Q&A Hero

Q: List the components of the logistics function in the supply chain.

Q: List and briefly define the three basic types of channel relationships. Explain why they are described as a continuum.

Q: A retail clothing store in a small northwest Georgia community is the sole distributor of Spanx brand hosiery in the region. How does this form of market coverage benefit the retailer? How does it benefit the manufacturer?

Q: Name and briefly describe the three levels of distribution intensity. Give examples of two products that logically would be distributed at each level of intensity.

Q: What are the three factors affecting channel choice? Briefly discuss how each factor might influence a company to implement a direct channel of distribution.

Q: How has the use of supply channel management resulted in a radical reformulation of traditional marketing, production, and distribution functions?

Q: Name and briefly discuss two alternative channel arrangements that can be used to move products.

Q: Compare and contrast the channels for consumer products with the channels for business and industrial products.

Q: Intermediaries must perform three basic functions. Name these functions, and describe the activities involved in each function.

Q: One important reason channel members are included between producers and users is to increase contact efficiency. How do channel members increase contact efficiency? Use the following two scenarios to illustrate your(1) Assume there are 2,000 business students who need to buy textbooks from eight textbook publishers. How many transactions must take place? (2) Assume the first scenario, but now one campus bookstore is acting as an intermediary. Now how many transactions must take place?

Q: Channel members such as wholesalers and retailers are often included between producers and business users or consumers for three important reasons. Name and briefly describe these reasons.

Q: One important reason channel members are included between producers and end users is to overcome discrepancies. Name and briefly describe four discrepancies channel members overcome.

Q: One important reason channel members are included between producers and users is the concept of specialization and division of labor. Define these concepts and explain their roles in channels of distribution.

Q: What is a marketing channel? What type of business make up a marketing channel?

Q: NARRBEGIN: Fishy BusinessFishy BusinessDNA testing has revealed that sushi bar customers are not always getting what they pay for. Scientists at the American Museum of Natural History tested fish from 31 sushi bars and found that the tuna coveted by many diners is often a cheaper substitute, a banned fish, or an endangered species. This could be the result of an honest mistake in the supply chain, or it could be a deliberate attempt to deceive buyers. However, researchers have uncovered a DNA "˜barcode" that can accurately identify the type of fish. While still a ways off, the scientist who developed the tuna DNA barcode envisions a small device that can provide instantaneous species identification, which will result in restaurants ultimately providing what their customers are demanding and paying for.NARRENDRefer to Fishy Business. In the future, suppliers of fresh fish will be able to use electronic bar codes to verify the fish species for members of the supply chain. This information can be incorporated into the information technology used in the inventory management and control business process. This information technology is called:a. activity-based costing (ABC)b. electronic data interchange (EDI)c. benchmarkingd. materials-handling systeme. procurement

Q: NARRBEGIN: Fishy BusinessFishy BusinessDNA testing has revealed that sushi bar customers are not always getting what they pay for. Scientists at the American Museum of Natural History tested fish from 31 sushi bars and found that the tuna coveted by many diners is often a cheaper substitute, a banned fish, or an endangered species. This could be the result of an honest mistake in the supply chain, or it could be a deliberate attempt to deceive buyers. However, researchers have uncovered a DNA "˜barcode" that can accurately identify the type of fish. While still a ways off, the scientist who developed the tuna DNA barcode envisions a small device that can provide instantaneous species identification, which will result in restaurants ultimately providing what their customers are demanding and paying for.NARRENDRefer to Fishy Business. The way a restaurant coordinates and integrates the activities performed by its supply chain members into a collection of seamless end-to-end processes is an example of:a. yield managementb. channel powerc. materials handlingd. supply chain managemente. physical distribution

Q: NARRBEGIN: RedboxRedboxMovie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros, and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in- and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Wal-Mart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations.NARRENDRefer to Redbox. Production studios are potentially producing _____ among its existing distributors by allowing Redbox to rent their DVDs for $1.00.a. vertical conflictb. cognitive dissonancec. supply management divergenced. horizontal conflicte. disintermediation

Q: NARRBEGIN: RedboxRedboxMovie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros, and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in- and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Wal-Mart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations.NARRENDRefer to Redbox. Production studios distribute DVDs in grocery stores, drug stores, discount stores, entertainment stores, and vending machines like Redbox. Which level of distribution intensity does this represent?a. intensiveb. extensivec. product-focusedd. market-focusede. exclusive

Q: NARRBEGIN: RedboxRedboxMovie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros, and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in- and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Wal-Mart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations.NARRENDRefer to Redbox. Video stores that distribute DVDs usually also sell popcorn, candy, soft drinks, and entertainment publications. Basically, they overcome discrepancies of quantity and assortment by combining products into collections or assortment that consumers want available in one place. Which channel function does this describe?a. logistical functionsb. transactional functionsc. facilitating functionsd. purchasing functionse. secondary functions

Q: NARRBEGIN: RedboxRedboxMovie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros, and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in- and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Wal-Mart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations.NARRENDRefer to Redbox. Redbox offers DVDs from several production studios, such as Disney, Sony, and Paramount. Consumers just have to rent from Redbox instead of obtaining the DVD from the various production studios if they want a children's movie from Disney and an action movie from Paramount. Thus, one kiosk provides _____ for both consumers and the production studios.a. contact efficiencyb. integrationc. synergyd. distribution efficiencye. distribution intensity

Q: NARRBEGIN: RedboxRedboxMovie DVD sales represent a $16 billion market, and rentals make up another $7.5 billion. Naturally, production studios would prefer consumers purchase DVDs rather than rent them. Production studios like Twentieth-Century Fox, Warner Bros, and General Electric refused to sell new releases to Redbox, a DVD vending machine company, until almost a month after new releases arrived in stores. Redbox, the ubiquitous DVD rental red kiosks found in- and outside of convenience stores, grocery stores, drugstores, fast-food restaurants, and Wal-Mart, is cutting in on production companies' profits. These studios are tangled in lawsuits with Redbox. Sony, Paramount, and Lionsgate, on the other hand, permit distribution through Redbox, and Disney allows third-party distribution to Redbox. With more than 20,000 kiosks now in operation, Redbox ranks fifth in DVD rental revenues, which is impressive considering the rental fee is only $1.00. But Blockbuster is trying to steal vending market share by allowing NCR Corporation, known for ATM machines, to license its name to place Blockbuster Express kiosks in similar types of locations.NARRENDRefer to Redbox. Warner Bros., Blockbuster, Redbox, Wal-Mart, and third-party DVD distributors are part of a:a. distribution cooperativeb. marketing mixc. transportation channeld. marketing channele. logistics system

Q: NARRBEGIN: R.H. Kurt & SonR. H. Kurt & SonR. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels, triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many large discount stores. It carries products from 41 different manufacturers. The manufacturers whose products it carries are known for producing superior products and are leaders in their industries. In addition, Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its retailers.NARRENDRefer to R.H. Kurt. If Kurt wished to make sure its gunsmith service was profitable, it must consider:a. how it can minimize the time a customer must wait for his or her rifle to be repairedb. how the opening of hunting season will affect demand for its servicesc. how to maintain an adequate staffd. whether to ship the repaired rifle to the customer or the retailere. all of these options

Q: NARRBEGIN: R.H. Kurt & SonR. H. Kurt & SonR. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels, triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many large discount stores. It carries products from 41 different manufacturers. The manufacturers whose products it carries are known for producing superior products and are leaders in their industries. In addition, Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its retailers.NARRENDRefer to R.H. Kurt. Given the nature of the products carried by Kurt, what level of distribution intensity would be most appropriate?a. extensiveb. intensivec. reflexived. unitarye. selective

