Deck 20: Introducing New Marketing Offerings

Question 1

Which of the following is most closely related with the organic growth of an organization?

A) acquiring a product or service brand
B) entering new market places
C) increasing the operational profitability
D) developing new products from within
E) increasing productivity of employees

Answer 1

D

Question 2

Less than ________ of all new products are truly innovative and new to the world.

A) 25 percent
B) 40 percent
C) 10 percent
D) 20 percent
E) 15 percent

Answer 2

C

Question 3

________ means inviting the Internet community to help create content or software, often with prize money or a moment of glory involved.

A) Crowdsourcing
B) Stage-gating
C) Cocreation
D) Microstocking
E) Buzzing

Answer 3

A

Question 4

Which of the following factors that tend to hinder new-product development is due to the fact that there may be few ways left to improve some basic products?

A) capital shortages
B) fragmented markets
C) cost of development
D) shortage of important ideas in certain areas
E) shortage of important ideas in certain areas

Question 5

Most established companies focus on ________ when it comes to innovation.

A) demand innovation
B) incremental innovation
C) everyday innovation
D) competitive innovation
E) continuous innovation

Question 6

Most new-product activity is devoted to ________ existing products.

A) marketing
B) coordinating
C) pricing
D) improving
E) distributing

Question 7

It has been observed that most new products have shorter product life cycles. What is the reason for this?

A) New products do not get adequate management support.
B) Social and governmental constraints lead to this failure.
C) Rivals quickly copy products that are successful.
D) Most new products do not use technology.
E) Most new products are not backed by a marketable idea.

Question 8

The development route for new products takes two forms. These two forms are ________ or it can ________.

A) contract out for new products/acquire new products from existing companies
B) new products in its own labs/introduce existing products as "new"
C) enhance existing products/piggyback on others' inventions
D) new products in its own labs/contract with outside firms
E) new products in its own labs/acquire new products from existing companies

Question 9

A team formed at Intercom, Inc. to generate ideas for new products, conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.

A) idea funnels
B) research centres
C) skunkworks
D) stage gate systems
E) contextual bases

Question 10

Newer companies create ________ that are cheaper and more likely to alter the competitive space. Established companies can be slow to react or invest in these technologies because they threaten their investment.

A) disruptive technologies
B) newer channels of distribution
C) newer markets
D) continuous innovation
E) new products

Question 11

New-product introductions have accelerated, and in retailing, consumer goods, electronics, autos, and other industries, the time to bring a product to market has been cut by ________ percent.

A) 10
B) 30
C) 50
D) 70
E) 90

Question 12

________ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products.

A) Stage-gate systems
B) Funnels
C) Skunkworks
D) Opportunity spaces
E) Research centres

Question 13

Which of the following firms is most likely to seek radical innovation?

A) a high-tech firm in telecommunications
B) a traditional publishing company
C) a small scale FMCG company
D) a firm that procures and markets wheat
E) a firm that sells mineral water

Question 14

Identify a shortcoming of giving the responsibility of new product development to the product managers of a company.

A) They would not be familiar with the industry standards.
B) Product managers are often busy managing existing lines.
C) Product managers would not have an operational focus.
D) They will find it difficult to gain support from employees.
E) Product managers are less likely to use participative management.

Question 15

________ process recognizes the value of returning to an earlier stage to make improvements before moving forward.

A) Reactive development
B) Spiral development
C) Market testing
D) Proactive development
E) Concept testing

Question 16

A company can add new products through acquisition or development. The acquisition route can take three forms. The company can buy other companies, it can acquire patents from other companies, or it can buy a ________ or ________ from another company.

A) license/receive permission
B) acquisition/development
C) franchise/acquire rights
D) franchise/co-brand
E) license/franchise

Question 17

New products continue to fail at a disturbing rate. In Canada, ________ of new consumer products fail within two years.

A) 85 percent
B) 45 percent
C) 90 percent
D) 75 percent
E) 80 percent

Question 18

New-to-the-world products are

A) new products that allow a company to enter an established market for the first time.
B) new products that create an entirely new market.
C) new products that supplement established product lines (package sizes, flavors, and so on).
D) new products that provide improved performance or greater perceived value and replace existing products.
E) existing products that are targeted to new markets or market segments.

Question 19

Venus Embrace can best be described as ________, rather than either a repositioning or a new-to-the-world product.

A) product adaptations
B) cost reductions
C) new product lines
D) improvements and revisions of existing products
E) additions to existing product lines

Question 20

___________ can be a good source of input, even when they innovate products without the consent or knowledge of the companies that produce them.

A) Innovators
B) Early adopters
C) Lead users
D) Laggards
E) Focus group

Question 21

Employees can be a source of ideas for improving ________, products and services. Toyota claims its employees submit 2 million ideas annually, over 85 percent of which are implemented.

