Kotler mm14 tif20test bank for marketing management Koter PDF

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Marketing Management, 14e (Kotler/Keller) Chapter 20 Introducing New Market Offerings 1) Which of the following is most closely related with the organic growth of an organization? A) acquiring a product or service brand B) entering new market places C) increasing the operational profitability D) increasing productivity of employees E) developing new products from within Answer: E Page Ref: 569 Objective: 1 Difficulty: Easy 2) New-to-the-world products are ________. A) low-cost products designed to obtain an edge in highly competitive markets B) new product enhancements that supplement established products C) new versions of an existing product that has been less successful D) new products that create an entirely new market E) existing products that are targeted to new geographical markets Answer: D Page Ref: 570 Objective: 1 Difficulty: Easy 3) Which of the following firms is most likely to seek radical innovation? A) a traditional publishing company B) a small scale FMCG company C) a firm that procures and markets wheat D) a high-tech firm in telecommunications E) a firm that sells mineral water Answer: D Page Ref: 570 Objective: 1 Difficulty: Easy 4) Most new-product activities are devoted to ________. A) changing the target markets B) developing new-to-the-world products C) introducing backward integration D) improving existing products E) changing the existing market dynamics Answer: D Page Ref: 570 Objective: 1 Difficulty: Easy 1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

5) 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) Pestorica, a publishing company, decides to launch a new sports magazine. C) Tata Motors, an Indian automobile company, acquires Jaguar to extend its business. D) An Asian company licenses a U.S. apparel brand name though the brand is not familiar in Asia. E) Kids-Med, a company that produces childcare products, launches a non-contact thermometer. Answer: E Page Ref: 570 Objective: 1 AACSB: Analytic skills Difficulty: Moderate 6) 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. A) incremental B) continuous C) spontaneous D) radical E) competitive Answer: A Page Ref: 571 Objective: 1 Difficulty: Easy 7) 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) Most new products are not backed by a marketable idea. C) New products do not get adequate management support. D) Social and governmental constraints lead to this failure. E) Rivals quickly copy products that are successful. Answer: E Page Ref: 572 Objective: 1 Difficulty: Easy

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8) Which of the following strategies for new-product development incorporates the buyers' preferences in the final design of the product? A) customer-driven engineering B) market leadership C) cost leadership D) incremental innovation E) disruptive technology Answer: A Page Ref: 572 Objective: 1 Difficulty: Easy 9) 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 became a failure. Which of the following is the most likely reason for the product's failure in this case? A) poor launch timing of the product B) a small and fragmented target market C) high cost of development D) social and economic constraints E) hasty product development Answer: A Page Ref: 572 Objective: 1 AACSB: Analytic skills Difficulty: Moderate 10) 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 inhouse testing. What should be the next step? A) commercializing the product B) performing concept testing C) conducting beta testing with customers D) creating a marketing strategy for the product E) performing business analysis Answer: C Page Ref: 574 Objective: 1 Difficulty: Easy

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11) Identify a shortcoming of giving the responsibility of new product development to the product managers of a company. A) They would not be familiar with the industry standards. B) Product managers would not have an operational focus. C) Product managers are often busy managing existing lines. D) They will find it difficult to gain support from employees. E) Product managers are less likely to use participative management. Answer: C Page Ref: 574 Objective: 2 Difficulty: Easy 12) ________ teams are cross-functional groups charged with developing a specific product or business. A) Virtual B) Venture C) Fundamental D) Elemental E) Transitory Answer: B Page Ref: 574 Objective: 2 Difficulty: Easy 13) 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) ________. A) virtual team B) venture team C) fundamental team D) elemental team E) transitory team Answer: B Page Ref: 574 Objective: 2 AACSB: Analytic skills Difficulty: Moderate

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14) 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) skunkworks B) idea funnels C) research centers D) stage gate systems E) contextual bases Answer: A Page Ref: 574 Objective: 2 AACSB: Analytic skills Difficulty: Moderate 15) The ________ used by companies divides the innovation process into stages, with a checkpoint at the end of each stage. A) reverse assumption analysis technique B) skunkworks system C) stage-gate system D) spiral development process E) new-product department technique Answer: C Page Ref: 574 Objective: 2 Difficulty: Easy 16) ________ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products. A) Stage-gate systems B) Skunkworks C) Funnels D) Opportunity spaces E) Research centers Answer: B Page Ref: 574 Objective: 2 Difficulty: Easy

