Exam 10: Developing and Managing Products

Which of the following statements best describes the product life cycle (PLC)?

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 2003.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 VMC Corporation.In which stage of their product life cycle are fishing lures most likely to be?

What typically happens at the beginning of the maturity stage of the product life cycle?

Victorinox has long manufactured Swiss Army knives.As a result of the attacks on the United States on 9/11 and resulting changes in airline security policies,the company experienced a decline of 30 percent in its sales.To compensate for this loss of sales,Victorinox developed a line of upscale Swiss Army watches.The Swiss Army brand gave the company credibility over other watch manufacturers and allowed the company to continue targeting sports-minded males between the ages of 18 and 35.Which strategies did Victorinox use to create new products?

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.Canesta is the pioneering firm in the field and is troubled by economic concerns.Production and promotional costs are high,and profits are negative.Such poor business performance is typical of firms in the introductory stage of the product life cycle.

A long-run drop in sales signals the beginning of which stage in the product life cycle?

A European dairy,which is famous for its rich ice creams,has introduced basil-,tomato-,fennel-,and oregano-flavoured ice creams. -Refer to Ice Cream.In the process of developing these new flavours,the dairy surveyed world-famous chefs to determine which non-traditional flavours had the greatest level of marketability.This survey would have happened during which stage of the product development process?

A company has learned members of its target market are likely to collect more information and evaluate more brands than early adopters.They are cautious and thoughtful and do not try the product without asking someone else.The customers' dominant characteristic is deliberateness.In terms of the diffusion process,who are these customers most likely to be?

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.com for $5.95. -Refer to Amusement Park Games.In terms of the new-product development process,what were Richardson's friends who encouraged him to put his ideas in a book involved in?

Profits typically reach their peak during the growth stage of the product life cycle.

Which tests evaluate new-product ideas usually before any prototype has been created?

When an existing product is targeted toward new market segments it is classified as which of the following?

The maker of Lysol disinfectant tested consumers' reactions to its Lysol Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads,make out a grocery list,and then "shop" in a mock store filled with real products,including the new cleaning product.What is this an example of?

There are five categories of adopters that participate in the diffusion process.Name and briefly describe each of these five categories in the correct order from earliest adopter to last adopter.

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.com for $5.95. -Refer to Amusement Park Games.Because the benefits of reading the book and employing its techniques are obvious to anyone who has ever attended a carnival,The Secrets of Amusement Park Games-Revealed can be said to exhibit which product characteristic?

The maker of Kandoo has added Kandoo Baby Wipes to its product line.Is this a new product?

The first filter in the new-product development process serves to eliminate new-product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason.What is the name for this filter?

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.A clean,flat surface is required for the virtual keyboard.There are five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product.Use these characteristics to predict the rate of acceptance and diffusion of the Canesta virtual keyboard.

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product. -Refer to Music Industry.The time from the 1940s through the 1960s corresponds to which stage of the product life cycle for phonograph records?

What is the length of the introductory stage of the product life cycle for a new product largely determined by?