Marketing MCQ: August 2021

Archive for August 2021

Identify the five main characteristics that affect the diffusion of innovations. Describe each and provide an example.

Identify the five main characteristics that affect the diffusion of innovations. Describe each and provide an example.Student answers will vary. Five...

A customer survey at a mall revealed that Zoe is considered to be an early adopter. What does this mean?

A customer survey at a mall revealed that Zoe is considered to be an early adopter. What does this mean?Answer: Early adopters are opinion leaders...

What is the consumer-adoption process? What are the various steps in the process?

What is the consumer-adoption process? What are the various steps in the process?The consumer-adoption process is the mental steps through which an individual...

Compatibility refers to the degree to which the innovation matches the values and experiences of the individuals.

Compatibility refers to the degree to which the innovation matches the values and experiences of the individuals.Answer: FA...

The step in the consumer-adoption process where a consumer considers whether to try the innovation is interest.

The step in the consumer-adoption process where a consumer considers whether to try the innovation is interest.Answer: FA...

At the interest stage of the consumer-adoption process, the consumer becomes aware of the innovation but lacks information about it.

At the interest stage of the consumer-adoption process, the consumer becomes aware of the innovation but lacks information about it.Answer: FA...

Which of the following terms refers to the degree to which the innovation can be tried on a limited basis?

Which of the following terms refers to the degree to which the innovation can be tried on a limited basis?A) compatibilityB) relative advantageC) divisibilityD)...

The degree to which the beneficial results of an innovation's use are observable or describable to others is called ________.

The degree to which the beneficial results of an innovation's use are observable or describable to others is called ________.A) divisibilityB) communicabilityC)...

Relative advantage of an innovation refers to the degree to which ________.

Relative advantage of an innovation refers to the degree to which ________.A) it matches the values and experiences of the individualsB) it is difficult...

______ is the effect one person has on another's attitude or purchase probability.

______ is the effect one person has on another's attitude or purchase probability.A) Sharing powerB) Collaborative powerC) Market influenceD) Brand powerE)...

Five characteristics influence the rate of adoption of an innovation. One of these is ________.

Five characteristics influence the rate of adoption of an innovation. One of these is ________.A) marketing expertiseB) relative advantageC) packaging...

Joseph, a student of Columbia University, finds many of his classmates have purchased an iPad tablet from Apple. The iPad, launched a few months before has been identified as a very useful product and many students in the US have rated it highly. Considering all these, Joseph also decides to purchase an iPad. Which of the following is the adopter group to which Joseph belongs?

Joseph, a student of Columbia University, finds many of his classmates have purchased an iPad tablet from Apple. The iPad, launched a few months before...

Which of the following characteristics is closely associated with late majority adopter groups?

Which of the following characteristics is closely associated with late majority adopter groups?A) superior technological knowledgeB) low price sensitivenessC)...

Jason is a technology enthusiast who is happy to conduct alpha and beta testing and report on early weaknesses of consumer electronics products. He is most likely to fall in the ________ adopter category.

Jason is a technology enthusiast who is happy to conduct alpha and beta testing and report on early weaknesses of consumer electronics products. He is...

Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) systems mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.

Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-retailer system to distribute its products. The company abstains...

People who are technology enthusiasts, venturesome, and who enjoy tinkering with new products and mastering their intricacies are called ________.

People who are technology enthusiasts, venturesome, and who enjoy tinkering with new products and mastering their intricacies are called ________.A) innovatorsB)...

Which of the following is the mental step in the consumer-adoption process where the customer starts considering whether to try an innovation?

Which of the following is the mental step in the consumer-adoption process where the customer starts considering whether to try an innovation?A) adoptionB)...

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering...

Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with other Wi-Fi enabled devices. Robert visits the company's Web site to read more about the phone. Robert is in the ________ stage of consumer-adoption process.

Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users...

Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation.

Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation.A) awarenessB) adoptionC)...

Adopters of new products move through five stages. These stages begin with ________ and follow with interest, evaluation, trial, and adoption.

Adopters of new products move through five stages. These stages begin with ________ and follow with interest, evaluation, trial, and adoption.A) awarenessB)...

A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its history.

A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its history.A) commodityB) innovationC) adoptionD) inventionE)...

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. The company has plans to enter developing markets such as Brazil and India. TechToys, GameTech's major competitor has already started operations in India. GameTech decides to delay its entry to India and to closely observe TechToys' operations in India. What is the possible rationale behind this delaying decision?

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States....

