In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.

31) In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.

A) business analysis

B) idea generation

C) concept development and testing

D) product development

E) marketing mix      

Answer:  D

Diff: 2        Page Ref: 266

Skill:  Concept

Objective:  9-2

32) In a ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

A) controlled test market

B) simulated test market

C) standard test market

D) random test market

E) single-city test market

Answer:  A

Diff: 2        Page Ref: 267

Skill:  Concept

Objective:  9-2

33) In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

A) controlled test market

B) simulated test market

C) standard test market

D) random test market

E) single-city test market

Answer:  B

Diff: 2        Page Ref: 268

AACSB:  Use of Information Technology

Skill:  Concept

Objective:  9-2

34) Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

A) test marketing

B) focus group surveys

C) commercialization

D) post-testing

E) business analysis

Answer:  A

Diff: 2        Page Ref: 267

Skill:  Concept

Objective:  9-2

35) Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?

A) Test marketing costs can be high.

B) It can take a lot of time to test market.

C) Test marketing allows time for competitors to spy and gain advantages.

D) People who are surveyed tend to tell less than the truth.

E) Test marketing does not guarantee success.

Answer:  D

Diff: 3        Page Ref: 267

Skill:  Concept

Objective:  9-2

36) Under what circumstances might it be wise for a company to do little or no test marketing?

A) when a new product requires a major investment

B) when management is not sure of the product

C) when management is not sure of the marketing program

D) when the product has no substitutes and is new in its category

E) when the costs of developing and introducing the product are low

Answer:  E

Diff: 2        Page Ref: 267

Skill:  Concept

Objective:  9-2

37) Many marketers are now using new interactive technologies, such as Frito-Lay's online virtual convenience store, to reduce the cost of ________.

A) concept development

B) concept testing

C) commercialization

D) product development

E) test marketing

Answer:  E

Diff: 2        Page Ref: 268

AACSB:  Use of Information Technology

Skill:  Concept

Objective:  9-2

38) The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

A) how to develop a market strategy

B) which market to compete in

C) whether to launch the new product

D) how to compete in the market

E) how long to compete in the market

Answer:  C

Diff: 3        Page Ref: 268

Skill:  Concept

Objective:  9-2

39) Introducing a new product into the market is called ________.

A) test marketing

B) new product development

C) experimenting

D) commercialization

E) marketing development

Answer:  D

Diff: 2        Page Ref: 268

Skill:  Concept

Objective:  9-2

40) Which of the following costs is most likely associated with the commercialization stage of new-product development?

A) building or renting a manufacturing facility

B) paying groups of target customers for product feedback

C) determining the product's planned price, distribution, and marketing budget

D) developing a prototype of the product

E) identifying target markets

Answer:  A

Diff: 2        Page Ref: 268

Skill:  Concept

Objective:  9-2

41) A company getting ready to launch a new product must make several decisions. The company must first decide on ________.

A) whether to launch the product in a single location

B) whether to launch the product in a region

C) whether to launch the product into full national distribution

D) when to time the new product introduction

E) when to develop a planned market rollout

Answer:  D

Diff: 2        Page Ref: 268

Skill:  Concept

Objective:  9-2

42) Following the decision to "time" the introduction of the new product, a company must decide ________ to launch the new product.

A) where

B) how

C) to what degree

D) why

E) all of the above

Answer:  A

Diff: 2        Page Ref: 268

Skill:  Concept

Objective:  9-2

43) Using a ________, a company launches a product in a few regional markets and then expands based on how successful the product is.

A) simulated market

B) controlled market

C) concentrated market

D) market rollout

E) market blitz

Answer:  D

Diff: 2        Page Ref: 269

Skill:  Concept

Objective:  9-2

44) Which type of new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

A) concept testing

B) new-product development

C) customer-centered new-product development

D) sequential product development

E) team-based new-product development

Answer:  C

Diff: 1        Page Ref: 269

Skill:  Concept

Objective:  9-2

45) ________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

A) Team-based product development

B) Simultaneous product development

C) Sequential product development

D) Product life-cycle analysis

E) Micromarketing

Answer:  C

Diff: 2        Page Ref: 270

Skill:  Concept

Objective:  9-2