Question 1

Which of the following best characterizes the decline stage of product development?

Accepted Answer

A)  rapid market acceptance 
B)  slow sales growth 
C)  sales and profits decline 
D)  high investment costs 
E)  increasing profits 
A)  rapid market acceptance 
B)  slow sales growth 
C)  sales and profits decline 
D)  high investment costs 
E)  increasing profits

Question 2

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

Accepted Answer

A)  introduction 
B)  laggard 
C)  maturity 
D)  decline 
E)  incubation 
A)  introduction 
B)  laggard 
C)  maturity 
D)  decline 
E)  incubation

Question 3

Refer to the scenario below to answer the following question(s).
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 racecars 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?

Accepted Answer

A)  concept testing 
B)  marketing strategy development 
C)  idea screening 
D)  commercializing 
E)  crowdsourcing 
A)  concept testing 
B)  marketing strategy development 
C)  idea screening 
D)  commercializing 
E)  crowdsourcing

Question 4

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following best describes the role of a product steward?

Accepted Answer

A)  to protect employees and laborers from harm 
B)  to evaluate new product ideas against a set of general criteria 
C)  to develop a new product concept into a physical product 
D)  to protect consumers from harm and the company from liability 
E)  to decide whether to maintain, harvest, or drop the product in the decline stage of the PLC 
A)  to protect employees and laborers from harm 
B)  to evaluate new product ideas against a set of general criteria 
C)  to develop a new product concept into a physical product 
D)  to protect consumers from harm and the company from liability 
E)  to decide whether to maintain, harvest, or drop the product in the decline stage of the PLC

Question 6

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

Accepted Answer

A)  laggard 
B)  decline 
C)  maturity 
D)  growth 
E)  incubation 
A)  laggard 
B)  decline 
C)  maturity 
D)  growth 
E)  incubation

Question 7

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.

Accepted Answer

A)  why many companies engage in crowdsourcing 
B)  one of the problems associated with test marketing 
C)  why prototypes are so important 
D)  how idea screening can make a product a commercial success 
E)  the importance of different sources for idea generation 
A)  why many companies engage in crowdsourcing 
B)  one of the problems associated with test marketing 
C)  why prototypes are so important 
D)  how idea screening can make a product a commercial success 
E)  the importance of different sources for idea generation

Question 8

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods have been sold in huge numbers, and Apple captures a large share of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.

Accepted Answer

A)  introduction 
B)  growth 
C)  maturity 
D)  decline 
E)  adoption 
A)  introduction 
B)  growth 
C)  maturity 
D)  decline 
E)  adoption

Question 9

Refer to the scenario below to answer the following question(s).
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 racecars 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."
-New product development begins with a systematic search for new product ideas through idea generation.

Accepted Answer

A) True 
 B)False

Question 10

Refer to the scenario below to answer the following question(s).
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 racecars 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."
-GreenTree Lawn and Garden Products is engaged in marketing strategy development. The first part of the marketing strategy statement created by management should outline the product's planned price, distribution, and marketing budget for the first year.

Accepted Answer

A) True 
 B)False

Question 11

Differentiate between controlled test markets and simulated test markets.

Accepted Answer

In controlled test markets, new products

Question 12

Refer to the scenario below to answer the following question(s).
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 racecars 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."
-The distribution strategy during the decline stage of PLC involves building more intensive distribution networks.

Accepted Answer

A) True 
 B)False

Question 13

Marketers can prolong the lives of many products in the maturity or decline stages of the PLC, sometimes even moving these products back into the growth stage. How is this undertaken?

Accepted Answer

Marketers can change any element of the

Question 14

Which of the following is included in the second part of the marketing strategy statement?

Accepted Answer

A)  advertising tagline 
B)  promotional mix 
C)  planned price 
D)  customer segmentation 
E)  operational excellence 
A)  advertising tagline 
B)  promotional mix 
C)  planned price 
D)  customer segmentation 
E)  operational excellence

Question 15

Which of the following groups do marketers involve for the process of concept testing new products?

