Chapter 06 Test Bank
1. As defined in your text, a product refers to
A. any good or service that is mass produced and sold in more than one market.
B. marketed items of value that fulfill a need of an individual consumer or business.
2. The specific combination of goods, services, or ideas that a firm offers to its target market is referred to as
3. In marketing terms, the care you receive when you visit your family doctor is an example of
4. When Allstate Insurance advertises You’re in Good Hands with Allstate, it is marketing
A. a concept.
B. an action.
5. According to your text, three factors are responsible for the rapid rise in new product development. They are faster and more
economical transportation, the advent of electronic communication, and
6. Which of the following is not a way to categorize new products?
7. Which of the following makes up the smallest percentage of new products but carries the most potential (and risk) for the
company introducing them?
8. A technology that displaces an established technology and shakes up the industry, or a groundbreaking product that creates a
completely new industry is referred to as
A. planned obsolescence.
B. inventive technology.
9. Inventions that have never been seen before and create a new market are considered
10. Which of the following accurately describes new-category entries?
D. products that extend and supplement a company’s established product line
E. products that have new packaging, different features, and updated designs and functions
11. Dell doesn’t currently offer an e-reader in its product line. However, if the company decided to enter the market by producing
an e-reader of its own, it would be classified as what type of product?
12. A group of related products marketed by the same firm is its
13. The Ford Motor Company produces the Fiesta, Focus, Fusion, and Escape. As a group, these cars represent a
14. Read the following statements and select the one that is not an advantage of a product-line extension.
A. Manufacturing of goods may be more efficient.
B. Customers may feel loyalty to the product line.
15. A product labeled “new and improved” would fall within the category of a
16. A product that has new packaging, different features and updated designs and functions is a
17. How long can a company advertise a product as “new and improved” after it hits store shelves?
18. Which of the following is not one of the stages in the new-product development process?
19. The new-product strategy development stage accomplishes all of the following except
20. In what stage of the new-product development process would a company use a SWOT analysis and environmental scanning
to determine where new products may be able to help strengthen the firm’s marketing position?
A. test marketing
B. business analysis
21. The stage of the new-product development (NPD) process in which a set of product concepts is generated from which to
identify potentially viable new products is called idea
A. analysis.
B. screening.
22. Idea generation is the stage in the new-product development process in which
23. Which of the following would be considered an internal source of idea generation?
A. an independent inventor
24. Firms that generate new-product ideas by gathering both external and internal ideas are using
A. pivoting.
B. diffusion.
25. In which stage of the new-product development process do most ideas for new products and services end up getting
rejected for one reason or another?
26. Which of the following is a key question that should be asked in the idea screening stage?
A. Is the proposed product within the company’s ability to produce?
B. Will the product sell?
27. The procedure in which marketing professionals ask consumers for their reactions to verbal descriptions and rough visual
models of a potential product is called
A. concept marketing.
B. test marketing.
28. A concept test is part of which stage of the new-product development process?
A. product development
B. test marketing
29. In what stage of the new-product development process would organizations use social media to evaluate potential new
products?
30. Estimating the cost of a product, identifying the price at which a product will be sold, and estimating the demand for a
product all take place in which stage of the new-product development process?
31. Business analysis refers to the stage of the new-product development process
A. where the direction a company will take in developing a new product is determined.
B. where it is decided if a product can be developed and marketed within the time and budget constraints of the company.
32. A mock-up of a good with the materials the firm expects to use in the final product is called a
A. template.
B. sample.
33. If a product idea is deemed to have the potential of being profitable in the business analysis stage, then it moves on to the
A. idea screening stage.
B. concept testing stage.
34. In what stage of the new-product development process would a company make a prototype of the product?
A. product launch
B. idea generation
35. When Fisher-Price comes up with an idea for a new toy, it needs to ensure that the children who play with the toy will not
choke on any of its parts and that the toy in general will not be a hazard to the children who will be using it. In what stage of the
new-product development process will these safety checks occur?
