Deck 11: Developing and Managing Products

Question 1

According to the text, what should be used to determine whether a company has a balanced portfolio of products and, if not, what new-product ideas are needed to offset the imbalance?

A)internal product development venture teams
B)outside consultants
C)marketing development departments
D)status quo committees

Answer 1

B

Question 2

When General Mills changed the formula for its Oatmeal Crisp cereal, it added ingredients to reduce the risk of high blood pressure, to lower cholesterol, and to reduce the risk of stroke, thus providing greater value to the consumer. Since it was not trying to reach a new target market, which new product strategy was General Mills using?

A)improved product
B)discontinuous innovation product
C)repositioned product
D)new product innovation

Answer 2

A

Question 3

Victorinox has long manufactured Swiss Army knives and recently developed a line of upscale Swiss Army watches. Which strategies did Victorinox use to create new products?

A)new-to-the-world product
B)new product line
C)repositioned product
D)discontinuous innovation product

Answer 3

B

Question 4

Why is the term new product confusing?

A)because its meaning varies widely and has several correct definitions
B)because a new product is an old product updated
C)because it is a venture product
D)because all new products carry the same level of newness

Question 5

When the manufacturer of L'Oreal shampoo introduced shampoos designed specifically to appeal to preteens, which of the following best describes the product?

A)not considered new, because the product was not discontinuous
B)easily sold to many foreign countries using the same, popular L'Oreal brand name
C)an example of inventing a product and then trying to create a need
D)a new product because it was an improvement or revision of an existing product

Question 6

Which of the following is NOT considered a new product?

A)a 2017 model-year GE oven with the same style, parts, and colour as the 2009 model
B)the addition of a management consultant service to a company that once specialized in investment management
C)a rebranding of Lego products
D)a flavour of Ben & Jerry's brand ice cream that was popular 5 years ago

Question 7

In its early years of operation, MGP Ingredients Inc. sold ethanol and animal feed. A steep drop in its sales led the company to focus on developing the first low-carb wheat proteins and starches. What would these low-carb products be an example of?

A)a repositioning strategy
B)a new product line
C)an addition to an existing product line
D)a discontinuous innovation

Question 8

For years, the Lacoste brand of clothing has targeted 40-something male consumers. Today, it targets both male and female fashion-conscious consumers in their 20s with everything from moon boots to shearling coats. Which strategy is being implemented?

A)niche
B)new-product-line
C)retargeting
D)repositioning

Question 9

What links the new-product development process with the objectives of the marketing department, business unit, and corporation?

A)product-review committee
B)concept test
C)new-product strategy
D)product strategy bridge

Question 10

The CEO of a cell-phone company, Teresa Bilodeau, and her colleagues sat around a conference table and came up with as many ways as they could to extend the battery life of their handsets. The practicality of the ideas was not taken in to account. What is this process known as?

A)screening
B)a focus-group interview
C)brainstorming
D)diffusion

Question 11

Which of the following is NOT a likely source of new product ideas?

A)customers
B)employees
C)financial lenders
D)competitors

Question 12

When Glade brand air freshener began marketing a clean linen-scented air spray, how could the action be classified?

A)as a repositioning strategy
B)as a new product line
C)as an addition to an existing product line
D)as a discontinuous innovation

Question 13

Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm's employees got together and listed ways the product might be used. What is this an example of?

A)focusing grouping
B)brainstorming
C)concept testing
D)screening

Question 14

Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced sunglasses that play music. The glasses weigh a little over a pound and can hold up to 120 songs. What are these sunglasses an example of?

A)a repositioning strategy
B)a new product line
C)an addition to an existing product line
D)a discontinuous strategy

Question 15

A new-product strategy can be best described by which of the following?

A)It links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
B)It is part of an organization's takeover strategy.
C)It specifies the roles existing products play in the organization's overall plans.
D)It is part of the overall marketing distribution.

Question 16

The maker of Kandoo has added Kandoo Baby Wipes to its product line. Is this a new product?

A)Yes, additions to the product line are new products.
B)No, it is only a product addition.
C)Yes, this is a discontinuous innovation.
D)No, this is not a product improvement.

Question 17

Which of the following goes one step further than applied research by converting new technology applications into marketable products?

A)basic research
B)product modification
C)marketing development
D)product development

Question 18

What is a new product?

A)a product that is new to the world
B)a product that is new to the market
C)a product that is new to the producer
D)a product that is new to the producer or seller, or new to the world

Question 19

TechSys is in the process of developing a new cell-phone. They must first aim to link the new-product development process with the objectives of the marketing department, the business unit, and the corporation. What is this process also known as?

A)screening and concept testing
B)establishing the new-product strategy
C)developing a business analysis
D)building a prototype

Question 20

A U.K. based drink called Lucozade was originally targeted toward people who were suffering from a cold as a "pick me up". It has since been sold as an energy drink to those who love to play sports. By essentially selling the same product to a new target segment, Lucozade used which strategy?