Mobile phone company HCF delayed the introduction of a new cell phone model with innovative features so that the launch could coincide with that of its competitor, LCM, which was introducing a phone with similar features. What kind of entry did HCF use? How can this benefit the company?

Mobile phone company HCF delayed the introduction of a new cell phone model with innovative features so that the launch could coincide with that of its...

What is the significance of performing business analysis?

What is the significance of performing business analysis?Answer: Business analysis is performed to study a proposal's business attractiveness. Management...

Briefly explain the three choices available to companies when deciding the timing of market entry.

Briefly explain the three choices available to companies when deciding the timing of market entry.Companies face three choices when deciding the timing.1....

Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the late entrant can avoid. This can be classified as a parallel entry.

Some firms might delay a new product launch until after the competitor has borne the cost of educating the market and its product may reveal flaws the...

Modular function deployment methodology takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use.

Modular function deployment methodology takes the list of desired customer attributes generated by market research and turns them into a list of engineering...

Dragalong income refers to additional income whereas cannibalized income refers to reduced income.

Dragalong income refers to additional income whereas cannibalized income refers to reduced income.Answer: T...

Survival-age distribution refers to the number of customers that the product has in year one, two, three, and so on.

Survival-age distribution refers to the number of customers that the product has in year one, two, three, and so on.Answer: FA...

A business analysis is typically performed after management has developed the product concept and marketing strategy.

A business analysis is typically performed after management has developed the product concept and marketing strategy.Answer: T...

After a test, the most customer-appealing offer will be the most profitable offer to make.

After a test, the most customer-appealing offer will be the most profitable offer to make.Answer: FA...

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________...

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides...

For a frequently purchased new product, the seller estimates repeat sales as well as first-time sales. A high rate of repeat purchasing means customers ________.

For a frequently purchased new product, the seller estimates repeat sales as well as first-time sales. A high rate of repeat purchasing means customers...

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. Some top managers want to collect sales-wave research, but others disagree, offering several disadvantages. List these disadvantages.

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States....

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?

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...

Explain the concepts of sales-wave research and simulated test marketing.

Explain the concepts of sales-wave research and simulated test marketing.Answer: In sales-wave research, consumers who initially try the product...

What is concept testing? What is its importance? Explain two modern techniques used for concept testing.

What is concept testing? What is its importance? Explain two modern techniques used for concept testing.Answer: Concept testing means presenting...

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.

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...

Cannibalized income is additional income to a company as a result of a new product.

Cannibalized income is additional income to a company as a result of a new product.Answer: FA...

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.

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 —...

Expensive industrial goods and new technologies will normally undergo alpha and beta testing.

Expensive industrial goods and new technologies will normally undergo alpha and beta testing.Answer: T...

Sales-wave research can be implemented quickly and carried out without final packaging and advertising.

Sales-wave research can be implemented quickly and carried out without final packaging and advertising.Answer: T...

Beta testing tests the product within the firm to see how it performs in different applications.

Beta testing tests the product within the firm to see how it performs in different applications.Answer: FA...

The trade-off approach may be easier to use when there are only a few variables and alternatives.

The trade-off approach may be easier to use when there are only a few variables and alternatives.Answer: FA...

A major drawback of conjoint analysis is that it cannot be used to measure objective attributes such as estimated market share and profit.

A major drawback of conjoint analysis is that it cannot be used to measure objective attributes such as estimated market share and profit.Answer:&nbs...

Consumer preferences for alternative product concepts can be measured with conjoint analysis.

Consumer preferences for alternative product concepts can be measured with conjoint analysis.Answer: T...

Perceived value refers to the gap between actual needs and satisfied needs of a customer.

Perceived value refers to the gap between actual needs and satisfied needs of a customer.Answer: FA...

Rapid prototyping refers to designing products on a computer and then producing rough models to show potential consumers for their reactions.

Rapid prototyping refers to designing products on a computer and then producing rough models to show potential consumers for their reactions.Answer:&...

Concept testing means validating the product concept by discussing within the design group.

Concept testing means validating the product concept by discussing within the design group.Answer: FA...

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.

During ________ testing, the company's technical people observe how customers use the product, a practice that often exposes unanticipated problems of...

Which of the following products is most likely to undergo alpha and beta testing?

Which of the following products is most likely to undergo alpha and beta testing?A) food productsB) industrial goodsC) consumer productsD) commoditiesE)...

The least costly way of consumer-goods market testing is ________.

The least costly way of consumer-goods market testing is ________.A) simulated test marketingB) controlled test marketingC) a few test marketsD) sales-wave...