A) customer relations
B) revenue
C) advertising
D) production
E) marketing

Question 22

Many companies assign responsibility for new-product ideas to

A) functional experts.
B) vice presidents.
C) special "skunk" works personnel.
D) R&D personnel.
E) product managers.

Question 23

Once a company has carefully segmented the market, chosen its target customers, identified their needs, and determined its market positioning, it is better able to develop new products. Many companies today use ________ to design new products.

A) customer-driven engineering
B) trial and error
C) corporate-competency engineering
D) reverse engineering
E) think tanks

Question 24

Ansell Healthcare, Hydro Quebec, and other companies use the ________ to manage the innovation process.

A) joint-venture system
B) stage-gate system
C) venture team
D) skunk works
E) new product "team"

Question 25

New product ideas can come from interacting with various groups and from using

A) marketing resources.
B) groups.
C) creativity-generating techniques.
D) test subjects.
E) financial resources.

Question 26

One-on-one interviews and ________ discussions can explore product needs and reactions.

A) advertising agency
B) customer relationship group
C) strategic group
D) management
E) focus group

Question 27

Two factors that contribute to a successful new product are ________ and ________.

A) marketing departments that have expertise in new products/well-defined product concept
B) a firm with "deep pockets"/average product
C) a unique superior product/well-defined product concept
D) a firm with "deep pockets"/strong marketing team
E) creative designers/complex features

Question 28

Technical companies can learn a great deal by studying customers how make the most advanced use of the company's products and who recognize the need for ________ before other customers do.

A) changes
B) marketing programs
C) management interaction
D) improvements
E) deletions

Question 29

To bring new products to market, some companies have assigned responsibility to new-product managers, new-product departments, and high-level management committees. These would all be examples of

A) product organizations within firms.
B) marketing organizations.
C) intrapreneurs.
D) new-product development organizations within firms.
E) existing-product marketing organizations.

Question 30

The number-one success factor to new product development is a unique, superior product. Such products succeed _______ percent of the time.

A) 18
B) 38
C) 58
D) 78
E) 98

Question 31

3M, Hewlett-Packard, Lego, and many other companies use the stage-gate system to manage the innovation process. The gatekeepers make one of four decisions: go, kill, hold, or recycle. Stage-gate systems make the innovation process visible to all involved and clarify the project leader's and team's ________ at each stage.

A) objectives
B) responsibilities
C) marketing objectives
D) product development
E) group objectives

Question 32

The new-product development process starts with the search for

A) overseas products.
B) products that can be improved upon.
C) new concepts.
D) ideas.
E) strategy.

Question 33

Even armed with good marketing research, new products can fail due to

A) poor packaging.
B) high development costs.
C) consumer stubbornness.
D) government regulations.
E) competitive pricing.

Question 34

One of the reasons new products can fail is

A) government regulations.
B) poor packaging.
C) consumer ignorance.
D) excessive spending on promotion.
E) ignoring or misinterpreting market research.

Question 35

Sony used to enjoy a three-year lead on new products. Today, Matsushita will copy the product within six months, leaving very little time for Sony to recoup its initial investments. This is an example of ________ that is one of the factors hindering new-product development.

A) cost of development
B) fragmented markets
C) shorter product life cycles
D) faster required development times
E) capital shortages

Question 36

Ideas for new products can come from many sources, such as customers, scientists, competitors, employees, channel members, and

A) brand management.
B) current users of the company's products.
C) consumers.
D) users of the new product.
E) top management.

Question 37

When the major car companies added "drink holders" to the design of their cars, they were practicing ________ where the firm attaches high importance to incorporating customer preferences in the final designs.

A) dual adaptation
B) customer-driven engineering
C) marketing applications
D) "listening skills"
E) implementation of customer requests

Question 38

________ is(are) a cross-functional group charged with developing a specific product or business.

A) A venture team
B) Contract manufacturing
C) Product managers
D) Spiral development
E) New product managers

Question 39

Your firm has a new product concept that seems to be a "sure winner." You have estimated that the cost of development is $1 million that the company does not have. As a result, this "sure winner" does not get out of the idea stage. This is an example of ________, which is one of the factors hindering new product development.

A) corporate culture
B) cost of development
C) faster required development times
D) shortages of new ideas
E) capital shortage

Question 40

Company ________ and intermediaries are a particular good source of ideas. These groups have firsthand exposure to customers and area often the first to learn about competitive developments.

A) competitors
B) marketing departments
C) customers
D) top management
E) sales representatives

Question 41

In estimating sales, the manager's first task is to estimate first-time purchases of the new product in each period. To estimate replacement sales, management has to research the product's that is, the number of units that fail in year one, two, three, and so on. The low end of the distribution indicates when the first replacement sales will take place.

