Question 1

All of the following are disadvantages of test marketing EXCEPT that test marketing ________.

Accepted Answer

A)  is typically expensive 
B)  can be time consuming 
C)  enables competitors to gain advantages 
D)  encourages dishonesty among participants 
E)  fails to guarantee product success in the market

Question 2

Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?

Accepted Answer

A)  concept testing 
B)  marketing strategy development 
C)  business analysis 
D)  product development 
E)  test marketing

Question 3

How might a firm benefit from implementing an "intrapreneurial" program?

Accepted Answer

The answer of How might a firm benefit from implementing...

Question 4

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service?

Accepted Answer

A)  idea screening 
B)  product development 
C)  product activation 
D)  marketing strategy development 
E)  product design

Question 5

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas.

Accepted Answer

A)  quality 
B)  innovation 
C)  content 
D)  supply chain 
E)  customer relationship

Question 6

Define commercialization. Explain two important decisions the company must make during this stage.

Accepted Answer

The answer of Define commercialization. Explain two important decisions the...

Question 7

A marketer has chosen a multiple-city test market. What can be concluded from this choice of a multiple-city test market?

Accepted Answer

The answer of A marketer has chosen a multiple-city test...

Question 8

Many companies have developed ________ programs that encourage employees to develop new product ideas.

Accepted Answer

A)  management 
B)  incentive 
C)  entrepreneurial 
D)  intrapreneurial 
E)  crowdsourcing

Question 9

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.

Accepted Answer

A)  where to launch the new product 
B)  how to launch the new product 
C)  why to launch the new product 
D)  what pricing strategies to implement 
E)  what marketing mix elements to use

Question 10

A company getting ready to launch a new product must make several decisions. The company must first decide on ________.

Accepted Answer

A)  whether to launch the product in a single location 
B)  whether to launch the product in a region 
C)  whether to launch the product into full national distribution 
D)  when to introduce the product 
E)  when to develop a planned market rollout

Question 11

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?

Accepted Answer

A)  retest the product in additional markets 
B)  develop a planned market rollout over time 
C)  liquidate its assets to gain capital and capacity 
D)  seek the help of a nationally known consultant 
E)  develop a prototype

Question 12

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-When sales of a product drop during the decline stage of the PLC, a company typically modifies the marketing mix, the product, or the market.

Accepted Answer

A) True 
 B)False

Question 13

When Kraft focused on cost cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.

Accepted Answer

A)  extend 
B)  modify 
C)  drop 
D)  harvest 
E)  analyze

Question 14

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?

Accepted Answer

A)  idea screening 
B)  idea generation 
C)  concept testing 
D)  product development 
E)  product manufacturing

Question 15

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?

Accepted Answer

A)  growth 
B)  product development 
C)  maturity 
D)  introduction 
E)  decline

Question 16

In the new product development process, the first idea-reducing stage is ________.

Accepted Answer

A)  business analysis 
B)  idea generation 
C)  concept development 
D)  crowdsourcing 
E)  idea screening

Question 17

What factors are assessed in test marketing?

Accepted Answer

The answer of What factors are assessed in test marketing?...

Question 18

An attractive product idea must be developed into a ________.

Accepted Answer

A)  concept alternative 
B)  product concept 
C)  brand personality 
D)  brand placement 
E)  product strategy

Question 19

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

Accepted Answer

A)  idea 
B)  displacement 
C)  image 
D)  activation 
E)  placement

Question 20

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

Accepted Answer

A)  clearly assigns responsibility for the process to a single department 
B)  yields a larger number of new product ideas 
C)  guarantees successful products 
D)  frees up senior management time 
E)  requires less budget support

Exam 9: New Product Development and Product Life-Cycle Strategies