Which of the following is usually referred to as a full-blown test market?

Which of the following is usually referred to as a full-blown test market?A) an internal focus groupB) a discussion groupC) a countryD) a city or a few...

Which of the following is an advantage of sales-wave research?

Which of the following is an advantage of sales-wave research?A) It gives surprisingly accurate results on advertising effectiveness.B) It allows the...

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 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...

In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and ________.

In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and ________.A)...

______ testing is a customer test that involves placing the product within the firm to see how it performs in different applications.

______ testing is a customer test that involves placing the product within the firm to see how it performs in different applications.A) BetaB) ResearchC)...

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?

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...

The job of translating target customer requirements into a working prototype is helped by a set of methods referred to as ________.

The job of translating target customer requirements into a working prototype is helped by a set of methods referred to as ________.A) quality function...

The highest loss a project can create is called ________.

The highest loss a project can create is called ________.A) rapid prototyping incomeB) payback incomeC) maximum investment exposureD) incremental yearly...

_____ contribution lists the changes in income to other company products caused by the introduction of a new product.

_____ contribution lists the changes in income to other company products caused by the introduction of a new product.A) SupplementaryB) DragalongC) GrossD)...

To estimate replacement sales, management must research the product's ________, the number of units that fail in year one, two, three, and so on.

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...

_____ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance.

_____ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance.A) Frequently purchased...

_____ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.

_____ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks.A) Sales wave analysisB)...

The trade-off approach may be easier to use when there ________.

The trade-off approach may be easier to use when there ________.A) are many variablesB) are only a few alternativesC) are observers that are biasedD)...

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?

Universal Services Inc. provides communication services to residential and business customers in rural and small urban communities primarily in northern...

With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers.

With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers.A) gap...

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.

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach...

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.

Brown & Smith Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Before approving a new design,...

Modern firms use the ________ tool to design products on a computer and then produce rough models to show potential consumers for their reactions.

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...

_______ means presenting the product concept to target consumers, symbolically or physically, and getting their reactions.

_______ means presenting the product concept to target consumers, symbolically or physically, and getting their reactions.A) Perceptual mappingB) Brand-positioning...

What are some of the ways a firm can draw new ideas from its customers?

What are some of the ways a firm can draw new ideas from its customers?Answer: Forming a brand community; using Web sites for new ideas, including...

What is a brand-positioning map?

What is a brand-positioning map?Answer: A brand-positioning map is a perceptual map showing the current positions of various existing brands competing...

When a company combines two product concepts or ideas to create a new offering, it is called reverse assumption analysis.

When a company combines two product concepts or ideas to create a new offering, it is called reverse assumption analysis.Answer: FA...

A category concept defines the product's attributes and features.

A category concept defines the product's attributes and features.Answer: FA...

A(n) ________ is an elaborated version of a product idea expressed in consumer terms.

A(n) ________ is an elaborated version of a product idea expressed in consumer terms.A) test brandB) alpha productC) beta productD) business scheduleE)...

A(n) ________ is a possible product the company might offer to the market.

A(n) ________ is a possible product the company might offer to the market.A) test brandB) alpha productC) beta version productD) product ideaE) product...

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.

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...

Use reverse assumption analysis to analyze a school.

Use reverse assumption analysis to analyze a school.Answer: Student answers will vary. Instead of assuming that a school is a place where teachers...

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.

Horon Furniture is a manufacturer of office furniture. The company is known for its innovative multipurpose furniture. When designing a new product, the...

What is crowdsourcing?

What is crowdsourcing?Answer: Crowdsourcing means inviting the Internet community to help create content or software, often with prize money or a...

Explain three techniques for stimulating creativity to generate better ideas.

Explain three techniques for stimulating creativity to generate better ideas.Answer: The following are some of the techniques. Students may explain...

A DROP-error occurs when the company accepts a bad idea.

A DROP-error occurs when the company accepts a bad idea.Answer: FA...

Morphological analysis starts by forming a new dimension and then thinks about the possible problems of the dimension.

Morphological analysis starts by forming a new dimension and then thinks about the possible problems of the dimension.Answer: FA...

Reverse assumption analysis lists all the normal assumptions about an entity and then turns them around.

Reverse assumption analysis lists all the normal assumptions about an entity and then turns them around.Answer: T...

Attribute listing lists several ideas and considers each in relationship to the others.

Attribute listing lists several ideas and considers each in relationship to the others.Answer: FA...

Employees can be a source of ideas for improving production, products, and services.

