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Q:
To test its new product, Reliway Inc. choose three cities to sell the product and three cities very similar to the first group where the product was not sold. All six cities were watched closely, and the stocking and sales of the new product were audited using the InfoScan system. This method helped the company fine-tune its sales plans. Identify the market testing method illustrated in this scenario.
A. Test marketing
B. Informal selling
C. Simulated test market
D. Speculative sale
Q:
Which of the following tests all market variables, including competition and the trade?
A. Test marketing
B. Concept testing
C. Speculative sales
D. Visionary shopper
Q:
Which of the following statements is true of test marketing?
A. It is drastically replacing rollouts as a popular testing method.
B. It is a type of pseudo sale market testing method.
C. It is intended to offer simulated, controlled market conditions.
D. It is too expensive to be used as a final exam.
Q:
Identify the method of market testing which is most likely to make use of a rollout.
A. Controlled sale
B. Pseudo sale
C. Full sale
D. Trial sale
Q:
Controlled-distribution scanner markets are based on scanner technology and have received much attention in the _____ field.
A. industrial services
B. consumer packaged goods
C. consumer services
D. industrial goods
Q:
Merva Cosmetics Inc. primarily sells its products by mailing catalogs to consumers. The company tests its new product lines by simply listing them in some of its catalogs and counting the orders. Identify the market testing method being used by Merva Cosmetics.
A. Minimarketing
B. Rollout by influence
C. Direct marketing
D. Speculative sale
Q:
Identify the controlled sale market testing method that involves distributors and retailers or dealers in the process.
A. Direct marketing
B. Simulated test marketing
C. Informal selling
D. Minimarketing
Q:
Which of the following is a controlled sale market testing method that involves real purchasing under some real competitive environment?
A. Concept testing
B. Direct marketing
C. Speculative sale
D. Simulated test market
Q:
As a method of market testing, which of the following is an advantage minimarket testing provides over test marketing?
A. Minimarket testing allows for greater flexibility in changing price and other variables of a new product when compared to test marketing.
B. Minimarket testing is free from retailer/distributor stocking problem, whereas test marketing is not.
C. Minimarket testing can be used for industrial goods and services, whereas test marketing cannot.
D. Minimarket testing involves laboratory experiments that do not require customers to make cash purchases, whereas test marketing results in a risk to customers.
Q:
Before launching its new breakfast cereal, Wish Foods Inc., decided to test the product in the market. The new products team decided to sell the cereal on a small scale in two major outlets of FourMart Inc., a retail departmental store. This technique of market testing would help create an actual buying situation and allow for flexibility in changing the product's price and other variables. Which of the following market testing methods does this scenario best illustrate?
A. Direct marketing
B. Speculative sale
C. Minimarketing
D. Visionary shopper
Q:
Why is informal selling highly suitable for industrial selling?
A. Because informal selling involves retailers or distributors in the process of testing a new product
B. Because informal selling involves no risk for industrial customers, as sales takes place without actually laying out money
C. Because industrial selling is based on clearly identifiable product features, and informal selling results in real purchasing
D. Because informal selling creates a false buying situation and observes what industrial customers do
Q:
Which of the following statements is true of informal selling as a method of market testing?
A. The presentations in the informal selling method are for real, and cash sales take place.
B. The method involves asking customers if they would buy the product rather than directly asking them to buy the product.
C. The method is ineffective for products sold primarily by salespeople directly to end users.
D. The techniques used in the informal selling method are not feasible for industrial selling.
Q:
Minimarket testing is a _____ method.
A. pseudo sale
B. controlled sale
C. full sale
D. speculative sale
Q:
Which of the following methods of market testing fall under the category of controlled sale?
A. Test marketing
B. Speculative sale
C. Direct marketing
D. Simulated test market
Q:
The primary role of simulated test marketing in A-T-A-R forecasting is to:
A. help assess the competition in an industry.
B. create brand awareness for an existing product in a new market.
C. help evaluate if there is a customer gap created from using a product.
D. provide estimates of trial and repeat purchasing for a new product.
Q:
Which of the following methods of market testing was a spinout from concept testing and comes very early in the new product development process?