Accepted Answer

A)  suppliers 
B)  employees 
C)  target consumers 
D)  manufacturers 
E)  competitors 
A)  suppliers 
B)  employees 
C)  target consumers 
D)  manufacturers 
E)  competitors

Question 16

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

Accepted Answer

A) True 
 B)False

Question 17

Under a team-based new product development approach, ________.

Accepted Answer

A)  a single departmental team works to complete different stages of the process before passing the new product along to the next department and stage 
B)  the organizational tension and confusion is less than under the sequential approach 
C)  company departments work closely together in cross-functional teams 
D)  a bottleneck at one phase can seriously delay an entire project 
E)  the new product passes from one department to another before finalizing 
A)  a single departmental team works to complete different stages of the process before passing the new product along to the next department and stage 
B)  the organizational tension and confusion is less than under the sequential approach 
C)  company departments work closely together in cross-functional teams 
D)  a bottleneck at one phase can seriously delay an entire project 
E)  the new product passes from one department to another before finalizing

Question 18

Which of the following statements is true of test marketing?

Accepted Answer

A)  The amount of test marketing needed remains constant for each new product. 
B)  When the costs of developing and introducing the product are low, the company will have to do significant test marketing. 
C)  Test marketing is seldom done on products that are risky. 
D)  Test marketing is seldom done when management is not sure of the product or its marketing program. 
E)  Test marketing costs can be high, and it takes time that may allow competitors to gain advantages. 
A)  The amount of test marketing needed remains constant for each new product. 
B)  When the costs of developing and introducing the product are low, the company will have to do significant test marketing. 
C)  Test marketing is seldom done on products that are risky. 
D)  Test marketing is seldom done when management is not sure of the product or its marketing program. 
E)  Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

Question 19

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?

Accepted Answer

A)  The products were priced too high. 
B)  The products were advertised incorrectly. 
C)  Competitors fought back harder than expected. 
D)  Product research was too extensive. 
E)  The product development costs were high. 
A)  The products were priced too high. 
B)  The products were advertised incorrectly. 
C)  Competitors fought back harder than expected. 
D)  Product research was too extensive. 
E)  The product development costs were high.

Question 20

Which of the following is a common reason for new product failure?

Accepted Answer

A)  incorrect estimation of the market size 
B)  low product development costs 
C)  ineffective social marketing campaigns 
D)  low selling prices of products 
E)  patent ownership exclusively held by the company 
A)  incorrect estimation of the market size 
B)  low product development costs 
C)  ineffective social marketing campaigns 
D)  low selling prices of products 
E)  patent ownership exclusively held by the company

Which of the following best characterizes the decline stage of product development?

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

Which of the following best describes the role of a product steward?

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.

Differentiate between controlled test markets and simulated test markets.

Marketers can prolong the lives of many products in the maturity or decline stages of the PLC, sometimes even moving these products back into the growth stage. How is this undertaken?

Which of the following is included in the second part of the marketing strategy statement?

Which of the following groups do marketers involve for the process of concept testing new products?

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

Under a team-based new product development approach, ________.

Which of the following statements is true of test marketing?

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?

Which of the following is a common reason for new product failure?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Pricing: Understanding and Capturing Customer Value

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Customers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

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

Which of the following best characterizes the decline stage of product development?

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product.

Which of the following best describes the role of a product steward?

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.

Differentiate between controlled test markets and simulated test markets.

Marketers can prolong the lives of many products in the maturity or decline stages of the PLC, sometimes even moving these products back into the growth stage. How is this undertaken?

Which of the following is included in the second part of the marketing strategy statement?

Which of the following groups do marketers involve for the process of concept testing new products?

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

Under a team-based new product development approach, ________.

Which of the following statements is true of test marketing?

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?

Which of the following is a common reason for new product failure?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Pricing: Understanding and Capturing Customer Value

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Customers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters