For which type of products are concept tests thought to be less effective in predicting the success of a product?

a. Products that are line extensions (same product category and brand)

b. Products that are not easily classified into existing product categories

c. Products that create new consumption patterns

d. Products that do not require major changes in consumer behavior

Answer: c. Products that create new consumption patterns

The objective of brainstorming is to ______.

a. generate a large quantity of ideas through a process of rigorous objective evaluation

b. generate a small set of distilled ideas through a process of rigorous objective evaluation

c. postpone objective evaluation and focus on the sheer quantity of ideas generated

d. postpone objective evaluation but eliminate ideas that do gain unanimous acceptance

Answer: c. postpone objective evaluation and focus on the sheer quantity of ideas generated

A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products is called ______.

a. product development

b. niche marketing

c. idea screening

d. commercialization

Answer: a. product development

A source suggested to Rubbermaid the idea of the Sidekick, a litter-free lunch box. Rubbermaid could place some of its plastic containers inside a lunch box and sell the box as an alternative to plastic wrap and paper bags. The source saw this opportunity because of being closer to the consumers than the manufacturer was and, thus, more aware of customer needs. Which of the following was likely the source?

a. The product's distributor

b. The product's competitor

c. Customers

d. A company employee

Answer: a. The product's distributor

What do programs like Google X do to promote innovative thinking among its employees?

a. They eliminate the fear of coming up with bad ideas by rewarding failure.

b. They eliminate the possibility of investment in bad ideas by rewarding only successes.

c. They promote the fear of coming up with bad ideas by punishing failure.

d. They promote investment in bad ideas to explore the possibilities learned from them

Answer: a. They eliminate the fear of coming up with bad ideas by rewarding failure.

Which of the following statements describes a customer innovation center?

a. It is an approach to repositioning a company's products using sales figures.

b. It promotes advertising among status-conscious customers.

c. It is a forum for meeting with customers and directly involving them in the innovation process.

d. It is used in the business analysis stage of the new-product development process

Answer: c. It is a forum for meeting with customers and directly involving them in the innovation process.

When developing new product, which is true of a new-product development strategy?

a. It refrains from adopting ideas suggested by customers and competitors.

b. It doesn't provide the general guidelines for new-product ideas.

c. It must be compatible with the objectives of the marketing department, the business unit, and the corporation.

d. It involves targeting existing products at new markets.

Answer: c. It must be compatible with the objectives of the marketing department, the business unit, and the corporation.

A company well-known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market. The company changed its campaign to focus on dietary needs rather than just convenience, thus targeting a segment of consumers looking for healthy diet. This is an example of a ______.

a. new line-extension product

b. discontinuous innovation

c. repositioned product

d. new and improved product

Answer: c. repositioned product

A furniture manufacturer with a reputation for making plain, lightweight foldable steel chairs decides to make cushioned chairs with printed upholstery. The new type of chair will be a ______.

a. product line extension

b. discontinuous innovation

c. repositioned product

d. new and improved product

Answer: a. product line extension

Samsung is best known for its smartphones, tablets, and televisions. Years ago when it decided to expand its business activities and operations into ship building and military hardware, it was gearing to offer ______.

a. discontinuous innovations

b. new product lines

c. repositioned products

d. new-to-the-world products`

Answer: b. new product lines

With ________, the researcher observes the effects or results of the behavior rather than the behavior itself.

A) indirect observation

B) disguised observation

C) undisguised research

D) direct observation

E) guided observation

Answer: A) indirect observation

How many general ways for organizing observations are there?

A) 2

B) 3

C) 4

D) 5

E) 6

Answer: C) 4

Which of the following is true of quantitative research?

A) It is sometimes referred to as "survey research."

B) It often involves a sizable representative sample of the population.

C) Data format and sources are clear and well defined.

D) Its purpose is very specific.

E) all of the above

Answer: E) all of the above

Which of the following best represents the disadvantages of conducting test markets as discussed by your authors?

A) cost, competitor intervention, and government regulations of test markets

B) fallibility of results, cost, exposure of product/service to competition and ethical issues

C) cost, delay in getting to the market first, competitive awareness of the product/service

D) inability to test marketing mix variables

E) disadvantages were not discussed in your book

Answer: B) fallibility of results, cost, exposure of product/service to competition and ethical issues

Which of the following best represents the criteria discussed by your authors to be used in selection of a test market city?

A) representativeness, isolation and cost

B) representativeness, existing company presence, control of promotion

C) representativeness, isolation and control of distribution and promotion

D) representativeness, cost and control of competitor's intelligence

E) representativeness, cost and ability to meet the federal codes regulating test markets

Answer: C) representativeness, isolation and control of distribution and promotion

Of the following, which is a potential disadvantage of using a simulated test market?

A) It is not as accurate as full scale test markets.

B) The distribution network may or may not properly represent the firm's actual distribution system.

C) It is often very time consuming and expensive.

D) They allow competitors to acquire knowledge of the test.

E) all of the above

Answer: A) It is not as accurate as full scale test markets.

Which of the following describes a simulated test market?

A) It is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels.

B) It is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

C) It includes a panel of consumers that has agreed to carry identification cards that each consumer presents when buying goods and services.

D) A limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume.

E) none of the above

Answer: D) A limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume.

Which of the following describes an electronic test market?

A) It is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels.

B) It is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

C) It includes a panel of consumers that has agreed to carry identification cards that each consumer presents when buying goods and services.

D) A limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume.

E) none of the above

Answer: C) It includes a panel of consumers that has agreed to carry identification cards that each consumer presents when buying goods and services.

Which of the following describes a controlled test market?

A) It is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels.

B) It is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

C) It includes a panel of consumers that has agreed to carry identification cards that each consumer presents when buying goods and services.

D) A limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume.

E) none of the above

Answer: B) It is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

Which of the following describes a standard test market?

A) It is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels.

B) It is conducted by outside research firms that guarantee distribution of the product through prespecified types and numbers of distributors.

C) It includes a panel of consumers that has agreed to carry identification cards that each consumer presents when buying goods and services.

D) A limited amount of data on consumer response to a new product is fed into a model containing certain assumptions regarding planned marketing programs, which generates likely product sales volume.

E) none of the above

Answer: A) It is one in which the firm tests the product or marketing-mix variables through the company's normal distribution channels.