Which of the following statement is true of the idea generation stage in the new

Warning: TT: undefined function: 32 Principles of Marketing, 17e, Global Edition (Kotler/Armstrong) Chapter 9 Developing New Products and Managing the Product Life Cycle

1. Which of the following is a significant challenge presented by the product life cycle? A) increased expenses B) increased competition C) new product development D) evaluation of results E) recognizing the stages as a product goes through them Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 9: Explain how companies find and develop new product ideas. Difficulty: Easy

2. Acquisition refers to ________. A) the buying of a whole company, a patent, or a license to produce someone else's product B) an agreement between two or more commercial companies to produce a common product C) a partnership between two companies to produce a product in different countries by sharing risks D) investments made in a country's businesses by foreign citizens, often in the form of stocks E) the development of original products, product improvements, product modifications, and new brands through the firm's own product development strategies Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 9: Explain how companies find and develop new product ideas. Difficulty: Easy

3. Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________. A) new product development B) acquisition C) joint venture D) licensing contract E) divestment Answer: B AACSB: Application of knowledge Skill: Application Objective: LO 9: Explain how companies find and develop new product ideas. Difficulty: Moderate

1

1. Product improvements, product modifications, and original products can all be classified as ________. A) blueprints B) new products C) prototypes D) product extensions E) test products Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 9: Explain how companies find and develop new product ideas. Difficulty: Easy

2. Which of the following is a common reason for new product failure? A) incorrect estimation of the market size B) low product development costs C) ineffective social marketing campaigns D) low selling prices of products E) patent ownership exclusively held by the company Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 9: Explain how companies find and develop new product ideas. Difficulty: Moderate

3. A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure? A) The products were priced too high. B) The products were advertised incorrectly. C) Competitors fought back harder than expected. D) Product research was too extensive. E) The product development costs were high. Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 9: Explain how companies find and develop new product ideas. Difficulty: Challenging

2

1. New product development starts with ________. A) concept development B) idea screening C) idea generation D) concept testing E) test marketing Answer: C Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify? A) idea screening B) idea generation C) concept testing D) product development E) product manufacturing Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Challenging

3. Which of the following is an internal source for new product ideas? A) competitors B) company employees C) marketing research firms D) trade magazines E) government agencies Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

4

1. Many companies have developed ________ programs that encourage employees to develop new product ideas. A) management B) incentive C) entrepreneurial D) intrapreneurial E) crowdsourcing Answer: D Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. Why are customers often considered the most important sources of new product ideas? A) Customers are close to the market and can pass along information about problems and new product possibilities. B) The company can analyze customer questions and complaints to find new products that better solve consumer problems. C) Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase. D) Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives. E) Customers estimate the minimum and maximum sales to assess the range of risk. Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

3. Which of the following is an external source for ideas? A) project managers B) engineers C) salespeople D) manufacturing staff E) suppliers Answer: E Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

5

1. In the new product development process, the first idea-reducing stage is ________. A) business analysis B) idea generation C) concept development D) crowdsourcing E) idea screening Answer: E Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage. A) business analysis B) idea generation C) concept testing D) idea screening E) concept development Answer: D AACSB: Analytical thinking Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

3. Which of the following would most likely be included in an executive's write up of a new product idea to be presented to a new product committee? A) the proposed customer value proposition B) the product image C) the marketing strategy D) the business analysis E) the pricing strategy Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

7

1. Which of the following is NOT likely to be a question asked in the new product screening process? A) Is there a real need and desire for the product? B) Is there a clear product concept? C) Does the product offer a sustainable advantage? D) How many items will the company sell in the first two years? E) Does the product fit the company's overall growth strategy? Answer: D Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. Which of the following statements best explains why idea screening may be the most important step of new product development? A) It increases the number of ideas generated. B) It provides an opportunity for the marketer to test the prototype in a simulated market. C) It helps forecast the products' sales and profits accurately for a specific period. D) It gives research and development team members an opportunity to gather consumer feedback. E) It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable. Answer: E AACSB: Application of knowledge Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

3. A product idea is ________. A) the way consumers perceive an actual or potential product B) the knowledge and awareness of a product among consumers C) a possible product that the company can see itself offering to the market D) a detailed version of the new product idea stated in meaningful consumer terms E) the testing of new product concepts with groups of target consumers Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

8

1. JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________. A) idea B) displacement C) image D) activation E) placement Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Challenging

2. Which of the following groups do marketers involve for the process of concept testing new products? A) suppliers B) employees C) target consumers D) manufacturers E) competitors Answer: C AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

