Question 1

An automobile firm is positioning its product to serve only a specific group of brand loyalists.This shows that the particular product is in the:

Accepted Answer

A) maturation stage of its life cycle. 
B) growth stage of its life cycle. 
C) decline stage of its life cycle. 
D) introduction stage of its life cycle. 
E) levelling stage of its life cycle. 
A) maturation stage of its life cycle. 
B) growth stage of its life cycle. 
C) decline stage of its life cycle. 
D) introduction stage of its life cycle. 
E) levelling stage of its life cycle. C

Question 2

Scott wants to buy a cell phone that operates with the Android operating system (OS), but he decides to wait until more cell phone companies release models with the Android OS.This way, a lot of user reviews would be available and the details about the drawbacks of the OS would also be available.From this scenario, we can say that Scott belongs to the group of buyers called:

Accepted Answer

A) innovators. 
B) laggards. 
C) late majority. 
D) early majority. 
E) late adopters. 
A) innovators. 
B) laggards. 
C) late majority. 
D) early majority. 
E) late adopters. D

Question 3

The manager of a product design company has brought together a group of technical engineers to generate ideas for potential new products.These engineers will arrive at a final decision through a vote on the best ideas or combinations of ideas.This group is engaging in:

Accepted Answer

A) prototyping. 
B) interviewing. 
C) reverse engineering. 
D) brainstorming. 
E) licensing. 
A) prototyping. 
B) interviewing. 
C) reverse engineering. 
D) brainstorming. 
E) licensing. D

Question 4

The most challenging part of applying the product life cycle concept is that managers do not know exactly how long each stage of the cycle will last.

Accepted Answer

A) True 
 B)False

Question 5

An automobile firm wants to introduce its cars into new international markets to increase its customer base.Since it does not know about customer needs in these markets, it associates itself with local firms that have developed prototypes based on the customer needs of these markets.The method of idea generation used by the automobile firm is:

Accepted Answer

A) licensing. 
B) customer research. 
C) internal research. 
D) reverse engineering. 
E) brainstorming. 
A) licensing. 
B) customer research. 
C) internal research. 
D) reverse engineering. 
E) brainstorming.

Question 6

The method of testing that requires potential consumers to examine a product prototype in a real-use setting is known as:

Accepted Answer

A) conclusive research. 
B) beta testing. 
C) concept testing. 
D) alpha testing. 
E) reverse engineering. 
A) conclusive research. 
B) beta testing. 
C) concept testing. 
D) alpha testing. 
E) reverse engineering.

Question 7

Ronen, a chef working for a prestigious restaurant, has come up with an idea for a new dish.The owner of the restaurant, Jean, is impressed with the new recipe and asks all the other chefs of the restaurant to practice making the new dish for three months until they can reproduce the recipe with the exact taste the owner is looking for.The chefs also test the dish on other restaurant staff before introducing it to customers.The source of idea generation used by Jean is:

Accepted Answer

A) brainstorming. 
B) internal research and development. 
C) customer research. 
D) licensing. 
E) reverse engineering and development. 
A) brainstorming. 
B) internal research and development. 
C) customer research. 
D) licensing. 
E) reverse engineering and development.

Question 8

Taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist, most accurately defines the term:

Accepted Answer

A) prototyping. 
B) reverse engineering. 
C) concept testing. 
D) brainstorming. 
E) alpha testing. 
A) prototyping. 
B) reverse engineering. 
C) concept testing. 
D) brainstorming. 
E) alpha testing.

Question 9

YumBurgerz, a fast-food outlet, introduced new burgers made with cheese that had low fat content without compromising their taste.This ingredient brought down the price of the burgers and the burgers were an instant success in the market.Which of the following factors was responsible for the quick diffusion of these burgers?

Accepted Answer

A) High compatibility 
B) Complexity 
C) Trialability 
D) Observability 
E) Relative advantage 
A) High compatibility 
B) Complexity 
C) Trialability 
D) Observability 
E) Relative advantage

Question 10

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a stage in the product life cycle that is characterized by an increase in sales, rapid increase in profits, and few but increasing number of competitors?

