Question 1

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?

Accepted Answer

A)  conducting a survey among the 2 million people belonging to the NPD Consumer Panel
B)  observing similar reality programs that are on competing television networks like CBS or MTV
C)  contacting contestants from other reality shows like Survivor or The Amazing Race
D)  brainstorming ideas from the TV production company's employees
E)  reading about the stars of reality TV programs in gossip magazines like Us Weekly and TV programs like TMZF) A) and E)
G) B) and D)

Question 2

Identify and describe each stage in the new-product process in the correct order.

Accepted Answer

There are seven stages in the new-produc...

Question 3

Explain the difference between consumer products and business products. Why are some products difficult to categorize as one or the other? Give an example of a business product, a consumer product, and a product that is difficult to categorize.

Accepted Answer

Consumer products are products purchased...

Question 4

Among business products, which of the following would most likely be considered accessory equipment?

Accepted Answer

A)  copper wiring
B)  a factory
C)  a cleaning service
D)  pneumatic nail gun
E)  ink-jet printer cartridgesF) A) and D)
G) B) and D)

Question 5

Which of the following firms uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources?

Accepted Answer

A)  IDEO
B)  Kickstarter.com
C)  Warren Buffet's Berkshire Hathaway
D)  the Industrial Design Group
E)  Unfundale.comF) A) and D)
G) B) and E)

Question 6

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

Accepted Answer

A)  did not satisfy customer needs on critical factors.
B)  had poor product quality.
C)  had bad timing.
D)  had an incomplete market and product protocol.
E)  had too little market attractiveness.F) A) and B)
G) B) and D)

Question 7

Inventory of services differs from that of products in what way?

Accepted Answer

A)  Time is less important to customers of services than customers of products.
B)  Only service inventory can be reduced through more efficient movement of products.
C)  There are larger costs associated with the handling of service inventory.
D)  Unlike goods providers, the service provider is often unavailable when there is a demand for the service.
E)  Service inventory costs are related to idle production capacity rather than storage or handling.F) B) and C)
G) A) and B)

Question 8

An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT:

Accepted Answer

A)  a business product.
B)  a nondurable good.
C)  a B2B product.
D)  a durable good.
E)  a consumer product.F) A) and E)
G) B) and E)

Question 9

Which of the following is the best example of a people-based service?

Accepted Answer

A)  movie theaters
B)  airlines
C)  accounting
D)  vending machines
E)  taxisF) B) and E)
G) B) and C)

Question 10

What do an online travel agency, a limousine service, and a railroad have in common?

Accepted Answer

A)  They are all strictly tangible services.
B)  They are all people-based services.
C)  None of them has a problem with idle production capacity.
D)  They are all equipment-based services.
E)  They all require skilled operators.F) C) and D)
G) A) and D)

Question 11

The first LCD (liquid crystal display)  flat-panel HD (high definition)  TV is an example of which type of innovation?

Accepted Answer

A)  continuous innovation
B)  dynamically continuous innovation
C)  discontinuous innovation
D)  insignificant innovation
E)  disruptive innovationF) B) and E)
G) All of the above

Question 12

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the HIGHEST level of risk?

Accepted Answer

A)  a radical invention
B)  a brand extension
C)  a product line extension
D)  a jump in innovation
E)  a product deletionF) D) and E)
G) A) and E)

Question 13

Which of the following best illustrates the concept of derived demand?

Accepted Answer

A)  The number of retail stores in a downtown area decreases even though demand for retail goods increases.
B)  An increase in the number of new, single-family homes results from a spike in the gross national product.
C)  A Chinese plastics company increases its output because of its customers' higher toy exports to the United States.
D)  A heat wave results in an increased demand for air conditioners.
E)  Honda reducing its car prices causes GM to do the sameF) A) and E)
G) B) and D)

Question 14

Explain why NOT all products can use test markets.

Accepted Answer

Not all products can use test markets. T...