3. For concept test, companies will frequently present customers with ________ of the concept for a reliable concept test. A) a verbal description B) a PowerPoint slide C) a picture D) a physical presentation E) a printed paragraph Answer: D Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

10

1. Which of the following stages in the new product development would a firm engage in immediately after the completion of concept testing? A) idea screening B) marketing strategy development C) business analysis D) product development E) idea generation Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. What is included in the first part of a marketing strategy statement? A) distribution strategy B) product longevity C) long-run sales goals D) promotional mixes E) target market description Answer: E Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

3. Which of the following is included in the second part of the marketing strategy statement? A) advertising tagline B) promotional mix C) planned price D) customer segmentation E) operational excellence Answer: C Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

11

1. Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process. A) business transformation B) test marketing C) business analysis D) business process reengineering E) concept testing Answer: C AACSB: Application of knowledge Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. Which of the following statements is true of the new product development process? A) The purpose of the idea screening stage is to create a large number of ideas. B) Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage. C) A product concept is the way consumers perceive an actual or potential product. D) The concept testing stage is the stage at which the product and its proposed marketing program are introduced into realistic market settings. E) Commercialization is the process of inviting broad communities of people such as customers, employees, and scientists into the new product innovation process. Answer: B AACSB: Application of knowledge Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

3. Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________. A) conduct surveys of competitors B) exclusively consider the government's opinions C) consider the sales history of similar products D) apply the PLC concept to industry sales E) opt for business process reengineering Answer: C AACSB: Application of knowledge Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

13

1. Which figures does the company use to analyze the new product's financial attractiveness? A) size of population B) expected market share C) number of competitors D) anticipated number of options E) sales and costs Answer: E Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service? A) idea screening B) product development C) product activation D) marketing strategy development E) product design Answer: B AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

3. The product development stage requires ________. A) a huge jump in investment B) salespeople to contact potential customers C) financial analysis D) a few hours E) management approval Answer: A Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

14

1. In a ________, new products and marketing tactics are tested online in a virtual shopping environment. A) controlled test market B) simulated test market C) standard test market D) focus group E) survey Answer: B AACSB: Information technology Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. Starbucks introduced a less-than-perfect mobile payments app, then worked out the flaws after the launch. The company chose speed to market over a perfect app at introduction. This illustrates ________. A) why many companies engage in crowdsourcing B) the influence of fast-changing market developments C) why prototypes are so important D) how idea screening can make a product a commercial success E) the importance of different sources for idea generation Answer: B AACSB: Analytical thinking Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Challenging

3. Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use? A) controlled test markets B) simulated test markets C) standard test markets D) ambush marketing E) affinity marketing Answer: C AACSB: Analytical thinking Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Challenging

16

1. In a(n) ________, consumers interact with new products and marketing tactics in laboratory stores or virtual online shopping environments. A) standard test market B) focus group C) controlled test market D) simulated test market E) individual survey Answer: D Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores. A) controlled test market B) simulated test market C) standard test market D) systematic sample E) accidental sample Answer: A Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

3. All of the following are disadvantages of test marketing EXCEPT that test marketing ________. A) is typically expensive B) can be time consuming C) enables competitors to gain advantages D) encourages dishonesty among participants E) fails to guarantee product success in the market Answer: D AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

17

1. Introducing a new product into the market is called ________. A) test marketing B) simulation C) co-marketing D) commercialization E) segmentation Answer: D Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

2. P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new product development process before P&G could. A) commercialization B) co-marketing C) idea generation D) idea screening E) simulation Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Challenging

3. Which of the following involves costs that most likely occur during the commercialization stage of new product development? A) building or renting a manufacturing facility B) paying target customers for product feedback C) determining the product's planned distribution D) developing a prototype of the product E) identifying target markets Answer: A AACSB: Analytical thinking Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

19

1. A company getting ready to launch a new product must make several decisions. The company must first decide on ________. A) whether to launch the product in a single location B) whether to launch the product in a region C) whether to launch the product into full national distribution D) when to introduce the product E) when to develop a planned market rollout Answer: D AACSB: Application of knowledge Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Moderate

2. According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________. A) where to launch the new product B) how to launch the new product C) why to launch the new product D) what pricing strategies to implement E) what marketing mix elements to use Answer: A AACSB: Application of knowledge Skill: Concept Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Easy

3. Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________. A) timing B) location C) organizational structure D) test marketing E) product mix Answer: A AACSB: Analytical thinking Skill: Application Objective: LO 9: List and define the steps in the new product development process and the major considerations in managing this process. Difficulty: Challenging

20

What is the idea generation process for new product?

Which statement is most likely to be true about idea generation in the new product development process?

Which of the following is are a part of new product development process idea generation concept development and testing both A and B None of above?

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service *?