Q: NARRBEGIN: R.H. Kurt & SonR. H. Kurt & SonR. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels, triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many large discount stores. It carries products from 41 different manufacturers. The manufacturers whose products it carries are known for producing superior products and are leaders in their industries. In addition, Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its retailers.NARRENDRefer to R.H. Kurt. When Kurt solicits an order from a sporting goods store, it engages in a _____ function.a. logisticalb. functionalc. facilitatingd. customerizede. transactional

Q: NARRBEGIN: R.H. Kurt & SonR. H. Kurt & SonR. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels, triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many large discount stores. It carries products from 41 different manufacturers. The manufacturers whose products it carries are known for producing superior products and are leaders in their industries. In addition, Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its retailers.NARRENDRefer to R.H. Kurt. Customers at retail stores only want one rifle or one scope. They do not want to buy in the quantities the manufacturers need to sell. This _____ is overcome by the marketing channels.a. discrepancy of quantityb. spatial discrepancyc. discrepancy of assortmentd. discrepancy of facilitatione. discrepancy of possession

Q: NARRBEGIN: R.H. Kurt & SonR. H. Kurt & SonR. H. Kurt & Son, Inc., distributes rifles for both hunting and target shooting, rifle barrels, triggers, cleaning equipment, and reloading equipment to sporting equipment retailers and many large discount stores. It carries products from 41 different manufacturers. The manufacturers whose products it carries are known for producing superior products and are leaders in their industries. In addition, Kurt is able to repair damaged rifles through its gunsmith service, which is available to all of its retailers.NARRENDRefer to R.H. Kurt. Its marketing channel is composed of:a. the distribution, objectives, strategies, and tactics used to move products from the manufacturer to the retailerb. any organization that had a part in moving the product from the distributor to the retailerc. the functions of transportation, storage, inventory control, materials-handling, and order processingd. the 41 different manufacturers, R.H. Kurt, the retailers it serves, and their customerse. all organizations in the industry that make it possible for a consumer to buy his or her desired product

Q: Paul operates Kayak.com a company that allows customers to efficiently search company databases and find the best airline and hotel deals all over the Web. Kayak does not make bookings, but rather provides recommendations for the best travel plans. Travel providers pay Kayak a commission for most customers who click through. English wants his users to have as short and sweet an experience on Kayak as possible. Time is of the essence in responding to any customer question, especially in this day where air fare can increase dramatically in just a couple of hours. Paul is devoted to:a. improving delivery serviceb. maximizing queuesc. reducing discrepancies of assortmentd. reducing wait timee. managing service capacity

Q: Which of the following is a main area of concern for service distribution? a. minimizing wait times b. maximizing sales c. creating a one-to-one relationship with customers d. providing easy to use Internet help e. reducing risk

Q: You are responsible for physical distribution of your company's service and should focus on: a. ensuring the intangibility of the service so that physical distribution becomes a less important factor b. minimizing wait times, managing service capacity, and providing delivery through distribution channels c. making sure production and consumption are simultaneous d. setting quality standards, choosing faster transportation modes, and using safety stock e. customer-oriented order processing and inventory control

Q: Which of the following businesses is most likely to have a problem with distribution because production and consumption of the product occurs simultaneously? a. a company that manufacturers bicycles b. a hair salon c. a retailer that sells mattresses d. a soft-drink bottler e. a wholesaler that specializes in athletic equipment

Q: One thing that sets service distribution apart from traditional manufacturing distribution is that in a service environment: a. production and consumption are simultaneous b. production setbacks can be remedied by using safety stock c. faster modes of transportation can offset service production problems d. service distribution benefits are more tangible e. service distribution has a narrower focus

Q: It seems counterintuitive, but Jon Jordan, CEO of Southern Audio Services (SAS) in Baton Rouge, wants to curb the number of dealers who are selling his car speakers. Jordan understands that he can't handpick all his vendors, but he never expected the rise in unauthorized dealers that came with the e-commerce boom. When Jordan decided to look for the SAS name on eBay, he came up thousands of sellers. These eBay sellers are engaging in: a. black marketing b. channel malfeasance c. countertrading d. reverse channeling e. gray marketing

