MKTG CHP 10

Less than ________ of new consumer package goods exceed first-year sales for $50 million - the benchmark for a successful launch.

3%

________ products are purchased by the ultimate consumer, whereas ________ products are purchased by organizations to assist them in providing other products for sale.

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.

Customer experience management

________ is the stage of the new-product process in which an idea is turned into a prototype.

Development

What are the classifications of new products based upon the learning required of the consumer? (Select all that apply)

Discontinuous innovation Dynamically continuous innovation Continuous innovation

________ is the stage of the new-product process that results in a pool of concepts to serve as candidates for new products.

Idea generation

What statement characterizes new products in the marketplace?

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.

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

________ 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.

Screening and evaluation

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

Considering whether a new product will require new machinery to produce, has the potential to cannibalize existing products, or if it will require new patents occurs during which stage of the new-product development process?

business analysis

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.

business analysis

What are the two broad product categories, related to the type of user, that are widely used in marketing?

business products consumer products

A convenience product is one that the consumer ______.

buys frequently and with little effort

What are two desirable characteristics when choosing a test market for a new product? Multiple select question.

cable system that is able to deliver different advertising to different homes city population that is demographically representative of target market

The new-product process stage of_____ involves positioning and launching a new product in full-scale production and sales.

commercialization

Select three stages that are part of the new-product development process.

commercialization market testing idea generation

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

What type of consumer product is characterized by relatively inexpensive items with widespread availability?

convenience products

What three items are classified as consumer products.

convenience products specialty products shopping products

The open innovation technique that involves generating insights based on ideas from massive numbers of people is called ______.

crowdsourcing

A company will engage in test marketing in order to ______.

determine whether consumers will actually buy the product

The new-product process stage of screening and evaluation involves

determining which ideas should be eliminated from further effort.

Manufacturing the product efficiently and performing laboratory and consumer tests to ensure it meets protocol standards are part of which stage of the new-product process?

development

For which type of innovation will consumer education be most important, perhaps requiring personal selling to gain product trial?

discontinuous innovation

A desire to keep products seeming new encourages the proliferation of extra features in what is known as ______.

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 ______.

feature fatigue

A firm that uses crowdsourcing will generate product ideas ______.

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.

good

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.

idea generation

A product ________ is a specific product that has a unique brand, size, or price.

item

For ordering and inventory purposes, each product ________ has a separate stock keeping unit (SKU).

item

What occurs during the commercialization stage of the new-product development process?

launching full-scale production for a new product

The categories of continuous innovation, dynamically continuous innovation, and discontinuous innovation are based on levels of consumer ______.

learning

Marketers often look for cities that are viewed as being representative of U.S. consumers in terms of their demographic variables when they conduct ______.

market tests.

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.

new-product strategy development

During concept testing, new-product ideas are presented to _______ to obtain their reactions.

potential consumers

A ________ is a pre-development statement that identifies a target market, customer needs, and what the product will be or do.

protocol

Organizations may rely on new products coming from its own design group of engineers. These employees make up what department in an organization?

research and development

The design for Apple's iPad, iPhone, and iMac came from Apple's own industrial design group. What department in an organization does this represent?

research and development

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.

screening and evaluation

How many steps are in the new-product development process?

seven

An new dishwasher would be considered which type of consumer 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

What type of consumer product is characterized by the consumer comparing several alternatives on criteria such as price, quality, or style?

shopping products

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

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

When Subway introduced a new Southwestern Club sandwich in south Florida before launching it nationwide, it was engaging in ______.

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 ______.

standard test marketing

Which two are types of tests available to organizations during the market testing stage of the new-product process?

standard test markets controlled test markets

A good is a product that is defined as having ________ attributes.

tangible

Offering a product for sale on a limited basis in a defined area is called marketing.

test

Market testing involves exposing ______ product to ______.

the actual product; prospective customers

What must the consumer learn about when a new product is a discontinuous innovation? (Select all that apply)

the proper use of the product an initial awareness of the product the benefits of the product

The new-product process stage of market testing involves which two items?

using realistic purchase conditions to see if consumers will buy exposing actual products to prospective consumers

What should be included in a protocol for new product development? (Select all that apply)

what the product will be and do a well-defined target market specific customer needs, wants, and preferences