Accepted Answer

A) The growth stage 
B) The introduction stage 
C) The maturity stage 
D) The levelling stage 
E) The decline stage 
A) The growth stage 
B) The introduction stage 
C) The maturity stage 
D) The levelling stage 
E) The decline stage

Question 12

Zapper Products Corp., a system integration services company, provides a pay-per-use option for its business customers that allows them to understand its product's capabilities before they order licensed versions on a large scale.This option has made Zapper Products Corp.extremely popular with smaller firms that plan to invest on information technology infrastructure but have limited funds.The factor that is contributing to the success of Techno Products Corp.is:

Accepted Answer

A) compatibility. 
B) complexity. 
C) relative advantage. 
D) observability. 
E) trialability. 
A) compatibility. 
B) complexity. 
C) relative advantage. 
D) observability. 
E) trialability.

Question 13

Which of the following is an advantage for product pioneers in new product introductions?

Accepted Answer

A) They make high profits as soon as they enter a market. 
B) They become readily recognizable to consumers. 
C) They have to share a market with very few competitors that have monopoly power. 
D) They always succeed in a marketplace because of lack of competition. 
E) They need not focus on creating demand for a product category. 
A) They make high profits as soon as they enter a market. 
B) They become readily recognizable to consumers. 
C) They have to share a market with very few competitors that have monopoly power. 
D) They always succeed in a marketplace because of lack of competition. 
E) They need not focus on creating demand for a product category.

Question 14

Customers are more likely to try a new gum flavour.Therefore, new gum flavour diffuse quickly.Which of the following factor explains the diffusion speed?

Accepted Answer

A) Relative advantage 
B) Compatibility 
C) Observability 
D) Complexity 
E) Pioneers 
A) Relative advantage 
B) Compatibility 
C) Observability 
D) Complexity 
E) Pioneers

Question 15

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

Accepted Answer

Relative advantage is a product characte

Question 16

Innovative product users who modify existing products according to their own ideas to suit their specific needs are called:

Accepted Answer

A) pioneers. 
B) lead users. 
C) innovators. 
D) laggards. 
E) early adopters. 
A) pioneers. 
B) lead users. 
C) innovators. 
D) laggards. 
E) early adopters.

Question 17

A group of scientists in a pharmaceutical firm are conducting trials of a new formula they have developed to be used in a drug in the research and development unit of the firm.This method of testing a product prototype is best categorized as:

Accepted Answer

A) beta testing. 
B) test marketing. 
C) premarket testing. 
D) concept testing. 
E) alpha testing. 
A) beta testing. 
B) test marketing. 
C) premarket testing. 
D) concept testing. 
E) alpha testing.

Question 18

Firms either position themselves for a niche market of loyal consumers or they exit the market during the:

Accepted Answer

A) introduction stage of the product life cycle. 
B) levelling stage of the product life cycle. 
C) maturity stage of the product life cycle. 
D) growth stage of the product life cycle. 
E) decline stage of the product life cycle. 
A) introduction stage of the product life cycle. 
B) levelling stage of the product life cycle. 
C) maturity stage of the product life cycle. 
D) growth stage of the product life cycle. 
E) decline stage of the product life cycle.

Question 19

LuxSpeed Inc.is a car manufacturing firm.It is experiencing a decline in the sales of a model released in the 1990s.At this stage, LuxSpeed Inc.should focus all its marketing efforts toward:

Accepted Answer

A) producing new variations of the model. 
B) increasing the number of users and the frequency of use for the model. 
C) developing new uses for the model. 
D) altering the appearance of the model. 
E) targeting a particular segment of brand loyalists interested in the model. 
A) producing new variations of the model. 
B) increasing the number of users and the frequency of use for the model. 
C) developing new uses for the model. 
D) altering the appearance of the model. 
E) targeting a particular segment of brand loyalists interested in the model.