Employees can be a source of ideas for improving production, products, and services.Answer: T...

Cocreation can help a company create favorable word of mouth.

Cocreation can help a company create favorable word of mouth.Answer: T...

Crowdsourcing means inviting an Internet community to help create content or software, often with prize money or a moment of glory as an incentive.

Crowdsourcing means inviting an Internet community to help create content or software, often with prize money or a moment of glory as an incentive.An...

The stage in the new product process that occurs first and has a pass ratio of 1:4 is the ________ stage.

The stage in the new product process that occurs first and has a pass ratio of 1:4 is the ________ stage.A) idea screeningB) product developmentC) test...

A ________ error occurs when the company dismisses a good idea.

A ________ error occurs when the company dismisses a good idea.A) probabilityB) performanceC) double countingD) DROPE) GOAnswer:&nbs...

Morboro Energy Inc. is a large chain of fuel stations in Europe. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________.

Morboro Energy Inc. is a large chain of fuel stations in Europe. The company decided to expand its business by incorporating restaurants and automobile...

A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here?

A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable...

Increasingly, new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering.

Increasingly, new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering.A) reverse assumption analysisB)...

The ________ creativity technique begins with a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally a new idea materializes by associating all of the thoughts.

The ________ creativity technique begins with a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought,...

______ works by listing all the normal assumptions about an entity and then turning them around.

______ works by listing all the normal assumptions about an entity and then turning them around.A) Lateral marketingB) Attribute listingC) Reverse assumption...

Electro Locomotors (EL) Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Brazil. Bono, a hybrid car brand that the company produces, is a market leader in the hybrid vehicles segment. With the increased global focus on nature-friendly vehicles and governmental subsidies for companies that manufacture hybrid vehicles, competition has increased for flex-fuel cars like Bono. The heads of the R&D team at EL are in a creative session to generate ideas for improvements to Bono. They consider each part of the car and discuss the possibilities of improvements in each of them. Identify the creativity technique used here.

Electro Locomotors (EL) Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Brazil. Bono, a hybrid car brand that the company...

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called ________.

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden...

The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source.

The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source.A) attribute...

The ________ technique for stimulating creativity lists all the characteristics of an object and then modifies each to try to arrive at a new idea.

The ________ technique for stimulating creativity lists all the characteristics of an object and then modifies each to try to arrive at a new idea.A)...

Many people believe that customer focus does not help to create better, or new, products. This belief rests on which of the following ideas?

Many people believe that customer focus does not help to create better, or new, products. This belief rests on which of the following ideas?A) Such new...

Surgeons and ER nurses would be considered ________ for surgical equipment.

Surgeons and ER nurses would be considered ________ for surgical equipment.A) venture agentsB) internal customersC) buzz agentsD) lead usersE) connec...

Companies such as Edison Nation and the Big Idea Group have sprung up to tap into ________ possibilities, often combining its own design, branding, engineering, and sales teams with online participants, forming a community for devising new products.

Companies such as Edison Nation and the Big Idea Group have sprung up to tap into ________ possibilities, often combining its own design, branding, engineering,...

______ means inviting the Internet community to help create content or software, often with prize money or a moment of glory involved.

______ means inviting the Internet community to help create content or software, often with prize money or a moment of glory involved.A) Stage-gatingB)...

What are the benefits of brainstorming? How would one run an effective brainstorming session?

What are the benefits of brainstorming? How would one run an effective brainstorming session?Answer: If done correctly, group brainstorming sessions...

What is a spiral development process?

What is a spiral development process?Answer: A spiral development process recognizes the value of returning to an earlier stage to make improvements...

Interno Computers Inc., together with subsidiaries, designs, manufactures, and markets personal computers and mobile communication and media devices, as well as sells related software, services, peripherals, networking solutions, and applications worldwide. The company is planning to launch a high-end portable digital music player worldwide. What is the best way to organize this product launch?

Interno Computers Inc., together with subsidiaries, designs, manufactures, and markets personal computers and mobile communication and media devices,...

Dormentor Inc. produces, converts, and markets packaging products including boxboard, container board, and numerous other specialty packaging products. In an attempt to increase its organic growth, the company decides to introduce new products. It asks the managers and employees to send in ideas for new products. Before launching products based on any of these ideas, what are the stages that the company has to go through?

Dormentor Inc. produces, converts, and markets packaging products including boxboard, container board, and numerous other specialty packaging products....

Explain how stage-gate systems are used by companies to manage innovation and new product launches.

Explain how stage-gate systems are used by companies to manage innovation and new product launches.Answer: Many top companies use the stage-gate...

