Marketing 351

MULTIPLE CHOICE

1. Being first on the market with a new product has a number of advantages, including all the following EXCEPT:

a. | increased sales through longer sales life |

b. | immediate profit |

c. | more resale opportunities |

d. | increased product loyalty |

e. | greater market responsiveness |

ANS: B

First on the market brings the potential advantage of increased margins, but it does not bring immediate profit.

PTS: 1 REF: 361 OBJ: 11-1 TYPE: App

TOP: AACSB Reflective Thinking | TB&E Model Product

2. Which of the following would be considered a new product?

a. | new product lines |

b. | new-to-the-world product |

c. | addition to existing product lines |

d. | improvements or revisions to existing products |

e. | all of these choice |

ANS: E

A new product is a product new to the world, the market, the producer, the seller, or some combination of these, and there are six categories of new products.

PTS: 1 REF: 361-362 OBJ: 11-1 TYPE: Comp

TOP: AACSB Reflective Thinking | TB&E Model Product

3. 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 |

ANS: A

These products create an entirely new market.

PTS: 1 REF: 167 OBJ: 11-1 TYPE: Def

TOP: AACSB Reflective Thinking | TB&E Model Product

4. 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...