Q: Many large champagne sellers do their own importing and desire to maintain independent price points in different markets. Thus, a bottle of champagne might cost $45 in the United States while the same bottle might be only 20 euros (about $30) in France. It is often profitable to buy the wine in Europe, typically from an unauthorized distributor, and resell it in the United States. U.S. wine merchants who do so would be engaging in: a. black marketing b. channel malfeasance c. countertrading d. reverse channeling e. gray marketing

Q: _____ occurs when products are distributed through unauthorized marketing channels. a. Black marketing b. Countertrading c. Channel malfeasance d. Gray marketing e. Reverse channeling

Q: _____ is the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage. a. Selective partnering b. Direct distribution c. Channel partnering d. Intensive integration e. Closed channel distribution

Q: Polo brand apparel can be purchased through fine department stores nationwide. However, Polo apparel can also be purchased through Polo stores, which creates the potential for _____ conflict in the channel of distribution. a. primary b. secondary c. horizontal d. vertical e. parallel

Q: Channel conflict that occurs between different levels in a marketing channel is referred to as: a. horizontal conflict b. primary conflict c. vertical conflict d. secondary conflict e. parallel conflict

Q: Goodyear tire dealers were hurt financially when Goodyear made the decision to distribute its tires through retailers such as Sears and Wal-Mart in addition to the exclusive dealerships it had established. The conflict that occurred at the retail level is an example of: a. horizontal conflict b. trade loading c. value-added pricing d. exclusive distribution e. channel partnering

Q: Horizontal channel conflict occurs most often when manufacturers practice: a. dual or multiple distribution b. trade loading c. promotional pricing d. direct distribution e. channel distribution

Q: Channel conflict that occurs among channel members on the same level is known as: a. primary conflict b. organic conflict c. internal conflict d. horizontal conflict e. vertical conflict

Q: Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB) games online at MLB.com. That business is worth more than $100 million to MLB. But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games. Which of the following is likely to occur between MLB and broadcast television? a. horizontal market share b. lateral channel takeover c. niche market conflict d. channel conflict e. market share conflict

Q: Channel conflict: a. always has an adverse effect on the members of the channel b. is not caused by ideological differences because such differences would prevent the members from ever operating as a channel c. is often caused by an inability of some channel members to keep up with the changing times d. can appear as either internal or external e. does not occur when multiple distribution channels are used

Q: Honda uses just-in-time manufacturing to build its Odyssey minivans. Five companies that make component parts for the Honda Odyssey relocated to Alabama and states bordering Alabama when Honda announced plans to build a new Odyssey manufacturing plant in Alabama. This relocation in order to provide efficient delivery of goods indicates Honda is a: a. channel captain b. horizontal integrator c. distribution champion d. distribution ombudsman e. demand maverick

Q: A(n) _____ typically entails showing members of the product's target market advertising and other promotional materials for several products, including the test product. These people are then taken to a mock or real store where their purchases are recorded. a. adoption-rate test b. real test market c. concept test d. simulated (laboratory) market test e. consumer juried test

Q: When selecting a test market city, a researcher should look for a city:a. where the demographics and purchasing habits mirror the overall market for the productb. that has media spillover from other cities to increase media alternativesc. that is as large as possibled. that has limited distributione. where there is no competition

Q: _____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. a. Use testing b. Test marketing c. Concept testing d. Laboratory testing e. Discontinuous innovation

Q: Which of the following statements about simultaneous product development is true?a. Simultaneous product development refers to the practice of developing multiple new products at the same time.b. With simultaneous product development, all relevant functional areas and outside suppliers participate in all stages of the new-product development process.c. All departments within the company work together at the same time, but to maintain a high level of secrecy, no one outside the company is involved in simultaneous product development.d. Simultaneous product development actually increases the length of time it takes to get a product to market and the time the product will stay in the growth stage of its product life cycle.e. All of these statements about simultaneous product development are true.

