MAR3023 Exam 3 (Brady - FSU) {LATEST
2026 -2027 update} QUESTIONS AND
ANSWERS 100% CORRECT
What are Line Extensions? - correct answer Products developed closely related to one
or more successful products in existing product lines but specifically designed to meet
a somewhat different need
What are some examples of Up Market Extension and Down Market Extension? -
correct answer Down Market: Expensive good has affordable option (Ex- Mercedes B
Class)
Up Market: Cheap goods have a luxury option (Ex- Premium kit kat bar or mcdonalds
making a $12 burger)
,What are Brand Extensions? - correct answer Products developed is not closely but
still somewhat related to one or more products in existing product line (Ex- Reese's
sells Peanut butter or Starbucks selling ice cream)
What is a Product Modification? - correct answer Changing one or more
characteristics of a product and STOPS sales of older version- DIFFERENCE BETWEEN
THIS and EXTENSIONS(Ex- New Car Models)
What is a Functional Modification? - correct answer Changes impact versatility,
effectiveness, convenience- requires redesign of product (Ex- New Heinz ketchup
packets)
What percentage of new products fail? - correct answer 80%
, What are the two goals and perspectives for NPD? - correct answer 1. The firm's
perspective
2. The customer's perspective
What are the 7 steps of developing a new product? - correct answer 1. Idea generation
2. Idea screening (think Shark Tank)
3. Concept testing (focus groups)
4. Business analysis
5. Development of physical product
6. Beta and Market testing (test markets)
7. Product launch
Product Adoption Process (buyer's perspective) - correct answer 1. Awareness
2. Interest
3. Evaluation
2026 -2027 update} QUESTIONS AND
ANSWERS 100% CORRECT
What are Line Extensions? - correct answer Products developed closely related to one
or more successful products in existing product lines but specifically designed to meet
a somewhat different need
What are some examples of Up Market Extension and Down Market Extension? -
correct answer Down Market: Expensive good has affordable option (Ex- Mercedes B
Class)
Up Market: Cheap goods have a luxury option (Ex- Premium kit kat bar or mcdonalds
making a $12 burger)
,What are Brand Extensions? - correct answer Products developed is not closely but
still somewhat related to one or more products in existing product line (Ex- Reese's
sells Peanut butter or Starbucks selling ice cream)
What is a Product Modification? - correct answer Changing one or more
characteristics of a product and STOPS sales of older version- DIFFERENCE BETWEEN
THIS and EXTENSIONS(Ex- New Car Models)
What is a Functional Modification? - correct answer Changes impact versatility,
effectiveness, convenience- requires redesign of product (Ex- New Heinz ketchup
packets)
What percentage of new products fail? - correct answer 80%
, What are the two goals and perspectives for NPD? - correct answer 1. The firm's
perspective
2. The customer's perspective
What are the 7 steps of developing a new product? - correct answer 1. Idea generation
2. Idea screening (think Shark Tank)
3. Concept testing (focus groups)
4. Business analysis
5. Development of physical product
6. Beta and Market testing (test markets)
7. Product launch
Product Adoption Process (buyer's perspective) - correct answer 1. Awareness
2. Interest
3. Evaluation
