Study Questions 4.1 1. A lot of modern market research is about? a. Tracking customer satisfaction/dissatisfaction b. Tracking trends in demand c.

Testing marketing theories d. A and C e. A and B f. B and C 2. ______________ is used to help define the problem. a. Exploratory research b. Descriptive research c. Cause and effect research 3. Data collection is the _______ step in the market research process. a. First b. Second c. Third d. Final 4. The most difficult step in the market research process is ________. a. Preparing the report b. Analyzing the data c. Choosing the research technique d. Defining the problem and research objective 5. The study of whether redesigning an online site increases the sales to click conversion rate is_________. a. Exploratory research b. Descriptive research c. Cause and effect research 6. A lot of data-mining of company sales records involves ____________. a. Cross-sectional research b. Cross-functional research c. Cause and effect research d. Longitudinal research Study Questions 4.2 1. Hanging photos of customer visits in meeting rooms ______________. a) Is distracting b) Is a way of owning the meeting room c) Keeps the focus on the customer d) Should be accompanied by photos of the production process 2. Observational research led IKEA to design __________for its Japanese customers. a) Much smaller furniture b) Much larger furniture c) Much more padded furniture d) A whole new line of furniture 3. Qualitative research is? a) Used to learn about customer motivations, beliefs and preferences b) Not representative of the market c) Conducted with small numbers of respondents d) All of the options are true 4. Customer visits are very good for generating________. a) Options and sales leads b) Options and new ideas c) New ideas and sales leads d) Options and sales leads 5. When making a customer visit ___________. a) Do not consult the sales, as they will get in the way b) Talk in jargon to impress customers c) Do not prepare a list of questions, keep it spontaneous d) Talk amongst yourselves about what you saw 6. One of the major weaknesses of using qualitative research to select new product development options is ___________. a) The time required b) The cost c) It is qualitative data d) The small sample size

7. The _____ step in focus group research is to choose a moderator. a) First b) Second c) Third d) Last 8. How many focus groups should you run? a) 1-4 b) 5-8 c) Until you learn nothing more d) Until you have a representative sample 9. Focus groups can be used to make go-no go decisions when __________. a) You have a very good moderator b) You ask the right questions c) The reaction is extreme d) The reaction is lukewarm and divided 10. It is _____________ to have management watch a focus group as they will want to interrupt and add new questions to be asked. a) A good idea b) Not a good idea c) Very frustrating and disruptive d) Very uncommon Study Questions 4.3 1. A probability sample is a sample where all respondents in the population or segment to be studied have __________ of being chosen to be in the sample from the population/segment being studied. a. An unknown probability b. A known chance c. A known (non-zero) chance d. A known probability 2. Typical samples range in size from? a. 50-100 b. 100-200 c. 200-500 d. 400-1000 3. A survey of a whole population is called ___________. a. A 100% sample b. A precise sample c. A census d. A waste of money 4. Online research samples are _____ representative of the whole population. a. Not b. Sometimes c. Frequently d. Always 5. If you increase the size of a sample four times you _______ the precision. a. Halve b. Double c. Triple d. Quadruple 6. A convenience sample is a sample that is gathered from? a. Convenience shoppers b. A convenient pool of customers or potential customers c. Standing outside restrooms d. Interviewing convention participants 7. Non-response error is most effectively avoided by? a. Eliminating non-respondents from the sample b. Persistently asking reluctant respondents to participate c. Interviewer politeness d. Paying the respondents generously for their response time and effort 8. Consumers are often reluctant to participate in survey research because? a. They are so busy b. The incentives are too little c. They suspect the study is bogus and really a sales pitch d. All of the above

