Question 1

Which of the following statements best explains why idea screening may be the most important step of new product development?

Accepted Answer

A)  It increases the number of ideas generated. 
B)  It provides an opportunity for the marketer to test the prototype in a simulated market. 
C)  It helps forecast the products' sales and profits accurately for a specific period. 
D)  It gives research and development team members an opportunity to gather consumer feedback. 
E)  It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable. 
A)  It increases the number of ideas generated. 
B)  It provides an opportunity for the marketer to test the prototype in a simulated market. 
C)  It helps forecast the products' sales and profits accurately for a specific period. 
D)  It gives research and development team members an opportunity to gather consumer feedback. 
E)  It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

Question 2

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

Accepted Answer

A)  growth 
B)  decline 
C)  maturity 
D)  product development 
E)  adoption 
A)  growth 
B)  decline 
C)  maturity 
D)  product development 
E)  adoption

Question 3

Why are customers often considered the most important sources of new product ideas?

Accepted Answer

A)  Customers are close to the market and can pass along information about problems and new product possibilities. 
B)  The company can analyze customer questions and complaints to find new products that better solve consumer problems. 
C)  Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase. 
D)  Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives. 
E)  Customers estimate the minimum and maximum sales to assess the range of risk. 
A)  Customers are close to the market and can pass along information about problems and new product possibilities. 
B)  The company can analyze customer questions and complaints to find new products that better solve consumer problems. 
C)  Customers buy competing new products, take them apart to see how they work, analyze sales, and then decide to purchase. 
D)  Customers review the sales, costs, and profit projections for a new product to find out whether the product satisfies the company's objectives. 
E)  Customers estimate the minimum and maximum sales to assess the range of risk.

Question 4

A company introducing a product that is similar to its competitors' product will do a complete test market to gain maximum information before product introduction.

Accepted Answer

A) True 
 B)False

Question 5

________ is the product life cycle period when sales fall off and profits drop.

Accepted Answer

A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline 
E)  Product development 
A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline 
E)  Product development

Question 6

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle.

Accepted Answer

A)  introduction 
B)  growth 
C)  maturity 
D)  decline 
E)  adoption 
A)  introduction 
B)  growth 
C)  maturity 
D)  decline 
E)  adoption

Question 7

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.

Accepted Answer

A)  new product development 
B)  acquisition 
C)  joint venture 
D)  licensing contract 
E)  divestment 
A)  new product development 
B)  acquisition 
C)  joint venture 
D)  licensing contract 
E)  divestment

Question 8

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

Accepted Answer

A)  growth 
B)  decline 
C)  maturity 
D)  introduction 
E)  adoption 
A)  growth 
B)  decline 
C)  maturity 
D)  introduction 
E)  adoption

Question 9

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

Accepted Answer

A)  clearly assigns responsibility for the process to a single department 
B)  yields a larger number of new product ideas 
C)  guarantees successful products 
D)  frees up senior management time 
E)  requires less budget support 
A)  clearly assigns responsibility for the process to a single department 
B)  yields a larger number of new product ideas 
C)  guarantees successful products 
D)  frees up senior management time 
E)  requires less budget support

Question 10

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

Accepted Answer

A)  when the new product requires a major investment 
B)  when management lacks confidence in the new product 
C)  when management lacks confidence in the marketing strategy 
D)  when the product has no substitutes and is new in its category 
E)  when the costs of developing and introducing the product are low 
A)  when the new product requires a major investment 
B)  when management lacks confidence in the new product 
C)  when management lacks confidence in the marketing strategy 
D)  when the product has no substitutes and is new in its category 
E)  when the costs of developing and introducing the product are low

Question 11

As long as a product is not identical to a competitor's product offering, a company can introduce, market and sell it without penalty.

Accepted Answer

A) True 
 B)False

Question 12

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Accepted Answer

A) True 
 B)False

Question 13

Product improvements, product modifications, and original products can all be classified as ________.

Accepted Answer

A)  blueprints 
B)  new products 
C)  prototypes 
D)  product extensions 
E)  test products 
A)  blueprints 
B)  new products 
C)  prototypes 
D)  product extensions 
E)  test products

Question 14

Which of the following is included in the third part of the marketing strategy statement?

Accepted Answer

A)  the planned value proposition 
B)  distribution strategy 
C)  the product's planned price 
D)  marketing budget 
E)  the planned long-run sales 
A)  the planned value proposition 
B)  distribution strategy 
C)  the product's planned price 
D)  marketing budget 
E)  the planned long-run sales

Question 15

Who can pass along information about new concepts or techniques to use in new products?

