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73) Horon Furniture is a manufacturer of office furniture. The company is known for its
innovative multipurpose furniture. When designing a new product, the designers list several
ideas and consider each in relationship to others. For example, the company considers various
options such as an office table, foldable chairs, and filing cabinet, etc. Finally, the company may
come up with a foldable office table with chairs attached and with a filing cabinet. Describe the
creativity technique used at Horon Furniture.
74) Use reverse assumption analysis to analyze a school.
75) A group of young students run an Internet center. In an attempt to increase their profitability
they start a cafe alongside the existing business. Explain the type of marketing used here.
76) A(n) ________ is a possible product the company might offer to the market.
A) test brand
B) alpha product
C) beta version product
D) product idea
E) product concept
77) A(n) ________ is an elaborated version of a product idea expressed in consumer terms.
A) test brand
B) alpha product
C) beta product
D) business schedule
E) product concept
78) A category concept defines the product's attributes and features.
79) When a company combines two product concepts or ideas to create a new offering, it is
called reverse assumption analysis.
80) What is a brand-positioning map?
81) What are some of the ways a firm can draw new ideas from its customers?
82) ________ means presenting the product concept to target consumers, symbolically or
physically, and getting their reactions.
A) Perceptual mapping
B) Brand-positioning mapping
C) Brand attribute mapping
D) Concept development
E) Concept testing
83) Modern firms use the ________ tool to design products on a computer and then produce
rough models to show potential consumers for their reactions.
A) morphological analysis
B) rapid prototyping
C) concept testing
D) perceptual mapping
E) conjoint analysis
84) Brown & Smith Inc. engages in the design, development, making, and retail selling of
designer jewelry in North America. Before approving a new design, the company draws it on a
computer and then produces models to show potential consumers and get their reactions. This
allows the company to analyze the possible customer reaction. Identify the concept testing
method used here.
A) conjoint analysis
B) perceptual mapping
C) virtual reality testing
D) rapid prototyping
E) digital fabrication
85) Consumer preferences for alternative product concepts can be measured through ________, a
method for deriving the utility values that consumers attach to varying levels of a product's
attributes.
A) concept testing
B) perceptual mapping
C) gap level analysis
D) conjoint analysis
E) morphological analysis
86) With ________, respondents see different hypothetical offers formed by combining varying
levels of the attributes, then rank the various offers.
A) gap level analysis
B) conjoint analysis
C) perceptual mapping
D) concept testing
E) morphological analysis
87) Universal Services Inc. provides communication services to residential and business
customers in rural and small urban communities primarily in northern England. The company
offers services such as local and long distance voice, data, and Internet and broadband product
offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to
provide special voice and data packages to its customers. The company designs eight different
packs that offer varying voice and data benefits to customers. The company then asks a few of its
customers to rank the packs in order to choose two best packs. Which of the following testing
methods is being used in this scenario?
A) virtual reality testing
B) conjoint analysis
C) perceptual mapping
D) product fabrication
E) rapid prototyping
88) The trade-off approach may be easier to use when there ________.
A) are many variables
B) are only a few alternatives
C) are observers that are biased
D) are possible offers that are limited
E) is only one highly desirable solution
89) ________ is a "hybrid" data collection technique that combines self-explicated importance
ratings with pair-wise trade-off tasks.
A) Sales wave analysis
B) Simulative data testing
C) Adaptive conjoint analysis
D) Business analysis
E) Exponential data collection
90) ________ exhibit replacement cycles dictated by physical wear or obsolescence associated
with changing style, features, and performance.
A) Frequently purchased products
B) High-moving goods
C) Inexpensive products
D) Commodity products
E) Infrequently purchased products
91) To estimate replacement sales, management must research the product's ________, the
number of units that fail in year one, two, three, and so on.
A) survival-age distribution
B) life-cycle ratio
C) obsolescence rate
D) business turnover ratio
E) product-performance usage
92) ________ contribution lists the changes in income to other company products caused by the
introduction of a new product.
A) Supplementary
B) Dragalong
C) Gross
D) Cumulative
E) Net
93) The highest loss a project can create is called ________.