Question 15

Simulated test markets (STMs)  are often run in shopping malls where consumers are

Accepted Answer

A)  asked how much a person is willing to pay for an unfamiliar item.
B)  asked whether they saw the firm's advertising campaign.
C)  questioned about how often they are likely to shop in that particular location.
D)  asked to identify differences between the consumer's behavioral intention and actual behavior regarding a firm's new product.
E)  questioned to identify product users and their likely consumption and media patterns.F) A) and C)
G) C) and D)

Question 16

Very infrequent purchases with some comparison shopping are characteristic of the purchasing behavior for a type of consumer product (such as a thesaurus)  that a prospective buyer may not initially want. This type of consumer service is referred to as a(n)

Accepted Answer

A)  unsought product.
B)  shopping product.
C)  convenience product.
D)  specialty product.
E)  support product.F) C) and E)
G) A) and E)

Question 17

Which of the following is considered an idea?

Accepted Answer

A)  haircut
B)  birdfeeder
C)  theater production
D)  marketing class
E)  securityF) A) and B)
G) None of the above

Question 18

Which stage in the new-product process is a SWOT analysis used to identify the strategic role the new product might serve in the firm's business portfolio?

Accepted Answer

A)  idea generation
B)  screening and evaluation
C)  business analysis
D)  development
E)  new-product strategy developmentF) A) and B)
G) C) and E)

Question 19

In terms of promotion, which of the following type of consumer product stresses status and brand uniqueness?

Accepted Answer

A)  specialty product
B)  convenience product
C)  shopping product
D)  unsought product
E)  discretionary productF) None of the above
G) A) and E)

Question 20

At the time of its introduction, which of the following products was the best example of a continuous innovation?

Accepted Answer

A)  home security system
B)  disposable lighter
C)  microwave oven
D)  electric toothbrush
E)  video cameraF) C) and E)
G) A) and D)

Exam 9: Developing New Products and Services

At the time of its introduction, which of the following products was the best example of a continuous innovation?

Correct AnswerverifiedShow Answer

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

Correct AnswerverifiedShow Answer

Identify and describe each stage in the new-product process in the correct order.

Correct AnswerverifiedThere are seven stages in the new-produc...View AnswerShow Answer

Which of the following is considered an idea?

Correct AnswerverifiedShow Answer

Which of the following is the best example of a people-based service?

Correct AnswerverifiedShow Answer

The first LCD (liquid crystal display) flat-panel HD (high definition) TV is an example of which type of innovation?

Correct AnswerverifiedShow Answer

What do an online travel agency, a limousine service, and a railroad have in common?

Correct AnswerverifiedShow Answer

Simulated test markets (STMs) are often run in shopping malls where consumers are

Correct AnswerverifiedShow Answer

Very infrequent purchases with some comparison shopping are characteristic of the purchasing behavior for a type of consumer product (such as a thesaurus) that a prospective buyer may not initially want. This type of consumer service is referred to as a(n)

Correct AnswerverifiedShow Answer

Inventory of services differs from that of products in what way?

Correct AnswerverifiedShow Answer

Which stage in the new-product process is a SWOT analysis used to identify the strategic role the new product might serve in the firm's business portfolio?

Correct AnswerverifiedShow Answer

Explain why NOT all products can use test markets.

Correct AnswerverifiedNot all products can use test markets. T...View AnswerShow Answer

Which of the following best illustrates the concept of derived demand?

Correct AnswerverifiedShow Answer

Among business products, which of the following would most likely be considered accessory equipment?

Correct AnswerverifiedShow Answer

An iMac personal computer from Apple can be classified according to all of the following categories EXCEPT:

Correct AnswerverifiedShow Answer

Which of the following firms uses crowdfunding to raise capital for products that are unlikely to get resources from traditional sources?

Correct AnswerverifiedShow Answer

From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the HIGHEST level of risk?

Correct AnswerverifiedShow Answer

Explain the difference between consumer products and business products. Why are some products difficult to categorize as one or the other? Give an example of a business product, a consumer product, and a product that is difficult to categorize.

Correct AnswerverifiedConsumer products are products purchased...View AnswerShow Answer

In terms of promotion, which of the following type of consumer product stresses status and brand uniqueness?

Correct AnswerverifiedShow Answer

Imagine you work for a TV production company that has been approached by one of the broadcast TV networks to develop a concept for a new reality show. Where are you most likely to look first for ideas?

Correct AnswerverifiedShow Answer

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There are seven stages in the new-produc...
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Not all products can use test markets. T...
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Consumer products are products purchased...
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