Exam 11: Developing and Managing Products

Normally,the longest stage of the product life cycle is the _____ stage.

Many products may experience short-term fluctuations in sales,but a long-term drop in sales probably signifies that a product is in the decline stage of the product life cycle.

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

Being first on the market with a new product has a number of advantages,including all the following EXCEPT:

A European dairy,which is famous for its rich ice creams,has introduced basil,tomato,fennel,and oregano flavored ice creams.Which of the following product characteristics would most likely influence the market success of these new flavors?

Fitbit The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use. -Refer to Fitbit.The company marketing the Fitbit does not currently market a product like this.Which of the following best represents the category of new product the Fitbit is for this company?

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

It is considered inefficient to use concept tests during the idea screening stage of the new-product development process.

A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise.Which of the following is a potential source of new-product ideas that would allow it to compete more effectively?

The Sumatra Coffee Company has two new products.One is a simple hand-cranked coffee grinder.The other is a combination grinder and brewer that also can be used to dispense hot milk.Of these two,the hand-cranked grinder will probably be diffused more quickly because it is less complex.

Rapala VMC Corporation Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century." -Refer to Rapala.The degree to which the newest lures are perceived as superior to earlier models refers to their _____,a characteristic used to predict the rate of adoption.

Seven employees from a company are trying to come up with ideas for new-product development.The employees are all in a room together,shouting out potential ideas.The ideas are written down and evaluated as they are generated.This is an example of brainstorming.