PCM Product Development & Launch 3

Question 1

A firm conducting a product concept test presents descriptions or mock-ups to potential customers before building the actual product. The PRIMARY goal is to:

Accepted Answer

Measure purchase intent and refine the concept before investing in development

Answer

Concept testing evaluates consumer reactions to a product idea early in development to avoid costly failures before full production investment.

Question 2

A company launches a new product line that targets a segment its existing brands already serve, resulting in reduced sales of the current product. This is known as:

Accepted Answer

Market cannibalization

Answer

Cannibalization occurs when a new product takes sales away from an existing product within the same company's portfolio.

Question 3

In the NPD process, what does 'business analysis' (Stage 3 in many models) primarily evaluate?

Accepted Answer

The product's projected sales, costs, and profitability

Answer

Business analysis estimates the product's financial viability, including projected revenues, costs, break-even, and ROI before committing to full development.

Question 4

When launching a new B2B product, a company first sells to two pilot clients to work out operational issues before a full rollout. This approach is called:

Accepted Answer

Limited market testing

Answer

Limited market testing (or test marketing) with select clients allows B2B companies to identify and fix problems before committing to a full-scale launch.

Question 5

A brand launches a product extension using the same brand name but in a completely different product category (e.g., a fashion brand launching perfume). This strategy is called a:

Accepted Answer

Brand extension

Answer

A brand extension uses an established brand name to enter a new, different product category, leveraging existing brand equity.

(PCM) Professional Certified Marketer Practice Test

(PCM) Professional Certified Marketer Practice Test

PCM Product Development & Launch 3