A. Speculative sale
B. Rollout by trade channel
C. Direct marketing
D. Simulated test marketing
Q:
Which of the following statements is true of the speculative sale method of market testing?
A. It does not involve advertising.
B. It does not fit in a situation where a completely new product type has to be tested.
C. It is best used for projects with very high risk.
D. It creates an actual buying situation and observes what the consumers do.
Q:
_____ is a virtual market testing technique, in which a respondent is brought into a virtual retail store environment and encouraged to look around, take products off the shelf and read the label, and make purchases.
A. Minimarketing
B. Visionary shopper
C. Rollout by application
D. Direct marketing
Q:
Which of the following types of market testing relies upon asking potential customers if they would buy the product if the product were actually available, but does not require them to spend money or take a risk?
A. Pseudo sale
B. Direct marketing
C. Full sale
D. Minimarketing
Q:
May Safe Solutions (MSS) Inc. is on the verge of launching a new security alarm systems for homes. Before the commercialization of the product, the marketing team of the company contacts a few customers, describes the product to them, answers queries on its functioning, negotiates price, and then asks the customers if they would actually buy the product if it was available in the market. Which of the following methods of market testing is MSS Inc. applying in this scenario?
A. Minimarketing
B. Controlled sale
C. Test marketing
D. Speculative sale
Q:
Under which of the following situations will market testing be quick, if at all it takes place?
A. When competitors can take retaliatory action that will hurt a company launching a new product
B. When a new product requires huge capital investments
C. When a company is planning to enter into an entirely new industry by launching a new product
D. When the success of a company's sales promotion plan relies heavily on perfect execution
Q:
Identify the situation that most likely requires a company to conduct market testing on its new product.
A. The company's sales promotion plan does not depend on perfect execution.
B. The company's capital investments in the new product are high.
C. The company knows the business well and has been successful there.
D. The sales and revenue forecasts for the new product are conservative.
Q:
Which of the following causes for new product failure does concept testing cover?
A. If there is a lack of need for the product
B. If the product does not meet the consumer needs
C. If the product is marketed poorly
D. If existing infrastructure cannot be used to produce the product
Q:
Which of the following is the strongest argument for conducting market testing as late as possible?
A. It has least risk from competitors.
B. It is more useful and more reliable.
C. It minimizes costs.
D. It speeds up the market entry.
Q:
In the new products process, market testing should typically be carried out:
A. in the concept stage as the idea needs to be tested for practicality.
B. before the project evaluation stage begins.
C. as soon as techniques that will tell us what we need to know are found.
D. once the ideation phase begins.
Q:
Which of the following statements is NOT true of market testing?
A. There is a growing trend toward quicker, less costly market testing methods.
B. Test marketing is now a relatively minor market testing technique.
C. Test marketing is replacing scanner-based methods of market testing.
D. Many firms have replaced the traditional test market with a product rollout.
Q:
Full sale market testing methods fail to test the realities of new products' national introduction.
Q:
InfoScan by itself is a method of market testing.
Q:
The advantages of using direct marketing as a market testing method include secrecy, quick feedback, low cost, and database support.
Q:
Distributors and retailers/dealers are essentially avoided in informal selling.
Q:
In informal selling methods people are asked if they would buy a new product, but in speculative sale method people are asked to buy the product.
Q:
Speculative sale method for market testing can be used in situations where industrial firms have very close downstream relationships with key buyers.
Q:
The speculative sale method for market testing involves using each retail store as a mini-city or mini-market to speculate revenue and sales.
Q:
The simulated test market (STM) method for market testing can be effectively used for products that are sold predominantly by personal selling or point-of-purchase promotion.
Q:
The speculative sale method is best used for conducting market testing for consumer packaged goods.
Q:
Pseudo sale is a more vigorous method of market testing than the controlled sale, and much more revealing.
Q:
The marketplace may not be good for market testing, especially in the case of global launches.
Q:
Market testing can be skipped if a company knows a business well and has been successful there.
Q:
The longer we wait to test a product, the lesser we will know about the product and its marketing program.