Q: A team-oriented approach to new-product development is referred to as: a. simultaneous product development b. synergistic product development c. commercialized product development d. synchronized product development e. parallel product development

Q: In the _____ stage of new-product development, the technical feasibility of manufacturing the new product is examined as a prototype is produced. a. screening b. development c. market testing d. concept testing e. business analysis

Q: Middleton has developed the Flybar 1200, an extreme pogo stick that propels users more than five feet into the air. During the _____ stage of its new-product development process, a group was assigned the task of estimating preliminary demand for the product, costs (including issues with liability), sales, and future profitability. a. business analysis b. idea generation c. concept testing d. screening e. test marketing

Q: In the _____ stage of new-product development, preliminary demand, cost, sales, and profitability estimates are made. a. prototype screening b. idea generation c. concept testing d. post-brainstorming e. business analysis

Q: After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created, the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers. The consumer group was asked to evaluate the three product ideas in terms of their marketability. This stage of new-product development is called: a. prototype screening b. concept testing c. market testing d. idea manipulation e. idea diffusing

Q: _____ evaluate new-product ideas usually before any prototype has been created. a. Concept tests b. Simulated market tests c. Market tests d. User tests e. Venture analyses

Q: The screening and concept testing stage of the new-product development process is used to: a. eliminate undesirable ideas and predict consumer acceptance b. refine the promotion campaign to be used with the new product c. determine the potential profits to be gained from the new product d. determine how long the test market should be run e. generate new-product ideas

Q: A European dairy, which is famous for its rich ice creams, has introduced basil, tomato, fennel, and oregano flavored ice creams. In the process of developing these new flavors, the dairy surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of marketability. This survey would have happened during which stage of the product development process? a. concept testing b. brainstorming c. basic research d. idea screening e. applied research

Q: Top managers at a commercial real estate firm that specializes in site location and installation of cellphone towers considered providing the same service for windmill location and installation but decided this was not within the company's corporate mission. Which stage of the new-product development process did its new-product development process reach? a. development b. idea generation c. idea screening d. business analysis e. customer testing

Q: After the research team at Nabisco had generated more than two dozen new-product ideas for a substitute for partially hydrogenated oils that tastes the same but has zero trans fat, the company formed a committee to analyze whether the product ideas were consistent with the organization's new-product strategy. This is called: a. business analysis b. diffusion c. idea screening d. test marketing e. idea generation

Q: At what stage of the new-product development process are most new-product ideas rejected? a. test marketing b. diffusion c. business analysis d. idea screening e. idea generation

Q: Which of the following stages of the new-product development process is the first filter in the new-product development process and serves to eliminate new-product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason? a. applied diffusion b. introductory diffusion c. business analysis d. test marketing e. idea screening

Q: The same manufacturer produces Hanes, Playtex, and Bali clothing for women. This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas, such as jewelry, wide shoes, and belts. The manufacturer used a research technique called a: a. focus group b. brainstorming session c. buying center d. product-review committee e. venture team

Q: Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates. The week after the compound was invented, a group of the firm's employees got together and listed ways the product might be used. This is an example of: a. focusing grouping b. brainstorming c. concept testing d. venture group activities e. screening

Q: _____ is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas. a. New-product brain dumping b. Screening c. A focus-group interview d. Brainstorming e. Diffusion

Q: The process of converting applications for new technologies into marketable products is called: a. basic research b. product modification c. marketing development d. product development e. correlation analysis

Q: A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise. Which of the following is a potential source of new-product ideas that would allow it to compete more effectively?a. current retailers who carry the manufacturer's equipmentb. its foreign competitorsc. the company's employeesd. customers who have requested its catalogse. all of these

Q: Which of the following is the LEAST likely source for new-product ideas? a. a company's distributors b. its customers c. its employees d. its financial lenders e. its competitors

