Chapter 10 Developing New Products And Services Exam Prep - Answer Key + Test Bank | Marketing 13th Edition by Kerin and Hartley by Roger A. Kerin, Steven W. Hartley. DOCX document preview.

Chapter 10 Developing New Products And Services Exam Prep

Chapter 10

Developing New Products and Services

 


Multiple Choice Questions
 

1.

The late Steve Jobs orchestrated innovations that revolutionized five different industries. Which industry below is not one of them? 
 

A. 

music

B. 

smartphones

C. 

personal computers

D. 

cable television

E. 

tablet computing

 

2.

The Apple innovation that leading car manufacturers are incorporating into their offerings that allows users to make calls, listen to music, and access messages by voice or touch while driving is referred to as 
 

A. 

iPod.

B. 

iCloud.

C. 

iCar.

D. 

iPad.

E. 

CarPlay.

 

3.

Product refers to 
 

A. 

a tangible good received in exchange for a person's time and effort.

B. 

intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

C. 

a good that has in some way been altered, combined, or improved and sold to organizational buyers.

D. 

a thought that leads to an action such as a concept for a new invention.

E. 

a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

 

4.

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as 
 

A. 

a utility bundle.

B. 

a product.

C. 

a service.

D. 

an idea.

E. 

merchandise.

 

5.

A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfy consumers' needs and is received in exchange 
 

A. 

only for legal tender (money).

B. 

for providing value.

C. 

only for barter.

D. 

for a person's time and effort.

E. 

for money or something else of value.

 

6.

A product is a good, service, or idea consisting of __________ that satisfy consumers' needs and is received in exchange for money or something else of value. 
 

A. 

a promise or commitment exchanged between a seller and a buyer

B. 

a bundle of tangible and intangible attributes

C. 

an assortment of value-possessing activities

D. 

an array of physical attributes

E. 

a collection of tangible qualities

 

7.

As a marketing term, __________ generally includes not only physical goods, but also services and ideas. 
 

A. 

marketing

B. 

invention

C. 

merchandise

D. 

product

E. 

concept

 

8.

A good has tangible attributes that a consumer's __________ can perceive. 
 

A. 

cognitive intelligence

B. 

vision

C. 

knowledge of past experiences

D. 

five senses

E. 

emotional intelligence

 

9.

A product that has tangible attributes that a consumer's five senses can perceive is referred to as 
 

A. 

a good.

B. 

a service.

C. 

a product concept.

D. 

a new idea.

E. 

an artifact.

 

10.

Goods can be divided into __________ goods and __________ goods. 
 

A. 

functional; aesthetic

B. 

required; desired

C. 

tactile; conceptual

D. 

durable; nondurable

E. 

product; service

 

11.

Which of the following statements regarding goods is most accurate? 
 

A. 

In order to be classified as a good, an item must appeal to all five senses.

B. 

Music is not considered a good because it only involves a single sense—hearing.

C. 

Some goods also have intangible attributes.

D. 

To market a good that contains visual attributes, you cannot use an auditory medium.

E. 

The aroma of chocolate chip cookies is considered an idea because it affects one's senses.

 

12.

The division of products into durable and nondurable goods helps to 
 

A. 

comply with NAICS guidelines.

B. 

address environmental concerns.

C. 

comply with ISO 9000 requirements.

D. 

classify products for tax purposes.

E. 

provide direction for marketing actions.

 

13.

Which of the following statements regarding goods is most accurate? 
 

A. 

Nondurable goods rely more on advertising than durable goods.

B. 

Durable goods benefit more from advertising than nondurable goods.

C. 

There is little, if any, difference between marketing actions for durable and nondurable goods.

D. 

Nondurable goods rely more on personal selling than durable goods.

E. 

The durable and nondurable classification applies to services as well as to products.

 

14.

A __________ is defined as an item consumed in one or a few uses. 
 

A. 

durable good

B. 

convenience good

C. 

specialty good

D. 

shopping good

E. 

nondurable good

 

15.

A nondurable good is defined as 
 

A. 

an item consumed in one or a few uses.

B. 

an item that usually lasts over an extended number of uses.

C. 

an item that lasts at least one year without becoming obsolete.

D. 

a product purchased only for the use of ultimate consumers.

E. 

a product used in the production of other products.

 

16.

Items consumed in one or a few uses, such as food and fuel, are referred to as 
 

A. 

services.

B. 

perishable goods.

C. 

durable goods.

D. 

nondurable goods.

E. 

disposable goods.

 

17.

Among consumer products, advertising is especially important for 
 

A. 

durable goods.

B. 

specialty products.

C. 

nondurable goods.

D. 

production goods.

E. 

semidurable goods.

 

18.

Which of the following is the best example of a nondurable good? 
 

A. 

laundry detergent

B. 

shoes

C. 

insurance

D. 

iPod

E. 

laser surgery

 

19.

Which of the following is the best example of a nondurable good? 
 

A. 

automobile

B. 

e-reader

C. 

baseball

D. 

gasoline

E. 

shoes

 

20.

Advertising is most important for which of the following products? 
 

A. 

bicycle

B. 

toaster

C. 

orange juice

D. 

deck furniture

E. 

watch

 

21.

A durable good is defined as 
 

A. 

an item consumed in one or a few uses.

B. 

an item that usually lasts over many uses.

C. 

an item that lasts at least one year without becoming obsolete.

D. 

a product purchased only for the use of ultimate consumers.

E. 

a product used in the production of other products.

 

22.

Products that usually last over many uses, such as cars and appliances, are referred to as 
 

A. 

endurable goods.

B. 

nondisposable goods.

C. 

imperishable goods.

D. 

reliable products.

E. 

durable goods.

 

23.

Cars and appliances are classified as 
 

A. 

reusable goods.

B. 

nondisposable goods.

C. 

imperishable goods.

D. 

reliable products.

E. 

durable goods.

 

24.

Durable goods emphasize which of the following elements of the promotional mix? 
 

A. 

sales promotion

B. 

personal selling

C. 

advertising

D. 

public relations

E. 

direct marketing

 

25.

Which of the following is considered a durable good? 
 

A. 

silverware

B. 

caviar

C. 

marketing research

D. 

chewing gum

E. 

voting

 

26.

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value are referred to as 
 

A. 

services.

B. 

goods.

C. 

products.

D. 

marketing mix.

E. 

ideas.

 

27.

Services refers to 
 

A. 

ideas that consist of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value.

B. 

intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

C. 

philanthropic activities performed without expectations of monetary remuneration.

D. 

any intangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

E. 

any tangible activity that provides a benefit to a consumer that he or she could not have obtained or performed on his or her own.

 

28.

Services are 
 

A. 

the tangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

B. 

the activities provided to complement a tangible good, such as technical support for a computer.

C. 

the intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

D. 

any activity required for the production of a good that cannot be completed "in-house" and must be outsourced to another firm.

E. 

the human (nonmechanical) component that is part of the manufacturing process.

 

29.

Intangible items such as airline trips, financial advice, or telephone service that an organization provides to consumers are referred to as 
 

A. 

production goods.

B. 

support products.

C. 

services.

D. 

goods.

E. 

benefits.

 

30.

Which of the following is considered a service? 
 

A. 

lamp

B. 

motorcycle

C. 

potato chips

D. 

a marketing class

E. 

environmentalism

 

31.

Which of the following is considered a service? 
 

A. 

online banking

B. 

bathing suit

C. 

silverware

D. 

washing machine

E. 

freedom

 

32.

Which of the following statements about services is most accurate? 
 

A. 

Although a major contributor to the GDP nationally, services play only a minor role in GDP on a global scale.

B. 

The marketing of services is, in a practical sense, identical to the marketing of products or ideas since they both satisfy customer needs.

C. 

Only 10 percent of all jobs created in the United States are in the services sector.

D. 

In the United States, services have become a significant part of the economy and often augment products.

E. 

There is much more in common with the marketing of services and business products than there is between the marketing of services and consumer products.

 

33.

In marketing, an idea is 
 

A. 

a thought that leads to a product or action.

B. 

an inspiration that evolved from market research.

C. 

an observation about a series of events.

D. 

a concept explaining the behavior of an individual or group.

E. 

an observation about an individual or group and how they use a service or product.

 

34.

In marketing, __________ is a thought that leads to a product or action. 
 

A. 

an observation

B. 

an inspiration

C. 

an innovation

D. 

an idea

E. 

a perception

 

35.

Which of the following is considered an idea? 
 

A. 

haircut

B. 

bird feeder

C. 

theater production

D. 

marketing class

E. 

security

 

36.

Consumer products refers to 
 

A. 

products used in the production of other items.

B. 

products purchased by the ultimate consumer.

C. 

products an industrial buyer will make an effort to seek out and buy.

D. 

items purchased frequently and with a minimum of shopping effort.

E. 

products that assist directly or indirectly in providing products for resale.

 

37.

Products that are purchased by the ultimate consumer are referred to as 
 

A. 

generic products.

B. 

end user goods.

C. 

personal items.

D. 

merchandise.

E. 

consumer products.

 

38.

Which of the following would most likely be considered a consumer product? 
 

A. 

bricks

B. 

cotton fiber

C. 

printing press

D. 

suitcases

E. 

mainframe computer

 

39.

Products organizations buy that assist in providing other products for resale are referred to as 
 

A. 

reseller goods.

B. 

wholesale goods.

C. 

business products.

D. 

ancillary products.

E. 

retail products.

 

40.

Business products refers to 
 

A. 

products organizations buy that assist in providing other products for resale.

B. 

supplies necessary for the day-to-day operations of a business.

C. 

ancillary services necessary for the operation of a business.

