Question 1

Market-oriented sources of product ideas identify opportunities on the basis of consumer needs and wants.

Accepted Answer

A) True 
 B)False

Question 2

A firm has applied for a new rechargeable battery powerful enough to run such commercial applications as hedge trimmers and lawn mowers. This product illustrates a(n)

Accepted Answer

A)  major innovation. 
B)  minor innovation. 
C)  modification. 
D)  innovative product. 
A)  major innovation. 
B)  minor innovation. 
C)  modification. 
D)  innovative product.

Question 3

Laboratory-oriented sources of new product opportunities include engineers, production supervisors, and scientists.

Accepted Answer

A) True 
 B)False

Question 4

When discontinuing a product, a firm must be sure to

Accepted Answer

A)  lower prices. 
B)  cut back on advertising. 
C)  notify customers and resellers to line up alternate suppliers. 
D)  reduce distribution outlets. 
A)  lower prices. 
B)  cut back on advertising. 
C)  notify customers and resellers to line up alternate suppliers. 
D)  reduce distribution outlets.

Question 5

The major objective of business analysis is to determine if a potential new product will meet its return on investment objectives.

Accepted Answer

A) True 
 B)False

Question 6

An extended fad product life-cycle pattern is characterized by

Accepted Answer

A)  a sharp decline in sales after a product's introduction. 
B)  high seasonal sales or a high fashion component. 
C)  residual sales that continue at a lower level than earlier sales. 
D)  a product that maintains sales over a long time period. 
A)  a sharp decline in sales after a product's introduction. 
B)  high seasonal sales or a high fashion component. 
C)  residual sales that continue at a lower level than earlier sales. 
D)  a product that maintains sales over a long time period.

Question 7

Which of these best illustrates a minor innovation?

Accepted Answer

A)  A modification of an existing product or an innovation that the consumer perceives as meaningful 
B)  An alteration in or extension of a firm's existing products 
C)  Items not previously marketed by any firm 
D)  Items not previously marketed by a firm that have been marketed by others 
A)  A modification of an existing product or an innovation that the consumer perceives as meaningful 
B)  An alteration in or extension of a firm's existing products 
C)  Items not previously marketed by any firm 
D)  Items not previously marketed by a firm that have been marketed by others

Question 8

a.	Explain the relationship between the adoption and diffusion processes.
b. How can a marketer use these concepts to increase the chances of success for a new product?

Accepted Answer

a. The adoption process refers to the de

Question 9

The growth stage of the product life cycle is characterized by

Accepted Answer

A)  a stable sales pattern. 
B)  high total and unit profitability. 
C)  the greatest degree of competition. 
D)  the greatest number of distribution outlets available. 
A)  a stable sales pattern. 
B)  high total and unit profitability. 
C)  the greatest degree of competition. 
D)  the greatest number of distribution outlets available.

Question 10

While the diffusion process analyzes an individual's behavior related to a new product, the adoption process studies the behavior of different groups.

Accepted Answer

A) True 
 B)False

Question 11

A firm seeks new product ideas from customers on the basis of focus group-based market research studies with current product users. The firm employs which idea generation method?

Accepted Answer

A)  Brainstorming 
B)  A market-orientation 
C)  A laboratory-orientation 
D)  Concept testing 
A)  Brainstorming 
B)  A market-orientation 
C)  A laboratory-orientation 
D)  Concept testing

Question 12

Preliminary testing revealed that production of a product prototype was much more costly and difficult than originally anticipated. The firm reached this conclusion in the business analysis stage of the new-product planning process.

Accepted Answer

A) True 
 B)False

Question 13

The test marketing stage is the first stage in the new-product planning process in which actual behavior is monitored and assessed.

Accepted Answer

A) True 
 B)False

Question 14

Competition is at its highest level in which product life-cycle stage?

Accepted Answer

A)  Introduction 
B)  Maturity 
C)  Growth 
D)  Decline 
A)  Introduction 
B)  Maturity 
C)  Growth 
D)  Decline

Question 15

Both market- and laboratory-oriented sources can be used to generate ideas for major innovations.

Accepted Answer

A) True 
 B)False

Question 16

A firm needs to consider the speed of acceptance by consumers and retailers, plan its overall marketing mix, and develop its positioning during which stage of the product life cycle?

Accepted Answer

A)  Product development 
B)  Business analysis 
C)  Test marketing 
D)  Commercialization 
A)  Product development 
B)  Business analysis 
C)  Test marketing 
D)  Commercialization

Question 17

A firm must go through all stages in the new-product planning process.

Accepted Answer

A) True 
 B)False

Question 18

It is important that participants in a brainstorming session be critical of each other's new product ideas.

Accepted Answer

A) True 
 B)False

Question 19

A product will have a rapid rate of adoption if

Accepted Answer

A)  product importance is high. 
B)  consumers have low discretionary income. 
C)  perceived risk is high and the product is a major innovation. 
D)  the product is compatible with current lifestyles. 
A)  product importance is high. 
B)  consumers have low discretionary income. 
C)  perceived risk is high and the product is a major innovation. 
D)  the product is compatible with current lifestyles.

Question 20

The Following Questions are linked to this scenario: A car wax company developed a new car wax that is particularly resistant to acid rain. The pollutants in acid rain can cause significant damage to a car's finish.
-The proposed car wax product would yield a 10 percent return on the firm's investment. The car wax manufacturer required a minimum of a 15 percent return to further consider the product. The new product can be best characterized as a(n)

Accepted Answer

A)  problem child 
B)  absolute product failure. 
C)  relative product failure. 
D)  comparative product failure. 
A)  problem child 
B)  absolute product failure. 
C)  relative product failure. 
D)  comparative product failure.

Exam 13: Conceiving, Developing, and Managing Products

Market-oriented sources of product ideas identify opportunities on the basis of consumer needs and wants.

A firm has applied for a new rechargeable battery powerful enough to run such commercial applications as hedge trimmers and lawn mowers. This product illustrates a(n)

Laboratory-oriented sources of new product opportunities include engineers, production supervisors, and scientists.

When discontinuing a product, a firm must be sure to

The major objective of business analysis is to determine if a potential new product will meet its return on investment objectives.

An extended fad product life-cycle pattern is characterized by

Which of these best illustrates a minor innovation?

a. Explain the relationship between the adoption and diffusion processes. b. How can a marketer use these concepts to increase the chances of success for a new product?

The growth stage of the product life cycle is characterized by

While the diffusion process analyzes an individual's behavior related to a new product, the adoption process studies the behavior of different groups.

A firm seeks new product ideas from customers on the basis of focus group-based market research studies with current product users. The firm employs which idea generation method?

Preliminary testing revealed that production of a product prototype was much more costly and difficult than originally anticipated. The firm reached this conclusion in the business analysis stage of the new-product planning process.

The test marketing stage is the first stage in the new-product planning process in which actual behavior is monitored and assessed.

Competition is at its highest level in which product life-cycle stage?

Both market- and laboratory-oriented sources can be used to generate ideas for major innovations.

A firm needs to consider the speed of acceptance by consumers and retailers, plan its overall marketing mix, and develop its positioning during which stage of the product life cycle?

A firm must go through all stages in the new-product planning process.

It is important that participants in a brainstorming session be critical of each other's new product ideas.

A product will have a rapid rate of adoption if

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