How do companies organize new product development?

How do companies organize new product development?Answer: Companies handle the organizational aspect of new-product development in several ways....

Angell Healthcare, the world's largest manufacturer of protective gloves and clothing, adopted a spiral development process, which divided the innovation process into stages with checkpoints at the end of each stage, to develop products that increased overall sales from 4.6 percent to 13 percent in a little over two years.

Angell Healthcare, the world's largest manufacturer of protective gloves and clothing, adopted a spiral development process, which divided the innovation...

A spiral development process recognizes the value of returning to an earlier stage to make improvements before moving forward.

A spiral development process recognizes the value of returning to an earlier stage to make improvements before moving forward.Answer: T...

A business analysis is performed mainly to identify if a company has got a technically and commercially sound product.

A business analysis is performed mainly to identify if a company has got a technically and commercially sound product.Answer: FA...

Venture teams are cross-functional groups charged with developing a specific product or business.

Venture teams are cross-functional groups charged with developing a specific product or business.Answer: T...

Skunkworks are formal workplaces where intrapreneurial teams attempt to develop new products.

Skunkworks are formal workplaces where intrapreneurial teams attempt to develop new products.Answer: FA...

Almost all companies use the conventional percentage-of-sales figure while budgeting for new product development.

Almost all companies use the conventional percentage-of-sales figure while budgeting for new product development.Answer: FA...

Companies should use normal investment criteria to budget for new-product developments.

Companies should use normal investment criteria to budget for new-product developments.Answer: FA...

A ________ process recognizes the value of returning to an earlier stage to make improvements before moving forward.

A ________ process recognizes the value of returning to an earlier stage to make improvements before moving forward.A) spiral developmentB) reactive developmentC)...

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they...

Which of the following questions is answered during the business analysis of ideas?

Which of the following questions is answered during the business analysis of ideas?A) Will this product meet our profit goals?B) Have we got a technically...

_______ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products.

_______ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products.A) Stage-gate systemsB) SkunkworksC) FunnelsD)...

A ________ divides the innovation process into stages with a checkpoint at the end of each stage.

A ________ divides the innovation process into stages with a checkpoint at the end of each stage.A) reverse assumption analysis techniqueB) skunkworks...

A team formed at Intercom Inc. to generate ideas for new products conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.

A team formed at Intercom Inc. to generate ideas for new products conducts frequent meetings and engages in activities such as mind mapping and brainstorming....

Intercom Inc., together with its subsidiaries, primarily engages in the generation, transmission, and distribution of electric power in the United States. The company observes that its growth has stagnated over a period of two years. In an attempt to promote growth, it considers adding new features to the existing products and introducing a few new products. The company forms a committee consisting of three top executives, one of the production mangers, a few operational managers, and a representative of the HR department to generate ideas. This team is called a(n) ________ team.

Intercom Inc., together with its subsidiaries, primarily engages in the generation, transmission, and distribution of electric power in the United States....

______ teams are cross-functional groups charged with developing a specific product or business.

______ teams are cross-functional groups charged with developing a specific product or business.A) VirtualB) VentureC) FundamentalD) ElementalE) Tran...

Identify a shortcoming of giving the responsibility to develop new products to the product managers of a company.

Identify a shortcoming of giving the responsibility to develop new products to the product managers of a company.A) They would not be familiar with the...

Tosho Electronics, a leading Japanese, electronic manufacturer believes shorter product life cycles of new products reduce the scope for R&D and innovation. Offer a possible reason for shorter life cycles.

Tosho Electronics, a leading Japanese, electronic manufacturer believes shorter product life cycles of new products reduce the scope for R&D and innovation....

What practices guide innovation at W. L. Gore?

What practices guide innovation at W. L. Gore?Answer: First, it works with potential customers. Second, Gore has a distinctly egalitarian culture;...

Shorter product life cycles are common in industries characterized by low level of competition.

Shorter product life cycles are common in industries characterized by low level of competition.Answer: FA...

Identify the major reasons why new product failures occur. The following are some of the possible reasons for the failure of new products:

Identify the major reasons why new product failures occur. The following are some of the possible reasons for the failure of new products:• shortage of...

Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.

Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.Answer: T...

Most established companies focus on incremental innovation rather than radical innovation.

Most established companies focus on incremental innovation rather than radical innovation.reta priceT...

High-tech firms that function in a market with high technological uncertainty, high market uncertainty, and high investment costs are not likely to seek radical innovation.