9. The online chatter about your products, service and marketing is sometimes called? a. Word-of-mouth b. Gossip c. Word-of-mouse d. Social influence 10. An advantage of online market research is __________. a. It reduces errors b. It reduces cost c. It is far faster d. It increases the quality of open-ended question responses e. All of the options are true Study Questions 4.4 1. According to Websters dictionary, culture is___________. a. The sum total of the ways of living built up by a group of human beings and transmitted from one generation to another b. A stage of civilization of a certain nation or period c. The behaviors and beliefs of a particular social, ethnic or age group d. All of these options are correct 2. Todays cultures (defined as stages of civilization of a nation) are also very dynamic and largely changed by ______________. a. Their developing economies and evolving trade with other countries b. Their religious leaders c. Their political leaders d. Their media 3. Over the last 40 years, with many more female heads of household working, the median household income in the U.S. has increased by about _____________. a. 20% b. 30% c. 40% d. More than 50% 4. As income rises, more activities can be or have to be squeezed into leisure time. The result is that the perceived value of free time increases and produces what has been called_________. a) The hurried leisure class b) The harried leisure class c) The frantic leisure class d) The free-riding leisure class 5. Most social influence today is through: a) YouTube b) Facebook c) LinkedIn d) Person to person 6. ____________of 18-21 year old U.S. online users publish a web page, write blogs or upload videos. a) 16% b) 25% c) 37% d) 52% 7. The Rogers diffusion curve analysis of buyers has _______ categories. a) Three b) Four c) Five d) Seven 8. According to Rogers, ______% of buyers are innovators or early adopters. a) 10% b) 16% c) 20% d) 30%

Study Questions 4.5 1. Which of the following is the reason why we develop habits? a. What has worked in the past (rewarded us) is likely to work again (reward us again) in the future b. Habits allow us to save time making decisions and be thinking of other things as we do them c. Habitual shopping routines can often be executed more efficiently than new behaviors d. Habitual shopping provides a sense of discipline, order and control in our lives e. All of the above 2. The best time to influence shopping and consumption values, beliefs and habits is when consumers are between __________. a. 0-15 b. 16-30 c. 31-45 d. 46-60 3. Habitual behavior___________. a. Is never lost b. Can be lost by a single little mistake c. Can be lost by a series of little mistakes d. Can be lost by something going really wrong 4. Evolution has endowed us with habits and ______ that influence our shopping search. a. A sense of humor b. Ability to think ahead c. Tolerance d. Curiosity and boredom 5. Our attitudes, opinions, interests, hobbies and passions are called our ___________. a. Personality b. Sense of self c. Psychographics d. Demographics e. Valuegraphics 6. In complex searches, shoppers stop searching and purchase when they ___________. a. Find exactly what they want b. Perceive that further search is not worth the effort c. Either A or B d. All of the above Study Questions 4.6 1. A(n) _______ indicator of changing behavior is changing beliefs about the performance of products and services supplied to the market. a) Important b) Leading c) Lagging d) Reliable 2. Consumer belief about whether they are going to be better off, worse off or the same in the future is called _____________. a) Consumer sentiment b) Consumer competence c) Consumer optimism d) Consumer confidence 3. _____ of consumers believe that within five years they will go strongly green in their lifestyle and purchasing. a) 25% b) 35% c) 50% d) 65% 4. The lawn care example teaches us that a very important growth and profit opportunity is advertising to consumers who hold _______beliefs about your product. a) Negative b) No c) Uncertain d) Positive

