Question 1

The first stage of the new-product development process is:

Accepted Answer

A)  screening and concept testing 
B)  establishing the new-product strategy 
C)  exploring opportunities 
D)  developing a business analysis 
E)  the building of a prototype 
A)  screening and concept testing 
B)  establishing the new-product strategy 
C)  exploring opportunities 
D)  developing a business analysis 
E)  the building of a prototype

Question 2

Going to the Dogs
Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses.
-Refer to Going to the Dogs.Central Bark Doggie Day Care currently has 31 locations,with a new Gainesville,FL location coming soon.With the opening of competition in the form of Camp Bow Wow and others,it appears that the dog daycare product is moving into the _____ stage of the product life cycle.

Accepted Answer

A)  commercialization 
B)  introductory 
C)  growth 
D)  maturity 
E)  decline 
A)  commercialization 
B)  introductory 
C)  growth 
D)  maturity 
E)  decline

Question 3

The decision to market a product is called commercialization.

Accepted Answer

A) True 
 B)False

Question 4

Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:

Accepted Answer

A)  establish an environment conducive to achieving new-product objectives 
B)  make the long-term commitment needed to support innovation and new-product development 
C)  capitalize on experience to achieve and maintain competitive advantage 
D)  use a company-specific approach that is driven by corporate objectives and strategies with a well-defined new-product strategy at its core 
E)  introduce ten new products every year 
A)  establish an environment conducive to achieving new-product objectives 
B)  make the long-term commitment needed to support innovation and new-product development 
C)  capitalize on experience to achieve and maintain competitive advantage 
D)  use a company-specific approach that is driven by corporate objectives and strategies with a well-defined new-product strategy at its core 
E)  introduce ten new products every year

Question 5

At what stage of the new-product development process are most new-product ideas rejected?

Accepted Answer

A)  Test marketing 
B)  Diffusion 
C)  Business analysis 
D)  Idea screening 
E)  Idea generation 
A)  Test marketing 
B)  Diffusion 
C)  Business analysis 
D)  Idea screening 
E)  Idea generation

Question 6

The rate of sales decline during the decline stage of the product life cycle is largely governed by:

Accepted Answer

A)  the amount of money spent on advertising 
B)  the number of competitors in the market 
C)  the intensity of the competition's marketing efforts 
D)  the amount of shelf space allotted to the product 
E)  how rapidly consumer tastes change or substitute products are adopted 
A)  the amount of money spent on advertising 
B)  the number of competitors in the market 
C)  the intensity of the competition's marketing efforts 
D)  the amount of shelf space allotted to the product 
E)  how rapidly consumer tastes change or substitute products are adopted

Question 7

A biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death)is called the:

Accepted Answer

A)  product diffusion process 
B)  product phase 
C)  product adoption stages 
D)  product evolution cycle 
E)  product life cycle 
A)  product diffusion process 
B)  product phase 
C)  product adoption stages 
D)  product evolution cycle 
E)  product life cycle

Question 8

Which of the following products is most likely to be in the decline stage of its product life cycle?

Accepted Answer

A)  Cookie mixes 
B)  Wireless mobile phones 
C)  Programmable CD-ROMs 
D)  Funeral caskets 
E)  Prerecorded audiocassette tapes 
A)  Cookie mixes 
B)  Wireless mobile phones 
C)  Programmable CD-ROMs 
D)  Funeral caskets 
E)  Prerecorded audiocassette tapes

Question 9

Central Bark is a dog day care center.When you check your dog into a Central Bark you know your pooch will be pampered.Since kennels have been boarding dogs for years,the dog day care is not really a new product.

Accepted Answer

A) True 
 B)False

Question 10

A team-oriented approach to new-product development is referred to as:

Accepted Answer

A)  simultaneous product development 
B)  synergistic product development 
C)  commercialized product development 
D)  synchronized product development 
E)  parallel product development 
A)  simultaneous product development 
B)  synergistic product development 
C)  commercialized product development 
D)  synchronized product development 
E)  parallel product development

Question 11

The advertising strategy during the growth stage of the product life cycle should be to:

Accepted Answer

A)  aim at the needs of innovators 
B)  make the mass market aware of brand benefits 
C)  use advertising as a vehicle for introducing the product category benefits 
D)  emphasize the product's low price to help reduce inventories 
E)  make the market aware of product category brands 
A)  aim at the needs of innovators 
B)  make the mass market aware of brand benefits 
C)  use advertising as a vehicle for introducing the product category benefits 
D)  emphasize the product's low price to help reduce inventories 
E)  make the market aware of product category brands

Question 12

A product must be a discontinuous innovation to be considered a "new" product.

