Question 1

Detailed financial projections and determination if a new product could be protected with patents or copyright are a part of which stage of the new-product development process?

Accepted Answer

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

Question 2

A product can be classified as new if it ________ from existing products.

Accepted Answer

A)  is functionally different 
B)  is different in color, taste, or fragrance 
C)  is different in its packaging 
D)  is different in price 
E)  requires a different distribution channel

Question 3

The tendency for some product developers to add additional features or functionality to a product that are not of any benefit to most consumers and unnecessarily add to the cost of the product is referred to as

Accepted Answer

A)  function exaggeration. 
B)  product line extension. 
C)  feature bloat. 
D)  sensory overload. 
E)  product differentiation.

Question 4

The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give on Valentine's Day. The unique identification number that the Vermont Teddy Bear Co. uses to distinguish this teddy bear from the others in order to track it in the warehouse is called

Accepted Answer

A)  an inventory ID code. 
B)  a QR code. 
C)  a NAICS stock code. 
D)  an order quantity code. 
E)  a stock keeping unit.

Question 5

In terms of brand loyalty, consumers prefer specific brands but will accept substitutes for which type of consumer product?

Accepted Answer

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

Question 6

Open innovation may enhance the ________ stage of the new-product development process.

Accepted Answer

A)  internal collaboration 
B)  screening and evaluation 
C)  product development 
D)  new-product strategy development 
E)  idea generation

Question 7

Developing a pool of concepts to serve as candidates for new products is the ________ stage of the new-product development process.

Accepted Answer

A)  open innovation 
B)  screening and evaluation 
C)  product development 
D)  new-product strategy development 
E)  idea generation

Question 8

At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart, creating pieces that could accidentally choke a child. This type of consumer or safety test occurs during the ________ stage of the new-product development process.

Accepted Answer

A)  new-product strategy development 
B)  development 
C)  business analysis 
D)  screening and evaluation 
E)  market testing

Question 9

If a firm contracts with IRI, a leading test market company, to track sales of a new product made to a panel of consumers and to assess the effectiveness of advertising and other promotion tactics, what type of test market is this?

Accepted Answer

A)  laboratory test market 
B)  concept test market 
C)  simulated test market 
D)  controlled test market 
E)  standard test market

Question 10

You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall?

Accepted Answer

A)  convenience products 
B)  shopping products 
C)  unsought products 
D)  specialty products 
E)  discretionary products

Question 11

In terms of promotion, which of the following consumer product types stresses product differentiation from competitors but not status?

Accepted Answer

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

Question 12

To save time and money, companies often turn to ________, a technique that somewhat replicates a full-scale test market.

Accepted Answer

A)  partial rollouts 
B)  screening and evaluation 
C)  virtual reality testing 
D)  time-to-market measures 
E)  simulated test markets

Question 13

IDEO is a company that

Accepted Answer

A)  creates innovative promotional programs for its clients' new products. 
B)  developed the formal Stage-Gate®process to commercialize new products for its clients. 
C)  uses "design thinking" to develop new products for other organizations. 
D)  rates new products like Consumer Reports. 
E)  runs patent searches for companies that don't have an internal legal department.

Question 14

During which stage of the new-product development process are audiences allowed to preview actual movies like Aquaman or Spider-Man: Into the Spider-Verse (a sneak preview) so that changes might be made before they are released to the general public?

Accepted Answer

A)  market testing 
B)  business analysis 
C)  commercialization 
D)  screening and evaluation 
E)  concept testing

Question 15

How can a firm use a test market in its new-product development process?

Accepted Answer

The answer of How can a firm use a test...

Question 16

A good, as opposed to a service or an idea, has tangible attributes that a consumer's ________ can perceive.

Accepted Answer

A)  cognitive intelligence 
B)  vision 
C)  knowledge of past experiences 
D)  five senses 
E)  emotional intelligence

Question 17

Explain the differences in promotion between convenience, shopping, specialty, and unsought products.

Accepted Answer

The answer of Explain the differences in promotion between convenience,...

Question 18

Which of these is considered a service?

Accepted Answer

A)  hotel stay 
B)  trash bags 
C)  silverware 
D)  washing machine 
E)  freedom

Question 19

With respect to price and availability, shopping products are likely to be

Accepted Answer

A)  relatively inexpensive and widely available. 
B)  relatively inexpensive but very limited availability. 
C)  very expensive and available at a large number of selective outlets. 
D)  very expensive with very limited availability. 
E)  fairly expensive and available at a large number of selective outlets.

Question 20

The promotion for which product type would stress price, availability, and awareness?

Accepted Answer

A)  shopping 
B)  convenience 
C)  specialty 
D)  unsought 
E)  supply

Exam 10: Developing New Products and Services