Question 1

A product that has tangible attributes that a consumer's five senses can perceive is referred to as

Accepted Answer

A)  a good. 
B)  a service. 
C)  a product concept. 
D)  an idea. 
E)  an artifact.

Question 2

Personal selling is least important for which of these products?

Accepted Answer

A)  headphones 
B)  coffeemaker 
C)  shampoo 
D)  hammock 
E)  watch

Question 3

Generating insights leading to marketing actions based on ideas from massive numbers of people is called

Accepted Answer

A)  brainstorming. 
B)  groupthink. 
C)  outsourcing. 
D)  crowdsourcing. 
E)  NIH method.

Question 4

________ consists of practices and processes that encourage the use of external as well as internal ideas and internal as well as external collaboration when conceiving, producing, and marketing new products and services.

Accepted Answer

A)  Innovation partnership 
B)  Open innovation 
C)  Formalized collaboration 
D)  Piggy-back thinking 
E)  Stakeholder cooperation

Question 5

Which of the following statements about services is most accurate?

Accepted Answer

A)  Services are classified as durable and nondurable. 
B)  The marketing of services is, in a practical sense, identical to the marketing of products or ideas since they both satisfy customer needs. 
C)  Only 10 percent of all jobs created in the United States are in the services sector. 
D)  Services are sometimes necessary to augment goods. 
E)  Services are among the easiest products to market because of their tangible nature.

Question 6

Vivienne, a college student with limited financial resources, was considering the purchase of a new laptop. She visited several office supply and consumer electronics stores, searching for the lowest price on a reliable new laptop. She devoted a great deal of time and energy to getting the best value for her money. For Vivienne, a laptop was

Accepted Answer

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

Question 7

Battery maker Duracell introduced a new product called the Duracell Powermat, which is a wireless charging pad for mobile devices. Because of the perceived fit with its other products, this new product was received well by consumers despite being in a different product category. This innovation strategy is known as a

Accepted Answer

A)  brand extension. 
B)  radical invention. 
C)  product line extension. 
D)  disruptive innovation. 
E)  product accumulation.

Question 8

The first LCD (liquid crystal display) flat-panel HD (high-definition) TV is an example of which type of innovation?

Accepted Answer

A)  continuous innovation 
B)  dynamically continuous innovation 
C)  discontinuous innovation 
D)  insignificant innovation 
E)  disruptive innovation

Question 9

Prego introduced a Pasta Bake Sauce, which called for uncooked pasta blended with pasta, sauce, meat, and cheese in a casserole. Legally, this product should only be labeled as new

Accepted Answer

A)  for the first six months that it was regularly available at a variety of grocery stores. 
B)  until a competitor such as Ragu had issued a similar product targeted to the same market. 
C)  as long it retained these exact product characteristics. 
D)  if it was functionally the same as its salsa sauce. 
E)  until its advertising had been seen by every member of its target audience.

Question 10

Which of the following products at the time of its introduction was the best example of a discontinuous innovation?

Accepted Answer

A)  DVD player 
B)  disposable lighters 
C)  instant light charcoal 
D)  liquid laundry detergent 
E)  automatic dishwashers

Question 11

Services can be classified according to whether they are

Accepted Answer

A)  national or global. 
B)  independent contractors. 
C)  privately owned or publicly owned. 
D)  delivered by people or equipment. 
E)  owned by individuals or corporations.

Question 12

Commercialization is

Accepted Answer

A)  the point at which a new product has diffused throughout the marketplace. 
B)  the introduction of an offering to sequential geographic areas of the United States. 
C)  the process of exposing actual products to prospective consumers under realistic purchase conditions. 
D)  the stage of the new-product development process that positions and launches a new product in full-scale production and sales. 
E)  the point where new-product concepts are transformed into prototypes.

Question 13

Ideally, before a new product or service is developed, a firm should have a precise ________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers.

Accepted Answer

A)  formula 
B)  contract 
C)  modus operandi 
D)  protocol 
E)  methodology

Question 14

An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business product?

Accepted Answer

A)  installations 
B)  finished goods 
C)  supplies 
D)  industrial services 
E)  raw materials

Question 15

The addition of Clorox II bleach to Tide laundry detergents is an example of a

Accepted Answer

A)  discontinuous innovation. 
B)  bundled innovation. 
C)  dynamically continuous innovation. 
D)  disruptive innovation. 
E)  continuous innovation.

Question 16

Test marketing involves offering a product for sale

Accepted Answer

A)  to a random sample of people in the top 10 U.S. cities. 
B)  in as broad a geographic region as possible. 
C)  to consumers that are representative of the target market. 
D)  on a limited basis in a defined area. 
E)  only on certain days of the week and hours of the day.

Question 17

A product is

Accepted Answer

A)  a tangible good received in exchange for a person's time and effort. 
B)  intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. 
C)  a good that has in some way been altered, combined, or improved and sold to organizational buyers. 
D)  a thought that leads to an action such as a concept for a new invention. 
E)  a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

Question 18

During the first stage of the new-product development process, two important activities take place. They are

Accepted Answer

A)  a SWOT analysis and environmental scanning. 
B)  open innovation and business analysis. 
C)  concept testing and product forecasting. 
D)  R&D and operations setup. 
E)  environmental scanning and open innovation.

Question 19

An important way of defining new products is in terms of their effects on consumption. This approach classifies new products according to

Accepted Answer

A)  the price. 
B)  the extent of media promotion. 
C)  the degree of potential product cannibalization. 
D)  the presence of feature bloat. 
E)  the degree of learning required by the consumer.

Question 20

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

A)  not listening to the voice of the engineer. 
B)  no economical access to buyers. 
C)  too much advertising or too aggressive a tone for it. 
D)  failure to anticipate competitors' actions. 
E)  insufficient funding for rollout.

Exam 10: Developing New Products and Services