D. 

products that are sold exclusively to for-profit businesses.

E. 

products purchased by the ultimate consumer.

 

41.

Business products are also referred to as 
 

A. 

B2B products.

B. 

B2C products.

C. 

B4B products.

D. 

BOB products.

E. 

B4C products.

 

42.

Business products are also referred to as 
 

A. 

commodities.

B. 

industrial products.

C. 

wares.

D. 

resale products.

E. 

merchandise.

 

43.

Industrial products are also referred to as __________ products. 
 

A. 

consumer

B. 

merchandise

C. 

organizational

D. 

resale

E. 

business

 

44.

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

A. 

a business product.

B. 

a nondurable good.

C. 

a B2B product.

D. 

a durable good.

E. 

a consumer product.

 

45.

Consumer product classifications differ in terms of the: (1) effort the consumer spends on the decision, (2) frequency of purchase, and (3) ___________. 
 

A. 

amount of money the customer is willing and able to spend

B. 

number of competing or substitute products

C. 

demographics of the consumer

D. 

attributes used in making the purchase decision

E. 

consumer segmentation characteristics

 

46.

Convenience products refers to 
 

A. 

items that consumers will make special efforts to seek out and buy.

B. 

items for which consumers compare several alternatives on criteria such as price, quality, or style.

C. 

products consumers purchase frequently and with a minimum of shopping effort.

D. 

ancillary products used to make other products work more efficiently.

E. 

low-cost items for which there are numerous substitutes and generic equivalents.

 

47.

In terms of price, which of the following types of consumer product would be relatively inexpensive? 
 

A. 

shopping product

B. 

convenience product

C. 

specialty product

D. 

unsought product

E. 

supplies

 

48.

With respect to distribution, convenience products are available 
 

A. 

at relatively few outlets.

B. 

at a large number of specialty outlets.

C. 

only online from the manufacturer.

D. 

only at convenience stores.

E. 

on a widespread basis at many outlets.

 

49.

In terms of promotion, which of the following type of product would stress price, availability, and awareness? 
 

A. 

shopping

B. 

convenience

C. 

specialty

D. 

unsought

E. 

supply

 

50.

In terms of brand loyalty, consumers are aware of a brand but will readily accept substitutes for which type of product? 
 

A. 

convenience products

B. 

specialty products

C. 

unsought products

D. 

shopping products

E. 

supplies

 

51.

Which of the following is the best example of a convenience product? 
 

A. 

Kindle Fire

B. 

Lexus LS 460 luxury automobile

C. 

flight on United Airlines

D. 

Roget's Thesaurus

E. 

Hidden Valley Ranch salad dressing

 

52.

Items for which the consumer compares several alternatives on several criteria such as price, quality, or style are referred to as 
 

A. 

specialty products.

B. 

selective products.

C. 

shopping products.

D. 

prestige products.

E. 

convenience products.

 

53.

Shopping products refers to items that the consumer 
 

A. 

purchases frequently, conveniently, and with a minimum of effort.

B. 

compares several alternatives on criteria such as price, quality, or style.

C. 

makes a special effort to search out and buy.

D. 

does not know about or knows about but does not initially buy.

E. 

buys as a result of buying others' consumer products, such as impulse purchases.

 

54.

The type of good for which the consumer compares several alternatives on such criteria as price, quality, and style is 
 

A. 

a shopping product.

B. 

a convenience product.

C. 

a specialty product.

D. 

an unsought product.

E. 

a B2B product.

 

55.

Which type of consumer product is purchased relatively infrequently and the purchase decision takes some time because the consumer compares offerings during the shopping experience? 
 

A. 

convenience product

B. 

shopping product

C. 

specialty product

D. 

unsought product

E. 

discretionary product

 

56.

With respect to distribution, shopping products are available 
 

A. 

by special order from the manufacturer.

B. 

at an extremely small number of outlets.

C. 

at relatively few outlets.

D. 

at a large number of selective outlets.

E. 

on a widespread basis at many outlets.

 

57.

With respect to price and availability, shopping products are likely to be 
 

A. 

relatively inexpensive and widely available.

B. 

relatively inexpensive but very limited availability.

C. 

very expensive and available at a large number of selective outlets.

D. 

very expensive with very limited availability.

E. 

fairly expensive and available at a large number of selective outlets.

 

58.

In terms of promotion, which of the following type of consumer product stresses product differentiation from competitors? 
 

A. 

shopping product

B. 

convenience product

C. 

specialty product

D. 

unsought product

E. 

discretionary product

 

59.

In terms of brand loyalty, consumers prefer specific brands but will accept substitutes for which type of consumer product? 
 

A. 

shopping product

B. 

convenience product

C. 

specialty product

D. 

unsought product

E. 

discretionary product

 

60.

You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test-drive different makes and models, and compare prices at several dealerships. Into which classification of consumer products would your new car purchase fall? 
 

A. 

specialty product

B. 

unsought product

C. 

discretionary product

D. 

shopping product

E. 

convenience product

 

61.

Specialty products refers to 
 

A. 

products for which there are many substitutes.

B. 

products purchased for their prestige or high perceived value.

C. 

products a consumer will make a specific effort to search out and buy.

D. 

items for which the consumer compares several alternatives on several criteria such as price, quality, or style.

E. 

items that the consumer does not know about or knows about but does not initially buy.

 

62.

Which type of consumer product is purchased infrequently and takes an extensive amount of time to make the purchase decision? 
 

A. 

convenience product

B. 

shopping product

C. 

specialty product

D. 

unsought product

E. 

discretionary product

 

63.

With respect to price, which of the following type of consumer product would usually be very expensive? 
 

A. 

convenience product

B. 

shopping product

C. 

discretionary product

D. 

specialty product

E. 

unsought product

 

64.

Distribution is very limited with which of the following type of consumer product? 
 

A. 

shopping product

B. 

convenience product

C. 

discretionary product

D. 

prepurchase product

E. 

specialty product

 

65.

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

A. 

specialty product

B. 

convenience product

C. 

shopping product

D. 

unsought product

E. 

discretionary product

 

66.

In terms of brand loyalty, consumers are very brand loyal and will not accept substitutes for which type of consumer product? 
 

A. 

shopping product

B. 

convenience product

C. 

specialty product

D. 

unsought product

E. 

discretionary product

 

67.

You greatly admire a set of Waterford crystal serving bowls you see at a dinner party and decide to buy two despite their cost of $250 each. They are only available in your area in a Waterford shop 40 miles from campus. Into which classification of consumer products would the Waterford crystal serving bowls fall? 
 

A. 

convenience products

B. 

shopping products

C. 

unsought products

D. 

specialty products

E. 

discretionary products

 

68.

Burberry makes fine raincoats, clothing, and other items, many that feature the company's distinctive plaid. Originally found only in Great Britain, Burberry has opened a limited number of exclusive shops in leading cities around the world to reach customers who value its name and quality. Burberry is selling which classification of consumer product? 
 

A. 

convenience product

B. 

shopping product

C. 

discretionary product

D. 

unsought product

E. 

specialty product

 

69.

Unsought products are 
 

A. 

any products associated with impulse buys at the supermarket checkout counter.

B. 

products that were once very popular but that have become obsolete because they are in the decline stage of their product life cycle.

C. 

items within a company's product line that do not perform as well as others in the line.

D. 

products that the consumer does not know about or knows about but does not initially want.

E. 

products that people choose to ignore because they find them offensive from a moral or ethical perspective.

 

70.

Which of the following is most likely to be an example of an unsought product? 
 

A. 

snow shovel

B. 

smartphone

C. 

gym membership

D. 

calculator

E. 

burial insurance

 

71.

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. 

an unsought product.

B. 

a shopping product.

C. 

a convenience product.

D. 

a specialty product.

E. 

a support product.

 

72.

With respect to promotion, which of the following strategies would most likely be used for unsought products? 
 

A. 

offering consumer and trade sales promotions

B. 

establishing the uniqueness and status of the brand

C. 

generating awareness

D. 

differentiating the brand from competitive brands

E. 

stressing price and availability in advertising

 

73.

Which of the following is most likely to be an example of an unsought product? 
 

A. 

iPod MP3 player

B. 

Lexus LS 460 luxury automobile

C. 

flight on American Airlines to Phoenix

D. 

Roget's Thesaurus

E. 

Ivory soap

 

74.

A newly invented apple peeling and coring machine for the consumer market would be considered 
 

A. 

a shopping product.

B. 

a convenience product.

C. 

a specialty product.

D. 

an unsought product.

E. 

a discretionary product.

 

75.

Fifty percent or more of American adults have not had their teeth checked by a dentist within the past five years. For these people, dental services would most likely be classified as 
 

A. 

a shopping product.

B. 

a convenience product.

C. 

a specialty product.

D. 

an unsought product.

E. 

a business product.

 

76.

_____________ are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort. 
 

A. 

Shopping products

B. 

Convenience products

C. 

Specialty products

D. 

Prestige products

E. 

Unsought products

 

77.

_______________ are items for which the consumer compares several alternatives on criteria such as price, quality, or style. 
 

A. 

Shopping products

B. 

Convenience products

C. 

Specialty products

D. 

Prestige products

E. 

Unsought products

 

78.

___________ are items that the consumer makes a special effort to search out and buy. 
 

A. 

Shopping products

B. 

Convenience products

C. 

Specialty products

D. 

Prestige products

E. 

Unsought products

 

79.

_____________ are items that the consumer does not know about or knows about but does not initially want. 
 

A. 

Shopping products

B. 

Convenience products

C. 

Specialty products

D. 

Prestige products

E. 

Unsought products

 

80.

