Question 1

Business analysis for a new product begins with assessing how the new product will fit the firm's total product mix.

Accepted Answer

Business analysis for a new product begins with assessing how the new product will fit the firm's total product mix, which includes evaluating the product's position in the market, target customers, competition, pricing, and distribution strategies.

Question 2

What are the phases involved in the development of a new product?

Accepted Answer

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Question 3

Idea generation is also known as the ideation phase of product development.

Accepted Answer

Idea generation is the process of generating new ideas and concepts, which is a crucial part of the ideation phase of product development.

Question 4

Burger King developed a new french fry to compete with McDonald's fry-considered the world's best. Burger King's specifications included that the crunch would last for seven or more chews. The product failed because consumers did not like the fry as much as McDonald's fry. It is most likely that Burger King did not ________ the idea for both technical and commercial value.
A) patent
B) advertise
C) screen
D) promote
E) style

Accepted Answer

Burger King did not screen the idea for both technical and commercial value which means they did not properly evaluate the potential success of the new french fry before launching it in the market. If they had screened the idea, they may have realized that their specifications for the fry were not aligned with what consumers actually want in a french fry. Patenting, advertising, promoting, and styling would not have necessarily addressed the root cause of the product's failure.

Question 5

Diffusion refers to ________.
A) how promotion is used to support products throughout their product life cycle
B) the second stage of the market segmentation process
C) the methodology for evaluating new product ideas
D) how the use of a product spreads throughout a population
E) the selection of opinion leaders to encourage product acceptance

Accepted Answer

Diffusion refers to how the use of a product spreads throughout a population, including the rate and pattern of adoption.

Question 6

In the product concept development and screening phase of new product development, successes generally occur much more frequently than failures.

Accepted Answer

This statement is incorrect. Failures can occur frequently during the product concept development and screening phase as ideas are tested and evaluated. Successes are the result of careful selection and development of viable product concepts.

Question 7

Change happens quickly when a process reaches the moment of critical mass, which is called the ________ point.
A) adoption
B) diffusion
C) innovation
D) trial
E) tipping

Accepted Answer

The concept described in the statement refers to the tipping point, which is the moment when a process reaches critical mass and change happens quickly. The other options are related to the diffusion and adoption of innovations, but do not specifically refer to the moment of critical mass that accelerates change.

Question 8

The first step in the adoption process is ________.
A) product evaluation
B) awareness
C) problem recognition
D) evaluation
E) interest

Accepted Answer

The first step in the adoption process is awareness, where potential customers become aware of the existence and potential benefits of a new product or service. Only after becoming aware can they move on to the other stages, such as interest, evaluation, and product adoption. Problem recognition and product evaluation are not necessarily the initial steps in the adoption process, as they depend on the consumer's perception of their needs and interests.

Question 9

What are prototypes? During which phase of the new-product-development process would a company develop prototypes?

Accepted Answer

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Question 10

A fast-food chain wanted to add a new product to its breakfast menu. The company considered a pancake shaped like a muffin. The problem was determining how a customer would add syrup to the pancake while eating and driving. Fortunately, one of the company's suppliers developed a crystallized syrup that seeps through the pancake once it is heated. Explain the phase of new-product development that occurred during this process with the chain and its supplier. Support your rationale.

Accepted Answer

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Question 11

Commercialization comes in the middle of the new-product development process.

Accepted Answer

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Question 12

Marketers are primarily striving to generate customer ________ when they use a teaser advertisement created to give prospective customers just enough information about a new product to make them curious.
A) confirmation
B) interest
C) evaluation
D) adoption
E) impulse purchasing

Accepted Answer

Marketers use teaser advertisements to generate customer interest, teasing with just enough information to make prospective customers curious about a new product or service. Confirmation, evaluation, and adoption come later in the purchase decision process, while impulse purchasing may occur as a result of the customer's curiosity and interest.

Question 13

Procter & Gamble introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Foods 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 Procter & Gamble could.
A) commercialization
B) business analysis
C) idea generation
D) screening
E) product concept development

Accepted Answer

General Foods was able to enter the commercialization stage before Procter & Gamble could due to its quick introduction of Betty Crocker ready-to-spread frosting.

Question 14

Test marketing is an inexpensive way to predict whether a new product will be a success.

Accepted Answer

Test marketing involves creating a prototype, developing a marketing strategy, launching the product in a limited area, and monitoring its performance, which can be costly and time-consuming.

Question 15

What must marketers do during the marketing strategy development phase of the new-product-development process?

Accepted Answer

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Question 16

Simulated test marketing can help a company determine where in a store a product should be placed to maximize sales.

Accepted Answer

Simulated test marketing involves creating a mock sales environment to obtain information about consumer behavior and preferences. This information can then be used to optimize various aspects of a product's marketing mix, including product placement in stores. Therefore, simulated test marketing can help a company determine where in a store a product should be placed to maximize sales.

Question 17

________ is the process by which a consumer or business customer begins to buy and use a new good, service, or idea.
A) Commercialization
B) Product testing
C) Product adoption
D) Diffusion
E) Positioning

Accepted Answer

Product adoption refers to the process by which a consumer or business customer begins to buy and use a new good, service, or idea. Commercialization refers to the process of introducing a product to the market. Product testing is the process of evaluating a product's performance or quality. Diffusion refers to the spread of a product or innovation through a population. Positioning refers to the way a product is positioned in the minds of consumers relative to competing products.

Question 18

Marketers may conduct a massive advertising campaign, called a ________, to educate consumers about a new product.
A) media blitz
B) diffusion network
C) simulated market test
D) test market
E) tipping point

Accepted Answer

A media blitz is a large-scale advertising campaign that aims to create a high level of awareness and interest in a product, service, or event. It typically involves multiple forms of media, such as television, print, online, and outdoor advertising, as well as public relations activities and promotional events. A media blitz is often used to introduce a new product or to support a major marketing initiative.

Question 19

What are the disadvantages and advantages associated with test marketing?

Accepted Answer

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Question 20

When marketers estimate a new product's commercial success, they are interested in predicting whether it is technologically feasible to build the new product.

Accepted Answer

When marketers estimate a new product's commercial success, they are interested in predicting whether it will meet customer needs, be economically viable, and have a competitive advantage. While technological feasibility is important, it is not the only factor considered.

Quiz 8: Product I: Innovation and New Product Development

Business analysis for a new product begins with assessing how the new product will fit the firm's total product mix.

What are the phases involved in the development of a new product?

Idea generation is also known as the ideation phase of product development.

Diffusion refers to ________.

In the product concept development and screening phase of new product development, successes generally occur much more frequently than failures.

Change happens quickly when a process reaches the moment of critical mass, which is called the ________ point.

The first step in the adoption process is ________.