Marketing Chapter 8 1 50 Adam And Jose Are Attempting Identify The Bundle Product Features Most

subject Type Homework Help
subject Pages 12
subject Words 52
subject Authors Dawn Iacobucci

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1. Companies are ever evolving and the primary way they make changes is by offering “new and improved”
goods and services to customers.
a. True
b. False
2. Zena’s company is seeking to improve its current products. Ultimately, the company would do this only to
attract new customers.
a. True
b. False
3. Change in the market is always occurring.
a. True
b. False
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4. It’s been shown that new products increase a company’s long-term financial performance and value.
a. True
b. False
5. Companies approach the design of new products in the same way.
a. True
b. False
6. The process of developing new products depends first on a company’s location.
a. True
b. False
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7. Some companies take a nearly exclusively top-down approach and don't start marketing until the final launch
phase.
a. True
b. False
8. Frank is a senior executive at Company XYZ and has argued that a top-down approach to new product
development should be implemented. Frank explains that just because the top-down approach has few steps in
the process doesn’t mean the products are simple, or that the process unfolds quickly. Frank’s explanation of the
top-down approach is correct.
a. True
b. False
9. Bottom-up is sometimes also called “inside out.”
a. True
b. False
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10. In the real world, companies do not use a purely bottom-up or top-down marketing process.
a. True
b. False
11. In more marketing-oriented companies, customer feedback is sought at most phases in the process.
a. True
b. False
12. Customers and marketing research are involved in the idea generation, concept testing, product testing, and
test marketing stages.
a. True
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b. False
13. The new product development process is linear.
a. True
b. False
14. Marketing management is involved throughout the new product development process.
a. True
b. False
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15. Many ideas for new products come from marketers observing the world around them.
a. True
b. False
16. The most typical method of product testing involves many good old-fashioned, coffee-fueled brainstorming
meetings.
a. True
b. False
17. After many ideas have been generated, marketing starts a focus group with all ideas.
a. True
b. False
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18. The form of marketing research at the concept testing stage is usually focus groups and web surveys.
a. True
b. False
19. In attempting to determine what drives customers’ decisions, Conny explains to Karl that conjoint analysis
is a great research method because it reveals customers’ trade-offs. Conny is correct.
a. True
b. False
20. Rarely is customer feedback surprising when developing a new product.
a. True
b. False
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21. Typically, a company will repeat the concept testing phase until it has one product in mind. It will then
make a single prototype.
a. True
b. False
22. Showing company marketing information to customers helps clarify the image of the products and allows
the company to get feedback on the marketing information itself.
a. True
b. False
23. Area test markets are used frequently because they are inexpensive and easy to set up.
a. True
b. False
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24. Gary is a marketer for a new type of beer and he wants to see how well it would sell. He sets up a simulated
test market by placing his beer among other types in a virtual reality situation where testers will select a beer
from the shelf. The goal of this simulated test is to see how often customers will pick his beer in real life.
a. True
b. False
25. Upon completion of the idea generation stage, the marketing manager takes the customer data and tries to
predict the product’s likely success.
a. True
b. False
26. The goal of forecasting is to estimate the stock potential ($SP).
a. True
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b. False
27. Sales Potential = Market Potential × Purchase Intention × Price, or $SP = MP × PI × Pr.
a. True
b. False
28. New product development can move along fairly quickly for straightforward brand or line extensions in the
context of a mature consumer packaged goods company. In other settings, the process can be very slow.
a. True
b. False
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29. The FDA is currently under investigation for requiring too much testing, which moves drugs to market too
slowly.
a. True
b. False
30. The product life cycle is a popular metaphor in marketing to describe the development of a product before it
is introduced to the marketplace.
a. True
b. False
31. Profit increases through the introduction, growth, and maturity phases of the product life cycle. Profit starts
to level off and drop in the decline phase.
a. True
b. False
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32. Sales are low and slow in the early phases because distribution is limited.
a. True
b. False
33. At market maturity, profits decline because of higher marketing costs and lower prices.
a. True
b. False
34. If a firm has an old product at the end of the life cycle, it can divest it, harvest it, or rejuvenate it.
a. True
b. False
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35. The length of product-category life cycles tends to be shorter than those of individual-brand life cycles.
a. True
b. False
36. Marketers can speed up imitators (make p bigger) by introducing price decreases early, or speed up
innovators (make q bigger) by introducing price decreases later.
a. True
b. False
37. The percentage of innovators and early adopters is about 2025% of the market.
a. True
b. False
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38. Consumer acceptance tends to be higher when a new product is not overly complex or has a user-friendly
interface.
a. True
b. False
39. The first to market is often the first to fail.
a. True
b. False
40. One marketing trend is the growing concern for environmental and corporate social responsibility.
a. True
b. False
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41. The process of developing new products depends first on a company’s
a. bottom line.
b. size.
c. location.
d. culture.
42. A(n) __________ approach is found frequently among companies with strong engineering orientations,
pharmaceutical and biomedical firms, financial services, and many high-technology companies.
a. bottom-up
b. top-down
c. upward
d. downward
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43. Top-down is also called __________ because the idea comes from within the company, and then feedback
from the outside is sought later in the process.
a. inside-out
b. outside-in
c. long-term
d. short-term
44. The opposite of a top-down approach is usually called
a. outside-in.
b. inside-out.
c. co-creation.
d. bottom-up.
45. Marketing management is involved throughout the new product development process, and especially in the
__________ stage.
a. test marketing
b. concept testing
c. product development
d. idea generation
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46. Which of the following steps comes immediately after idea creation in the new product development
process?
a. in-house winnowing and refinement
b. concept testing
c. product testing
d. test marketing
47. Saying, “Okay, maybe some ideas are in fact bad ideas” corresponds to which step in the process of creating
new products?
a. in-house winnowing and refinement
b. brainstorming meetings
c. concept testing
d. design development
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48. At which stage in the new product development process does the company have a number of ideas that it
thinks might work and gets customers’ feedback as to which ideas sound most promising?
a. test marketing
b. concept testing
c. product development
d. product testing
49. Focus groups and web surveys are used mostly during which phase of product development?
a. brainstorming
b. beta testing
c. concept testing
d. launch
50. Adam and Jose are attempting to identify the bundle of product features most likely to attract customers.
Jose argues that they should conduct a(n) __________, which involves comparing different combinations of
attributes, and the customer simply determines which product combination sounds best, next best, and so on.
a. focus group
b. interview

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