Considering the classification of consumer products, which of the following products will have the most limited distribution? 
 

A. 

Secret antiperspirant

B. 

Fuji disposable camera

C. 

BP gasoline

D. 

Marchesa wedding gown

E. 

Sony HDTV

 

81.

Vivienne, a college student with limited financial resources, was considering the purchase of a new automobile. She went from car dealer to car dealer in several different cities searching for the lowest price on a new economy car. She devoted a great deal of time and energy to getting the best value for her money. For Vivienne, an automobile was 
 

A. 

a specialty product.

B. 

an unsought product.

C. 

a discretionary product.

D. 

a shopping product.

E. 

a convenience product.

 

82.

The demand for a business product that results from the demand for a consumer product is referred to as 
 

A. 

sequential demand.

B. 

selective demand.

C. 

primary demand.

D. 

secondary demand.

E. 

derived demand.

 

83.

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

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 same.

 

84.

As consumer demand for Ford cars (a consumer product) increases, the company may increase its demand for paint spraying equipment (a business product). This is an example of 
 

A. 

a tying arrangement.

B. 

reciprocity.

C. 

strategic alliance demand.

D. 

relationship marketing.

E. 

derived demand.

 

85.

The two main classifications of business products are 
 

A. 

durable and nondurable products.

B. 

components and support products.

C. 

tangible and intangible products.

D. 

consumer and industrial products.

E. 

derived and maintenance products.

 

86.

__________ are items that become part of the final business product. 
 

A. 

Components

B. 

Accessories

C. 

Support products

D. 

Production goods

E. 

Raw assemblies

 

87.

Raw materials, such as grain or lumber as well as assemblies or parts, are referred to as 
 

A. 

production goods.

B. 

components.

C. 

accessories.

D. 

support products.

E. 

raw assemblies.

 

88.

Installations, accessory equipment, supplies, and industrial services used to assist in producing other products and services are referred to as 
 

A. 

components.

B. 

parts.

C. 

production goods.

D. 

raw materials.

E. 

support products.

 

89.

Products such as tools and repair services that are used to assist in producing other products and services are referred to as 
 

A. 

components.

B. 

complementary products.

C. 

support products.

D. 

derived products.

E. 

materials.

 

90.

The type of business products known as support products includes installations, accessory equipment, supplies, and 
 

A. 

industrial services.

B. 

components.

C. 

materials.

D. 

derived products.

E. 

complementary products.

 

91.

The type of business products known as support products includes installations, industrial services, supplies, and 
 

A. 

accessory equipment.

B. 

components.

C. 

derived products.

D. 

complementary products.

E. 

materials.

 

92.

The type of business products known as support products includes installations, industrial services, accessory equipment, and 
 

A. 

components.

B. 

supplies.

C. 

materials.

D. 

derived products.

E. 

complementary products.

 

93.

The type of business products known as support products includes installations, supplies, accessory equipment, and 
 

A. 

complementary products.

B. 

materials.

C. 

industrial services.

D. 

derived products.

E. 

components.

 

94.

Among business products, support products include installations such as 
 

A. 

convenience products.

B. 

buildings and fixed equipment.

C. 

tools and office equipment.

D. 

raw materials and component parts.

E. 

maintenance, repair, and legal services.

 

95.

Installations are support products that include items such as 
 

A. 

copy paper, mechanical pencils, and lightbulbs.

B. 

welding masks and computers.

C. 

warehouses and automated assembly lines.

D. 

lumber and engine parts.

E. 

janitorial and legal services.

 

96.

Among business products, which of the following would most likely be considered an installation? 
 

A. 

a factory

B. 

roof tiles

C. 

a cleaning service

D. 

a photocopier

E. 

a drill press

 

97.

An extremely large machine for producing sheet metal from steel ingots would be classified as which kind of business product? 
 

A. 

installations

B. 

finished goods

C. 

supplies

D. 

industrial services

E. 

raw materials

 

98.

Accessory equipment are support products that include items such as 
 

A. 

stationery, paper clips, and brooms.

B. 

tools and office equipment.

C. 

buildings and fixed equipment.

D. 

raw materials and component parts.

E. 

maintenance, repair, and legal services.

 

99.

Among business products, support products that include tools and office equipment are referred to as 
 

A. 

installations.

B. 

supplies.

C. 

raw materials.

D. 

accessory equipment.

E. 

components.

 

100.

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

A. 

copper wiring

B. 

a factory

C. 

a cleaning service

D. 

pneumatic nail gun

E. 

ink-jet printer cartridges

 

101.

Among business products, drafting tables would be best considered which type of support product? 
 

A. 

installations

B. 

accessory equipment

C. 

supplies

D. 

industrial services

E. 

raw materials

 

102.

Supplies are support products that include items such as 
 

A. 

stationery, paper clips, and brooms.

B. 

tools and office equipment.

C. 

buildings and fixed equipment.

D. 

raw materials and component parts.

E. 

maintenance, repair, and legal services.

 

103.

Among business products, supplies usually consist of 
 

A. 

buildings and fixed equipment.

B. 

items used in the manufacturing process that become part of the final product.

C. 

tools and office equipment.

D. 

items such as pens, batteries, and lightbulbs.

E. 

raw materials and component parts.

 

104.

Among business products, printer paper would be classified as which type of support product? 
 

A. 

installations

B. 

accessory equipment

C. 

supplies

D. 

industrial services

E. 

raw materials

 

105.

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

A. 

photocopier

B. 

drywall

C. 

ink-jet printer cartridges

D. 

cleaning service

E. 

concert hall chairs

 

106.

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

A. 

laser printer

B. 

phosphoric acid

C. 

cleaning service

D. 

magnetic resonance imaging (MRI) scanner

E. 

trash bags

 

107.

Industrial services are support products that include items such as 
 

A. 

stationery, paper clips, and brooms.

B. 

tools and office equipment.

C. 

buildings and fixed equipment.

D. 

raw materials and component parts.

E. 

maintenance, repair, and legal services.

 

108.

Among business products, which of the following would most likely be considered an industrial service? 
 

A. 

tractor

B. 

phosphoric acid

C. 

photocopier maintenance

D. 

athletic training facility

E. 

syringes

 

109.

When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased 
 

A. 

an ancillary service.

B. 

an industrial service.

C. 

a specialty service.

D. 

an accessory service.

E. 

a contractual service.

 

110.

Among business products, legal counsel for patent information for a firm's R&D department would most likely be classified as which type of support product? 
 

A. 

ancillary services

B. 

contractual services

C. 

specialty services

D. 

accessory services

E. 

industrial services

 

111.

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain purchased which kind of business products? 
 

A. 

accessory equipment

B. 

industrial services

C. 

supply materials

D. 

component parts

E. 

installations

 

112.

Services can be classified by 
 

A. 

their method of delivery.

B. 

their use of idle capacity time.

C. 

the nature of their ownership.

D. 

their location on perceptual maps.

E. 

organizational reach.

 

113.

Services can be classified according to whether they are __________, business firms or nonprofit organizations, or government agencies. 
 

A. 

national or global

B. 

independent contractors

C. 

privately owned or publicly owned

D. 

delivered by people or equipment

E. 

owned by individuals or corporations

 

114.

Services can be classified according to whether they are delivered by people or equipment, __________, or government agencies. 
 

A. 

national or global

B. 

use independent contractors

C. 

privately owned or publicly owned

D. 

owned by individuals or corporations

E. 

business firms or nonprofit organizations

 

115.

Services can be classified according to whether they are delivered by people or equipment, business firms or nonprofit organizations, or 
 

A. 

a national organization or a global organization.

B. 

privately owned or publicly owned.

C. 

performed by independent contractors.

D. 

owned by individuals or corporations.

 

116.

The term product class refers to 
 

A. 

the NAICS designation of an individual product or brand.

B. 

the designation of an individual product based upon its form.

C. 

a variation of a product within a product mix.

D. 

the designation of a product based on whether it is a consumer product or business product.

E. 

the industry a set of offerings belongs to.

 

117.

Variations of a product (shape, configuration) within a product class are referred to as the 
 

A. 

product form.

B. 

product item.

C. 

product line.

D. 

product class.

E. 

product mix.

 

118.

Product item refers to 
 

A. 

the variations within a product class.

B. 

the entire product category or industry.

C. 

a group of SKUs that are closely related.

D. 

a specific product that has a unique brand, size, or price.

E. 

the services offered by an organization.

 

119.

The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give to each other on Valentine's Day. The Love Bandit Bear is an example of a 
 

A. 

product item.

B. 

product mix.

C. 

product class.

D. 

product form.

E. 

product line.

 

120.

A(n) __________ is the unique identification number that defines an item for ordering or inventory purposes. 
 

A. 

unique stock mark

B. 

QR code

C. 

stock keeping unit

D. 

order quantity code

E. 

NAICS stock code

 

121.

The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion imaginable. The Love Bandit Bear is designed for people to give on Valentine's Day. The unique identification number that the Vermont Teddy Bear Co. uses to distinguish this teddy bear from the others in order to track it in the warehouse is called 
 

A. 

a stock ID code.

B. 

a QR code.

C. 

an NAICS stock code.

D. 

an order quantity code.

E. 

a stock keeping unit.

 

122.

A group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range is referred to as a 
 

A. 

product class.

B. 

product mix.

C. 

product category.

D. 

marketing category.

E. 

product line.

 

123.

A __________ is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. 
 

A. 

product item

B. 

product line

C. 

product mix

D. 

product class

E. 

product form

 

124.

Product line refers to 
 

A. 

a product and all its ancillary services (warranties, financing, etc.).

B. 

the variations within a product class.

C. 

a specific product SKU that has a unique brand, size, or price.

