Question 1

An individual moves through stages before adopting a product. During the interest stage, consumers ________.

Accepted Answer

A)   evaluate the product for trial purchase
B)   purchase the product for the purpose of making a value decision
C)   seek out added information about a product for further evaluation
D)   feel, see, and touch the product
E)   purchase the product with the intent of becoming a dependable userF) D) and E)
G) C) and D)

Question 2

While screening and evaluating ideas, a stop-to-market mistake happens when ________.

Accepted Answer

A)   a bad idea is allowed to make it to market
B)   a company decides to market a product that has a fatal flaw
C)   a good idea is pushed forward without knowing the ROI of its execution
D)   a good idea is prematurely eliminated during the screening process
E)   a company fails to stop a bad product idea from moving into product developmentF) B) and C)
G) A) and B) D

Question 3

The rate at which new products become accepted is known as the ________ process.

Accepted Answer

A)   variance
B)   sensitivity
C)   adoption
D)   steering
E)   diffusionF) B) and C)
G) A) and B)

Question 4

Which of the following characterizes the decline stage of the product life cycle?

Accepted Answer

A)   New and improved models are sold at high price points.
B)   Attractive price points are set to gain market share and discourage competitors.
C)   Established competition makes price pressures more pronounced, forcing lower-price strategy if product not well-differentiated.
D)   Significant price pressures come from competitors and consumers.
E)   Existing models or earlier generations move down in price.F) A) and C)
G) B) and D)

Question 5

External sources of generating product ideas include ________.

Accepted Answer

A)   employees from R&D
B)   marketing executives
C)   customer service representatives
D)   customers
E)   salespeopleF) C) and E)
G) A) and E)

Question 6

More than any other product discriminator, style offers the advantage to a company of being ________.

Accepted Answer

A)   a low-cost differentiator
B)   easy to do consistently over time
C)   able to ensure high quality
D)   difficult for competition to copy
E)   associated with high repairabilityF) A) and C)
G) A) and B)

Question 7

________ are product enthusiasts who enjoy being the first to try and master a new product.

Accepted Answer

A)   Innovators
B)   Early adopters
C)   Early majority
D)   Late majority
E)   LaggardsF) D) and E)
G) All of the above

Question 8

When a company can show that its product's projected lifetime is high under certain operating conditions, it is using ________ as a product discriminator.

Accepted Answer

A)   style
B)   performance quality
C)   form
D)   durability
E)   conformance qualityF) All of the above
G) None of the above

Question 9

Which of the following is an overall evaluation of a product and usually assesses the product's probability of success?

Accepted Answer

A)   business case analysis
B)   portfolio review
C)   trend prediction
D)   situation analysis
E)   SWOT analysisF) C) and E)
G) B) and E)

Question 10

The essential component in delivering value is the product price.

Accepted Answer

A) True 
 B)False

Question 11

Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are called ________.

Accepted Answer

A)   physical aspects
B)   core competencies
C)   monetary characteristics
D)   intangible characteristics
E)   essential benefitsF) A) and B)
G) B) and D)

Question 12

The innovation diffusion process is how long it takes a product to move from ________.

Accepted Answer

A)   introduction to growth
B)   awareness to interest
C)   trial to adoption
D)   first purchase to last purchase
E)   growth to maturityF) A) and D)
G) None of the above

Question 13

Explain the difference between a product line and a product mix, Give an example of each.

Accepted Answer

A product line is a group of products linked through usage, customer profile, price points, and distribution channels or needs satisfaction. Within a product line, strategies are developed for a single product, but also for all the products in the line.
Combining all the products offered by a company is called the product mix. Small, start-up companies frequently have a relatively limited product mix, but, as companies grow, their list of products grows as well.
Examples will vary.

Question 14

The ________ product extends the core product to include additional features, designs, and innovations that exceed customer expectations.

Accepted Answer

A)   differentiated
B)   deviated
C)   amended
D)   specialized
E)   enhancedF) A) and E)
G) C) and D)

Question 15

An individual purchases a product for the purpose of making a value decision. He or she is in the ________ stage of the product adoption process.

Accepted Answer

A)   awareness
B)   interest
C)   trial
D)   evaluation
E)   adoptionF) C) and E)
G) C) and D)

Question 16

The essential benefit is the fundamental need met by a product.

Accepted Answer

A) True 
 B)False

Question 17

Everyone in a target market falls into one of five groups based on their willingness to try the innovation, including innovators, early adopters, early majority, late majority, and laggards.

Accepted Answer

A) True 
 B)False

Question 18

Combining all the products offered by a company is called the product ________.

