39. Outback Steakhouse, a restaurant chain, wants to expand its range of dishes on its menu. The restaurant managers
conduct surveys on customers to determine the dishes that would appeal to the customers. Outback is currently in
the _____ phase of the new-product development process.
a. business analysis
b. product development
c. test marketing
d. screening
e. idea generation
40. When marketers at Nabisco met with groups of young adults to identify the types of snacks that youths prefer, they
were engaging in the _____ phase of the new-product development process.
a. idea generation
b. business analysis
c. test marketing
d. commercialization
e. product development
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41. Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during the_____
phase of the new-product development process.
a. commercialization
b. screening
c. concept testing
d. product development
e. test marketing
42. Concerns about cannibalization of current product sales must be addressed in the _____ phase of the new-product
development process.
a. screening
b. concept testing
c. business analysis
d. product development
e. test marketing
Chapter 11 – Developing and Managing Goods and Services
43. Which of the following is a phase of the new-product development process that involves determining whether a
product idea is compatible with company objectives, needs, and resources on a general level?
a. Product development
b. Evaluation of competitor’s efforts
c. Screening
d. Idea generation
e. Business analysis
44. A group of managers has been assigned the task of developing a new product. The group is now in the process of
assessing several ideas to determine whether they are consistent with the firm’s overall objectives and resources.
The managers are at the _____ stage of the new-product development process.
a. business analysis
b. product testing
c. idea generation
d. commercialization
e. screening
Chapter 11 – Developing and Managing Goods and Services
45. Compared with other phases of the new-product development process, the largest number of new product ideas is
rejected during the _____ phase.
a. idea generation
b. concept testing
c. business analysis
d. screening
e. test marketing
46. The phase of the new-product development process in which a small sample of potential buyers is presented with a
product idea through a written or oral description in order to determine their attitudes and initial buying intentions
regarding a product is called:
a. concept testing.
b. customer response testing.
c. idea analysis.
d. test marketing.
e. screening.
Chapter 11 – Developing and Managing Goods and Services
47. Patrickisamemberofaconsumermarketresearchpanelandhasbeenintroducedtoacompany’snewideafor
energydrinks.Someofthequestionshehasbeenaskedare,“Howoftenwouldyoubuythisproduct?”and”Which
features are of little or no interest to you?” Patrick is most likely participating in the _____ phase of the new-
product development process.
a. concept testing
b. business analysis
c. idea screening
d. idea generation
e. test marketing
48. Which of the following is a stage of the new-product development process where customers are exposed to a new
product idea for the first time?
a. Screening
b. Concept testing
c. Business analysis
d. Product development
e. Test marketing
Chapter 11 – Developing and Managing Goods and Services
49. Marketers at Starbucks generated several ideas for new food products. Management assessed these ideas to
determinewhetherornottheywereconsistentwithStarbucks’objectivesandresources.Severalproductideas
were dropped after this analysis. The next stage of development for the remaining product ideas is:
a. product development.
b. idea screening.
c. concept testing.
d. business analysis.
e. test marketing.
50. Which of the following phases of new-product development is likely the most cost-effective procedure?
a. Commercialization
b. Concept testing
c. Business analysis
d. Product development
e. Test marketing
Chapter 11 – Developing and Managing Goods and Services
51. Karla tells Jeff that she likes his team’s idea about new shock-resistance running shoes but wants him to consider
some figures regarding anticipated sales, costs, and resulting profits. To which of the following stages of the new-
product development process is she asking Jeff to proceed?
a. Idea generation
b. Business analysis
c. Commercialization
d. Test marketing
e. Screening
52. Breakeven analysis is a tool that marketers are most likely to employ during the _____ stage of the new-product
development process.
a. screening
b. concept testing
c. business analysis
d. product development
e. test marketing
Chapter 11 – Developing and Managing Goods and Services
53. “Is the demand strong enough to justify entering the market?” is a question that marketers ask during the _____
phase of the new-product development process.
