to it.

Answer 1

True

Question 2

Less-expensive forms of test marketing include simulated test markets and online test marketing.

Answer 2

True

Question 3

Every stage of the NPD process must be followed for the process to work correctly.

Answer 3

True

Question 4

The group of adopters that make up the smallest percentage of product adopters is the laggard group.

Question 5

An experience is a product with characteristics that are difficult to observe in advance, but that are realized after consumption.

Question 6

Sustainability gives marketers a way to figure out who will likely buy their product over a period of time, plan an appropriate marketing mix, and forecast potential sales.

Question 7

Firms that want to maintain or improve their competitive position in the marketplace generally must develop new products.

Question 8

A company that uses social media, especially online communities, to generate product ideas is using design thinking.

Question 9

Among other things, the first stage in the new-product strategy development process helps to determine if the idea can be turned into a product that will prove to be profitable.

Question 10

The recently introduced Blueberry Cheerios is a product-line extension for General Mills' Cheerios brand.

Question 11

The launch stage of the new-product development process is usually the least expensive stage for new products, since most of the work has already been done.

Question 12

The most common ethical issue in new-product development involves the Federal Trade Commission's definition of the term improved.

Question 13

Revamped products make up the smallest percentage of new products but carry the most risk for the company introducing them.

Question 14

Test marketing occurs when a new product is introduced in its final form to a geographically limited market to see how well the product sells and to get reactions from potential users.

Question 15

A company can advertise a product as new and improved for only one year after it hits store shelves.

Question 16

While the idea generation stage of the new-product development process generates a great number of potential ideas, in reality, very few of these ideas ever become marketed products.

Question 17

It is during the idea generation stage of the new-product development process that the company often ends up rejecting most new goods and services for one reason or another.

Question 18

Services are intangible products that cannot be touched, weighed, or measured.

Question 19

The idea behind "design thinking" is to create products that fill gaps in a company's already existing product line.

Question 20

The highest level of risk for new-product development occurs when products fail to generate sales or prove to be dangerous and defective.

Question 21

A product that has new packaging, different features and updated designs and functions is a

A)remanufactured product.
B)new-category entry.
C)new-to-the-market product.
D)revamped product.
E)product-line extension.

Question 22

Which product category makes up the smallest percentage of new products but carries the most potential (and risk)for the company introducing them?

A)new-category entries
B)repositioned products
C)new-to-the-market products
D)product-line extensions
E)revamped products

Question 23

A technology that displaces an established technology and shakes up the industry, or a groundbreaking product that creates a completely new industry is referred to as

A)planned obsolescence.
B)inventive technology.
C)product revamping.
D)disruptive technology.
E)creative technology.

Question 24

A risk associated with product-line extensions is that the new product may take away from sales of existing products in the product line. This is referred to as

A)cannibalization.
B)revamping.
C)diffusion.
D)disruptive technology.
E)outsourcing.

Question 25

Campbell's offers consumers many choices of canned soups. This group of related products marketed by Campbell's is its

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

Question 26

The stage of the product life cycle in which marketing costs rise due to competition as each firm tries to find ways to gain market share is the maturity stage.

Question 27

A firm is thinking about adding a product to its product line. What is the most likely outcome if the firm goes through with this plan?

A)It will be difficult to manufacture the product.
B)The company will have to work hard to build up the brand.
C)The new product is certain to be accepted by the market.
D)The new product can be advertised alongside existing products.
E)It will take a long time for customers to feel loyal to the product.

Question 28

New products can be categorized as new-to-the market products, new-category entries, product-line extensions, or

A)brand redevelopments.
B)prototypes.
C)revamped products.
D)technological innovations.
E)repositioned products.

Question 29

A product labeled "new and improved" would fall within the category of a

A)new-to-the-market product.
B)remanufactured product.
C)product-line extension.
D)revamped product.
E)new-category entry.

Question 30

Hewlett-Packard doesn't currently offer an e-reader in its product line. However, if the company decided to enter the market by producing an e-reader of its own, it would be classified as what type of product?

