Exam 9: New-Product Development and Product Life Cycle Strategies

When sales of a product drop during the decline stage of the PLC, a company typically modifies the marketing mix, the product, or the market.

Which of the following is the most likely reason that employees regularly attend trade shows and seminars?

Refer to the scenario below to answer the following questions. Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum. The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's race cars and walking dolls. Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs. After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away." -Which of the following stages of the new-product development was Evelyn involved in when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner?

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

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

________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

Which of the following is an internal source for new-product ideas?

Which of the following statements characterizes the introduction stage of the PLC?

Companies seldomly solicit ideas from customers during the idea generation stage of product development.

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

Sales of products decline because of technological advances, shifts in consumer tastes, and increased competition.

Differentiate between a product idea, a product concept, and a product image.

Why has the cost of product liability insurance risen so dramatically?

A detailed version of a new idea stated in meaningful customer terms is called a ________.

Which of the following is a consequence of standardizing an international product?

What elements may help to create a product image?

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

Which of the following statements is true of the idea generation stage in the new-product development process?

According to the commercialization stage of the new-product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.