236) In the new-product development 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
237) 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
238) Recently, the Google team announced its fleet of driverless cars had completed over 1
million miles of “autonomous driving.” The Google driverless car is at which stage of the new-
product development process?
A) development.
B) market testing.
C) idea generation.
D) screening and evaluation.
E) business analysis.
239) 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 development 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
240) If you watch television, you may 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
241) According to the text, 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) Tesla
E) General Motors
242) The stage of the new-product development 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.
243) 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.
244) 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 development 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
245) During which stage of the new-product development process are audiences allowed to
preview actual movies like Thor: Ragnarok (a sneak preview) 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
246) 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. At that time, Breyer’s new product was in the ________ stage of the new-product
development process.
A) commercialization
B) screening and evaluation
C) business analysis
D) development
E) market testing
247) 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
248) 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.
249) 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.
250) 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
251) 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
252) 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.
253) The stage of the new-product development 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.
254) 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 development 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.
255) Commercialization is the stage in the new-product development 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.
256) The most expensive stage in the new-product development process for most products and
services is
A) commercialization.
B) screening and evaluation.
C) business analysis.
D) development.
E) market testing.
257) A slotting fee is a payment that a
A) wholesaler makes to place a new product on a retailer’s shelf.
B) manufacturer makes to have a wholesaler distribute a new product to retailers.
C) manufacturer makes to place a new product on a retailer’s shelf.
D) manufacturer makes to a wholesaler as compensation for warehousing inventory.
E) manufacturer makes to a retailer as compensation for sales not made while the product was on
the shelf.
258) Marketers pay slotting fees to grocers in payment for space, or slots, on their retail shelves.
Such slotting fees significantly increase the cost of which stage of the new-product development
process?
A) business analysis
B) market testing
C) screening and evaluation
D) commercialization
E) idea generation
259) Kroger required that Birds Eye pay $15,000 per month to get its new Vegetable Quinoa
Pilaf placed in the middle shelves in the frozen vegetable freezer section of all its supermarkets
around the country. This payment is an example of a
A) product placement fee.
B) bribe.
C) slotting fee.
D) product support fee.
E) shelf space allowance.
260) A failure fee is a penalty payment
A) a retailer assesses a manufacturer to handle defective new products that customers returned.
B) a wholesaler makes to a retailer as compensation for sales not made while the product was on
the shelf.
C) a retailer makes to a manufacturer for stockouts (not keeping point-of-purchase displays
continuously stocked with the new product).
D) a manufacturer makes to a wholesaler as compensation for case-lot sales not made to retailers.
E) a manufacturer makes to compensate a retailer for devoting valuable shelf space to a product
that fails to sell.
261) If a new grocery product does not achieve a predetermined sales target, some retailers
require a penalty payment by the manufacturer to compensate them for sales that its valuable
shelf space was unable to generate. What is this type of payment called?
A) an opportunity cost charge
B) lost sales fee
C) shelf space allowance
D) product displacement fee
E) a failure fee
262) Introducing new-products sequentially into geographic areas of the U.S. to allow production
levels and marketing activities to build up gradually to minimize the risk of new-product failure
is referred to as
A) limited rollouts.
B) phased rollouts.
C) market-product expansion.
D) regional rollouts.
E) phased commercialization.
263) A new beverage by Snapple is currently being sold only in the western United States. Over
the next year, Snapple plans to introduce the beverage into areas in the Midwest, and then the
eastern United States. This distribution strategy during commercialization is referred to as a
A) limited rollout.
B) phased rollout.
C) market-product expansion.
D) regional rollout.
E) phased commercialization.