Marketing Real People Real Choices 6th

Edition Solomon Test Bank

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Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) During the technical development phase of the new product development process, a physical 1)
version of the product is developed; it is called a ________.
A) test market
B) prototype
C) focus groups
D) product concept
E) business analysis
Answer: B
Explanation: A)
B)
C)
D)
E)

2) The ________ is the actual product such as a refrigerator plus delivery, installation, financing, and 2)
warranty.
A) value network
B) augmented product
C) generic product
D) potential product
E) actual product
Answer: B
Explanation: A)
B)
C)
D)
E)

3) A ________ is typically a nondurable good or service that consumers purchase frequently with a 3)
minimum of comparison and effort.
A) homogeneous product
B) convenience product
C) shopping product
D) generic product
E) specialty product
Answer: B
Explanation: A)
B)
C)
D)
E)

1
4) Ore-Ida's development of Funky Fries, microwaveable, single servings of Kool-Blue, seasoned 4)
potatoes is an example of a ________ because consumers did not have to learn anything new to
prepare and serve the potatoes.
A) continuous innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) nonradical innovation
E) competitive innovation
Answer: A
Explanation: A)
B)
C)
D)
E)

5) Experts suggest that between ________ of all new products fail. 5)

A) one-third and one-half
B) one-half and two-thirds
C) one-third and two-thirds
D) one-tenth and one-fifth
E) one-fifth and one-half
Answer: A
Explanation: A)
B)
C)
D)
E)

6) ________ are manufactured goods or subassemblies of finished items that organizations need to 6)
complete their own products.
A) Component parts
B) Raw materials
C) Processed materials
D) Accessory equipment
E) MRO products
Answer: A
Explanation: A)
B)
C)
D)
E)

2
7) Marketers deliberately create ________, new products copies with slight modifications, of clothing, 7)
jewelry, or other items often with the intent to sell to a larger or different market.
A) specialty services
B) component parts
C) raw materials
D) knockoffs
E) unsought products
Answer: D
Explanation: A)
B)
C)
D)
E)

8) Traffic in major metropolitan areas is too often brought to a standstill after an accident when the 8)
wreckage has to be cleared away because investigators must painstakingly measure skid marks
and determine culpability. During the ________ stage of the adoption process, a municipality
government would decide to buy Quick Mapping 3D, a product that shortens this investigation
time by 40 percent.
A) evaluation
B) interest
C) awareness
D) confirmation
E) adoption
Answer: E
Explanation: A)
B)
C)
D)
E)

9) Even though most people in the original target market for electric toothbrushes already knew how 9)
to brush their teeth, consumers still had some learning to do in order to make good use of the new
brushing technique. The electric toothbrush is an example of a ________.
A) nonradical innovation
B) continuous innovation
C) dynamically continuous innovation
D) competitive innovation
E) discontinuous innovation
Answer: C
Explanation: A)
B)
C)
D)
E)

3
10) Which of the following is the best example of a nondurable good? 10)
A) ream of paper
B) file cabinet
C) dishwasher
D) freezer
E) book shelf
Answer: A
Explanation: A)
B)
C)
D)
E)

11) The built-in, fold-down child seats such as those found in Chrysler minivans were an example of a 11)
________ because they required consumers to learn how to properly use the seat as well as the
advantages of the seat.
A) continuous innovation
B) nonradical innovation
C) discontinuous innovation
D) competitive innovation
E) dynamically continuous innovation
Answer: E
Explanation: A)
B)
C)
D)
E)

12) A knockoff is a ________. 12)

A) new product that is so radically different from anything on the market that it has difficulty
moving out of the introduction stage of its product life cycle
B) new product that copies, with slight modifications, the design of an original product
C) company that uses it's advertising to show how superior it is to its competitors
D) product that is unbranded
E) company that uses a me-too strategy for its promotion
Answer: B
Explanation: A)
B)
C)
D)
E)

4
13) A website is full of games, activities, music, and stories that appeal to children of all ages. Before a 13)
parent commits to paying the annual membership fee to gain access to the site, s/he can register for
one free month of use. By accepting the free month's usage, potential adopters move into the
________ stage.
A) evaluation
B) confirmation
C) awareness
D) trial
E) interest
Answer: D
Explanation: A)
B)
C)
D)
E)

14) Which of the following statements about innovation is true? 14)

A) Customer perception has nothing to do with the definition of innovation.
B) A product may legally be described as new and innovative for three years.
C) Innovation is anything that the marketer decides to call new.
D) The FTC has created a legal definition of the term innovation.
E) A product may be called an innovation even though it is not significantly changed from its
predecessors.
Answer: D
Explanation: A)
B)
C)
D)
E)

15) Which of the following statements about the adoption rates of organizations is true? 15)
A) Firms are more likely to accept a new product if they perceive the improvement to be large in
relation to the investment they will have to make.
B) Firms that welcome innovations are likely to be younger companies.
C) Firms that accept innovation tend to have an entrepreneurial corporate culture.
D) Organizations are likely to adopt an innovation that helps them increase their gross margins.
E) All of the above statements are true.
Answer: E
Explanation: A)
B)
C)
D)
E)

5
16) When Mae's mother died, Mae was glad her mother had the foresight to prepay her funeral 16)
expenses. Then Mae was told that new state regulations require each coffin placed in the ground
had to be in a burial vault--an additional $800 expense. For Mae, the burial vault was a(n)
________.
A) homogeneous product
B) convenience product
C) specialty product
D) unsought product
E) shopping product
Answer: D
Explanation: A)
B)
C)
D)
E)

17) The last stage in the new-product development process is ________. 17)
A) idea generation
B) concept testing
C) business analysis
D) commercialization
E) product concept development
Answer: D
Explanation: A)
B)
C)
D)
E)

18) A group of business entrepreneurs who worried about their teenage children drinking and driving 18)
decided there must be some way to approach this problem proactively. They came up with an idea
for a pair of blurry goggles. They believed looking through the goggles would simulate what the
world looks like when someone is seriously intoxicated. The first crude pair of blurry goggles
developed by the entrepreneurs to show to prospective customers was ________.
A) a heuristic
B) raw material
C) a synergistic model
D) processed material
E) a prototype
Answer: E
Explanation: A)
B)
C)
D)
E)

6
19) Which of the following statements about the adopter categories is true? 19)
A) Late majority adopters are typically very concerned about social acceptance.
B) Early majority adopters are typically middle class and like to buy well-established products.
C) More than 50 percent of the population is classified as late majority adopters.
D) Innovators are a much larger group than laggards.
E) Early adopters are risk aversive.
Answer: B
Explanation: A)
B)
C)
D)
E)