A)new-to-the-market
B)revamped product
C)new category entry
D)product-line extension
E)product-line improvement

Question 31

The specific combination of goods, services, or ideas that a firm offers to its target market is referred to as

A)inventory.
B)supply.
C)a product.
D)a load.
E)stock

Question 32

Luxury motors introduced a new car to its already popular sedan line. The new car sold very well in its first year, so the company was surprised to find that its overall sales volume remained about the same as did its market share. What is the likely reason for this?

A)The company didn't differentiate the new car from its existing product line.
B)The company failed to assess customer interest in luxury cars.
C)The company's new car was disruptive technology to its existing product line.
D)The company needed to revamp a model rather than create a new model.
E)The company experienced cannibalization from the new car from its existing product line.

Question 33

During the decline stage, the firm will likely put forth a lot of effort to change a good's appearance or functionality in order to generate interest for the product.

Question 34

Chevrolet produces the Cruze, Impala, and the Malibu. As a group, these cars represent a

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

Question 35

In marketing terms, the care you receive when you visit your family dentist is an example of

A)a concept.
B)an idea.
C)a service.
D)a good.
E)an action.

Question 36

According to your text, three factors are responsible for the rapid rise in new product development. They are faster and more economical transportation, the advent of electronic communication, and

A)lessening of government restrictions.
B)the requirement of patents and trademarks.
C)mass marketing.
D)free trade.
E)mass production.

Question 37

New-category entries are described as

A)inventions that have never been seen before and create a new market.
B)products that are new to a company but not new to the marketplace.
C)products that have new packaging, different features, and updated designs and functions
D)products that extend and supplement a company's established product line.
E)products that are reintroduced into the marketplace after having been off the market for a lengthy time.

Question 38

When Shriners Hospitals advertises "Love to the rescue" it is marketing

A)a concept.
B)a service.
C)an idea.
D)an action.
E)a good.

Question 39

Inventions that have never been seen before and create a new market are considered

A)repositioned products.
B)revamped products.
C)new-to-the-market products.
D)new-category entries.
E)product-line extensions.

Question 40

The combination of all the products a company sells is referred to as its product line.

A)any good or service that is mass produced and sold in more than one market.
B)the specific combination of goods, services, or ideas that a firm offers to its target market.
C)a tangible good that is received in exchange for money, time, or effort.
D)marketed items of value that fulfill a need of an individual consumer or business.
E)any intangible offering a firm makes to an individual consumer or a business.

Question 41

The procedure in which marketing professionals ask consumers for their reactions to verbal descriptions and rough visual models of a potential product is called

A)concept marketing.
B)idea screening.
C)test marketing.
D)prototype evaluation.
E)concept testing.

Question 42

Which group would be considered an internal source of idea generation?

A)a company's suppliers
B)a company's competitors
C)a company's employees
D)independent inventors
E)a company's customers

Question 43

In what stage of the new-product development process would organizations use social media to evaluate potential new products?

A)business analysis
B)product launch
C)idea generation
D)idea screening
E)test marketing

Question 44

Business analysis refers to the stage of the new-product development process

A)where a concept test is performed to determine if the product will sell.
B)where a new product is analyzed to determine its profitability.
C)where a SWOT analysis and environmental scanning are used to determine if a new product will help strengthen the firm's marketing plan.
D)where it is decided if a product can be developed and marketed within the time and budget constraints of the company.
E)where the direction a company will take in developing a new product is determined.

Question 45

In what stage of the new-product development process would a company use a SWOT analysis and environmental scanning to determine where new products may be able to help strengthen the firm's marketing position?

A)idea screening
B)business analysis
C)test marketing
D)idea generation
E)new-product strategy development

Question 46

The stage of the new-product development (NPD)process in which a set of product concepts is generated from which to identify potentially viable new products is called idea

A)screening.
B)marketing.
C)analysis.
D)development.
E)generation.

Question 47

If a product idea is deemed to have the potential of being profitable in the business analysis stage, then it moves on to the ________ stage.