D. 

a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.

E. 

the entire product category or industry.

 

125.

A product line is a group of product or service items that are closely related because they satisfy a class of needs, __________, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range. 
 

A. 

are made of similar components

B. 

are used together

C. 

have one SKU number

D. 

require high levels of R&D

E. 

are made from the same formulations

 

126.

A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, __________, are distributed through the same type of outlets, or fall within a given price range. 
 

A. 

are made of similar components

B. 

require high levels of R&D

C. 

are sold to the same customer group

D. 

are made from the same formulations

E. 

have one SKU number

 

127.

A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, __________, or fall within a given price range. 
 

A. 

are made of similar components

B. 

are made from the same formulations

C. 

require high levels of R&D

D. 

have one SKU number

E. 

are distributed through the same type of outlets

 

128.

A product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or 
 

A. 

are made of similar components.

B. 

fall within a given price range.

C. 

are made from the same formulations.

D. 

are identical except for price.

E. 

require high levels of R&D.

 

129.

Which of the following statements about product lines is most accurate? 
 

A. 

An advantage of a narrow product line is the ability to have a greater gap between price points.

B. 

Product lines refer to consumer products; product mixes refer to industrial products.

C. 

An advantage of broad product lines is increased likelihood of access to large retail chain distribution.

D. 

A benefit of having a narrow product line is that it enables both consumers and retailers to simplify their buying decisions.

E. 

A broad product line reduces R&D costs.

 

130.

Which of the following is an example of a product line? 
 

A. 

Scope mouthwash

B. 

Zephyrhills natural spring water in eight-ounce bottles

C. 

The Yellow Pages for Gainesville, Florida

D. 

Hallmark Mother's Day, Father's Day, and Grandparent's Day cards

E. 

Apple iPad

 

131.

The Vermont Teddy Bear Co. sells handmade teddy bears designed to be given as gifts for almost every occasion. For the Vermont Teddy Bear Co., teddy bears are an example of a 
 

A. 

product class.

B. 

product mix.

C. 

SKU.

D. 

marketing category.

E. 

product line.

 

132.

During a recent shopping trip to Target, Carlie noticed that the store offered many Glad products, including many different types of trash bags and a large variety of food storage containers. For Glad, each of these two product groupings is an example of a 
 

A. 

product line.

B. 

product item.

C. 

product mix.

D. 

product industry.

E. 

product class.

 

133.

All of the different product lines offered by an organization are collectively referred to as a 
 

A. 

product class.

B. 

product mix.

C. 

product SKUs.

D. 

marketing mix.

E. 

target mix.

 

134.

Product mix refers to 
 

A. 

all of the different product lines offered by an organization.

B. 

the variations within a product class.

C. 

a specific product SKU that has a unique brand, size, or price.

D. 

a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.

E. 

the entire product category or industry.

 

135.

Procter & Gamble has a large __________ that includes product groupings such as beauty and grooming (Crest toothpaste and Gillette razors), household care (Downy fabric softener and Tide detergent), and Pampers diapers. 
 

A. 

marketing mix

B. 

product class

C. 

product items

D. 

product lines

E. 

product mix

 

136.

A company's product mix is equal to the sum of its 
 

A. 

marketing mix.

B. 

product class.

C. 

product items.

D. 

product lines.

E. 

SKUs.

 

137.

Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauces, and salad dressings under the Newman's Own brand name. These product lines comprise the company's 
 

A. 

product mix.

B. 

stock keeping units.

C. 

product category.

D. 

product class.

E. 

marketing category.

 

138.

The relationship between a product line and product mix is 
 

A. 

product mixes include product lines.

B. 

product lines include product mixes.

C. 

product lines refer to consumer products; product mixes refer to business products.

D. 

product mixes refer to consumer products; product lines refer to industrial products.

E. 

there is no significant difference other than minor product variations of color, size, or form.

 

139.

Feature bloat is 
 

A. 

an exaggeration of a product's performance capabilities.

B. 

the overcharging in price for a minor product enhancement.

C. 

the requirement of having consumers learn new behaviors with a continuous innovation.

D. 

an excessive number of product attributes that overwhelms consumers with unnecessary complexity.

E. 

the increase in package size when adding more content or making it larger (the mega phenomenon).

 

140.

The proliferation of extra characteristics in a product that overwhelms many consumers with mind-boggling complexity is referred to as 
 

A. 

feature overkill.

B. 

product line extension.

C. 

feature bloat.

D. 

sensory overload.

E. 

product differentiation.

 

141.

According to Robert Stephens of the Geek Squad, the biggest complaint about technical support people is 
 

A. 

their inability to communicate in laymen's terms.

B. 

that they are difficult to understand.

C. 

that they take too long to answer the telephone.

D. 

that they lack product knowledge.

E. 

that they are rude and egotistical.

 

142.

A product can be classified as new from all of the following perspectives except 
 

A. 

the organization's.

B. 

existing offerings.

C. 

legal.

D. 

the firm's competitors.

E. 

the consumer's.

 

143.

A product can be classified as new if it __________ from existing products. 
 

A. 

is functionally different

B. 

is different in color

C. 

is different in its packaging

D. 

is different in price

E. 

requires a different distribution channel

 

144.

An important way of defining new products is in terms of their effects on consumption. This approach classifies new products according to 
 

A. 

the price.

B. 

the extent of media promotion.

C. 

the degree of potential product cannibalization.

D. 

the presence of feature bloat.

E. 

the degree of learning required by the consumer.

 

145.

A product that is new in some way but requires no new behaviors to be learned by consumers is a 
 

A. 

continuous innovation.

B. 

discontinuous innovation.

C. 

dynamically continuous innovation.

D. 

product transformation.

E. 

concurrent innovation.

 

146.

The emphasis of a marketing strategy for a continuous innovation concentrates on 
 

A. 

obtaining narrow distribution.

B. 

setting a low price.

C. 

generating awareness.

D. 

using reminder advertising to reeducate consumers.

E. 

using personal selling.

 

147.

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

A. 

home security system

B. 

disposable lighter

C. 

microwave oven

D. 

electric toothbrush

E. 

video camera

 

148.

Wrigley's new Alert Energy Caffeine Gum "offers a portable solution that lets adults control their caffeine intake." This new gum is most likely which type of innovation? 
 

A. 

continuous innovation

B. 

dynamically continuous innovation

C. 

discontinuous innovation

D. 

insignificant innovation

E. 

disruptive innovation

 

149.

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

A. 

The first Apple iPhone

B. 

Atari, the first video game system

C. 

Sunsilk Silky Straight shampoo and conditioner with tip-targeting technology

D. 

Dragon Naturally Speaking voice-recognition software

E. 

Naturalpoint Trakir, which replaces the computer mouse by tracking head movements and then translating those head movements into cursor commands

 

150.

The addition of Clorox II bleach to Tide laundry detergents is an example of a 
 

A. 

discontinuous innovation.

B. 

bundled innovation.

C. 

dynamically continuous innovation.

D. 

disruptive innovation.

E. 

continuous innovation.

 

151.

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

A. 

continuous innovation

B. 

dynamically continuous innovation

C. 

discontinuous innovation

D. 

insignificant innovation

E. 

disruptive innovation

 

152.

A product that disrupts consumers' normal routine but does not require totally new learning is a 
 

A. 

continuous innovation.

B. 

dynamically continuous innovation.

C. 

discontinuous innovation.

D. 

progressive innovation.

E. 

disruptive innovation.

 

153.

The emphasis of a marketing strategy for a dynamically continuous innovation would include 
 

A. 

advertising to generate awareness.

B. 

obtaining widespread distribution.

C. 

advertising to explain points of difference and benefits.

D. 

setting a low price.

E. 

using personal selling.

 

154.

LG Electronics Inc. has entered into an agreement with Google to offer selected smartphone models that use a multitouch interface rather than buttons to make calls with Google's Android operating system. When the multitouch interface was first introduced, it was an example of which type of innovation? 
 

A. 

continuous innovation

B. 

discontinuous innovation

C. 

disruptive innovation

D. 

dynamically continuous innovation

E. 

evolutionary innovation

 

155.

Pasta sauces have been on the market for years. These sauces have always required the pasta to be precooked before it is mixed with the sauces and other ingredients. The development of Prego Pasta Bake Sauce that does not require the use of precooked pasta would be an example of 
 

A. 

a continuous innovation.

B. 

a discontinuous innovation.

C. 

an evolutionary innovation.

D. 

a disruptive innovation.

E. 

a dynamically continuous innovation.

 

156.

Philips Sonicare recently introduced the DiamondClean rechargeable toothbrush. A key innovation is its Quadpacer interval timer that goes off after 30 seconds to prompt the user to move on to the next quadrant of the mouth, resulting in better cleaning and improved gum health. This is an example of which type of innovation? 
 

A. 

disruptive innovation

B. 

continuous innovation

C. 

discontinuous innovation

D. 

dynamically continuous innovation

E. 

evolutionary innovation

 

157.

LG Electronics recently introduced the Fridge-TV with a 15-inch television screen mounted in the right-hand side refrigerator door. This is an example of which type of innovation? 
 

A. 

inventive innovation

B. 

continuous innovation

C. 

discontinuous innovation

D. 

dynamically continuous innovation

E. 

continuous invention

 

158.

A product that requires the learning of entirely new consumption patterns among consumers is referred to as 
 

A. 

a continuous innovation.

B. 

a discontinuous innovation.

C. 

a dynamically continuous innovation.

D. 

an evolutionary innovation.

E. 

a progressive innovation.

 

159.

A discontinuous innovation is a product that 
 

A. 

disrupts consumers' normal routine but does not require totally new learning.

