Question 1

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 2

New-product development usually fits into the old routines of a firm,so it is not necessary for top management to support new-product development in any special way.

Accepted Answer

A) True 
 B)False

Question 3

Regarding product life cycles,good marketing managers know that

Accepted Answer

A) all competitors lose money during the sales decline stage. 
B) they are getting longer and profit margins are widening. 
C) industry sales reach their maximum during the market growth stage. 
D) firms earn their biggest profits during the market introduction stage. 
E) industry profits reach their maximum during the market growth stage. 
A) all competitors lose money during the sales decline stage. 
B) they are getting longer and profit margins are widening. 
C) industry sales reach their maximum during the market growth stage. 
D) firms earn their biggest profits during the market introduction stage. 
E) industry profits reach their maximum during the market growth stage.

Question 4

What is the focus of promotional activity during the market growth stage?

Accepted Answer

A) persuading 
B) reminding 
C) building primary demand 
D) pioneering 
E) penetration 
A) persuading 
B) reminding 
C) building primary demand 
D) pioneering 
E) penetration

Question 5

To be called "new" according to the FTC,a product must be entirely new or changed in a functionally significant or substantial respect.

Accepted Answer

A) True 
 B)False

Question 6

Midway,Inc.has seen most of its competitors drop out of its product-market due to declining industry sales and profits.But Midway still has considerable demand for its product from a small group of loyal customers.This product-market is in which product life-cycle stage?

Accepted Answer

A) market introduction 
B) market maturity 
C) market development 
D) market growth 
E) sales decline 
A) market introduction 
B) market maturity 
C) market development 
D) market growth 
E) sales decline

Question 7

If an individual is injured by a defective or unsafely designed product,the seller's legal obligation to pay damages is called product liability.

Accepted Answer

A) True 
 B)False

Question 8

In the market growth stage of the product life cycle,firms usually earn smaller profits than they did in the market introduction stage,because new competitors enter the market.

Accepted Answer

A) True 
 B)False

Question 9

Successful companies

Accepted Answer

A) leave the new-product development process to anyone who happens to be interested in taking the initiative. 
B) leave the new-product development process only to someone from the sales department. 
C) put a person,a team,or a department in charge of the new-product development process. 
D) do not allow top-level management to get involved in the new-product development process. 
E) do not put anyone in charge of the new-product development process. 
A) leave the new-product development process to anyone who happens to be interested in taking the initiative. 
B) leave the new-product development process only to someone from the sales department. 
C) put a person,a team,or a department in charge of the new-product development process. 
D) do not allow top-level management to get involved in the new-product development process. 
E) do not put anyone in charge of the new-product development process.

Question 10

The stage of the product life cycle characterized by informative promotion but little customer awareness of a product is

Accepted Answer

A) market introduction. 
B) market growth. 
C) market maturity. 
D) sales decline. 
E) market extinction. 
A) market introduction. 
B) market growth. 
C) market maturity. 
D) sales decline. 
E) market extinction.

Question 11

The product life cycle is the four stages a new product idea goes through from beginning to end.

Accepted Answer

A) True 
 B)False

Question 12

An industry's sales have leveled off and profits are declining in oligopolistic competition.Consumers see competing products as homogeneous.Several firms have dropped out of the industry,but a new one entered recently.Firms in the industry are trying to avoid price-cutting by spending on persuasive advertising.These firms are competing in which stage of the product life cycle?

Accepted Answer

A) market growth 
B) market maturity 
C) market development 
D) market introduction 
E) sales decline 
A) market growth 
B) market maturity 
C) market development 
D) market introduction 
E) sales decline

Question 13

Regarding the new-product development process,which of the following is true?

Accepted Answer

A) The hypothesis tested is that the new product idea will not be profitable. 
B) A gradual "rollout" of the product-region by region-allows for more market testing. 
C) Concept tests are done before any physical models are produced. 
D) Likely ROI should be estimated throughout the process,to force the new idea to prove itself. 
E) All these answers are correct. 
A) The hypothesis tested is that the new product idea will not be profitable. 
B) A gradual "rollout" of the product-region by region-allows for more market testing. 
C) Concept tests are done before any physical models are produced. 
D) Likely ROI should be estimated throughout the process,to force the new idea to prove itself. 
E) All these answers are correct.

Question 14

When moving into the market maturity stage of the product life cycle,a firm might be able to obtain a competitive advantage

Accepted Answer

A) with lower production costs. 
B) by being more successful at promotion. 
C) by having a slightly better product than competitors. 
D) All these answers are correct. 
A) with lower production costs. 
B) by being more successful at promotion. 
C) by having a slightly better product than competitors. 
D) All these answers are correct.

Question 15

Because firms must be developing new products all the time,which of the following statements is true?