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17) 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 and commercially sound product? C) Can we find a cost-effective, affordable marketing strategy? D) Can this product meet sales expectations? E) Can we find a good concept consumers say they would try? Answer: D Page Ref: 575 Objective: 2 Difficulty: Easy 18) 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? A) idea generation B) idea screening C) business analysis D) concept development and testing E) product development and testing Answer: D Page Ref: 575 Objective: 2 Difficulty: Easy 19) ________ process recognizes the value of returning to an earlier stage to make improvements before moving forward. A) Spiral development B) Reactive development C) Market testing D) Proactive development E) Concept testing Answer: A Page Ref: 575 Objective: 2 Difficulty: Easy 20) The ________ uses observational, anthropological, and ethnographic methods or consumer self-reports to map consumer needs, wants, and even beyond. A) business analysis B) demand landscape C) opportunity space D) strategic blueprint E) internal design analysis Answer: B Page Ref: 576 Objective: 3 Difficulty: Easy 6 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

21) Which of the following uses conceptual lens and structured innovative-thinking tools to achieve market perspectives from different angles? A) business analysis B) strategic blueprint C) internal design analysis D) demand landscape E) opportunity space Answer: E Page Ref: 576 Objective: 3 Difficulty: Easy 22) Gordon Apparel, Inc. engages in the design, manufacture, and retail of fashion apparel for women, men, children, and pets. The company is known for its timely launch of apparels and stylish designer clothing. The company believes a new product has to create needs and not just satisfy the existing needs. To achieve this goal it engages in controlled idea generation techniques such as brainstorming while creating new designs. Which of the following parts of the DIG framework is given prominence here? A) business analysis B) strategic blueprint C) opportunity space D) internal design analysis E) demand landscape Answer: C Page Ref: 576 Objective: 3 AACSB: Analytic skills Difficulty: Moderate 23) Identify the element in the DIG network that considers how a new product can fit into customers lives and how it can be distinguished from the competitors' products. A) business analysis B) internal design analysis C) strategic blueprint D) demand landscape E) opportunity space Answer: C Page Ref: 576 Objective: 3 Difficulty: Easy

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24) ________ means inviting the Internet community to help create content or software, often with prize money or a moment of glory involved. A) Stage-gating B) Cocreation C) Microstocking D) Buzzing E) Crowdsourcing Answer: E Page Ref: 577 Objective: 3 Difficulty: Easy 25) Surgeons and ER nurses would be considered ________ for surgical equipment. A) venture agents B) internal customers C) buzz agents D) lead users E) connectors Answer: D Page Ref: 577 Objective: 3 Difficulty: Easy 26) Many 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 product developments decrease the chances of success. B) Customers do not consider the cost of design when suggesting. C) Customers are at times unaware of what they really want. D) It increases the cost of testing a product or service. E) Having too much customer focus leads to a negative brand image. Answer: C Page Ref: 578 Objective: 3 Difficulty: Moderate 27) 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) reverse assumption analysis B) lateral marketing C) attribute listing D) forced relationship E) morphological analysis Answer: C Page Ref: 579 Objective: 3 Difficulty: Easy 8 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

28) The ________ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium, and the power source. A) attribute listing B) reverse assumption analysis C) mind mapping D) lateral marketing E) morphological analysis Answer: E Page Ref: 579 Objective: 3 Difficulty: Easy 29) 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 ________. A) attribute listing B) mind mapping C) morphological analysis D) lateral analysis E) reverse analysis Answer: C Page Ref: 579 Objective: 3 Difficulty: Easy 30) 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 is 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. A) attribute listing B) forced relationship analysis C) morphological analysis D) reverse assumption analysis E) mind mapping Answer: A Page Ref: 579 Objective: 3 AACSB: Analytic skills Difficulty: Moderate

