Deck 9: Developing and Managing Products

Question 1

Companies that are most likely to succeed in the development and introduction of new products typically do which of the following?

A) use an industry-specific approach that is driven by corporate objectives and strategies with a we-defined new-product strategy at its core
B) capitalize on youth and creativity to achieve and maintain competitive advantage
C) make the short-term commitment needed to support innovation and new-product development
D) establish an environment conducive to achieving new-product objectives

Answer 1

D

Question 2

What does a new-product strategy do?

A) specify the roles new products play in the organization's annual meeting
B) link the new-product development process with the objectives of the finance department,the business unit,and the corporation
C) describe the characteristics of products the organization wants to offer and the markets it wants to serve
D) act as part of an organization's overall financial strategy

Answer 2

C

Question 3

What occurs when an existing product is targeted toward new market segments?

A) brainstorming
B) screening
C) reciprocity
D) repositioning

Answer 3

D

Question 4

A hospital created a focus group to identify new products that it believed would enhance the boomers' aging process.This focus group most likely contained which of the following?

A) members of other hospitals
B) health care providers
C) a sampling of all stakeholders from the sponsoring hospital
D) people who would be categorized as baby boomers

Question 5

New-to-the-world products,where the product category itself is new,are also called which of the following?

A) moderate innovations
B) creative offerings
C) venture products
D) discontinuous innovations

Question 6

Marketers consider all of the following examples of new products EXCEPT which one?

A) the addition of an investment service to a company that once specialized in insurance
B) a new flavour of Jell-O gelatin
C) a new low-fat formulation for Campbell's soup
D) a 2008 model-year GE dishwasher with the same style,parts,and colour as the 2007 model

Question 7

When Forrest Event Marketing,Inc.started searching for new product ideas,a marketing consultant suggested a variety of sources of information.Which is the LEAST likely source of new product ideas?

A) its employees
B) its competitors
C) its customers
D) its financial lenders

Question 8

Scientists at University of Toronto are working to develop new technologies for customer interface interactions in retail stores.Right now they are not concerned with the potential cost-effectiveness of the technologies or the marketability of the technologies.What are these scientists involved in?

A) basic research
B) applied research
C) brainstorming
D) product generation

Question 9

Which of the following is a type of scientific investigation aimed at discovering new technologies?

A) product development
B) concept testing
C) applied research
D) basic research

Question 10

Which of the following sources is a source for new product ideas?

A) employees
B) government agencies
C) former customers
D) foreign distributors

Question 11

Until the mid-1990s,MGP Ingredients,Inc.sold ethanol and animal feed.A steep drop in its sales led the company to focus on developing the first low-carb proteins and starches.What would these low-carb proteins and starches be an example of?

A) an addition to an existing product line
B) a revision to existing products
C) a repositioning strategy
D) a new product line

Question 12

Stouffer's added 25 percent more meat to its Lean Cuisine Skillet Sensations meal-in-a-bag.The addition of more meat made the product acceptable to men as well as women and expanded its target market.What is the meatier Lean Cuisine Skillet Sensations an example of?

A) a repositioned product
B) a discontinuous innovation
C) a new product line
D) an addition to a current product line

Question 13

What takes new technologies and attempts to find useful applications for them?

A) brainstorming
B) applied research
C) product development
D) basic research

Question 14

A manufacturer of athletic equipment is finding it difficult to compete with cheaper imported merchandise.Which of the following is a potential source of new product ideas?

A) the company's former employees
B) customers who have requested its catalogues
C) current retailers that owe the company money
D) its foreign suppliers

Question 15

What is the first stage of the new-product development process?

A) establishing the new-product strategy
B) exploring opportunities
C) developing a business analysis
D) building of a prototype

Question 16

When Sherwin Williams began selling Martha Stewart-designed paints,what could the approach be classified as?

A) a repositioning strategy
B) a revision to existing products
C) a new product line
D) an addition to an existing product line

Question 17

When Banquet made its chicken patties 20 percent larger to provide greater value to the consumer,it was not trying to reach a new target market.What has Banquet created?

A) an addition to an existing product line
B) a discontinuous innovation
C) an improved product
D) a repositioned product

Question 18

What links the new-product development process with the objectives of the marketing department,business unit,and corporation?

A) a concept test
B) a new-product strategy
C) a product strategy bridge
D) a product-review committee

Question 19

The maker of Peter Pan peanut butter has developed a honey-flavoured peanut butter spread to add to its peanut product line.Is this a new product?

A) Yes,this is a discontinuous innovation.
B) No,peanut butter cannot be considered an innovation.
C) Yes,additions to the product line are new products.
D) No,this is not a product improvement.

Question 20

When the manufacturer of Pine-Sol cleaning liquid introduced an orange-scented cleaner,which of the following occurred?