A) rapid prototyping income
B) payback income
C) maximum investment exposure
D) incremental yearly exposure
E) cannibalized income
94) The job of translating target customer requirements into a working prototype is helped by a
set of methods referred to as ________.
A) quality function deployment
B) quality control processes
C) rapid prototyping
D) marketing control
E) control system formation
95) Which of the following methodologies takes the list of desired customer attributes (CAs)
generated by market research and turns them into a list of engineering attributes (EAs) that
engineers can use?
A) quality control processes
B) quality function deployment
C) rapid prototyping
D) marketing control
E) control system formation
96) ________ testing is a customer test that involves placing the product within the firm to see
how it performs in different applications.
A) Beta
B) Research
C) Sales-wave
D) Alpha
E) Simulated
97) In consumer-goods market testing, the company seeks to estimate four variables. These four
variables are: trial, first repeat, adoption, and ________.
A) guaranteed response
B) price sensitivity
C) purchase frequency
D) usage convenience
E) preferential treatment
98) A large FMCG company decides to test market Kora, a new brand of face cleanser, to be
launched soon. The company initially distributes a few free samples to some prospective
consumers. Later it offers the product to the customers at a discounted price and observes that
not only more than seventy percent of the customers are purchasing it but the same number are
also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count
of the number of people purchasing the product repeatedly. Which of the following testing
methods is being used here?
A) simulated testing
B) controlled testing
C) full test marketing
D) parallel testing
E) sales-wave research
99) Which of the following is an advantage of sales-wave research?
A) It gives surprisingly accurate results on advertising effectiveness.
B) It allows the brand to gain favorable shelf position.
C) It guarantees immediate brand recognition and high sales volume.
D) It can be implemented quickly with a fair amount of security.
E) It easily creates a buzz in the minds of customers.
100) Which of the following is usually referred to as a full-blown test market?
A) an internal focus group
B) a discussion group
C) a country
D) a city or a few cities
E) a laboratory
101) The least costly way of consumer-goods market testing is ________.
A) simulated test marketing
B) controlled test marketing
C) a few test markets
D) sales-wave research
E) test marketing in 25 percent of the country
102) Which of the following products is most likely to undergo alpha and beta testing?
A) food products
B) industrial goods
C) consumer products
D) commodities
E) FMCG products
103) During ________ testing, the company's technical people observe how customers use the
product, a practice that often exposes unanticipated problems of safety and servicing and alerts
the company to customer training and servicing requirements.
A) beta
B) research
C) sales-wave
D) alpha
E) simulated
104) Concept testing means validating the product concept by discussing within the design
group.
105) Rapid prototyping refers to designing products on a computer and then producing rough
models to show potential consumers for their reactions.
106) Perceived value refers to the gap between actual needs and satisfied needs of a customer.
107) Consumer preferences for alternative product concepts can be measured with conjoint
analysis.
108) A major drawback of conjoint analysis is that it cannot be used to measure objective
attributes such as estimated market share and profit.
109) The trade-off approach may be easier to use when there are only a few variables and
alternatives.
110) Beta testing tests the product within the firm to see how it performs in different
applications.
111) Sales-wave research can be implemented quickly and carried out without final packaging
and advertising.
112) Expensive industrial goods and new technologies will normally undergo alpha and beta
testing.
113) In response to a short-term oversupply of wine in the marketplace, the makers of Kendall-
Jackson developed two new brands by using rapid prototyping — designing products on a
computer and producing rough models to show potential consumers for their reactions — to
quickly bring its ideas to life.
114) Cannibalized income is additional income to a company as a result of a new product.
115) Customers of a proposed truck may want a certain acceleration rate, which is a desired
customer attribute. Engineers can turn this into the required horsepower and other engineering
attributes through a process known as alpha testing.
116) What is concept testing? What is its importance? Explain two modern techniques used for
concept testing.
117) Explain the concepts of sales-wave research and simulated test marketing.
118) Caribou Coffee Company Inc. operates coffeehouses primarily in the United States. The
company wants to launch a new brand of specialty coffee and it has created a few hypothetical
combinations. The company wants to select two of the combinations after obtaining a ranking by
customers based on their preference. What concept testing method is suited here?
