Question 1

The initial target market for X-1 products consisted of

Accepted Answer

A)  seniors who want easy-to-use TV remotes with large buttons.
B)  athletes who want waterproof, sweatproof, and weatherproof audio equipment.
C)  audiophiles who want HD Sirius/XM Satellite radio receivers in their homes.
D)  consumers who want an inexpensive MP3 player like the old Sony Walkman.
E)  smartphone users who want a "plug-in" device that lets them listen to AM radio on their smartphone.F) A) and D)
G) A) and B)

Question 2

Less than __________ of new consumer packaged goods (CPG)  exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Accepted Answer

A)  3 percent
B)  10 percent
C)  17 percent
D)  28 percent
E)  35 percentF) B) and E)
G) A) and D)

Question 3

Simulated test markets (STMs)  are often run in shopping malls where consumers are

Accepted Answer

A)  asked how much a person is willing to pay for an unfamiliar item.
B)  asked whether they saw the firm's advertising campaign.
C)  questioned about how often they are likely to shop in that particular location.
D)  asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product.
E)  shown the product or the product concept and are asked about usage, reasons for purchase, and important product attributes.F) A) and C)
G) A) and B)

Question 4

IDEO is a company that

Accepted Answer

A)  creates innovative promotional programs for its clients' new products.
B)  developed the formal Stage-Gate process to commercialize new products for its clients.
C)  uses "design thinking" to develop new products for other organizations.
D)  rates new products like Consumer Reports.
E)  runs patent searches for companies that don't have an internal legal department.F) A) and C)
G) B) and C)

Question 5

A product that is new in some way but requires no new behaviors to be learned by consumers is a

Accepted Answer

A)  continuous innovation.
B)  discontinuous innovation.
C)  dynamically continuous innovation.
D)  product transformation.
E)  concurrent innovation.F) C) and D)
G) D) and E)

Question 6

The two main classifications of business products are

Accepted Answer

A)  durable and nondurable products.
B)  components and support products.
C)  tangible and intangible products.
D)  consumer and industrial products.
E)  derived and maintenance products.F) B) and C)
G) A) and B)

Question 7

___________ are items that the consumer makes a special effort to search out and buy.

Accepted Answer

A)  Shopping products
B)  Convenience products
C)  Specialty products
D)  Prestige products
E)  Unsought productsF) B) and E)
G) A) and B)

Question 8

Groupthink occurs in a meeting when

Accepted Answer

A)  everyone has an opinion but no one is willing to take charge.
B)  everyone has the same idea after using the brainstorming idea-generation technique.
C)  there is too much competition among marketing managers, so no one is willing to share his/her ideas.
D)  someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it.
E)  top management wants the new product to go forward regardless of what anyone else thinks.F) A) and B)
G) C) and E)

Question 9

With respect to price and availability, shopping products are likely to be

Accepted Answer

A)  relatively inexpensive and widely available.
B)  relatively inexpensive but very limited availability.
C)  very expensive and available at a large number of selective outlets.
D)  very expensive with very limited availability.
E)  fairly expensive and available at a large number of selective outlets.F) A) and B)
G) None of the above

Question 10

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which one should be used to measure sales performance?

Accepted Answer

A)  every metric possible
B)  shelf space for this year and last year by city
C)  production costs
D)  customer psychographics
E)  annual percent sales change by cityF) C) and D)
G) B) and E)

Question 11

Developing a pool of concepts to serve as candidates for new products is the __________ stage of the new-product process.

Accepted Answer

A)  open innovation
B)  screening and evaluation
C)  product development
D)  new-product strategy development
E)  idea generationF) A) and B)
G) A) and E)

Question 12

The most expensive stage in the new-product process for most products and services is

Accepted Answer

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

Question 13

Business products refers to

Accepted Answer

A)  products organizations buy that assist in providing other products for resale.
B)  supplies necessary for the day-to-day operations of a business.
C)  ancillary services necessary for the operation of a business.
D)  products that are sold exclusively to for-profit businesses.
E)  products purchased by the ultimate consumer.F) B) and D)
G) A) and D)

Question 14

The type of good for which the consumer compares several alternatives on such criteria as price, quality, and style is

Accepted Answer

A)  a shopping product.
B)  a convenience product.
C)  a specialty product.
D)  an unsought product.
E)  a B2B product.F) A) and B)
G) D) and E)

Question 15

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

Accepted Answer

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

Question 16

Wrigley's new Alert Energy Caffeine Gum "offers a portable solution that lets adults control their caffeine intake." This new gum is most likely which type of innovation?

Accepted Answer

A)  continuous innovation
B)  dynamically continuous innovation
C)  discontinuous innovation
D)  insignificant innovation
E)  disruptive innovationF) C) and D)
G) None of the above

Question 17

Open innovation may enhance the __________ stage of the new-product development process.

Accepted Answer

A)  internal collaboration
B)  screening and evaluation
C)  product development
D)  new-product strategy development
E)  idea generationF) C) and D)
G) A) and D)

Question 18

Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision?

Accepted Answer

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

Question 19

A product line is 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 type of outlets, or

Accepted Answer

A)  are made of similar components.
B)  fall within a given price range.
C)  are made from the same formulations.
D)  are identical except for price.
E)  require high levels of R&D.F) A) and B)
G) All of the above

Question 20

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.F) All of the above
G) C) and E)

Exam 10: Developing New Products and Services

Groupthink occurs in a meeting when

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Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision?

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Simulated test markets (STMs) are often run in shopping malls where consumers are

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The most expensive stage in the new-product process for most products and services is

Correct AnswerverifiedShow Answer

The type of good for which the consumer compares several alternatives on such criteria as price, quality, and style is

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Developing a pool of concepts to serve as candidates for new products is the __________ stage of the new-product process.

Correct AnswerverifiedShow Answer

Open innovation may enhance the __________ stage of the new-product development process.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which one should be used to measure sales performance?

Correct AnswerverifiedShow Answer

The initial target market for X-1 products consisted of

Correct AnswerverifiedShow Answer

A product line is 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 type of outlets, or

Correct AnswerverifiedShow Answer

___________ are items that the consumer makes a special effort to search out and buy.

Correct AnswerverifiedShow Answer

Test marketing involves offering a product for sale

Correct AnswerverifiedShow Answer

Less than __________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Correct AnswerverifiedShow Answer

Business products refers to

Correct AnswerverifiedShow Answer

IDEO is a company that

Correct AnswerverifiedShow Answer

The two main classifications of business products are

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Wrigley's new Alert Energy Caffeine Gum "offers a portable solution that lets adults control their caffeine intake." This new gum is most likely which type of innovation?

Correct AnswerverifiedShow Answer

A product that is new in some way but requires no new behaviors to be learned by consumers is a

Correct AnswerverifiedShow Answer

With respect to price and availability, shopping products are likely to be

Correct AnswerverifiedShow Answer

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