Exam 8: Developing New Products and Managing the Product Life Cycle 

Companies like Under Armour sponsor annual crowdsourcing events. In which of the following scenarios is crowdsourcing used for new product development?

In the team-based approach, if one area hits snags, it works to resolve them while the team moves on.

The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction.

A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.

When a product is in the stage, profits level off or decline because of increased marketing outlays to defend the product against competition.

What is test marketing? What role does it play in new product development? What factors do firms consider when determining whether or not to conduct test marketing?

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?

Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the stage of the new product development process.

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.

A detailed version of a product idea stated in meaningful consumer terms is a .

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and .

The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.

Briefly describe the maturity stage of the product life cycle.

By one estimate 60% of all new consumer packaged products introduced by established companies fail.

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

Which of the following is true about the introduction stage of a new product?

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?

Introducing a new product into the market is called .

Companies like 3M, Google, and Sony have that encourage employees to develop new ideas.