A)test marketing
B)product development
C)product launch
D)concept testing
E)idea screening

Question 48

Firms that generate new-product ideas by gathering both external and internal ideas are using

A)disruptive technology.
B)cloudsourcing.
C)open innovation.
D)diffusion.
E)pivoting.

Question 49

In terms of risk to the manufacturer, revamped products

A)are much riskier than new-to-the market products or new-category entries.
B)carry about the same risk as new-to-the market products or new-category entries.
C)carry much less risk than new-to-the market products or new-category entries.
D)carry more risk than new-to-the market products, but less risk than new-category entries.
E)carry more risk than new-category entries, but less risk than new-to-the market entries.

Question 50

How long can a company advertise a product as "new and improved" after it hits store shelves?

A)three months
B)six months
C)one year
D)two years
E)indefinitely

Question 51

Idea generation is the stage in the new-product development process in which

A)it is determined if the idea fits into the company's marketing strategy and should be developed.
B)prototypes are developed to test new product ideas.
C)the company determines the direction it will take in developing new products.
D)a collection of product concepts is generated for determining potentially viable new products.
E)ideas are test-marketed with consumers to determine if they should be developed further.

Question 52

The first step to idea generation using the design thinking process is to

A)assess similar products already in the marketplace.
B)define the problem in a human-centric way.
C)brainstorm as many ideas as possible.
D)assess gaps in the company's current product line.
E)gain an empathic understanding of the customer's needs.

Question 53

Estimating the cost of a product, identifying the price at which a product will be sold, and estimating the demand for a product all take place in which stage of the new-product development process?

A)product development
B)product launch
C)business analysis
D)test marketing
E)new-product strategy development

Question 54

A concept test is part of which stage of the new-product development process?

A)product launch
B)test marketing
C)product development
D)idea screening
E)idea generation

Question 55

The new-product strategy development stage accomplishes all of the following except

A)it outlines the costs that will be incurred for the development of new products.
B)it provides general guidelines for the new-product development process.
C)it specifies how new products will fit into the company's marketing plan.
D)it specifies the target markets to be served by new products.
E)it outlines general characteristics of the types of products the firm will develop.

Question 56

In which stage of the new-product development process do most ideas for new products and services end up getting rejected for one reason or another?

A)idea screening
B)idea generation
C)business analysis
D)product development
E)test marketing

Question 57

A mock-up of a good with the materials the firm expects to use in the final product is called a

A)template.
B)blueprint.
C)sample.
D)prototype.
E)model.

Question 58

A company that uses cloudsourcing to generate product ideas would ask for input from which source?

A)the company's research and development department
B)current employees
C)managers and supervisors of the company
D)online communities

Question 59

What is the name of the process that encourages organizations to focus on the people they're creating products for?

A)revamping
B)design thinking
C)cloudsourcing
D)cannibalization
E)trialability

Question 60

Which is not a key question that should be asked in the idea screening stage?

A)Will the product meet the minimum return-on-investment requirements?
B)Can the product be launched in a timely manner?
C)Is the proposed product within the company's ability to produce?
D)Can the product be developed within the time and budget constraints of the company?
E)Will the product sell?

Question 61

Which stage of the new-product development process is usually the most expensive for new products?

A)idea screening
B)business analysis
C)product launch
D)product development
E)test marketing

Question 62

The process by which new products are likely to be adopted, the rate at which they will be adopted, and the process through which the products will spread into markets is referred to as

A)diffusion.
B)time to market.
C)distribution.
D)planned obsolescence.
E)circulation.

Question 63

A company that is introducing a new product in its final form to a geographically limited market to see how well the product sells and to get reactions from potential users is engaged in

A)concept testing.
B)test marketing.
C)idea screening.
D)product screening.
E)concept marketing.

Question 64

When categorizing risk in new-product development, the highest level of risk occurs when

A)inadequate supply of materials delays production.
B)competitors copy products and sell them at a lower price.
C)the product fails to generate sales.
D)supplier cost savings are not achieved.
E)the product takes sales away from existing products.