20) Pepsi-Cola's development of Wild Cherry Pepsi, a cherry-flavored soda, is an example of a 20)
________.
A) dynamically continuous innovation
B) competitive innovation
C) nonradical innovation
D) discontinuous innovation
E) continuous innovation
Answer: E
Explanation: A)
B)
C)
D)
E)

21) Consumers must engage in a great amount of learning to use a ________ because no similar 21)
product has ever been on the market.
A) nonradical innovation
B) discontinuous innovation
C) competitive innovation
D) continuous innovation
E) dynamically continuous innovation
Answer: B
Explanation: A)
B)
C)
D)
E)

7
22) In terms of the five characteristics of innovations that affect the rate of adoption, the digital camera 22)
would most clearly have a higher degree of ________ than flavored bottled water.
A) tangibility
B) complexity
C) compatibility
D) comparative advantage
E) comparability
Answer: B
Explanation: A)
B)
C)
D)
E)

23) The vehicle jack and other hand tools carried by a truck driver are examples of which type of 23)
business product?
A) repair products
B) operating supplies
C) organizational products
D) restoration products
E) maintenance products
Answer: A
Explanation: A)
B)
C)
D)
E)

24) An Internet company provides other businesses operating on the Internet with various kinds of 24)
help handling distribution bottlenecks including software that manages tariffs and exchange rates
for companies that ship internationally. This company is an example of a(n) ________.
A) processed product
B) component service
C) MRO service
D) tangible product
E) specialized service
Answer: E
Explanation: A)
B)
C)
D)
E)

8
25) Tony wanted to buy a pair of binoculars but not just any brand. He wanted to buy a pair of Steiner 25)
Nighthunter just like the pair he had learned about in his newest copy of Peter's Hunt magazine. He
had to visit five different sporting goods stores before he found this brand. For Tony, the Steiner
Nighthunter is an example of a ________.
A) shopping product
B) commodity
C) specialty product
D) convenience product
E) homogeneous product
Answer: C
Explanation: A)
B)
C)
D)
E)

26) In the business market, wheat, coal, and bauxite (used to make aluminum) are all examples of 26)
________.
A) accessory equipment
B) processed materials
C) MRO products
D) component parts
E) raw materials
Answer: E
Explanation: A)
B)
C)
D)
E)

27) If Bosa Nova added the new acai juice ingredient to an energy drink it is an example of a ________; 27)
it is a modification to an existing product that differentiates one brand from another. The consumer
doesn't have to learn anything to use the new product.
A) continuous innovation
B) dynamically continuous innovation
C) competitive innovation
D) nonradical innovation
E) discontinuous innovation
Answer: A
Explanation: A)
B)
C)
D)
E)

9
28) ________ occurred when Alton Johnson's fascination with the fruits of Brazil led him to develop 28)
juices with new fruit flavors by Bosa Nova for the American market.
A) Product manufacturing
B) Product development
C) Idea screening
D) Idea generation
E) Concept testing
Answer: D
Explanation: A)
B)
C)
D)
E)

29) Customers usually know a good deal about ________, are loyal to specific brands, and spend little, 29)
if any, time comparing alternatives.
A) homogeneous products
B) specialty products
C) convenience products
D) shopping products
E) commodities
Answer: B
Explanation: A)
B)
C)
D)
E)

30) Which of the following is an example of a product? 30)

A) a garbage can
B) the formula for a cellulose-based plastic
C) a haircut
D) a musical performance by the Dixie Chicks
E) all of the above
Answer: E
Explanation: A)
B)
C)
D)
E)

10
31) Marissa arrived early for her job interview. She was very excited about the opportunity to 31)
interview for a prestigious position. As she got out of the car, she got a run in her pantyhose. She
was pleased to see a convenience store down the road and went there to purchase a replacement
pair of pantyhose. For Marissa, the pantyhose were an example of a(n) ________.
A) attribute-based convenience good
B) staple
C) unsought product
D) emergency product
E) impulse product
Answer: D
Explanation: A)
B)
C)
D)
E)

32) Which of the following new products would have the greatest degree of observability? 32)
A) the Wonder Bra, which made women who wore one appear to have increased her bust by at
least one cup size
B) Tylenol PM, a nonprescription sleep aid
C) microwaveable plastic dishes
D) silk underwear for men
E) nail clippers designed to prevent ingrown toenails
Answer: A
Explanation: A)
B)
C)
D)
E)

33) A ________ is a pronounced modification to an existing product that requires a modest amount of 33)
learning or change in behavior to use it.
A) nonradical innovation
B) competitive innovation
C) continuous innovation
D) dynamically continuous innovation
E) discontinuous innovation
Answer: D
Explanation: A)
B)
C)
D)
E)

11
34) A(n) ________ is a purchase made on the spur of the moment without any planning or search effort. 34)
A) unsought product
B) commodity
C) impulse purchase
D) shopping product
E) emergency product
Answer: C
Explanation: A)
B)
C)
D)
E)

35) Unlike innovators, early adopters ________. 35)

A) tend to focus on very few interests
B) have stronger physiological needs than others in the population
C) compose the smallest of the adopter categories
D) have greater concern for social acceptance
E) are light media users
Answer: D
Explanation: A)
B)
C)
D)
E)

36) One of the advantages of test marketing is ________. 36)

A) the opportunity to survey prospective customers'.
B) the opportunity to sell existing products with a core customer base
C) the ability to keep information from falling into competitors' hands
D) the ability to evaluate a product and its marketing program before commercialization
E) the low cost
Answer: D
Explanation: A)
B)
C)
D)
E)

37) Which of the following is the best example of a convenience product? 37)
A) a subscription to a magazine
B) a CD player
C) chewing gum
D) a lawn mower
E) a silk scarf
Answer: C
Explanation: A)
B)
C)
D)
E)

12
38) Burger King developed a new french fry to compete with McDonald's world's best french fry. The 38)
specifications included that the crunch would last for seven or more chews. The product failed
because consumers did not like the fry as well as McDonald's fry. Burger King did not ________ the
idea for both technical and commercial value.
A) look at the benefits of
B) screen
C) advertise
D) style
E) promote
Answer: B
Explanation: A)
B)
C)
D)
E)

39) ________ are typically lower in social class than other adopter categories and are bound by 39)
tradition.
A) Early adopters
B) Laggards
C) Late majority
D) Early majority
E) Impulse buyers
Answer: B
Explanation: A)
B)
C)
D)
E)