Study Questions 4.7 1. The key determinant of marketing success is ______fussing about the best measurement of customer satisfaction. a) Always b) Sometimes c) Not d) Never 2. Increased customer satisfaction is ________ creator of capital. a) An occasional b) A minor c) A major d) A reliable 3. When customer satisfaction determines promotion, managers_______. a) Go to bed at night thinking about customer satisfaction b) Often object because it is unfair c) Fudge the satisfaction surveys they collect from customers d) Are delighted 4. Which of the following statements about the customer service feedback effect is false? a) A decrease in employee benefits and wages leads to a decrease in employee morale b) An increase in employee morale leads to an increase in service quality c) An increase in customer satisfaction leads to increased rewards to employees d) A one time bonus can trigger a positive feedback effect e) A feedback-effect always produces positive outcomes 5. Which of the three measures of satisfaction is the gold standard? a) I am completely satisfied b) I will purchase again c) All three are the gold standard d) I will recommend to friends 6. The well-managed firm tracks and broadcasts across its organization which of the following? a) Truly unsolicited letters and e-mails of thanks b) Letters and e-mails complaining, ranking of complaints c) Returns and reasons for returns ranked d) B and C above e) All of the above 7. A common sense measurement process is to _______ask an open-ended question as to how you could better satisfy your customers. a) Never b) Sometimes c) Annually d) Always 8. The number one determinant of website customer satisfaction is_________. a) The attractiveness of the graphics b) Ease of navigation c) How much you buy from it d) It makes you laugh Study Questions 4.8 1. The ___________in a buying firm are more sensitive about product performance, defect rates, service support, parts availability and user training. The __________ in a buying firm are concerned about price, purchase terms, discounts, legal contracts and delivery costs. a) Purchasing agents, end-users b) End-users, accountants c) Senior management, accountants d) End-users, purchasing agents 2. The way firms buy is influenced by: a) Their financial position b) Unique personalities involved c) Socio-political climate d) All the options are true 3. In selling to a business, a standard buying or bidding process may even be ______ by the buying firm. a) Developed b) Commissioned c) Provided d) Banned

4. A systematic analysis of a business account should proceed through a step-bystep description of the people involved, the organizations use of the product or service, the major decision-makers benefits sought and perceptions of the competitive offerings and ____________. a) When they review and renew their supply contracts b) Their distribution system c) A review of their annual reports and their cash on hand d) All of the above 5. Purchase process activity rules include the following: a) Search for more bidders when the number of suppliers is less than five b) Keep using current suppliers when their performance is satisfactory and the number of suppliers on the list is greater than one c) Toughen acceptable performance standards when the number of suppliers on the list is greater than two d) Drop the existing vendor with the worst performance when new vendors are included on the bid list 6. In a supply chain joint venture, the continued independence between the supplier and buyer enhances __________ and keeps the entrepreneurial leadership in both the selling and buying firms happy. a) Cooperation b) Innovation c) Collaboration d) Coordination 7. JIT stands for: a) Just in time b) Just in transit c) Jointly integrated transportation d) Justifiably innovative transportation 8. A feature of JIT is: a) Delivery is frequent and short b) Delivery is frequent and low cost c) Delivery is frequent and friendly d) Delivery is frequent and absolutely reliable 9. Through tracking the performance of its 3,500 jet engines owned by its customers, Rolls Royce has extended the life of its engines ____________. a) 100% b) 200% c) Ten times d) Twenty times 10. The following sociological characteristic of the business-to-business marketplace makes word-of- mouth influence critical: a) They think in similar ways, which enables them to communicate more readily with each other b) Industry trade associations encourage the exchange of ideas and learning within an industry c) Executives who move on to a position with a competitor, supplier or major customer often maintain personal friendships with their previous coworkers d) Engineering consultants act as word-of-mouth megaphones; they often pass on what they have learned to others e) All of the options are correct Module 5 Quiz 1 1.Which of the following is not a psychographic segment variable: a) Life-styles. b) Passions. c) Channel loyalty. d) Personality. e) Social class. f) All of the above 2. The conventional way to evaluate segment criteria is by: a) Profitability, accessibility and fit. b) Substantiality, profitability and fit. c) Substantiality, accessibility and fit. d) Profitability, accessibility and fit. 3. Changing customer preferences changes demand that changes seller supply that in turn changes what: a) The market. b) Company competitiveness. c) Company profitability. d) Customer preferences and demand.

