Question 1

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

Accepted Answer

A)  when the new product requires a major investment 
B)  when management lacks confidence in the new product 
C)  when management lacks confidence in the marketing strategy 
D)  when the product has no substitutes and is new in its category 
E)  when the costs of developing and introducing the product are low 
A)  when the new product requires a major investment 
B)  when management lacks confidence in the new product 
C)  when management lacks confidence in the marketing strategy 
D)  when the product has no substitutes and is new in its category 
E)  when the costs of developing and introducing the product are low

Question 2

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."
-Evelyn's vacuum is at the ________ stage of the product life cycle.

Accepted Answer

A)  product development 
B)  introduction 
C)  growth 
D)  decline 
E)  maturity 
A)  product development 
B)  introduction 
C)  growth 
D)  decline 
E)  maturity

Question 3

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products.

Accepted Answer

A)  modify 
B)  maintain 
C)  drop 
D)  harvest 
E)  franchise 
A)  modify 
B)  maintain 
C)  drop 
D)  harvest 
E)  franchise

Question 4

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 5

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service?

Accepted Answer

A)  idea screening 
B)  product development 
C)  product activation 
D)  marketing strategy development 
E)  product design 
A)  idea screening 
B)  product development 
C)  product activation 
D)  marketing strategy development 
E)  product design

Question 6

According to the text, the search for new product ideas should most likely be ________.

Accepted Answer

A)  intermittent 
B)  holistic 
C)  segmented 
D)  compartmentalized 
E)  flexible 
A)  intermittent 
B)  holistic 
C)  segmented 
D)  compartmentalized 
E)  flexible

Question 7

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process.

Accepted Answer

A)  business transformation 
B)  test marketing 
C)  business analysis 
D)  business process reengineering 
E)  concept testing 
A)  business transformation 
B)  test marketing 
C)  business analysis 
D)  business process reengineering 
E)  concept testing

Question 8

Briefly describe the steps in the new product development process.

Accepted Answer

New product development starts with idea

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."
-Marketers often involve actual customers in product testing.

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 a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

Accepted Answer

A) True 
 B)False

Question 11

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 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."
-Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Accepted Answer

A) True 
 B)False

Question 13

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

Accepted Answer

A)  the entire marketing program 
B)  which market to compete in 
C)  whether to launch the new product 
D)  how to compete in the market 
E)  how long to compete in the market 
A)  the entire marketing program 
B)  which market to compete in 
C)  whether to launch the new product 
D)  how to compete in the market 
E)  how long to compete in the market

Question 14

Which of the following is a significant challenge presented by the product life cycle?

Accepted Answer

A)  increased expenses 
B)  increased competition 
C)  new product development 
D)  evaluation of results 
E)  recognizing the stages as a product goes through them 
A)  increased expenses 
B)  increased competition 
C)  new product development 
D)  evaluation of results 
E)  recognizing the stages as a product goes through them

Question 15

Which of the following statements best explains why idea screening may be the most important step of new product development?

Accepted Answer

A)  It increases the number of ideas generated. 
B)  It provides an opportunity for the marketer to test the prototype in a simulated market. 
C)  It helps forecast the products' sales and profits accurately for a specific period. 
D)  It gives research and development team members an opportunity to gather consumer feedback. 
E)  It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable. 
A)  It increases the number of ideas generated. 
B)  It provides an opportunity for the marketer to test the prototype in a simulated market. 
C)  It helps forecast the products' sales and profits accurately for a specific period. 
D)  It gives research and development team members an opportunity to gather consumer feedback. 
E)  It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

Question 16

Which of the following would most likely be included in an executive's write up of a new product idea to be presented to a new product committee?

Accepted Answer

A)  the proposed customer value proposition 
B)  the product image 
C)  the marketing strategy 
D)  the business analysis 
E)  the pricing strategy 
A)  the proposed customer value proposition 
B)  the product image 
C)  the marketing strategy 
D)  the business analysis 
E)  the pricing strategy

Question 17

Describe three public policy issues or regulations that marketers should carefully consider as they make decisions about adding or dropping products.

Accepted Answer

The government may prevent companies fro

Question 18

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."
-Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

Accepted Answer

A) True 
 B)False

Question 19

The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?

Accepted Answer

A)  developments in technology 
B)  decreased manufacturing costs 
C)  competition 
D)  changing tastes of consumers 
E)  aging of products 
A)  developments in technology 
B)  decreased manufacturing costs 
C)  competition 
D)  changing tastes of consumers 
E)  aging of products

Question 20

Which of the following stages in the new product development would a firm engage in immediately after the completion of concept testing?

Accepted Answer

A)  idea screening 
B)  marketing strategy development 
C)  business analysis 
D)  product development 
E)  idea generation 
A)  idea screening 
B)  marketing strategy development 
C)  business analysis 
D)  product development 
E)  idea generation

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

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products.

Which of the following statements is true of test marketing?

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service?

According to the text, the search for new product ideas should most likely be ________.

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process.

Briefly describe the steps in the new product development process.

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

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

Which of the following is a significant challenge presented by the product life cycle?

Which of the following statements best explains why idea screening may be the most important step of new product development?

Which of the following would most likely be included in an executive's write up of a new product idea to be presented to a new product committee?

Describe three public policy issues or regulations that marketers should carefully consider as they make decisions about adding or dropping products.

The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?

Which of the following stages in the new product development would a firm engage in immediately after the completion of concept testing?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-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 Consumers 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: Developing New Products and Managing the Product Life Cycle

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

P&G has sold off a number of lesser or declining brands such as Folgers coffee and Cover Girl cosmetics. In these examples, management decided to ________ the products.

Which of the following statements is true of test marketing?

Which of the following stages of the new product development process occurs immediately after the completion of the business analysis for the product or service?

According to the text, the search for new product ideas should most likely be ________.

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process.

Briefly describe the steps in the new product development process.

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

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

Which of the following is a significant challenge presented by the product life cycle?

Which of the following statements best explains why idea screening may be the most important step of new product development?

Which of the following would most likely be included in an executive's write up of a new product idea to be presented to a new product committee?

Describe three public policy issues or regulations that marketers should carefully consider as they make decisions about adding or dropping products.

The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?

Which of the following stages in the new product development would a firm engage in immediately after the completion of concept testing?

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-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 Consumers 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