B. 

requires no new learning by consumers.

C. 

is not purchased by innovators and early adopters.

D. 

initiates obsolescence of a product class.

E. 

requires consumers to learn entirely new patterns of behavior and product usage.

 

160.

The emphasis of a marketing strategy for a discontinuous innovation would most likely be to 
 

A. 

generate awareness among consumers.

B. 

advertise benefits to consumers that stress points of differentiation.

C. 

educate consumers about new consumption patterns through personal selling.

D. 

obtain widespread distribution in multiple channels.

E. 

stress price differentials from competitors' products.

 

161.

Which of the following products at the time of its introduction was the best example of a discontinuous innovation? 
 

A. 

DVD player

B. 

disposable lighters

C. 

instant light charcoal

D. 

liquid laundry detergent

E. 

automatic dishwashers

 

162.

In the early 1900s, your great-great-grandfather probably purchased his first automobile. After years of driving a horse and buggy, he got into his new car and drove it into his new garage. The new automobile was an example of 
 

A. 

a continuous innovation.

B. 

a dynamically continuous innovation.

C. 

a disruptive improvement.

D. 

a discontinuous innovation.

E. 

an evolutionary innovation.

 

163.

Napster was the first software that allowed an individual to easily search for and exchange MP3 music files with other individuals (in some cases illegally). When it was introduced, Napster would have been an example of a 
 

A. 

discontinuous innovation.

B. 

continuous innovation.

C. 

dynamically continuous innovation.

D. 

regulatory innovation.

E. 

disruptive improvement.

 

164.

Dragon Naturally Speaking, a speech recognition software program that allows you to use your voice instead of a keyboard to input text into a word processing program, is an example of 
 

A. 

a continuous innovation.

B. 

a discontinuous innovation.

C. 

a dynamically continuous innovation.

D. 

a disruptive improvement.

E. 

an evolutionary innovation.

 

165.

When marketing efforts usually involve not only gaining initial consumer awareness but also educating consumers on both the benefits and proper use of the product, this represents 
 

A. 

a spontaneous innovation.

B. 

a continuous innovation.

C. 

a discontinuous innovation.

D. 

a dynamically continuous innovation.

E. 

an evolutionary innovation.

 

166.

When only minor changes in a consumer's behavior are required to adopt a product innovation, this represents 
 

A. 

a continuous innovation.

B. 

a discontinuous innovation.

C. 

a disruptive innovation.

D. 

a dynamically continuous innovation.

E. 

an evolutionary innovation.

 

167.

When extra features are added and consumers don't need to learn new behaviors, this represents a 
 

A. 

continuous innovation.

B. 

discontinuous innovation.

C. 

dynamically continuous innovation.

D. 

spontaneous innovation.

E. 

simultaneous innovation.

 

168.

The Federal Trade Commission (FTC) considers a product new only 
 

A. 

for a period of one year after it enters widespread distribution.

B. 

if it is functionally different from a competitor's product.

C. 

until a new and improved version of the same product is produced.

D. 

for a period of six months after it enters regular distribution.

E. 

for a period of 17 years at which time patent rights are returned to the public domain.

 

169.

Prego recently introduced a Pasta Bake Sauce, which was made so that it was not necessary to precook the pasta before blending pasta, sauce, meat, and cheese in a casserole. Legally, this product would only be considered new 
 

A. 

for the first six months that it was regularly available at a variety of grocery stores.

B. 

until a competitor such as Ragu had issued a similar product targeted to the same market.

C. 

as long it retained these exact product characteristics.

D. 

if it was functionally the same as its salsa sauce.

E. 

until its advertising had been seen by every member of its target audience.

 

170.

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

A. 

a radical invention

B. 

a brand extension

C. 

a product line extension

D. 

a jump in innovation

E. 

a product refinancing

 

171.

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

A. 

a radical invention

B. 

a brand extension

C. 

a product line extension

D. 

a jump in innovation

E. 

a product deletion

 

172.

Mr. Clean is an antibacterial cleaning liquid for home use. If Procter & Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as 
 

A. 

a discontinuous innovation.

B. 

a new product from the company's perspective because it is a product line extension.

C. 

a high-risk product mix extension because it is new to the market.

D. 

new by the Federal Trade Commission for the usual one-year period.

E. 

not a new product because it does not represent a different SKU.

 

173.

Which of the following new products is the best example of the lowest level of risk from the company's point of view? 
 

A. 

adding Ball Park Beef Franks with Cheese to the Ball Park Franks line

B. 

moving from production of landline telephones to smartphones

C. 

marketing the first Apple computer

D. 

changing the formula from Coca-Cola to New Coke and then back to Coca-Cola Classic

E. 

offering online marketing classes rebranded under a new college name

 

174.

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar product category seems like a good idea. This is what toothpaste manufacturer Colgate did when it put its brand name on __________, which failed quickly. 
 

A. 

aspirin

B. 

frozen dinners

C. 

disposable underwear

D. 

soda (soft drink)

E. 

perfume

 

175.

A few years ago, Frito-Lay developed Frito-Lay Lemonade as a thirst-quencher for those consumers who also like Frito-Lay's salty snacks such as Fritos Corn Chips. But when people think of the brand name Frito-Lay, thirst-quenching is not a benefit that comes to mind and Frito-Lay Lemonade failed. This innovation strategy is known as a 
 

A. 

brand extension.

B. 

radical invention.

C. 

product line extension.

D. 

disruptive innovation.

E. 

product deletion.

 

176.

Using an existing brand name to introduce a product that is new to the company into a totally new, unfamiliar market seems like a good idea. Several years ago, Harley-Davidson introduced perfume under the Harley-Davidson brand name and it failed quickly. This innovation strategy is known as a 
 

A. 

radical invention.

B. 

product line extension.

C. 

disruptive innovation.

D. 

product deletion.

E. 

brand extension.

 

177.

A new-product or service protocol is 
 

A. 

the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product.

B. 

a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold.

C. 

maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC).

D. 

a statement that identifies a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.

E. 

the raw unwritten ideas to produce a single commercially successful new product.

 

178.

A statement that identifies a well-defined target market; specific customers' needs, wants, and preferences; and what the product will be and do to satisfy consumers is referred to as a new product's or service's 
 

A. 

protocol.

B. 

proposition.

C. 

modus operandi.

D. 

formula.

E. 

methodology.

 

179.

Ideally, before a new product or service is developed, a firm should have a precise __________, which is a statement defining the target market, specifying customers' needs, and defining what the product or service will be and do to satisfy consumers. 
 

A. 

formula

B. 

contract

C. 

modus operandi

D. 

protocol

E. 

methodology

 

180.

New-product or service failures may be reduced or avoided if the company developing them has 
 

A. 

support from marketer-dominated sources of information.

B. 

a clear patent approved by the governments within the countries it wants to market.

C. 

a statement of competitive intent.

D. 

stakeholder approval in the development process.

E. 

a precise protocol.

 

181.

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers' needs, wants, and preferences; and (3) what the product or service will be and do to satisfy consumers. 
 

A. 

a clear plan for product distribution

B. 

an analysis of potential competitors' products

C. 

a precise budget of how much can be spent for the marketing program

D. 

a well-defined target market

E. 

clear financial goals and expectations

 

182.

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) __________; and (3) what the product or service will be and do to satisfy consumers. 
 

A. 

a clear plan for distribution

B. 

specific customers' needs, wants, and preferences

C. 

an analysis of potential competitors' products or services

D. 

a precise budget of how much can be spent for the marketing program

E. 

clear financial goals and expectations

 

183.

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) __________. 
 

A. 

what the product or service will be and do to satisfy consumers

B. 

a clear plan for distribution

C. 

clear financial goals and expectations

D. 

an analysis of potential competitors' products or services

E. 

a precise budget of how much can be spent for the marketing program

 

184.

Most American families buy the same __________ items over and over again, making it difficult to gain buyers for new products. 
 

A. 

25

B. 

50

C. 

100

D. 

125

E. 

150

 

185.

Less than __________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million—the benchmark of a successful CPG launch. 
 

A. 

3 percent

B. 

10 percent

C. 

17 percent

D. 

28 percent

E. 

35 percent

 

186.

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was 
 

A. 

an insignificant point of difference—consumers wouldn't switch from competing snacks.

B. 

too little market attractiveness—the growth in the snacks market is declining.

C. 

poor execution of the marketing mix—General Mills did not offer free samples at grocery stores.

D. 

poor product quality—the chips were not the same size.

E. 

incomplete market and product protocol—the brand name Fingos did not get consumers excited.

 

187.

One of the eight primary marketing-related reasons for new-product failure is 
 

A. 

not listening to the voice of the engineer.

B. 

incomplete market and product protocol.

C. 

too much advertising or too aggressive a tone for it.

D. 

failure to anticipate competitors actions.

E. 

insufficient funding for rollout.

 

188.

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn't believe the claim and were frightened by the "cidal" in the brand name. The reason for this product failure was 
 

A. 

an insignificant point of difference.

B. 

too little market attractiveness.

C. 

poor execution of the marketing mix.

D. 

poor product quality.

E. 

incomplete market and product protocol.

 

189.

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on 
 

A. 

an insignificant point of difference.

B. 

too little market attractiveness.

C. 

not satisfying customer needs on critical factors.

D. 

poor product quality.

E. 

incomplete market and product protocol.

 

190.

Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors had offered their new MP3 players. Zune sales were very disappointing and Microsoft eventually killed the product. According to the textbook, the primary reason for the Zune's failure was due in large part to 
 

A. 

bad timing.

B. 

not satisfying customer needs on critical factors.