Q:
Market testing for a new product should begin as soon as a technique can be found that will tell us what we need to know.
Q:
Market testing and test marketing are synonymous.
Q:
What are the various new product price strategies available to a firm?
Q:
Discuss the tactics used for launching a product with low relative advantage and low compatibility with buyers' experiences.
Q:
What consequences will a firm face if the timing of a new product's launch is wrong?
Q:
What does a lean launch system mean? What are its advantages?
Q:
Describe three common patterns for new product launch strategies and tactics.
Q:
If a firm's target market customers do a serious trial on a new product, and if the firm has previously been assured from the product use test that people would like it, _____ is virtually assured.
A. market leadership
B. repeat buying
C. high customer switching
D. low incremental advantage
Q:
Which of the following best describes the pricing strategy "meet the market"?
A. A very high price, intended to stay that way, with clear product differentiation.
B. A price that is clearly low and designed to buy one's way into the market.
C. A price that takes price out of the market play as much as possible.
D. A price clearly above the market that is appropriate to a differentiated product.
Q:
_____ refers to a price clearly above the market, but appropriate to a differentiated product, nonthreatening to competition, and with room for some price manipulations.
A. Premium
B. Penetration
C. Skim
D. Meet the market
Q:
Which of the following pricing strategies for products involves a very high price, intended to stay that way, with clear product differentiation?
A. Premium pricing
B. Predatory pricing
C. Penetration pricing
D. Meet the market pricing
Q:
Products that are clearly superior on attributes that buyers consider important have:
A. low relative advantage and low compatibility with buyers' experiences.
B. high relative advantage and low compatibility with buyers' experiences.
C. high relative advantage and high compatibility with buyers' experiences.
D. low relative advantage and high compatibility with buyers' experiences.
Q:
Which of the following types of promotion is typically used for a product with low relative advantage and high compatibility with buyers' experiences?
A. Risk-based promotion
B. Awareness-based promotion
C. Reseller-based promotion
D. Usage-based promotion
Q:
Skimming pricing is best recommended for products having:
A. low relative advantage and low compatibility with buyers' experiences.
B. high relative advantage and high compatibility with buyers' experiences.
C. high relative advantage and low compatibility with buyers' experiences.
D. low relative advantage and high compatibility with buyers' experiences.
Q:
Which of the following promotional launch tactics is most likely to be used by a firm if product advantages must be learned through usage and experience?
A. Advertising
B. Sampling
C. Skimming pricing
D. Publicity
Q:
For products with low relative advantage and high compatibility with buyers' experiences:
A. risk-based promotions work well.
B. broad product assortments are suitable.
C. intensive distribution makes sense.
D. preannouncements before entry are necessary.
Q:
While launching a product with low relative advantage and low compatibility with buyers' experiences, the:
A. older product should not be deleted from the market quickly.
B. product promotion should be information based.
C. price of the product should be above the market.
D. distribution of the product should be highly selective.
Q:
For products with high relative advantage and low compatibility with buyers' experiences:
A. narrow product assortments may be useful.
B. risk-based promotions will be necessary.
C. preannouncements before entry may be necessary to warn prospects.
D. intensive product distribution makes sense.
Q:
Under which of the following categories do novelty products and service products fall?
A. Low relative advantage and low compatibility with buyers' experiences
B. High relative advantage and high compatibility with buyers' experiences
C. High relative advantage and low compatibility with buyers' experiences
D. Low relative advantage and high compatibility with buyers' experiences
Q:
Which of the following new product characteristics probably has the greatest influence on trial rates?
A. Relative advantage
B. Complexity
C. Divisibility
D. Communicability
Q:
A buyer gathering the trial experience of others for a new product, but without the use of electronic setups is an example of a _____.
A. personal trial
B. vicarious trial
C. firsthand trial
D. direct trial
Q:
The trial phase in the adoption of a new product:
A. involves large scale usage of the product.
B. occurs before the awareness phase.
C. permits customers to verify claims about the product.
D. involves no cost for both the firm and the customers.
Q:
Large, powerful retailers often sell their scarce shelf space by charging manufacturers _____.