A) The product was easily sold to many foreign countries using the same,popular Pine-Sol brand name.
B) The product was a new product because it was an improvement or revision of an existing product.
C) The product was not accepted well in the market until a personal selling campaign was launched.
D) The product was not considered new,because the product was not discontinuous.

Question 21

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created,the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers.The consumer group was asked to evaluate the three product ideas in terms of their marketability.What is this stage of new-product development?

A) market testing
B) prototype screening
C) idea manipulation
D) concept tests

Question 22

After the research team at DairyMade had generated more than two dozen new product ideas for a substitute for coconut that tastes the same but has zero fat,the company formed a committee to analyze whether the product ideas were consistent with the organization's new-product strategy.What is this called?

A) diffusion
B) idea screening
C) idea generation
D) test marketing

Question 23

What is a process where a group thinks of as many ways as possible to vary a product or solve a problem without considering the practicality of the ideas?

A) new-product brain dumping
B) diffusion
C) brainstorming
D) screening

Question 24

Christian Kniski has developed a new technology that uses miniature computerization to analyze DNA specimens.His next step after developing the product should be to work to find an application for this new technology through which of the following?

A) applied research
B) product development
C) concept testing
D) basic research

Question 25

In which stage of new-product development are preliminary demand,cost,sales,and profitability estimates made?

A) business analysis
B) prototype screening
C) concept testing
D) idea generation

Question 26

Top managers at a company that publishes regional magazines considered making maps,but then decided maps were not within the company's corporate mission.Which stage of the new-product development process did its new-product development process reach?

A) business analysis
B) idea screening
C) idea generation
D) customer testing

Question 27

In which stage of new-product development is the technical feasibility of manufacturing the new product examined as a prototype is produced?

A) concept testing
B) screening
C) market testing
D) development

Question 28

Which of the following evaluate new product ideas usually before any prototype has been created?

A) simulated market tests
B) user tests
C) concept tests
D) market tests

Question 29

One manufacturer produces Hanes,Playtex,and Bali clothing for women.This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new product ideas,such as jewellery,shoes,and belts.Which research technique was the manufacturer using?

A) a venture team
B) a focus group
C) a product-review committee
D) a brainstorming session

Question 30

What is one way to determine whether a company has a balanced portfolio of products and,if not,what new product ideas are needed to offset the imbalance?

A) research ombudsmen
B) internal product development venture teams
C) outside consultants
D) marketing development departments

Question 31

Scientists at University of Toronto have received a patent for their newly discovered technologies for more effective customer interface interactions in retail stores.The university decided to sell the patent to an independent company whose scientists immediately began exploration into practical uses of this new technology.What are the scientists at the independent company involved in?

A) product development
B) applied research
C) brainstorming
D) basic research

Question 32

Zippysnacks has come up with a new potential product,chocolate-covered jalapeno peppers,and is now asking potential customers,"Would you buy this snack?" Zippysnacks is asking this question of potential customers in which of the following?

A) prototype screening
B) concept testing
C) market testing
D) the product development stage

Question 33

What is the first filter in the new-product development process that serves to eliminate new product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason?

A) business analysis
B) applied diffusion
C) idea screening
D) test marketing

Question 34

Until the mid-1990s,MGP Ingredients sold ethanol and animal feed.A steep drop in its sales led the company to focus on developing the first low-carb proteins and starches.The company was able to use existing manufacturing equipment to develop these food additives in response to the growing popularity of the Atkins Diet and similar food regimens.The realization that MGP could use the popularity of the Atkins Diet as a catalyst for success would have occurred in which stage of the new-product development process?

A) developing a business analysis
B) establishing the new-product strategy
C) exploring opportunities
D) screening and concept testing

Question 35

A company that manufactures mantels,stairways,doors,windows,and other architectural reproductions brought together a group of 10 recent customers and asked them to discuss what they liked and disliked about the current designs marketed by the company.Which of the following research techniques did the manufacturer use?

A) a venture team
B) a buying centre
C) brainstorming
D) a focus group

Question 36

What goes one step further than applied research by converting new technology applications into marketable products?

A) marketing development
B) product development
C) basic research
D) product modification

Question 37

The development stage of the new-product development process works best when which of the following is practised?

A) simultaneous product development
B) competitive product equity
C) the new-product paradigm
D) test marketing

Question 38

At what stage of the new-product development process are most new product ideas rejected?

A) test marketing
B) idea generation
C) idea screening
D) diffusion

Question 39

What is the screening and concept testing stage of the new-product development process used to do?

A) refine the promotion campaign to be used with the new product
B) eliminate undesirable ideas and predict consumer acceptance
C) determine the potential profits to be gained from the new product
D) generate new product ideas

Question 40

Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates.The week after the compound was invented,a group of the firm's employees got together and listed ways the product might be used.What is this an example of?

