Question 1

Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

Accepted Answer

With increasing globalization and competition, multinational firms need to think about new-product development globally to stay competitive and reach a wider market.

Question 2

A firm's new-product strategy links the new-product development process with the objectives of the marketing departments,the business unit,and the corporation.

Accepted Answer

A firm's new-product strategy should align with the overall goals and objectives of the marketing department, business unit, and corporation. This ensures that new products will be developed and launched in a way that supports the overall strategy and direction of the company.

Question 3

Central Bark is a dog day care center.When you check your dog into a Central Bark you know your pooch will be pampered.Since kennels have been boarding dogs for years,the dog day care is not really a new product.

Accepted Answer

There are many types of new product ranging from new-to-the-world products to low-price products.

Question 4

Adaptation is the process by which the adoption of an innovation spreads.

Accepted Answer

This process is referred to as diffusion.

Question 5

The first filter in the product development process is called screening.

Accepted Answer

Screening is the first filter in the product development process where the ideas are evaluated to determine their feasibility and potential for success.

Question 6

One benefit of test marketing is that the marketing activity is shielded from competitors.

Accepted Answer

Test marketing may result in a serious problem if a firm's competitors find out about the new product before it has been fully introduced.

Question 7

Martina loves her new Kindle and has tweeted to her followers several times about how great the product is.This is an example of communication directly from the marketer to potential adopters.

Accepted Answer

This is an example of word-of-mouth communication among consumers.

Question 8

The decision to market a product is called commercialization.

Accepted Answer

This is true. Commercialization is the process of introducing a new product into the market and promoting it to potential customers.

Question 9

The Internet offers a fast,cost-effective way to conduct test marketing.

Accepted Answer

The Internet allows for easy and quick test marketing through tools like online surveys, social media listening, and website analytics at a relatively low cost compared to traditional methods like focus groups and in-person surveys.

Question 10

The two techniques considered most useful for generating new-product ideas are customer-generation and competitive imitation.

Accepted Answer

The two techniques considered most useful for generating new-product ideas are brainstorming and focus group exercises.

Question 11

Seven employees from a company are trying to come up with ideas for new-product development.The employees are all in a room together,shouting out potential ideas.The ideas are written down and evaluated as they are generated.This is an example of brainstorming.

Accepted Answer

Brainstorming does not involve evaluation of the ideas as they are generated; criticism of any kind is avoided.

Question 12

Concept tests are considered fairly good predictors of success for line extensions and for products that do not require major changes in consumer behavior.

Accepted Answer

Concept tests are useful in predicting success for line extensions as well as products that do not require significant changes in consumer behavior, because they give an early indication of how potential customers will respond to a new product idea or concept. However, they may be less reliable for entirely new product categories or for products that require significant changes in consumer behavior, as they may not accurately reflect how consumers will actually use the product in real life.

Question 13

The development of Coke Zero by Coca Cola would not be considered a new product since the company was already making soft drinks.It would simply be called a line extension.

Accepted Answer

Line extensions are considered to be a type of new product.Coke Zero is an example of an addition to an existing product line.

Question 14

A test market is one example of a focus group test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

Accepted Answer

A test market is not a focus group.

Question 15

Without the Internet,it would be impossible to conduct simultaneous product development from different parts of the world.

Accepted Answer

The Internet allows people to collaborate and communicate in real-time, which is essential for conducting simultaneous product development from different parts of the world. Without the Internet, the process would be much slower and more difficult.

Question 16

A product must be a discontinuous innovation to be considered a "new" product.

Accepted Answer

There are six categories of new products,only one of which is new-to-the-world discontinuous innovative products.

Question 17

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

Accepted Answer

The statement mentions that Andersen Electronics is analyzing costs and revenues for a new amusement park video game, which falls under the category of new-product business analysis.

Question 18

It is considered inefficient to use concept tests during the idea screening stage of the new-product development process.

Accepted Answer

During the idea screening stage of the new-product development process,it is appropriate to use concept tests.

Question 19

Very few firms follow a formal new-product development process.

Accepted Answer

Most companies follow a formal new-product development process.

Question 20

For a firm that adheres to the product concept,the logical place to start generating new-product ideas is with the customers of the firm.

Accepted Answer

Firms adhering the marketing concept-not the product content-logically start generating new-product ideas from customers.

Quiz 21: Developing and Managing Products