Question 1

The demand for a business product that results from the demand for a consumer product is referred to as ________ demand.

Accepted Answer

A)  sequential 
B)  selective 
C)  primary 
D)  secondary 
E)  derived

Question 2

New-product strategy development is

Accepted Answer

A)  the stage of the new-product development process where specific product features and benefits are selected prior creating a new-product prototype. 
B)  a formalized protocol for new-product development determined by the director of marketing. 
C)  the stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives. 
D)  the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing. 
E)  the stage of the new-product development process that turns the idea on paper into a prototype, which results in a demonstrable, producible product corresponding to its protocol.

Question 3

There are seven stages of the new-product development process. After screening and evaluation is stage 4, the ________ stage.

Accepted Answer

A)  idea generation 
B)  creative direction 
C)  business analysis 
D)  new-product strategy development 
E)  market testing

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 as a gift on Valentine's Day. The Love Bandit Bear is an example of a

Accepted Answer

A)  product item. 
B)  product mix. 
C)  product class. 
D)  product form. 
E)  product line.

Question 5

A durable good is

Accepted Answer

A)  an item consumed in one or a few uses. 
B)  an item that usually lasts over many 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 6

Among business products, which of these would most likely be considered an industrial service?

Accepted Answer

A)  tractor 
B)  glass cleaner 
C)  photocopier maintenance 
D)  athletic training facility 
E)  syringes

Question 7

An external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual finished product is referred to as

Accepted Answer

A)  new-product strategy development. 
B)  idea generation. 
C)  crowdsourcing. 
D)  market testing. 
E)  a concept test.

Question 8

Idea generation is the stage in the new-product development process in which the firm

Accepted Answer

A)  develops a pool of concepts to serve as candidates for new products. 
B)  selects a single concept and scrutinizes it for all potential benefits and flaws. 
C)  separates ideas into two categories: consumer-oriented and organization-oriented. 
D)  performs a SWOT analysis and an environmental scan. 
E)  uses a variety of techniques to screen and reject those ideas that have no merit.

Question 9

The screening and evaluation stage of the new-product development process involves

Accepted Answer

A)  internal and external appraisals of new-product ideas. 
B)  product selection and budgeting projections. 
C)  business and cost analyses. 
D)  patent searches and environmental scanning. 
E)  idea selection and prototype development.

Question 10

A newly invented apple peeling and coring machine for the consumer market would be considered

Accepted Answer

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

Question 11

________ includes considering employee interactions with customers to ensure they are consistently delivered and experienced, clearly differentiated from other offerings, and relevant and valuable to the target market.

Accepted Answer

A)  Capacity management 
B)  Customer experience management 
C)  Derived demand 
D)  Internal marketing 
E)  The key service factor

Exam 10: Developing New Products and Services