Exam 8: New Product Development and Product Life-Cycle Strategies

Which of the following is true of the growth stage of the product life cycle?

The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law.

The installation of an innovation management system allows a company to collect, review, evaluate, and manage new product ideas.

Explain what happens during the concept testing stage of new product development.

Which statement is most likely true about idea generation in the new product development process?

What are the major external sources of new product ideas? What type of information can be gathered from each of these sources? How do firms benefit from such information?

During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level where they continue for many years.

Which of the following is a disadvantage of a team-based approach to new product development?

What options are available to a firm that has a product in the decline stage of the product life cycle? Briefly discuss each option.

Acquisitions are not considered a source of new products for organizations.

An innovation management system would most likely be used by ________.

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?

If a product passes both the concept test and the product test, the next step is most likely to be ________.

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.

________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives.

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.

The new product development process usually starts with ________.

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle.