chapter 12

Breakeven analysis is a tool that marketers are likely to employ during the ___________ stage of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing

c) business analysis

During which stage of new-product development does the firm consider profitability? a) Idea generation b) Testing c) Business analysis d) Product development e) Compatibility research

c. business analysis

When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ___________ phase of the new-product development process. a) idea generation b) commercialization c) test marketing d) business analysis e) screening

b) commercialization

Competitive interference with a test-marketing program is called a) tactical interference. b) jamming. c) test interference. d) squeezing. e) ramming.

b. jamming

"Is the demand strong enough?" is a question that marketers ask during the ___________ phase of new-product development. a) screening b) concept testing c) business analysis d) product development e) test marketing

c) business analysis

After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process. a) product design b) screening c) product development d) concept testing e) test marketing

c) product development

Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbuck's objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is a) product development. b) idea screening. c) concept testing. d) business analysis. e) test marketing.

c. concept testing

If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ___________ to reduce the validity of the other firm's results. a) testing interference b) leadership pricing c) jamming d) test marketing e) stress marketing

c. jamming

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as a) market development. b) regional commercialization. c) roll-out. d) market extension. e) competitive jamming.

c. roll-out

What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level? a) Product development b) Evaluation of competitor's efforts c) Screening d) Idea generation e) Business analysis

c. screening

Sales and cost analyses occur most frequently in what stage of the new-product development process? a) Screening b) Product development c) Test marketing d) Commercialization e) Business analysis

c. test marketing

PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink? a) There are research and audit services available. b) Retailers would be cooperative. c) Testing efforts would not be easily jammed by competitors. d) Tourism is a major industry in the area. e) The city has stable year-round sales of soft drinks.

d) Tourism is a major industry in the area.

The test-marketing stage a) is an extension of the screening stage. b) should come immediately after business analysis. c) ensures that the product will not fail. d) is a sample launching of the entire marketing mix. e) prevents competitors from copying the product

d) is a sample launching of the entire marketing mix.

"How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development. a) commercialization b) concept testing c) business analysis d) product development e) test marketing

d) product development

The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is a) test marketing. b) commercialization. c) concept testing. d) product development. e) business analysis.

d) product development.

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ___________ phase. a) idea generation b) concept testing c) business analysis d) screening e) test marketing

d) screening

After a company has created a prototype during the product development stage, its performance, or ___________ must be tested. a) appeal to customers b) dependability c) durability d) functionality e) pricing

d. functionality

As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process? a) Idea generation b) Commercialization c) Test marketing d) Screening e) Product development

e) Product development

Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process. a) test marketing b) business analysis c) concept testing d) product development e) commercialization

e) commercialization

Ideally, test marketing should follow which stage in the new-product development process? a) Commercialization b) Business analysis c) Screening d) Limited production e) Product development

e. product development

A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process? a) Business analysis b) Product testing c) Idea generation d) Commercialization e) Screening

e. screening

Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing

e. test marketing

Early in the commercialization phase, marketers must make decisions about a) warranties, repairs, and replacement parts. b) product features and breakeven points. c) functionality, safety, and convenience. d) the proposed marketing mix variables. e) which ideas to further pursue.

a) warranties, repairs, and replacement parts.

Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during a) concept testing. b) product development. c) screening. d) idea generation. e) test marketing.

a. concept testing

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called a) concept testing. b) customer response testing. c) idea analysis. d) test marketing. e) screening.

a. concept testing

Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process. a) screening b) concept testing c) business analysis d) product development e) test marketing

a. screening

Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the __________ phase of the new-product development process. a) screening b) test marketing c) product development d) business analysis e) idea generation

b) test marketing

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process? a) Idea generation b) Business analysis c) Commercialization d) Test marketing e) Screening

b. business analysis

One disadvantage of test marketing a new product is that a) the product is distributed on a regional basis. b) competitors may copy the product. c) the results give little indication of the product's future success. d) price, advertising, and packaging cannot be varied from market to market. e) it might fail before it can be commercialized.

b. competitors may copy the product

Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea? a) Screening b) Concept testing c) Business analysis d) Product development e) Test marketing

b. concept testing

Which of the following phases of new-product development is likely the least costly for the firm? a) Commercialization b) Concept testing c) Business analysis d) Product development e) Test marketing

b. concept testing

Select the true statement concerning test marketing. a) Test marketing is simply an extension of the screening and developing stages. b) Test marketing should be conducted after all the marketing mix variables have been finalized. c) Test marketing is a limited introduction of the product in areas chosen to represent the intended market. d) If the product is successful in the test market, then it is ensured of success upon total introduction. e) Large corporations usually launch test-marketing efforts in one small area at a time

c) Test marketing is a limited introduction of the product in areas chosen to represent the intended market.

Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ___________ stage of the new-product development process. a) business analysis b) commercialization c) screening d) test marketing e) product development

d) test marketing