Name:______________________________________ Course/Yr.

_____________________________

Score:_______________

Part 2. Multiple Choices: Read the questions carefully. Write the letter of your answer on the blank space provided on the left.
_____1. Which of the following would be a key success factor in developing new products?
a. a well-defined product concept
c. a product priced well below market or industry standards
b. a product that appeals to the late majority
d. a product that can be sold over the Internet with a minimum of explanation
_____2. To create successful new products, a company must understand consumers, markets, and competitors and:
a. develop a great advertising campaign.
c. adopt a push rather than pull promotional concept
b. have a strong Web site to push the product.
d. develop products that deliver superior value to consumers.
_____3. Which of the following best describes the first stage of the new-product development
process?
a. idea screening
c. idea generation
b. concept development and testing
d. business analysis
_____4. The systematic search for new-product ideas is characteristic of which stage in the
new-product development process?
a. idea screening
c. idea generation
b. concept development and testing
d. business analysis
_____5. After idea generation has occurred in the new-product development process, the
next stage is most likely to be:
a. ideation.
c. concept development and testing.
b. idea screening.
d. test marketing.
_____6. According to the text, all of the following are thought to be sources of new-product
ideas EXCEPT:
a. internal sources.
c. competitors.
b. customers.
d. the local library.
_____7. 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.
c. product concept.
b. product image.
d. product feature.
_____8. 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
c. marketing strategy
b. concept testing
d. screening
_____9. Designing an initial marketing strategy for a new product based on the product
concept is called:
a. screening.
c. product development.
b. business analysis.
d. marketing strategy development.
_____10. 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.
c. business analysis.
b. marketing strategy development.
d. product development.
_____11. When a company reviews sales, costs, and profit projections for a new product to find
out whether these factors satisfy the companys objectives, they are in which of the
following new-product development stages?
a. concept development and testing
c. business analysis
b. commercialization
d. marketing strategy development
_____12. Looking at the sales history of similar products and surveying market opinion are
tools used at which stage in the new-product development process?
a. concept development and testing
c. business analysis
b. commercialization
d. marketing strategy development
_____13. A company is in the ______________ stage of the new-product development process
when the company develops the product concept into a physical product in order to
assure that the product idea can be turned into a workable product.
a. product development
c. marketing strategy
b. commercialization
d. business analysis
_____14. If a company wishes to test its positioning strategy, advertising, distribution, pricing,
branding and packaging, and budget levels, it can do so during which of the following
stages of the new-product development process?
a. commercialization
c. product development

b. test marketing

d. marketing strategy development