Marketing 3650 Ch. 10 Practice Test
___________ is a more structured form of brainstorming session in which the characteristics and functions of a specific product (e.g. a screw driver) are presented to the group and the task is to brainstorm ways to improve on those characteristics and functions.
Attribute listing
Apple's Newton PDA and McDonalds' Arch Deluxe both were new product failures primary due to:
Bad timing of launch. Both were launched before the market was ready for them.
Being too quick to criticize new product ideas is considered to be one the biggest pitfalls of _______________ .
Brainstorming
In 1990, Coors launched Coors Rocky Mountain Spring Water, attempting to leverage its images of beer brewed with Rocky Mountain spring water. The product failed because:
Consumers simply did not want the product. Coors means beer, not water.
Bush's Baked Beans recently decided to reposition itself to parents as a "vegetable" that kids will eat and love. In terms of NPD, this repositioning attempt is categorized as a(n) _____________.
Continuous innovations
The classification scheme for new products is based on:
Degree of consumer learning or 're-learning' required for the new product.
Once new product ideas are screened to weed out poor promising ideas, the next step is to:
Develop the ideas into workable 'product concepts' for possible testing with consumers
In commoditized markets, the likelihood of price and market share wars can be reduced if firms successfully ______________ their brands through their NPD efforts.
Differentiate
The _____ of a new product is the process by which an innovation is spread through a social system over time.
Diffusion
Standard test markets are most likely to be conducted for which type of new product innovation?
Discontinuous innovations
When first introduced, products such as VCRs, PCs, automobiles, aircraft, and electricity were ____________.
Discontinuous innovations
____________ are new products that require customers to learn new things, acquire new experiences, and adapt their current consumption behaviors before they can be properly used.
Discontinuous innovations
Today's smart phones are highly evolved extensions of the older communications and computer technologies. The core function and benefit of smart phones is still that they permit people to communicate with other people. Smart phones when initially introduced as a product category were ___________.
Dynamically continuous innovations
Which of the following are true for commercializing new products via geographic roll-out.
Each step during roll-out provides added funds for financing further roll-out. Each step during roll-out amounts to a further test of the new products probably success. Each step allows marketing managers to analyze and refine the new products marketing program. Each step allows marketers to find ways to cut costs and improve margins.
Normally geographic roll-out for a new product begins in geographic areas distant from the product's original test market locations in case further test marketing may be required for fine-tuning the marketing mix as commercialization progresses.Type: True or False
False Roll-out normally occurs first in those areas closest to the test locations to reduce costs and provide added incremental testing.
Developing an NPD protocol is a major component of which stage in the NPD process?
Go-to market strategy
Which of the following is least associated with the geographic roll-out of new products?
Incremental steps in the roll-out process are accompanied with changes in the marketing mix tailored to meet the requirements of each geographic market
The gasoline-electric vehicle marketed by Honda apparently is viewed negatively by many Texans because it doesn't fit their expectations of power and performance. Apparently, the new Honda may be slow to diffuse in the market because:
It lacks value compatibility.
Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of the very last people in the small Western city in which he lives to buy a microwave oven. When it comes to the adoption of microwave ovens, Al is in the _____ category.
Laggards
Which of the following is not a metric for gauging overall NPD performance in the firm?
Market share obtained for a specific new product.
The preferred approach to organizing for NPD is:
New product development teams.
Which of the following is not a metric used to gauge performance of a specific NPD project i.e., specific new product?
Number of retail outlets penetrated.
Olivia is current president of the American Marketing Association student chapter at UNT. She is an extremely intelligent and outgoing leader. Other students in the marketing degree program at UNT look to her for advice a range of academic and professional issues. Olivia, apparently, is a(n) ___________.
Opinion Leader
Which of the following are common metrics that gauge overall NPD performance in the firm?
Percentage of the firm's revenues and profits coming from new products launched. Percentage of the firm's new product successes, failures, and kills. Average time to market for NPD projects (idea to launch. Percentage of the firm's NPD projects that are on-time and on-budget;
Most new product failures resulting from overestimating demand probably can be traced to ____________ .
Poorly conducted marketing research or no research.
Probably the single most important invention in history that changed the world forever was the ___________ .
Printing press
Often conducted in a focus group setting, ______________is usually a customer-based process in which consumers are asked to elucidate on issues they have encountered using certain products or brands.
Problem analysis
A firm that wants to sustain its revenues should engage in new product development because:
Products inevitably pass through a life cycle that culminates in the demise of the product.
Which of the following is not one of the things learned from product use tests in the NPD process?
Projections of anticipated sales and fine-tuning costs of production.
Google has in place a set of procedures that generally guide future new product developmental efforts. These procedures summarize the roles of proposed new products in the firm's existing product portfolio; establishes tentative revenue, market share, and profitability goals for the new product; and tentatively sets aside resources that may be needed to produce, promote, and distribute the new offering. These procedures are called the new product development ____________ .
Protocol
The requirement that a new product (innovation) perform in a superior manner at fulfilling customers' needs (as compared to existing products) means that the new product possesses higher ____________ .
Relative value
_____________ is the traditional organization for new product development, is a linear structure in which individual departments work their portion of the project and then hand-off the results to the next department to begin their part.
Sequential product development.
Which of the following is not one of the adopter categories responsible for the spread of innovations (new products)?
Stragglers
Ongoing NPD programs in firms are important for all of the following reasons except:
Strong NPD programs increases the firm's ability to compete with lower prices in global markets.
New product development (NPD) is essential because it leads to ___________.
Sustainable points of differentiation Sustainable competitive advantages
Which of the following is not true about using NPD teams?
The diversity of the NPD team makes is much easier to manage.