Question 20

A manufacturing firm has recently launched a new product and has no competitors in the market.Innovators have started buying the product.In the context of the product life cycle, the product is in the:

Accepted Answer

A) growth stage 
B) maturity stage 
C) introduction stage 
D) decline stage 
E) levelling stage 
A) growth stage 
B) maturity stage 
C) introduction stage 
D) decline stage 
E) levelling stage

An automobile firm is positioning its product to serve only a specific group of brand loyalists.This shows that the particular product is in the:

The manager of a product design company has brought together a group of technical engineers to generate ideas for potential new products.These engineers will arrive at a final decision through a vote on the best ideas or combinations of ideas.This group is engaging in:

The most challenging part of applying the product life cycle concept is that managers do not know exactly how long each stage of the cycle will last.

The method of testing that requires potential consumers to examine a product prototype in a real-use setting is known as:

Taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist, most accurately defines the term:

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

Which of the following is a stage in the product life cycle that is characterized by an increase in sales, rapid increase in profits, and few but increasing number of competitors?

Which of the following is an advantage for product pioneers in new product introductions?

Customers are more likely to try a new gum flavour.Therefore, new gum flavour diffuse quickly.Which of the following factor explains the diffusion speed?

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

Innovative product users who modify existing products according to their own ideas to suit their specific needs are called:

A group of scientists in a pharmaceutical firm are conducting trials of a new formula they have developed to be used in a drug in the research and development unit of the firm.This method of testing a product prototype is best categorized as:

Firms either position themselves for a niche market of loyal consumers or they exit the market during the:

LuxSpeed Inc.is a car manufacturing firm.It is experiencing a decline in the sales of a model released in the 1990s.At this stage, LuxSpeed Inc.should focus all its marketing efforts toward:

A manufacturing firm has recently launched a new product and has no competitors in the market.Innovators have started buying the product.In the context of the product life cycle, the product is in the:

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Consumer Behaviour

Business-To-Business Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Services: The Intangible Product

Pricing Concepts and Strategies: Establishing Value

Distribution Channels

Retailing and Omni-Channel Marketing

Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Global Marketing

Ethics and Socially Responsible Marketing

Filters

Exam 8: Developing New Products

An automobile firm is positioning its product to serve only a specific group of brand loyalists.This shows that the particular product is in the:

The manager of a product design company has brought together a group of technical engineers to generate ideas for potential new products.These engineers will arrive at a final decision through a vote on the best ideas or combinations of ideas.This group is engaging in:

The most challenging part of applying the product life cycle concept is that managers do not know exactly how long each stage of the cycle will last.

The method of testing that requires potential consumers to examine a product prototype in a real-use setting is known as:

Taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents, if any exist, most accurately defines the term:

Although innovation strategies may not work in the long run, overriding short-term reasons compel firms to introduce new products and services.

Which of the following is a stage in the product life cycle that is characterized by an increase in sales, rapid increase in profits, and few but increasing number of competitors?

Which of the following is an advantage for product pioneers in new product introductions?

Customers are more likely to try a new gum flavour.Therefore, new gum flavour diffuse quickly.Which of the following factor explains the diffusion speed?

What is relative advantage? Give an example of how relative advantage can influence the speed of diffusion.

Innovative product users who modify existing products according to their own ideas to suit their specific needs are called:

A group of scientists in a pharmaceutical firm are conducting trials of a new formula they have developed to be used in a drug in the research and development unit of the firm.This method of testing a product prototype is best categorized as:

Firms either position themselves for a niche market of loyal consumers or they exit the market during the:

LuxSpeed Inc.is a car manufacturing firm.It is experiencing a decline in the sales of a model released in the 1990s.At this stage, LuxSpeed Inc.should focus all its marketing efforts toward:

A manufacturing firm has recently launched a new product and has no competitors in the market.Innovators have started buying the product.In the context of the product life cycle, the product is in the:

Overview of Marketing

Developing Marketing Strategies and a Marketing Plan

Analyzing the Marketing Environment

Consumer Behaviour

Business-To-Business Marketing

Segmentation, Targeting, and Positioning

Marketing Research

Product, Branding, and Packaging Decisions

Services: The Intangible Product

Pricing Concepts and Strategies: Establishing Value

Distribution Channels

Retailing and Omni-Channel Marketing

Integrated Marketing Communications

Advertising, Sales Promotions, and Personal Selling

Social and Mobile Marketing

Global Marketing

Ethics and Socially Responsible Marketing

Filters