4. The direct determinant of customer profitability is: a) Customer purchases of high margin products and services. b) The sheer quantity of purchases made per year (size of the customer). c) Low selling costs to the customer, low delivery costs, and after-sales service costs. d) All of the above are determinants. 5. Conventional wisdom is that you try which of the following in segmenting a market: a) Geographic criteria. b) Demographic criteria. c) Pyschographic criteria. d) Behavioral criteria. e) All of the above. 6. You take the variation in demand across all consumers and cluster it into segments where demand: a) Varies relatively little between consumers in a segment and varies a lot between segments. b) Varies a lot between consumers in a segment and varies little between segments. c) Varies relatively little between consumers in a segment and varies little between segments. d) Varies a lot between consumers in a segment and varies a lot between segments. 7. The traditional way of segmenting is by: a) Using theory. b) Past experience. c) Senior management guidance. d) Trial and error. 8. Which of the following is not a major, actionable segmentation criterion: a) Profitability segmentation. b) Demographic segmentation. c) Benefit-feature segmentation. d) Channel segmentation. e) All are actionable segmentation criteria. Module 5 Quiz 2 1. The Nintendo Wii has apparently "got more game" than its Microsoft and Sony competitors. Which of the following benefits-features does it not possess: a) Superior almost virtual like graphics. b) Greater user involvement in the game. c) Physical stretching and exercise. 2. New _________ are often created in a market by benefit-feature innovation: a) demand b) customers c) segments d) All of the above. 3. The basic benefits sought ________ as the automobile replaced the horse and cart. a) changed b) evolved c) did not change d) transformed 4. All products and services are _________ to achieve an end: a) means b) instruments c) tools d) All of the above. 5. Which of the following drinks are most preferred by students to relieve a headache: a) Coffee. b) Tea. c) Milk. d) Cola. e) Non-cola 6. Which of the following is not a new desired state that products and services create: a) Metaphysical. b) Emotional. c) Intellectual. d) Spiritual. e) All of the above

Module 5 Quiz 3 1. QFD stands for: a) Quality function determinants. b) Quality feature determinants. c) Quality feature deployment. d) Quality function deployment. 2. A strong correlation between a benefit and a feature in the QFD matrix is indicated by a: a) Triangle. b) Circle. c) Asterisk. d) Box. 3. QFD is the deployment of so the design features of a product or service deliver the desired customer benefits and satisfaction. a) quality b) technology c) resources d) All of the above 4. QFD also involves seamlessly connecting product specifications to the: a) Appropriate manufacturing and production process. b) Customer. c) Customer benefits sought. d) Corporate mission. 5. Competitor X's quality/utility score is: a) 15 b) 50 c) 56 d) 60 e) 64 6. Comparing consumer perception measures with engineering measures identifies: a) A product design positioning problem. b) A product image positioning problem. c) Whether a product has an image positioning problem or a design positioning problem. d) None of the above. 7. A QFD specification matrix helps managers convert benefits desired into: a) Profitability. b) Customer satisfaction. c) Features desired. d) Unique product positioning. 8. The old Writesharp's(now)quality/utility score is: a) 16 b) 50 c) 56 d) 58 e) 60 9. Competitor Y's quality/utility score is: a) 14 b) 28 c) 40 d) 42 e) 50 10. When applying a QFD matrix to a different segment what changes: a) The benefit and their importance change. b) The product specifications or design attributes. c) Everything changes. d) Nothing changes. Module 5 Quiz 4 1. If Wal-Mart is allowed to develop a package of financial services desired by WalMart customers then: a) A lot of banks will be happy because they will lose low income customers. b) A lot of banks will be unhappy because of the increased competition. c) A new channel segment will be created. d) Wal-Mart will never be free to create a Wal-Mart bank. 2. The search engine is an example of: a) American enterprise. b) Western enterprise. c) Google enterprise. d) Creative destruction.

3. Customer segmentation around the customers' distribution/communication channel usage: a) Guarantees segment accessibility. b) Is very common. c) Is very hard to do. d) A and B. e) B and C. 4. What is the channel segmentation problem for long-established banks like Bank America: a) Identifying the customers who want to bank on the Internet. b) The Internet channel segment is unprofitable. c) Offering different prices for the same products in the different channels. d) All of the above. e) None of the above. 5. Channel segmentation is very important today because a lot of innovation in communication and distribution to customers is occurring: a) Around the global marketplace. b) In North America. c) In consumer markets. d) In business markets. Module 5 Quiz 5 1. When managers think about customer focus in 3D, either intuitively or through customer data-base analysis, they: a) Are fairly assured of success, or at least avoiding costly mistakes. b) Will make optimal decisions. c) Are knowledge managers. d) All of the above. 2. An exemplar customer is: a) A customer who is used to set an example to other customers. b) A model customer who receives the very highest service. c) A well-known model customer used in profitability profiling. d) All of the above. 3. An alternative to using sophisticated customer databases to undertake a segmentation of customers by profitability is? a) To hire a company to develop a customer database for you. b) Ask your accountant to segment your customers. c) Use common sense. d) There is no alternative. 4. The 3D way of thinking about different customers is___________ years old. a) 50 b) 100 c) 1000 d) 5000 5. The first two dimensions of the 3D focus are customer profitability or potential profitability and customer choice drivers (benefits sought) and most important product features. The third is: a) Customer attitudes, interests and opinions. b) Customer demographics (age, sex, education etc.) c) Customer contact drivers and desired contact features. d) None of the above. 6. It makes common sense to design products and services to be most useful and cost effective in the fit of their features and price to the: a) Market. b) Company. c) Usage situation. d) All of the above. Module 5 Quiz 6 1.Usage behavior is driven by: a) User difference drivers. b) Usage situation drivers. c) User difference drivers and usage situation drivers. 2. The driver of customer unprofitability is: a) Needs extensive, expensive service support b) Always buying on sale. c) Only buys loss leaders d) Infrequent purchase of very little e) All of the above are drivers of customer unprofitability.

3. In the Telco Segment clustering of the cell phone market "Not in the in-crowd. Like trendy hand-sets to show off but mainly use them as MP3 players and cameras." Describes which segment: a) Laggards. b) Basic communicators. c) Wannabes. d) Trendy talkative. e) Gaming youths. f) Sophisticated careerists. 4. Explaining the explainer, cause-and-effect analysis is called: a) Causality analysis. b) Ethnography. c) Snaking. d) Laddering 5. Which of the following is not a Nokia benefit segment: a) Expression consumers, young consumers who want to customize their phones. b) Premium consumers who want all the latest features and services. c) Wants a rugged tough phone that is ever more stylish. d) Classic consumer who wants a traditional phone with some features. 6. Segmentation in B2B is far less important than in B2C because: a) Almost all marketing in B2B is one to one selling. b) Consumer behavior varies a lot less in B2B. c) B2C markets are much bigger than B2C markets. d) All of the above. 7. The sequence of steps in the 3D segmentation process is: a) Capture purchase history and measure profitability, profile customer benefit segments, understand how consumers use the product or service and subsegment by contact channel. b) Understand how consumers use the product or service, capture purchase history and measure profitability, profile customer benefit segments, and sub-segment by contact channel. c) Profile customer benefit segments, capture purchase history and measure profitability, understand how consumers use the product or service and subsegment by contact channel. d) Profile customer benefit segments, understand how consumers use the product or service, capture purchase history and measure profitability, and sub-segment by contact channel. 8. Which of the following activities comes second in 3D laddering: a) Analysis of product features purchased and benefits wanted. b) Usage observation. c) Customer profitability analysis. d) None of the above. 9. Which of the following is not a Nokia benefit segment; a) Expression consumers, young consumers who want to customize their phones. b) Premium consumers who want all the latest features and services. c) Wants a rugged tough phone that is ever more stylish. d) Classic consumer who wants a traditional phone with some features. 10. The ______________is a good measure of the quality of your customer focus: a) attitude of management b) number of variables in the customer file c) amount spent on consumer research d) emphasis on customer profitability Module 5 Quiz 7 1._______ types of special cross-functional teams need to be discernable in an organization's structure and processes. a) Two b) Three c) Four d) Five 2. What is most important in organizing around segments: a) To create the teams and have them well led. b) How teams are put together. c) Who reports to whom. d) The size of the team. 3. A crucial organization goal of a segmentation strategy that focuses on most profitable customers is: a) To measure customer profitability. b) To minimize politics. c) To maximize management expertise. d) To change how-the-money-is-spent(budgeting)processes in the firm.