Accepted Answer

A) Competitors are likely to rapidly introduce product improvements in the market growth stage. 
B) The developed economies experience technological advances more rapidly than the less-developed economies. 
C) Although the life of different products varies,product life cycles are getting shorter. 
D) One new invention may make possible many new products to replace old ones. 
E) All these answers are correct. 
A) Competitors are likely to rapidly introduce product improvements in the market growth stage. 
B) The developed economies experience technological advances more rapidly than the less-developed economies. 
C) Although the life of different products varies,product life cycles are getting shorter. 
D) One new invention may make possible many new products to replace old ones. 
E) All these answers are correct.

Question 16

During the market introduction stage of the product life cycle,

Accepted Answer

A) large profits are typical until competition arrives. 
B) Price and Promotion are more important than Place and Product. 
C) all forms of expenditure on Place and Promotion are put on hold. 
D) much money is spent for Product,Place,and Promotion. 
E) most customers are looking for the new product. 
A) large profits are typical until competition arrives. 
B) Price and Promotion are more important than Place and Product. 
C) all forms of expenditure on Place and Promotion are put on hold. 
D) much money is spent for Product,Place,and Promotion. 
E) most customers are looking for the new product.

Question 17

When a firm's product has won loyal customers,it can be successful for a long time-even in a mature or declining market.

Accepted Answer

A) True 
 B)False

Question 18

Fashion-related products tend to have short life cycles.

Accepted Answer

A) True 
 B)False

Question 19

Lisa wants to book a hotel suite at Luxury International and looks up the company website for information about the range of services offered,the prices,the hours of operation,the phone number,and the address.She makes a phone call to the hotel,which is promptly answered by the front office.A few days later the bellman opens the door and takes Lisa's luggage,and the concierge helps her make a dinner reservation.Each of these contacts with Luxury International is called a(n)

Accepted Answer

A) point of contact. 
B) corporate interface. 
C) touchpoint. 
D) contact opportunity. 
E) opportunism. 
A) point of contact. 
B) corporate interface. 
C) touchpoint. 
D) contact opportunity. 
E) opportunism.

Question 20

The product life cycle concept tells a manager how long each stage of the cycle will last.

Accepted Answer

A) True 
 B)False

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

New-product development usually fits into the old routines of a firm,so it is not necessary for top management to support new-product development in any special way.

Regarding product life cycles,good marketing managers know that

What is the focus of promotional activity during the market growth stage?

To be called "new" according to the FTC,a product must be entirely new or changed in a functionally significant or substantial respect.

Midway,Inc.has seen most of its competitors drop out of its product-market due to declining industry sales and profits.But Midway still has considerable demand for its product from a small group of loyal customers.This product-market is in which product life-cycle stage?

If an individual is injured by a defective or unsafely designed product,the seller's legal obligation to pay damages is called product liability.

In the market growth stage of the product life cycle,firms usually earn smaller profits than they did in the market introduction stage,because new competitors enter the market.

Successful companies

The stage of the product life cycle characterized by informative promotion but little customer awareness of a product is

The product life cycle is the four stages a new product idea goes through from beginning to end.

Regarding the new-product development process,which of the following is true?

When moving into the market maturity stage of the product life cycle,a firm might be able to obtain a competitive advantage

Because firms must be developing new products all the time,which of the following statements is true?

During the market introduction stage of the product life cycle,

When a firm's product has won loyal customers,it can be successful for a long time-even in a mature or declining market.

Fashion-related products tend to have short life cycles.

The product life cycle concept tells a manager how long each stage of the cycle will last.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotionintroduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters

Exam 9: Product Management and New-Product Development

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

New-product development usually fits into the old routines of a firm,so it is not necessary for top management to support new-product development in any special way.

Regarding product life cycles,good marketing managers know that

What is the focus of promotional activity during the market growth stage?

To be called "new" according to the FTC,a product must be entirely new or changed in a functionally significant or substantial respect.

Midway,Inc.has seen most of its competitors drop out of its product-market due to declining industry sales and profits.But Midway still has considerable demand for its product from a small group of loyal customers.This product-market is in which product life-cycle stage?

If an individual is injured by a defective or unsafely designed product,the seller's legal obligation to pay damages is called product liability.

In the market growth stage of the product life cycle,firms usually earn smaller profits than they did in the market introduction stage,because new competitors enter the market.

Successful companies

The stage of the product life cycle characterized by informative promotion but little customer awareness of a product is

The product life cycle is the four stages a new product idea goes through from beginning to end.

Regarding the new-product development process,which of the following is true?

When moving into the market maturity stage of the product life cycle,a firm might be able to obtain a competitive advantage

Because firms must be developing new products all the time,which of the following statements is true?

During the market introduction stage of the product life cycle,

When a firm's product has won loyal customers,it can be successful for a long time-even in a mature or declining market.

Fashion-related products tend to have short life cycles.

The product life cycle concept tells a manager how long each stage of the cycle will last.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotionintroduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters