14 Questions
Which of the following is a key benefit of introducing new products through disruptive innovation?
Increased sales and profits
What is the purpose of concept testing in the product development process?
To gauge potential buyers' reactions to a product idea
What is one disadvantage of test marketing as a strategy to assess the viability of a new product?
Interference from competitors
What are the advantages of simulated test marketing compared to traditional test marketing?
Greater speed, lower costs, and tighter security
What is the purpose of the commercialization phase in the product development process?
To decide on changes to the marketing mix
True or false: The development of new products is a key part of any business's growth strategy.
True
True or false: Test marketing is a strategy used by many companies to assess the potential success of a new product or service.
True
True or false: Simulated test marketing is more expensive and vulnerable to interference from competitors compared to traditional test marketing.
False
_______ innovation can provide a firm with a competitive edge, while also creating new markets or reshaping existing ones.
Disruptive
Test marketing is a strategy used by many companies to assess the potential success of a new _______.
product or service
Rather than launching a product nationwide overnight, companies may opt for a ______ strategy, whereby the product is initially introduced in one geographic area and gradually expanded to adjacent areas.
rollout
What are the steps involved in developing a new product?
The steps involved in developing a new product include idea generation and screening, concept testing, business analysis, product development, test marketing, and commercialization.
Explain the advantages and disadvantages of test marketing as a strategy to assess the viability of a new product.
The advantages of test marketing include assessing potential customer response, identifying product weaknesses, and experimenting with marketing mix variations. The disadvantages include high costs and vulnerability to interference from competitors.
What is the purpose of a rollout strategy in product launch?
The purpose of a rollout strategy is to initially introduce the product in a specific geographic area and gradually expand to adjacent areas, reducing the risk of introducing a new product, establishing a distribution system, and allowing for marketing mix fine-tuning.
Test your knowledge on product mix adjustments and strategies in this Chapter 11 review quiz. Explore concepts such as line extensions and product modifications to enhance your understanding of how organizations adapt to customer preferences and stay competitive in the market.
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