A) focusing grouping
B) brainstorming
C) venture group activities
D) screening

Question 41

Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets?

A) market concentration
B) on-line test marketing
C) product sampling
D) simulated product adoption

Question 42

When a consumer makes a trial purchase of a new product,what does he or she become in the new-product adoption-stage process?

A) a diffusion user
B) an adopter
C) an inventor
D) a laggard

Question 43

When selecting a test market city,what should a researcher look for?

A) a city where there is no competition
B) a city where the demographics and purchasing habits mirror the overall market for the product
C) a city that is as large as possible
D) a city that has media spillover from other cities to increase media alternatives

Question 44

Parris Laboratories has ordered production materials and equipment needed to make its new slow-release chlorine emulsion for swimming pools in its Rossville plant.Which stage of new-product development is Parris Laboratories entering?

A) diffusion analysis
B) commercialization
C) product prototyping
D) business analysis

Question 45

One of the following typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product.These people are then taken to a mock or real store where their purchases are recorded.Which of the following is being described?

A) simulated (laboratory)market test
B) adoption-rate test
C) concept test
D) consumer juried test

Question 46

Landingham Laboratories has decided to introduce its new over-the-counter antibiotic for ear infections in a limited market consisting of only two cities,and to closely monitor the reactions of potential customers to the product and its marketing program.What is this called?

A) dual distribution
B) laboratory testing
C) test marketing
D) use test

Question 47

The maker of Lysol disinfectant tested consumers' reactions to the company's Lysol Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads,make out a grocery list,and then "shop" in a mock store filled with real products,including the new cleaning product.What is this an example of?

A) a simulated (laboratory)market test
B) a use test
C) an adoption-rate test
D) a concept test

Question 48

During which stage of the new-product development process does production start,inventories are built up,the product is shipped to distribution points,the sales force is trained,and advertising and promotion begin?

A) product testing
B) product prototyping
C) commercialization
D) simulated marketing

Question 49

Firms that routinely experience success in new-product introduction tend to have which of the following?

A) figurehead leadership
B) an obsession with quantity rather than quality
C) a vision of what the market will be like in the future
D) a history of a sales orientation

Question 50

What is a product that is perceived as new by a potential adopter,whether the product is "new to the world" or simply new to the individual?

A) an innovation
B) a diffusion
C) a simulated new product
D) a laggard

Question 51

The maker of Skittles candy kitchen tested and prepared hundreds of batches of candy for taste-testers,who were employees of the company.The taste-testers were instructed to identify the best formula for mint-flavoured Skittles.This was an example of what type of test?

A) laboratory
B) concept
C) diffusion
D) market

Question 52

What is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation?

A) test marketing
B) laboratory testing
C) use testing
D) concept testing

Question 53

In the long run,products fail because of a poor match between which of the following?

A) prices and consumer demand
B) product characteristics and consumer needs
C) advertising and personal selling
D) the marketing mix and physical distribution

Question 54

A global organization that "thinks local,act local" does which of the following?

A) adopts a policy of international standardization
B) does not engage in product line extension in countries where existing products are well received
C) gives country managers more autonomy in new-product development
D) adheres to a sales orientation

Question 55

According to the text,which of the following statements about simultaneous product development is true?

A) All departments within the company work together at the same time,but to maintain a high level of secrecy,no one outside the company is involved in simultaneous product development.
B) Simultaneous product development actually increases the length of time it takes to get a product to market and the time the product will stay in the growth stage of its product life cycle.
C) With simultaneous product development,all relevant functional areas and outside suppliers participate in all stages of the new-product development process.
D) Simultaneous product development refers to the practice of developing multiple new products at the same time.

Question 56

What is the main goal of the global product development process?

A) to expand the number of different new product offerings so that individual country needs are more likely to be met
B) to develop every product for potential worldwide distribution and adaptation to other countries
C) to come up with a single standard product or product line suitable for all global markets
D) to repeat the steps in the process with marketing teams in each and every foreign country targeted

Question 57

What is the name for a consumer who was sufficiently satisfied with his or her trial experience with a product to proceed with some further usage?

A) an opt-in buyer
B) an innovator
C) an adopter
D) a diffuser

Question 58

When does absolute failure occur?

A) when the company prices the product to indicate that it is of the highest quality
B) when there is too much synergy between the marketing and production departments
C) when products deliver a meaningful and perceivable benefit
D) when a company cannot regain its development,marketing,and production costs for a new product

Question 59

What is the final stage in the new-product development process?

A) product testing
B) simulated marketing
C) commercialization
D) market testing

Question 60

Sara Lee,the maker of Ball Park sausages,has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program.What is Sara Lee using?

