Chapter 9: New Product Development

One marketing expert describes an​ R-W-W ("real,​ win, worth​ doing") new product screening framework that asks three questions. Two of these​ are: Is there really a market for the product and can the firm garner a sustainable advantage in the market. Which of the following is the third question the marketer should​ ask? A. Is it worth​ doing? B. Can we beat the competitors in this​ market? C. Do we have adequate​ resources? D. Is there a​ clear, precise product​ concept? E. Is there a real need and desire for the​ product?

A. Is it worth​ doing?

The PLC concept can describe several different categories of products of interest to marketers. Which one has the fairly traditional PLC shape and is represented by items such as​ tablets, wine​ coolers, and wearable PCs and Internet​ connections? A. Product form B. Product class C. Product brand D. Industry E. Product image

A. Product form

During the​ ________ stage of the product life​ cycle, firms often shift some advertising from simply building awareness toward building stronger brand conviction and purchase behaviors. A. growth B. introduction C. development D. maturity E. decline

A. growth

As a result of growing litigation and increased product liability​ insurance, some companies are now appointing​ ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. product stewards B. customer advocates C. Chief Marketing Officers D. new product development directors E. brand managers

A. product stewards

During which period of the PLC are sales​ zero? A. Introduction B. Product development C. Decline D. Growth E. Maturity

B. Product development

Samsung's "Open​ Innovation" program connects the firm with a broad array of outside collaborators and entrepreneurs to develop new products and technologies. Through the​ program, Samsung creates alliances with top industry and university researchers around the​ world, participates actively in​ industry-wide forums, and seeks out and invests in promising startup companies.​ Samsung's program is an example of the concept of​ ________. A. sequential new product development B. crowdsourcing C. concept testing D. ​team-based new product development E. test marketing

B. crowdsourcing

Google's "Innovation​ Time-Off" and​ 3M's "Dreamdays"​ programs, in which employees are granted time away from their regular duties in order to develop new​ innovations, are examples of a concept known as​ ________. A. concept testing B. intrapreneurship C. idea generation D. product development E. crowdsourcing

B. intrapreneurship

The​ five-stage product life cycle​ (PLC) defines the​ ________ stage as the one in which sales slow down because the product has achieved adoption by most potential buyers. Profitability usually levels off. A. product development B. maturity C. decline D. growth E. introduction

B. maturity

With respect to the product life​ cycle, the​ ________ stage is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. A. growth B. maturity C. decline D. development E. introduction

B. maturity

LegalZoom was the first Web site developed to assist consumers in doing legal transactions such as writing​ wills, getting​ divorced, and doing simple patent and trademark work online without hiring a lawyer. LegalZoom is​ a(n) ________ in the industry starting out in the introductory stage of the PLC. A. style B. pioneer C. fad D. fashion E. classic

B. pioneer

Whereas a product idea is an idea for a possible product that the company can see itself offering to the​ market, a​ ________ is a detailed version of the idea stated in meaningful consumer terms. A. product image B. product concept C. ​customer-oriented strategy D. target market E. prototype

B. product concept

Established by the U.S. Congress in​ 1972, the​ ________ has the authority to ban or seize potentially harmful products and set severe penalties for manufacturer violations of federal law. A. Federal Trade Commission B. Food and Drug Administration C. Consumer Products Safety Commission D. Environmental Protection Agency E. Food Safety and Inspection Service

C. Consumer Products Safety Commission

International product and services marketers face special challenges.​ First, the firm must figure out what products and services to introduce and in which countries. What is the second issue the firm must​ address? A. How to standardize tastes and preferences around the world B. Which countries are financially risky countries C. How much to standardize or adapt their products and services D. Which countries do not have laws as strict as the United States E. How to price the products to capture unrealistic profits

C. How much to standardize or adapt their products and services

In the idea generation​ stage, firms can generate new product ideas from internal and external sources. Which of the following is an internal source for idea​ generation? A. Crowdsourcing B. Competitors C. Intrapreneurial programs D. Distributors and suppliers E. Customers

C. Intrapreneurial programs

The concept of product life cycle that marketers use presents a challenge because all products eventually decline.​ Consequently, a firm must be good at developing new products to replace aging ones. This is known as what​ issue? A. The challenge of having to use the same marketing strategies for new products B. The challenge that product life cycle applies only to tangible products C. The challenge of new product development D. The challenge of customers being resistant to change and not wanting new products E. The challenge that no two products follow the same product life cycle

C. The challenge of new product development

There are several reasons why new products fail. Which one of the following reasons that has been given for a new​ product's failure can the marketing manager​ ignore? A. Incorrect​ positioning, inaccurate​ pricing, or poor advertising B. Overestimation of potential market size C. Higher than expected development and marketing costs D. Competitors legally restricting market entry simply because the product is new E. Poor product design

D. Competitors legally restricting market entry simply because the product is new

There are many legal responsibilities facing the marketing firm. Which of the following is the firm exempt from having to do legally in managing its product​ offering? A. Compliance with consumer product quality and safety laws B. Being prevented from adding products through acquisitions C. Following patent laws D. Having to legally create product stewards to protect consumers E. Inability to drop all products from the market offering on the​ firm's decision

D. Having to legally create product stewards to protect consumers

Many entrants to the global marketplace have been driven or​ "pulled" into the global arena as they followed their client companies that were entering global competition. For which of the following industries is this​ follow-through behavior most​ common? A. Restaurants B. Medical services C. Retailers D. Professional and business services​ industries, such as​ accounting, management​ consulting, and advertising E. Gas and oil companies

D. Professional and business services​ industries, such as​ accounting, management​ consulting, and advertising

Rather than leaving new products to​ chance, a company must carry out strong new product planning and set up a​ systematic, customer-driven new product development process for finding and growing new products. There are eight major steps in this process beginning with​ ________ and ending with​ ________. A. idea​ generation; test marketing B. idea​ generation; business analysis C. idea​ screening; commercialization D. idea​ generation; commercialization E. concept​ development; commercialism

D. idea​ generation; commercialization

Some PLCs are short and some endure a long time. The PLC for a product​ class, such as a kilt like the Scottish tartan​ skirt, lasts for several centuries and is a​ basic, distinctive mode of expression. The kilt is best described as​ a(n) ________. A. innovation B. fashion C. classic brand D. style E. fad

D. style

If the purpose of idea generation is to create a large number of​ ideas, what are all the succeeding steps in the new product development process designed to​ do? A. Develop a crowdsourcing program. B. Source ideas externally. C. Multiply the number of new product ideas the firm has. D. Source ideas internally. E. Reduce the number of generated ideas.

E. Reduce the number of generated ideas.

A firm can develop new products or acquire them from other firms.​ However, innovation can be expensive and very risky. By one​ estimate, ________ of all new products introduced by established companies fail within two​ years, and​ ________ of all innovations fail to return their development costs. A. ​50%; 75% B. ​33%; 50% C. ​25%; 66% D. ​33%; 96% E. ​66%; 96%

E. ​66%; 96%

​________ calls for testing new product concepts to groups of target consumers. A. Sequential new product development B. Test marketing C. concept testing D. Idea screening E. Product development

concept testing