a. screening
b. idea generation
c. business analysis
d. commercialization
e. cannibalization
54. Clive is an engineer involved in the product development of a new plastic laminate that would be sold to
manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for
profitability of the new product. They are likely in the _____ phase of the new-product development process.
a. idea generation
b. market testing
c. business analysis
d. concept testing
e. compatibility research
Chapter 11 – Developing and Managing Goods and Services
55. As Justin works on the prototype of a new action-oriented computer game, he is engaging in the _____ phase of
the new-product development process.
a. idea generation
b. commercialization
c. test marketing
d. screening
e. product development
56. Ideally, test marketing should follow the _____ stage in the new-product development process.
a. commercialization
b. business analysis
c. screening
d. idea generation
e. product development
Chapter 11 – Developing and Managing Goods and Services
57. Kara is a member of the product development team at a company that manufactures sports equipment. During a
recent meeting, one of the team members asked, “What level of quality are we building into the camping gear?” In
this case, Kara and her team are most likely in the _____ phase of the new-product development process.
a. commercialization
b. concept testing
c. business analysis
d. product development
e. test marketing
58. The phase of the new-product development process when an organization determines the technical feasibility of
producing a product at a cost that results in a reasonable selling price is:
a. test marketing.
b. commercialization.
c. concept testing.
d. product development.
e. business analysis.
Chapter 11 – Developing and Managing Goods and Services
59. After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to examine
whether the device meets performance and safety qualifications. This is part of the _____ phase of the new-
product development process.
a. product design
b. screening
c. product development
d. concept testing
e. test marketing
60. Marcellis is a product manager for a major electronics company. His current project deals with the development
and introduction of a new smartphone. Since there are a number of smartphones currently out on the market,
Marcellis is concerned about product failure. Currently, Marcellis and his team are in the screening phase of the
new product development process. Has his team already passed the phase which is best able to measure the
product failure concern?
a. Yes, the best phase is the idea generation phase.
b. Yes, the best phase is the concept testing phase.
c. No, the best phase is the concept testing phase.
d. Yes, the best phase is the test marketing phase.
e. No, the best phase is the test marketing phase.
Chapter 11 – Developing and Managing Goods and Services
61. Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar
detector and plan to advance directly to regional commercialization of the new product. In this instance, they are
contemplating skipping the _____ phase of the new-product development process.
a. screening
b. test marketing
c. product development
d. business analysis
e. idea generation
62. The test marketing phase of the new-product development process:
a. is an extension of the product development phase.
b. should be conducted immediately after business analysis.
c. eliminates the risk of product failure.
d. is a sample launching of the entire marketing mix.
e. prevents competitors from copying the product.
Chapter 11 – Developing and Managing Goods and Services
63. Which of the following statements is true of the test marketing stage of the new-product development process?
a. Test marketing is simply an extension of the screening and development stages.
b. All the products that undergo test marketing must be launched.
c. Test marketing allows marketers to expose a product in a natural marketing environment to measure its sales
performance.
d. In test marketing, a small sample of potential buyers is presented with a product idea to determine their
attitudes regarding the product.
e. Test marketing enables companies to eliminate the risk of product failure.
64. PepsiCo has developed a new flavor of soft drink that it wants to test to determine reactions of probable buyers.
Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft
drink?
a. There are research and audit services available in the test area.
b. Retailers in the test area would be cooperative.
c. Testing efforts would not be easily jammed by competitors.
d. Tourism is a major industry in the test area.
e. The test area has stable year-round sale of soft drinks.
Chapter 11 – Developing and Managing Goods and Services
65. The management team at Tablerock Foods believes that it has come up with a delicious low-calorie dessert, but it is
uncertain about the type of promotional and pricing campaigns to be used that can ensure better receptivity by
consumers. In this instance, the management team should probably proceed to the _____ stage of the new-product
development process.
a. idea generation
b. commercialization
c. screening
d. test marketing
e. product development
66. One disadvantage of test marketing a new product is that:
a. the product is distributed on a regional basis.
b. competitors may copy the product and rush to introduce a similar product.
c. the results give little indication of the product’s future success.
d. price, advertising, and packaging cannot be varied from market to market.
e. it does not allow marketers to measure the extent of repeat purchases.