A) product failure
B) survival-age distribution
C) obsolescence
D) distribution
E) product-performance usage

Question 42

In the past, creating physical prototypes was costly and time-consuming, but computer-aided design and manufacturing programs have changed that. Today firms can use ________ to design products on a computer, and then produce plastic models of each.

A) model making
B) perceived reality
C) rapid prototyping
D) idea generation
E) computer aided design

Question 43

Many believe that customer focus does not help to create better or new products. This belief rests on which of the following ideas?

A) Such new product developments decrease the chances of success.
B) Customers do not consider the cost of design when suggesting.
C) It increases the cost of testing a product or service.
D) Customers are at times unaware of what they really want
E) Having too much customer focus leads to a negative brand image.

Question 44

Combining two product ideas or concepts to create a new offering, for example, oil change/lubrication facilities with cafes is an example of

A) morphological analysis.
B) mind mapping.
C) forced relationships.
D) lateral marketing.
E) internal marketing.

Question 45

A ________ occurs when the company dismisses an otherwise good idea.

A) brand failure
B) product failure
C) dual error
D) GO-error
E) DROP-error

Question 46

The financial analysis for your new product shows that for the fist year you must sell 100 000 units at an average selling price of $10.00 in order to cover the costs of introduction, marketing, and development. The financial process used to arrive at these numbers is called

A) co-variant analysis.
B) financial analysis.
C) break-even analysis.
D) statistical analysis.
E) risk analysis.

Question 47

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

A) marketing research
B) marketing strategy
C) gap level
D) purchase intentions
E) conjoint analysis

Question 48

A company should motivate its employees to submit new ideas to a(n) ________ whose name and phone number are widely circulated.

A) creative manager
B) idea manager
C) advertising manager
D) senior product manager
E) top management

Question 49

Companies use financial measures to evaluate the merit of a new-product proposal. The simplest to use is called ________, in which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure.

A) risk analysis
B) break-even analysis
C) ANOVA analysis
D) conjoint analysis
E) regression analysis

Question 50

The job of translating target customer requirements into a working prototype is helped by a set of methods known as

A) quality control processes (QFP).
B) beta testing.
C) R&D.
D) quality function deployment (QFD).
E) marketing control.

Question 51

Total estimated sales are the sum of estimated first-time sales, replacement sales, and ________ for the new product.

A) consumer products
B) industrial use products
C) repeat sales
D) one-time purchases
E) infrequently purchased items

Question 52

The ________ creativity technique begins in a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally materializes a new idea by associating all the thoughts.

A) contextual analysis
B) attribute listing
C) mind mapping
D) reverse assumption analysis
E) morphological analysis

Question 53

A ________ is an elaborated version of the idea expressed in consumer terms.

A) "beta" version
B) "alpha" product
C) product concept
D) test brand
E) product idea

Question 54

________ works by listing all the normal assumptions about an entity and then turning them around.

A) Lateral marketing
B) Attribute listing
C) Forced relationships
D) Reverse assumption analysis
E) Morphological analysis

Question 55

You have been asked to participate in an idea generating session. The moderator gives you the following directions: "List the attributes of the object in front of you (a cup), now modify each attribute, by replacing each attribute with another." You are participating in what kind of creativity techniques.

A) morphological analysis
B) reverse assumption analysis
C) attribute listing
D) mind mapping
E) forced relationships

Question 56

A powdered instant breakfast drink is at the concept testing stage. Which product dimension is being measured when researchers ask target consumers whether or not they see the product solving a problem?

A) need level
B) perceived value
C) gap level
D) purchase intentions
E) communicability

Question 57

Attractive ideas must be refined into testable product concepts. A ________ is a possible product the company might offer to the market.

A) test brand
B) product idea
C) "alpha" product
D) "beta" version
E) product concept

Question 58

The methodology of quality function deployment takes the list of desired ________ generated by market research and turns them into a list of ________ that the engineers can use.

A) consumer attributes/environmental attributes
B) customer attributes/engineering attributes
C) consumer attributes/engineering specifications
D) consumer attributes/prototype guidelines
E) customer attributes/engineering mandates

Question 59

"Our product is a powdered mixture that is added to milk to make an instant breakfast that gives the person all the needed nutrition along with good taste and high convenience. The product would be offered in three flavors and would come in individual packets, six to a box, at $2.49 a box." This is an example of

A) brand concept
B) product concept
C) concept testing
D) idea generating
E) product testing

Question 60

The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source.

A) attribute listing
B) reverse assumption analysis
C) mind mapping
D) morphological analysis
E) reverse assumption analysis

Question 61

________ means presenting the product concept to target consumers, symbolically of physically, and getting their reactions.