40) Procter & Gamble introduced its Duncan Hines ready-to-spread frosting in a small geographic 40)
area. When General Foods became aware of the product, it rushed to market its own Betty Crocker
ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods
was able to enter the ________ stage of the new-product development process before Procter &
Gamble could.
A) product concept development
B) idea generation
C) commercialization
D) concept testing
E) business analysis
Answer: C
Explanation: A)
B)
C)
D)
E)

13
41) For the business market, a multipurpose absorbent used to clean up any type of spills would be an 41)
example of a(n) ________.
A) operating supply
B) consumer product
C) maintenance product
D) repair product
E) restoration product
Answer: C
Explanation: A)
B)
C)
D)
E)

42) The last stage in the product adoption process is ________. 42)
A) adoption
B) confirmation
C) evaluation
D) awareness
E) interest
Answer: B
Explanation: A)
B)
C)
D)
E)

43) Harrah's built a large casino in the St. Louis area. In terms of business-to-business product, the 43)
structure that houses Harrah's casino is a(n) ________.
A) building staple
B) MRO product
C) installation
D) specialty product
E) accessory equipment
Answer: C
Explanation: A)
B)
C)
D)
E)

14
44) The ________ for a guest paying for a night's stay at a hotel is a bed, bathroom, towels, dresser, 44)
light, and closet.
A) value-deliverable product
B) augmented product
C) actual product
D) core product
E) customized benefit
Answer: C
Explanation: A)
B)
C)
D)
E)

45) Marketers classify innovations based on their ________. 45)

A) contribution margins
B) degree of tangibility
C) degree of newness
D) costs to manufacture/provide
E) prices
Answer: C
Explanation: A)
B)
C)
D)
E)

46) ________ is when marketers use a variety of sources to come up with a potentially new product 46)
that would beneficial to customers and is compatible with the company mission.
A) Idea generation
B) Problem recognition
C) A repositioning strategy
D) Perceptual mapping
E) Product screening
Answer: A
Explanation: A)
B)
C)
D)
E)

15
47) For a veterinarian's office, the paper used to print payment receipts, the antiseptic used to sterilize 47)
instruments, and the soap used to clean examination tables are all examples of ________.
A) restoration products
B) organizational products
C) operating supplies
D) repair products
E) maintenance products
Answer: C
Explanation: A)
B)
C)
D)
E)

48) Marketers may conduct a massive advertising campaign, called a media blitz, to make consumers 48)
aware of a new product in the ________ stage of a customer's adoption of a new product.
A) evaluation
B) trial
C) awareness
D) adoption
E) impulse purchase
Answer: C
Explanation: A)
B)
C)
D)
E)

49) Innovators are NOT ________. 49)

A) people who like to boast about being the first to try a new product
B) the last people to try a new product
C) younger than others in the population
D) typically described as worldly
E) typically better educated than other segments in the population
Answer: B
Explanation: A)
B)
C)
D)
E)

16
50) Marketers classify convenience products as ________. 50)
A) generic products and branded products
B) staples, impulse products, and emergency products
C) core products, actual products, and augmented products
D) specialty products, shopping products, and unsought products
E) attribute-based products and price-based products
Answer: B
Explanation: A)
B)
C)
D)
E)

51) The ________ for a guest paying for a night's stay at a hotel is rest and sleep. 51)
A) core product
B) generic product
C) augmented product
D) value-deliverable product
E) customized benefit
Answer: A
Explanation: A)
B)
C)
D)
E)

52) Beth wants to buy Christmas lights to decorate her new home. At various stores, Beth found lights 52)
priced from $6.99 a strand to $25.99 a strand. Beth bought almost $200 worth of the cheapest lights
so that she could have as many lights on her house as possible. For Beth, Christmas lights are a(n)
________.
A) commodity
B) attribute-based shopping product
C) homogeneous product
D) price-based shopping product
E) specialized shopping product
Answer: D
Explanation: A)
B)
C)
D)
E)

17
53) Netlie provides rental of DVDs. Netlie's ________ includes free shipping, no time limits, extensive 53)
selection, and targeted recommendation.
A) augmented product
B) function
C) actual product
D) attribute-based shopping good
E) benefit
Answer: A
Explanation: A)
B)
C)
D)
E)

54) ________ is the degree to which a consumer perceives that a new product provides superior 54)
benefits.
A) Tangibility
B) Relative advantage
C) Complexity
D) Compatibility
E) Comparability
Answer: B
Explanation: A)
B)
C)
D)
E)

55) Some potential customers, even after ________, do not go on to the final stage of product 55)
confirmation.
A) awareness
B) adoption
C) interest
D) evaluation
E) trial
Answer: B
Explanation: A)
B)
C)
D)
E)

18
56) Unlike innovators, ________ have a great concern for social acceptance. 56)
A) early adopters
B) laggards
C) late majority
D) impulse buyers
E) early majority
Answer: A
Explanation: A)
B)
C)
D)
E)

57) Estimating ________ is deciding whether anyone is likely to buy a new product. 57)
A) commercial success
B) technical success
C) problem recognition
D) perceptual mapping
E) idea generation
Answer: A
Explanation: A)
B)
C)
D)
E)

58) A ________ is a good or service for which consumers will spend time and effort gathering 58)
information on price, product attributes, and product quality.
A) shopping product
B) homogeneous product
C) generic product
D) specialty product
E) convenience product
Answer: A
Explanation: A)
B)
C)
D)
E)

59) The first step in the adoption process is ________. 59)

A) need evaluation
B) interest
C) awareness
D) product evaluation
E) problem recognition
Answer: C
Explanation: A)
B)
C)
D)
E)

19
60) Which of the following is an example of an innovation? 60)
A) a new product such as personal digital assistants
B) tongue piercings
C) a new communications technology such as WiMAX
D) fads such as Razor scooters
E) all of the above
Answer: E
Explanation: A)
B)
C)
D)
E)

61) Organizations are likely to adopt an innovation that ________. 61)

A) helps them increase gross margins
B) provides a way to reduce labor costs
C) is consistent with a firm's way of doing business
D) helps them increase profits
E) all of the above
Answer: E
Explanation: A)
B)
C)
D)
E)

62) Which of the following is NOT identified as one of the five characteristics of innovations that affect 62)
the rate of adoption?
A) relative advantage
B) compatibility
C) tangibility
D) observability
E) trialability
Answer: C
Explanation: A)
B)
C)
D)
E)

