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