Accepted Answer

A)  competitors 
B)  salespeople 
C)  customers 
D)  suppliers 
E)  distribution channels 
A)  competitors 
B)  salespeople 
C)  customers 
D)  suppliers 
E)  distribution channels

Question 16

Which of the following best characterizes the decline stage of product development?

Accepted Answer

A)  rapid market acceptance 
B)  slow sales growth 
C)  sales and profits decline 
D)  high investment costs 
E)  increasing profits 
A)  rapid market acceptance 
B)  slow sales growth 
C)  sales and profits decline 
D)  high investment costs 
E)  increasing profits

Question 17

Many companies have developed ________ programs that encourage employees to develop new product ideas.

Accepted Answer

A)  management 
B)  incentive 
C)  entrepreneurial 
D)  intrapreneurial 
E)  crowdsourcing 
A)  management 
B)  incentive 
C)  entrepreneurial 
D)  intrapreneurial 
E)  crowdsourcing

Question 18

Why are ad expenditures high for products in the introduction stage of the PLC?

Accepted Answer

Consumers have very little awa

Question 19

Refer to the scenario below to answer the following question(s).
Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many electronic toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was shaped like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 7 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's racecars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Evelyn's vacuum is at the ________ stage of the product life cycle.

Accepted Answer

A)  product development 
B)  introduction 
C)  growth 
D)  decline 
E)  maturity 
A)  product development 
B)  introduction 
C)  growth 
D)  decline 
E)  maturity

Question 20

New product development starts with ________.

Accepted Answer

A)  concept development 
B)  idea screening 
C)  idea generation 
D)  concept testing 
E)  test marketing 
A)  concept development 
B)  idea screening 
C)  idea generation 
D)  concept testing 
E)  test marketing

Which of the following statements best explains why idea screening may be the most important step of new product development?

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

Why are customers often considered the most important sources of new product ideas?

A company introducing a product that is similar to its competitors' product will do a complete test market to gain maximum information before product introduction.

________ is the product life cycle period when sales fall off and profits drop.

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

As long as a product is not identical to a competitor's product offering, a company can introduce, market and sell it without penalty.

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Product improvements, product modifications, and original products can all be classified as ________.

Which of the following is included in the third part of the marketing strategy statement?

Who can pass along information about new concepts or techniques to use in new products?

Which of the following best characterizes the decline stage of product development?

Many companies have developed ________ programs that encourage employees to develop new product ideas.

Why are ad expenditures high for products in the introduction stage of the PLC?

New product development starts with ________.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Pricing: Understanding and Capturing Customer Value

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters

Exam 9: Developing New Products and Managing the Product Life Cycle

Which of the following statements best explains why idea screening may be the most important step of new product development?

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

Why are customers often considered the most important sources of new product ideas?

A company introducing a product that is similar to its competitors' product will do a complete test market to gain maximum information before product introduction.

________ is the product life cycle period when sales fall off and profits drop.

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

As long as a product is not identical to a competitor's product offering, a company can introduce, market and sell it without penalty.

Most successful products are immediately accepted, and quickly move to the growth stage of the PLC.

Product improvements, product modifications, and original products can all be classified as ________.

Which of the following is included in the third part of the marketing strategy statement?

Who can pass along information about new concepts or techniques to use in new products?

Which of the following best characterizes the decline stage of product development?

Many companies have developed ________ programs that encourage employees to develop new product ideas.

Why are ad expenditures high for products in the introduction stage of the PLC?

New product development starts with ________.

Marketing: Creating Customer Value and Engagement

Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships

Analyzing the Marketing Environment

Managing Marketing Information to Gain Customer Insights

Consumer Markets and Buyer Behavior

Business Markets and Business Buyer Behavior

Customer Value-Driven Marketing Strategy: Creating Value for Target Customers

Products, Services, and Brands: Building Customer Value

Pricing: Understanding and Capturing Customer Value

Pricing Strategies: Additional Considerations

Marketing Channels: Delivering Customer Value

Retailing and Wholesaling

Engaging Consumers and Communicating Customer Value: Integrated Marketing Communications Strategy

Advertising and Public Relations

Personal Selling and Sales Promotion

Direct, Online, Social Media, and Mobile Marketing

Creating Competitive Advantage

The Global Marketplace

Sustainable Marketing: Social Responsibility and Ethics

Filters