NPD Final Ch. 15 & 18

Why is informal selling highly suitable for industrial selling?

Because industrial selling is based on clearly identifiable product features, and informal selling results in real purchasing

Which of the following is true of a surrogate product use test?

Constructive evaluation is a surrogate product use test.

Merva Cosmetics Inc. primarily sells its products by mailing catalogs to consumers. The company tests its new product lines by simply listing them in some of its catalogs and counting the orders. Identify the market testing method being used by Merva Cosmetics.

Direct marketing

Which of the following is a controlled sale market testing method that involves real purchasing under some real competitive environment?

Direct marketing

Which of the following methods of market testing fall under the category of controlled sale?

Direct marketing

Which of the following user groups are likely to give more careful consideration, in use testing, than other typical users and express more accurate reactions?

Experts

Identify the method of market testing which is most likely to make use of a rollout

Full sale

Which of the following key specifics indicate that a product is likely to work in the market?

High levels of ease of use

Which of the following causes for new product failure does concept testing cover?

If there is a lack of need for the product

Identify the advantage of using personal contacts to reach user groups instead of mail.

Increased depth of questioning

Which of the following types of market testing relies upon asking potential customers if they would buy the product if the product were actually available, but does not require them to spend money or take a risk?

Pseudo sale

Which of the following statements is true of the speculative sale method of market testing?

It does not involve advertising.

Which of the following is an advantage of the pseudo sale market testing method?

It is cheap and quick.

Which of the following is the strongest argument for conducting market testing as late as possible?

It is more useful and more reliable.

Which of the following statements is true of test marketing?

It is too expensive to be used as a final exam.

Which of the following is an advantage of using test marketing?

It provides the best sales forecast and the best evaluation of alternative marketing strategies.

As a method of market testing, which of the following is an advantage minimarket testing provides over test marketing?

Minimarket testing allows for greater flexibility in changing price and other variables of a new product when compared to test marketing.

Before launching its new breakfast cereal, Wish Foods Inc., decided to test the product in the market. The new products team decided to sell the cereal on a small scale in two major outlets of FourMart Inc., a retail departmental store. This technique of market testing would help create an actual buying situation and allow for flexibility in changing the product's price and other variables. Which of the following market testing methods does this scenario best illustrate?

Minimarketing

Identify the controlled sale market testing method that involves distributors and retailers or dealers in the process.

Minimarketing

May Safe Solutions (MSS) Inc. is on the verge of launching a new security alarm systems for homes. Before the commercialization of the product, the marketing team of the company contacts a few customers, describes the product to them, answers queries on its functioning, negotiates price, and then asks the customers if they would actually buy the product if it was available in the market. Which of the following methods of market testing is MSS Inc. applying in this scenario?

Minimarketing

Identify the use test that provides knowledge from initial reactions of users to color, speed, durability, mechanical suitability, etc., of a new product.

Pre-use sense reaction

Which of the following market testing methods is sometimes called tiered marketing?

Rollout

Which of the following methods of market testing was a spinout from concept testing and comes very early in the new product development process?

Simulated test marketing

Which of the following tests is the most sensitive?

Simultaneous form of paired comparison test

Which of the following is an example of use testing?

Technicians putting notebook computers in the hands of warehouse personnel

To test its new product, Reliway Inc. choose three cities to sell the product and three cities very similar to the first group where the product was not sold. All six cities were watched closely, and the stocking and sales of the new product were audited using the InfoScan system. This method helped the company fine-tune its sales plans. Identify the market testing method illustrated in this scenario.

Test marketing

Which of the following tests all market variables, including competition and the trade?

Test marketing

Which of the following statements is NOT true of market testing?

Test marketing is replacing scanner-based methods of market testing.

Which of the following is a drawback of test marketing?

Test marketing results are not really projectable.

Which of the following is true of product testing?

Testing should be continued till a firm is satisfied that it has solved the problems expressed in the original protocol.