Accepted Answer

A) True 
 B)False

Question 13

One advantage for being first on the market with a new product is increased product loyalty.

Accepted Answer

A) True 
 B)False

Question 14

The length of the introductory stage of the product life cycle for a new product is largely determined by:

Accepted Answer

A)  the size of the product 
B)  the product's marketing mix 
C)  the efficiency of the test marketing 
D)  product characteristics,such as advantages over substitute products 
E)  the size of the market 
A)  the size of the product 
B)  the product's marketing mix 
C)  the efficiency of the test marketing 
D)  product characteristics,such as advantages over substitute products 
E)  the size of the market

Question 15

All the brands that satisfy a particular type of need such as shaving products,laundry detergent,soft drinks,and furniture make up a(n):

Accepted Answer

A)  product life cycle stage 
B)  primary group 
C)  adopter category 
D)  product category 
E)  reference group 
A)  product life cycle stage 
B)  primary group 
C)  adopter category 
D)  product category 
E)  reference group

Question 16

List the seven steps of the new-product development process.

Accepted Answer

1.New-product strategy
2.Idea

Question 17

The Internet offers a fast,cost-effective way to conduct test marketing.

Accepted Answer

A) True 
 B)False

Question 18

_____ embrace products relatively early in the product life cycle,are likely to be community oriented,and often are opinion leaders themselves.

Accepted Answer

A)  Early adopters 
B)  Innovators 
C)  Early majority 
D)  Late majority 
E)  Laggards 
A)  Early adopters 
B)  Innovators 
C)  Early majority 
D)  Late majority 
E)  Laggards

Question 19

Procter & Gamble is introducing a new fabric softener dispenser that consumers stick to the inside of the dryer drum and plans to send consumers free samples in the mail.This strategy will likely increase the rate of adoption of the new product.

Accepted Answer

A) True 
 B)False

Question 20

Marketers consider all of the following examples of new products EXCEPT:

Accepted Answer

A)  a 2010 model year automobile with the same style,parts,and color as the 2009 model 
B)  the addition of a management consultant service to a company that once specialized in investment management 
C)  a new design for Reach brand toothbrushes 
D)  a new flavor of Ben & Jerry's brand ice cream 
E)  the development of a less-painful procedure for the treatment of varicose veins 
A)  a 2010 model year automobile with the same style,parts,and color as the 2009 model 
B)  the addition of a management consultant service to a company that once specialized in investment management 
C)  a new design for Reach brand toothbrushes 
D)  a new flavor of Ben & Jerry's brand ice cream 
E)  the development of a less-painful procedure for the treatment of varicose veins

Exam 11: Developing and Managing Products

The first stage of the new-product development process is:

The decision to market a product is called commercialization.

Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:

At what stage of the new-product development process are most new-product ideas rejected?

The rate of sales decline during the decline stage of the product life cycle is largely governed by:

A biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death)is called the:

Which of the following products is most likely to be in the decline stage of its product life cycle?

Central Bark is a dog day care center.When you check your dog into a Central Bark you know your pooch will be pampered.Since kennels have been boarding dogs for years,the dog day care is not really a new product.

A team-oriented approach to new-product development is referred to as:

The advertising strategy during the growth stage of the product life cycle should be to:

A product must be a discontinuous innovation to be considered a "new" product.

One advantage for being first on the market with a new product is increased product loyalty.

The length of the introductory stage of the product life cycle for a new product is largely determined by:

All the brands that satisfy a particular type of need such as shaving products,laundry detergent,soft drinks,and furniture make up a(n):

List the seven steps of the new-product development process.

The Internet offers a fast,cost-effective way to conduct test marketing.

_____ embrace products relatively early in the product life cycle,are likely to be community oriented,and often are opinion leaders themselves.

Procter & Gamble is introducing a new fabric softener dispenser that consumers stick to the inside of the dryer drum and plans to send consumers free samples in the mail.This strategy will likely increase the rate of adoption of the new product.

Marketers consider all of the following examples of new products EXCEPT:

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Decisions

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Promotional Planning for Competitive Advantage

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Customer Relationship Management (CRM)

Social Media and Marketing

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