Q: A new-product strategy: a. links the new-product development process with the objectives of the marketing department, the business unit, and the corporation b. is part of an organization's overall marketing strategy c. specifies the roles new products play in the organization's overall plans d. describes the characteristics of products the organization wants to offer and the markets it wants to serve e. is accurately described by all of these

Q: A(n) _____ links the new-product development process with the objectives of the marketing department, business unit, and corporation. a. product-review committee b. concept test c. episodic innovation d. new-product strategy e. product strategy bridge

Q: The first stage of the new-product development process is: a. screening and concept testing b. establishing the new-product strategy c. exploring opportunities d. developing a business analysis e. the building of a prototype

Q: Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT: a. establish an environment conducive to achieving new-product objectives b. make the long-term commitment needed to support innovation and new-product development c. capitalize on experience to achieve and maintain competitive advantage d. use a company-specific approach that is driven by corporate objectives and strategies with a well-defined new-product strategy at its core e. introduce ten new products every year

Q: _____ occurs when an existing product is targeted toward new market segments. It is another type of new-product development because the product is new to that segment. a. Brainstorming b. Diffusing c. Repositioning d. Screening e. Reciprocity

Q: When Apple Inc. recently introduced the new version of it's iPhone 3G, it was twice as fast, and cost one half the price of the original iPhone. Since it was not trying to reach a new target market, Apple Inc. was using which new product strategy? a. improved product b. addition to an existing product line c. discontinuous innovation d. repositioned product e. new product line

Q: For years, Diet Dr. Pepper has been considered a diet drink. After declining sales, the company is attempting to present Diet Dr. Pepper as an alternative to having a dessert. This is an example of a _____ strategy. a. discontinuous innovation b. niche c. new-product-line d. retargeting e. repositioning

Q: Victorinex has long manufactured Swiss Army knives and developed a line of upscale Swiss Army watches. The Swiss Army brand gave the company credibility over other watch manufacturers and allowed the company to continue targeting sports-minded males between the ages of 18 and 35. Victorinex used which strategy to create new products? a. new-to-the-world product b. new product line c. repositioned product d. addition to a current product line e. discontinuous innovation

Q: Oakley, a manufacturer of protective eyewear for various kinds of sports, has introduced sunglasses that play music. The glasses weigh just a few ounces and can hold up to 120 songs. These sunglasses would be an example of a(n): a. repositioning strategy b. new product line c. addition to an existing product line d. discontinuous innovation e. revision to existing products

Q: When Procter & Gamble wanted to enter the hair care market, it purchased Wella, a leading German company specializing in hair care products. What new product category does this acquisition represent for P&G? a. repositioning strategy b. new product line c. addition to an existing product line d. discontinuous innovation e. revision to existing products

Q: Heinz is expected to introduce more than 400 new products in the next two years. One of the products is a spicier ketchup aimed at the baby boomer market. The spicier ketchup would be considered what type of new product? a. discontinuous innovation b. new-to-market c. new product line d. lower-priced products e. addition to existing product line

Q: When Glade brand air freshener began marketing a clean linen-scented air spray, this represents which new product category? a. repositioning strategy b. new product line c. addition to an existing product line d. discontinuous innovation e. revision to existing products

Q: Sony has developed a wireless speaker that sits unobtrusively on a desktop. The tiny, yet strong twin speakers use Bluetooth to stream music directly from your PC or MP3 player. This small Sony wireless speaker, which is radically different from anything currently on the market, would be classified as a(n): a. discontinuous innovation b. slow-diffusing product c. episodic innovation d. venture product e. sporadic innovation

Q: New-to-the-world products, where the product category itself is new, are also called: a. discontinuous innovations b. moderate innovations c. slow-diffusing products d. venture products e. creative offerings

Q: Marketers consider all of the following examples of new products EXCEPT: a. a 2010 model year automobile with the same style, parts, and color as the 2009 model b. the addition of a management consultant service to a company that once specialized in investment management c. a new design for Reach brand toothbrushes d. a new flavor of Ben & Jerry's brand ice cream e. the development of a less-painful procedure for the treatment of varicose veins