A)brainstorming
B)repositioning
C)screening
D)reciprocity

Question 21

Sara Lee, the maker of Ball Park hot dogs, has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program. What is Sara Lee going to use?

A)market profitability analysis
B)market development analysis
C)concept marketing
D)test marketing

Question 22

In which stage of new-product development would the technical feasibility of manufacturing the new product as a prototype be examined?

A)screening
B)development
C)market testing
D)concept testing

Question 23

When selecting a test market city, what should a researcher look for?

A)a city where the demographics and purchasing habits mirror the overall market for the product
B)a city that has media spill over from other cities to increase media alternatives
C)a city that is as large as possible
D)a city that has a large upper class

Question 24

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the three product ideas in terms of their marketability. What is this stage of new-product development called?

A)prototype screening
B)concept testing
C)market testing
D)idea diffusing

Question 25

The same manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas, such as jewellery, wide shoes, and belts. Which research technique did the manufacturer use?

A)a focus group
B)a brainstorming session
C)a product-review committee
D)a venture team

Question 26

Top managers at a company that publishes regional magazines considered making maps, but then decided maps were not within the company's corporate mission. Which stage of the new-product development process did its new-product development process reach?

A)idea generation
B)idea screening
C)business analysis
D)customer testing

Question 27

Rhonda Ausman and her team at a publishing company came up with lots of new ideas around the new cover for a marketing textbook. After these ideas were generated, what is the next thing that Rhonda and her team must do?

A)applied diffusion
B)business analysis
C)test marketing
D)idea screening

Question 28

The maker of Lysol disinfectant tested consumers' reactions to its Lysol Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then "shop" in a mock store filled with real products, including the new cleaning product. What is this an example of?

A)a simulated (laboratory) market test
B)a concept test
C)a use test
D)a juried consumer test

Question 29

Now that the design of a new smart-fridge has been finalized, Igloo must now estimate preliminary demand, cost, sales, and profitability. What stage of the new product development process is this?

A)prototype screening
B)idea generation
C)concept testing
D)business analysis

Question 30

Many years ago, Athens, Greece, was viewed as a necessary part of any tour of Europe. Then the city developed an image of a smoggy city choked with traffic. The Greek government realized package tour operators were unimpressed by the proposal to paint the facades of the buildings in Athens. During which stage of its attempt to reposition Athens as a culture-filled destination for conventions would this have occurred?

A)screening and concept testing
B)establishing the new-product strategy
C)exploring opportunities
D)developing a business analysis

Question 31

Before the introduction of a timekeeping spreadsheet for salespeople, a sample of salespeople were able to try a prototype. What is this stage of new-product development called?

A)prototype innovation
B)concept testing
C)market testing
D)idea diffusion

Question 32

A European dairy, which is famous for its rich ice creams, has introduced basil-, tomato-, and oregano-flavoured ice creams. In the process of developing these new flavours, the dairy surveyed world-famous chefs to determine which non-traditional flavours had the greatest level of marketability. This survey would have happened during which stage of the product development process?

A)concept testing
B)brainstorming
C)basic research
D)idea screening

Question 33

Middleton has developed the Flybar 1200, an extreme pogo stick that propels users more than 1.5 metres into the air. A group was assigned the task of estimating preliminary demand for the product, costs (including issues with liability), sales, and future profitability. During which stage of its new-product development process would this have occurred?

A)business analysis
B)concept testing
C)screening
D)test marketing

Question 34

What is the purpose of the screening and concept testing stage of the new-product development process?

A)to eliminate undesirable ideas and predict consumer acceptance
B)to refine the promotion campaign to be used with the new product
C)to determine how long the test market should be run
D)to generate new-product ideas

Question 35

At what stage of the new-product development process are most new-product ideas rejected?

A)test marketing
B)business analysis
C)idea screening
D)idea generation

Question 36

The maker of Skittles candy tested and prepared hundreds of batches of candy for taste-testers, who were employees of the company. The taste-testers were instructed to identify the best formula for mint-flavoured Skittles. What type of test was used?

A)adoption-rate
B)concept
C)laboratory
D)market

Question 37

Noam Finkelstein has recently introduced a limited run of his new book in a suburb of Toronto to determine the reactions of potential readers. What is this also known as?

A)use testing
B)test marketing
C)concept testing
D)laboratory testing

Question 38

An electronics store is currently seeing how Edmontonians react to a retail concept called Studio D, which is targeted to women. Edmonton is the only city in which Studio D stores were introduced. The store will monitor the reactions of customers to the store. What is the store using to determine consumer reaction to a new retailing concept?

A)diffusion analysis
B)dual distribution
C)test marketing
D)laboratory testing

Question 39

Which tests evaluate new-product ideas usually before any prototype has been created?

