1. When the manufacturer of Pine-Sol cleaning liquid introduced an orange-scented cleaner, which of the following occurred? |
ANS: B New products can be improvements or revisions of existing products. |
Marketers consider all of the following examples of new products EXCEPT which one? |
ANS: D All these are new products except the new model year with no other changes than the date. |
The maker of Peter Pan peanut butter has developed a honey-flavoured peanut butter spread to add to its peanut product line. Is this a new product? |
ANS: C An addition to the existing product line is considered a new product by marketers. |
New-to-the-world products, where the product category itself is new, are also called which of the following? |
D |
When Sherwin Williams began selling Martha Stewart-designed paints, what could the approach be classified as? |
ANS: D These are new products that supplement, not replace, a firm’s established line. |
Until the mid-1990s, MGP Ingredients, Inc. sold ethanol and animal feed. A steep drop in its sales led the company to focus on developing the first low-carb proteins and starches. What would these low-carb proteins and starches be an example of? |
A |
Stouffer’s added 25 percent more meat to its Lean Cuisine Skillet Sensations meal-in-a-bag. The addition of more meat made the product acceptable to men as well as women and expanded its target market. What is the meatier Lean Cuisine Skillet Sensations an example of? |
ANS: A The meal-in-a-bag was modified to appeal to a new target market. |
What occurs when an existing product is targeted toward new market segments? a. brainstorming |
D |
When Banquet made its chicken patties 20 percent larger to provide greater value to the consumer, it was not trying to reach a new target market. What has Banquet created? |
ANS: C Banquet improved an existing product. |
What links the new-product development process with the objectives of the marketing department, business unit, and corporation? |
B |
Companies that are most likely to succeed in the development and introduction of new products typically do which of the following? |
D |
What does a new-product strategy do? |
C |
What is the first stage of the new-product development process? |
ANS: A New-product strategy is the first subset of the organization’s new-product development plan. It specifies what roles new products play in the organization’s overall plan and describes goals. |
When Forrest Event Marketing, Inc. started searching for new product ideas, a marketing consultant suggested a variety of sources of information. Which is the LEAST likely source of new product ideas? |
ANS: D Customers, employees, distributors, and competitors are interacting with the marketplace and may have ideas for goods to serve customer needs. The bank from which it gets its debt financing is the least likely alternative here. |
A manufacturer of athletic equipment is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new product ideas? |
ANS: B Customers are in the marketplace and may have ideas for goods to serve customer needs. |
Which of the following sources is a source for new product ideas? |
A |
A hospital created a focus group to identify new products that it believed would enhance the boomers’ aging process. This focus group most likely contained which of the following? |
ANS: D To be useful, focus groups should contain people who are most directly affected by the focus group’s outcome. |
Which of the following is a type of scientific investigation aimed at discovering new technologies? |
D |
Scientists at University of Toronto are working to develop new technologies for customer interface interactions in retail stores. Right now they are not concerned with the potential cost-effectiveness of the technologies or the marketability of the technologies. What are these scientists involved in? |
ANS: A Basic research is scientific research aimed at discovering new technologies. |
What takes new technologies and attempts to find useful applications for them? a. brainstorming |
B |
Scientists at University of Toronto have received a patent for their newly discovered technologies for more effective customer interface interactions in retail stores. The university decided to sell the patent to an independent company whose scientists immediately began exploration into practical uses of this new technology. What are the scientists at the independent company involved in? |
ANS: B Applied research takes new technologies and attempts to find useful applications for them. |
Christian Kniski has developed a new technology that uses miniature computerization to analyze DNA specimens. His next step after developing the product should be to work to find an application for this new technology through which of the following? |
ANS: A Applied research takes new technologies and attempts to find useful applications for them. |
What goes one step further than applied research by converting new technology applications into marketable products? |
B |
What is one way to determine whether a company has a balanced portfolio of products and, if not, what new product ideas are needed to offset the imbalance? |
C |
What is a process where a group thinks of as many ways as possible to vary a product or solve a problem without considering the practicality of the ideas? |
C |
Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm’s employees got together and listed ways the product might be used. What is this an example of? |
ANS: B Brainstorming is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas. |
One manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new product ideas, such as jewellery, shoes, and belts. Which research technique was the manufacturer using? |
B |
A company that manufactures mantels, stairways, doors, windows, and other architectural reproductions brought together a group of 10 recent customers and asked them to discuss what they liked and disliked about the current designs marketed by the company. Which of the following research techniques did the manufacturer use? |
D |
