Chapter 12
T/F - The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence.
False
T/F - Concept testing gives reliable feedback, but at a relatively high cost.
False
T/F - Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions
False
T/F - Disruptive innovations involve completely new technologies.
False
T/F - Venture team members usually come from the same functional areas within the firm.
False
One disadvantage of test marketing a new product is that a. The product is distributed on a regional basis b. The 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. The competitors may copy the product
T/F - Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.
False
T/F - Line extensions are less common than other new products because line extensions are more expensive and more risky.
False
T/F - New products are classified solely as innovations that have never been sold by any organization.
False
T/F - Test marketing should be conducted when a product has been given a low probability of success.
False
T/F - The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.
False
____ refers to how a product is conceived, planned, and produced. a. Product differentiation b. Level of quality c. Product positioning d. Product features e. Product design
e. Product design
T/F - Brand and product managers operate cross-functionally.
True
T/F - Functional modifications usually require that the product be redesigned.
True
T/F - The major drawback in using aesthetic modifications is that their value is determined subjectively.
True
T/F - The product development stage determines the technical feasibility of producing the new product.
True
Three major ways in which marketers engage in product differentiation are a. Product quality, product design and features, and product support services b. Product quality, product support services, and packaging c. Product support services, product design and features, and product positioning d. Product positioning, product quality, and product management e. Product positioning, product design and features, and product promotion
a. Product quality, product design and features, and product support services
Which of the following is the best example of disruptive innovation? a. Razor blade b. Can opener c. Snickers candy bar d. iPhone e. Chevy Corvette
a. Razor blade
Early in the commercialization phase, marketers must make decisions about a. Warranties, repairs, and replacement parts b. Product features and break-even points c. Functionality, safety, and convenience d. The proposed marketing mix variables e. Which ideas to further pursue
a. Warranties, repairs, and replacement parts
Marianna tells Rajesh 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 Rajesh 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
The major drawback to using aesthetic modifications is a. The cost of the modifications b. That the value of the modification is determined subjectively c. The need for redesign of the product d. A possible decrease in market share e. That there is no differentiation for the product in the market
b. That the value of the modification is determined subjectively
All of the following are major steps in developing new products except a. test marketing. b. evaluation of competitors' efforts. c. screening. d. business analysis. e. idea generation.
b. evaluation of competitors' efforts.
Break-even 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
After building a prototype of his new device, Barry 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
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
When Cameron was visiting family in Missouri, he ate a flavor of Boulder Canyon Kettle Chips that he had never seen before. When he returned home to Virginia, he could not find the flavor in any store. Which of the following reasons most likely explains why he could not find the flavor at home? a. The flavor was being deleted through an immediate drop b. The flavor was in the screening phase of the new-product development process c. The chips were undergoing a repositioning d. He was visiting a city being used as a Boulder Canyon's test market e. The new flavor was going through product differentiation
d. He was visiting a city being used as a Boulder Canyon's test market
Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during a. Commercialization b. Screening c. Concept testing d. Product development e. Test marketing
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