The third sequel to a popular action movie has just been launched. Since it is a sequel, it is not considered a new product. It would simply be a line extension.
True
Line extensions, such as a movie sequel, are considered to be a type of new product.
When a manufacturer of golf clothes for men added a line of golf clothes for women, it was an example of a new product.
True
If a firm adopts the marketing concept, then during the idea generation stage of the new product development process, the logical starting place should be the customers of the firm.
True
A Swiss podiatrist listened to his female patients complain about foot and leg pain related to wearing high-heeled shoes. As a result, he and an industrial designer developed the MBT line of footwear, which feature a convex sole that allows the wearer to rock back and forth stretching muscles in the calves and feet. The doctor's discussions with his patients were an example of idea screening.
False
The discussions with parents were the idea generation stage of new-product development. Customers are the springboards for many new product ideas.
The employees at Genco are all in a room together, shouting out potential ideas. The ideas are written down and evaluated as they are generated, with everyone voting on which ideas to accept or discard. This is an example of brainstorming.
False
Brainstorming does not involve evaluation of the ideas as they are generated; criticism of any kind is avoided.
Simultaneous product development lengthens the amount of time to develop and launch a new product.
False
Simultaneous product development is meant to shorten the time to develop a product.
Line extensions of well-established brands are often not test-marketed because of the high cost of test markets.
True
The manufacturer of Kiwi shoe polish has developed the Kiwi Express Shine Sponge for quick touch-ups. The company has already gone through several stages of the new product development process, including screening, development, and testing. Assuming the results are consistent with profit and cost expectations, the most likely next step is commercialization.
True
A common reason that new products fail is that the new product has no discernible benefit when compared to existing products.
True
The most important factor in successful new-product introduction is profitability.
False
The most important factor in successful new-product introduction is a good match between the product and market needs.
U.S.-based multinational corporations usually create new products for each country where they operate because local customs and regulations are different.
False
U.S.-based corporations usually use a global strategy for the introduction of their new products - that is, they keep the same as much as possible.
The process by which the adoption of an innovation spreads is called the adoption process.
False
This is known as the diffusion process.
Early adopters of a new product are generally opinion leaders who often influence the adoption by the early and late majority.
True
A Swiss podiatrist listened to his female patients complain about foot and leg pain caused by wearing high-heeled shoes. As a result, he and an industrial designer developed the MBT line of footwear, which features thick convex soles to help relax muscles in the legs and feet. The product's developers would hope for a quick diffusion of the product.
True
Martin is a technology geek and always among the very first to buy the latest gadget. Martin is an example of an early adopter.
False
Martin would be considered an innovator since he is among the first to see and own the latest technology.
The Sumatra Coffee Company has two new products. One is a simple hand-cranked coffee grinder. The other is a combination grinder and brewer that also can be used to dispense hot milk. Of these two, the hand-cranked grinder will probably be diffused more quickly because it is less complex.
True
A new line of Prada shoes will likely diffuse faster than a new hemorrhoid ointment primarily due to compatibility.
False
The reason the shoes will diffuse faster than the ointment is due to observability, the degree to which the benefits or other results of using the product can be observed by others and communicated to target customers.
Viking is about to introduce a new type of gas cooking range that includes an integrated grill, multiple warming drawers, and scratch-resistant and unbreakable surfaces. As with other products of this type, Viking can expect sales of this new type of range to follow a bell-shaped curve over the next ten to fifteen years as it follows the product life cycle.
False
Sales of any product do not follow precise bellshaped curves over a set period of time. The length of time a product spends in any one stage of the product life cycle may vary dramatically.
The greatest growth for a new product occurs during the introductory stage of the product life cycle.
False
Pampers introduced a special diaper called "Pampers Swimmers" that babies can wear when they swim. Are Swimmers considered to be a new product?
A. Yes, additions to the product line are new products.
; An addition to the existing product line is considered a new product by marketers.
The artificial sweetener NutraSweet (aspartame), when first introduced, was a new-to-the-world product--a method of sweetening products with few calories and no bad aftertaste. This type of new product would be classified a:
a. diffusion.
b. discontinuous innovation.
c. moderate innovation.
d. venture product.
e. specialty product.
b. discontinuous innovation.