C. 

poor product quality.

D. 

an insignificant point of difference.

E. 

incomplete market and product protocol.

 

191.

One of the eight primary marketing-related reasons for new-product failure is 
 

A. 

not listening to the voice of the engineer.

B. 

no economical access to buyers.

C. 

too much advertising or too aggressive a tone for it.

D. 

failure to anticipate competitors actions.

E. 

insufficient funding for rollout.

 

192.

Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had 
 

A. 

poor product quality.

B. 

no economical access to buyers.

C. 

an insignificant point of difference.

D. 

incomplete market and product protocol.

E. 

poor execution of the marketing mix.

 

193.

One of the eight primary marketing-related reasons for new-product failure is 
 

A. 

the product is too innovative.

B. 

a competitor with a similar product withdrew from the market.

C. 

the product is too socially controversial.

D. 

poor product quality.

E. 

the product was marketed as a new product but it did not meet the legal definition of new.

 

194.

Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads, spreads, and meats, but at its introduction the company forgot to explain this to potential consumers. This product failure demonstrates 
 

A. 

not satisfying customer needs on critical factors.

B. 

poor product quality.

C. 

poor execution of the marketing mix.

D. 

an insignificant point of difference.

E. 

bad timing.

 

195.

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 
 

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.

 

196.

Groupthink occurs in a meeting when 
 

A. 

everyone has an opinion but no one is willing to take charge.

B. 

everyone has the same idea after using the brainstorming idea-generation technique.

C. 

there is too much competition among marketing managers, so no one is willing to share his/her ideas.

D. 

someone suspects that there is a problem with the new product concept but is afraid to speak up because everyone else is so enthusiastic about it.

E. 

top management wants the new product to go forward regardless of what anyone else thinks.

 

197.

One of the two organization-related problems of inertia that can cause new-product failures is 
 

A. 

poor product quality.

B. 

encountering groupthink in task force and committee meetings.

C. 

poor execution of the marketing mix.

D. 

bad timing.

E. 

incomplete market and product protocol.

 

198.

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which one should be used to measure sales performance? 
 

A. 

every metric possible

B. 

shelf space for this year and last year by city

C. 

production costs

D. 

customer psychographics

E. 

annual percent sales change by city

 

199.

Marketing dashboards are useful in measuring actual market performance versus the goals set in new-product planning, such as sales. Once shortfalls are identified, the first step would be to conduct market research to determine 
 

A. 

how to change the promotional strategy.

B. 

whether the problem is internal or external to the organization.

C. 

whether to drop or keep the failing product or market.

D. 

whether to change the goal, and therefore, the marketing metric used to measure it.

E. 

if the numbers used for evaluation in the marketing dashboard are accurate.

 

200.

If an organization's 2015 sales for the entire United States were $50 million and its 2014 U.S. sales were $30 million, what is the annual percentage sales change? 
 

A. 

40

B. 

67

C. 

100

D. 

125

E. 

133

 

201.

In a map of the United States that shows annual percentage change in unit volume, by state, for a given product, the annual growth rate in each state is shown with green meaning good and red meaning very poor. If you were a marketing manager faced with a map that showed mostly red in the Northeastern states and green in the Western states, which of the following would be the best action? 
 

A. 

Focus on the shortfalls in Idaho and Utah.

B. 

Revise the relevant goals for both the East and West Coast.

C. 

Conduct additional market research in the Southern United States.

D. 

Examine your distribution system in the Northeastern United States.

E. 

Change the marketing metric being used to evaluate the states individually.

 

202.

The seven stages an organization goes through to identify business opportunities and convert them into salable products or services is referred to as the 
 

A. 

commercialization process.

B. 

SWOT process.

C. 

business prospect development cycle.

D. 

opportunity stage gate sequence.

E. 

new-product development process.

 

203.

The new-product development process is 
 

A. 

the informal process of brainstorming to generate new-product concepts at a marketing staff meeting.

B. 

the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.

C. 

the seven stages an organization goes through to identify business opportunities and convert them into salable products or services.

D. 

the two stages an organization goes through from idea generation to commercialization.

E. 

a formalized protocol for new-product development that begins at the corporate level and ends at the functional level.

 

204.

The new-product development process an organization goes through to identify business opportunities and convert them into salable products or services contains 
 

A. 

three main steps: research, production, and distribution.

B. 

four distinct steps: research, evaluation, production, and distribution.

C. 

five key phases ranging from idea generation to creating the first prototype.

D. 

seven stages from new-product strategy development to commercialization.

E. 

three phases: planning, implementation, and evaluation.

 

205.

There are seven stages of the new-product development process. The stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives is the __________ stage. 
 

A. 

idea generation

B. 

screening and evaluation

C. 

screening and analysis

D. 

new-product strategy development

E. 

product assessment

 

206.

There are seven stages of the new-product development process. Stage 2 is the __________ stage. 
 

A. 

idea generation

B. 

screening and evaluation

C. 

screening and analysis

D. 

new-product strategy development

E. 

product assessment

 

207.

There are seven stages of the new-product development process. Stage 3 is the __________ stage. 
 

A. 

idea generation

B. 

screening and evaluation

C. 

screening and analysis

D. 

new-product strategy development

E. 

product assessment

 

208.

There are seven stages of the new-product development process. Stage 4 is the __________ stage. 
 

A. 

idea generation

B. 

screening and evaluation

C. 

business analysis

D. 

new-product strategy development

E. 

market testing

 

209.

There are seven stages of the new-product development process. Stage 5 is the __________ stage. 
 

A. 

business analysis

B. 

screening and evaluation

C. 

market testing

D. 

commercialization

E. 

development

 

210.

There are seven stages of the new-product development process. Stage 6 is the __________ stage. 
 

A. 

business analysis

B. 

screening and evaluation

C. 

market testing

D. 

commercialization

E. 

development

 

211.

There are seven stages of the new-product development process. Stage 7 is the __________ stage. 
 

A. 

business analysis

B. 

screening and evaluation

C. 

market testing

D. 

commercialization

E. 

development

 

212.

One reason new products fail is that although most major corporations use a formal decision making process, sometimes they fail to critically evaluate the progress along the way. This is why many firms have a __________ to ensure that problems are corrected before proceeding to the next stage. 
 

A. 

written protocol

B. 

Stage-Gate process

C. 

cross-functional team

D. 

prototype test

E. 

test market

 

213.

The stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives is referred to as 
 

A. 

distinctive competency determination.

B. 

new-product strategy development.

C. 

strategic marketing process.

D. 

strategic invention process.

E. 

product protocol definition.

 

214.

New-product strategy development is 
 

A. 

the stage of the new-product development process where specific product features and benefits are selected prior creating a new-product prototype.

B. 

a formalized protocol for new-product development determined by the director of marketing.

C. 

the stage of the new-product development process that defines the role for a new product in terms of the firm's overall objectives.

D. 

the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.

E. 

the stage of the new-product development process that turns the idea on paper into a prototype, which results in a demonstrable, producible product corresponding to its protocol.

 

215.

The first stage of the new-product development process is 
 

A. 

idea generation.

B. 

screening and evaluation.

C. 

business analysis.

D. 

new-product strategy development.

E. 

concept testing.

 

216.

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

A. 

idea generation

B. 

screening and evaluation

C. 

business analysis

D. 

development

E. 

new-product strategy development

 

217.

During the first stage of the new-product development process, two important activities take place. They are 
 

A. 

a SWOT analysis and environmental scanning.

B. 

open innovation and business analysis.

C. 

concept testing and product forecasting.

D. 

R&D and operations setup.

E. 

environmental scanning and open innovation.

 

218.

In which stage of the new-product development process would a firm use both a SWOT analysis and environmental scanning to assess its strengths and weaknesses relative to the trends it identifies as opportunities or threats? 
 

A. 

idea generation

B. 

screening and evaluation

C. 

new-product strategy development

D. 

business analysis

E. 

development

 

219.

Occasionally, a firm's Stage 1 product development activities can be blind-sided by a revolutionary new product or technology that completely disrupts its business, which is sometimes called a 
 

A. 

marketing opportunity.

B. 

disruptive innovation.

C. 

business threat.

D. 

crowdsourcing.

E. 

concept test.

 

220.

The stage of the new-product process that develops a pool of concepts to serve as candidates for new products is referred to as 
 

A. 

idea generation.

B. 

product development.

C. 

open innovation assessment.

D. 

screening and evaluation.

E. 

new-product strategy development.

 

221.

Developing a pool of concepts to serve as candidates for new products is the __________ stage of the new-product process. 
 

A. 

open innovation

B. 

screening and evaluation

C. 

product development

D. 

new-product strategy development

E. 

idea generation

 

222.

Idea generation is the stage in the new-product development process that 
 

A. 

develops a pool of concepts to serve as candidates for new products.

B. 

selects a single concept and scrutinizes it for all potential benefits and flaws.

C. 

separates ideas into two categories: consumer-oriented and organization-oriented.

D. 

requires the organization to perform a SWOT analysis and an environmental scan.

E. 

consists of the techniques used to screen and reject those ideas that have no merit.

 

223.

Idea generation refers to 
 

A. 

the stage of the new-product development process when concepts are converted to prototypes.

B. 

the stage of the new-product development process that develops a pool of concepts to serve as candidates for new-products.

C. 

the stage of the new-product development process where possible promotional campaigns and advertising themes are created.

D. 

the techniques used to screen and reject those ideas that have no merit.

E. 

the discussion and decision of which target market segments will be selected.

 

224.

Many forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas. This has caused them to find new-product ideas by developing strategic relationships with outside individuals and organizations, a practice known as 
 

A. 

innovation alliances.