A. slotting allowances
B. opportunity costs
C. octroi fees
D. social costs
Q:
Resellers' views are represented in the product development process by experienced salespeople like sales managers and _____.
A. trade creditors
B. category captains
C. internal auditors
D. trade relations directors
Q:
Which of the following is true of a reseller?
A. They help firms in pulling a new product up the distribution channel.
B. They do a small volume of business in a standardized way with a large margin.
C. They should ideally be isolated from the product development process.
D. They are required to prepare for promotion by training salespeople and service people.
Q:
In most cases, the first step toward adoption of a new product is _____.
A. availability
B. testing
C. trial
D. awareness
Q:
When technical departments in firms form ties with universities, government units, private research centers, and even competitors to access what they need, it is referred to as _____.
A. strategic alliances
B. cartel arrangements
C. usury agreements
D. portfolio networks
Q:
A(n) _____ is the workhorse of most new product introductions.
A. salesperson
B. internal auditor
C. creditor
D. advertising person
Q:
Which of the following statements is true of salespeople?
A. In customer-based sales organizations, salespeople are required to aggressively use hard-sell pushing.
B. For services, is apt to isolate the new product developer from the salespeople.
C. For consumer packaged goods, salespeople are usually not involved in the new product development early on.
D. Salespeople are usually given reduced territories when asked to sell a new product.
Q:
A(n) _____ conveys information about the targeted market segment, product positioning strategy, and communications mix among many other points to an advertising person.
A. portfolio statement
B. copy strategy statement
C. expected effects matrix
D. organization chart
Q:
_____ is the term most widely used to cover all of the information and attitude effort put into changing end-user perceptions.
A. Beachhead
B. Vaporware
C. Communications
D. Rollout
Q:
In terms of launch tactics, pharmaceutical firms are most likely to put the bulk of their money into:
A. advertising.
B. personal selling.
C. technical research.
D. manufacturing process development.
Q:
In the context of a lean launch, which of the following best describes time postponement?
A. Deploy inventory as late as possible
B. Lock in product design as late as possible
C. Lock in product identity as late as possible
D. Delay the announcement of a new product as late as possible
Q:
Firms attempting to increase penetration in existing markets are most likely to be emphasizing:
A. defensive additions.
B. offensive improvements.
C. deletion of existing products.
D. launch of new-to-the-world products.
Q:
When a firm plans to launch an innovative new product, the launch strategies and tactics would include:
A. using existing distribution channels.
B. selling at extremely low prices.
C. focusing on creating exit barriers.
D. creating a broad product assortment.
Q:
How is preannouncement of a new product related to the competitiveness of an industry?
A. The degree of preannouncement decreases when the competitiveness in the industry is high.
B. The degree of preannouncement increases when the competitiveness in the industry is high.
C. The degree of preannouncement remains the same, irrespective of the level of competitiveness in the industry.
D. The degree of preannouncement first increases and then decreases with industry competitiveness.
Q:
Direct network externalities exist if product sales are dependent on:
A. sales of complementary products.
B. sales of competitive products.
C. the number of people that have adopted the product.
D. the primary demand for other older products.
Q:
If product sales are dependent on sales of complementary products, _____ exists.
A. virtual network externalities
B. explicit network externalities
C. social network externalities
D. indirect network externalities
Q:
Before the commercialization of a new product, the sales force of Seriv Corporation plans to give its suppliers a hint that a new product or an advanced version of an existing product is going to be launched by the end of the year. The firm's action can be seen as an example of _____.
A. signaling
B. corporate espionage
C. beachheading
D. whistleblowing
Q:
Five Works Inc. preannounces the release of its computer software, but the product is never launched in the market. This is an example of _____.
A. a market rollout
B. vaporware
C. stocklifting
D. a lean launch
Q:
Training of sales and other promotional people, building service capability, putting out preannouncements if they are in order, and arranging for stocking of a new product at the reseller level takes place during the _____ of a launch cycle.
A. announcement stage
B. prelaunch stage
C. early growth stage
D. late growth stage