Question 1

Among business products, which of the following would most likely be considered supplies?

Accepted Answer

A) photocopier 
B) drywall 
C) ink-jet printer cartridges 
D) cleaning service 
E) concert hall chairs

Question 2

As consumer demand for Ford cars (a consumer product) increases, the company may increase its demand for paint spraying equipment (a business product). This is an example of

Accepted Answer

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

Question 3

Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally). When it was introduced, Napster would have been an example of a

Accepted Answer

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

Question 4

Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauces, and salad dressings under the Newman's Own brand name. These product lines comprise the company's

Accepted Answer

A) product mix. 
B) stock keeping units. 
C) product category. 
D) product class. 
E) marketing category.

Question 5

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers' needs, wants, and preferences; and (3) what the product or service will be and do to satisfy consumers.

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 6

Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads, spreads, and meats, but at its introduction the company forgot to explain this to potential consumers. This product failure demonstrates

Accepted Answer

A) not satisfying customer needs on critical factors. 
B) poor product quality. 
C) poor execution of the marketing mix. 
D) an insignificant point of difference. 
E) bad timing.

Question 7

New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market. Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element?

Accepted Answer

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

Question 8

There are seven stages of the new-product development process. Stage 7 is the __________ stage.

Accepted Answer

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

Question 9

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 10

Durable goods emphasize which of the following elements of the promotional mix?

Accepted Answer

A) sales promotion 
B) personal selling 
C) advertising 
D) public relations 
E) direct marketing

Question 11

Development refers to the stage of the new-product development process

Accepted Answer

A) where initial ideas are generated and discussed. 
B) that turns an idea on paper into a prototype. 
C) where product characteristics and product benefits are selected. 
D) where cross-functional team members and leaders are selected and initial tasks are assigned. 
E) where the first version of a product enters the marketplace.

Question 12

A product that requires the learning of entirely new consumption patterns among consumers is referred to as

Accepted Answer

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

Question 13

Describe the different ways to define a product as new.

Accepted Answer

The answer of Describe the different ways to define a...

Question 14

Philips Sonicare recently introduced the DiamondClean rechargeable toothbrush. A key innovation is its Quadpacer interval timer that goes off after 30 seconds to prompt the user to move on to the next quadrant of the mouth, resulting in better cleaning and improved gum health. This is an example of which type of innovation?

Accepted Answer

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

Question 15

The term product class refers to

Accepted Answer

A) the NAICS designation of an individual product or brand. 
B) the designation of an individual product based upon its form. 
C) a variation of a product within a product mix. 
D) the designation of a product based on whether it is a consumer product or business product. 
E) the industry a set of offerings belongs to.

Question 16

Product line refers to

Accepted Answer

A) a product and all its ancillary services (warranties, financing, etc.). 
B) the variations within a product class. 
C) a specific product SKU that has a unique brand, size, or price. 
D) a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range. 
E) the entire product category or industry.

Question 17

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 18

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

Accepted Answer

A) did not satisfy customer needs on critical factors. 
B) had poor product quality. 
C) had bad timing. 
D) had an incomplete market and product protocol. 
E) had too little market attractiveness.

Question 19

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 20

Services can be classified according to whether they are delivered by people or equipment, business firms or nonprofit organizations, or

Accepted Answer

A) a national organization or a global organization. 
B) privately owned or publicly owned. 
C) performed by independent contractors. 
D) owned by individuals or corporations.

Exam 10: Developing New Products and Services