B. 

open innovation.

C. 

open collaboration.

D. 

piggy-back thinking.

E. 

stakeholder cooperation.

 

225.

Open innovation may enhance the __________ stage of the new-product development process. 
 

A. 

internal collaboration

B. 

screening and evaluation

C. 

product development

D. 

new-product strategy development

E. 

idea generation

 

226.

Procter & Gamble's new Tide Pods launch shows how it has improved both planning and ______________ by involving __________ earlier in its innovation activities. 
 

A. 

open innovation; employees

B. 

failures; competitors

C. 

protocols; redesign

D. 

implementation; consumers

E. 

timing; launch activities

 

227.

All of the following are sources for new-product ideas except 
 

A. 

competitors.

B. 

universities.

C. 

regulators.

D. 

suppliers.

E. 

employees.

 

228.

Business researchers emphasize that firms must actively involve customers and suppliers in the new-product development process. This means that the focus should be on what the new product will __________ rather than simply what they want. 
 

A. 

look like

B. 

cost them

C. 

do for them

D. 

feel like

E. 

consist of in terms of new features

 

229.

Generating insights leading to marketing actions based on massive numbers of people's ideas is called 
 

A. 

brainstorming.

B. 

groupthink.

C. 

outsourcing.

D. 

crowdsourcing.

E. 

NIH method.

 

230.

Dell used __________ to develop an online site to generate 13,464 ideas for new products as well as website and marketing improvements. 
 

A. 

brainstorming

B. 

crowdsourcing

C. 

group think

D. 

outsourcing

E. 

data mining

 

231.

IDEO is a company that 
 

A. 

creates innovative promotional programs for its clients' new products.

B. 

developed the formal Stage-Gate process to commercialize new products for its clients.

C. 

uses "design thinking" to develop new products for other organizations.

D. 

rates new products like Consumer Reports.

E. 

runs patent searches for companies that don't have an internal legal department.

 

232.

Brainstorming sessions at IDEO can generate as many as __________ ideas for products in an hour. 
 

A. 

10

B. 

25

C. 

50

D. 

100

E. 

200

 

233.

In addition to seeking ideas from more well-known sources, organizations also get ideas from universities, inventors, and smaller nontraditional firms. For example, General Mills partnered with Brigham Young University to license its patent for 
 

A. 

scones with coffee-flavored cream frosting.

B. 

an Omega-3 enriched SKU for the Philadelphia cream cheese line.

C. 

a carbonated yogurt called Go-Gurt Fizzix.

D. 

deep fried chicken skins for people who cannot eat pork.

E. 

a crispy baked macaroni and cheese snack that can be eaten out of a bag like Cheetos.

 

234.

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? 
 

A. 

Conduct a survey among the 2 million people belonging to the NPD Consumer Panel.

B. 

Observe similar reality programs that are on competing television networks.

C. 

Contact contestants from other reality shows such as Survivor or The Amazing Race.

D. 

Brainstorm ideas from the TV production company's employees.

E. 

Read about the stars of reality TV programs in gossip magazines such as Us Weekly and TV programs like TMZ.

 

235.

Because early-stage financing is almost always a problem for those starting a new business, __________ is a way to gather an online community of supporters to financially rally around a specific project that is unlikely to get resources from traditional sources. 
 

A. 

crowdfunding

B. 

open sourcing

C. 

venture capital

D. 

online banking

E. 

crowdsourcing

 

236.

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

A. 

IDEO

B. 

Kickstarter.com

C. 

Warren Buffet's Berkshire Hathaway

D. 

The Industrial Design Group

E. 

Unfundale.com

 

237.

The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as 
 

A. 

development.

B. 

Stage-Gate.

C. 

idea generation.

D. 

business analysis.

E. 

screening and evaluation.

 

238.

Screening and evaluation refers to the stage of the new-product development process 
 

A. 

at which prospective customers are exposed to new-product prototypes for the first time.

B. 

at which new-product concepts that have been found viable are converted into actual prototypes.

C. 

that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.

D. 

that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.

E. 

where consumers evaluate a new product's performance in an actual-use situation.

 

239.

The screening and evaluation stage of the new-product process involves 
 

A. 

internal and external evaluations of new-product ideas.

B. 

product selection and budgeting projections.

C. 

business and cost analyses.

D. 

patent searches and environmental scanning.

E. 

idea selection and prototype development.

 

240.

The __________ stage of the new-product process includes an examination of the technical feasibility for the product, such as 3M determining that the firm's micro-replication technology (the 3,000 tiny gripping fingers) could be used to improve the gripping power of batting or work gloves. 
 

A. 

development

B. 

Stage-Gate

C. 

idea generation

D. 

business analysis

E. 

screening and evaluation

 

241.

An important aspect of the screening and evaluation stage of the new-product process is an examination of the technical feasibility for the product. For example, 3M was able to use the firm's micro-replication technology (the 3,000 tiny fingers) to 
 

A. 

improve the gripping power of batting or work gloves.

B. 

keep baseball caps from sliding off the heads of bald men.

C. 

make Formula One race cars more aerodynamic.

D. 

serve as a replacement for Velcro's hook-and-loop fasteners.

E. 

hold pictures in a photo album without damaging them.

 

242.

A 3M researcher worked with university students to develop the Post-it® Flag Highlighter. His team evaluated the technical feasibility of the proposed design and determined whether the idea met the firm's new-product objectives. At which stage of the new-product process was this product?  
 

A. 

idea generation

B. 

screening and evaluation

C. 

business analysis

D. 

new-product strategy development

E. 

concept testing

 

243.

Customer experience management (CEM) is  
 

A. 

the integration of the service component of the marketing mix with efforts to influence consumer demand.

B. 

the unique combination of benefits received by targeted buyers that include quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price.

C. 

the process of managing the entire customer experience within the company.

D. 

a cluster of benefits that an organization promises customers to satisfy their needs.

E. 

the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

 

244.

__________ includes considering employee interactions with customers to ensure they are consistently delivered and experienced, clearly differentiated from other offerings, and relevant and valuable to the target market. 
 

A. 

Capacity management

B. 

Customer experience management

C. 

Derived demand

D. 

Internal marketing

E. 

The key service factor

 

245.

An external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual finished product is referred to as 
 

A. 

new-product strategy development.

B. 

idea generation.

C. 

crowdsourcing.

D. 

market testing.

E. 

a concept test.

 

246.

A concept test is an 
 

A. 

internal evaluation among members of the entire cross-functional new-product development team that consists of preliminary testing of a new-product idea rather than the actual product.

B. 

external evaluation with consumers that consists of preliminary testing of a new-product idea rather than the actual finished product.

C. 

internal evaluation that consists of preliminary testing of a new-product idea using a mock-up or prototype of the new item.

D. 

in-house computer simulation of the new product that closely resembles the actual product to forecast sales.

E. 

in-depth questionnaire filled out both by internal marketing personnel and external customers to ensure that the final product meets all the needs expressed in the original product plan.

 

247.

Concept tests are part of which stage in the new-product development process? 
 

A. 

development

B. 

screening and evaluation

C. 

idea generation

D. 

new-product strategy development

E. 

business analysis

 

248.

The stage of the new-product development process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections is referred to as 
 

A. 

idea generation.

B. 

business analysis.

C. 

marketing analysis.

D. 

product development.

E. 

commercialization.

 

249.

Business analysis refers to the stage of the new-product development process 
 

A. 

where the target markets are selected and resources are allocated to reach them.

B. 

where the target market segments that show potential are selected and those that do not are eliminated.

C. 

that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.

D. 

where there is a formal accounting of all monies spent on R&D to determine the return on investment (ROI) that the new product will give back to the firm.

E. 

that internally and externally evaluates new-product ideas to eliminate those warranting no further effort.

 

250.

An assessment of the "business fit" of the proposed new product, from whether it can be economically produced to the marketing strategy needed to have it succeed, takes place during which stage of the new-product development process? 
 

A. 

business analysis

B. 

screening and evaluation

C. 

new-product strategy development

D. 

development

E. 

These activities are addressed at every stage with the exception of new-product strategy development.

 

251.

A general review of possible marketing and product synergies, economic analysis, and cannibalization potential would all take place during which stage of the new-product development process? 
 

A. 

business analysis

B. 

screening and evaluation

C. 

new-product strategy development

D. 

development

E. 

These activities are addressed at every stage except new-product strategy development.

 

252.

Detailed financial projections and assessments of marketing and product synergies are a part of which stage of the new-product development process? 
 

A. 

idea generation

B. 

market testing

C. 

business analysis

D. 

development

E. 

commercialization

 

253.

Factors such as specifying product features, marketing strategy, and financial projections are a part of which stage of the new-product process? 
 

A. 

idea generation

B. 

market testing

C. 

development

D. 

commercialization

E. 

business analysis

 

254.

All of the following actions occur during the business analysis stage of the new-product development process except 
 

A. 

using capacity management to find ways to match the availability of the service offering to when it is needed.

B. 

assessing the marketing and product synergies related to the company's existing operations.

C. 

turning the idea on paper into a prototype.

D. 

determining whether the new product can be protected with a patent or copyright.

E. 

assessing whether the proposed new product fits with the company's mission and objectives.

 

255.

A full-scale operating model of the product or service under development is referred to as a 
 

A. 

sample.

B. 

framework.

C. 

template.

D. 

prototype.

E. 

blueprint.

 

256.

A prototype is a 
 

A. 

miniature version of an actual new product used in concept testing to identify any changes that need to be made prior to its commercialization.

B. 

full-scale operating model of the product or service under development.

C. 

sample of a new product given to prospective customers and opinion leaders used to generate awareness prior to the product's commercial release.