;New-to-the-world products, where the product category itself is new, are also called discontinuous innovations.
For years, the Munsing brand of clothing has targeted 40-something male consumers. Today, through its implementation of a ________ strategy, it targets both the fashion-conscious male and female consumers in their 20s under a new line called Original Penguin.
a. discontinuous innovation
b. niche
c. new-product-field
d. retargeting
e. repositioning
e. repositioning
;One way to create innovative products is to target new markets through repositioning.
A company that manufactures natural products to aid people in relaxing has created Soothing Soaks, a waterproof, soap-dish-size book, that explains how to make the most of a relaxing bath. In terms of the categories of new products, Soothing Soaks would be an example of a(n):
a. improvement on an existing product.
b. discontinuous innovation.
c. repositioned product.
d. value-addition.
e. addition to an existing line.
e. addition to an existing line.
;The company manufactures relaxation products. The book is simply another tool within its relaxation product line.
According to Hallmark's research, 75 percent of pet owners give Christmas presents to their pets, and 40 percent celebrate their pets' birthdays. When Hallmark announced the addition of 117 new greeting cards for pets, it was a(n):
a. repositioning strategy.
b. new product line.
c. addition to an existing product line.
d. discontinuous innovation.
e. revision to existing products.
c. addition to an existing product line.
Arm and Hammer broke a 150-year tradition with its baking soda packaging when it introduced a new plastic shaker. In terms of innovation, this would be classified as a(n):
a. repositioning strategy.
b. new product line.
c. addition to an existing product line.
d. discontinuous innovation.
e. revision to existing products
e. revision to existing products.
This example is similar to the Heinz EZ Squirt Ketchup bottle described in the text.
Veronica is the new product manager at a packaged foods company. She would like to put together a brainstorming team to generate ideas about new food products. She should consider inviting people from all of the following areas EXCEPT:
a. account executives from her advertising agency.
b. a couple of big customers.
c. lawyers from the company's law firm.
d. a couple of large distributors.
e. sales people who have access to competitive intelligence.
c.
lawyers from the company's law firm.
;The least likely invitee would be the lawyers, who may not understand the market as well as all the other team members
A buyer for a large department store chain came into a meeting and announced, "Purple is the new pink. Purple has a universal feminine appeal and is ideal for women who want to exhibit subtle sexiness in their lives. How do we add purple to our fall collections?" With this statement, the buyer is suggesting the group at the meeting engage in:
a. idea generation.
b. test marketing.
c. commercialization.
d. idea screening.
e. prototype developing.
a. idea generation.
The first step in the process is the development of a new products strategy that will set the stage for the other steps (even idea generation).
The same manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new product ideas, such as jewelry, wide shoes, and belts. The manufacturer used a research technique called a:
a. focus group.
b. brainstorming panel.
c. buying center.
d. product-review committee.
e. venture team.
a. focus group.
Scientists at a southeastern university have learned that sunlight heats the soil to different temperatures when the light is passed through different colors of material. Furthermore, different crops grow better when their soil is maintained at different temperatures. These scientists have engaged in:
a. applied research.
b. idea screening.
c. commercialization.
d. brainstorming.
e. basic research.
e. basic research.
This is basic research because the scientists have discovered a new way to influence growth. It is not applied research because they have not tried to discover how farmers and gardeners can make use of this research.
Demeter is a fragrance company that is known for manufacturing unique perfumes that smell like popcorn, strawberries, smoke, and baby powder--any smells that people can use to relate to some positive event in their lives. The company has decided to develop a perfume that smells like Play-Doh. Before any prototype had been created, researchers presented the perfume idea to groups of consumers for evaluation. This stage of new product development is called:
a. screening.
b. market testing.
c. concept testing.
d. simulated market testing.
e. use testing.
c. concept testing.
As Shire Pharmaceuticals continued the development of its new product idea, a patch for ADHD kids, a group was assigned the task of estimating preliminary demand for the product, costs, sales, and future profitability. This is the ________ stage in product development.
a. test marketing
b. idea generation
c. concept testing
d. screening
e. business analysis
e. business analysis
;Concept testing allows consumers to express opinions about a product before a prototype is developed.
