Question 1

The stage of the new-product development process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as

Accepted Answer

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

Question 2

Among business products, copiers would be best considered which type of support product?

Accepted Answer

A)  installations 
B)  accessory equipment 
C)  supplies 
D)  industrial services 
E)  raw materials

Question 3

Which of the following statements regarding goods is most accurate?

Accepted Answer

A)  In order to be classified as a good, an item must appeal to all five senses. 
B)  Music is not considered a good because it only involves a single sense-hearing. 
C)  Some goods, though defined by their tangible attributes, also have intangible ones. 
D)  To market a good that contains visual attributes, you cannot use an auditory medium. 
E)  The aroma of chocolate chip cookies is considered an idea because it affects one's senses.

Question 4

A product is a good, service, or idea consisting of ________ that satisfy consumers' needs and is received in exchange for money or something else of value.

Accepted Answer

A)  a promise or commitment exchanged between a seller and a buyer 
B)  a bundle of tangible and intangible attributes 
C)  an assortment of value-possessing activities 
D)  an array of physical attributes 
E)  a collection of tangible qualities

Question 5

Supplies are support products that include items such as

Accepted Answer

A)  stationery, paper clips, and brooms. 
B)  tools and office equipment. 
C)  buildings and fixed equipment. 
D)  raw materials and component parts. 
E)  maintenance, repair, and legal services.

Question 6

Business products are also referred to as

Accepted Answer

A)  B2B products. 
B)  B2C products. 
C)  B4B products. 
D)  BOB products. 
E)  B4C products.

Question 7

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain purchased which kind of business products?

Accepted Answer

A)  accessory equipment 
B)  industrial services 
C)  supply materials 
D)  component parts 
E)  installations

Question 8

Commercialization is the stage in the new-product development process

Accepted Answer

A)  at which the product is positioned and launched in full-scale production and sales. 
B)  during which the firm performs its final evaluations of the new product. 
C)  when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard. 
D)  when advertising campaigns are evaluated using Starch scores to identify brand awareness. 
E)  at which the product generates the greatest sales and profits.

Question 9

Before a new product or service is developed, a firm should have a precise protocol, a statement that includes which of these?

Accepted Answer

A)  a clear plan for product distribution 
B)  an analysis of potential competitors' products 
C)  a precise budget of how much can be spent for the marketing program 
D)  a well-defined target market 
E)  clear financial goals and expectations

Question 10

Parvaderm Vitality Index
-A firm's Vitality Index is calculated by dividing the ________ by the company's total sales revenue.

Accepted Answer

A)  total profit 
B)  revenue of its top three best-selling products 
C)  profits from its newest products, during the year they become profitable 
D)  revenues of new products, often those released during the past three years 
E)  percentage of market share

Question 11

With respect to price and availability, which type of consumer product would usually be very expensive and available in just a few locations?

Accepted Answer

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

Question 12

Because early-stage financing is almost always a problem for those starting a new business, ________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources.

Accepted Answer

A)  crowdfunding 
B)  open sourcing 
C)  venture capital 
D)  online banking 
E)  crowdsourcing

Question 13

Among business products, support products include installations such as

Accepted Answer

A)  convenience products. 
B)  buildings and fixed equipment. 
C)  tools and office equipment. 
D)  raw materials and component parts. 
E)  maintenance, repair, and legal services.

Question 14

A discontinuous innovation is a product that

Accepted Answer

A)  disrupts consumers' normal routine but does not require totally new learning. 
B)  requires no new learning by consumers. 
C)  is not purchased by innovators and early adopters. 
D)  initiates obsolescence of a product class. 
E)  requires consumers to learn entirely new patterns of behavior and product usage.

Question 15

When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased

Accepted Answer

A)  an ancillary service. 
B)  an industrial service. 
C)  a specialty service. 
D)  an accessory service. 
E)  a contractual service.

Question 16

The Apple innovation that leading car manufacturers are incorporating into their offerings that allows users to make calls, listen to music, and access messages by voice or touch while driving is referred to as

Accepted Answer

A)  iPod. 
B)  iCloud. 
C)  iCar. 
D)  iPad. 
E)  CarPlay.

Question 17

Heavy-duty Rayovac flashlights are sold to consumers throughout the United States. Philips manufactures the bulbs used in Rayovac flashlights. The quantity of bulbs Philips makes is related to how many flashlights Rayovac sells. This is an example of

Accepted Answer

A)  a tying arrangement. 
B)  reciprocity. 
C)  strategic alliance demand. 
D)  relationship marketing. 
E)  derived demand.

Question 18

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to

Accepted Answer

A)  generate awareness among consumers. 
B)  advertise benefits to consumers that stress points of differentiation. 
C)  educate consumers about new consumption patterns through personal selling. 
D)  obtain widespread distribution in multiple channels. 
E)  stress price differentials from competitors' products.

Question 19

Procter & Gamble has a large ________ that includes product groupings such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener, Tide detergent, and Pampers diapers).

Accepted Answer

A)  marketing mix 
B)  product class 
C)  product itemization 
D)  product line 
E)  product mix

Question 20

GoPro uses all of these sources to generate new-product ideas except which?

Accepted Answer

A)  consumer shared content 
B)  team of professional and amateur athletes 
C)  employees 
D)  retailers 
E)  R&D lab IDEO

Exam 10: Developing New Products and Services