D. 

simulated operating model of the product given to consumers to use in full-scale field testing.

E. 

digital version of a product produced in multiple shapes, colors, and sizes to determine which version of the product customers like best.

 

257.

The stage of the new-product development process that turns an idea on paper into a prototype is referred to as 
 

A. 

idea generation.

B. 

screening and evaluation.

C. 

business analysis.

D. 

commercialization.

E. 

development.

 

258.

Development refers to the stage of the new-product development process 
 

A. 

where initial ideas are generated and discussed.

B. 

that turns an idea on paper into a prototype.

C. 

where product characteristics and product benefits are selected.

D. 

where cross-functional team members and leaders are selected and initial tasks are assigned.

E. 

where the first version of a product enters the marketplace.

 

259.

In the new-product process, product ideas that survive the business analysis stage proceed to the __________ stage. 
 

A. 

market testing

B. 

screening and evaluation

C. 

business analysis

D. 

development

E. 

commercialization

 

260.

At Mattel, Barbie is child-tested to be sure the doll cannot be broken apart and accidentally cause a child to choke on pieces. This type of consumer or safety test occurs during the __________ stage of the new-product development process. 
 

A. 

new-product strategy development

B. 

development

C. 

business analysis

D. 

screening and evaluation

E. 

market testing

 

261.

After the new owner purchased a fully equipped yogurt factory, it took a yogurt master a year and a half to come up with the perfect formulation for Chobani Greek Yogurt. The most likely stage of the new-product process during which this time was spent is 
 

A. 

development.

B. 

market testing.

C. 

idea generation.

D. 

screening and evaluation.

E. 

business analysis.

 

262.

New-product strategy development calls for INGenius Co. to develop a battery recycler for the business market. Which is the most likely stage of the new-product process in which manufacturing issues regarding the new product become an especially important element? 
 

A. 

market testing

B. 

idea generation

C. 

screening and evaluation

D. 

development

E. 

business analysis

 

263.

If you watch much television, you have seen the ads that show a controlled crash of a car containing crash test dummies and the resultant vehicular damage. In the new-product development process, this safety test would occur during the __________ stage. 
 

A. 

development

B. 

market testing

C. 

idea generation

D. 

screening and evaluation

E. 

business analysis

 

264.

According to the textbook, which of the following firms is in the development stage of the new-product development process for a driverless car? 
 

A. 

Honda

B. 

Apple

C. 

Google

D. 

Ford

E. 

General Motors

 

265.

The stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as 
 

A. 

development.

B. 

market testing.

C. 

business analysis.

D. 

commercialization.

E. 

screening and evaluation.

 

266.

Market testing refers to 
 

A. 

exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.

B. 

making sales and profit projections on prototype products to make go-no-go decisions.

C. 

conducting marketing research among a sample of consumers in the target market to determine which version of a new-product concept is deemed the best.

D. 

independently run comparison tests with similar products currently in the marketplace to determine which one performs best.

E. 

conducting safety tests to determine whether the new product meets the established requirements when it isn't used as planned.

 

267.

Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line. A friend suggested combining spices from India with tea. In the __________ stage of the new-product process, the spice and tea mixtures were distributed to grocery stores in Portland and Seattle to see if they sold well. 
 

A. 

idea generation

B. 

screening and evaluation

C. 

business analysis

D. 

market testing

E. 

commercialization

 

268.

During which stage of the new-product process are audiences allowed to preview actual movies (a sneak preview) <including examples dates the question> so that changes might be made before they are released to the general public? 
 

A. 

market testing

B. 

business analysis

C. 

commercialization

D. 

screening and evaluation

E. 

concept testing

 

269.

Breyer's introduced a new line of ice cream flavors for sale in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the __________ stage of the new-product process. 
 

A. 

commercialization

B. 

screening and evaluation

C. 

business analysis

D. 

development

E. 

market testing

 

270.

Which of the products listed below would be the best candidate for full-scale market testing? 
 

A. 

totally free checking account from Bank One

B. 

household frequent flyer program from Delta Airlines

C. 

mid-priced luxury sedan made in America by Mazda

D. 

new iced coffee beverage from Starbucks

E. 

slimmer iMac computer

 

271.

Test marketing involves offering a product for sale 
 

A. 

to a random sample of people in the top 10 U.S. cities.

B. 

in as broad a geographic region as possible.

C. 

to consumers that are representative of the target market.

D. 

on a limited basis in a defined area.

E. 

only on certain days of the week and hours of the day.

 

272.

Which of the following statements about test marketing is most accurate? 
 

A. 

Test marketing is especially useful for new services.

B. 

Expensive consumer products must be test marketed in as many locations as possible.

C. 

Test marketing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.

D. 

Test marketing is essential for new, expensive industrial products such as jet engines.

E. 

Standard test markets are the least expensive and fastest type.

 

273.

If a firm used IRI's BehaviorScan service to track sales of a new product made to a panel of consumers and to assess the effectiveness of advertising and other promotion tactics, what type of test market is this? 
 

A. 

laboratory test market

B. 

concept test market

C. 

simulated test market

D. 

controlled test market

E. 

standard test market

 

274.

To save time and money, companies often turn to __________, a technique that somewhat replicates a full-scale test market. 
 

A. 

partial rollouts

B. 

screening and evaluation

C. 

virtual reality testing

D. 

time-to-market measures

E. 

simulated test markets

 

275.

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

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. 

shown the product or the product concept and are asked about usage, reasons for purchase, and important product attributes.

 

276.

The stage of the new-product process that positions and launches a new product in full-scale production and sales is referred to as 
 

A. 

marketing program execution.

B. 

disbursement.

C. 

launch.

D. 

commercialization.

E. 

final distribution.

 

277.

Commercialization refers to 
 

A. 

the point at which a new product has diffused throughout the marketplace.

B. 

the introduction of an offering to sequential geographic areas of the United States.

C. 

exposing actual products to prospective consumers under realistic purchase conditions.

D. 

the stage of the new-product process that positions and launches a new product in full-scale production and sales.

E. 

the point where new-product concepts are transformed into prototypes.

 

278.

Commercialization is the stage in the new-product process 
 

A. 

at which the product is positioned and launched in full-scale production and sales.

B. 

during which the firm performs its final evaluations of the new product.

C. 

when second-year sales forecasts are compared to actual first-year sales figures using a marketing dashboard.

D. 

when advertising campaigns are evaluated using Starch scores to identify brand awareness.

E. 

at which the product generates the greatest sales and profits.

 

279.

The most expensive stage in the new-product process for most products and services is 
 

A. 

commercialization.

B. 

screening and evaluation.

C. 

business analysis.

D. 

development.

E. 

market testing.

 

280.

The initial target market for X-1 products consisted of 
 

A. 

seniors who want easy-to-use TV remotes with large buttons.

B. 

athletes who want waterproof, sweatproof, and weatherproof audio equipment.

C. 

audiophiles who want HD Sirius/XM Satellite radio receivers in their homes.

D. 

consumers who want an inexpensive MP3 player like the old Sony Walkman.

E. 

smartphone users who want a "plug-in" device that lets them listen to AM radio on their smartphone.

 

281.

X-1 uses all of the following sources to generate new-product ideas except 
 

A. 

co-workers.

B. 

Team X-1.

C. 

employees.

D. 

retail buyers.

E. 

R&D lab IDEO.

 

282.

X-1 performs all of the following activities during the development stage of its new-product process except 
 

A. 

conduct safety tests.

B. 

conduct market tests.

C. 

use 3-D drawings.

D. 

conduct functionality tests.

E. 

develop prototypes.

 

 


Short Answer Questions
 

283.

Briefly define what is meant by a product. Explain the characteristics that would define a product, good, service, and an idea. Give an example of each. 
 


 


 


 

 

284.

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. 
 


 


 


 

 

285.

What are the four types of consumer products? How do they differ? 
 


 


 


 

 

286.

Explain the differences in promotion between convenience, shopping, specialty, and unsought products. 
 


 


 


 

 

287.

Explain what an unsought product is and give some examples. 
 


 


 


 

 

288.

The movie The Hunger Games opened originally in a select number of theaters before opening nationwide. After its theater run, it was shown on pay-per-view channels and then on premium movie channels. The movie also was made widely available in video stores, via Netflix, and on DVD/Blu-ray. What type(s) of consumer product is this movie? Explain your answer. 
 


 


 


 

 

289.

Define derived demand and provide an example not included in the text. 
 


 


 


 

 

290.

What categories of products are classified as business support products? Give an example of each category. 
 


 


 


 

 

291.

Describe the three ways services can be classified. 
 


 


 


 

 

292.

Characterize the difference between a product line and a product mix. Give an example of each. 
 


 


 


 

 

293.

Describe the different ways to define a product as new. 
 


 


 


 

 

294.

Compare continuous, dynamically continuous, and discontinuous innovations. Provide the marketing strategy and an example of each. 
 


 


 


 

 

295.

What are the eight marketing reasons for new-product failures? 
 


 


 


 

 

296.

The Thirsty Dog! beverage is an example of a product that failed in the marketplace. Identify and describe the reason(s) for this unique item's marketing-related product failure. 
 


 


 


 

 

297.

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


 


 


 

 

298.

What is idea generation in the new-product development process? From where do forward-thinking marketers get their ideas? 
 


 


 


 

 

299.

How can a firm use a test market in its new-product development process? 
 


 


 


 

 

300.

Explain why not all products can use test markets. 
 


 


 


 

 

Document Information

Document Type:
DOCX
Chapter Number:
10
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 10 Developing New Products And Services
Author:
Roger A. Kerin, Steven W. Hartley

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