Question 1

Success or failure of a new product is determined primarily by the actions of the company.Making bad decisions by not identifying the value proposition, designing and building a product that fails to meet customer expectations and incorrectly pricing the product are all factors that increase the likelihood of new product failures.

Accepted Answer

The statement is true. The success or failure of a new product is primarily determined by the actions of the company, such as identifying the value proposition, designing and building a product that meets customer expectations, and pricing the product correctly. Making bad decisions in these areas can increase the likelihood of new product failures.

Question 2

The number of products purchased by the same customer is called repeat purchases.This can be important with things like stereos and cell phones because they rely on loyalty for success.

Accepted Answer

Repeat purchases are defined as the number of products purchased by the same customer. This can be important with frequently purchased products such as convenience goods that rely on frequent repeat purchases for success.

Question 3

Brand-new technologies are what people often consider a "new product." An example of this is the group of companies working on harnessing the wave action of the oceans off the Scottish Coast and other rough sea areas.

Accepted Answer

The statement is true. The development of technology to harness wave energy from the oceans is a new type of product in the renewable energy sector.

Question 4

One of the key concerns during the new product introduction process is how long will it take for the product to move through the product life cycle.

Accepted Answer

This statement is true. One of the key concerns during the new product introduction process is how long it will take for the product to move through the various stages of the product life cycle, including introduction, growth, maturity, and decline. Understanding the duration of each stage can help companies better plan their marketing and sales strategies for the new product.

Question 5

Google has followed a new model to test its ideas for new products.It allows consumers to try lots of new products to see which ones stick.Many products are put into the market in this way but only a few survive the process.

Accepted Answer

This is true, as Google often uses a "beta testing" approach to try out new products and only continues with those that show promise and success.

Question 6

develop the product opportunity.

Accepted Answer

The statement is incomplete and does not provide enough context or information to determine its truth value.

Question 7

Large and small companies face the same issues when it comes to developing new products.

Accepted Answer

Large and small companies often face different challenges in product development due to differences in resources, market influence, and organizational structure.

Question 8

When consumers purchase a product for the purpose of making a value decision in the product adoption process, it is called the trial stage.

Accepted Answer

Trial purchase is the focus of a product launch marketing plan, because if you can get consumers to try the product, you can win them over with superior product design, features, and value.

Question 9

If a product is not successful early in a new product launch, management is often unwilling to spend additional dollars as the product becomes more widely distributed.The end result is usually a downward spiral.

Accepted Answer

This statement is true. If a product does not perform well in the early stages of a launch, management may lose confidence in the product and be less willing to invest further resources. As a result, the product may not receive the necessary support to turn things around and may experience a decline in sales and popularity.

Question 10

Google, Yahoo and Microsoft all maintain a dedicated staff to identify and destroy new start-up organizations with great new product ideas.

Accepted Answer

There is no evidence to support this claim. In fact, all three companies have invested in start-ups through various programs and initiatives. While there may be competition between larger companies and start-ups, it is not accurate to say that they have dedicated staff to destroy them.

Question 11

The challenge for the new product development team is to design and build a product the customer wants to buy while hitting the company's success metrics--sales price, revenue, profit margins, unit sales, and cost to build.

Accepted Answer

The statement accurately describes the challenge for new product development teams. They must balance customer wants with the company's financial goals.

Question 12

Products being developed in the new product development process are often given code names until they are ready to go to test market.During test market they still carry the code name until the product is ready to be fully commercialized.

Accepted Answer

The answer of Products being developed in the new product...

Question 13

BMW has used the concept "Ban Boredom" as one of the key benefits of its Mini line.For the people in the Mini's target market, this is an attractive benefit.

Accepted Answer

The concept of "Ban Boredom" is likely to attract the target market of Mini, who value fun and excitement in their driving experience. Therefore, it is a true statement that this is an attractive benefit for the Mini line.

Question 14

Pfizer boasts the largest R & D spending in the industry.It has more than 400 chemical compounds in various stages of research across a number of therapeutic areas.This is done to have an extensive pipeline from which to draw new successful products.

Accepted Answer

Pfizer's R & D spending is the largest in the industry and it has more than 400 chemical compounds in various stages of research across a number of therapeutic areas to have an extensive pipeline.

Question 15

Cisco developed a technology called In-Store Mobility Solution.This technology gave shoppers access to information and allowed shoppers to receive promotions while on the move, create shopping lists, and navigate a store directly from the shopping cart.

Accepted Answer

Cisco did indeed develop the In-Store Mobility Solution, which offered shoppers various features including accessing information, receiving promotions, creating shopping lists, and navigating the store from their shopping cart.

Question 16

Early adopters are opinion leaders who seek out new products but are price sensitive to innovation.

Accepted Answer

Early adopters (13 percent)-product opinion leaders who seek out new products consistent with the personal self-image. This group is not price-sensitive and is willing to pay the price premium for a product. At the same time, early adopters demand a high level of personalized service and product features.

Question 17

Research suggests that consumers prefer environmentally sensitive products, but are unwilling to pay a significant price premium.

Accepted Answer

Several studies conducted on consumer behavior have concluded that while consumers show a preference towards environmentally sensitive products, they are not willing to pay a significant price premium for them. However, they may be willing to pay a slightly higher price for eco-friendly products if they perceive them to be of higher quality or if the environmental benefits are clearly communicated to them.

Question 18

In the product adoption process consumers move through five stages that can be described as awareness, interest, desire, trial and rejection.

Accepted Answer

The correct stages in the product adoption process are awareness, interest, evaluation, trial, and adoption, not rejection.

Question 19

One of the ways that U.S.car manufacturers have beaten the Japanese is with new product development time.The U.S.now beats the Japanese in the time it takes to develop new car models.

Accepted Answer

Historically, Japanese car manufacturers have been known for their efficient and rapid product development processes, often outpacing U.S. manufacturers in this area.

Question 20

When a new product is developed and test marketed, companies often face a critical decision with respect to going to full market introduction.The technique often used by companies is their gut feeling about the success or failure of the new product.

Accepted Answer

Companies typically use data-driven techniques, such as market research, consumer feedback, and financial analysis, rather than relying solely on gut feeling for such critical decisions.

Quiz 12: The Product Experience: New Product Development