Question 1

A few years ago, Frito-Lay developed Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay's salty snacks such as Fritos corn chips. But when people think of the brand name Frito-Lay, thirst-quenching is not a benefit that comes to mind and Frito-Lay Lemonade failed. This innovation strategy is known as a

Accepted Answer

Brand extension involves using an established brand name on a new product in a different category. Frito-Lay used its brand name for a lemonade product, which did not align with consumer expectations of the brand.

Question 2

-According to Figure 9-4 above, column B represents a(n)

Accepted Answer

Column B represents a dynamically continuous innovation, which involves changes to existing products that require a moderate level of consumer learning or behavior change.

Question 3

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to

Accepted Answer

The answer of The emphasis of a marketing strategy for...

Question 4

Which of the following products at the time of its introduction was the best example of a discontinuous innovation?

Accepted Answer

The answer of Which of the following products at the...

Question 5

Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new

Accepted Answer

According to the U.S. Federal Trade Commission (FTC), a product can be considered new for up to six months after it enters regular distribution. Since Prego's Pasta Bake Sauce was introduced recently, it would only be considered new for the first six months that it was regularly available at a variety of grocery stores, making option A the best choice.

Question 6

Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of a(n)

Accepted Answer

The answer of Dragon Naturally Speaking, a speech recognition software...

Question 7

Which of the following new products is the best example of the LOWEST level of risk from the company's point of view?

Accepted Answer

Adding a new flavor or variation to an existing product line carries the lowest risk for a company. It involves minimal investment and research and leverages existing distribution channels and customer base.

Question 8

Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally). When it was introduced, Napster would have been an example of a

Accepted Answer

Napster was a new and innovative technology that completely disrupted the music industry and established a new business model for music distribution, making it a discontinuous innovation. It completely transformed the way individuals obtained and shared music, which led to a significant legal battle with the music industry.

Question 9

In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of a

Accepted Answer

The introduction of the automobile in the early 1900s represents a discontinuous innovation as it completely disrupted the existing transportation industry and required significant changes in infrastructure and societal norms. It was a new and unfamiliar technology that required a complete shift in thinking and behavior.

Question 10

-According to Figure 9-4 above, column C represents a

Accepted Answer

Column C represents a continuous innovation because it shows a gradual improvement in the product over time.

Question 11

A product that requires the learning of entirely new consumption patterns among consumers is referred to as a(n)

Accepted Answer

Discontinuous innovation requires consumers to completely change their consumption patterns because the product is entirely new and unfamiliar. This is different from continuous innovation, which is a minor improvement on an existing product, and dynamically continuous innovation, which requires some adjustment in consumption patterns but not a complete overhaul. Evolutionary and progressive innovation are not commonly used terms in describing innovation types.

Question 12

A discontinuous innovation is a product that

Accepted Answer

A discontinuous innovation is a product that requires consumers to learn entirely new patterns of behavior and product usage. It is a major departure from existing products, services, and ways of doing things. It often creates new markets or industries and initially, it may not be appreciated by consumers. Examples include the introduction of the Internet, smartphones, and electric cars.

Question 13

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, Cosmopolitan magazine introduced Cosmopolitan-branded yogurt, and it failed quickly. This innovation strategy is known as a

Accepted Answer

This innovation strategy is known as brand extension, where an established brand name is used to introduce a new product into a different market. However, in this case, the product did not succeed and quickly failed.

Question 14

The Federal Trade Commission (FTC) considers a product new only

Accepted Answer

The answer of The Federal Trade Commission (FTC) considers a...

Question 15

Mr. Clean is an antibacterial cleaning liquid for home use. If Proctor and Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as

Accepted Answer

Adding a new product to an existing product line is considered a product line extension, as it builds upon the existing brand and customer base. It is not a discontinuous innovation, high-risk product mix extension, or subject to FTC regulation in this case. While it may not be a totally new SKU, it is still a new product offering within the Mr. Clean line.

Question 16

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what Cosmopolitan, purveyor of fashion magazines, did when it introduced its own __________, which failed quickly.

Accepted Answer

Cosmopolitan, known for its fashion magazines, introduced its own yogurt, which was a failure because yogurt is a completely different product category from what the brand is known for, leading to a lack of consumer association and acceptance.

Question 17

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the HIGHEST level of risk?

Accepted Answer

A radical invention involves creating a completely new product or technology that does not currently exist in the market. This strategy has the highest level of risk as there is no existing market for the product, and it may not be well received by consumers. It also requires significant investment in research and development, which may not yield successful results.

Question 18

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the LOWEST level of risk?

Accepted Answer

A product line extension involves adding new products to an existing product line, which typically carries the lowest risk as it leverages the existing brand reputation and customer base.

Question 19

-According to Figure 9-4 above, column A represents a(n)

Accepted Answer

Discontinuous innovation represents a radical change from the existing product or service, creating a new market or disrupting an existing one.

Question 20

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

Accepted Answer

This innovation strategy is known as brand extension, which involves using an existing brand name to introduce a new product into a new market. However, as seen in the case of Harley-Davidson perfume, it can be risky and may not always lead to success.

Quiz 9: Developing New Products and Services