Question 65

A product that uses less energy to operate or can be recycled when the consumer is finished using it, it said to have

A)a green design.
B)a sustainable design.
C)an organic design.
D)an ethical design.
E)an environmental design.

Question 66

The practice in which companies frequently come out with new models of a product that make existing models obsolete is an ethical issue related to new-product development and is termed

A)diffusion.
B)bait-and-switch.
C)time to market.
D)planned obsolescence.
E)diversion.

Question 67

During which stage of the new-product development process would a firm test the marketing strategy related to the new product?

A)product launch
B)idea screening
C)business analysis
D)test marketing
E)product development

Question 68

Nestor is considered to be tech savvy by his friends. He is unafraid to take risks when it comes to trying new products and is always the first in his group to get the latest gizmo. What type of product adopter is Nestor?

A)late majority
B)innovator
C)early majority
D)early adopter
E)laggard

Question 69

Which sequence accurately represents the steps in the consumer adoption process?

A)interest, evaluation, comparison, trial, and adoption
B)awareness, research, comparison, evaluation, and adoption
C)interest, comparison, evaluation, trial, and adoption
D)awareness, evaluation, trial, adoption, and feedback
E)awareness, interest, evaluation, trial, and adoption

Question 70

The term time to market refers to

A)the time it takes to develop a product.
B)how long a company spends test-marketing a product.
C)the time it takes the marketing department to develop an advertising campaign.
D)the time a new product spends on the market before becoming accepted by the public.
E)the speed with which a company launches a product.

Question 71

In what stage of the new-product development process would a company make a prototype of the product?

A)product launch
B)product development
C)idea screening
D)test marketing
E)idea generation

Question 72

When Hasbro comes up with an idea for a new toy, it needs to ensure that the children who play with the toy will not choke on any of its parts and that the toy in general will not be a hazard to the children who will be using it. In what stage of the new-product development process will these safety checks occur?

A)idea generation
B)product development
C)idea screening
D)product launch
E)test marketing

Question 73

The most common ethical issue in new-product development involves the Federal Trade Commission's definition of the term

A)healthier.
B)guaranteed.
C)better.
D)new.
E)improved.

Question 74

What type of adopter is typically well respected by their peers and sought by marketers because they tend to be opinion leaders who are willing to talk to other people about their experiences with their purchases?

A)early adopter
B)innovator
C)late majority
D)early majority
E)laggard

Question 75

Which statement reflects a way that companies can reduce the risk of new-product failure?

A)realize that failure is not an option
B)understand current market trends to anticipate demand
C)know that it is impossible to anticipate changes in the market
D)skip steps in the development process to market a product sooner
E)focus on the needs of the firm more than the needs of the customer

Question 76

Jacqueline is in the market for a new laptop. She has spent quite a bit of time gathering information and thinking about the purchase. She has asked her friends for opinions about the models they own and is happy that there are a lot of models to choose from. Jacqueline is most likely what type of adopter?

A)early majority
B)early adopter
C)innovator
D)laggard
E)late majority

Question 77

A good or a service will likely fail to be profitable if which adopter does not purchase the product?

A)early majority
B)late majority
C)early adopter
D)innovators
E)laggards

Question 78

Laughlin wants to join a new health club. His roommate belongs to a club that Laughlin heard about on the radio. He decides to use his roommate's free guest passes to try out the club to see if it meets his needs. What stage of the consumer adoption process does this represent?

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

Question 79

If a firm builds a mock shopping experience for participants to observe their response to marketing stimuli, this is referred to as a

A)prototype.
B)trial test market.
C)concept test market.
D)focus group.
E)simulated test market.

Question 80

Read the following list of tasks and select the one that does not take place during the product launch stage.

A)manufacture enough of the good to fill distribution pipelines
B)hire and train employees
C)purchase the materials to make and package the good
D)prepare internal systems for taking service orders
E)make sure the product can be manufactured at a cost low enough to generate profits