Question 1

If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and to assess the effectiveness of advertising and other promotion tactics, what type of test market is this?
A)laboratory test market
B)concept test market
C)simulated test market
D)controlled test market
E)standard test market

Accepted Answer

A controlled test market involves contracting the entire test program to an outside service,such as IRI.IRI pays retailers for shelf space and,therefore,can guarantee a specified percentage of the test product's potential distribution volume.Its BehaviorScan service uses five demographically representative cities to track sales made to a panel of households.In some cases the effectiveness of different TV commercials and other direct-to-consumer promotions can be measured.

Question 2

If you watch much television, you have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage. In the new-product development process, this safety test would occur during the __________ stage.
A)development
B)market testing
C)idea generation
D)screening and evaluation
E)business analysis

Accepted Answer

The development stage involves creating a prototype of the product and testing it to ensure it meets design specifications and safety standards, such as conducting crash tests for vehicles.

Question 3

According to the textbook, which of the following firms is in the development stage of the new-product development process for a driverless car?
A)Honda
B)Apple
C)Google
D)Ford
E)General Motors

Accepted Answer

According to the textbook, Google is one of the companies that are considered to be in the development stage of the new-product development process for a driverless car.

Question 4

New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market. Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element?
A)market testing
B)idea generation
C)screening and evaluation
D)development
E)business analysis

Accepted Answer

Manufacturing issues become most important during the development stage of the new-product process, as the product is being physically created and issues regarding production and assembly must be addressed.

Question 5

Test marketing involves offering a product for sale
A)to a random sample of people in the top 10 U.S. cities.
B)in as broad a geographic region as possible.
C)to consumers that are representative of the target market.
D)on a limited basis in a defined area.
E)only on certain days of the week and hours of the day.

Accepted Answer

Test marketing typically involves offering a product on a limited basis in a defined area. This allows the company to test the product and gather feedback from consumers, without risking a full-scale launch that may fail. The defined area can be chosen to be representative of the target market or a specific demographic group, depending on the goals of the test.

Question 6

Commercialization is the stage in the new-product process
A)at which the product is positioned and launched in full-scale production and sales.
B)during which the firm performs its final evaluations of the new product.
C)when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard.
D)when advertising campaigns are evaluated using Starch scores to identify brand awareness.
E)at which the product generates the greatest sales and profits.

Accepted Answer

Commercialization is the final stage in the new-product process, which involves positioning and launching the product in full-scale production and sales. It is the point at which the product is made available to consumers and the firm must implement marketing strategies to support sales growth. Therefore, option A is the correct choice.

Question 7

The most expensive stage in the new-product process for most products and services is
A)commercialization.
B)screening and evaluation.
C)business analysis.
D)development.
E)market testing.

Accepted Answer

Commercialization involves the actual launch and introduction of the new product into the market. This stage requires significant investments in advertising, promotion, distribution, and other related expenses, which make it the most expensive stage in the new-product process for most products and services.

Question 8

To save time and money, companies often turn to __________, a technique that somewhat replicates a full-scale test market.
A)partial rollouts
B)screening and evaluation
C)virtual reality testing
D)time-to-market measures
E)simulated test markets

Accepted Answer

Simulated test markets replicate a full-scale test market by simulating product usage and consumer decision making in a controlled environment. This technique can save companies time and money compared to traditional test markets.

Question 9

Market testing refers to
A)exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
B)making sales and profit projections on prototype products to make go-no-go decisions.
C)conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best.
D)independently run comparison tests with similar products currently in the marketplace to determine which one performs best.
E)conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned.

Accepted Answer

Market testing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. This allows companies to gather data on consumer preferences, interest, and behavior before launching a product to the market.

Question 10

The initial target market for X-1 products consisted of
A)seniors who want easy-to-use TV remotes with large buttons.
B)athletes who want waterproof, sweatproof, and weatherproof audio equipment.
C)audiophiles who want HD Sirius/XM Satellite radio receivers in their homes.
D)consumers who want an inexpensive MP3 player like the old Sony Walkman.
E)smartphone users who want a "plug-in" device that lets them listen to AM radio on their smartphone.

Accepted Answer

The passage states that the initial target market for X-1 products consisted of athletes who want waterproof, sweatproof, and weatherproof audio equipment.

Question 11

The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as
A)marketing program execution.
B)disbursement.
C)launch.
D)commercialization.
E)final distribution.

Accepted Answer

Commercialization is the stage of the new-product process where the new product is positioned and launched into full-scale production and sales. This includes finalizing marketing plans, production processes, distribution channels, and all other aspects of bringing the product to market.

Question 12

Simulated test markets (STMs) are often run in shopping malls where consumers are
A)asked how much a person is willing to pay for an unfamiliar item.
B)asked whether they saw the firm's advertising campaign.
C)questioned about how often they are likely to shop in that particular location.
D)asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product.
E)shown the product or the product concept and are asked about usage, reasons for purchase, and important product attributes.

