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WorksheetsTest BBC1043-B
Total questions: 40
Worksheet time: 20mins
Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.
A firm can obtain new products through acquisition or new product development efforts.
Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.
Adapting marketing strategies is not a challenge faced in the product lifecycle.
Which of the following statements is true of the idea generation stage in the new product development process?
All of the following are disadvantages of test marketing EXCEPT that test marketing ________.
Which of the following statements is true of test marketing?
Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?
Which of the following is a significant challenge presented by the product lifecycle?
increased expenses
increased competition
new product development
evaluation of results
recognizing the stages as a product goes through them
Product improvements, product modifications, and original products can all be classified as ________.
blueprints
new products
prototypes
product extensions
test products
Acquisition refers to ________.
the buying of a whole company, a patent, or a license to produce someone else's product
an agreement between two or more commercial companies to produce a common product
a partnership between two companies to produce a product in different countries by sharing risks
investments made in a country's businesses by foreign citizens, often in the form of stocks
the development of original products, product improvements, product modifications, and new brand through the firm's own product development strategies
Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.
businessanalysis
ideageneration
concepttesting
ideascreening
conceptdevelopment
Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must________.
conduct surveys of competitors
exclusively consider the government's opinions
consider the sales history of similar products
apply the PLC concept to industry sales
opt for business process reengineering
Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?
brainstorming
ideascreening
crowdsourcing
outsourcing
concepttesting
Which of the following is included in the third part of the marketing strategy statement?
the planned value proposition
distribution strategy
the product's planned price
marketing budget
the planned long-run sales
A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a________.
business feasibility plan
marketing strategy development
business analysis
product acceptance
business proposal
Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the________ stage of the new product development process.
business transformation
test marketing
business analysis
business process reengineering
concept testing
Which of the following would most likely be included in an executive's write-up of a new product idea to be presented to a new product committee?
the proposed customer value proposition
the product image
the marketing strategy
the business analysis
the pricing strategy
Which of the following is a common reason for new product failure?
incorrect estimation of the market size
low product development costs
ineffective social marketing campaigns
low selling prices of products
patent ownership exclusively held by the company
Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service?
idea screening
product development
product activation
marketing strategy development
product design
Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?
concept testing
marketing strategy development
business analysis
product development
test marketing
In the new product development process, the first idea-reducing stage is ________.
businessanalysis
ideageneration
conceptdevelopment
crowdsourcing
ideascreening
Which figures does the company use to analyze the new product's financial attractiveness?
size of population
expected market share
number of competitors
anticipated number of options
sales and costs
The product lifecycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?
developments in technology
decreased manufacturing costs
competition
changing tastes of consumers
aging of products
Which of the following statements is true of the new product development process?
The purpose of the idea screening stage is to create a large number of ideas.
Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.
A product concept is the way consumers perceive an actual or potential product.
The concept testing stage is the stage at which the product and its proposed marketing program are introduced into realistic market settings.
Commercialization is the process of inviting broad communities of people such as customers, employees, and scientists into the new product innovation process.
A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?
The products were priced too high.
The products were advertised incorrectly.
Competitors fought back harder than expected.
Product research was too extensive.
The product development costs were high.
In a(n)________, new products and marketing tactics are tested among specifically identified groups of customers and stores.
A) controlled test market
B) simulated test market
C) standard test market
D) systematic sample
E) accidental sample
Introducing a new product into the market is called ________.
A) test marketing
B) simulation
C) co-marketing
D) commercialization
E) segmentation
The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.
A) the entire marketing program
B) which market to compete in
C) whether to launch the new product
D) how to compete in the market
E) how long to compete in the market
In the________ stage of the new product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.
product design
idea generation
concept development and testing
product development
product activation
________ is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
A) Team-based product development
B) Simultaneous product development
C) Sequential product development
D) Horizontal integration
E) Vertical integration
Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
A) when the new product requires a major investment
B) when management lacks confidence in the new product
C) when management lacks confidence in the marketing strategy
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low
Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.
A) timing
B) location
C) organizational structure
D) test marketing
E) product mix
The product development stage requires________.
a huge jump in investment
sales people to contact potential customers
financial analysis
a few hours
management approval
According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.
A) where to launch the new product
B) how to launch the new product
C) why to launch the new product
D) what pricing strategies to implement
E) what marketing mix elements to use
Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?
A) retest the product in additional markets
B) develop a planned market rollout over time
C) liquidate its assets to gain capital and capacity
D) seek the help of a nationally known consultant
E) develop a prototype
In a(n)________, consumers interact with new products and marketing tactics in laboratory stores or virtual online shopping environments.
A) standard test market
B) focus group
C) controlled test market
D) simulated test market
E) individual survey
A company getting ready to launch a new product must make several decisions. The company must first decide on ________.
A) whether to launch the product in a single location
B) whether to launch the product in a region
C) whether to launch the product into full national distribution
D) when to introduce the product
E) when to develop a planned market rollout
P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new product development process before P&G could.
A) commercialization
B) co-marketing
C) idea generation
D) idea screening
E) simulation
Which of the following involves costs that most likely occur during the commercialization stage of new product development?
A) building or renting a manufacturing facility
B) paying target customers for product feedback
C) determining the product's planned distribution
D) developing a prototype of the product
E) identifying target markets
