- Product New Proposition Development | Full Test Bank Ch.11

Chapter 11 - Product: new proposition development and innovation

Test Bank

Type: multiple choice question

Title: Chapter 11 Question 01

01) We start with a consideration of the principal characteristics associated with offerings and discuss how all offerings are best considered services at heart. This concept of all propositions inherently being services is known as:

a. Service.

b. service-dominant logic (SDL).

c. propositions.

d. Tangibility.

Type: multiple choice question

Title: Chapter 11 Question 02

02) In marketing, the term proposition:

a. is limited in meaning to goods, services, and ideas only.

b. is a broad concept that encompasses the satisfaction of consumer needs.

c. refers only to tangible items that can be seen, tasted, or touched.

d. never refers to such things as package design, brand name, or warranty.

Type: multiple choice question

Title: Chapter 11 Question 03

03) _____________ are raw materials that have been converted into a temporary state. For example, iron ore is converted into metal sheets that can be used by car and aircraft manufacturers, washing machines, and building contractors.

a. Semi-finished goods

b. Equipment goods

c. Maintenance, repair, and operating.

d. Raw materials.

Type: multiple choice question

Title: Chapter 11 Question 04

04) Which is not an example of speciality products?

a. sports equipment (Winning boxing gloves).

b. Michelin-starred restaurants (Canton 8 in Shanghai).

c. electrical appliances .

d. watches (Rolex).

Type: multiple choice question

Title: Chapter 11 Question 05

05) Which of the following is the rate at which a market adopts an innovation?

a. Process of diffusion.

b. Adoption lifecycle.

c. Adoption process.

d. Process of differentiation.

Type: multiple choice question

Title: Chapter 11 Question 06

06) Which of the following is a stage in the new product development process, undertaken when a new product is tested with a sample of customers, or is launched in a specified geographical area, to judge customers' reactions prior to a national launch?

a. Live marketing.

b. Generic marketing.

c. Focused marketing.

d. Test marketing.

Type: multiple choice question

Title: Chapter 11 Question 07

07) This is the process in which offerings move through a sequential, pre-determined pattern of development similar to the biological path that lifeforms follow:___________

a. Diffusion process

b. Test marketing.

c. Aoption process.

d. Product lifecycle.

Type: multiple choice question

Title: Chapter 11 Question 08

08) During the __________ stage of the adoption process, the innovation is tried for the first time. Sales promotions are often used as samples to allow individuals to test the product without any undue risk. Individuals accept or reject an innovation on the basis of their experience of the trial.

a. persuasion

b. knowledge

c. implementation

d. decision

Type: multiple choice question

Title: Chapter 11 Question 09

09) Cars are supplied with different styles, engines, seats, colours, and boot space, they are focusing on which proposition components :___________

a. augmented.

b. embodied.

c. core.

d. main.

Type: multiple choice question

Title: Chapter 11 Question 10

10) The development of new propositions is complex and high risk, so organizations usually adopt a procedural approach. The most common new product development process (NPDP) consists of several phases that enable progress to be monitored. Which of the following is NOT one of the phases of NPDP?

a. core proposition selection.

b. idea screening.

c. test marketing.

d. business plan and market analysis.

Type: true-false

Title: Chapter 11 Question 11

11) Marketing strategies should be designed around the actual and augmented propositions, because it is via these that competition occurs and people understand how one disposable camera differs from another.

a. False

b. True

Type: true-false

Title: Chapter 11 Question 12

12) Cars provide transportation and a means of self-expression. Cameras make memories by recording a scene, person, or object through the use of film or digital processes. These are all example of the embodied product.

a. True

b. False

Type: true-false

Title: Chapter 11 Question 13

13) The core proposition consists of the core benefit or service. This may be a functional benefit in terms of what the offering enables you to do, or it may be an emotional benefit in terms of how the product or service makes you feel.

a. True

b. False

Type: true-false

Title: Chapter 11 Question 14

14) There is some evidence (from Germany) that electronic goods manufacturers are deliberately shortening product life cycles, adding built-in obsolescence (Ala-Kurikka, 2015).

a. True

Just as the nature and expectations of customer groups differ by stage, so do the competitive conditions. This means that different marketing strategies, relating to the offering and its distribution, pricing, and promotion, need to be deployed at particular times so as to maximize financial returns.

b. False

Just as the nature and expectations of customer groups differ by stage, so do the competitive conditions. This means that different marketing strategies, relating to the offering and its distribution, pricing, and promotion, need to be deployed at particular times so as to maximize financial returns.

