Question 1

One of the two organization-related problems of inertia that can cause new-product failures is
A) poor product quality.
B) encountering the "not-invented-here" problem.
C) poor execution of the marketing mix.
D) bad timing.
E) incomplete market and product protocol.

Accepted Answer

The "not-invented-here" problem refers to the reluctance of an organization to adopt an idea or product that has been developed externally. This can lead to inertia and resistance to change, causing new-product failures.

Question 2

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives,which were scientifically designed to kill cold and flu germs when users sneezed,coughed,or blew their noses into them.Unfortunately,people didn't believe the claim and were frightened by the "cidal" in the brand name.The reason for this product failure was
A) an insignificant point of difference.
B) too little market attractiveness.
C) poor execution of the marketing mix.
D) poor product quality.
E) incomplete market and product protocol.

Accepted Answer

The answer of Kimberly-Clark developed its Avert Virucidal tissues that...

Question 3

Before a new product or service is developed,a firm should have a precise protocol,a statement that identifies which of the following?
A) a clear plan for product distribution
B) an analysis of potential competitors' products
C) a precise budget of how much can be spent for the marketing program
D) specific customers' needs, wants, and preferences
E) clear financial goals and expectations

Accepted Answer

A precise protocol should identify specific customers' needs, wants, and preferences in order to develop a new product or service that will meet their demands. While elements such as product distribution, competitor analysis, budget, and financial goals are important considerations in the overall development and marketing process, they are secondary to understanding the target market and their preferences.

Question 4

________ consists of practices and processes that encourage the use of external as well as internal ideas as well as internal and external collaboration when conceiving,producing,and marketing new products and services.
A) Innovation partnership
B) Open innovation
C) Formalized collaboration
D) Piggy-back thinking
E) Stakeholder cooperation

Accepted Answer

The description given in the statement aligns with the concept of open innovation, which emphasizes the inclusion of ideas from both internal and external sources, and encourages collaboration throughout the innovation process. The other answer choices do not fully capture the breadth and focus of this approach.

Question 5

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom.Although a clever idea,it failed because it
A) did not satisfy customer needs on critical factors.
B) had poor product quality.
C) had bad timing.
D) had an incomplete market and product protocol.
E) had too little market attractiveness.

Accepted Answer

The answer of OUT! International's Hey! There's A Monster In...

Question 6

Open innovation helps organizations overcome __________,one of the organizational inertias common in new-product failures.
A) groupthink
B) intelligent failures
C) incomplete protocols
D) NIH barriers
E) bad timing

Accepted Answer

The answer of Open innovation helps organizations overcome __________,one of...

Question 7

One of the eight primary marketing-related reasons for new-product failure is
A) not listening to the voice of the engineer.
B) poor execution of the marketing mix.
C) too much advertising or too aggressive a tone for it.
D) failure to anticipate competitors actions.
E) insufficient funding for rollout.

Accepted Answer

Poor execution of the marketing mix can lead to new-product failure because if the product is not promoted effectively, priced appropriately, distributed well, or presented nicely, it can negatively impact sales and customer perceptions. This can ultimately result in the failure of the product to meet the company's expectations.

Question 8

Ideally,before a new product or service is developed,a firm should have a precise __________,which is a statement defining the target market,specifying customers' needs,and defining what the product or service will be and do to satisfy consumers.
A) formula
B) contract
C) modus operandi
D) protocol
E) methodology

Accepted Answer

The answer of Ideally,before a new product or service is...

Question 9

After gaining widespread attention with the media,as well as popularity with teens,hoverboards made by a variety of manufacturers were found to catch fire or explode.Hoverboard sales suffered greatly as a result of which common reason for product failure?
A) not satisfying customer needs on critical factors.
B) poor product quality.
C) poor execution of the marketing mix.
D) an insignificant point of difference.
E) bad timing.

Accepted Answer

The hoverboards caught fire or exploded due to poor product quality, resulting in a failure of the product and a decrease in sales.

Question 10

New-product or service failures may be reduced or avoided if the company developing them has
A) support from marketer-dominated sources of information.
B) a clear patent approved by the governments within the countries it wants to market.
C) a statement of competitive intent.
D) stakeholder approval in the development process.
E) a precise protocol.

Accepted Answer

The answer of New-product or service failures may be reduced...

Question 11

When General Mills introduced Fingos,a corn chip-sized sweetened cereal flake,it assumed that its customers would normally snack on them dry like a potato chip.Unfortunately,consumers did not switch from munching on popcorn and potato chips.The primary reason for the failure of Fingos was
A) an insignificant point of difference-consumers wouldn't switch from competing snacks.
B) too little market attractiveness-the growth in the snacks market is declining.
C) poor execution of the marketing mix-General Mills did not offer free samples at grocery stores.
D) poor product quality-the chips were not the same size.
E) incomplete market and product protocol-the brand name Fingos did not get consumers excited.

Accepted Answer

The primary reason for the failure of Fingos was an insignificant point of difference. Consumers did not switch from their usual snacks.

Question 12

One of the eight primary marketing-related reasons for new-product failure is
A) not listening to the voice of the engineer.
B) not satisfying customers on critical factors.
C) too much advertising or too aggressive a tone for it.
D) failure to anticipate competitors actions.
E) insufficient funding for rollout.

Accepted Answer

One major reason for new-product failure is not satisfying customers on critical factors. This means that the product may not meet the needs or expectations of the target market, leading to poor sales and negative feedback. It is essential to conduct thorough market research and test the product to ensure it meets customer demands before launching it in the market.

Question 13

Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors had offered their new MP3 players.Zune sales were very disappointing and Microsoft eventually killed the product.According to the textbook,the primary reason for the Zune's failure was due in large part to
A) bad timing.
B) not satisfying customer needs on critical factors.
C) poor product quality.
D) an insignificant point of difference.
E) incomplete market and product protocol.

