Question 1

Among business products, supplies usually consist of

Accepted Answer

A)  buildings and fixed equipment. 
B)  items used in the manufacturing process that become part of the final product. 
C)  tools and office equipment. 
D)  items such as pens, batteries, and lightbulbs. 
E)  raw materials and component parts.

Question 2

Mr. Clean is an antibacterial cleaning liquid for home use. If Procter & Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as

Accepted Answer

A)  a discontinuous innovation. 
B)  a new product from the company's perspective because it is a product line extension. 
C)  a high-risk product mix extension because it is new to the market. 
D)  new by the Federal Trade Commission for the usual one-year period. 
E)  not a new product because it does not represent a different SKU.

Question 3

Identify and describe each stage in the new-product development process in the correct order.

Accepted Answer

The answer of Identify and describe each stage in the...

Question 4

Appliances and smartphones are classified as

Accepted Answer

A)  reusable goods. 
B)  nondisposable goods. 
C)  imperishable goods. 
D)  reliable products. 
E)  durable goods.

Question 5

At the time of its introduction, which of the following products was the best example of a continuous innovation?

Accepted Answer

A)  The first Apple iPhone 
B)  Atari, the first video game system 
C)  Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology 
D)  Dragon Naturally Speaking voice-recognition software 
E)  Naturalpoint Trakir, which replaces the computer mouse by tracking head movements

Question 6

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn't believe the claim and were frightened by the "cidal" in the brand name. The reason for this product failure was

Accepted Answer

A)  an insignificant point of difference. 
B)  too little market attractiveness. 
C)  poor execution of the marketing mix. 
D)  poor product quality. 
E)  incomplete market and product protocol.

Question 7

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are

Accepted Answer

A)  services. 
B)  goods. 
C)  products. 
D)  marketing mix. 
E)  ideas.

Question 8

In the early 1900s, your great-great-grandfather may have purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of

Accepted Answer

A)  a continuous innovation. 
B)  a dynamically continuous innovation. 
C)  a disruptive improvement. 
D)  a discontinuous innovation. 
E)  an evolutionary innovation.

Question 9

The relationship between a product line and product mix is

Accepted Answer

A)  product mixes include product lines. 
B)  product lines include product mixes. 
C)  product lines refer to consumer products; product mixes refer to business products. 
D)  product mixes refer to consumer products; product lines refer to industrial products. 
E)  there is no significant difference other than minor product variations of color, size, or form.

Question 10

Open innovation is

Accepted Answer

A)  a clear plan for new product distribution that will ensure access for all potential customers within the first year of release. 
B)  a formal and comprehensive analysis of competitors' products to discover ideas for product improvements. 
C)  an unlimited budget that can be spent for the marketing program for a new product. 
D)  designing a product around specific customers' needs, wants, and preferences. 
E)  the practices and processes that encourage the use of external and internal ideas and collaboration when conceiving, producing, and marketing new products.

Question 11

Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line. A friend suggested combining spices from India with tea. In the ________ stage of the new-product development process, the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well.

Accepted Answer

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

Question 12

All of the following are considered to be new-product development failures or stumbles by Apple except which?

Accepted Answer

A)  Apple Newton 
B)  Apple Lisa 
C)  "hockey puck" mouse 
D)  Macintosh Portable 
E)  CarPlay

Question 13

Which of these is most likely to be an unsought product?

Accepted Answer

A)  snow shovel 
B)  smartphone 
C)  gym membership 
D)  bracelet 
E)  burial insurance

Question 14

The new Samsung Family Hub Refrigerator has a 21.5-inch touchscreen, ingredient-tracking fridge-cams, and an assortment of fridge apps. This is an example of which type of innovation?

Accepted Answer

A)  inventive innovation 
B)  continuous innovation 
C)  discontinuous innovation 
D)  dynamically continuous innovation 
E)  continuous invention

Question 15

Compare continuous, dynamically continuous, and discontinuous innovations. Provide the marketing strategy and an example of each.

Accepted Answer

The answer of Compare continuous, dynamically continuous, and discontinuous innovations....

Question 16

The seven stages an organization goes through to identify business opportunities and convert them into salable products or services is referred to as the

Accepted Answer

A)  commercialization process. 
B)  SWOT process. 
C)  business prospect development cycle. 
D)  opportunity Stage-Gate®sequence. 
E)  new-product development process.

Question 17

In terms of promotion, which of the following consumer product types stresses status and brand uniqueness?

Accepted Answer

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

Question 18

In marketing, an idea is

Accepted Answer

A)  a thought that leads to a product or action. 
B)  an inspiration that evolved from market research. 
C)  an observation about a series of events. 
D)  a concept explaining the behavior of an individual or group. 
E)  an observation about an individual or group and how they use a service or product.

Question 19

A nondurable good is

Accepted Answer

A)  an item consumed in one or a few uses. 
B)  an item that usually lasts over an extended number of uses. 
C)  an item that lasts at least one year without becoming obsolete. 
D)  a product purchased only for the use of ultimate consumers. 
E)  a product used in the production of other products.

Question 20

Which of the following best illustrates the concept of derived demand?

Accepted Answer

A)  The number of retail stores in a downtown area decreases even though demand for retail goods increases. 
B)  An increase in the number of new, single-family homes results from a spike in the gross national product. 
C)  A Chinese plastics company decreases its output because of its customers' reduction in toy exports to the United States. 
D)  A heat wave results in an increased demand for air conditioners. 
E)  Honda reducing its car prices causes GM to do the same.

Exam 10: Developing New Products and Services