chapter 10
The goal in generating new-product ideas is to ask the question ______. "how come" "what if" "how long" "what is"
"what if"
According to the Federal Trade Commission, a company can market a product as ______ for up to six months after it enters regular distribution. 'new' 'revamped' 'repositioned' 'on sale'
'new'
Less than ________ of new consumer package goods exceed first-year sales for $50 million - the benchmark for a successful launch. 1% 3% 9% 21%
3%
standard test market
A company develops a product and then attempts to sell it through normal distribution channels in a number of select cities.
Which statement accurately defines a service? A service is the part of a product that is free of charge. A service is an idea that leads to a product. A service is a nondurable good that satisfies a consumers' needs. A service is an intangible activity or benefit that satisfies consumers' needs.
A service is an intangible activity or benefit that satisfies consumers' needs.
________ is the stage of the new-product development process in which features of the product and a marketing strategy are specified, and financial projections are made. Market testing Business analysis Screening and evaluation Development
Business analysis
Which of the following are desirable characteristics when choosing a test market for a new product? (Check all that apply.) Cable system that is able to deliver different advertising to different homes Areas that are void of any competing products City population that is demographically representative of target market Potential to show early mock-ups or prototypes to potential customers
Cable system that is able to deliver different advertising to different homes City population that is demographically representative of target market
________ is the stage of the new-product process that positions and launches a new product in full-scale production and sales. Development Market testing Business analysis Commercialization
Commercialization
________ products are purchased by the ultimate consumer, whereas ________ products are purchased by organizations to assist them in providing other products for sale. Consumer; business Personal; resale Individual; commercial Shopping; specialty
Consumer; business
________, the process of managing consumers' interactions with the company, can be helpful to consider when organizations are screening new service ideas in the new-product process. Market testing Business process analysis Open innovation Customer experience management
Customer experience management
________ is the stage of the new-product process in which an idea is turned into a prototype. Business analysis Screening and evaluation Market testing Development
Development
For which type of innovation will consumer education be most important, perhaps requiring personal selling to gain product trial? Continuous innovation Discontinuous innovation Stepped innovation Dynamically continuous innovation
Discontinuous innovation
What are the classifications of new products based upon the learning required of the consumer? (Select all that apply) Dynamically continuous innovation Continuous innovation Discontinuous innovation Stepped innovation
Dynamically continuous innovation Continuous innovation Discontinuous innovation
What are the three key questions addressed in concept testing? How does the customer perceive the product? Who would use the product? How many competitive alternatives are there? Can the product be produced profitably? How would the product be used?
How does the customer perceive the product? Who would use the product? How would the product be used?
What statement characterizes new products in the marketplace? The most successful new products are packaged goods that appear in supermarkets. Most new products end up being quite successful. Most new products exceed the first-year sales benchmark. It is rare for a new product to be commercially successful.
It is rare for a new product to be commercially successful.
________ is the stage of the new-product development process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. Business analysis Market testing Screening and evaluation Development
Market testing
In which stage of the new-product process does an organization use a SWOT analysis and develop a product protocol? New-product strategy development Business analysis Screening and evaluation Idea generation
New-product strategy development
________ is the stage of the new-product development process that internally and externally analyzes new-product ideas to eliminate those that warrant no further effort. Development Market testing Screening and evaluation Business analysis
Screening and evaluation
________ are similar to full-scale test markets but with contrived conditions, sometimes set up in shopping mall. Concept tests Simulated test markets Commercialization tests Prototype tests
Simulated test markets
Which scenario best illustrates a new-product suggestion from company employees? One of the company's suppliers suggested the company add a shut-off valve to one of its existing pipe products. Three of the company's sales reps came up with an idea to improve one of the company's products. An independent contractor that installs the company's products suggested a way to change the design to make installation easier. One of the company's top customers shared his new idea to improve the company's top selling item.
Three of the company's sales reps came up with an idea to improve one of the company's products.