Accepted Answer

The answer of Microsoft introduced its Zune player a few...

Question 14

Groupthink occurs in a new product planning process when
A) everyone has an opinion but no one is willing to take charge and guide the discussion.
B) everyone has the same idea after using the brainstorming idea-generation technique.
C) there is too much competition among marketing managers, so no one is willing to share his/her ideas.
D) someone suspects a problem with a new product concept but is afraid to speak up because everyone else is so enthusiastic.
E) top management wants the new product to go forward regardless of what anyone else thinks.

Accepted Answer

Groupthink occurs when members of a group are so focused on reaching a consensus and maintaining harmony within the group that they fail to critically evaluate ideas or consider alternatives. In the new product planning process, this can happen when someone suspects a problem with a new product concept but is afraid to speak up because everyone else is so enthusiastic. This can lead to the group making poor decisions or overlooking potential issues with the product.

Question 15

A new-product or service protocol is
A) the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product.
B) a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold.
C) maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC).
D) a statement that identifies a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.
E) the raw unwritten ideas to produce a single commercially successful new product.

Accepted Answer

The answer of A new-product or service protocol is
A) the...

Question 16

Less than __________ of new consumer packaged goods (CPG)exceed first-year sales of $50 million-the benchmark of a successful CPG launch.
A) 3 percent
B) 10 percent
C) 17 percent
D) 28 percent
E) 35 percent

Accepted Answer

Less than 3 percent of new consumer packaged goods (CPG) exceed first-year sales of $50 million, according to research by Nielsen.

Question 17

Thirsty Dog! is a zesty beef-flavored,vitamin-enriched,mineral-loaded,lightly carbonated bottled water for your dog.It might have been a great product,but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers.The makers of this product had
A) poor product quality.
B) no economical access to buyers.
C) an insignificant point of difference.
D) incomplete market and product protocol.
E) poor execution of the marketing mix.

Accepted Answer

With thousands of new consumer packaged goods introduced each year,the cost to gain access to retailer shelf space is huge.Because shelf space is judged in terms of sales per square foot,a new product must displace an existing product on the supermarket shelves.Thirsty Dog! failed to generate enough sales to meet its sales per square foot requirements.

Question 18

Using an existing brand name to introduce a product that is new to the company into a totally new,unfamiliar market seems like a good idea.Several years ago,Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly.This innovation strategy is known as a
A) radical invention.
B) product line extension.
C) disruptive innovation.
D) product deletion.
E) brand extension.

Accepted Answer

This innovation strategy is known as brand extension, where an existing brand name is used to introduce a new product into a different market. However, in the case of Harley-Davidson's perfume, it did not succeed in the unfamiliar market, which could be due to a lack of fit between the brand and the product or a poor understanding of the market.

Question 19

Until 1996,U.S.carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan.American car manufacturers could blame their failure to a great degree on
A) an insignificant point of difference.
B) too little market attractiveness.
C) not satisfying customer needs on critical factors.
D) poor product quality.
E) incomplete market and product protocol.

Accepted Answer

American car manufacturers failed to satisfy customer needs on critical factors, such as producing right-hand-drive cars for driving on the left-hand side of the road in Japan. This was a critical factor in the Japanese market and German carmakers were able to succeed by accommodating this need.

Question 20

Open innovation is
A) a clear plan for new product distribution that will ensure access for all potential customers within the first year of release.
B) a formal and comprehensive analysis of competitors' products to discover ideas for product improvements.
C) an unlimited budget that can be spent for the marketing program for a new product.
D) designing a product around specific customers' needs, wants, and preferences.
E) the practices and processes that encourage the use of external and internal ideas and collaboration when conceiving, producing, and marketing new products.

Accepted Answer

Open innovation is a process that involves bringing together internal and external ideas, resources, and collaboration to develop, produce, and market new products. It involves seeking input from a broader range of sources rather than relying solely on internal research and development. This approach can lead to greater creativity, efficiency, and success in product development. Therefore, the best choice is E.

Quiz 9: Developing New Products and Services

One of the two organization-related problems of inertia that can cause new-product failures is

Before a new product or service is developed,a firm should have a precise protocol,a statement that identifies which of the following?

________ consists of practices and processes that encourage the use of external as well as internal ideas as well as internal and external collaboration when conceiving,producing,and marketing new products and services.

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom.Although a clever idea,it failed because it

Open innovation helps organizations overcome __________,one of the organizational inertias common in new-product failures.

One of the eight primary marketing-related reasons for new-product failure is

Ideally,before a new product or service is developed,a firm should have a precise __________,which is a statement defining the target market,specifying customers' needs,and defining what the product or service will be and do to satisfy consumers.

After gaining widespread attention with the media,as well as popularity with teens,hoverboards made by a variety of manufacturers were found to catch fire or explode.Hoverboard sales suffered greatly as a result of which common reason for product failure?

New-product or service failures may be reduced or avoided if the company developing them has

When General Mills introduced Fingos,a corn chip-sized sweetened cereal flake,it assumed that its customers would normally snack on them dry like a potato chip.Unfortunately,consumers did not switch from munching on popcorn and potato chips.The primary reason for the failure of Fingos was

One of the eight primary marketing-related reasons for new-product failure is

Groupthink occurs in a new product planning process when

A new-product or service protocol is

Less than __________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Using an existing brand name to introduce a product that is new to the company into a totally new,unfamiliar market seems like a good idea.Several years ago,Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly.This innovation strategy is known as a

Until 1996,U.S.carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan.American car manufacturers could blame their failure to a great degree on

Open innovation is