What is the first filter in the new-product development process that serves to eliminate new product ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason? |
C |
At what stage of the new-product development process are most new product ideas rejected? |
ANS: C Screening is the stage when the bulk of the ideas are rejected for being incompatible or impractical. |
After the research team at DairyMade had generated more than two dozen new product ideas for a substitute for coconut that tastes the same but has zero fat, the company formed a committee to analyze whether the product ideas were consistent with the organization’s new-product strategy. What is this called? |
ANS: B Idea screening is the first filter in the product development process. It serves to eliminate new product ideas that are inconsistent with the organization’s new-product strategy. |
Top managers at a company that publishes regional magazines considered making maps, but then decided maps were not within the company’s corporate mission. Which stage of the new-product development process did its new-product development process reach? |
ANS: B Screening involves rejecting products that don’t fit with company plans. |
Until the mid-1990s, MGP Ingredients sold ethanol and animal feed. A steep drop in its sales led the company to focus on developing the first low-carb proteins and starches. The company was able to use existing manufacturing equipment to develop these food additives in response to the growing popularity of the Atkins Diet and similar food regimens. The realization that MGP could use the popularity of the Atkins Diet as a catalyst for success would have occurred in which stage of the new-product development process? |
D |
What is the screening and concept testing stage of the new-product development process used to do? |
ANS: B Concept tests involve describing the product idea to consumers, usually before any prototype has been created, and asking for their evaluations. |
Which of the following evaluate new product ideas usually before any prototype has been created? |
C |
After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the three product ideas in terms of their marketability. What is this stage of new-product development? |
ANS: D Concept tests evaluate new product ideas usually before any prototype has been created. |
Zippysnacks has come up with a new potential product, chocolate-covered jalapeno peppers, and is now asking potential customers, ―Would you buy this snack?‖ Zippysnacks is asking this question of potential customers in which of the following? |
B |
In which stage of new-product development are preliminary demand, cost, sales, and profitability estimates made? |
A |
In which stage of new-product development is the technical feasibility of manufacturing the new product examined as a prototype is produced? |
ANS: D During the development stage, the technical feasibility of manufacturing the product at a reasonable cost is thoroughly examined. This stage can be long and expensive and can involve a great deal of testing. Products are often modified after the testing. |
The development stage of the new-product development process works best when which of the following is practised? |
A |
According to the text, which of the following statements about simultaneous product development is true? |
ANS: C Suppliers are typically involved in the process, which shortens the length of time it takes to get a new product to market. |
What is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation? |
A |
Sara Lee, the maker of Ball Park sausages, has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program. What is Sara Lee using? |
ANS: B Test marketing is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. |
When selecting a test market city, what should a researcher look for? |
ANS: B Test marketing is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. The market city should be similar to the overall market for accuracy of results. |
Landingham Laboratories has decided to introduce its new over-the-counter antibiotic for ear infections in a limited market consisting of only two cities, and to closely monitor the reactions of potential customers to the product and its marketing program. What is this called? |
ANS: C A test market is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. |
Which of the following has been found to be an efficient substitute for traditional methods of conducting test markets? |
ANS: B The text describes the activities of P&G, Quaker Oats, General Mills, and other companies that use on-line test marketing. |
The maker of Lysol disinfectant tested consumers’ reactions to the company’s Lysol Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then ―shop‖ in a mock store filled with real products, including the new cleaning product. What is this an example of? |
ANS: A Simulated (laboratory) market tests typically entail showing members of the target market advertising for a variety of products, and then monitoring purchase behaviour in a mock or real store. |
The maker of Skittles candy kitchen tested and prepared hundreds of batches of candy for taste-testers, who were employees of the company. The taste-testers were instructed to identify the best formula for mint-flavoured Skittles. This was an example of what type of test? |
ANS: A Laboratory tests are conducted on prototype products during the development stage. |
One of the following typically entails showing members of the product’s target market advertising and other promotional materials for several products, including the test product. These people are then taken to a mock or real store where their purchases are recorded. Which of the following is being described? |
A |
What is the final stage in the new-product development process? |
C |
During which stage of the new-product development process does production start, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin? |
C |
Parris Laboratories has ordered production materials and equipment needed to make its new slow-release chlorine emulsion for swimming pools in its Rossville plant. Which stage of new-product development is Parris Laboratories entering? |
