Exam 15: Introducing New Market Offerings

Cannibalized income is additional income to a company as a result of a new product.

A spiral development process recognizes the value of returning to an earlier stage to make improvements before moving forward.

To estimate replacement sales, management must research the product's ________, the number of units that fail in year one, two, three, and so on.

Electro Locomotors (EL) Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Brazil. Bono, a hybrid car brand that the company produces, is a market leader in the hybrid vehicles segment. With the increased global focus on nature-friendly vehicles and governmental subsidies for companies that manufacture hybrid vehicles, competition has increased for flex-fuel cars like Bono. The heads of the R&D team at EL are in a creative session to generate ideas for improvements to Bono. They consider each part of the car and discuss the possibilities of improvements in each of them. Identify the creativity technique used here.

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Skunkworks are formal workplaces where intrapreneurial teams attempt to develop new products.

________ teams are cross-functional groups charged with developing a specific product or business.

A DROP-error occurs when the company accepts a bad idea.

When a company combines two product concepts or ideas to create a new offering, it is called reverse assumption analysis.

The least costly way of consumer-goods market testing is ________.

Which of the following products is most likely to undergo alpha and beta testing?

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product was a failure. Which of the following is the most likely reason for the product's failure in this case?

Which of the following is usually referred to as a full-blown test market?

Which of the following is an advantage of sales-wave research?

Fewer than 10 percent of all new products are truly innovative and new to the world.

Morboro Energy Inc. is a large chain of fuel stations in Europe. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________.

A ________ error occurs when the company dismisses a good idea.

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. Some top managers want to collect sales-wave research, but others disagree, offering several disadvantages. List these disadvantages.

________ means presenting the product concept to target consumers, symbolically or physically, and getting their reactions.

________ is the effect one person has on another's attitude or purchase probability.