companies seek to improve their current products for 4 reasons:
1) a simple point of corporate pride
2) to be consistent with a image as being innovative
3) as an effort to better satisfy current customers or attract new customers
4) to stave off competition
areal test markets
Some 40 to 50 small metropolitan areas throughout the US are known to marketing research firms as having characteristics that are representative of the country as a whole
electronic test markets
A sample of metropolitan areas is selected, and within each market, some households are designated to be test and others control. All the local context is therefore equated
premarket launch test
A customer is recruited to go to an office in the mall where they are given a budget and have an opportunity to buy the new product, which is offered among competitors or related products
diffusion of innovation
2.5% innovators 13.5% early adopters 34% early majority 34% late majority 16% laggards
In context to product development, a top-down approach is also called an inside out approach because the idea comes from:
a) the primary raw material suppliers.
b) the firm's product distributors.
c) the firm's customers.
d) within the firm.
d
A change in the "context" of the 5Cs is directly proportional to new product development.
a. True
b. False
true
With reference to new product development, which of the following statements is true regarding the difference between the top-down approach and the marketing approach that is followed by firms?
a. A firm following the top-down approach uses subliminal ads
b
In the ________ stage of the new product development process, the company tries to get customers' feedback on the most promising idea from its pool of selected ideas.
a. concept testing
b. refining
c. brainstorming
d. problem solving
a
Focus groups refer to the form of marketing research that:
a. groups customer segments into a separate niche market segment.
b. groups customer segments based on demographic factors.
c. asks a group of people to describe the use of a product in a specific
c
With reference to a focus group, conjoint analysis refers to:
a. combining two customer segments to form a new customer segment.
b. combining two product attributes to form a single product attribute.
c. combining two products from different product categ
b
Beta testing refers to:
a. estimating the profitability and breakeven point of a product idea using statistical tools.
b. launching a product and estimating the sales volume of the same product.
c. creating the physical prototype of a product, and testing
c
A virtual grocery store aisle is an example of the ________ type of test market.
a. alpha
b. area
c. simulated
d. electronic
c
Forecasting is the:
a. factor that distinguishes external test markets from internal test markets.
b. unique collection of ideas from a unique niche group segment.
c. factor used to distinguish between two different core product attributes.
d. prediction
d
In the context of a mature consumer packaged goods company, new product development moves at a rapid pace for straightforward brand extensions.
a. True
b. False
true
A ________ is used in marketing to describe the evolution and duration of a product in the market.
a. product life cycle
b. beta product model
c. simulated market
d. motivational circle
a
In the product life cycle, price skimming takes place at the market growth stage.
a. True
b. False
false
Customer awareness of a product in the market growth stage is greater than the customer awareness of the same product in the ________ stage.
a. market maturity
b. market introduction
c. product decline
d. product saturation
b
In the market maturity stage of the product life cycle, products proliferate to a fuller product line.
a. True
b. False
true
With respect to diffusion of innovation, customers from the "________" group are more risk averse than customers from the "late majority" group.
a. innovators
b. laggards
c. early adopters
d. early majority
b
The most stunning demographic trend in America and Western Europe is that the population is _____________.
(Aging)
Amos does not want to find new customers or create new products. Instead, he is opening more stores and improving the marketing mix�more intriguing advertising, better pricing, better reward program, better in-store service, better store ambience, etc. Wh
(Market penetration)
The opposite of a top-down approach is usually called ___________.
(Co-creation)
The __________ are a group of approximately 10-15% of the population who is so influential that the loss of one of these customers costs the firm more than the loss of later adopters.
(Early adopters)
What growth strategy combines new markets and new products?
(Diversification)
There is less risk with ________ new products than with ________ new products.
(Incrementally, really)
The _________ are more risk averse and waiting to hear that earlier adopters have had favorable experiences with the new product.
(Early majority)
_________tends to be higher when the product has a clear relative advantage over existing products, is compatible with the customer's lifestyle, and is not overly complex (or the complexity is masked by a user-friendly interface), and is easily tried or s
(Consumer acceptance)
In which phase of the Product Life Cycle is customer awareness getting stronger, and there may be some buzz in the marketplace?
(Market growth)
What term refers to the likelihood that the target segment will buy the product?
(Purchase intention)
The process of developing new products depends first on a company's __________.
(Culture)
Regarding fast-growing economies, what does "BRIC" stand for?
(Brazil, Russia, India, China)
Saying, "Okay, maybe some ideas are in fact bad ideas" corresponds to which step in the process of creating new products?
(In house winnowing and refinement)
Company ABC is about to launch a fuller product line in an effort to satisfy more customer segments in the market. Given these activities, Company ABC's current product(s) is most likely in which stage of the Product Life Cycle?
(Maturity)
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?
(Concept testing)
Marketing management is involved throughout the new product development process, and especially in the __________ stage.
(Idea generation)
Forecasting is represented by which of the following equations?
($SP= MP x PI x Pr)
Research has suggested ratcheting down the purchase intention estimate by a factor of __________
(�)
In order to calculate sales potential, we need to know what three things
(Market potential, purchase intention, price)
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.
(Inside-out)
Which of the following steps comes immediately after idea creation in the new product development process?
(In house winnowing and refinement)
Traditionally, 40-50 small metropolitan areas throughout the U.S. are known to marketing research firms as having characteristics representative of the country as a whole. These are called __________.