A)concept tests
B)simulated market tests
C)market tests
D)user tests

Question 40

What is required for the development stage of the new-product development process to work best?

A)simultaneous product development
B)laboratory testing
C)test marketing
D)the new-product paradigm

Question 41

Pam has just purchased her first cell phone. Although cell phones have been available for a long time, cell phones are new to Pam. Which of the following best described Pam?

A)a laggard
B)an innovator
C)part of the late majority
D)a diffusor

Question 42

Among the late majority group, from what does adoption of a product primarily result?

A)word-of-mouth communications
B)print advertising
C)advertising in nontraditional media
D)sales promotions

Question 43

Samsung has test marketed its latest TV and is now ready to begin mass manufacture and distribution. What stage of the new product development process is Samsung in?

A)commercialization
B)product testing
C)market analysis
D)simulated marketing

Question 44

What is the term for the spread of a new idea from its source of invention or creation to its ultimate users or adopters?

A)diffusion
B)circulation
C)transmission
D)dissemination

Question 45

Parris Laboratories has ordered production materials and equipment needed to make its new slow-release chlorine emulsion for swimming pools in its Rossville plant. Which stage of new product development is Parris Laboratories entering?

A)diffusion analysis
B)product testing
C)product prototyping
D)commercialization

Question 46

Haim is passionate about new technology and embraces products relatively early in their life cycle. He is also community oriented, and his friends often check with him before making big purchases. What would Haim be classed as?

A)an early adopter
B)an innovator
C)part of the early majority
D)part of the late majority

Question 47

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The customers' dominant characteristic is deliberateness. In terms of the diffusion process, who are these customers most likely to be?

A)innovators
B)laggards
C)early majority
D)late majority

Question 48

Mandeep felt pressured in to buying a cellphone because most her friends already had one. What would Mandeep be classified as?

A)a staller
B)an early adopters
C)part of the early majority
D)part of the late majority

Question 49

Maeva is eager to try new ideas and products. As a lawyer, Maeva has a high income and is very cosmopolitan. What would she be classified as?

A)an early adopter
B)an innovator
C)part of the early majority
D)part of the late majority

Question 50

Because Laurence did not know companies sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident, he paid almost $4,000 to have his dog's broken hip replaced. Once he discovered such a product existed, how did he perceive the insurance?

A)as a heterogeneous shopping product
B)as a diffusion
C)as a product diversification
D)as an innovation

Question 51

Which of the following statements about product adoption categories is true?

A)Early adopters are rarely opinion leaders.
B)Laggards are the second group of consumers to adopt a new product.
C)There are three categories of consumers who will adopt computer products.
D)The dominant characteristic of members of the late majority is skepticism.

Question 52

Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Hand-Shakers," who are typically low-level managers who do not possess any computer skills but rather allow their assistants to provide all necessary technological knowledge. In terms of the diffusion process, how would "Hand-Shakers" most likely be classified for office technology?

A)laggards
B)early majority
C)late majority
D)late adopters

Question 53

Typical Apple users were shown advertising and other promotional materials for the new Apple iPhone as well as actual handsets. In addition their reactions to the handsets were recorded in an actual Apple store. What is this also known as?

A)adoption-rate
B)concept
C)simulated (laboratory) market
D)consumer test

Question 54

A European dairy, which is famous for its rich ice creams, has introduced basil-, tomato-, fennel-, and oregano-flavoured ice creams. Which of the following product characteristics would most likely influence the market success of these new flavours?

A)compatibility
B)comparability
C)complexity
D)competitive advantage

Question 55

In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are tradition-bound. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. What are they called?

A)generics
B)late majority
C)decliners
D)laggards

Question 56

What is the main goal of the global product development process?

A)to come up with a single standard product or product line suitable for all global markets
B)to develop every product for potential worldwide distribution and adaptation to other countries
C)to come up with new-product ideas in North America and use global markets as test markets
D)to repeat the steps in the process with marketing teams in each and every foreign country targeted

Question 57

Market researchers have determined nine categories of lifestyles for computer users. One of the categories is described as "Mouse Potatoes," who like the Internet for entertainment and can't wait to buy the latest in "techno-entertainment." In terms of the diffusion process, how would "Mouse Potatoes" be classified?

A)as early majority
B)as late majority
C)as late adopters
D)as innovators

Question 58

What is the final stage in the new-product development process?

A)product development
B)market testing
C)commercialization
D)simulated marketing

Question 59

In the long run, products fail because of a poor match between which of the following?

A)advertising and personal selling
B)limited resources and unlimited consumer wants
C)product characteristics and consumer needs
D)prices and consumer demand

Question 60

Surj has just completed his trial of the Microsoft suite of programs. He is now happy to fully purchase the product. What would he be classified as?

