QUESTION 1
1. Which of the following is the best example of a new-to-the-world product?
Walmart, the retail giant, opens new stores in an underdeveloped African country.
Pestorica, a publishing company, decides to launch a new sports magazine.
Tata Motors, an Indian automobile company, acquires Jaguar to extend its business.
An Asian company licenses a U.S. apparel brand name though the brand is not familiar in Asia.
Kids-Med, a company that produces childcare products, launches a non-contact thermometer.
QUESTION 2
1. Identify the stage in the consumer adoption process in which the customer is stimulated to seek information about the innovation.
awareness
adoption
interest
evaluation
trial
QUESTION 3
1. The highest loss a project can create is called ________.
rapid prototyping income
payback income
maximum investment exposure
incremental yearly exposure
cannibalized income
QUESTION 4
1. Troma Inc., is a famous manufacturer of cookware, that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) system mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it absolutely necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.
innovator
early adopter
early majority
laggard
late majority
QUESTION 5
1. 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 ________.
skunkworks
idea funnels
research centers
stage gate systems
contextual bases
QUESTION 6
1. 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 ________.
lateral marketing
brand extension
market development
internal marketing
brand personification
QUESTION 7
1. With ________, respondents see different hypothetical offers formed by combining varying levels of the attributes, then rank the various offers.
gap level analysis
conjoint analysis
perceptual mapping
concept testing
morphological analysis
QUESTION 8
1. Relative advantage of an innovation refers to the degree to which ________.
it matches the values and experiences of the individuals
it is difficult to understand or use
it can be tried on a limited basis
it appears superior to existing products
the benefits of use are observable or describable to others
QUESTION 9
1. Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?
first entry
blunt entry
parallel entry
late entry
exchange entry
QUESTION 10
1. Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.
strategic pay off
parallel
balancing
late
compensating
QUESTION 11
1. A ________ error occurs when the company dismisses a good idea.
probability
performance
double counting
DROP
GO
QUESTION 12
1. Identify a shortcoming of giving the responsibility of new product development to the product managers of a company.
They would not be familiar with the industry standards.
Product managers would not have an operational focus.
Product managers are often busy managing existing lines.
They will find it difficult to gain support from employees.
Product managers are less likely to use participative management.
QUESTION 13
1. ________ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products.
Stage-gate systems
Skunkworks
Funnels
Opportunity spaces
Research centers
QUESTION 14
1. 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.
concept testing
perceptual mapping
gap level analysis
conjoint analysis
morphological analysis
QUESTION 15
1. Surgeons and ER nurses would be considered ________ for surgical equipment.
venture agents
internal customers
buzz agents
lead users
connectors
QUESTION 16
1. In consumer-goods market testing, the company seeks to estimate four variables. These four variables are: trial, first repeat, adoption, and ________.
guaranteed response
price sensitivity
purchase frequency
usage convenience
preferential treatment
QUESTION 17
1. ________ is a customer test that involves placing the product within the firm to see how it performs in different applications.
Beta testing
Research testing
Sales-wave testing
Alpha testing
Simulated testing
QUESTION 18
1. A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers. Later it offers the product to the customers at a discounted price and observes that not only more than seventy percent of the customers are purchasing it but the same number are also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count of the number of people purchasing the product repeatedly. Which of the following testing methods is being used here?
simulated testing
controlled testing
full test marketing
parallel testing
sales-wave research
QUESTION 19
1. Which of the following terms refers to the degree to which the innovation can be tried on a limited basis?
compatibility
relative advantage
divisibility
communicability
complexity
QUESTION 20
1. A(n) ________ is any good, service, or idea that is perceived as new, no matter how long its history.
commodity
innovation
adoption
invention
novel product