Question 1

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 involves offering a product for sale on a limited basis in a defined area. This allows the company to gather feedback and evaluate the product's performance before a full-scale national launch. Choices A, B, C, and E do not fully describe the purpose or process of test marketing.

Question 2

A slotting fee is a payment that a
A) wholesaler makes to place a new product on a retailer's shelf.
B) manufacturer makes to have a wholesaler distribute a new product to retailers.
C) manufacturer makes to place a new product on a retailer's shelf.
D) manufacturer makes to a wholesaler as compensation for warehousing inventory.
E) manufacturer makes to a retailer as compensation for sales not made while the product was on the shelf.

Accepted Answer

A slotting fee is a payment made by a manufacturer to a retailer in order to place a new product on their shelf. This fee helps to cover the cost of carrying and promoting the new product.

Question 3

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) involve showing consumers the product or product concept and asking them about usage, reasons for purchase, and important product attributes. The other options listed do not accurately describe the purpose of STMs.

Question 4

During which stage of the new-product process are audiences allowed to preview actual movies like Deadpool or The Jungle Book (a sneak preview)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

Market testing involves exposing the actual product to prospective consumers under realistic purchase conditions to see if they will buy. Sneak previews of movies are a form of market testing to gather audience reactions and make necessary changes before the official release.

Question 5

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

The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as commercialization. This stage involves finalizing product development, testing, and marketing plans, and introducing the product to the market.

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 stage in the new-product process when the product is positioned and launched in full-scale production and sales. This is where the focus shifts from development to marketing and production, with the goal of generating sales and profits.

Question 7

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 is a process of placing a product or service in the market to vanquish if it has the ability to appeal to customers. It helps the companies attain a accurate measurement of their products' potential success in various markets at minimum cost. In test marketing, companies sell their products under realistic circumstances to the customers to investigate their purchasing behavior. Therefore, option C is the most precise statement about test marketing.

Question 8

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 launch of a new product in full-scale production and sales. It is the stage in the new-product process where the product is positioned and introduced to the market.

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 is done to assess the viability of a product and determine if there is sufficient demand for it.

Question 10

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 candidate for full-scale market testing as it is a new product from a well-known brand in the beverage industry. It also has potential to appeal to a wide range of customers and can be easily marketed through Starbucks' existing marketing channels.

Question 11

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.At that time,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

Breyer's new product was being tested on a limited scale to determine consumer reactions, which is an indication of market testing stage in the new-product process.

Question 12

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 full launch of the product, including its production, marketing, and distribution. This stage typically involves heavy financial investments, including advertising and promotional campaigns, distribution costs, and facility and equipment costs. Therefore, it is often the most expensive stage in the new-product process.

Question 13

A failure fee is a penalty payment
A) a retailer assesses a manufacturer to handle defective new products that customers returned.
B) a wholesaler makes to a retailer as compensation for sales not made while the product was on the shelf.
C) a retailer makes to a manufacturer for stockouts-not keeping point-of-purchase displays continuously stocked with the new product.
D) a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers.
E) a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product that fails to sell.

Accepted Answer

A failure fee is a penalty payment made by a manufacturer to compensate a retailer for devoting valuable shelf space to a product that fails to sell.

Question 14

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country.This payment is an example of a
A) product placement fee.
B) bribe.
C) slotting fee.
D) product support fee.
E) shelf space allowance.

Accepted Answer

The payment required by Kroger for Birds Eye to place its Vegetable Quinoa Pilaf in the middle shelves of the frozen vegetable freezer section is an example of a slotting fee. Slotting fees are payments made by manufacturers to retailers for the right to have their products placed on their shelves, particularly in prominent or high-traffic areas.

Question 15

Marketers pay slotting fees to grocers in payment for space-or slots-on their retail shelves.Such slotting fees significantly increase the cost of which stage of the new-product process?
A) business analysis
B) market testing
C) screening and evaluation
D) commercialization
E) idea generation

Accepted Answer

Slotting fees are paid during the commercialization stage of the new-product process when the product is ready to be placed on retail shelves. Therefore, the cost of the commercialization stage is significantly increased by slotting fees.

Question 16

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 17

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

The technique that somewhat replicates a full-scale test market is a simulated test market. This technique allows companies to save time and money by testing their product or service in a controlled environment before launching it in the real market.

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 described in the scenario is market testing, where the new product is introduced to a limited market to observe its performance and gather consumer feedback.

Question 19

If a new grocery product does not achieve a predetermined sales target,some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate.What is this type of payment called?
A) an opportunity cost charge
B) lost sales fee
C) shelf space allowance
D) product displacement fee
E) a failure fee

Accepted Answer

Key term definition-failure fee.

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 is the stage of the new-product process that involves exposing the product to potential consumers under realistic purchase conditions to determine if they are willing to buy it. This step helps to reduce the risk of launching an unsuccessful product and allows for adjustments to be made before commercialization. Therefore, option B is the correct answer.

Quiz 9: Developing New Products and Services

Test marketing involves offering a product for sale

A slotting fee is a payment that a

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

During which stage of the new-product process are audiences allowed to preview actual movies like Deadpool or The Jungle Book (a sneak preview) so that changes might be made before they are released to the general public?

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

Commercialization is the stage in the new-product process

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

Commercialization refers to

Market testing refers to

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

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.At that time,Breyer's new product was in the __________ stage of the new-product process.

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

A failure fee is a penalty payment

Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets around the country.This payment is an example of a

Marketers pay slotting fees to grocers in payment for space-or slots-on their retail shelves.Such slotting fees significantly increase the cost of which stage of the new-product process?

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?

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

If a new grocery product does not achieve a predetermined sales target,some retailers require a penalty payment by the manufacturer to compensate them for sales that its valuable shelf space was unable to generate.What is this type of payment called?

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