20
63) ________ is the extent to which a new product is consistent with existing cultural values, customs, 63)
and practices.
A) Complexity
B) Relative advantage
C) Tangibility
D) Comparability
E) Compatibility
Answer: E
Explanation: A)
B)
C)
D)
E)

64) ________ is the degree to which consumers find a new product or its use difficult to understand. 64)
A) Complexity
B) Compatibility
C) Comparability
D) Tangibility
E) Relative advantage
Answer: A
Explanation: A)
B)
C)
D)
E)

65) The Federal Trade Commission says that a product must be entirely new or changed significantly 65)
to be called new and that a product may be called new for only ________ months.
A) three B) six C) ten D) twelve E) two
Answer: B
Explanation: A)
B)
C)
D)
E)

66) Which of the following is an important reason for a firm to understand new products? 66)
A) the high cost of developing new products
B) the high cost of bringing new products to market
C) customer demands concerning new products
D) the high cost of new products that fail
E) all of the above
Answer: E
Explanation: A)
B)
C)
D)
E)

21
67) ________ means the coming together of two or more technologies to create new systems that 67)
provide greater benefit than the original technologies alone.
A) Knockoff
B) Convergence
C) Idea generation
D) Discontinuous innovation
E) Dynamically continuous innovations
Answer: B
Explanation: A)
B)
C)
D)
E)

68) Which of the following statements about durable goods is true? 68)
A) Durable goods are more likely to require low-involvement decisions than perishable goods.
B) Durable goods provide a benefit over a long period of time.
C) Consumers purchasing durable goods typically use habitual decision making.
D) The information search is quicker for durable goods than it is for nondurable goods.
E) Product evaluation is more likely to take place for nondurable goods than for durable goods.
Answer: B
Explanation: A)
B)
C)
D)
E)

69) Which of the following is the best example of a durable good? 69)
A) detergent
B) package of lightbulbs
C) bottle of nail polish
D) computer printer
E) bag of cat food
Answer: D
Explanation: A)
B)
C)
D)
E)

70) Diffusion refers to ________. 70)

A) the promotion used to support products throughout their product life cycle
B) the second stage of the market segmentation process
C) the selection of opinion leaders to encourage product acceptance
D) the way the use of a product spreads throughout a population
E) the methodology used for evaluating new product ideas
Answer: D
Explanation: A)
B)
C)
D)
E)

22
71) Which of the following statements is NOT a reason successful new-product introductions are 71)
becoming more difficult for firms?
A) costs of research and development may be huge
B) increasing manufacturers' costs
C) products are becoming outdated faster than ever
D) venture capitalists have run out of money to invest
E) the number of products competing for limited retail shelf space
Answer: D
Explanation: A)
B)
C)
D)
E)

72) ________ is how visible a new product and its benefits are to others who might adopt it. 72)
A) Relative advantage
B) Compatibility
C) Tangibility
D) Comparability
E) Observability
Answer: E
Explanation: A)
B)
C)
D)
E)

73) ________ for the Bosa Nova energy drink is the moment of truth when the sales of the product 73)
spike from a slow climb to an unprecedented new level, that is , reaches the moment of critical
mass.
A) Market modification
B) Commercialization
C) Product adoption
D) Positioning
E) The tipping point
Answer: E
Explanation: A)
B)
C)
D)
E)

23
74) Procter & Gamble introduced its Duncan Hines ready-to-spread frosting in a small geographic 74)
area. When General Foods became aware of the product, it rushed to market its own Betty Crocker
ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This act
illustrates ________.
A) why prototypes are so important
B) one of the problems associated with test marketing
C) how idea screening can make a product a commercial success
D) why many companies engage in test marketing
E) the variety of sources for idea generation
Answer: B
Explanation: A)
B)
C)
D)
E)

75) MRO products are goods that businesses use for ________. 75)
A) maintenance, research, and organization
B) management, research, and order-processing
C) marketing, relationship-building, and operation
D) marketing, research, and organization
E) maintenance, repair, and operation
Answer: E
Explanation: A)
B)
C)
D)
E)

76) ________ describes how the use of a product spreads throughout a population. 76)
A) Product rollout
B) Market manipulation
C) Diffusion
D) Diversification
E) Positioning
Answer: C
Explanation: A)
B)
C)
D)
E)

24
77) Traffic in major metropolitan areas is too often brought to a standstill after wreckage has been 77)
cleared away because investigators must painstakingly measure skid marks and determine
culpability. After a police chief missed an important meeting because of a wreck investigation, he
was pleased to find an article about a company that markets a new high-tech crash investigation
system that shortens the time required for these investigations by 50 percent. In which stage of the
adoption process is the police chief?
A) adoption, when it purchased the system, because he is buying the product
B) confirmation, because he is convinced the city made the right decision
C) evaluation, because he is looking for similar products
D) trial, because he is testing the effectiveness of the system
E) interest, because he can see how the system will benefit him and the city
Answer: E
Explanation: A)
B)
C)
D)
E)

78) Before attending a recent trade show, a police officer had wished there was a gadget that he could 78)
subtly use to check the alcohol levels of car drivers and passengers that he pulled over for traffic
infractions, but never thought he would. At the show, he discovered a flashlight made by KAS
Systems that could be used to check alcohol levels without anyone knowing what he was doing.
Prior to the show, the KAS system was a(n) ________ for the police officer.
A) shopping product
B) convenience product
C) unsought product
D) homogeneous product
E) specialty product
Answer: C
Explanation: A)
B)
C)
D)
E)

79) For an amusement park, concession food trailers, the parking lot, the first-aid building, and the 79)
building where the park's daily receipts are tallied are all examples of ________.
A) processed materials
B) convenience products
C) equipment
D) specialty products
E) MRO products
Answer: C
Explanation: A)
B)
C)
D)
E)

25
80) ________ are the last in the population to adopt a new product. 80)
A) Laggards
B) Slackers
C) Late majority adopters
D) Shirkers
E) Dawdlers
Answer: A
Explanation: A)
B)
C)
D)
E)

81) The business analysis for a new product begins with ________. 81)
A) assessing how the new product will fit into a firm's total product mix
B) problem recognition
C) perceptual mapping
D) idea generation
E) a repositioning strategy
Answer: A
Explanation: A)
B)
C)
D)
E)

82) At a retail store, the display racks on which clothes are hung, the shelving, and the cash registers 82)
are all examples of ________.
A) specialty products
B) MRO products
C) accessory equipment
D) building staples
E) capital equipment
Answer: C
Explanation: A)
B)
C)
D)
E)