A. test marketing
36. A company that is introducing a new product in its final form to a geographically limited market to see how well the product
sells and to get reactions from potential users is engaged in
A. concept marketing.
B. idea screening.
37. During which stage of the new-product development process would a firm test the marketing strategy related to the new
product?
A. product development
B. idea screening
38. If a firm builds a mock shopping experience for participants to observe their response to marketing stimuli, this is referred to
as a
A. focus group.
B. concept test market.
39. Which stage of the new-product development process is usually the most expensive for new products?
A. business analysis
B. test marketing
40. Read the following list of tasks and select the one that does not take place during the product launch stage.
A. purchase the materials to make and package the good
B. manufacture enough of the good to fill distribution pipelines
41. The term time to market refers to
A. how long a company spends test-marketing a product.
42. Burt’s company is in the process of developing what he feels is a complex and risky project. Burt has decided to use a
development sequence in which functional areas consecutively complete their development tasks. That way each set of
activities can be easily tracked. What type of development path is Burt using?
D. functional
E. departmental
43. The type of development path preferred by most supply chain management professionals is
44. Which of the following factors most likely drives the decision to use a concurrent approach in the development of high-tech
products?
A. cost
B. risk
45. When categorizing risk in new-product development, the highest level of risk occurs when
A. competitors copy products and sell them at a lower price.
B. supplier cost savings are not achieved.
46. Compare the following to determine which is not a way that companies can reduce the risk of new product failures.
A. carefully listen to the customer for new product ideas
47. The practice in which companies frequently come out with new models of a product that make existing models obsolete is an
ethical issue related to new-product development and is termed
A. time to market.
B. diversion.
48. The most common ethical issue in new-product development involves the Federal Trade Commission’s definition of the term
A. healthier.
49. A product that uses less energy to operate or can be recycled when the consumer is finished using it, it said to have
A. an ethical design.
B. a green design.
50. The process by which new products are likely to be adopted, the rate at which they will be adopted, and the process through
which the products will spread into markets is referred to as
A. distribution.
B. circulation.
51. Which of the following accurately represents the steps in the consumer adoption process?
A. awareness, research, comparison, evaluation, and adoption
B. awareness, evaluation, trial, adoption, and feedback
52. Siobhan wants to join a new health club. Her roommate belongs to a club that Siobhan heard about on the radio. She
decides to use her roommate’s free guest passes to try out the club to see if it meets her needs. What stage of the consumer
adoption process does this represent?
A. comparison
B. interest
53. Franco is considered to be tech savvy by his friends. He is unafraid to take risks when it comes to trying new products and is
always the first in his group to get the latest gizmo. What type of product adopter is Franco?
A. early adopter
B. late majority
54. What type of adopter is typically well respected by their peers and sought by marketers because they tend to be opinion
leaders who are willing to talk to other people about their experiences with their purchases?
A. laggard
B. innovator
55. Nora is in the market for a new HD television. She has spent quite a bit of time gathering information and thinking about the
purchase. She has asked her friends for opinions about the models they own and is happy that there are a lot of models to
choose from. Nora is most likely what type of adopter?
A. late majority
B. innovator
56. A good or a service will likely fail to be profitable if which of the following adopters does not purchase the product?
A. late majority
B. innovators
57. Which category of product adopters relies on others for information and buys a product because their friends have already
done so?
58. Wilbur does not like change. He thinks the cell phone he currently owns is just fine even though it doesn’t have all the
features of new phones on the market. Wilbur hopes that he doesn’t lose this phone because the company doesn’t make this
style anymore and he doesn’t want to get anything different. What type of adopter is Wilbur?
A. early majority
59. From a marketing standpoint, which group of product adopters should marketers spend the least amount of time and effort in
convincing them to buy a product?
A. early adopter
B. early majority
60. As it pertains to new product characteristics, the superior position a product enjoys over competing products if consumers
believe it has more value than other products in its category is referred to as
A. product preference.
B. compatibility.