Accepted Answer

A)   line
B)   mix
C)   profile
D)   standardization
E)   functionF) A) and B)
G) A) and C)

Question 19

The product life cycle (PLC) generally refers to a product item rather than a product category.

Accepted Answer

A) True 
 B)False

Question 20

The first step in the new-product development process is to ________.

Accepted Answer

A)   define the market opportunity
B)   generate new-product ideas
C)   define the product potential
D)   develop the product
E)   conduct business case analysisF) All of the above
G) A) and C) B

Exam 8: Product Strategy and New Product Development

An individual moves through stages before adopting a product. During the interest stage, consumers ________.

Correct Answer
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While screening and evaluating ideas, a stop-to-market mistake happens when ________.

Correct Answer
verified
D

The rate at which new products become accepted is known as the ________ process.

Correct Answer
verified

Which of the following characterizes the decline stage of the product life cycle?

Correct Answer
verified

External sources of generating product ideas include ________.

Correct Answer
verified

More than any other product discriminator, style offers the advantage to a company of being ________.

Correct Answer
verified

________ are product enthusiasts who enjoy being the first to try and master a new product.

Correct Answer
verified

When a company can show that its product's projected lifetime is high under certain operating conditions, it is using ________ as a product discriminator.

Correct Answer
verified

Which of the following is an overall evaluation of a product and usually assesses the product's probability of success?

Correct Answer
verified

The essential component in delivering value is the product price.

Correct Answer
verified

Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are called ________.

Correct Answer
verified

The innovation diffusion process is how long it takes a product to move from ________.

Correct Answer
verified

Explain the difference between a product line and a product mix, Give an example of each.

The ________ product extends the core product to include additional features, designs, and innovations that exceed customer expectations.

Correct Answer
verified

An individual purchases a product for the purpose of making a value decision. He or she is in the ________ stage of the product adoption process.

Correct Answer
verified

The essential benefit is the fundamental need met by a product.

Correct Answer
verified

Everyone in a target market falls into one of five groups based on their willingness to try the innovation, including innovators, early adopters, early majority, late majority, and laggards.

Correct Answer
verified

Combining all the products offered by a company is called the product ________.

Correct Answer
verified

The product life cycle (PLC) generally refers to a product item rather than a product category.

Correct Answer
verified

The first step in the new-product development process is to ________.

Correct Answer
verified
B

Exam 8: Product Strategy and New Product Development

An individual moves through stages before adopting a product. During the interest stage, consumers ________.

Correct AnswerverifiedShow Answer

While screening and evaluating ideas, a stop-to-market mistake happens when ________.

Correct AnswerverifiedD

The rate at which new products become accepted is known as the ________ process.

Correct AnswerverifiedShow Answer

Which of the following characterizes the decline stage of the product life cycle?

Correct AnswerverifiedShow Answer

External sources of generating product ideas include ________.

Correct AnswerverifiedShow Answer

More than any other product discriminator, style offers the advantage to a company of being ________.

Correct AnswerverifiedShow Answer

________ are product enthusiasts who enjoy being the first to try and master a new product.

Correct AnswerverifiedShow Answer

When a company can show that its product's projected lifetime is high under certain operating conditions, it is using ________ as a product discriminator.

Correct AnswerverifiedShow Answer

Which of the following is an overall evaluation of a product and usually assesses the product's probability of success?

Correct AnswerverifiedShow Answer

The essential component in delivering value is the product price.

Correct AnswerverifiedShow Answer

Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are called ________.

Correct AnswerverifiedShow Answer

The innovation diffusion process is how long it takes a product to move from ________.

Correct AnswerverifiedShow Answer

Explain the difference between a product line and a product mix, Give an example of each.

The ________ product extends the core product to include additional features, designs, and innovations that exceed customer expectations.

Correct AnswerverifiedShow Answer

An individual purchases a product for the purpose of making a value decision. He or she is in the ________ stage of the product adoption process.

Correct AnswerverifiedShow Answer

The essential benefit is the fundamental need met by a product.

Correct AnswerverifiedShow Answer

Everyone in a target market falls into one of five groups based on their willingness to try the innovation, including innovators, early adopters, early majority, late majority, and laggards.

Correct AnswerverifiedShow Answer

Combining all the products offered by a company is called the product ________.

Correct AnswerverifiedShow Answer

The product life cycle (PLC) generally refers to a product item rather than a product category.

Correct AnswerverifiedShow Answer

The first step in the new-product development process is to ________.

Correct AnswerverifiedB

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