Yale-university introductory-economics chapter-11-questions-wsoln

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Walden University **We aren't endorsed by this school
Course
CS 147
Subject
Business
Date
Nov 11, 2023
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56
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03/07/2023, 08:44 about:blank Chapter 11 Questions w:soln Chapter 11—Developing and Managing Products TRUE/FALSE 1. One advantage for being first on the market with a new product is increased product loyalty. ANS: T PTS: 1 REF: 383 OBJ: 11-1 TOP: AACSB Reflective Thinking KEY: CB&E Model Product | CB&E Model Strategy MSC: BLOOMS Level I Comprehension 2. A product must be a discontinuous innovation to be considered a "new" product. ANS: F There are six categories of new products, only one of which is new-to-the-world discontinuous innovative products. PTS: 1 REF: 384-385 OBJ: 11-1 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level I Comprehension 3. The development of Coke Zero by Coca-Cola would not be considered a new product since the company was already making soft drinks. It would simply be called a line extension. ANS: F Line extensions are considered to be a type of new product. PTS: 1 REF: 385 OBJ: 11-1 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level III Application 4. Central Bark is a dog day care center. When you check your dog into a Central Bark you know your pooch will be pampered. Since kennels have been boarding dogs for years, the dog day care is not really a new product. ANS: F There are many types of new product ranging from new-to-the-world products to low-price products. PTS: 1 REF: 385 OBJ: 11-1 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level III Application 5. Very few firms follow a formal new-product development process. ANS: F Most companies follow a formal new-product development process. PTS: 1 REF: 386 OBIJ: 112 TOP: AACSB Reflective Thinking 1/56
03/07/2023, 08:44 about:blank Chapter 11 Questions w:soln KEY: CB&E Model Product MSC: BLOOMS Level I Comprehension 6. A firm's new-product strategy links the new-product development process with the objectives of the marketing departments, the business unit, and the corporation. ANS: T PTS: 1 REF: 386 OBJ: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product | CB&E Model Strategy MSC: BLOOMS Level II Comprehension 7. For a firm that adheres to the product concept, the logical place to start generating new-product ideas is with the customers of the firm. ANS: F Firms adhering the marketing concept—not the product concent—logically start generating new- product ideas from customers. PTS: 1 REF: 387 OBJ: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level I Comprehension 8. The two techniques that are considered most useful for generating new-product ideas are customer-generation and competitive imitation. ANS: F The two techniques considered most useful for generating new-product ideas are brainstorming and focus groups. PTS: 1 REF: 388 OBJ: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level I Comprehension 9. Seven employees from a company are trying to come up with ideas for new- product development. The employees are all in a room together, shouting out potential ideas. The ideas are written down and evaluated as they are generated. This is an example of brainstorming. ANS: F Brainstorming does not involve evaluation of the ideas as they are generated, criticism of any kind is avoided. PTS: 1 REF: 388 OBI: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level III Application 10. The first filter in the product development process is called screening. ANS: T PTS: 1 REF: 389 OBJ: 11-2 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level I Knowledge 11. It is considered inefficient to use concept tests during the idea screening stage of the new-product development process. 2/56
03/07/2023, 08:44 about:blank Chapter 11 Questions w:soln ANS: F During the idea screening stage of the new-product development process, it is appropriate to use concept tests. PTS: 1 REF: 389 OBJ: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level I Comprehension 12. Concept tests are considered fairly good predictors of success for line extensions and for products that do not require major changes in consumer behavior. ANS: T PTS: 1 REF: 389 OBIJ: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level II Comprehension 13, Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game. This firm is engaged in a new-product business analysis. ANS: T PTS: 1 REF: 389 OBJ: 11-2 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level IIT Application 14. Without the Internet, it would be impossible to conduct simultaneous product development from different parts of the world. ANS: T PTS: 1 REF: 392 OBJ: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product | CB&E Model International Perspective MSC: BLOOMS Level II Comprehension 15. A test market is one example of a focus group where consumers are encouraged to try a new product and provide feedback to the manufacturer. ANS: F A test market is not a focus group. PTS: 1 REF: 393 OBJ: 11-2 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level I Knowledge 16. One benefit of test marketing is that the marketing activity is shielded from competitors. ANS: F Test marketing may result in a serious problem if a firm's competitors find out about the new product before it has been fully introduced. PTS: 1 REF: 393-394 OBJ: 112 TOP: AACSB Reflective Thinking KEY: CB&E Model Product MSC: BLOOMS Level I Comprehension 17. The Internet offers a fast, cost-effective way to conduct test marketing. 3/56
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