controlled test market
a company develops a product and contracts its entire test program to an outside service that can guarantee a specified percentage of the product's potential distribution volume
simulated test market
a company develops a product and runs tests, often in a shopping mall, to get opinions on the product concept, attributes, and usage from qualified participants
In ______, the entire test program is contracted out to an outside service. prototyping commercialization a concept test a controlled test market
a controlled test market
A prototype is ______. a graphical representation or miniature model of a potential new product a realistic test condition for prospective customers to experience a new product a full-scale operating model of a new product a written description of a potential new product used to elicit feedback from potential customers
a full-scale operating model of a new product
A full-scale operating model of a new product is known as ______. a concept test a market test a prototype commercialization
a prototype
Concept tests in the screening and evaluation stage of the new-product process rely on written descriptions, sketches, or mock-ups rather than ________ to solicit feedback from potential consumers. actual products focus groups questionnaire data innovative ideas
actual products
A product mix consists of ______. products sold by all competitors in one category all of the product lines offered by an organization a group of products purchased by a consumer to fulfill complimentary or simultaneous needs a group of an organization's product or service items that are related to one another
all of the product lines offered by an organization
What must the consumer learn about when a new product is a discontinuous innovation? (Select all that apply) an initial awareness of the product the benefits of the product the proper use of the product how the product differs from competitors
an initial awareness of the product the benefits of the product the proper use of the product
What is the most appropriate use of competitors in the development of new-product ideas? assessing the strengths and weaknesses of competitors' products using the same marketing research agency as a competitors taking a job in a competitor's research and development laboratory interviewing scientists in a competitor's research and development laboratory
assessing the strengths and weaknesses of competitors' products
The ________ stage of the new-product development process assesses the total "business fit" of the proposed new product with the company's mission and objectives. new-product strategy development screening and evaluation business analysis idea generation
business analysis
Which type of product is characterized by derived demand? specialty products shopping products business products convenience products
business products
A convenience product is one that the consumer ______. will compare several alternatives before buying only buys when it is convenient for the consumer to do so does not know about or particularly want buys frequently and with little effort
buys frequently and with little effort
Select three stages that are part of the new-product development process. commercialization assessment and review idea generation problem definition product analysis market testing
commercialization idea generation market testing
When Chevy drew inspiration from Tesla to develop its electric vehicle, the Bolt, it was an example of using ______ for new product-ideas. competitive products customers and suppliers employees professional R&D firms
competitive products
For business products, ________ become part of a final product while ________ are used to assist in producing other goods and services. accessories; supplies accessories; specialty products components; industrial products components; support products
components; support products
In ____________ testing, a written new-product idea rather than an actual product is presented to potential consumers to obtain their reactions.
concept
External evaluations in the screening and evaluation stage of the new-product process often involve ________, consisting of preliminary testing of a new-product idea rather than an actual product. concept tests commercialization market testing prototyping
concept tests
What are the two broad product categories, related to the type of user, that are widely used in marketing? consumer products group products personal products government products business products
consumer products business products
When a toothpaste is improved by adding a whitening ingredient, this would be considered a ______ innovation. discontinuous dynamically continuous secondary continuous
continuous
A service that provides __________ can allow a manufacturer to evaluate its distribution plans for a new product by paying for a particular amount of actual shelf space with particular retailers. controlled test marketing commercialization simulated test marketing concept testing
controlled test marketing
Which two are types of tests available to organizations during the market testing stage of the new-product process? controlled test markets concept tests standard test markets switching tests
controlled test markets standard test markets
chewing gum is an example of
convenience product
What type of consumer product is characterized by relatively inexpensive items with widespread availability? specialty products personal products convenience products shopping products
convenience products
The open innovation technique that involves generating insights based on ideas from massive numbers of people is called ______. market testing crowdsourcing feature bloat commercialization
crowdsourcing
When sales of business products result from the sale of consumer products it is referred to as ______. open innovation commercialization derived demand demand generation
derived demand
A company will engage in test marketing in order to ______. determine how much money should be budgeted for the product let consumers examine a prototype in a real-use setting to determine its benefits help engineers determine whether a new product will perform according to its protocol determine whether consumers will actually buy the product
determine whether consumers will actually buy the product
The new-product process stage of screening and evaluation involves analyzing the entire sequence of steps that make up a proposed service. exposing actual products to prospective consumers under realistic purchase conditions. specifying the features of the product and the marketing strategy needed to bring it to market. determining which ideas should be eliminated from further effort.
determining which ideas should be eliminated from further effort.