High-tech firms that function in a market with high technological uncertainty, high market uncertainty, and high investment costs are not likely to seek...

Companies typically must create a strong R&D and marketing partnership to pull off a radical innovation.

Companies typically must create a strong R&D and marketing partnership to pull off a radical innovation.Answer: T...

Organic growth refers to increasing the profitability of the organization by increasing employee productivity.

Organic growth refers to increasing the profitability of the organization by increasing employee productivity.Answer: FA...

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype...

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product was a failure. Which of the following is the most likely reason for the product's failure in this case?

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century....

Which of the following strategies for new-product development incorporates buyers' preferences in the final design of the product?

Which of the following strategies for new-product development incorporates buyers' preferences in the final design of the product?A) quality function...

It has been observed that most new products have shorter product life cycles. What is the reason for this?

It has been observed that most new products have shorter product life cycles. What is the reason for this?A) Most new products do not use technology.B)...

What is incremental innovation? Give an example of incremental innovation.

What is incremental innovation? Give an example of incremental innovation.Answer: Student answers will vary. Incremental innovation refers to entering...

I-ball, a cell phone manufacturer introduces a cell phone targeted at customers ages 70 and above. It has features such as loud volume, large keys, and so forth. How do you classify this product innovation? What could be a possible disadvantage of this product?

I-ball, a cell phone manufacturer introduces a cell phone targeted at customers ages 70 and above. It has features such as loud volume, large keys, and...

What does the term organic growth mean?

What does the term organic growth mean?Answer: Organic growth refers to the development of new products from with...

What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the necessary conditions to create a radically innovative product?

What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the...

Jill, a Product Manager for Nike, is responsible for evaluating the viability of a radically new product. How should she estimate demand?

Jill, a Product Manager for Nike, is responsible for evaluating the viability of a radically new product. How should she estimate demand?Answer: Few...

Fewer than 10 percent of all new products are truly innovative and new to the world.

Fewer than 10 percent of all new products are truly innovative and new to the world.Answer: T...

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it uses ________.

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates...

Most established companies focus on ________ innovation when they aim to enter new markets by tweaking existing products, or they want to stay one step ahead in the market by using variations on a core product.

Most established companies focus on ________ innovation when they aim to enter new markets by tweaking existing products, or they want to stay one step...

Which of the following is the best example of a new-to-the-world product?

Which of the following is the best example of a new-to-the-world product?A) Walmart, the retail giant, opens new stores in an underdeveloped African country.B)...

Most new-product activities are devoted to ________.

Most new-product activities are devoted to ________.A) changing the target marketsB) developing new-to-the-world productsC) introducing backward integrationD)...

Which of the following firms is most likely to seek radical innovation?

Which of the following firms is most likely to seek radical innovation?A) a traditional publishing companyB) a small scale FMCG companyC) a firm that...

New-to-the-world products are ________.

New-to-the-world products are ________.A) low-cost products designed to obtain an edge in highly competitive marketsB) new product enhancements that supplement...

Which of the following is most closely related with the organic growth of an organization?

Which of the following is most closely related with the organic growth of an organization?A) acquiring a product or service brandB) entering new marketplacesC)...

What skills and competencies will marketers need to succeed in the future?

What skills and competencies will marketers need to succeed in the future?Answer: Marketing must become more holistic and less departmental. Marketers...

List some of the marketing trends that are likely to emerge in the near future.

List some of the marketing trends that are likely to emerge in the near future.The coming years will see:• The demise of the marketing department and...

In the future, marketers should use the Internet more, improve the sales automation system, apply market automation to routine decisions, and develop formal marketing decision models and marketing dashboards.

In the future, marketers should use the Internet more, improve the sales automation system, apply market automation to routine decisions, and develop...

If a company has too many products and many are losing money; the company is giving away too many services; and the company is poor at cross-selling products and services, it is a sign that the company's brand-building and communication skills are weak.

If a company has too many products and many are losing money; the company is giving away too many services; and the company is poor at cross-selling products...

The coming years will see the rise of the marketing department and the demise of holistic marketing.

The coming years will see the rise of the marketing department and the demise of holistic marketing.Answer: FA...

Which of the following is NOT a predicted direction for marketing in the coming years?

Which of the following is NOT a predicted direction for marketing in the coming years?A) the demise of precision marketing and rise of mass marketingB)...

Full costing allocates nontraceable common costs to marketing entities and has three major weaknesses. What are they?

Full costing allocates nontraceable common costs to marketing entities and has three major weaknesses. What are they?Full costing has three major weaknesses:1....