26
83) For many firms ________ is a continuous process of looking for ways to make an existing product 83)
better.
A) product development
B) technical development
C) product manufacturing
D) idea screening
E) concept testing
Answer: A
Explanation: A)
B)
C)
D)
E)

84) Prior to the development of the cardiac stent, surgeons used balloons to clear obstructed heart 84)
vessels, but there was no way to ensure the vessels would stay open. The stent is a tiny metal
scaffold that props open the formerly obstructed blood vessel and keeps it from becoming
obstructed again. Surgeons who use the stent had to engage in a great deal of learning to
understand its use and how valuable a tool it was in patient care. There was nothing like the stent
on the market when it first appeared. The cardiac stent was an example of a ________.
A) competitive innovation
B) nonradical innovation
C) dynamically continuous innovation
D) discontinuous innovation
E) continuous innovation
Answer: D
Explanation: A)
B)
C)
D)
E)

85) The ________ for a guest paying for a night's stay at a hotel would include fresh flowers in the 85)
room, remote control television, express checkout, and superb room service.
A) augmented product
B) value network
C) generic product
D) actual product
E) potential product
Answer: A
Explanation: A)
B)
C)
D)
E)

27
86) Which of the following is an example of a good? 86)
A) an idea for a new television show
B) a textbook
C) a massage
D) a medical examination by a doctor
E) dry cleaning
Answer: B
Explanation: A)
B)
C)
D)
E)

87) If Bosa Nova introduces a new product line and a new brand with the highest antioxidant juice 87)
ingredient in the world, what stage in the consumer adoption process model would the target
market be in?
A) interest
B) awareness
C) trial
D) evaluation
E) confirmation
Answer: B
Explanation: A)
B)
C)
D)
E)

88) Marketers typically view all products as ________. 88)

A) heuristics
B) tangible items that satisfy some need
C) intangible items
D) need hierarchical satisfiers
E) bundles of attributes
Answer: E
Explanation: A)
B)
C)
D)
E)

28
89) When Tasty Home Cooking, a cooking magazine, was introduced, there were already several 89)
publications devoted to cooking. Many people who like to cook perceived the new magazine to be
superior to what was currently on the market because all of its recipes contain familiar products
that are readily available at all supermarkets--a need that other magazines had not fulfilled. In
terms of the five characteristics of innovations that affect the rate of adoption, Tasty Home Cooking
was perceived to have a high ________ when compared to similar magazines.
A) relative advantage
B) empathy rate
C) complexity
D) compatibility
E) observability
Answer: A
Explanation: A)
B)
C)
D)
E)

90) Which of the following products would most consumers classify as a shopping product? 90)
A) a subscription to a the Wall Street Journal
B) a doctor's visit to check your children's vision
C) a flea collar
D) a can of spinach
E) a box of adhesive bandages
Answer: B
Explanation: A)
B)
C)
D)
E)

91) The first stage of the new-product development process is ________. 91)
A) idea screening
B) problem recognition
C) idea generation
D) a business analysis
E) concept testing
Answer: C
Explanation: A)
B)
C)
D)
E)

29
92) One of the reasons given for the success of the reality television shows was the fact the shows 92)
appealed to a cultural bias that real-life drama is preferable to fiction. Americans desired
adventure and escapism that offered them the opportunity for participation but did not require it.
In terms of the five characteristics of innovations that affect the rate of adoption, reality television
shows have a high degree of ________ with current cultural values.
A) observability
B) relative advantage
C) trialability
D) complexity
E) compatibility
Answer: E
Explanation: A)
B)
C)
D)
E)

93) In the ________ of the new-product development phase, marketers estimate the technical and the 93)
commercial success of an idea for a new product. They recognize that appearance and design may
be critical to the success of a new product.
A) problem recognition
B) concept development and screening
C) commericalization
D) idea screening
E) idea generation
Answer: D
Explanation: A)
B)
C)
D)
E)

94) Bosa Nova makes ________ products. People who are looking for high quality healthy beverages 94)
like Bosa Nova are willing to pay a high price .
A) shopping
B) specialty
C) staple
D) convenience
E) sought product
Answer: B
Explanation: A)
B)
C)
D)
E)

30
95) Camille was standing in the checkout line at her neighborhood grocery last night when she saw a 95)
display of Hostess Twinkies. She remembered how much she had enjoyed Twinkies as a child, and
she knew she just had to buy a package of Twinkies even though it was not on her shopping list.
For Camille, Twinkies were an example of a(n) ________.
A) staple
B) attribute-based convenience good
C) unsought product
D) impulse product
E) emergency product
Answer: D
Explanation: A)
B)
C)
D)
E)

96) Which of the following adjectives best describes a product that would be classified as a good? 96)
A) disposable
B) nonperishable
C) heterogeneous
D) tangible
E) convenient
Answer: D
Explanation: A)
B)
C)
D)
E)

97) ________ is the process by which a consumer or business customer begins to buy and use a new 97)
good, service, or idea.
A) Positioning
B) Product testing
C) Commercialization
D) Market modification
E) Product adoption
Answer: E
Explanation: A)
B)
C)
D)
E)

31
 98) Why is successful new-product introduction becoming increasingly more difficult? 98)
A) New-product development costs are so low that any company with a good idea can create a
new product.
B) Government regulations have become so stringent that new products are usually years in the
testing stage while waiting approvals.
C) Products become outdated at a much faster rate than ever before.
D) Creating new products is not costly.
E) Many international companies are engaging in product innovation.
Answer: C
Explanation: A)
B)
C)
D)
E)

99) In the business market, steel tubing, natural cloth fabric, and lumber are all examples of ________. 99)
A) component parts
B) raw materials
C) accessory equipment
D) processed materials
E) MRO products
Answer: D
Explanation: A)
B)
C)
D)
E)

100) Marketers are striving to generate customer ________ when a design teaser advertisement is 100)
created that will give prospective customers just enough information about the new product to
make them curious.
A) interest
B) impulse purchasing
C) awareness
D) evaluation
E) adoption
Answer: A
Explanation: A)
B)
C)
D)
E)

32
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

101) Explain the three layers of the product the marketer needs to understand to adequately 101)
serve the consumer?
Answer: The three layers of the product are the core product, the actual product, and the
augmented product. The core product consists of all the benefits the product will
provide for the consumer or business. The actual product is the physical good or the
delivered service that supplies the desired benefit. The augmented product is the
actual product plus other supporting features such as a warranty, credit, delivery,
installation, and repair service after the sale.
Explanation:

102) Explain discontinuous innovation. 102)

Answer: A discontinuous innovation creates major changes in the way we live. To use a
discontinuous innovation, consumers must engage in a great amount of learning
because no similar product has ever been on the market.
Explanation:

103) What are three reasons why successful new-product introductions are becoming more 103)
difficult for firms?
Answer: Successful new-product introductions are becoming more difficult due to the
following reasons. The costs of research and development are often so huge that
firms must limit the number of new products in development. Products are
outdated faster than ever, so firms have less time to recover their
research-and-development costs. With so many products competing for limited
shelf space, retailers often charge manufacturers high fees to stock a new product
and that increases manufacturers' costs even more.
Explanation:

104) What are prototypes? During which phase in the new product development process would 104)
a company develop prototypes?
Answer: A prototype is a physical version of a product that is often evaluated by prospective
customers. Prototypes are made during the technical development stage just prior to
market testing.
Explanation:

105) White Wave Inc., the maker of Silk soy milk, gave away free samples of its product to get 105)
consumers to try the first refrigerated soy milk sold in America. What stage of the
customer's adoption of a new product was implemented by White Wave Inc.? Support
your answer.
Answer: White Wave Inc. was implementing the trial stage of the adoption of a new product
when they gave potential consumers samples of their soy milk.
Explanation:

33
106) Microsoft launched a massive $500 million marketing campaign when it introduced the 106)
Xbox, promoting the new product through in-store merchandising, retailer incentives,
events and sponsorships, in addition to traditional advertising. What stage of the
customer's adoption of a new product was implemented by Microsoft? Support your
answer.
Answer: Microsoft may have implemented the awareness and/or the interest stage, which is
awareness in letting consumers know about the Xbox and interest in how consumers
may respond to what was learned by all of the actions taken by Microsoft.
Explanation:

107) In business-to-business products, what is the difference between capital equipment and 107)
accessory equipment?
Answer: Capital equipment, sometimes referred to as installations, are big-ticket items and
last for a number of years. Accessory equipment refers to portable items that cost
less and have a shorter life span than capital equipment.
Explanation:

108) What category of consumer adopters would purchase a product when the product is no 108)
longer considered to be risky? Explain your answer.
Answer: Students may read this question and perhaps interpret it to mean any one of the
three categories: early majority, late majority, or laggards, depending upon the way
the student presents the rationale for her/his answer to determine the correctness of
the response. The textbook defines this person as being within the late majority
classification. The late majority adopters avoid trying a new product until it is no
longer risky. By that time, the product has become an economic necessity or there is
pressure from peer groups to adopt.
Explanation:

109) Explain impulse products. Identify a challenge marketers may have regarding impulse 109)
products.
Answer: An impulse product is something people buy on the spur of the moment. With an
impulse product, marketers have two challenges. (1) Create a product or package
design that is enticing and "reaches out and grabs the customer." (2) Make sure the
product is highly visible by securing prime end-aisle or checkout land space for the
product.
Explanation:

110) What must marketers do during the "develop a marketing strategy" phase of the new 110)
products development process?
Answer: Marketers must identify the target market, estimate its size, and determine how the
product can be positioned to effectively address the target market's needs.
Explanation:

111) Define emergency product. Give an example of an emergency product. Explain why the 111)
price and perhaps the quality of this product may not be an issue at the time of purchase.
Answer: Emergency products are those products purchased when there is a dire need.
Because the product is needed badly and immediately, price and sometimes the
product quality may be irrelevant to the purchasing decision. Examples of
emergency products will vary with each student. Some examples could be an
umbrella during a rain storm and a new tire when one on the car just went flat.
Explanation:

34
 112) Why would a company create a knockoff of another product? 112)
Answer: A knockoff product is a new product that copies, with slight modification, the
design of an original product. Firms deliberately create knockoff products with the
intent to sell to a larger or different market than consumers who would buy the
original product.
Explanation:

113) What category of consumer adopters would purchase a product when the product is no 113)
longer considered new or different? Explain your answer.
Answer: Consumers classified as the early majority avoid being either the first or last to try
an innovation. When early adopters purchase a product, the product is no longer
considered new or different. The product has already been established
Explanation:

114) How do marketers define innovation? 114)

Answer: Marketers define innovation as anything that customers perceive as new and
different.
Explanation:

115) Why would a company adopt a business-to-business product? 115)

Answer: Companies are likely to adopt an innovation that increases gross margins and
profits. Innovations are attractive to businesses when they are consistent with a
firm's way of doing business.
Explanation:

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

116) Consumers would perceive a ceiling fan as having greater trialability than a new kind of snack 116)
food.
Answer: True False
Explanation:

117) Test marketing is an inexpensive way to predict whether a new product will be a success. 117)
Answer: True False
Explanation:

118) Visiting a close friend to see her new high-definition television is an example of observability. 118)
Answer: True False
Explanation:

119) Business analysis for a new product begins with assessing how the new product will fit the firm's 119)
total product mix.
Answer: True False
Explanation:

120) Organizations are likely to adopt an innovation that helps them increase their gross margins and 120)
profits.
Answer: True False
Explanation:

35
121) Innovators tend to be better off financially that other adopter groups. 121)
Answer: True False
Explanation:

122) The purchase of a shopping product typically requires habitual consumer decision making. 122)
Answer: True False
Explanation:

123) The first step in the product adoption process is to create interest. 123)
Answer: True False
Explanation:

124) Product adoption is the process by which a consumer or business customer begins to buy and use a 124)
new good, service, or idea.
Answer: True False
Explanation:

125) Nondurable goods are more likely to be purchased under conditions of high involvement than 125)
durable goods.
Answer: True False
Explanation:

126) Commercialization is in the middle of the new-product development process. 126)

Answer: True False
Explanation:

127) The development of different television shows using the same format as an existing series is an 127)
example of a dynamically continuous innovation.
Answer: True False
Explanation:

128) Because of the problem with test marketing, marketers sometimes conduct simulated test 128)
marketing.
Answer: True False
Explanation:

129) Consumers usually know a good deal about specialty products, are loyal to specific brands, and 129)
spend little if any time comparing alternatives.
Answer: True False
Explanation:

130) Bosa Nova's energy drink product is classified as a consumer product. 130)
Answer: True False
Explanation:

131) Marketers classify products based on where and how consumers buy the products. 131)
Answer: True False
Explanation:

36
132) The largest adopter category is the early adopters. 132)
Answer: True False
Explanation:

133) Consumers' perception of relative advantage would help determine the success of a new magazine 133)
targeted to girls between the ages of fourteen and seventeen.
Answer: True False
Explanation:

134) Some business customers purchase specialized services that are essential to the operation of an 134)
organization but not part of the production of a product.
Answer: True False
Explanation:

135) Laggards tend to be in a higher social class than the other adopter categories. 135)
Answer: True False
Explanation:

136) Simulated test marketing allows the company to determine where in the store the product should 136)
be placed to maximize sales.
Answer: True False
Explanation:

137) The evaluation stage for a product is longer for an impulse purchase than it is for a shopping 137)
product.
Answer: True False
Explanation:

138) The addition of sugar-free canned fruits to Del Monte's line of canned fruits and vegetables is an 138)
example of a discontinuous innovation.
Answer: True False
Explanation:

139) Samsung recognized early that color screens on cell phones were going to be in demand by 139)
customers. This is an example of an organizational difference affected by product adoption.
Answer: True False
Explanation:

140) The state of Missouri is a product that can be promoted as a great place to locate a new business. 140)
Answer: True False
Explanation:

37
ESSAY. Write your answer in the space provided or on a separate sheet of paper.

141) A fast-food chain wanted to add a new product to its breakfast menu. The company considered a pancake
shaped like a muffin. The problem was in determining how a customer would add syrup to the pancake while
eating and driving. Fortunately, one of the company's suppliers developed a crystallized syrup that seeps
through the pancake once it is heated. Explain the phase of new-product development that was implemented
during this process with the chain and its supplier? Support your rationale.
Answer: Technical development was implemented during this scenario with the fast-food chain and the
company's supplier. Technical development occurs when a firm's engineers work with marketers in
refining the design and production process. The pancake was refined and redesigned to allow the new
type of syrup that could be added to the pancake.

142) Explain why marketers need to understand views of consumers in dealing with the compatibility and
complexity of the products.
Answer: Compatibility is the extent to which a new product is consistent with existing cultural values, customs,
and practices. By anticipating compatibility issues early in the new-product development stage,
marketing strategies can address such problems in planning communication programs, or there may be
opportunities for altering product designs to overcome some consumer objectives. Complexity is the
degree to which consumers find a new product or its use difficult to understand. Perhaps if the consumer
does not understand what a product can do or how to use it, the product will not be purchased.

143) Why is reselling the customer an important part of the confirmation after the adoption of an innovation?
Answer: Favorable experiences contribute to new customers becoming loyal adopters, as their initially positive
opinions result in confirmation of the product. Even loyal customers may decide that a new product is
not meeting expectations and reject it. Some marketers feel that reselling the customer in the confirmation
stage is important. In reselling, the customer is again purchasing the product.

144) Marketers classify innovations into three categories based on their degree of newness. Explain these categories.
Include what role the consumer has in each of these innovations.
Answer: (1) A continuous innovation is a modification of an existing product. The consumer does not have to
learn anything to use a continuous innovation. (2) A dynamically continuous innovation is a pronounced
modification to an existing product that requires the consumer to engage in a modest amount of learning
or a change in behavior to use. (3) A discontinuous innovation creates major changes in the way we live.
To use a discontinuous innovation, consumers must engage in a great amount of learning because no
similar product has ever been on the market.

145) Why are products classified as continuous innovations? Relate this concept to the development of the Bosa
Nova new juice with the acai ingredient..
Answer: A continuous innovation is a modification to an existing product that differentiates one brand from
another. This requires no learning on the part of the consumers since they already know how to drink
juice.

146) Explain durable and nondurable goods. Give an example of each.

Answer: Durable and nondurable goods are goods that have been classified according to how long the product
lasts. Durable goods are consumer products that last many years, such as refrigerators, computers,
bedroom furniture, and cars. Nondurable goods are consumer products that are consumed in a short
term, such as a newspaper, a soda, chewing gum, deodorant, and flea spray.

38
147) What are the disadvantages and advantages associated with test marketing?
Answer: The disadvantages of test marketing are: high cost; the competitor gets a free and early look at the
product, the introductory price, and the intended promotional strategy; the competitor gets an
opportunity to enter the market first with a competing product. The advantages of test marketing are: by
offering a new product in a limited area of the market, marketers can evaluate and improve the
marketing program; sometimes test marketing uncovers a need to improve the product itself; test
marketing may show the marketers that the new product idea will not succeed and allows them to quit at
this point--before commercialization thus avoiding future losses.

148) Convenience product purchases are not alike. What are the three types of convenience products and show how
they differ from one another?
Answer: Marketers classify convenience products as either staples, impulse products, or emergency products.
Staples are basic or necessary items that are available almost everywhere. Impulse products are items
people buy on the spur of the moment. Emergency products are those products we purchase when we're
in dire need, such as umbrellas during a rain storm.

149) What are the phases involved in the development of a new product?
Answer: There are seven phases to be completed in a new product strategy. The seven phases are: idea generation,
product concept development and screening, marketing strategy development, business analysis,
technical development, marketing testing, and commercialization.

150) How would you explain the following statement: "A product is a bundle of attributes."?
Answer: A product is not just a thing in a package. It includes the package, the brand name, the product benefits,
and supporting features in addition to the physical good. A product is everything a consumer receives in
an exchange. This question can also be answered in terms of the core product, the actual product, and the
augmented product.

39
Answer Key
Testname: C8

1) B
2) B
3) B
4) A
5) A
6) A
7) D
8) E
9) C
10) A
11) E
12) B
13) D
14) D
15) E
16) D
17) D
18) E
19) B
20) E
21) B
22) B
23) A
24) E
25) C
26) E
27) A
28) D
29) B
30) E
31) D
32) A
33) D
34) C
35) D
36) D
37) C
38) B
39) B
40) C
41) C
42) B
43) C
44) C
45) C
46) A
47) C
48) C
49) B
50) B
40
Answer Key
Testname: C8

51) A
52) D
53) A
54) B
55) B
56) A
57) A
58) A
59) C
60) E
61) E
62) C
63) E
64) A
65) B
66) E
67) B
68) B
69) D
70) D
71) D
72) E
73) E
74) B
75) E
76) C
77) E
78) C
79) C
80) A
81) A
82) C
83) A
84) D
85) A
86) B
87) B
88) E
89) A
90) B
91) C
92) E
93) D
94) B
95) D
96) D
97) E
98) C
99) D
100) A
41
Answer Key
Testname: C8

