Product Development Evaluation Process

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What is a detailed version of the idea stated in meaningful consumer terms?

Product concept (correct)

Product image

Product feature

Product idea

During which stage of new-product development are new-product ideas presented to consumers in symbolic or physical ways to gauge their reactions?

Concept testing (correct)

Screening

Marketing strategy

Idea generation

What tools are typically used at the stage of looking at the sales history of similar products and surveying market opinion in new-product development?

Business analysis (correct)

Commercialization

Concept development and testing

Marketing strategy development

During the product development phase, what should the prototype convey to ensure beneficial and meaningful consumer testing?

Prototype Signup and view all the answers

What is the FIRST decision that a company introducing a new product must make?

Where to introduce Signup and view all the answers

What is the term used to describe the course of a product’s sales and profits over its lifetime?

Product lifecycle Signup and view all the answers

What is the purpose of requiring executives to write up new-product ideas on a standard form?

To have a standardized format for idea evaluation Signup and view all the answers

What is the difference between a product idea and a product concept?

A product concept is a detailed version of a product idea stated in consumer terms Signup and view all the answers

Why is concept testing important in new product development?

To assess the attractiveness of different product concepts to consumers Signup and view all the answers

In what way can a physical presentation of a new-product concept be beneficial for concept testing?

It enhances the credibility and reliability of the concept test Signup and view all the answers

What does MBO stand for in the context provided?

Management by Objectives Signup and view all the answers

Why do companies evaluate new-product ideas against set criteria?

To ensure that only profitable products are pursued Signup and view all the answers

What is the purpose of giving consumers a small amount of money in the context provided?

To conduct market research on consumer behavior Signup and view all the answers

In the product life cycle (PLC), what does the decline stage entail?

Products facing decreasing sales and profits Signup and view all the answers

Why must a company decide on introduction timing before launching a new product?

To ensure high initial sales Signup and view all the answers

What is the main concern for a company during commercialization?

Managing production costs Signup and view all the answers

Which type of products tend to have a standard Product Life Cycle (PLC) shape?

Product classes Signup and view all the answers

How can a product that has entered the decline stage be brought back into the growth stage according to the text?

Through strong promotion or repositioning Signup and view all the answers

What is a common reason for sales decline in the decline stage of a product?

Technological advances Signup and view all the answers

What is a typical characteristic of customers in the decline stage of the product life cycle?

Laggards who have not bought the product yet Signup and view all the answers

What is a recommended advertising strategy during the decline stage of a product?

Reduce advertising to retain loyal customers Signup and view all the answers

How should a company adjust its distribution strategy during the decline stage?

Phase out unprofitable outlets Signup and view all the answers

What pricing strategy is recommended during the decline stage to maintain profitability?

Cut prices to increase sales volume Signup and view all the answers

Why should a firm phase out weak items during the decline stage of a product?

Because weak items are costly to maintain Signup and view all the answers

What is the next step after testing new-product concepts with consumers?

Marketing Strategy Development Signup and view all the answers

Which part of the marketing strategy statement outlines the product's planned price, distribution, and marketing budget for the first year?

Second part Signup and view all the answers

What does business analysis involve?

Reviewing sales, costs, and profit projections Signup and view all the answers

Where does the product concept move if it passes the business test?

Product Development Signup and view all the answers

What does the product development stage involve?

Developing the product concept into a physical product Signup and view all the answers

What is needed to show whether a product idea can be turned into a workable product during product development?

Large jump in investment Signup and view all the answers