What is the full-cost approach of evaluating a marketing entity's performance?

What is the full-cost approach of evaluating a marketing entity's performance?When evaluating a marketing entity's performance, the major controversy...

What are direct, traceable common, and nontraceable common costs? Give an example of each.

What are direct, traceable common, and nontraceable common costs? Give an example of each.Direct costs are costs that we can assign directly to the proper...

What are the steps involved in marketing profitability analysis?

What are the steps involved in marketing profitability analysis?The steps involved in marketing profitability analysis are as follows:Step 1: Identifying...

Define sale-variance analysis and microsales analysis.

Define sale-variance analysis and microsales analysis.Answer: Sales-variance analysis measures the relative contribution of different factors to...

How can a firm periodically reassess its strategic approach to the marketplace?

How can a firm periodically reassess its strategic approach to the marketplace?Answer: Each company should periodically reassess its strategic approach...

What is the purpose of profitability control?

What is the purpose of profitability control?Answer: The purpose of profitability control is to examine where the company is making and losing money....

What is marketing control? List the four types of marketing control.

What is marketing control? List the four types of marketing control.Answer: Marketing control is the process by which firms assess the effects of...

What is a marketing audit? Explain the four characteristics of a marketing audit.

What is a marketing audit? Explain the four characteristics of a marketing audit.A marketing audit is a comprehensive, systematic, independent, and periodic...

Briefly explain the concept of annual-plan control.

Briefly explain the concept of annual-plan control.Annual-plan control ensures the company achieves the sales, profits, and other goals established in...

Operating management is most effective in controlling direct costs and traceable common costs.

Operating management is most effective in controlling direct costs and traceable common costs.Answer: T...

The first step in conducting a marketing profitability analysis involves assigning functional expenses to marketing entities.

The first step in conducting a marketing profitability analysis involves assigning functional expenses to marketing entities.Answer: FA...

In the context of overall market share, customer loyalty refers to the percentage of all customers who buy from the company.

In the context of overall market share, customer loyalty refers to the percentage of all customers who buy from the company.Answer: FA...

In the future, there will be greater emphasis on precision marketing as opposed to mass marketing.

In the future, there will be greater emphasis on precision marketing as opposed to mass marketing.Answer: T...

To succeed in the future, marketing must be more holistic and less departmental.

To succeed in the future, marketing must be more holistic and less departmental.Answer: T...

A marketing audit only benefits a company that is in trouble; companies in good health do not need to conduct them.

A marketing audit only benefits a company that is in trouble; companies in good health do not need to conduct them.Answer: FA...

Self-audits tend to provide more objective information than audits conducted by external consultants.

Self-audits tend to provide more objective information than audits conducted by external consultants.Answer: FA...

A marketing audit is an orderly examination of the organization's macro- and micromarketing environments, marketing objectives and strategies, marketing systems, and specific activities.

A marketing audit is an orderly examination of the organization's macro- and micromarketing environments, marketing objectives and strategies, marketing...

The ratio of promoters to detractors is a customer metric that is used to evaluate the performance of marketing plans.

The ratio of promoters to detractors is a customer metric that is used to evaluate the performance of marketing plans.Answer: T...

Repurchase rate is a sales metric that is used to evaluate the performance of marketing plans.

Repurchase rate is a sales metric that is used to evaluate the performance of marketing plans.Answer: FA...

The annual plan control process begins with measuring performance.

The annual plan control process begins with measuring performance.Answer: FA...

Annual-plan control involves the use of financial analysis to evaluate the performance of marketing plans.

Annual-plan control involves the use of financial analysis to evaluate the performance of marketing plans.Answer: T...

Profitability control is the prime responsibility of line and staff management.

Profitability control is the prime responsibility of line and staff management.Answer: FA...

Desktop marketing gives marketers information and decision structures on computer dashboards.

Desktop marketing gives marketers information and decision structures on computer dashboards.Answer: T...

The manufacturer launches a brand building advertising campaign. The campaign does not promote any one specific car but is aimed at promoting the company as a whole. Which type of cost does this fall under?

The manufacturer launches a brand building advertising campaign. The campaign does not promote any one specific car but is aimed at promoting the company...

The cost of operating the common manufacturing facility is a(n) ________ cost.

The cost of operating the common manufacturing facility is a(n) ________ cost.A) opportunityB) traceableC) nontraceableD) sunkE) differentialAnswer:&...

Suppose the manufacturer pays a commission on every car sold. Then, the salesperson's commission is classified as a(n) ________.