4. The role of senior management team champions is to: a) Knock heads together. b) Encourage budgeting quarrels between the team and the business functions. c) Ensure other senior managers and their functions support the team. d) Lead the team. 5. The active interest of ____________is vital if any formalized approach to segmentation is to be successful a) The sales force b) The Chief Executive and top management c) The Chief Marketing Officer d) The Chief Financial Officer 6. In export markets, local managers take the lead on: a) Pricing. b) Advertising and distribution. c) Distribution and product positioning. d) Product positioning, distribution, pricing and advertising. 7. Design is ____________ in the evolution of an organization a) important b) dynamic c) incremental d) cumulative 8. Powerful product managers and powerful sales managers: a) Naturally emerge in a successful company. b) Cannot exist together. c) Should be encouraged to compete for resources. d) Is a recipe for disaster 9. The advantage of small business team management is: a) Disputes can be settled more readily. b) Team politics are less. c) Very low team membership turnover. d) All of the above. 10. To serve its target segments a business must position its: a) Products. b) Products and services. c) Products, services and prices. d) Products, services and organization CH 6 Quiz 1 1. A brand is: a) Created by memorable, meaningful and likable advertising. b) Is a set of associations linked to a name. c) A reputation. d) A and B. e) A and C. f) B and C. g) A, B and C. 2. Who are/were most likely to be the most brand-loyal to packaged goods and appliances: a) Your generation. b) Your parents' generation. c) Your grandparents' generation. 3. In leveraging brand reputation a strong brand: a) Opens the door and invites you in. b) Provides a foot in the door, that is all. c) Blows down the door and blows out the windows. 4. Which of the following is the odd-brand out: a) NoDoze. b) Handy Wipes. c) Slim-Fast. d) Mop and Glow. e) Tide. 5. There are different types of brand loyalty that vary in their strength. Which of the following is the correct order of strength presented in the section. Strongest first, weakest last. a) Identity, differentiation, emotional, service contract, convenience. b) Differentiation, emotional, identity, service contract, convenience. c) Emotional, differentiation, identity, convenience, service contract. d) Emotional, identity, differentiation, service contract, convenience.

6. What is the reason for the change in brand loyalty between generations: a) Exposure to more advertising. b) Greater innocence. c) Much busier. d) Reduced Product improvement. 7. The great era of branding started: a) In the early 1800s. b) In the late 1800s. c) In the early 1900s. d) In the 1950s. 8. Bruce McLaren, a New Zealander, founded the McLaren racing team that won eight Formula One World championships during the 1980s, and McLaren is still a major player in the design of racing cars and winning Championships. Which of the following would not have been a good brand extension: a) McLaren after-market high performance auto parts and accessories. b) McLaren high-performance Driving Courses. c) McLaren scenic tours to New Zealand. d) A super sports car. e) None of the above. 9. Which of the following is likely to most increase shareholder value and obtaining financing: a) A very clever brand advertising campaign. b) Have the Chief Executive Officer appear in the brand advertising campaign. c) Have the company name as the brand name. d) All of the above. 10. When a logo's reputation is earned over decades: a) The logo should stay the same for decades. b) The logo needs to be refreshed to create more interest and attention. c) The logo needs to be changed to create new brand associations. 11. Given the results of the Nescafe Instant coffee experiment how did Nescafe reposition its brand: a) Great tasting and convenient. b) Great tasting for the busy homemaker. c) Great tasting and it frees up time to do more important chores. d) Great tasting to the last drop. 12. The connection between a lot of advertising and brand equity is ________than the connection between sustained innovation excellence and brand equity. a) a lot weaker b) about the same c) a lot stronger 13. Singer sewing machine wrecked its brand equity by: a) Ceasing to provide customer support and education. b) Sold off all of its company owned stores. c) Stopped investing in developing and innovating high quality sewing machines. d) All of these options. e) None of the above. 14. Harley Davidson is a great example of what sort of brand loyalty: a) Emotional loyalty. b) Differentiation loyalty. c) Identity loyalty. d) Service contract loyalty. 15. Where are the greatest branding opportunities today: a) In big ticket items involving a lot of risk. b) To insecure teenagers. c) In developing economies. 16. Virgin has used the following to extend its brand name: a) The extension category is used in the same usage situation. b) Extension category is distributed through same channels. c) The extension category is not dominated by existing powerful brands. d) All of these options. e) None of the above. CH 6 Quiz 2 1. Which of the following was not one of the first two activities in the Good Grip's product development process : a) Identify a consumer need. b) Hire a designer. c) Learn about the market.