Identify the situation that most likely requires a company to conduct market testing on its new product.

The company's capital investments in the new product are high.

Which of the following statements is true of informal selling as a method of market testing?

The presentations in the informal selling method are for real, and cash sales take place.

Which of the following is a disadvantage associated with use testing?

The risk of a competitor obtaining the firm's product and entering the market first

Which of the following is a disadvantage of mail methods over personal contacts?

They are limited in terms of depth of questioning

Which of the following is the first thing managers should decide in a product use test?

They should decide on what needs to be learnt.

Which of the following is true of a gamma test?

To pass this test, the new item must solve the customer problems completely.

Which of the following statements is true regarding rollout?

Today rollout is increasingly replacing test marketing.

_____ is a virtual market testing technique, in which a respondent is brought into a virtual retail store environment and encouraged to look around, take products off the shelf and read the label, and make purchases.

Visionary shopper

In recording respondents' reactions, the respondent is usually asked to compare the new product with another product, say, the leader or the one currently being used, or both. In this case, _____ score is used.

a preference

A rollout when compared to test marketing:

allows the testing firm to minimize losses in case of failure.

Beta tests are generally preceded by _____ tests.

alpha

In the new products process, market testing should typically be carried out:

as soon as techniques that will tell us what we need to know are found.

A certain industrial firm found that users were making a particular change to aid a product's function. In the context of special problems associated with a product use test, this illustrates the act of _____.

being alert to changed conditions

_____ are short-term use tests that evaluate a product at customer sites, to determine if the product works free of bugs.

beta tests

40. Alton Inc. requires competitive comparisons in testing its potential product. The firm should use _____.

blind tests

A user reviewing videos of conventional product using testing previously done is an example of _____.

retrospective testing

In the context of product use testing, a degree of explanation called _______, includes just the information the customer will get when actually buying the product later.

commercial

When a respondent uses an item, describes activities, and explains problems encountered, it is known as:

constructive evaluation

Controlled-distribution scanner markets are based on scanner technology and have received much attention in the _____ field.

consumer packaged goods

Minimarket testing is a _____ method.

controlled sale

The _____ stage of a case based research is followed by a preliminary beta test with end users in a real work environment.

development

Alpha tests are generally conducted amongst:

employees of a firm

A method for testing the end users' experience with a new item is called _____.

field testing

If a firm plans to use only one type of use testing, products selected for testing should preferably be drawn from _____.

final production

The ideal product use test in which the item is put through its paces and thoroughly evaluated by the end user is called a(n) _____.

gamma test

Today, companies primarily use test marketing to

improve and make adjustments in their marketing plans.

The first stage of case-based research is _____ during which the developer interviews users to learn their expectations and how they will likely use the product.

investigation

Case-based research used by some software manufacturers:

is a very comprehensive form of product use testing that runs parallel to the software's development process.

Product use testing is also known as _____ testing.

market acceptance

In a _____ test, which is especially common for services, a respondent tests a single new product for a period of time.

monadic

If use testing would result in the product being second (or even third) to market, most firms would:

opt for immediate marketing

In a _____ test, use of the new test product is interspersed with that of a competitive product.

paired comparison

The primary role of simulated test marketing in A-T-A-R forecasting is to:

provide estimates of trial and repeat purchasing for a new product.

When compared to other test methods, test marketing:

provides the most abundant supply of information

A firm desiring to use two or more market testing techniques for a new product is most likely to begin with a _____ method.

pseudo sale

According to the "selling concept," the role of marketing was restricted to:

selling the products that a firm makes

Batch product should be used alone only if:

the production process is prohibitively expensive.

Makers of a building-block set for children puts kids in a focus group room and observes how the kids play with the set. This act is an example of _____ testing.

use

Firms that copy innovative products:

usually commit the innovator's mistakes as well

Under which of the following situations will market testing be quick, if at all it takes place?

when competitors can take retaliatory action that will hurt a company launching a new product