101) The three layers of the product are the core product, the actual product, and the augmented product. The core product
consists of all the benefits the product will provide for the consumer or business. The actual product is the physical
good or the delivered service that supplies the desired benefit. The augmented product is the actual product plus other
supporting features such as a warranty, credit, delivery, installation, and repair service after the sale.
102) A discontinuous innovation creates major changes in the way we live. To use a discontinuous innovation, consumers
must engage in a great amount of learning because no similar product has ever been on the market.
103) Successful new-product introductions are becoming more difficult due to the following reasons. The costs of research
and development are often so huge that firms must limit the number of new products in development. Products are
outdated faster than ever, so firms have less time to recover their research-and-development costs. With so many
products competing for limited shelf space, retailers often charge manufacturers high fees to stock a new product and
that increases manufacturers' costs even more.
104) A prototype is a physical version of a product that is often evaluated by prospective customers. Prototypes are made
during the technical development stage just prior to market testing.
105) White Wave Inc. was implementing the trial stage of the adoption of a new product when they gave potential
consumers samples of their soy milk.
106) Microsoft may have implemented the awareness and/or the interest stage, which is awareness in letting consumers
know about the Xbox and interest in how consumers may respond to what was learned by all of the actions taken by
Microsoft.
107) Capital equipment, sometimes referred to as installations, are big-ticket items and last for a number of years.
Accessory equipment refers to portable items that cost less and have a shorter life span than capital equipment.
108) Students may read this question and perhaps interpret it to mean any one of the three categories: early majority, late
majority, or laggards, depending upon the way the student presents the rationale for her/his answer to determine the
correctness of the response. The textbook defines this person as being within the late majority classification. The late
majority adopters avoid trying a new product until it is no longer risky. By that time, the product has become an
economic necessity or there is pressure from peer groups to adopt.
109) An impulse product is something people buy on the spur of the moment. With an impulse product, marketers have
two challenges. (1) Create a product or package design that is enticing and "reaches out and grabs the customer." (2)
Make sure the product is highly visible by securing prime end-aisle or checkout land space for the product.
110) Marketers must identify the target market, estimate its size, and determine how the product can be positioned to
effectively address the target market's needs.
111) Emergency products are those products purchased when there is a dire need. Because the product is needed badly and
immediately, price and sometimes the product quality may be irrelevant to the purchasing decision. Examples of
emergency products will vary with each student. Some examples could be an umbrella during a rain storm and a new
tire when one on the car just went flat.
112) A knockoff product is a new product that copies, with slight modification, the design of an original product. Firms
deliberately create knockoff products with the intent to sell to a larger or different market than consumers who would
buy the original product.
113) Consumers classified as the early majority avoid being either the first or last to try an innovation. When early adopters
purchase a product, the product is no longer considered new or different. The product has already been established
114) Marketers define innovation as anything that customers perceive as new and different.
115) Companies are likely to adopt an innovation that increases gross margins and profits. Innovations are attractive to
businesses when they are consistent with a firm's way of doing business.
116) FALSE
117) FALSE
118) TRUE
119) TRUE
120) TRUE
121) TRUE
122) FALSE
123) FALSE
42
Answer Key
Testname: C8

124) TRUE
125) FALSE
126) FALSE
127) FALSE
128) TRUE
129) TRUE
130) TRUE
131) TRUE
132) FALSE
133) TRUE
134) TRUE
135) FALSE
136) TRUE
137) FALSE
138) FALSE
139) TRUE
140) TRUE
141) Technical development was implemented during this scenario with the fast-food chain and the company's supplier.
Technical development occurs when a firm's engineers work with marketers in refining the design and production
process. The pancake was refined and redesigned to allow the new type of syrup that could be added to the pancake.
142) Compatibility is the extent to which a new product is consistent with existing cultural values, customs, and practices.
By anticipating compatibility issues early in the new-product development stage, marketing strategies can address
such problems in planning communication programs, or there may be opportunities for altering product designs to
overcome some consumer objectives. Complexity is the degree to which consumers find a new product or its use
difficult to understand. Perhaps if the consumer does not understand what a product can do or how to use it, the
product will not be purchased.
143) Favorable experiences contribute to new customers becoming loyal adopters, as their initially positive opinions result
in confirmation of the product. Even loyal customers may decide that a new product is not meeting expectations and
reject it. Some marketers feel that reselling the customer in the confirmation stage is important. In reselling, the
customer is again purchasing the product.
144) (1) A continuous innovation is a modification of an existing product. The consumer does not have to learn anything to
use a continuous innovation. (2) A dynamically continuous innovation is a pronounced modification to an existing
product that requires the consumer to engage in a modest amount of learning or a change in behavior to use. (3) A
discontinuous innovation creates major changes in the way we live. To use a discontinuous innovation, consumers
must engage in a great amount of learning because no similar product has ever been on the market.
145) A continuous innovation is a modification to an existing product that differentiates one brand from another. This
requires no learning on the part of the consumers since they already know how to drink juice.
146) Durable and nondurable goods are goods that have been classified according to how long the product lasts. Durable
goods are consumer products that last many years, such as refrigerators, computers, bedroom furniture, and cars.
Nondurable goods are consumer products that are consumed in a short term, such as a newspaper, a soda, chewing
gum, deodorant, and flea spray.
147) The disadvantages of test marketing are: high cost; the competitor gets a free and early look at the product, the
introductory price, and the intended promotional strategy; the competitor gets an opportunity to enter the market first
with a competing product. The advantages of test marketing are: by offering a new product in a limited area of the
market, marketers can evaluate and improve the marketing program; sometimes test marketing uncovers a need to
improve the product itself; test marketing may show the marketers that the new product idea will not succeed and
allows them to quit at this point--before commercialization thus avoiding future losses.

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Answer Key
Testname: C8

148) Marketers classify convenience products as either staples, impulse products, or emergency products. Staples are basic
or necessary items that are available almost everywhere. Impulse products are items people buy on the spur of the
moment. Emergency products are those products we purchase when we're in dire need, such as umbrellas during a
rain storm.
149) There are seven phases to be completed in a new product strategy. The seven phases are: idea generation, product
concept development and screening, marketing strategy development, business analysis, technical development,
marketing testing, and commercialization.
150) A product is not just a thing in a package. It includes the package, the brand name, the product benefits, and
supporting features in addition to the physical good. A product is everything a consumer receives in an exchange. This
question can also be answered in terms of the core product, the actual product, and the augmented product.

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