A) profitability analysis
B) test marketing
C) market development analysis
D) discontinuous innovation

Question 61

A company finds out that members of its target market are likely to collect more information and evaluate more brands than early adopters.These people are cautious and thoughtful and do not try the product without asking someone else.The customers' dominant characteristic is deliberateness.In terms of the diffusion process,these customers are most likely in which group?

A) laggards
B) early minority
C) late majority
D) early majority

Question 62

Which of the following statements about how adopters participate in the diffusion process is FALSE?

A) Innovators are the first to purchase a new product.
B) There are three categories of consumers who will adopt computer products.
C) The dominant characteristic of members of the late majority is skepticism.
D) Laggards are the last consumers to adopt a new product.

Question 63

Old Oscar's favourite expression is,"Old ways is best ways." Oscar was recently told by a couple of his friends that he was becoming out of fashion with regard to his video viewing habits.Reluctantly,he just purchased a DVD player and has considered converting his massive VHS cassette collection to DVD.In terms of adopter categories,where would Oscar fall?

A) early majority
B) late majority
C) early adopters
D) laggards

Question 64

Which of the following are eager to try new ideas and products,typically have higher incomes,are better educated,and are more cosmopolitan than other categories of adopters?

A) early majority
B) late majority
C) early adopters
D) innovators

Question 65

The process by which the executives at a large company learned about a company called 25^th Hour that provides personal assistants who will run errands for $17 per hour is an example of which of the following?

A) a product dissemination
B) a diffusion
C) marketing communications
D) an innovative dispersal

Question 66

Who adopt a product because most of their friends have already done so,and their adoption is usually the result of pressure to conform because they rely on group norms?

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

Question 67

In terms of categories of adopters,those who take on the role of opinion leaders in their community are typically found within which group?

A) early majority
B) early adopters
C) innovators
D) late majority

Question 68

Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and it looked like the users were having fun.This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic?

A) relative advantage
B) complexity
C) observability
D) compatibility

Question 69

Which of the following products has the lowest level of trialability?

A) green-tinted light bulbs
B) low-carb yogurt
C) a new reality-based television show
D) orthodontic braces

Question 70

Many product failures such as cucumber antiperspirant spray,Toaster Eggs,and Health-Sea sea-sausages did not succeed because they did not conform to which product characteristic?

A) trialability
B) compatibility
C) observability
D) complexity

Question 71

What is the spread of a new idea from its source of invention or creation to its ultimate users or adopters?

A) diffusion
B) transmission
C) dispersion
D) circulation

Question 72

Which of the following is a characteristic that would slow the rate of adoption of new products?

A) product complexity
B) high compatibility with existing products
C) relative advantage over substitute products
D) an opportunity to try out the product

Question 73

Because Laurence did not know companies sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident,he paid almost $4,000 to have his dog's broken hip replaced.Once he discovered that such a product existed,what did he perceive the insurance to be?

A) a diffusion
B) an innovation
C) a product diversification
D) a market laggard

Question 74

Those who embrace products relatively early in the product life cycle,are likely to be community oriented,and often are opinion leaders themselves are referred to as which of the following?

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

Question 75

For years many people perceived it as difficult to tape programs on video cassette recorders (VCRs).They could not master the multiple programming steps.As a result,makers of VCRs streamlined the system.To tape a show,all the user needed was a program number available in TV Guide.Makers of VCRs realized that which product characteristic was slowing sales?

A) complexity
B) trialability
C) compatibility
D) relative advantage

Question 76

Among the late majority group,what does adoption of a product primarily result from?

A) broadcast advertising
B) advertising in nontraditional media
C) word-of-mouth advertising
D) sales promotions

Question 77

In the adopter categories,the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are tradition-bound.They tend to have the lowest socioeconomic status,are suspicious of new products,and are alienated from a rapidly advancing society.Who are they?

A) laggards
B) decliners
C) late majority
D) late diffusers

Question 78

Reginald was happily jogging up the street in his florescent green jogging shorts while listening to his favourite cassette,"The Best of Anne Murray," in his Sony Walkman.Seeing a bus go by with a sign that claimed "iPhone is THE way," Reginald snorted,"That'll be the day." Reginald belongs to which adopter group?

A) early adopters
B) laggards
C) late majority
D) early majority

Question 79

A personal care item such as a new flavour of dental floss may have a slow rate of adoption because it is not a highly visible item in homes.Also,this item is not often discussed among friends and coworkers.This is an example of how which characteristic can work to slow the adoption process?

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

Question 80

Franco likes to be "cutting edge" with respect to new trends but carefully researches the Web for anticipated benefits of consumption from peers and checks out competitive offerings before committing to purchase.Franco is in which of the following groups?

A) innovators
B) early majority
C) late majority
D) early adopters