MKTG 431: Mini Test 5

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Mini Test 5

Companies frequently develop new products by combining two different technologies to come up with a product that represents a dynamically continuous innovation. This is known as _____________?

Choose one answer.
a. Synergy.
b. Convergence
c. Feature creep
d. Brainstorming
e. Continuum

b. Convergence

Which of the following statements about new product development is TRUE?
Choose one answer.

a. Economical access to buyers can be improved by lowering the price of your new product.
b. The most important factor to consider in new product development is do you have the ability to execute the marketing plan effectively.
c. The vast majority of new products introduced to the market place fail.
d. All products that have an insignificant point of difference fail.
e. Discontinuous innovations are better than continuous innovations.

c. The vast majority of new products introduced to the market place fail.

The biggest disadvantage to introducing a new product that represents a continuous innovation is that?

Choose one answer.
a. It more difficult to modify an existing product than it is to come up with an entirely new product.
b. You can only use continuous innovation when a competitor copies your existing product.
c. It is difficult to gain a sustainable competitive advantage with incremental changes.
d. These are all disadvantages of continuous innovations.
e. The customer may not understand how to use the product anymore.

c. It is difficult to gain a sustainable competitive advantage with incremental changes.

A ___________ is a distinctive manner of dress or presentation?

Choose one answer.
a. Style
b. Attitude
c. Attribute
d. Fashion.
e. Feature

a. Style

In class, your instructor presented research about businesses showing profit leaders generate 39% of sales from new products while profit laggards generate 23% of sales from new products. What was the point he was trying to make?

Choose one answer.
a. You should aim to have between 23% and 39% of your revenue from new products based on these benchmarks.
b. It is really important for businesses to develop new products.
c. The vast majority of new product ideas fail.
d. Businesses would be even more profitable if they didn't waste a lot of time and effort developing new products.
e. It is important for students to be able to critically evaluate research.

b. It is really important for businesses to develop new products.

What do we mean when we say that, from the consumer perspective, new products span a continuum from small, incremental changes to radically different products?

Choose one answer.
a. We mean all of these things when we speak of the new product continuum.
b. That new products start out as incremental changes to existing products and go through refinements until they become radically different products.
c. That consumers may be unaware of the difference between incremental changes and radically different products unless the manufacturer communicates the difference to them.
d. That whether or not a product is new depends on how the manufacturer chooses to position it on the continuum.
e. That 'newness' is hard to define and new could mean different things for different products.

e. That 'newness' is hard to define and new could mean different things for different products.

One of the strategies during the decline stage of the product life cycle is to stop spending money on advertising continue to sell the product as long as customers are willing to buy it. This strategy is called?

Choose one answer.
a. Repositioning the product.
b. Divesting the product.
c. Shaking the product.
d. Skimming the product.
e. Milking the product.

e. Milking the product.

One common strategy to extend the life of a product in the maturity stage of the product life cycle is to ____________?

Choose one answer.
a. Divest the product.
b. Use subliminal advertising.
c. Go back to market testing.
d. Reposition the product to appeal to a new market segment
e. Skim the product.

d. Reposition the product to appeal to a new market segment

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company typically first create a physical prototype of a new product?

Choose one answer.
a. Commercialization
b. New-product strategy development
c. Technical development
d. Idea generation
e. Screening and evaluation
f. Business analysis
g. Market Testing

c. Technical development

One of the strategies during the decline stage of the product life cycle is to sell the product to another company or simply to stop producing the product. This strategy is called?

Choose one answer.
a. Exiting the market.
b. Harvesting the product.
c. Shaking the product.
d. Leaving the scene of an accident.
e. Milking the product.

a. Exiting the market.

The two components of quality are?

Choose one answer.
a. Features, benefits.
b. Price, benefits received.
c. Benefits received, consistency.
d. Cost of obtaining the benefit, benefits received.
e. Reliability, warranty

c. Benefits received, consistency.

What do we mean when we speak of the length of a product line?

Choose one answer.
a. The range of prices associates with a particular group of products
b. All of the above.
c. The number of different kinds of products carried by a business
d. The number of choices within a product category
e. The age of the inventory for a particular product

d. The number of choices within a product category

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company identify feasible ideas and turn them into product concepts?

Choose one answer.
a. Screening and evaluation
b. New-product strategy development
c. Business analysis
d. Idea generation
e. Commercialization
f. Technical development
g. Market Testing

a. Screening and evaluation

The central level of the levels of the product concept consists of:

Choose one answer.
a. The tangible component of the product offering.
b. The consumer's internal motivation for purchasing a product
c. The bundle of tangible and intangible attributes that satisfy a consumer's need
d. These are all related to the central layer of the layers of the product concept.
e. The core benefit that a consumer will get from the product.

e. The core benefit that a consumer will get from the product.