(Area test markets)
companies seek to improve their current products for 4 reasons:
1) a simple point of corporate pride
2) to be consistent with a image as being innovative
3) as an effort to better satisfy current customers or attract new customers
4) to stave off competition
areal test markets
Some 40 to 50 small metropolitan areas throughout the US are known to marketing research firms as having characteristics that are representative of the country as a whole
electronic test markets
A sample of metropolitan areas is selected, and within each market, some households are designated to be test and others control. All the local context is therefore equated
premarket launch test
A customer is recruited to go to an office in the mall where they are given a budget and have an opportunity to buy the new product, which is offered among competitors or related products
diffusion of innovation
2.5% innovators 13.5% early adopters 34% early majority 34% late majority 16% laggards
In context to product development, a top-down approach is also called an inside out approach because the idea comes from:
a) the primary raw material suppliers.
b) the firm's product distributors.
c) the firm's customers.
d) within the firm.
d
A change in the "context" of the 5Cs is directly proportional to new product development.
a. True
b. False
TRUE
With reference to new product development, which of the following statements is true regarding the difference between the top-down approach and the marketing approach that is followed by firms?
a. A firm following the top-down approach uses subliminal ads
b
In the ________ stage of the new product development process, the company tries to get customers' feedback on the most promising idea from its pool of selected ideas.
a. concept testing
b. refining
c. brainstorming
d. problem solving
a
Focus groups refer to the form of marketing research that:
a. groups customer segments into a separate niche market segment.
b. groups customer segments based on demographic factors.
c. asks a group of people to describe the use of a product in a specific
c
With reference to a focus group, conjoint analysis refers to:
a. combining two customer segments to form a new customer segment.
b. combining two product attributes to form a single product attribute.
c. combining two products from different product categ
b
Beta testing refers to:
a. estimating the profitability and breakeven point of a product idea using statistical tools.
b. launching a product and estimating the sales volume of the same product.
c. creating the physical prototype of a product, and testing
c
A virtual grocery store aisle is an example of the ________ type of test market.
a. alpha
b. area
c. simulated
d. electronic
c
Forecasting is the:
a. factor that distinguishes external test markets from internal test markets.
b. unique collection of ideas from a unique niche group segment.
c. factor used to distinguish between two different core product attributes.
d. prediction
d
In the context of a mature consumer packaged goods company, new product development moves at a rapid pace for straightforward brand extensions.
a. True
b. False
TRUE
A ________ is used in marketing to describe the evolution and duration of a product in the market.
a. product life cycle
b. beta product model
c. simulated market
d. motivational circle
a
In the product life cycle, price skimming takes place at the market growth stage.
a. True
b. False
FALSE
Customer awareness of a product in the market growth stage is greater than the customer awareness of the same product in the ________ stage.
a. market maturity
b. market introduction
c. product decline
d. product saturation
b
In the market maturity stage of the product life cycle, products proliferate to a fuller product line.
a. True
b. False
TRUE
With respect to diffusion of innovation, customers from the "________" group are more risk averse than customers from the "late majority" group.
a. innovators
b. laggards
c. early adopters
d. early majority
b
The most stunning demographic trend in America and Western Europe is that the population is _____________.
(Aging)
Amos does not want to find new customers or create new products. Instead, he is opening more stores and improving the marketing mix�more intriguing advertising, better pricing, better reward program, better in-store service, better store ambience, etc. Wh
(Market penetration)
The opposite of a top-down approach is usually called ___________.
(Co-creation)
The __________ are a group of approximately 10-15% of the population who is so influential that the loss of one of these customers costs the firm more than the loss of later adopters.
(Early adopters)
What growth strategy combines new markets and new products?
(Diversification)
There is less risk with ________ new products than with ________ new products.
(Incrementally, really)
The _________ are more risk averse and waiting to hear that earlier adopters have had favorable experiences with the new product.
(Early majority)
_________tends to be higher when the product has a clear relative advantage over existing products, is compatible with the customer's lifestyle, and is not overly complex (or the complexity is masked by a user-friendly interface), and is easily tried or s
(Consumer acceptance)
In which phase of the Product Life Cycle is customer awareness getting stronger, and there may be some buzz in the marketplace?
(Market growth)
What term refers to the likelihood that the target segment will buy the product?
(Purchase intention)
The process of developing new products depends first on a company's __________.
(Culture)
Regarding fast-growing economies, what does "BRIC" stand for?
(Brazil, Russia, India, China)
Saying, "Okay, maybe some ideas are in fact bad ideas" corresponds to which step in the process of creating new products?
(In house winnowing and refinement)
Company ABC is about to launch a fuller product line in an effort to satisfy more customer segments in the market. Given these activities, Company ABC's current product(s) is most likely in which stage of the Product Life Cycle?
(Maturity)
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?
(Concept testing)
Marketing management is involved throughout the new product development process, and especially in the __________ stage.
(Idea generation)
Forecasting is represented by which of the following equations?
($SP= MP x PI x Pr)
Research has suggested ratcheting down the purchase intention estimate by a factor of __________
(�)
In order to calculate sales potential, we need to know what three things
(Market potential, purchase intention, price)
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.
(Inside-out)
Which of the following steps comes immediately after idea creation in the new product development process?
(In house winnowing and refinement)
Traditionally, 40-50 small metropolitan areas throughout the U.S. are known to marketing research firms as having characteristics representative of the country as a whole. These are called __________.
(Area test markets)