Question 1

Which of the following is usually referred to as a full-blown test market?

Accepted Answer

A full-blown test market refers to testing a new product or service in a real market environment with a larger sample size to gather data and insights. Typically, a city or a few cities are chosen to represent the larger target market to test the product in a controlled environment. Therefore, the best choice would be option D, a city or a few cities, as it aligns with the characteristics of a full-blown test market.

Question 2

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 high rate of repeat purchasing indicates that customers are satisfied with the product and are likely to continue purchasing it.

Question 3

Which of the following is an advantage of sales-wave research?

Accepted Answer

The answer of Which of the following is an advantage...

Question 4

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

Accepted Answer

Adaptive conjoint analysis combines two methods: self-explicated importance ratings and pair-wise trade-off tasks. It is a popular method used in market research to determine the perceived value of different features or attributes of a product or service.

Question 5

The trade-off approach may be easier to use when there are/is ________.

Accepted Answer

The trade-off approach is easier to use when there are many variables because it allows the decision-maker to consider the relative importance of each variable and make trade-offs between them.

Question 6

Which of the following products is most likely to undergo alpha and beta testing?

Accepted Answer

The answer of Which of the following products is most...

Question 7

Brown & Smith, Inc. engages in the design, development, making, and retail of designer jewelry in North America. Before approving a new design of jewelry the company draws it on a computer and then produces models to show potential consumers for their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here.

Accepted Answer

The concept testing method used is rapid prototyping, as the company produces models of the jewelry design to show potential consumers for their reactions before finalizing and approving the design.

Question 8

The job of translating target customer requirements into a working prototype is helped by a set of methods referred to as ________.

Accepted Answer

Quality function deployment (QFD) is a set of methods used to translate customer requirements into technical specifications for a product or service. It involves identifying customer needs, prioritizing them, and then designing a product or service to meet those needs. QFD helps ensure that customer requirements are the focus of product design, and can help speed up the development process by eliminating unnecessary features and ensuring that the product meets the needs of the target market.

Question 9

________ contribution lists the changes in income to other company products caused by the introduction of a new product.

Accepted Answer

A supplementary contribution lists the changes in income to other products caused by the introduction of a new product. Dragalong contribution refers to the inclusion of non-participating stockholders in a stock sale. Gross contribution refers to the total revenue generated by a product or service. Cumulative contribution lists the total contribution of a product over a period of time. Net contribution is the contribution after deducting all expenses from the revenue.

Question 10

During ________, the company's technical people observe how customers use the product, a practice that often exposes unanticipated problems of safety and servicing and alerts the company to customer training and servicing requirements.

Accepted Answer

Beta testing involves real customers using the product in their own environment, allowing the company to observe actual usage and identify any unforeseen issues or requirements.

Question 11

A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers. Later it offers the product to the customers at a discounted price and observes that not only more than seventy percent of the customers are purchasing it but the same number are also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count of the number of people purchasing the product repeatedly. Which of the following testing methods is being used here?

Accepted Answer

The company is using sales-wave research, a method where a product is introduced to consumers (often with initial incentives like discounts or free samples), and their repeat purchase behavior is tracked over several iterations to gauge the product's acceptance and likelihood of success in the market.

Question 12

With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers.

Accepted Answer

Conjoint analysis presents respondents with different hypothetical offers that vary levels of attributes, then asks them to rank the different offers. This allows researchers to determine what combination of attribute levels would be most desirable to consumers.

Question 13

The highest loss a project can create is called ________.

Accepted Answer

Maximum investment exposure refers to the largest amount of money that can be lost in a project. This includes both the initial investment as well as any additional costs incurred during the course of the project. Rapid prototyping income, payback income, incremental yearly exposure, and cannibalized income do not directly relate to the potential for loss in a project.

Question 14

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance.

Accepted Answer

Infrequently purchased products often exhibit replacement cycles that are influenced by physical wear or obsolescence due to changes in style, features, and performance. This is because these items are typically more durable and purchased less often, making their replacement more dependent on these factors.

Question 15

Universal Services, Inc. provides communication services to residential and business customers in rural and small urban communities primarily in northern England. The company offers services such as local and long distance voice, data, and Internet and broadband product offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to provide special voice and data packages to its customers. The company designs eight different packs that offer varying voice and data benefits to customers. The company then asks a few of its customers to rank the packs in order to choose two best packs. Which of the following testing methods is being used in the above scenario?

Accepted Answer

Conjoint analysis is being used in this scenario. Conjoint analysis is a market research technique used to determine how people value different attributes (feature, function, benefits) that make up an individual product or service. In this case, the customers are being asked to rank the different bundles/packages that the company is offering based on the value they provide in terms of voice and data benefits. The outcome of the analysis will help the company determine which packages are most attractive to customers and adjust their current offerings accordingly.

Question 16

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

Quality function deployment (QFD) is a methodology that 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. QFD is a tool for designing new products or processes that meet customer needs and expectations. It uses matrices to correlate customer needs with product features and engineering specifications. The result is a prioritized list of features and specifications that can be used by engineers to design products that meet customer needs.

Question 17

In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and ________.

Accepted Answer

The four variables to be estimated in consumer-goods market testing are trial, first repeat, adoption, and purchase frequency. Price sensitivity, usage convenience, and preferential treatment are not among the four variables. Guaranteed response is not a term commonly associated with consumer-goods market testing.

Question 18

To estimate replacement sales, management must research the product's ________, the number of units that fail in year one, two, three, and so on.

Accepted Answer

The survival-age distribution refers to the number of units of the product that are still being used after a certain period of time. By understanding the survival-age distribution, management can estimate the number of units that are likely to fail in each year and therefore estimate replacement sales.

Question 19

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

Accepted Answer

Conjoint analysis is a method used to determine customers' preferences for different product features. It involves creating and presenting different product concepts, each with variations in their attributes, to customers and asking them to rank their preferences. The results of this analysis give insights into which attributes are most important to customers and how they value those attributes, allowing companies to make data-driven decisions about product development and marketing.

Question 20

________ is a customer test that involves placing the product within the firm to see how it performs in different applications.

Accepted Answer

Alpha testing, also known as in-house testing, involves testing a product within the firm to evaluate its functionality, usability, and performance before it is released for beta testing. It is typically carried out by the product development team or a group of internal testers to identify bugs and issues with the product.

Quiz 20: Introducing New Market Offerings