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Chapter 10 New-Product Development and Product Life-Cycle Strategies
4. A company can obtain new products through new-product development. Which of the following define(s) new products?
a. original products
b. product improvements
c. product modification
d. all of the above
(d; Moderate)
9. Your company decides to use internal sources for developing new-product ideas.
Which of the following would not be a common internal source?
a. questioning executives and professionals
b. company records and data
c. encouraging intrapreneurism
d. privileged information
(d; Moderate)
15. Top management can install a(n) _____ to direct the flow of new ideas to a central
point where they can be collected, reviewed, and evaluated.
a. idea evaluation system
b. idea management system
c. database
d. MIS
(b; Moderate)
20. JoAnn Fabrics, Inc. has just created a new combination of colors and fabric types.
The firm wants to be sure of the way consumers perceive an actual or potential product called product _____.
a. idea
b. concept
c. image
d. proposal
(c; Moderate)
24. Many firms routinely test new-product concepts with consumers before attempting
to _____.
a. commercialize them
b. turn them into actual new products
c. price them
d. create advertising and promotion
(b; Moderate) 25. After concept testing, a firm would engage in this stage in developing and marketing
a new product.
a. idea screening
b. marketing strategy development
c. business analysis
d. product development
(b; Challenging)
27. The second part of the marketing strategy statement outlines the product’s planned
price, distribution, and _____ for the first year.
a. advertising
b. promotion
c. marketing budget
d. positioning
(c; Challenging)
31. New World Releases is conducting a business analysis to determine which of the
many new songs available to management should be released. Sales must be first estimated before costs can be estimated. Which of the following did your text reco
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