Chapter 11 – Developing and Managing Goods and Services
67. Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale
manufacturing and marketing of the new Genie-Vac. They are in the _____ phase of the new-product
development process.
a. test marketing
b. business analysis
c. concept testing
d. product development
e. commercialization
68. When Natalie and Chris analyze the results from a recently completed test market to determine if any changes in
the marketing mix of the product are needed, they are in the _____ phase of the new-product development
process.
a. idea generation
b. commercialization
c. concept testing
d. business analysis
e. screening
Chapter 11 – Developing and Managing Goods and Services
69. During the commercialization phase of the new-product development process, a new product is launched in stages,
starting in one geographic area and gradually expanding into adjacent areas. This gradual introduction of the product
is known as:
a. market development.
b. concept testing.
c. rollout.
d. market extension.
e. jamming.
70. Which of the following is a disadvantage of gradually introducing a new product to a market?
a. It increases the risk of introducing a new product.
b. It makes a firm more susceptible to losses.
c. It prohibits fine-tuning of the marketing mix often leading to customer dissatisfaction.
d. It allows competitors to monitor the results of the new product.
e. It prevents product differentiation based on geographical differences.
Chapter 11 – Developing and Managing Goods and Services
71. Frito Lay introduces a new variety of Doritos initially in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois;
and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in the whole of the selected
states, then in the adjacent states, and finally in the entire country. Frito-Lay is using a _____ for its new variety of
Doritos.
a. multi-stage introduction
b. rollout approach
c. test-market expansion
d. mass commercialization
e. trickle-down approach
72. The ability of a product to provide the same level of quality over time is called:
a. consistency.
b. longevity.
c. variability.
d. functionality.
e. accuracy.
Chapter 11 – Developing and Managing Goods and Services
73. The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is called:
a. quality.
b. longevity.
c. variability.
d. functionality.
e. design.
74. Victor thinks that a Lexus coupe is a quality vehicle. Yet compared to a Mercedes Benz, he feels the quality of a
Lexus is not as high. This demonstrates that the dimension of _____ is relative or difficult to describe without a
basis of comparison.
a. consistency of quality
b. level of quality
c. product differentiation
d. quality rollout
e. product positioning
Chapter 11 – Developing and Managing Goods and Services
75. Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of
those made for racing. Furthermore, Schwinn has added several new features to its bike that are attractive to
individualswhoworkas“bikemessengers”inlarge,urbancities.Sincenoothercompanymakesabikethathas
these specific attributes, Schwinn is creating a:
a. commercialization.
b. brand extension.
c. product line.
d. product position.
e. product differentiation.
76. TerraCycleisacompanythattakeswasteand“upcycles”itintonewproducts.Currently,TerraCyclemarketsa
bicycle rack made of recycled plastic to schools, parks, and cities. This rack does not scratch or damage the bikes
as concrete and steel racks do, and is eco-friendly since it is made of waste material. TerraCycle is differentiating
its product based on:
a. intended use.
b. support services.
c. durability.
d. product features.
e. aesthetic modification.
Chapter 11 – Developing and Managing Goods and Services
77. Which of the following best defines product features?
a. The sensory appeal of a product
b. Mechanical efforts or activities a company provides that add value to a product
c. Specific design characteristics that allow a product to perform certain tasks
d. How a product is conceived, planned, and produced with the necessary functions
e. The physical appearance of a product
78. The Home Depot differentiates its product offerings from its competition with stores like Sam’s, by offering delivery
and installation, warranties, and repairs. The Home Depot is differentiating through:
a. product ancillaries.
b. company quality.
c. customer services.
d. company features.
e. product features.
Chapter 11 – Developing and Managing Goods and Services