The actual product, in the levels of the product concept refers to:

Choose one answer.
a. All of these are what the actual product refers to.
b. The physical, or what we think of as the tangible component of the product.
c. The bundle of tangible and intangible attributes we normally think of as the product.
d. The physical product or, in the case of a service, the service offering.
e. The core benefit the product is designed to deliver.

c. The bundle of tangible and intangible attributes we normally think of as the product.

When dealing with tangible products, consistency is usually measured in terms of?

Choose one answer.
a. Features
b. Attributes.
c. Systems
d. Cost/benefit analysis.
e. Defects

e. Defects

The Boston Consulting Group matrix is a 2x2 matrix with ___________ on one axis and ___________ on the other axis. This creates four positions: cash cows, stars, problem children (or question marks) and dogs.

Choose one answer.
a. market growth rate, inflation
b. market growth rate, relative market share
c. product lines, prices
d. market growth rate, competitive position
e. Product growth rate, market growth rate

b. market growth rate, relative market share

The Boston Consulting Group matrix is a 2x2 matrix with four positions: cash cows, stars, problem children (or question marks) and dogs. When looking at market segments, the portfolio approach is a useful tool for:

Choose one answer.
a. Identifying new market opportunities
b. identifying market segments that are currently profitable, but may not be profitable in the future.
c. Identifying markets to leave
d. Identifying market segments to invest more money in
e. The BCG matrix is useful for all of these.

e. The BCG matrix is useful for all of these.

The goal at the ______________ stage of the product life cycle is to maximize profit without investing a lot of resources in the product.

Choose one answer.
a. Introductory
b. Decline
c. Growth
d. Rebirth
e. Maturity

b. Decline

A discontinuous innovation is?

Choose one answer.
a. An opportunity to gain a significant competitive advantage.
b. A product so innovative that it can change the way we live.
c. A discontinuous innovation is all of these things.
d. A product that is "new to the world"
e. A product so new that customers may not understand how to use it.

c. A discontinuous innovation is all of these things.

A continuous innovation is?

Choose one answer.
a. A modification to an existing product.
b. A way to create distance between your product and a competitor's product position.
c. A continuous innovation is all of these things.
d. A way to eliminate distance between your product and a competitor's product position.
e. A way to create an incremental competitive advantage.

c. A continuous innovation is all of these things.

For new products that have a major benefit to the customer, but the benefit is not obvious by casual inspection, ____________ becomes an important factor in whether customers will adopt the new product?

Choose one answer.
a. Trialability
b. All of these are important when a major benefit is not obvious by casual inspection.
c. Relative advantage
d. Compatibility.
e. Observability

a. Trialability

Which of the following statements about fashion is FALSE?

Choose one answer.
a. fashion products with very short product life cycles are called fads
b. fashion marketing works because we want to be unique and at the same time we want to be part of a group
c. Forecasting is less important for fashion than it is for other products.
d. Fashion marketing uses 'style obsolescence' to make products seem out of date.
e. Fashion products can have a product life cycle of from a few months to several years.

c. Forecasting is less important for fashion than it is for other products.

Which of the following is NOT a characteristic of a product line?

Choose one answer.
a. Satisfy a class of needs
b. Distributed through the same outlet
c. Used together
d. Sold to different customer groups
e. Fall within a given price range.

d. Sold to different customer groups

Bruce was writing test questions for his marketing class. It was getting very late in the afternoon and he was tired. So he went over to the student union looking for a snack. He noticed that he could buy ice cream for $3 including tip. He thought that he could save a lot of money if he had a refrigerator in his office. They are sort of expensive and take up space so he would probably have to do some looking. He went online and found a number of small refrigerators. Armed with the information about what should be available and what a good price would be, he stopped at three appliance stores before selecting a refrigerator for his office. In terms of product classification, a refrigerator is a(n) for Bruce?

Choose one answer.
a. Unsought product
b. Specialty good
c. Sought product.
d. Shopping good
e. Convenience good

d. Shopping good

The new product development process has seven stages going from new product strategy development to commercialization. At which stage will a company be seeking input from customers, following up on complaints, listening to employees, analyzing market research and monitoring competitors?

Choose one answer.
a. Screening and evaluation
b. Idea generation
c. Market Testing
d. Commercialization
e. Business analysis
f. New-product strategy development
g. Technical development

b. Idea generation

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