2. The Good Grips case study highlighted best practice in: a) Understanding customer product use and benefits sought. b) Design. c) Funding the project. d) Maximizing distribution reach. e) Minimizing opportunities for imitators. f) All of the above. 3. The Chief Executive of GE, Jeff Immelt thinks: a) North America has a great future in developing new products. b) His company will do more product development in Germany. c) GE will move its breakthrough product development efforts to India and China. 4. The filtering, stage-gate approach in turbulent times is considered by two leading marketing scholars to be: a) Best practice. b) A way of ensuring that 70% of your product development projects are successful. c) A way of ensuring that 50% of your product development projects are successful. d) Cumbersome and inappropriate. 5The typical performance metric for judging new product success is: a) Return on investment. b) Market share. c) % of sales coming from new products launched in the last 3-5 years. d) All of the above. 6. The filter or stage-gate product development process is made up of which of the following stages: a) Idea development, analysis and screening, concept development, prototype design, prototype manufacturing and testing. b) Analysis and screening, ,idea development, concept development, prototype design, prototype manufacturing and testing. c) Idea development, concept development, analysis and screening, prototype design, prototype manufacturing and testing. d) Idea development, concept development, prototype design, analysis and screening, prototype manufacturing and testing. 7. In 1990 ____ of new product development projects were next generation, break through products and by 2004 ____were next generation, break through products according to Professor Cooper. a) 12%, 20% b) 20%, 12% c) 41%, 61% d) 61%, 41% 8. The current emphasis in new product development in North America encourages: a) Managers to think inside the box. b) Managers to think outside the box. c) Partnerships with companies in low cost markets. CH 6 Quiz 3 1What is the key to a successful product design process: a) Iterating or cycling from design improvement and improved prototype to customer testing and consultation. b) Spend a lot of time in designing the first prototype. c) Hire professionals to design the product. d) Allocate big budget for product design. 2. Product development is about strong: a) Design creativity. b) Leadership. c) Focus. d) Simplicity. e) All of the above. 3. Concurrent engineering is: a) The development of the production process and marketing plan after the development of the product. b) The development of the production process and marketing plan before the development of the product. c) When several product development teams work in parallel rather than in sequence. d) When several product development teams work in sequence rather than in parallel. 4. Research has shown that the design management skills listed in the section: a) Are positively related to firm growth and profitability. b) Moderate the effect of investment in design on performance. c) Both A and B. d) None of the above.