Most new product ideas come from:
The firm's own employees and supply chain partners.
Alpha tests during NPD normally use:
The firm's own employees.
For which of the following situations is a test market least likely to be needed?
The new product is a line extension in the firm's existing portfolio.
Which of the following is the most common reason why new product innovations fail?
The product possesses insufficient relative advantage for existing products
Probably the single-most important factor for speeding the new product adoption and diffusion process and assuring the product's success is:
The product's relative value compared to existing products.
The first four steps in the new product development process are particularly critical because:
These steps deal with ideas or 'concepts on paper' and are the least expensive.
Which of the following are metrics used to gauge performance of a specific NPD project i.e., specific new product?
Time to break-even. Profitability (NPV, operating profits) Market share obtained. Performance to budget.
Frito Lay test marketed a new flavored potato chip fundamentally identical to Procter & Gamble's Pringles line of chips. Sales were disappointing as revenues were not even high enough to cover the product's costs. Frito Lay decided not to commercialize the product primarily because the were afraid the product would be a(n) _______________ ?
absolute failure
Beta tests during NPD normally use:
actual consumers during normal use
When microwave ovens were introduced in the early 1960s, they were slow to be adopted. Although the ovens scored very high on relative advantage, they were deemed to be inconsistent with the wife's role in the kitchen and perceptions on how food should be prepared. Which of the following factors that influence how rapidly new products diffuse was most likely the culprit?'
compatibility
Apple's introduction of the iPhone X can be considered a _____________ .
continuous innovation
By far the most common category of new products is the ___________.
continuous innovations
Clothing manufacturer Van Heusen produces lines of its apparel specifically targeted to consumers who visit its factory outlet stores. These lines are slightly lower in quality and sell at significantly lower price points. In terms of NPD, these additional product lines are categorized as _____________.
continuous innovations
Line extensions, flanker brands, and brand extensions are classified as:
continuous innovations
Most private label products added to retailers' product portfolios are derived from existing brands already produced by other firms. Such "new to the firm" products are examples of __________.
continuous innovations
The Chevrolet Camaro and Ford Mustang have undergone major redesigns in the last decade to improve sales, profits, market share, and brand image. In terms of NPD, these repositioning attempts are categorized as _____________.
continuous innovations
The rate at which new products are adopted by users throughout a particular market, population, nation, or global region is ____________.
diffusion
____________ are usually based on new technologies, provide dramatically different solutions to existing consumption-related problems, and require that consumers learn new ways of solving old problems.
discontinuous innovations
Controlled test markets are most likely to be conducted for which type of new product innovation?
dynamically continuous innovations
____________ generally arises when two or more product ideas are combined in such a way that customers face some re-learning with respect to the new product's functions and usage.
dynamically continuous innovations
____________ innovations are significant improvements on their parent innovations, but not nearly as disruptive in terms of the amount of re-learning involved to adopt the innovation for personal use. Examples include notebook computers, DVRs, commercial and military jet aircraft, and digital photography.
dynamically continuous innovations
In which of the adopter categories will opinion leaders most likely be found?
early adopters
'Check sheets' and weighted point evaluation models are most likely to be employed in which stage of the new product development process?
idea screening
__________ refers to an overall process whereby inventions are transformed into commercial products that can be sold profitably.
innovation
Customers in the __________ adopter category, on average, possess higher discretionary incomes, are often higher in social status, and more knowledgeable about new products. These adopters are most willing to take more consumption-related risks. However, this category is less likely to contain opinion leaders that influence others to buy.
innovators
___________ means creating something that is new or unique.
invention
The requirement that a new product (innovation) be reasonably easy to understand and use means that the new product possesses ____________ .
low complexity
With respect to the diffusion of innovations, the combined categories Early Majority and Late Majority are said to comprise the _____________ for a given product.
mass market
___________ are individuals who have a strong propensity to pass on both positive and negative word-of-mouth communications to other consumers.
opinion leaders
Sony Corporation conducted a series of consumer use tests in the 1990's in which consumers were given samples of its experimental digital camera. Participants were instructed to use the camera for all their picture-taking for the next 30 days. At the end of that time, participants were asked to a focus group session in which they were encouraged to elaborate on their usage experiences. Sony hoped that ideas for product modifications would emerge from the focus group that could be incorporated into the camera's final design. Sony was most likely employing which new product idea generation technique?
problem analysis
A ________ is a concise statement of the proposed new product's characteristics and desired market position. This statement includes identification of the relevant target market; the desired product or brand image; the key functions and benefits the product will provide; and the specific attributes or characteristics that will deliver these functions and benefits.
product concept
During which stage of NPD is a demonstrable and reproducible version of the physical product developed?
prototype development
Product use test (user tests) are normally conducted during which stage of NPD?
prototype development
Hismanal is a drug that will eliminate all of your seasonal allergy complaints without making you drowsy. In terms of currently available allergy remedies that do make many people drowsy, Hismanal has greater ______ for allergy sufferers, which should speed its diffusion rate
relative advantage
Detailed financial projections associated for proposed new products that build on the product's are made during which stage of the new product development process?
strategic business analysis
Management is in the _____________ stage of the new-product development process when it estimates market demand and prepares cost estimates for the new product.
strategic business analysis
Last week Janet purchased her first bottle of Excedrin Migraine. She wanted to see if the product's pain-relieving benefits were any better than those of the brand she currently uses. Janet is most likely in the ___________ stage of the new product adoption process.
trial
For an invention to become an innovation requires that the invention be capable of offering better solutions to recognized consumer problems.
true
In the arena of new product development, the number of "inventions" exceeds the number of "innovations."
true
