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158) 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.
159) 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
160) 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
161) Battery maker Duracell introduced a new product called the Duracell Powermat, which is a
wireless charging pad for mobile devices. Because of the perceived fit with its other products,
this new product was received well by consumers despite being in a different product category.
This innovation strategy is known as a
A) brand extension.
B) radical invention.
C) product line extension.
D) disruptive innovation.
E) product accumulation.
162) 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.
163) 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.
164) 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
165) 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.
166) Before a new product or service is developed, a firm should have a precise protocol, a
statement that identifies which of the following?
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) specific customers' needs, wants, and preferences
E) clear financial goals and expectations
167) 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
168) 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.
169) One of the eight primary marketing-related reasons for new-product failure is
A) not listening to the voice of the engineer.
B) not satisfying customer needs on critical factors.
C) too much advertising or too aggressive a tone for it.
D) failure to anticipate competitors' actions.
E) insufficient funding for rollout.
170) 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.
171) 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.
172) Hewlett-Packard introduced its HP Tablet a few years after Apple launched its original
iPad, about the same time Apple introduced its next-generation iPad2. HP Tablet sales were very
disappointing, and Hewlett-Packard eventually killed the product. According to the text, the
primary reason for the HP Tablet'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.
173) One of the eight primary marketing-related reasons for new-product failure is
A) not listening to the voice of the engineer.
B) poor execution of the marketing mix.
C) too much advertising or too aggressive a tone for it.
D) failure to anticipate competitors' actions.
E) insufficient funding for rollout.
174) 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.
175) After gaining widespread attention with the media, as well as popularity with teens,
hoverboards made by a variety of manufacturers were found to catch fire or explode. Hoverboard
sales suffered greatly as a result of which common reason for product failure?
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
176) 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.
177) Groupthink occurs in a new product planning process when
A) everyone has an opinion, but no one is willing to take charge and guide the discussion.
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 or
her ideas.
D) someone suspects a problem with a product concept but is afraid to speak up because
everyone else is so enthusiastic.
E) top management wants the new product to go forward regardless of what anyone else thinks.
178) One of the two organization-related problems of inertia that can cause new-product failures
is
A) poor product quality.
B) encountering the "not-invented-here" problem.
C) poor execution of the marketing mix.
D) bad timing.
E) incomplete market and product protocol.
179) Open innovation is
A) a clear plan for new product distribution that will ensure access for all potential customers
within the first year of release.
B) a formal and comprehensive analysis of competitors' products to discover ideas for product
improvements.
C) an unlimited budget that can be spent for the marketing program for a new product.
D) designing a product around specific customers' needs, wants, and preferences.
E) the practices and processes that encourage the use of external and internal ideas and
collaboration when conceiving, producing, and marketing new products.
180) ________ consists of practices and processes that encourage the use of external as well as
internal ideas and internal as well as external collaboration when conceiving, producing, and
marketing new products and services.
A) Innovation partnership
B) Open innovation
C) Formalized collaboration
D) Piggy-back thinking
E) Stakeholder cooperation
181) Open innovation helps organizations overcome ________, one of the organizational inertias
common in new-product failures.
A) groupthink
B) intelligent failures
C) incomplete protocols
D) NIH barriers
E) bad timing
182) 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 of the following metrics should be
used to measure sales performance?
A) consumer awareness
B) shelf space for this year and last year by city
C) production costs
D) customer psychographics
E) annual percent sales change by city
183) 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.
184) If an organization's 2017 sales for the entire United States were $50 million and its 2016
U.S. sales were $30 million, what is the annual percentage sales change?
A) 40
B) 67
C) 100
D) 125
E) 133
185) In the Marketing Dashboard Map above, the annual growth rate in each state is shown, with
green (which looks gray on gray scale) meaning good and red (which looks black on gray scale)
meaning very poor. If you were a marketing manager faced with this dashboard, 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.
186) 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.
187) 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.
188) 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.
189) 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
190) There are seven stages of the new-product development process. Following the new-
product strategy development stage is the second step, known as
A) idea generation.
B) screening and evaluation.
C) screening and analysis.
D) new-product strategy development.
E) product assessment.
191) There are seven stages of the new-product development process. Stage 3 follows idea
generation; it is the ________ stage.
A) tactic generation
B) screening and evaluation
C) screening and analysis
D) new-product strategy development
E) product assessment
192) There are seven stages of the new-product development process. After screening and
evaluation is stage 4, the ________ stage.
A) idea generation
B) creative direction
C) business analysis
D) new-product strategy development
E) market testing
193) 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
194) 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
195) There are seven stages of the new-product development process. The last stage is
A) business analysis.
B) screening and evaluation.
C) market testing.
D) commercialization.
E) development.
