Question 1

Discuss how firms today can use "open innovation" and "crowdsourcing" when trying to develop a new type of handheld recording device.

Accepted Answer

The answer of Discuss how firms today can use "open...

Question 2

Marissa, a college student and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a college student with limited Financial resources, Marissa went from car dealer to car dealer in several different Cities searching for the lowest price on a new economy car. She devoted a great deal of time and energy to getting the best value for her money. Marissa's father, however, Knew that he would buy another new car next year. Because it was convenient, he simply went to the local auto dealer and, with little thought or effort regarding the Buying decision, bought the first luxury car that he saw. For Marissa, an automobile was a ________; for her father, a car was a __________.

Accepted Answer

A) convenience good; specialty good 
B) shopping good; convenience good 
C) specialty good; shopping good 
D) specialty good; convenience good

Question 3

All of the following might be used in the development phase, except

Accepted Answer

A) marketing plan development 
B) safety testing 
C) external solicitation of ideas 
D) consumer testing

Question 4

Off-peak pricing for a new service offering is a result of using __________ understand the potential service offering.
To fully

Accepted Answer

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

Question 5

All of the following are advantages in using virtual reality test marketing, except:

Accepted Answer

A) it is often less expensive 
B) it can often be more expensive 
C) it can often reduce the time to market

Question 6

The 18-hole golf course that a subdivision developer had custom designed and built to attract more new home buyers to the subdivision would be an example of a(n):

Accepted Answer

A) installation. 
B) production good. 
C) accessory equipment. 
D) supply.

Question 7

Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to pre-cook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new:

Accepted Answer

A) until every member of its target audience was aware of its existence. 
B) as long it retained these exact product characteristics. 
C) for the first twelve months that it was regularly available. 
D) until a competitor had issued a similar product targeted to the same market.

Question 8

With respect to price, which of the following types of consumer goods would most likely be very expensive?

Accepted Answer

A) shopping goods 
B) specialty goods 
C) convenience goods 
D) unsought goods

Question 9

Gasoline would be considered a:

Accepted Answer

A) Industrial goods 
B) Specialty goods 
C) Convenience goods 
D) Shopping goods

Question 10

Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauce, and salad dressings under the Newman's Own brand name. These product lines are the company's:

Accepted Answer

A) product category. 
B) stock-keeping units. 
C) product hierarchy. 
D) product mix.

Question 11

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to:

Accepted Answer

A) advertise benefits to consumers, stressing point of differentiation and consumer advantage. 
B) obtain widespread distribution. 
C) educate consumers about entirely new consumption patterns through product trial and personal selling. 
D) generate awareness among consumers and obtain widespread distribution.

Question 12

The emphasis of a marketing strategy for a dynamically continuous innovation would include:

Accepted Answer

A) setting the price low. 
B) advertising to explain product features and their advantages. 
C) obtaining widespread distribution. 
D) advertising to generate awareness.

Question 13

Heinz launched its EZ Squirt Ketchup in an array of unlikely hues-from green and orange to pink and teal-with kid-friendly squeeze bottles and nozzles. When it was introduced, it would have been an example of a:

Accepted Answer

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

Question 14

Support goods are items used to assist in producing other goods and services. Support goods include installations, accessory equipment, and:

Accepted Answer

A) consumer tie-ins. 
B) supplies and services. 
C) process materials. 
D) industrial equipment.

Question 15

What advantages does the ThothX Tower have compared to professional rockets for space travel?

Accepted Answer

A) The Tower is faster than a rocket launched from Earth. 
B) The Tower can eject astronauts vertically into space. 
C) The Tower uses electricity and induction so is environmentally friendly. 
D) The ThothX Tower can also launch satellites into orbit.

Question 16

When it comes to developing new services over new products there are some significant differences. All of the following represent the differences except:

Accepted Answer

A) the service delivery staff is part of the customer experience. 
B) local decentralized production of the service is required. 
C) the new-service development process is often difficult for the customer to observe. 
D) focus on the competition, not on consumers.

Question 17

Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways. Which of the following best illustrates these differences?

Accepted Answer

A) many services require the physical presence of the customer, which demands local decentralized production of the service 
B) the new-service development process is often easy for the service customer to observe 
C) most service companies focus on continuous innovation 
D) most service companies focus on creating only incremental improvements

Question 18

If consumer demand for Ford cars (a consumer product)increases, the company may increase its demand for paint-spraying equipment (a business good). This illustrates ________.

Accepted Answer

A) derived demand 
B) unit demand 
C) contrived demand 
D) primary demand

Question 19

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. This hierarchy consists of
________ categories.

Accepted Answer

A) six 
B) seven 
C) five 
D) four

Question 20

Figure 10-1
 
-According to Figure 10-1, column "D" would represent what type of product?

Accepted Answer

A) Unsought 
B) Convenienc e 
C) Specialty 
D) Shopping

Exam 10: Developing New Products and Services