ANS: B During commercialization, production materials and equipment are ordered. |
n the long run, products fail because of a poor match between which of the following? a. prices and consumer demand |
ANS: B This poor match is a violation of the marketing concept, which focuses on serving customer needs with the product. |
When does absolute failure occur? |
ANS: D Failure does not occur from relativizing price and quality. |
Firms that routinely experience success in new-product introduction tend to have which of the following? |
ANS: C Firms that routinely experience success in new-product introduction tend to have strong leadership, a history of customer orientation, and an obsession with producing the very best product possible. |
What is the main goal of the global product development process? |
ANS: B Multinational companies develop each product for potential worldwide usage, with minor unique requirements incorporated. |
A global organization that ―thinks local, act local‖ does which of the following? |
C |
What is the name for a consumer who was sufficiently satisfied with his or her trial experience with a product to proceed with some further usage? |
C |
When a consumer makes a trial purchase of a new product, what does he or she become in the new-product adoption-stage process? |
ANS: B A trial purchase does not make a consumer an adopter. Satisfaction and continued usage are required to make a consumer an adopter. |
What is a product that is perceived as new by a potential adopter, whether the product is ―new to the world‖ or simply new to the individual? |
A |
Because Laurence did not know companies sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident, he paid almost $4,000 to have his dog’s broken hip replaced. Once he discovered that such a product existed, what did he perceive the insurance to be? |
ANS: B An innovation is a product perceived as new by a potential adopter. |
The process by which the executives at a large company learned about a company called 25th Hour that provides personal assistants who will run errands for $17 per hour is an example of which of the following? |
ANS: C marketing communications |
What is the spread of a new idea from its source of invention or creation to its ultimate users or adopters? |
A |
In terms of categories of adopters, those who take on the role of opinion leaders in their community are typically found within which group? |
B |
Those who embrace products relatively early in the product life cycle, are likely to be community oriented, and often are opinion leaders themselves are referred to as which of the following? |
D |
Which of the following are eager to try new ideas and products, typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters? |
D |
Which of the following statements about how adopters participate in the diffusion process is FALSE? |
ANS: B There are five categories: innovator, early adopter, early majority, late majority, and laggard. |
Reginald was happily jogging up the street in his florescent green jogging shorts while listening to his favourite cassette, ―The Best of Anne Murray,‖ in his Sony Walkman. Seeing a bus go by with a sign that claimed ―iPhone is THE way,‖ Reginald snorted, ―That’ll be the day.‖ Reginald belongs to which adopter group? |
B |
Franco likes to be ―cutting edge‖ with respect to new trends but carefully researches the Web for anticipated benefits of consumption from peers and checks out competitive offerings before committing to purchase. Franco is in which of the following groups? |
B |
Old Oscar’s favourite expression is, ―Old ways is best ways.‖ Oscar was recently told by a couple of his friends that he was becoming out of fashion with regard to his video viewing habits. Reluctantly, he just purchased a DVD player and has considered converting his massive VHS cassette collection to DVD. In terms of adopter categories, where would Oscar fall? |
B |
A company finds out that members of its target market are likely to collect more information and evaluate more brands than early adopters. These people are cautious and thoughtful and do not try the product without asking someone else. The customers’ dominant characteristic is deliberateness. In terms of the diffusion process, these customers are most likely in which group? |
ANS: D The early majority will collect more information and evaluate more brands than do early adopters. They rely on friends, neighbours, and opinion leaders for information and norms. |
Who adopt a product because most of their friends have already done so, and their adoption is usually the result of pressure to conform because they rely on group norms? |
A |
Among the late majority group, what does adoption of a product primarily result from? |
C |
In the adopter categories, the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are tradition-bound. They tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society. Who are they? |
A |
Which of the following is a characteristic that would slow the rate of adoption of new products? |
ANS: A Products that are compatible with others will gain from existing product knowledge, past experiences, and correct needs. |
Many product failures such as cucumber antiperspirant spray, Toaster Eggs, and Health-Sea sea-sausages did not succeed because they did not conform to which product characteristic? a. trialability |
ANS: B These products failed because they were not compatible with existing products and because customers could not relate to them. |
Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and it looked like the users were having fun. This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic? |
ANS: C Observability refers to the degree to which the product benefits can be observed. |
A personal care item such as a new flavour of dental floss may have a slow rate of adoption because it is not a highly visible item in homes. Also, this item is not often discussed among friends and coworkers. This is an example of how which characteristic can work to slow the adoption process? |
ANS: B Observability refers to the degree to which the benefits or other results of using a product can be observed by others and communicated to target customers. |