dynamically continuous innovation
disrupts consumer's normal routine but does not require totally new learning
When manufacturers of bar soap came out with liquid soap this would be considered a ______ innovation. continuous discontinuous secondary dynamically continuous
dynamically continuous
General Mills got the idea for Nature Valley granola bars when a marketing manager saw coworkers bringing granola to work in plastic bags, illustrating the importance of using ________ in the new-product process. suppliers contractors customers employees
employees
The new-product process stage of market testing involves which two items? launching full-scale production for the product ensuring the product meets the standards established by the protocol exposing actual products to prospective consumers using realistic purchase conditions to see if consumers will buy
exposing actual products to prospective consumers using realistic purchase conditions to see if consumers will buy
A desire to keep products seeming new encourages the proliferation of extra features in what is known as ______. open innovation feature inflation feature bloat commercialization
feature bloat
A company that continually adds more features to an existing product to try to appeal to more customers may end up overwhelming customers and create an unintended consequence known as ______. product scrutiny product screening feature burnout feature fatigue
feature fatigue
A company that continually adds more features to an existing product to try to appeal to more customers may end up overwhelming customers and create an unintended consequence known as ______. product scrutiny product screening feature fatigue feature burnout
feature fatigue
A firm that uses crowdsourcing will generate product ideas ______. by asking people in crowded areas like shopping malls or grocery stores from massive amounts of customers or suppliers who respond to a firm's specific question by holding idea forums with all members of its research and development department through hand-picked individuals from various departments in the firm
from massive amounts of customers or suppliers who respond to a firm's specific question
A(n) ________ is a type of product that has tangible attributes that a consumer's five senses can perceive. idea service good concept
good
In marketing, a thought that leads to a product or action is referred to as a(n) ______. service ancillary product slogan idea
idea
The use of open innovation can be useful in the ________ stage of the new-product process because it helps organizations find and execute product concepts externally and overcome the associated not-invented-here barriers. screening and evaluation idea generation business analysis new-product strategy development
idea generation
Concepts for a new invention or for getting people out to vote are examples of ______. slogans ancillary products services ideas
ideas
Which are considered support products for business products? (Select all that apply) industrial services installations raw materials components supplies
industrial services installations supplies
A product ________ is a specific product that has a unique brand, size, or price. mix class line item
item
For ordering and inventory purposes, each product ________ has a separate stock keeping unit (SKU). class item mix line
item
shopping products
items for which the consumer compares several alternatives on criteria such as price, quality, or style
unsought products
items that the consumer does not know about or knows about but does not initially want
speciality products
items that the consumer makes a special effort to search out and buy
Conveience Products
items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort
What occurs during the commercialization stage of the new-product development process? launching full-scale production for a new product finding industrial and government buyers for a new product ensuring a new product meets the standards established by the protocol testing customers using realistic purchase conditions to see if they will buy a new product
launching full-scale production for a new product
Crapola's product ________ includes granola offerings called "Number Two," "Colon-ial Times," and "Kissapoo." line grouping mix market
line
Crapola's product ________ includes granola offerings called "Number Two," "Colon-ial Times," and "Kissapoo." mix market line grouping
line
Ford Motor Company offers the Explorer, Escape and Edge SUVs. Because these automobiles satisfy a class of needs, are distributed through the same outlets, and are sold to the same customer group, they are considered to be a product ______. mix form line source
line
Nike's product ________ include shoes and clothing, whereas the Mayo Clinic's consist of inpatient hospital care and outpatient physician services. markets lines groupings mixes
lines
The new-product process stage of development (stage 5) involves which two items? exposing actual products to prospective consumers under realistic purchase conditions making a prototype of the product specifying the marketing strategy needed to bring a new product to market ensuring the product meets the standards established by the protocol
making a prototype of the product ensuring the product meets the standards established by the protocol
Marketers often look for cities that are viewed as being representative of U.S. consumers in terms of their demographic variables when they conduct ______. concept tests. commercialization tests. prototype tests. market tests.
market tests.
a significant jump in technology
moderate risk
Avoiding "groupthink" in meetings and embracing open innovation can help an organization avoid ______. having to reposition products its successful products going into decline new-product failures customer defections
new-product failures
Insignificant points of difference, incomplete protocols, and bad timing are among the reasons for _______. discontinuous innovation customer defections successful products going into decline new-product failures
new-product failures
In the ________ stage of the new-product process an organization defines the role of a new product in terms of the firm's overall objectives. screening and evaluation idea generation business analysis new-product strategy development
new-product strategy development
A product that is consumed in one or a few uses is known as a(n) ________ good, while one that lasts over many uses is called a(n) ________ good. expendable; nonexpendable unsustainable; sustainable tangible; intangible nondurable; durable
nondurable; durable
A product that is consumed in one or a few uses is known as a(n) ________ good, while one that lasts over many uses is called a(n) ________ good. nondurable; durable unsustainable; sustainable expendable; nonexpendable tangible; intangible
nondurable; durable
Food products and fuel are classified as ________ goods, while appliances and mobile phones are ________ goods. tangible; intangible unsustainable; sustainable nondurable; durable expendable; nonexpendable
nondurable; durable
Apple's use of the professional R&D laboratory IDEO to create the first computer mouse is an example of ________ innovation. open secondary external continuous
open
Developing strategic relationships with outside individuals and organizations in order to create new-product ideas is known as ________ innovation. peripheral secondary open discontinuous
open
Organizations may look to universities, inventors, or smaller nontraditional firms as sources of ________ innovation in the development of new product ideas. peripheral discontinuous open secondary
open
What are common marketing reasons for new products to fail? (Select all that apply) reliance on new technology poor product quality low market attractiveness overcapitalization
poor product quality low market attractiveness
During concept testing, new-product ideas are presented to _______ to obtain their reactions. engineers within the firm representatives of a professional R&D laboratory potential consumers executives within the firm
potential consumers
A ________ is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same group, are distributed through the same outlets, or fall within a given price range. product mix marketing line marketing mix product line
product line
Place the levels of innovation from the least risky to the highest risk. (Note: the innovation with the least amount of risk should be the top item on your list)
product line extension brand extension radical invention
Revlon sells cosmetics, hair care products, and beauty tools. The combination of all the products that Revlon sells is referred to as its ______. product line name brand marketing mix product mix
product mix
A ________ is a pre-development statement that identifies a target market, customer needs, and what the product will be or do. protocol business analysis market test product mission
protocol
discontinuous innovation
requires new learning and consumption patterns by consumers
continuous innovation
requires no new learning by consumers
An organization's __________ and __________ laboratories are a good way to develop ideas for new products
research and development
Organizations may rely on new products coming from its own design group of engineers. These employees make up what department in an organization? production and operations research and development marketing administration
research and development
radical invention
revolutionary new products
An organization may consider principles of customer experience management as it examines its employee commitment and skills in the internal approach of the ________ stage of the new-product process. new-product strategy development screening and evaluation business analysis development
screening and evaluation
In what stage of the new-product development process will the firm's own employees evaluate the technical feasibility of a proposed new-product idea? market testing development screening and evaluation business analysis
screening and evaluation
Among products, _________ are defined as intangible activities or benefits that satisfy consumers' needs.