Type: true-false

Title: Chapter 11 Question 15

15) Capital equipment goods refer to offerings that people do not normally anticipate buying nor want to buy.

a. True

b. False

Type: true-false

Title: Chapter 08- Question 16

16) Staple products are available almost everywhere. They include groceries such as bread, milk, soft drinks, and breakfast cereals.

a. True

b. False

Type: true-false

Title: Chapter 11 Question 17

17) The process through which individuals accept and use new products is referred to as the process of adoption.

a. True

b. False

Type: true-false

Title: Chapter 11 Question 18

18) Impulse products are bought when a very special need arises; buyers are more intent on buying a solution than buying the right quality or image-related product.

a. True

b. False

Type: true-false

Title: Chapter 11 Question 19

19) Early majority constitutes 2.5% of the buying population, is important because they have to kick-start the adoption process.

a. True

b. False

Type: true-false

Title: Chapter 11 Question 20

20) The rate of diffusion is a function of the speed at which sales occur, the pattern of diffusion as expressed in the shape of the curve, and the size of the market.

a. True

b. False

Type: multiple choice question

Title: Chapter 11 Question 21

21) In the _________, individuals develop an attitude toward the proposition and reach a decision about whether the innovation will meet their needs. If this is positive they will experiment with the innovation.

a. persuasion stage

b. decision stage

c. implementation stage

d. knowledge stage

Type: multiple choice question

Title: Chapter 11 Question 22

22) This is the pathway a product assumes over its lifetime. There are said to be five main stages: development, introduction, growth, maturity and decline.

a. Product lifetime.

b. Product lifecycle.

c. Product life stage.

d. Product lifestyle.

Type: multiple choice question

Title: Chapter 11 Question 23

23) MySQL, the world’s leading open-source database software producer uses this approach. By making the source code of the software freely available to everybody, the software is available to everyone to use and/or modify. This is a good example of:

a. incremental service innovation.

■ incremental service innovation targeting value-added propositions; and

■ radical service innovation, whi world’s leading open-source database software producer uses this approach.

b. product extension.

■ incremental service innovation targeting value-added propositions; and

■ radical service innovation, whi world’s leading open-source database software producer uses this approach.

c. radical service innovation.

■ incremental service innovation targeting value-added propositions; and

■ radical service innovation, whi world’s leading open-source database software producer uses this approach.

d. incremental service innovation.

■ incremental service innovation targeting value-added propositions; and

■ radical service innovation, whi world’s leading open-source database software producer uses this approach.

Type: multiple choice question

Title: Chapter 11 Question 24

24) These are groups of brands that are closely related in terms of their functions and the benefits they provide:

a. Product lifecycle.

b. Product lines.

c. Product class.

d. Product branding.

Type: multiple choice question

Title: Chapter 11 Question 25

25) Convenience products are non-durable and are bought because the consumer does not want to put very much effort, if any, into the buying decision. Which behaviour closely corresponds to convenience products?

a. routinized response

b. limited problem solving

c. high involvement

d. extensive problem solving

Type: multiple choice question

Title: Chapter 11 Question 26

26) Möller, Rajala, and Westerlund (2008) distinguish between three service innovation strategies as:

a. established services within competitive markets;

established services within competitive markets;incremental service innovation targeting value-added propositions; andradical service innovation, whi world’s leading open-source database software producer uses this approach.

b. incremental service innovation targeting value-added propositions.

established services within competitive markets;incremental service innovation targeting value-added propositions; andradical service innovation, whi world’s leading open-source database software producer uses this approach.

c. radical service innovation, which aims to produce completely novel offerings.

established services within competitive markets;incremental service innovation targeting value-added propositions; andradical service innovation, whi world’s leading open-source database software producer uses this approach.

d. All above options

established services within competitive markets;incremental service innovation targeting value-added propositions; andradical service innovation, whi world’s leading open-source database software producer uses this approach.

Type: true-false

Title: Chapter 11 Question 27

27) At stage 4 of service innovation, the highest end of innovation maturity, firms integrate the services dimension as part of their total offer. Known as servitization, this involves the provision of a bundle of goods–service solutions over the life cycle of their customers, ‘from cradle to grave’.

a. True

b. False