A Swiss podiatrist listened to his female patients complain about the painful effects of wearing high-heeled shoes. As a result, he and an industrial designer developed MBT, a walking shoe with a convex sole that allows the wearer to rock back and forth, stretching the muscles in the calves and feet. To ________ the new shoes, the product's developers decided to only distributed MBT footwear at retail stores in New York City and Beverly Hills to gauge how consumers responded to the product.
a. commercialize
b. test market
c. laboratory test
d. conduct follow-up use tests
e. create dual distribution strategies
b. test market
;Test marketing is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Grandma's Treats tested consumers' reactions to a new dessert by getting consumers to look through a newspaper with grocery store ads, make out a grocery list, and then "shop" in a mock store filled with real products, including the new dessert. This is a:
a. real test market.
b. simulated (laboratory) market test.
c. concept test.
d. use test.
e. cable/scanner test.
b. simulated (laboratory) market test.
;Simulated (laboratory) market tests usually entail showing members of the target market advertising for a variety of products; then purchase behavior, in a mock or real store, is monitored.
In the long run, products fail because of a poor match between:
a. advertising and personal selling.
b. limited resources and unlimited consumer wants.
c. the marketing mix and physical distribution.
d. prices and consumer demand.
e. product characteristics and consumer needs.
e. product characteristics and consumer needs.
;The most important factor in successful new-product introduction is a good match between product and market needs.
Companies that have had great success in launching new products more than likely have all of the following characteristics EXCEPT:
a. a commitment to new-product development.
b. a history of listening to customers.
c. a production orientation.
d. a project-based team approach to new-product development.
e. strong leadership.
c. a production orientation
In the "think global, act local" strategy, companies would:
a. give country managers autonomy in new-product development.
b. develop the product at home and allow country managers to run promotions.
c. develop the product and the entire marketing mix at home and dictate strategies to subsidiaries.
d. hire a global advertising agency to create a worldwide message.
e. launch the products on a worldwide basis all at once.
b. develop the product at home and allow country managers to run promotions.
; In "think global, act local," the company's subsidiaries have full control of the business.
When Gina complained that there were not enough hours in the day to accomplish everything she needed to do, Becca told her about a company called 25th Hour that provides personal assistants to run errands for a charge of $17 per hour. The personal assistants will do everything from clean house to stand in line to buy tickets to pay a parking fine--whatever can help the customer. Since Gina did not know such a service existed, this product to her is a(n):
a. test market.
b. diffusion.
c. laggard.
d. innovation.
e. generic product.
d.
innovation
A company that manufactures natural products to aid people in relaxing has created Soothing Soaks, a waterproof, soap-dish-size book, which explains how to make the most of a relaxing bath. Which product characteristic would be most likely to influence its adoption rate?
a. homogeneity
b. observability
c. relative advantage
d. compatibility
e. tangibility
d. compatibility
;Homogeneity is a characteristic of services and are not typically considered as influential to product adoption.
Post and Kellogg's both manufacture breakfast cereals. Both products have been in the market for nearly 100 years and spend much of their marketing budgets on short-term promotions to steal market share from each other. Post and Kellogg's are in which stage of the product life cycle?
a. maturity stage
b. decline stage
c. promotional stage
d. growth stage
e. late majority stage
a. maturity stage
;The maturity stage is characterized by market saturation and heavy promotion to battle the fierce competition.
B.F. Goodrich has been manufacturing and marketing automotive tires for over one hundred years. It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear, Dunlap, and other tire manufacturers. From this information, you should know tires are in the ________ stage of their product life cycle.
a. maturity
b. growth
c. saturation
d. decline
e. development
a.
maturity
The market for athletic shoes is reaching saturation. Product lines are being extended as marketers add new colors, lace styles, and shock absorbers to their existing product designs. Marginal competitors have abandoned the market. Niche marketers have appeared like the MBT brand of footwear with the convex sole and priced at $350 per pair. From this information you know that as a product category, athletic shoes are in the ________ stage of the product life cycle.
a. introduction
b. growth
c. maturity
d. repositioning
e. sales-oriented
c.
maturity
At what stage in the product life cycle are product line extensions generally launched?
a. maturity stage
b. decline stage
c. downfall stage
d. decay stage
e. laggard stage
a. maturity stage
Sales usually peak during the maturity stage, so line extensions are often used to "breathe life" into the brand before it's too late.