5. Which of the following statements is true about prototyping: a) Developing the clay model and then using it as input into computer-aided design. b) Quality prototyping is about getting the prototype right the first time. c) The working model that the organization has figured out how to manufacture is called the prototype. d) Organizations don't spend enough time in developing detailed specifications of the first prototype. 6. A study found that concurrent engineering: a) Reduces time to market by 50-80 percent. b) Development time is 20-50 percent less. c) Dollar sales are 60-90 percent higher. d) Overall quality is 200-600 percent higher. 7. Royal Phillips Electronics developed a global branding effort called "Sense and Simplicity" in 2004, which of the following activities is incorrect: a) Set up a Simplicity Advisory Board of company outsiders to evaluate products and report to the CEO. b) This principle applies to all good design: Simplify! c) Everything should be made as simple as possible, and then simpler. d) It is an extension of the Chinese principle of feng shui: buildings and interiors with no clutter and complexity are healthy. 8. Which of the following statements is true as discussed in product development module: a) One third of CEO's of very successful high-growth, high-profit companies manage the task of designing low cost into their products well. b) It has been proven that concurrent engineering is very effective. c) It is easy to implement concurrent engineering. d) Many admit they are doing a good job of early testing of product design for manufacturability, of estimating costs, and of involving customers and suppliers during the design process. CH 6 Quiz 4 1. A major part of product development involves: a) Improving the process. b) Getting rid of the "not invented here" business mentality. c) Changing the "corporate lawyers are king" business culture. d) All of the above. 2. P&G's latest success at product development is because it has set a goal of having ____ of their new products come from outside the company. a) 30 percent b) 40 percent c) 50 percent d) 80 percent 3. The CEO of P&G talks about two consumer moments of truth. Which of the following is NOT one of them: a) When the consumer confronts the product on the store shelf. b) When the consumer talks to other consumers. c) When the consumer uses the product at home. d) All of the above. 4. A.G. Lafley, the P&G CEO, used simple slogans: a) Such simplification enables everybody to understand what the goal is and how to get there. b) His plan is simple: focus on the billion-dollar brands. c) Try to grow new brands rather than sell more Tide. d) Both A and B. e) A, B and C. 5. Which of the following is NOT one of outside sources of innovation ideas: a) New ideas from employees. b) Copying innovations in foreign markets. c) New ideas from consumers. d) Existing specialized industrial product. e) None of the above. CH 6 Quiz 5 1. Why do we have warranties if the common law is that a product must be of merchandise quality: a) To protect the seller. b) To bolster the promise of customer satisfaction. c) Both A and B. d) We don't have to have warranties for every product.

2. A positive warranty or guarantee can: a) Raise quality expectations. b) Raise employee efforts and morale. c) Act as a quality control process. d) Be a competitive differentiation feature. e) All of the above. 3. Which of the following statements is true as discussed in product development module: a) All products have an implied warranty. b) A defensive warranty acts as a spur to improve product quality and design. c) An outstanding warranty has an impact on consumer perceptions of quality, particularly for an established brand. d) A good customer service manager points out when customers have obviously not read product instructions. 4. An outstanding warranty has an impact on consumer perceptions of quality, particularly for: a) An existing brand. b) A new brand. c) A brand extension. d) Both existing and new brands. 5. In following through on claims: a) When a customer complains, it will always lead to negative word-of-mouth. b) If a complaint is handled promptly and graciously it can create a more loyal customer. c) It is essential to process a warranty claim quickly and efficiently. d) Both B and C. e) A, B and C. CH 6 Quiz 6 1. Which of the following statements about label is NOT true: a) A good product label will be easy to remove. b) A good product label will contain an 800 number. c) A good product label will signal quality. d) A good product label is designed to be read by the target segment. e) None of the above. 2. Which of the following statements about packaging is true: a) A one-page guide to product use is a sure sign of poor marketing. b) The consumer cannot benefit from clever packaging designed for the usage situation. c) Innovative packages can add real convenience to product use. d) Recyclable package will appeal to environmentally concerned market segments. e) Both C and D. 3. A product's packaging: a) Is its dressing. b) Is often its most distinctive marketing effort. c) Is a critical selling tool. d) May have to be designed to fit unique display locations. e) All of the above. 4. Which material in packaging may enhance the quality image of the brand in beverages and foods industries as discussed in product development module: a) Cans. b) Plastic. c) A glass bottle. d) Cardboard. 5. Each year marketers spend far more on: a) Advertising. b) Packaging. c) Distribution channel promotions. d) Similar budget are allocated to all of the above.