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31) ________ works by listing all the normal assumptions about an entity and then turning them around. A) Lateral marketing B) Attribute listing C) Reverse assumption analysis D) Forced relationships E) Morphological analysis Answer: C Page Ref: 579 Objective: 3 Difficulty: Easy 32) The ________ creativity technique begins in a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally materializes a new idea by associating all the thoughts. A) mind mapping B) contextual analysis C) attribute listing D) reverse assumption analysis E) morphological analysis Answer: A Page Ref: 580 Objective: 3 Difficulty: Easy 33) Increasingly, new-product ideas arise from ________ that combines two product concepts or ideas to create a new offering. A) reverse assumption analysis B) lateral marketing C) attribute listing D) forced relationships E) morphological analysis Answer: B Page Ref: 580 Objective: 3 Difficulty: Easy

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34) A group of college graduates decide 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 together 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) morphological analysis B) forced relationship analysis C) reverse assumption analysis D) attribute listing E) mind mapping Answer: E Page Ref: 580 Objective: 3 AACSB: Analytic skills Difficulty: Moderate 35) 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 ________. A) lateral marketing B) brand extension C) market development D) internal marketing E) brand personification Answer: A Page Ref: 580 Objective: 3 AACSB: Analytic skills Difficulty: Moderate 36) A ________ error occurs when the company dismisses a good idea. A) probability B) performance C) double counting D) DROP E) GO Answer: D Page Ref: 580 Objective: 3 Difficulty: Easy

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37) A(n) ________ is a possible product the company might offer to the market. A) test brand B) alpha product C) beta version product D) product idea E) product concept Answer: D Page Ref: 581 Objective: 4 Difficulty: Easy 38) A(n) ________ is an elaborated version of a product idea expressed in consumer terms. A) test brand B) alpha product C) beta product D) business schedule E) product concept Answer: E Page Ref: 581 Objective: 4 Difficulty: Easy 39) ________ means presenting the product concept to target consumers, symbolically of physically, and getting their reactions. A) Perceptual mapping B) Brand-positioning mapping C) Brand attribute mapping D) Concept development E) Concept testing Answer: E Page Ref: 582 Objective: 4 Difficulty: Easy 40) Modern firms use the ________ concept testing tool to design products on a computer and then produce rough models to show potential consumers for their reactions. A) morphological analysis B) rapid prototyping C) concept testing D) perceptual mapping E) conjoint analysis Answer: B Page Ref: 582 Objective: 4 Difficulty: Easy

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41) Brown & Smith, Inc. engages in the design, development, making, and retail of designer jewelry in North America. Before approving a new design of jewelry the company draws it on a computer and then produces models to show potential consumers for their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here. A) conjoint analysis B) perceptual mapping C) virtual reality testing D) rapid prototyping E) digital fabrication Answer: D Page Ref: 582 Objective: 4 AACSB: Analytic skills Difficulty: Moderate 42) 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. A) concept testing B) perceptual mapping C) gap level analysis D) conjoint analysis E) morphological analysis Answer: D Page Ref: 583 Objective: 4 Difficulty: Easy 43) With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers. A) gap level analysis B) conjoint analysis C) perceptual mapping D) concept testing E) morphological analysis Answer: B Page Ref: 583 Objective: 4 Difficulty: Easy

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44) 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 the above scenario? A) virtual reality testing B) conjoint analysis C) perceptual mapping D) product fabrication E) rapid prototyping Answer: B Page Ref: 583 Objective: 4 AACSB: Analytic skills Difficulty: Moderate 45) The trade-off approach may be easier to use when there are/is ________. A) many variables B) only a few alternatives C) observers that are biased D) possible offers that are limited E) only one highly desirable solution Answer: A Page Ref: 584 Objective: 4 Difficulty: Easy 46) ________ is a "hybrid" data collection technique that combines self-explicated importance ratings with pair-wise trade-off tasks. A) Sales wave analysis B) Simulative data testing C) Adaptive conjoint analysis D) Business analysis E) Exponential data collection Answer: C Page Ref: 584 Objective: 4 Difficulty: Easy

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47) ________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style, features, and performance. A) Frequently purchased products B) High-moving goods C) Inexpensive products D) Commodity products E) Infrequently purchased products Answer: E Page Ref: 585 Objective: 4 Difficulty: Easy 48) 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 distribution B) lifecycle ratio C) obsolescence ra...