Deck 11: Product: New Proposition Development and Innovation

Question 1

We start with a consideration of the principal characteristics associated with offerings and discuss how all offerings are best considered services at heart. This concept of all propositions inherently being services is known as:

A) Service.
B) service-dominant logic (SDL).
C) propositions.
D) Tangibility.

Answer 1

B

Question 2

In marketing, the term proposition:

A) is limited in meaning to goods, services, and ideas only.
B) is a broad concept that encompasses the satisfaction of consumer needs.
C) refers only to tangible items that can be seen, tasted, or touched.
D) never refers to such things as package design, brand name, or warranty.

Answer 2

B

Question 3

_____________ are raw materials that have been converted into a temporary state. For example, iron ore is converted into metal sheets that can be used by car and aircraft manufacturers, washing machines, and building contractors.

A) Semi-finished goods
B) Equipment goods
C) Maintenance, repair, and operating.
D) Raw materials.

Answer 3

A

Question 4

Which is not an example of speciality products?

A) sports equipment (Winning boxing gloves).
B) Michelin-starred restaurants (Canton 8 in Shanghai).
C) electrical appliances .
D) watches (Rolex).

Question 5

Which of the following is the rate at which a market adopts an innovation?

A) Process of diffusion.
B) Adoption lifecycle.
C) Adoption process.
D) Process of differentiation.

Question 6

Which of the following is a stage in the new product development process, undertaken when a new product is tested with a sample of customers, or is launched in a specified geographical area, to judge customers' reactions prior to a national launch?

A) Live marketing.
B) Generic marketing.
C) Focused marketing.
D) Test marketing.

Question 7

This is the process in which offerings move through a sequential, pre-determined pattern of development similar to the biological path that lifeforms follow:___________

A) Diffusion process
B) Test marketing.
C) Aoption process.
D) Product lifecycle.

Question 8

During the __________ stage of the adoption process, the innovation is tried for the first time. Sales promotions are often used as samples to allow individuals to test the product without any undue risk. Individuals accept or reject an innovation on the basis of their experience of the trial.

A) persuasion
B) knowledge
C) implementation
D) decision

Question 9

Cars are supplied with different styles, engines, seats, colours, and boot space, they are focusing on which proposition components :___________

A) augmented.
B) embodied.
C) core.
D) main.

Question 10

The development of new propositions is complex and high risk, so organizations usually adopt a procedural approach. The most common new product development process (NPDP) consists of several phases that enable progress to be monitored. Which of the following is NOT one of the phases of NPDP?

A) core proposition selection.
B) idea screening.
C) test marketing.
D) business plan and market analysis.

Question 11

Marketing strategies should be designed around the actual and augmented propositions, because it is via these that competition occurs and people understand how one disposable camera differs from another.

Question 12

Cars provide transportation and a means of self-expression. Cameras make memories by recording a scene, person, or object through the use of film or digital processes. These are all example of the embodied product.

Question 13

The core proposition consists of the core benefit or service. This may be a functional benefit in terms of what the offering enables you to do, or it may be an emotional benefit in terms of how the product or service makes you feel.

Question 14

There is some evidence (from Germany) that electronic goods manufacturers are deliberately shortening product life cycles, adding built-in obsolescence (Ala-Kurikka, 2015).

Question 15

Capital equipment goods refer to offerings that people do not normally anticipate buying nor want to buy.

Question 16

Staple products are available almost everywhere. They include groceries such as bread, milk, soft drinks, and breakfast cereals.

Question 17

The process through which individuals accept and use new products is referred to as the process of adoption.

Question 18

Impulse products are bought when a very special need arises; buyers are more intent on buying a solution than buying the right quality or image-related product.

Question 19

Early majority constitutes 2.5% of the buying population, is important because they have to kick-start the adoption process.

Question 20

The rate of diffusion is a function of the speed at which sales occur, the pattern of diffusion as expressed in the shape of the curve, and the size of the market.

Question 21

In the _________, individuals develop an attitude toward the proposition and reach a decision about whether the innovation will meet their needs. If this is positive they will experiment with the innovation.

A) persuasion stage
B) decision stage
C) implementation stage
D) knowledge stage

Question 22

This is the pathway a product assumes over its lifetime. There are said to be five main stages: development, introduction, growth, maturity and decline.

A) Product lifetime.
B) Product lifecycle.
C) Product life stage.
D) Product lifestyle.

Question 23

MySQL, the world's leading open-source database software producer uses this approach. By making the source code of the software freely available to everybody, the software is available to everyone to use and/or modify. This is a good example of:

A) incremental service innovation.
B) product extension.
C) radical service innovation.
D) incremental service innovation.

Question 24

These are groups of brands that are closely related in terms of their functions and the benefits they provide:

A) Product lifecycle.
B) Product lines.
C) Product class.
D) Product branding.

Question 25

Convenience products are non-durable and are bought because the consumer does not want to put very much effort, if any, into the buying decision. Which behaviour closely corresponds to convenience products?

A) routinized response
B) limited problem solving
C) high involvement
D) extensive problem solving

Question 26

Möller, Rajala, and Westerlund (2008) distinguish between three service innovation strategies as:

A) established services within competitive markets;
B) incremental service innovation targeting value-added propositions.
C) radical service innovation, which aims to produce completely novel offerings.
D) All above options

Question 27

At stage 4 of service innovation, the highest end of innovation maturity, firms integrate the services dimension as part of their total offer. Known as servitization, this involves the provision of a bundle of goods-service solutions over the life cycle of their customers, 'from cradle to grave'.