For years many people perceived it as difficult to tape programs on video cassette recorders (VCRs). They could not master the multiple programming steps. As a result, makers of VCRs streamlined the system. To tape a show, all the user needed was a program number available in TV Guide. Makers of VCRs realized that which product characteristic was slowing sales? |
ANS: A Complexity is the degree of difficulty in understanding a product. |
Which of the following products has the lowest level of trialability? |
ANS: D Trialability is the degree to which the product can be tried on a limited basis. Braces cannot be. |
What can the marketers of consumer products expect to find when they study and apply the product life cycle theory to their products? |
ANS: A If a firm changes a feature of the product, it could move into another product life cycle stage. |
According to the text, which of the following statements about the product life cycle is true? |
D |
According to the text, which of the following statements about the product life cycle is true? |
ANS: C The product life cycle concept encourages marketing managers to think proactively. Almost all sales in the maturity and decline stages of the product life cycle represent repeat purchasing. The relationship between the adopter categories and the stages of the product life cycle are well understood. The product life cycle has four stages. |
Laptop computers, pet food, cake mixes, DVDs, and recreational vehicles are examples of what? |
C |
Otto-Light is a desk light that lets hobbyists match colour swatches accurately without going outside. It’s like convenient, natural sunlight inside. The lights have high marketing costs, are sold with high dealer margins, and have high production costs. Ads for the product aim at educating craftspeople who work with fabrics and paints about the benefits of the Otto-Light. In which stage of the product life cycle is the light? |
ANS: D These characteristics illustrate the introductory stage of the product life cycle. |
Which stage of the product life cycle would feature very high promotional expenditures in an attempt to create customer awareness? |
B |
Ortho Products would like to estimate the length of time that its new product, the Sonar Brush (cleans teeth without touching them), will stay in the introductory phase of its product life cycle. What do you tell management? |
ANS: C The relative advantage is the degree to which a product is perceived to be superior to existing substitutes. |
Firebrand Technologies has been researching and developing a revolutionary product in its company labs for the past five years. The company has just finished developing a cigarette that is smokeless and contains no nicotine. Firebrand is looking forward to a very profitable product launch. What stage of the product life cycle is the company in? |
D |
The length of the introductory stage of the product life cycle for a new product is largely determined by which of the following? |
ANS: C The introductory stage of the product life cycle is affected by how customers perceive the characteristics of the product. Other factors that affect the length of the introductory stage are the educational effort required to use the item and management’s resource commitment to the item. |
The advertising strategy during the growth stage of the product life cycle should be to do what? |
ANS: A During growth, the competition has appeared, and advertising should emphasize brand differences. |
Why do profits increase during the growth stage of the product life cycle? |
C |
What is the phase of the product life cycle in which healthy profits usually begin to appear? a. introductory |
ANS: D Because losses often occur during the introduction stage, profits first appear in the growth stage. |
What happens toward the end of the growth stage of the product life cycle? |
C |
Zippy Construction Ltd. has been experiencing extremely tough competition in recent months for its specialty housing components. Fred Farkle, President of Zippy Construction, was reading the latest industry statistics on overall sales of specialty components and noted that revenues had plateaued. It is likely that Mr. Farkle was facing which stage of the product life cycle? |
A |
Normally, what is the longest stage of the product life cycle? a. introduction |
B |
Typically, at the beginning of the maturity stage of the product life cycle, what happens to sales? |
c |
What happens during the maturity stage of the product life cycle? |
ANS: B In maturity, one of the only ways to fuel an increase in sales is to push more products to the dealer. |
Post has been manufacturing and marketing breakfast cereals for over 100 years. It spends much of its marketing budgets on short-term promotions aimed at stealing market share from General Mills and other cereal manufacturers. From this information, you should know that cereals are in the which stage of their product life cycle? |
D |
A long-run drop in sales signals the beginning of which stage in the product life cycle? a. saturation stage |
C |
Which of the following products is most likely to be in the decline stage of its product life cycle? |
ANS: A Its sales are falling and the product is not being supported by marketing efforts even though there are still some computers that can use that size diskette. |
The rate of sales decline during the decline stage of the product life cycle is largely governed by which of the following? |
ANS: B Changing consumer tastes can force a product into decline, particularly if an alternative is available. |
You are a product manager for a manufacturer of detergent. You have determined that detergent is in the mature stage of the product life cycle. To keep your product from entering the decline stage, what should you do? |
A |
The marketing manager for a company that manufactures pet foods wants to base the marketing strategy he implements for the company’s products on the product life cycle stages. In order to do this, what should he do? |
A |
Marketing final #9
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