Question 1

Dragalong income refers to additional income whereas cannibalized income refers to reduced income.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following terms refers to the degree to which the innovation can be tried on a limited basis?

Accepted Answer

A) compatibility 
B) relative advantage 
C) divisibility 
D) communicability 
E) complexity 
A) compatibility 
B) relative advantage 
C) divisibility 
D) communicability 
E) complexity

Question 3

What is sales-wave research?

Accepted Answer

It is a method of consumer-goods market

Question 4

Increasingly,new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering.

Accepted Answer

A) reverse assumption analysis 
B) lateral marketing 
C) attribute listing 
D) forced relationships 
E) morphological analysis 
A) reverse assumption analysis 
B) lateral marketing 
C) attribute listing 
D) forced relationships 
E) morphological analysis

Question 5

For a frequently purchased new product,the seller estimates repeat sales as well as first-time sales.A high rate of repeat purchasing means customers ________.

Accepted Answer

A) value price more than differentiation 
B) do not support innovation on brands 
C) value differentiation more than price 
D) prefer personalized products rather than standard ones 
E) are satisfied with the product 
A) value price more than differentiation 
B) do not support innovation on brands 
C) value differentiation more than price 
D) prefer personalized products rather than standard ones 
E) are satisfied with the product

Question 6

After creating a product prototype,a company tests it within the firm to see how it performs in different applications.The company refines the prototype to correct the mistakes found in in-house testing.What should be the next step?

Accepted Answer

A) commercializing the product 
B) performing concept testing 
C) conducting beta testing with customers 
D) creating a marketing strategy for the product 
E) performing business analysis 
A) commercializing the product 
B) performing concept testing 
C) conducting beta testing with customers 
D) creating a marketing strategy for the product 
E) performing business analysis

Question 7

Some firms might delay new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid.This can be classified as a parallel entry.

Accepted Answer

A) True 
 B)False

Question 8

Perceived value refers to the gap between actual needs and satisfied needs of a customer.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following methodologies takes the list of desired customer attributes (CAs)generated by market research and turns them into a list of engineering attributes (EAs)that engineers can use?

Accepted Answer

A) quality control processes 
B) quality function deployment 
C) rapid prototyping 
D) marketing control 
E) control system formation 
A) quality control processes 
B) quality function deployment 
C) rapid prototyping 
D) marketing control 
E) control system formation

Question 10

Most established companies focus on incremental innovation rather than radical innovation.

Accepted Answer

A) True 
 B)False

Question 11

Cannibalized income is the increased income on other company products resulting from adding this product to the line.

Accepted Answer

A) True 
 B)False

Question 12

The trade-off approach may be easier to use when there are only a few variables and alternatives.

Accepted Answer

A) True 
 B)False

Question 13

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?

Accepted Answer

A) idea generation 
B) idea screening 
C) business analysis 
D) concept development and testing 
E) product development and testing 
A) idea generation 
B) idea screening 
C) business analysis 
D) concept development and testing 
E) product development and testing

Question 14

Crowdsourcing means inviting the Internet community to help create content or software,often with prize money or a moment of glory as an incentive.

Accepted Answer

A) True 
 B)False

Question 15

A business analysis is typically performed after the management has developed the product concept and marketing strategy.

Accepted Answer

A) True 
 B)False

Question 16

I-ball,a cell phone manufacturer introduces a cell phone targeted at customers aged above 70.It has features such as loud volume,large keys,and so forth.How do you classify this product innovation? What could be a possible disadvantage of this product?

Accepted Answer

This can be considered a new-t

Question 17

A category concept defines the product's attributes and features.

Accepted Answer

A) True 
 B)False

Question 18

Electro Locomotors (EL),Inc.engages in the manufacture,distribution,and marketing of custom vehicles in Asia.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 is 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.

Accepted Answer

A) attribute listing 
B) forced relationship analysis 
C) morphological analysis 
D) reverse assumption analysis 
E) mind mapping 
A) attribute listing 
B) forced relationship analysis 
C) morphological analysis 
D) reverse assumption analysis 
E) mind mapping

Question 19

________ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.

Accepted Answer

A) Sales wave analysis 
B) Simulative data testing 
C) Adaptive conjoint analysis 
D) Business analysis 
E) Exponential data collection 
A) Sales wave analysis 
B) Simulative data testing 
C) Adaptive conjoint analysis 
D) Business analysis 
E) Exponential data collection

Question 20

The ________ used by companies divides the innovation process into stages,with a checkpoint at the end of each stage.

Accepted Answer

A) reverse assumption analysis technique 
B) skunkworks system 
C) stage-gate system 
D) spiral development process 
E) new-product department technique 
A) reverse assumption analysis technique 
B) skunkworks system 
C) stage-gate system 
D) spiral development process 
E) new-product department technique

Exam 21: Introducing New Market Offerings

Dragalong income refers to additional income whereas cannibalized income refers to reduced income.

Which of the following terms refers to the degree to which the innovation can be tried on a limited basis?

What is sales-wave research?

Increasingly,new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering.

For a frequently purchased new product,the seller estimates repeat sales as well as first-time sales.A high rate of repeat purchasing means customers ________.

After creating a product prototype,a company tests it within the firm to see how it performs in different applications.The company refines the prototype to correct the mistakes found in in-house testing.What should be the next step?

Some firms might delay new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid.This can be classified as a parallel entry.

Perceived value refers to the gap between actual needs and satisfied needs of a customer.

Which of the following methodologies takes the list of desired customer attributes (CAs)generated by market research and turns them into a list of engineering attributes (EAs)that engineers can use?

Most established companies focus on incremental innovation rather than radical innovation.

Cannibalized income is the increased income on other company products resulting from adding this product to the line.

The trade-off approach may be easier to use when there are only a few variables and alternatives.

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?

Crowdsourcing means inviting the Internet community to help create content or software,often with prize money or a moment of glory as an incentive.

A business analysis is typically performed after the management has developed the product concept and marketing strategy.

I-ball,a cell phone manufacturer introduces a cell phone targeted at customers aged above 70.It has features such as loud volume,large keys,and so forth.How do you classify this product innovation? What could be a possible disadvantage of this product?

A category concept defines the product's attributes and features.

________ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.

The ________ used by companies divides the innovation process into stages,with a checkpoint at the end of each stage.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

Creating Customer Value,satisfaction,and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing,wholesaling,and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, sales Promotions, events, and Public Relations

Managing Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Tapping Into Global Markets

Managing a Holistic Marketing Organization

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