D. always be the lowest priced.
16. The search for new-product ideas should be systematic rather than haphazard. One
way to ensure that the process is systematic is to install a(n):
a. product planning committee.
b. venture capital team.
C. idea management system.
d. a Delphi idea system.
17. If an organization wishes to create an innovation-oriented company culture, it should
consider the ____________ approach.
a. product planning approach
b. venture capital team
C. idea manager
d. Delphi idea system
18. ________________ is screening new-product ideas in order to spot good ideas and
drop poor ones as soon as possible.
a. Idea generation
b. Concept development and testing
C. Idea screening
d. Brainstorming
19. One reason that idea screening is a critical stage in the new-product development
process is that:
A. product-development costs rise greatly in later stages and the company only wants
Those products that can succeed.
b. competitors can quickly steal ideas so the company wants only those ideas that
can be protected with patents.
c. international competition and markets demand that all ideas be culturally sensitive.
d. the Federal government carefully monitors each company’s idea screening process
to make sure no national security matters are at stake.
20. A _______________ is an idea for a possible product that the company can see
itself offering to the market.
A. product idea
b. product image
c. product concept
d. product feature
21. A ___________________ is a detailed version of the idea stated in meaningful
consumer terms.
a. product idea
b. product image
C. product concept
d. product feature
22. A ____________________ is the way consumers perceive an actual or potential
product.
a. product idea
B. product image
c. product concept
d. product feature
23. If Toyota describes one of its cars of the future as being “a moderately priced
subcompact designed as a second family car to be used around town; the car is ideal
for running errands and visiting friends,” then the company has just stated a potential
new product in terms of a:
a. product idea.
b. product image.
C. product concept.
d. product feature.
24. Presenting new-product ideas to consumers in symbolic or physical ways to
measure their reactions occurs during which of the following stages?
a. idea generation
B. concept testing
c. marketing strategy
d. screening
25. If a kitchen cabinet designer wished to test design concepts with customers, the
designer might wish to use a _______________ program that would show the
consumer how his or her kitchen would look and work if remodeled with the
company’s products.
a. color chart
b. cartoon figure chart
C. virtual reality
d. descriptive schematic
26. Designing an initial marketing strategy for a new product based on the product
concept is called:
a. screening.
b. business analysis.
c. product development.
D. marketing strategy development.
27. The marketing strategy statement consists of three parts. All of the following would
be among those parts EXCEPT:
A. description of the production flow diagrams.
b. description of the target market.
c. the planning product positioning.
d. the sales, market share, and profit goals for the first few years.
28. The stage in the new-product development process in which the anticipated sales,
market share, and profit goals for the first few years are described is called:
a. idea generation.
B. marketing strategy development.
c. business analysis.
d. product development.
29. Sanyo intends to capture a 5-percent share of the small radio market in three years.
To achieve this, product quality will start high and be improved over time. Price will
begin low but then be raised (competition permitting). An advertising budget of
$300,000 will be rolled out over a three-year period. To successfully accomplish
its long-run goals, Sanyo should construct and then adhere to a(n):
a. image statement.