A)a laggard
B)an adopter
C)an innovator
D)a diffuser

Question 61

What can the marketers of consumer products expect to find when they study and apply the product life cycle theory to their products?

A)All products go through every stage of the life cycle.
B)Changes in a product can change its life cycle.
C)All products except those considered faddish go through every stage.
D)A product may skip a stage in the cycle.

Question 62

During which stage of the product life cycle do healthy profits usually begin to appear?

A)growth
B)introductory
C)maturity
D)commercialization

Question 63

Scenario 11-1
In 2006, Coca-Cola North American debuted Gold Peak iced tea. According to Ray Crockett, spokesperson for Coke, "In looking at the ready-to-drink tea market, we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality product that brings back that classic taste."
Refer to the scenario. The tea has high marketing costs as well as high production costs. Promotions for the product are aimed at informing consumers that this premium product tastes like it's home-brewed. In which stage of the product life cycle is Gold Peak iced tea?

A)introductory
B)growth
C)maturity
D)decline

Question 64

What is normally the longest stage of the product life cycle?

A)maturity
B)growth
C)introductory
D)decline

Question 65

Which of the following products has the lowest level of trialability?

A)low-fat ice cream
B)surgically implanted hearing aids
C)organic pet food
D)a new air freshener

Question 66

What occurs during the maturity stage of the product life cycle?

A)Prices are increased.
B)Promotion to the dealer is often intensified.
C)More shelf space is made available to the product.
D)Profit margins are at their peak.

Question 67

A new medication to eliminate fungal growths on people's toenails may have a slow rate of adoption because it is not a highly visible item in homes. Also, this item is not often discussed among friends and coworkers. This is an example of how which characteristic can work to slow the adoption process?

A)relative advantage
B)observability
C)trialability
D)complexity

Question 68

Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently introduced Oakley's Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses?

A)comparability
B)complexity
C)tangibility
D)competitive advantage

Question 69

Scenario 11-1
In 2006, Coca-Cola North American debuted Gold Peak iced tea. According to Ray Crockett, spokesperson for Coke, "In looking at the ready-to-drink tea market, we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make. Gold Peak is a quality product that brings back that classic taste."
Refer to the scenario. Ray Crockett, spokesperson for Coke, said, "We're going to do a lot of sampling with this product because we believe that if people try it, they're going to love it and stick with it." In other words, what will its adoption rate rely on?

A)compatibility
B)comparability
C)complexity
D)trialability

Question 70

There are two types of communication to aid the diffusion process. What are they?

A)traditional and digital
B)opinions and slanders
C)word of mouth and from the marketers
D)social media and other digital platforms

Question 71

Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun. This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic?

A)complexity
B)trialability
C)observability
D)compatibility

Question 72

What are patio furniture, lighting fixtures, microwave ovens, canned corn, and athletic shoes all examples of?

A)line-extendable categories
B)market groupings
C)brand groupings
D)product categories

Question 73

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants. In a meeting with Canesta corporate officials, you (a leading marketing consultant) are asked if the new virtual keyboard will be quickly accepted by consumers. You tell them this depends on many product characteristics. Which of the following is NOT one of those characteristics?

A)how similar it is to existing keyboards in use and fulfilling needs
B)the degree of difficulty involved in understanding and using it
C)the "buy Canadian" movement
D)how much of a relative advantage it has over currently used keyboards

Question 74

What typically happens at the beginning of the maturity stage of the product life cycle?

A)Sales become flat and do not change.
B)Sales increase at an increasing rate.
C)Sales decrease at an increasing change.
D)Sales increase at a decreasing rate.

Question 75

Many product failures such as Cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-sausages did not succeed because they did not conform to which product characteristic?

A)complexity
B)trialability
C)observability
D)compatibility

Question 76

What is the length of the introductory stage of the product life cycle for a new product largely determined by?

A)the product's size
B)the product's marketing mix
C)the product's characteristics,
D)the size of the market

Question 77

Which of the following is NOT a characteristic that would slow the rate of adoption of new products?

A)product complexity
B)lack of opportunity to try out the product
C)high compatibility with existing products
D)lack of relative advantage over substitute products

Question 78

During the growth stage of the product life cycle which of the following happens?

A)Demand for the product is limited to high-income consumers.
B)Prices increase due to economies of scale.
C)There is decreased direct competition.
D)Profits peak.

Question 79

B.F. Goodrich has been manufacturing and marketing automotive tires for over 100 years. It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear, Dunlap, and other tire manufacturers. From this information, in which stage of their product life cycle are tires?

A)maturity
B)growth
C)saturation
D)decline

Question 80

What should be the advertising strategy during the growth stage of the product life cycle?

A)to aim at the needs of innovators
B)to make the mass market aware of brand benefits
C)to use advertising as a vehicle for introducing the product category benefits
D)to emphasize the product's low price to help reduce inventories