A) Perceptual mapping
B) Brand-positioning mapping
C) Brand attribute mapping
D) Concept development
E) Concept testing

Question 62

________ is the effect one person has on another's attitude or purchase probability.

A) Market influence
B) Brand influence
C) Personal influence
D) Effective influence
E) Direct influence

Question 63

A group of college graduates decide to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet together and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here?

A) morphological analysis
B) mind mapping
C) forced relationship analysis
D) reverse assumption analysis
E) attribute listing

Question 64

"Do other products currently meet this need and satisfy you?" is a question asked to measure __________.

A) purchasing intention
B) communicability and believability
C) need level
D) perceived value
E) gap level

Question 65

The innovation diffusion process has been defined by Rogers as "the spread of a new idea from its source of invention or creation to its ultimate users or adopters." The consumer-adoption process is the ________ steps through which an individual passes from first hearing about an innovation to final adoption.

A) mental
B) evaluation
C) critical path
D) management
E) physical

Question 66

People who are technology enthusiasts, venturesome, and who enjoy tinkering with new products and mastering their intricacies are called ________.

A) laggards.
B) innovators.
C) experimenters
D) early adopters.
E) indirect users.

Question 67

PVRs are a recent invention that seem to be rapidly increasing in popularity. The fact that they offer features that enhance standard television viewing is in keeping with which of the characteristics that influence the rate of adoption?

A) compatibility
B) communicability
C) complexity
D) divisibility
E) relative advantage

Question 68

Muriel wishes to purchase Adidas running shoes because her friend Yasmine speaks so highly of the brand. Yasmine has exerted ________ influence on Muriel's purchase decision.

A) communicability
B) relative
C) personal
D) aspirational
E) biased

Question 69

In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and

A) purchase frequency.
B) preferences.
C) money back guarantee.
D) usage.
E) price.

Question 70

The degree to which the beneficial results of an innovations use are observable or describable to others is called

A) divisibility.
B) communicability.
C) compatibility.
D) complexity.
E) relative advantage.

Question 71

When commercializing a new product, market-entry timing is critical. Your firm has the distinction of being the first to market with your new product. As the "first entry" in the market, your company can enjoy

A) parallel entry.
B) late entry.
C) first mover advantages.
D) brand awareness.
E) market attractiveness.

Question 72

Your firm has chosen a few representative cities, and the sales force tries to sell the trade on carrying the product and giving it good shelf exposure. The company puts on a full advertising and promotion campaign. Total costs exceed $1 million dollars. Your firm has decided to conduct a

A) simulated test market.
B) sales-wave research.
C) commercialization test.
D) controlled test market.
E) test market.

Question 73

A(n) ________ is any good, service, or idea that is perceived by someone as new. The idea may have a long history, but it is new to the person who sees it as such.

A) innovation
B) new idea
C) enhancement
D) product
E) creative product

Question 74

Five characteristics influence the rate of adoption of an innovation. Which one means the degree to which the innovation appears superior to existing products?

A) complexity
B) communicability
C) divisibility
D) relative advantage
E) compatibility

Question 75

Your father-in-law still refuses to buy a DVD player. His rationale is that he still has a BetaMax VCR recorder in the basement that represents old technology. You inform him that videotape is an outdated technology and soon their will be no video tapes for rental or purchase. Based upon the factors influencing the adoption process, your father-in-law can be best described as a(n)

A) laggard.
B) late majority.
C) early adopters.
D) early majority.
E) innovator.

Question 76

Your personal physician prides himself on being on top of the literature regarding new medicines for his patients. In fact, your doctor prides himself on being the "first" to prescribe new medicines to help his patients. In marketing terms, your doctor can be said to belong to the

A) early adopters.
B) innovators.
C) early majority.
D) laggards.
E) late majority.

Question 77

Adopters of new products move through five stages. These stages begin with stage one ________, and follow with interest, evaluation, trial, and adoption.

A) adoption
B) awareness
C) innovation
D) commercialization
E) diffusion process

Question 78

When prototypes are ready, the must be put through rigorous functional tests and

A) customer tests.
B) internal tests.
C) lab testing.
D) consumer behaviour.
E) marketing department testing.

Question 79

Your company has sent out 100 000 packages of your new product to customers for their evaluation and opinions. In marketing terms, this process is called

A) product testing.
B) design testing.
C) "alpha testing".
D) "beta testing".
E) regional testing.

Question 80

You have been asked to try a firm's new line of potato chips at no cost to you. Now you have been approached by the firm and asked if you would pay $1.00 per bag for these chips (regular price $1.99) or would you prefer your regular brand of potato chips. You choose your favourite brand of chips instead. The firm then offers you the option of purchasing their chips for $.90 per bag. You are participating in a

A) controlled test market.
B) sales-wave research.
C) commercialization of a new product.
D) test market.
E) simulated test market.