services
How many steps are in the new-product development process? three five seven nine
seven
Airline tickets are an example of
shopping product
An new dishwasher would be considered which type of consumer product? specialty product shopping product convenience product unsought product
shopping product
Tonya needs to buy a new laptop. She compares models from Apple, Dell, and Hewlett-Packard on criteria such as processor speed, memory, screen size, and price. What type of consumer product does this represent? personal product shopping product specialty product convenience product
shopping product
Tonya needs to buy a new laptop. She compares models from Apple, Dell, and Hewlett-Packard on criteria such as processor speed, memory, screen size, and price. What type of consumer product does this represent? shopping product personal product convenience product specialty product
shopping product
In ________, participants are questioned about a new product, shown advertising about it, and finally given money to make a decision about whether or not to buy it. commercialization tests prototype tests concept tests simulated test markets
simulated test markets
The Federal Trade Commission advises that the term "new" be limited to use with a product up to ______ after it enters regular distribution. six months nine months one year two years
six months
Which are good sources of open innovation? (Select all that apply) smaller nontraditional firms marketing departments board of directors inventors and entrepreneurs universities
smaller nontraditional firms inventors and entrepreneurs universities
A Rolex watch is an example of
speciality product
Richard likes to smoke tobacco from a pipe. However, he is very particular about which pipes he uses. He will only buy pipes made of mahogany and that have an amber or ivory stem, even though these pipes are the most expensive. What type of consumer product does this represent? specialty product convenience product shopping product personal product
specialty product
What type of consumer product will a consumer make a special effort to search out and buy, such as a luxury automobile or designer watch? shopping product personal product specialty product convenience product
specialty product
What type of consumer product will a consumer make a special effort to search out and buy, such as a luxury automobile or designer watch? specialty product personal product convenience product shopping product
specialty product
When Subway introduced a new Southwestern Club sandwich in south Florida before launching it nationwide, it was engaging in ______. standard test marketing concept testing commercialization simulated test marketing
standard test marketing
When a company develops a product and then attempts to sell it through normal distribution channels in a number of test-market cities, it is engaged in ______. simulated test marketing standard test marketing commercialization concept testing
standard test marketing
Buildings, tools, and supplies are ________ products for organizations. disposable specialty industrial support
support
Business products can be classified as which two of the following? commercial products hardware support products software components
support products components
A good is a product that is defined as having ________ attributes. valuable identifiable differentiating tangible
tangible
Offering a product for sale on a limited basis in a defined area is called _____________ marketing.
test
What are common organizational reasons for new products to fail? (Select all that apply) too much dissension in meetings the presence of groupthink in task force meetings not embracing open innovation listening too closely to customers
the presence of groupthink in task force meetings not embracing open innovation
In the screening and evaluation stage of the new-product process, the internal approach consists of a firm's employees evaluating ______. the competitive environment in which the proposed product idea must compete if the target market is a good fit for the proposed product idea if the firm can meet the budgetary requirements of a proposed product idea the technical feasibility of a proposed product idea
the technical feasibility of a proposed product idea
product line extension
threat of cannibalization
funeral services are an example of
unsought product
Concept tests in the screening and evaluation stage of the new-product process are most useful when ______. used for minor modifications of existing products introducing new, highly innovative products familiarity with the product is low the product is ready for commercialization
used for minor modifications of existing products
What should be included in a protocol for new product development? (Select all that apply) what competitors are planning to introduce what the product will be and do specific customer needs, wants, and preferences how much the product will cost a well-defined target market
what the product will be and do specific customer needs, wants, and preferences a well-defined target market