21. In which stage of product development are prototypes developed?
a.
Product screening
c.
Product design
b.
Concept development
d.
Test marketing
22. In which stage of product development does the product typically acquire a name?
a.
Competitive analysis
c.
Product Design
b.
Concept Development
d.
Test Marketing
23. In which stage of product development does the product acquire a brand identity?
a.
Product screening
c.
Product design
b.
Concept development
d.
Test marketing
24. Which of the following takes place in the product design and development stage?
a.
Product acquires a name
b.
Product acquires a brand identity
c.
The marketing mix is developed
d.
All of the above occur during the product design and development stage
25. In which stage of product development companies need to consider both the extent to which the
product fits with the target consumers, as well as with the overall mission of the organization?
a.
Product screening
c.
Product design
b.
Concept development
d.
Test marketing
26. In which stage of product development does the company have a good indication of how the product
will be received?
a.
Product screening
c.
Product design
b.
Concept development
d.
Test marketing
27. Which form of test marketing is likely to reveal the most amount of information to potential
competitors?
a.
Controlled test marketing
c.
Simulated test marketing
b.
Full test marketing
d.
Quasi test marketing
28. Which form of test marketing recruits a sample of consumers to participate in a research study in a
central facility?
a.
Controlled test marketing
c.
Simulated test marketing
b.
Full test marketing
d.
All of the above
29. Which form of test marketing is likely to reveal the least amount of information to potential
competitors?
a.
Controlled test marketing
c.
Simulated test marketing
b.
Full test marketing
d.
Quasi test marketing
30. Which of the following is not a test marketing system mentioned in the text?
a.
LITMUS
c.
BASES
b.
ASSESSOR
d.
CYPHER
31. Regarding goodness of launch, which is the correct order of impact?
a.
High service quality, quality sales force, on-time shipment, and quality of promotion.
b.
Quality of promotion, adequate product availability, on-time shipment, and high service
quality.
c.
Product availability, promotional effort, on-time shipment, and quality sales force.
d.
High service quality, on-time shipment, adequate product availability, and quality of
promotion.
32. Which type of “new” product has the highest success rate?
a.
New to existing market
b.
New line
c.
New item in an existing product line
d.
New product to the world
33. Which type of innovation is known to create new industries?
a.
Continuous innovation
c.
Dynamically continuous innovation
b.
Discontinuous innovation
d.
Congruous innovation
34. Which type of innovation is best represented by the development of cellular telephones?
a.
Radical innovation
c.
Dynamically continuous innovation
b.
Continuous innovation
d.
Congruent innovation
35. Which type of innovation does not significantly alter consumer behavior, but does represent a change
in the consumption pattern?
a.
Continuous innovation
c.
Dynamically continuous innovation
b.
Radical innovation
d.
Congruent innovation
36. Which type of innovation has no disruption on consumption patterns?
a.
Continuous innovations
c.
Dynamically continuous innovations
b.
Discontinuous innovations
d.
Radical innovations
37. What form of innovation is the most prominent for of innovation today?
a.
Continuous innovation
c.
Dynamically continuous innovation
b.
Discontinuous innovation
d.
Congruent innovation
38. Which of the following is likely to slow the rate of product diffusion?
a.
A relative advantage
c.
Trialability
b.
Compatibility with consumer needs
d.
Complexity
39. Which type of country is most likely to be a “lead” country in terms of product diffusion?
a.
An industrialized, high-income country.
b.
A middle-income country.
c.
A low-income country.
d.
An underdeveloped country.
40. In which type of country does the diffusion rate tend to be faster?
a.
Lead countries
c.
Asian countries
b.
Lag countries
d.
Western countries
COMPLETION
1. In order to quickly recover the high costs of product development and launching, products are
marketed to consumers in ____________________ countries
2. The ____________________ stage is characterized by increasing competition, with new product
variants offered to the market, as well as rapid product adoption by the target market.
3. The ____________________ stage is characterized by a leveling or decline in profits primarily due to
intense price competition.
4. In the ____________________ stage, manufacturing moves to developing countries to save on labor
costs.
5. One of the main benefits of going international and engaging in international marketing is the ability
of a firm to extend the ___________________________________.
6. The international _________________________ is the complete assortment of the products that a
company offers to its target international consumers.
7. An important dimension of the product mix is the _________________________, a number of related
brands in the same product category.
8. Ann Klein with Ann Klein II and Armani with Emporio Armani are examples of
____________________ offerings.
9. _________________________ refers to the extent to which the different product lines are related and
use the same distribution channels and have the same final consumers.
10. The product ____________________ is the total number of brands in the product mix.
11. The product ____________________ is the total number of product lines the company offers.
12. The product ____________________ refers to the number of different offerings for a particular brand.
13. The first step in the new product development process is _________________________.
14. In the process of ______________________________, it is best to consider the extent to which the
product fits with the target consumers.
15. In the process of ______________________________, it is best to consider the extent to which the
product fits with the overall mission of the organization.
16. In the ______________________________ stage, a checklist is usually developed to screen for
product ideas that do not meet important market-related criteria..
17. ____________________ test marketing does not give competition much information about the
product.
18. _________________________ can provide a good indication of how the product will be received
when it is in the market, but this stage can also be expensive, time consuming, and open to competitive
sabotage.
19. ____________________ test marketing is limited to a few stores, is thus also less costly, and gives
only limited exposure of the product to competition.
20. ___________________ necessitates important strategic decisions and commitments that involve
channel members, intensive promotion, and high promotional expenses; it could also create conditions
for the product to be vulnerable to competitive reactions.
21. ____________________ innovations create new industries or new standards of management.
22. _________________________ innovations do not alter significantly consumer behavior, but they
represent a change in the consumption pattern.
23. ____________________ innovations have no disruption on consumption patterns and only involve
product alterations, such as new flavors, or a new product that is an improvement over the old offering.
24. _________________________ refers to the manner in which a product is adopted by consumers.
25. Countries where the product or service is first introduced and adopted are referred to as
____________________ countries.
26. Generally, the diffusion rate tends to be faster in ____________________ countries.
ESSAY
1. Discuss how the stages of the international product life cycle affect a company’s strategy.
2. Discuss some of the risks and difficulties that companies face when developing new products.
3. According to the text, what methods do companies use to generate ideas for new products or services?
4. What should be taken into consideration during the screening process of new product development?
5. What factors help to accelerate product diffusion?