Accepted Answer

Simulated test markets (STMs) are used to gather information on consumer behavior towards a new product, and the best way to do this is by showing the product or product concept to potential consumers and asking questions about usage, reasons for purchase, and important product attributes. This is done in a shopping mall setting to simulate a real-world environment. Choices A, B, C, and D are not directly related to the purpose of an STM.

Question 13

Commercialization refers to
A)the point at which a new product has diffused throughout the marketplace.
B)the introduction of an offering to sequential geographic areas of the United States.
C)exposing actual products to prospective consumers under realistic purchase conditions.
D)the stage of the new-product process that positions and launches a new product in full-scale production and sales.
E)the point where new-product concepts are transformed into prototypes.

Accepted Answer

Commercialization refers to the stage in the new-product process where the product is launched in full-scale production and sales. This involves positioning the product in the market, developing a marketing strategy, and exposing the product to potential consumers under realistic purchase conditions.

Question 14

Which of the products listed below would be the best candidate for full-scale market testing?
A)totally free checking account from Bank One
B)household frequent flyer program from Delta Airlines
C)mid-priced luxury sedan made in America by Mazda
D)new iced coffee beverage from Starbucks
E)slimmer iMac computer

Accepted Answer

A new iced coffee beverage from Starbucks would be the best choice for full-scale market testing because it is a new product in a popular and growing market, and Starbucks already has a strong brand presence and customer base to draw from. Additionally, the beverage market is dynamic and responsive to changing tastes, making it a good area for innovation and experimentation.

Question 15

Which of the following statements about test marketing is most accurate?
A)Test marketing is especially useful for new services.
B)Expensive consumer products must be test marketed in as many locations as possible.
C)Test marketing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
D)Test marketing is essential for new, expensive industrial products such as jet engines.
E)Standard test markets are the least expensive and fastest type.

Accepted Answer

Test marketing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. It is not only useful for new services, but also for other types of products. The number of locations and type of test market can vary depending on the product and marketing goals. Standard test markets are not necessarily the least expensive and fastest type as there are different types of test markets available.

Question 16

During which stage of the new-product process are audiences allowed to preview actual movies (a sneak preview) <including examples dates the question> so that changes might be made before they are released to the general public?
A)market testing
B)business analysis
C)commercialization
D)screening and evaluation
E)concept testing

Accepted Answer

During the market testing stage, audiences are allowed to preview actual movies in sneak previews to gather feedback and make necessary changes before the official release.

Question 17

X-1 uses all of the following sources to generate new-product ideas except
A)co-workers.
B)Team X-1.
C)employees.
D)retail buyers.
E)R&D lab IDEO.

Accepted Answer

IDEO is not a source used by X-1 to generate new-product ideas.

Question 18

Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line. A friend suggested combining spices from India with tea. In the __________ stage of the new-product process, the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well.
A)idea generation
B)screening and evaluation
C)business analysis
D)market testing
E)commercialization

Accepted Answer

The stage mentioned in the scenario is market testing, where the new product idea is introduced to a small market segment to determine acceptance and sales potential.

Question 19

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new-product process.
A)commercialization
B)screening and evaluation
C)business analysis
D)development
E)market testing

Accepted Answer

The new product was being introduced on a limited scale to determine consumer reactions, which indicates that it was in the market testing stage of the new-product process.

Question 20

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as
A)development.
B)market testing.
C)business analysis.
D)commercialization.
E)screening and evaluation.

Accepted Answer

Market testing involves exposing the actual product to potential consumers under realistic purchase conditions to gauge their interest and willingness to buy. This stage helps the company to refine the product and marketing strategy before launching it to the market.

Quiz 10: Developing New Products and Services

If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and to assess the effectiveness of advertising and other promotion tactics, what type of test market is this?

If you watch much television, you have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage. In the new-product development process, this safety test would occur during the __________ stage.

According to the textbook, which of the following firms is in the development stage of the new-product development process for a driverless car?

New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market. Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element?

Test marketing involves offering a product for sale

Commercialization is the stage in the new-product process

The most expensive stage in the new-product process for most products and services is

To save time and money, companies often turn to __________, a technique that somewhat replicates a full-scale test market.

Market testing refers to

The initial target market for X-1 products consisted of

The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as

Simulated test markets (STMs) are often run in shopping malls where consumers are

Commercialization refers to

Which of the products listed below would be the best candidate for full-scale market testing?

Which of the following statements about test marketing is most accurate?

During which stage of the new-product process are audiences allowed to preview actual movies (a sneak preview) <including examples dates the question> so that changes might be made before they are released to the general public?

X-1 uses all of the following sources to generate new-product ideas except

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new-product process.

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as