Question 1

Sara Burns is the owner of a company called Spice and was looking for a new product    to go with her company's line of food condiments, when a friend suggested combining spices with tea. This is an example of:

Accepted Answer

A) accidental invention. 
B) management by walking around. 
C) bootlegging time. 
D) idea generation.

Question 2

Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments, when a friend suggested combining spices with tea. In the ___________stage of the new-product process, spices and tea were turned into a prototype.

Accepted Answer

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

Question 3

Each of the following statements illustrates a reason why creating and delivering new services is much more difficult than creating new tangible products EXCEPT:

Accepted Answer

A) New services usually do not have a tangible product to carry a brand name. 
B) Many services require the physical presence of the customer, which demands local decentralized production of the service. 
C) Most service companies focus on creating incremental improvements. 
D) The new-service development process is also difficult to map out for the service company and often difficult for the service customer to observe.

Question 4

Assume that, as marketing director for Mazda, you see your sales decreasing in the years since the Honda Prelude with four-wheel steering was introduced. If you hope to regain sales in this market quickly through a new-product action, the most valuable sources of ideas would be:

Accepted Answer

A) competitive products. 
B) research and development breakthroughs. 
C) consumer suggestions. 
D) employee suggestions.

Question 5

Characterize the difference between a product line and a product mix. Give an example of each.

Accepted Answer

The answer of Characterize the difference between a product line...

Question 6

Figure 10-2
 
-According to Figure 10-2, column "B" represents a

Accepted Answer

A) dynamically continuous innovation. 
B) spontaneous innovation. 
C) discontinuous innovation. 
D) simultaneous innovation.

Question 7

When analyzing a new potential service offering, it is critical for the organization to use which of the following tools?

Accepted Answer

A) consumer usability analysis 
B) capacity management 
C) alternative competitive analysis 
D) test-case analysis

Question 8

With respect to price and availability, shopping goods are likely to be:

Accepted Answer

A) very expensive, very limited availability. 
B) fairly expensive, available at a large number of selective outlets. 
C) relatively inexpensive but very limited availability. 
D) relatively inexpensive and widely available.

Question 9

The Toronto Hospital for Sick Children consists of inpatient hospital care, outpatient physician services, and medical research. For the hospital, these would be considered their:

Accepted Answer

A) product lines. 
B) marketing mixes. 
C) product classes. 
D) product mixes.

Question 10

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. New uniforms for service personnel and new colour schemes for the service facilities would be examples of:

Accepted Answer

A) service-line extensions 
B) major service innovations 
C) style changes 
D) process-line extensions

Question 11

Which of the following statements about the screening and evaluation stage of the new-product process is true?

Accepted Answer

A) New-product ideas are eliminated during the business analysis stage. 
B) A mock-up of a movie based on the Friends series shown to moviegoers who are asked their opinions of the movie is an example of a concept test. 
C) The external approach decides whether the new-product idea is technically feasible. 
D) Concept testing is part of the internal approach.

Question 12

Which support good is likely to be purchased using the straight rebuy decision sequence?

Accepted Answer

A) accessory equipment 
B) services 
C) supplies 
D) installations

Question 13

Loblaws required that Birds Eye pay $15,000 to get its new frozen stir-fry vegetable mix placed in the freezers of Loblaws supermarkets. This payment is called a __________ by Birds Eye.

Accepted Answer

A) retail goodwill fee 
B) product support fee 
C) slotting fee 
D) bribe

Question 14

Each of the following describes products that assist directly or indirectly in providing products for resale EXCEPT:

Accepted Answer

A) Organizational goods 
B) Consumer goods 
C) B2B goods 
D) Industrial goods

Question 15

IBM's ViaVoice speech recognition software, which enabled users to speak into a computer and have the computer translate their speech to the computer screen meant
That people had to learn totally new behaviours to produce word processed documents. This is an example of:

Accepted Answer

A) discontinuous innovation. 
B) dynamically continuous innovation. 
C) dramatically continuous innovation.

Question 16

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. A Canadian university or college offering a totally online MBA program where you never have to visit the
Campus to complete your degree would be example of:

Accepted Answer

A) process-line extensions 
B) style changes 
C) major service innovations 
D) major process innovations

Question 17

The following factors contribute to new-product failures or are symptoms of product failure:
incompatibility with the firm's objectives and capabilities, competition that is too tough, lack of top management support, and lack of money. However, seven factors, often present in
combination, are enumerated in our text. What are they?

Accepted Answer

The answer of The following factors contribute to new-product failures...

Question 18

Which of the products listed below would be the best candidate for full-scale market testing?

Accepted Answer

A) mid-priced luxury sedan made in America by Mazda 
B) new iced coffee beverage from Snapple 
C) totally free checking account from The Royal Bank of Canada 
D) household (not individualized)frequent flyer program from Air Canada

Question 19

The Build-A-Bear Workshop in West Edmonton Mall sells custom made Teddy bears designed to be given as gifts for almost every occasion imaginable. The Beary Romantic Curly Teddy is one bear it designed for people to give to each other on Valentine's Day. The Beary Romantic Curly Teddy is an example of a:

Accepted Answer

A) brand item. 
B) product class. 
C) product item. 
D) product type.

Question 20

Websites such as IDEO and InnoCentive use _________to obtain ideas.

Accepted Answer

A) crowdsourcing 
B) "free time" 
C) real-time feedback 
D) online ideation

Exam 10: Developing New Products and Services

Sara Burns is the owner of a company called Spice and was looking for a new product to go with her company's line of food condiments, when a friend suggested combining spices with tea. This is an example of: