Question 1

Which of the following is the goal of the team-based new-product development approach when it uses cross-functional teams that overlap the steps in the process?
A) gain a big competitive edge by getting the right new products to market
B) save time and increase effectiveness
C) increase production efficiency and customer satisfaction
D) speed product distribution to market and reduce costs
E) reduce organizational tension and confusion

Accepted Answer

The goal of the team-based new-product development approach when it uses cross-functional teams that overlap the steps in the process is to save time and increase effectiveness. By having cross-functional teams that overlap steps in the process, communication and collaboration are improved, and potential problems can be identified and addressed earlier, resulting in a more efficient and effective product development process.

Question 2

Under a team-based new-product development approach, ________.
A) a single departmental team works to complete different stages of the process before passing the new product along to the next department and stage
B) the organizational tension and confusion is less than under the sequential approach
C) company departments work closely together in cross-functional teams
D) a bottleneck at one phase can seriously delay an entire project
E) the new product passes from one department to another before finalizing

Accepted Answer

Under a team-based new-product development approach, company departments work closely together in cross-functional teams. This allows for better communication and collaboration, reducing organizational tension and confusion. The new product is developed collaboratively, with each department contributing to different stages of the process simultaneously, rather than sequentially, which can lead to bottlenecks and delays.

Question 3

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?
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

Accepted Answer

Developing a planned market rollout over time is the best choice as it allows the company to carefully manage its resources and scale up production and distribution as demand for the product grows. Retesting the product in additional markets could be useful, but is not the best next step as it would require additional resources and may not provide significantly different results. Liquidating assets or seeking the help of a consultant are not necessary at this stage, and developing a new prototype may not be feasible or necessary if the current product performs well in the test market.

Question 4

Introducing a new product into the market is called ________.
A) test marketing
B) simulation
C) co-marketing
D) commercialization
E) segmentation

Accepted Answer

Commercialization is the process of introducing a new product into the market. Test marketing is a tool used during the development of a product to gauge its potential success, simulation is a model used for testing product performance, co-marketing is a technique used to promote two or more products together, and segmentation is the process of dividing a market into smaller groups for targeted marketing. Therefore, the best answer is D - commercialization.

Question 5

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

Accepted Answer

Dishonesty among participants is not a common disadvantage of test marketing. The other options - expense, time consumption, competitor advantage, and lack of guarantee of product success - are all common criticisms of test marketing.

Question 6

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.
A) timing
B) location
C) organizational structure
D) test marketing
E) product mix

Accepted Answer

The answer of Steelz Inc. has designed a process that...

Question 7

Which of the following statements is true of test marketing?
A) The amount of test marketing needed remains constant for each new product.
B) When the costs of developing and introducing the product are low, the company will have to do significant test marketing.
C) Test marketing is seldom done on products that are risky.
D) Test marketing is seldom done when management is not sure of the product or its marketing program.
E) Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

Accepted Answer

Test marketing can be expensive and time-consuming, and competitors may take advantage of the delay it causes in launching the product. Therefore, companies are careful in deciding whether to conduct test marketing, especially when costs are high or when the product is already risky or uncertain. The amount of test marketing needed can vary depending on the product, its target market, and the company's resources, so it is not constant for every product.

Question 8

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?
A) concept testing process
B) customer value proposition
C) customer-centered new-product development
D) customer lifetime value
E) team-based new-product development

Accepted Answer

Customer-centered new-product development focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. The other options (A, B, D, and E) are related to new product development but do not specifically focus on finding new ways to solve customer problems and create more customer-satisfying experiences like customer-centered new-product development does.

Question 9

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
A) when the new product requires a major investment
B) when management lacks confidence in the new product
C) when management lacks confidence in the marketing strategy
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low

Accepted Answer

When the costs of developing and introducing the product are low, it is less risky for a company to introduce the product without test marketing. Test marketing is typically done to minimize risk and validate the marketing strategy before a full launch of the product. However, if the costs are low, the company may opt to skip test marketing and launch the product directly.

Question 10

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new-product development process. Fantastic Flavors uses a ________ approach.
A) customer-centered new-product development
B) sequential product development
C) team-based new-product development
D) heuristic
E) functional

Accepted Answer

Fantastic Flavors uses a team-based approach where employees from different departments work together in cross-functional groups to save time and money in the new-product development process. This approach enables the company to leverage the expertise and knowledge of employees from different functional areas to bring new products to market quickly and efficiently.

Question 11

________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
A) Team-based product development
B) Simultaneous product development
C) Sequential product development
D) Horizontal integration
E) Vertical integration

Accepted Answer

Sequential product development is the approach where one company department completes its stage of the process before passing it on to the next department and stage. This approach ensures that each stage is completed before moving on to the next, reducing the chances of errors and allowing for more control over the process.

Question 12

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.
A) controlled test market
B) simulated test market
C) standard test market
D) systematic sample
E) accidental sample

Accepted Answer

A controlled test market is a type of test market in which new products and marketing tactics are tested among specifically identified groups of customers and stores. The key feature of a controlled test market is that the testing conditions are closely monitored and controlled, in order to ensure that the results are reliable and representative of the wider market. Other types of test markets, such as simulated test markets and standard test markets, may not involve the same degree of control and may therefore be less reliable or representative. Systematic and accidental samples are unrelated to test markets.

Question 13

According to the text, the search for new-product ideas should most likely be ________.
A) intermittent
B) holistic
C) segmented
D) compartmentalized
E) flexible

Accepted Answer

The answer of According to the text, the search for...

Question 14

Which of the following involves costs that most likely occur during the commercialization stage of new-product development?
A) building or renting a manufacturing facility
B) paying target customers for product feedback
C) determining the product's planned distribution
D) developing a prototype of the product
E) identifying target markets

Accepted Answer

Building or renting a manufacturing facility is a significant cost that typically occurs during the commercialization stage of new-product development. This is because during the commercialization stage, the product is ready for mass production and distribution, which requires a dedicated manufacturing facility. The other options listed - paying target customers for product feedback, determining the product's planned distribution, developing a prototype of the product, and identifying target markets - are costs that typically occur earlier in the new-product development process.

Question 15

Which of the following is a disadvantage of a team-based approach to new-product development?
A) It takes longer for the development of a new product.
B) The development effort is not as effective because of employee inexperience.
C) It decreases the efficiency of the new-product development process.
D) It results in organizational confusion and tension.
E) The process does not work with the shorter life cycles of many of today's products.

Accepted Answer

Team-based approach can result in organizational confusion and tension due to conflicts among team members, unclear roles and responsibilities, and competing priorities. However, it can also improve the effectiveness of the new product development process by bringing together diverse perspectives and expertise from different functional areas of the organization. Option A, E are not necessarily true as team-based approach can increase the speed of new product development by reducing the need for handoffs between departments and improving communication. Option B is not necessarily true as the team may have experienced employees. Option C is not necessarily true as a well-structured team-based approach can increase efficiency.

Question 16

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new-product development process before P&G could.
A) commercialization
B) co-marketing
C) idea generation
D) idea screening
E) simulation

Accepted Answer

The statement mentions that P&G introduced the Duncan Hines ready-to-spread frosting, which implies that it had already gone through the stages of idea generation and idea screening. The fact that General Mills rushed to market their own product, which ended up being more successful, suggests that P&G was still in the process of introducing their product to the market, indicating that they were in the commercialization stage. Therefore, the answer is A) commercialization.

Question 17

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 ________.
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

Accepted Answer

The answer of According to the commercialization stage of the...

Question 18

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.
A) controlled test market
B) simulated test market
C) standard test market
D) focus group
E) survey

Accepted Answer

In a simulated test market, new products and marketing tactics are tested online in a virtual shopping environment, allowing companies to gather data and feedback in a controlled setting before launching to a wider audience. A controlled test market involves testing in a small, specific geographic area, while a standard test market involves a full-scale launch in a limited area to gauge consumer response. Focus groups and surveys collect consumer feedback but do not simulate a shopping environment.

Question 19

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

Accepted Answer

The answer of A company getting ready to launch a...

Question 20

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.
A) how to develop a marketing strategy
B) which market to compete in
C) whether to launch the new product
D) how to compete in the market
E) how long to compete in the market

Accepted Answer

The major purpose of test marketing is to evaluate a product's performance and customer feedback before a full launch. This provides management with the information needed to decide whether to launch the new product or not. Therefore, the correct answer is C, whether to launch the new product.

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

Which of the following is the goal of the team-based new-product development approach when it uses cross-functional teams that overlap the steps in the process?

Under a team-based new-product development approach, ________.

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?

Introducing a new product into the market is called ________.

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

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.

Which of the following statements is true of test marketing?

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new-product development process. Fantastic Flavors uses a ________ approach.

________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

According to the text, the search for new-product ideas should most likely be ________.

Which of the following involves costs that most likely occur during the commercialization stage of new-product development?

Which of the following is a disadvantage of a team-based approach to new-product development?

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 ________.

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

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

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.