Suppose the manufacturer pays a commission on every car sold. Then, the salesperson's commission is classified as a(n) ________.A) cost of laborB) traceable...

The cost of land where a plant that manufactures common parts is set up falls under ________ costs.

The cost of land where a plant that manufactures common parts is set up falls under ________ costs.A) traceable commonB) nontraceable commonC) variableD)...

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ________.

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ________.A) stock turnoverB)...

A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor.

A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company...

Which of the following is true about market share?

Which of the following is true about market share?A) Outside forces affect all companies in the same way.B) A company's performance should be judged against...

If Ming was interested in capturing distribution metrics for her retail organization, which of the following might she consider?

If Ming was interested in capturing distribution metrics for her retail organization, which of the following might she consider?A) customer complaintsB)...

________ is market share in comparison to the largest competitor.

________ is market share in comparison to the largest competitor.A) Relative market shareB) Served market shareC) Overall market shareD) Market valueE)...

_______ analysis looks at specific products, territories, and so forth that failed to produce expected sales.

_______ analysis looks at specific products, territories, and so forth that failed to produce expected sales.A) MicrosalesB) Sales varianceC) Expense-to-salesD)...

Which of the four characteristics of a marketing audit is described by the fact that outside consultants can bring necessary objectivity to the process?

Which of the four characteristics of a marketing audit is described by the fact that outside consultants can bring necessary objectivity to the process?A)...

Which of the following is a best practice in business and marketing?

Which of the following is a best practice in business and marketing?A) end-product orientationB) reacting to competitorsC) vertical integrationD) stockholder...

Which of the following is likely to be an important trend in marketing in the future?

Which of the following is likely to be an important trend in marketing in the future?A) marketing intuitionB) free-spending marketingC) manual marketingD)...

To succeed in the future, marketing must ________.

To succeed in the future, marketing must ________.A) become more holisticB) build brands through promotion rather than performanceC) be more departmentalD)...

Which of the following is true regarding a marketing audit?

Which of the following is true regarding a marketing audit?A) It focuses primarily on a firm's macromarketing environment.B) It identifies the most-needed...

A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.

A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives,...

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following should you track to ensure that the firm's distribution efficiency is maximized?

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following...

Which of the following is an example of a distribution metric used for measuring the performance of marketing plans?

Which of the following is an example of a distribution metric used for measuring the performance of marketing plans?A) effective reachB) customer acquisition...

Which of the following is true regarding annual-plan control?

Which of the following is true regarding annual-plan control?A) This control process begins by identifying the causes of serious performance deviations.B)...

Marketing effectiveness rating instruments and marketing audits are approaches to ________ control.

Marketing effectiveness rating instruments and marketing audits are approaches to ________ control.A) annual-planB) profitabilityC) efficiencyD) strategicE)...

The purpose of strategic control is to ________.

The purpose of strategic control is to ________.A) examine whether the planned results are being achievedB) examine where the company is making and losing...

The ________ is primarily responsible for strategic control.

The ________ is primarily responsible for strategic control.A) line and staff managementB) marketing auditorC) marketing controllerD) middle managementE)...

The purpose of profitability control is to ________.

The purpose of profitability control is to ________.A) examine whether the planned results are being achievedB) examine where the company is making and...

Who is primarily responsible for efficiency control?

Who is primarily responsible for efficiency control?A) BAMTB) marketing auditorC) middle managementD) line and staff managementE) top managementAnswe...

Top and middle management are primarily responsible for ________ control.

Top and middle management are primarily responsible for ________ control.A) annual-planB) efficiencyC) profitabilityD) technologicalE) innovationAnsw...

IBM lets frontline employees spend up to $5,000 to solve a customer problem on the spot, which is an example of which of the following steps that a marketing CEO can take to create a market- and customer-focused company?

IBM lets frontline employees spend up to $5,000 to solve a customer problem on the spot, which is an example of which of the following steps that a marketing...

As long as finance focuses on short-term profit, it will oppose major investments designed to build satisfied, loyal customers. Which of the following steps that a marketing CEO can take to create a market- and customer-focused company can help a CEO overcome this challenge?

As long as finance focuses on short-term profit, it will oppose major investments designed to build satisfied, loyal customers. Which of the following...

________ is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments.

________ is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments.A) Marketing...

_______ software provides a set of Web-based applications that automate and integrate project management, campaign management, budget management, asset management, brand management, customer relationship management, and knowledge management.

_______ software provides a set of Web-based applications that automate and integrate project management, campaign management, budget management, asset...