Question 1

Which of the following statements about pioneers,second-movers,and followers is FALSE?

Accepted Answer

A) A pioneer is the first to market with a new product idea. 
B) On average,pioneers are usually more profitable than followers. 
C) Second-movers typically have a strong customer focus. 
D) Second-movers that respond quickly build market share in the market growth stage. 
A) A pioneer is the first to market with a new product idea. 
B) On average,pioneers are usually more profitable than followers. 
C) Second-movers typically have a strong customer focus. 
D) Second-movers that respond quickly build market share in the market growth stage.

Question 2

Which of the following activities is typical of the screening stage?

Accepted Answer

A) Goods have to be produced to fill the channels of distribution. 
B) People must be hired and trained to provide services. 
C) Manufacturing or service facilities have to be set up. 
D) Strengths,Weaknesses,Opportunities,and Threats are identified. 
E) Products are introduced region by region in a gradual "rollout." 
A) Goods have to be produced to fill the channels of distribution. 
B) People must be hired and trained to provide services. 
C) Manufacturing or service facilities have to be set up. 
D) Strengths,Weaknesses,Opportunities,and Threats are identified. 
E) Products are introduced region by region in a gradual "rollout."

Question 3

Regarding product life cycles,which of the following is true?

Accepted Answer

A) Industry sales and profits tend to reach their maximum during the market maturity stage. 
B) Product life cycles are industry sales and profits within some product-market. 
C) Product life cycles are generally getting shorter and cannot be extended. 
D) Every new brand must pass through all four stages of the product life cycle. 
E) All these answers are correct. 
A) Industry sales and profits tend to reach their maximum during the market maturity stage. 
B) Product life cycles are industry sales and profits within some product-market. 
C) Product life cycles are generally getting shorter and cannot be extended. 
D) Every new brand must pass through all four stages of the product life cycle. 
E) All these answers are correct.

Question 4

A new-product development process helps make sure that new ideas for products are carefully studied and that good ideas are marketed profitably.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following gives the correct order of the steps in the new-product development process?

Accepted Answer

A) screening,idea generation,idea evaluation,development,commercialization 
B) idea generation,screening,idea evaluation,development,commercialization 
C) idea generation,idea evaluation,development,screening,commercialization 
D) development,idea generation,screening,commercialization,idea evaluation 
E) commercialization,idea generation,idea evaluation,screening,development 
A) screening,idea generation,idea evaluation,development,commercialization 
B) idea generation,screening,idea evaluation,development,commercialization 
C) idea generation,idea evaluation,development,screening,commercialization 
D) development,idea generation,screening,commercialization,idea evaluation 
E) commercialization,idea generation,idea evaluation,screening,development

Question 6

Which of the following is a common cause of new-product failures?

Accepted Answer

A) The product fails to offer the customer a unique benefit. 
B) The company tries to follow an organized new-product development process rather than using a faster and more spontaneous "race-to-market" approach. 
C) The managers worry too much about the competition. 
D) The company delays putting the product on the market until it develops a complete marketing plan. 
E) All these answers are correct. 
A) The product fails to offer the customer a unique benefit. 
B) The company tries to follow an organized new-product development process rather than using a faster and more spontaneous "race-to-market" approach. 
C) The managers worry too much about the competition. 
D) The company delays putting the product on the market until it develops a complete marketing plan. 
E) All these answers are correct.

Question 7

During the sales decline stage of the product life cycle,

Accepted Answer

A) good product differentiation is profitable. 
B) across the board,no profits are earned. 
C) price competition usually declines. 
D) brand loyalty declines rapidly. 
E) monopoly is a typical end result. 
A) good product differentiation is profitable. 
B) across the board,no profits are earned. 
C) price competition usually declines. 
D) brand loyalty declines rapidly. 
E) monopoly is a typical end result.

Question 8

Which of the following statements about the stages of the product life cycle is FALSE?

Accepted Answer

A) The market introduction stage can be seen as investing in the future. 
B) In the market growth stage,profits keep rising steadily with no sign of decline. 
C) Sales level off and profits continue to go down in the market maturity stage. 
D) The sales decline stage can be seen as a time of replacement. 
E) Industry profits go down throughout the market maturity stage. 
A) The market introduction stage can be seen as investing in the future. 
B) In the market growth stage,profits keep rising steadily with no sign of decline. 
C) Sales level off and profits continue to go down in the market maturity stage. 
D) The sales decline stage can be seen as a time of replacement. 
E) Industry profits go down throughout the market maturity stage.

Question 9

When introducing a really new product,the marketer should be concerned about building channels of distribution but not about promotion.

Accepted Answer

A) True 
 B)False

Question 10

The sales and profits of an individual brand may or may not follow the life-cycle pattern of the product idea.

Accepted Answer

A) True 
 B)False

Question 11

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called

Accepted Answer

A) product responsibility. 
B) breach of warranty. 
C) rule of reason. 
D) product liability. 
E) design enforcement. 
A) product responsibility. 
B) breach of warranty. 
C) rule of reason. 
D) product liability. 
E) design enforcement.

Question 12

The two keys to improving how people implement quality service are: (1)training and (2)more inspectors.

Accepted Answer

A) True 
 B)False

Question 13

Sales and profits usually move together over time during the product life cycle.

Accepted Answer

A) True 
 B)False

Question 14

Use this information for questions that refer to the Wire Products Inc.(WPI)case. Rob Rose sat back to review the portfolio of products his company,Wire Products Inc.(WPI),has in its product line.The company specializes in making various products for consumer and industrial uses from hard laminated wire that is coated with special paints.
1)WPI's Wire Closet products have been on the market for 10 years.Consumers install the wire shelves and closet rods themselves.The market leader,Closetmaid,has been selling similar products for more than 20 years,but so far the sales volume and profits for the market have continued to grow.Recently,several new competitors have come into the market.
2)Three months ago,WPI entered the lawn and garden market with folding fences made with laminated wire and branded as Wire Fold-Fence.Previously,WPI had never made fences or been a player in the lawn and garden market-although other companies have been making products in this market for years.However,Rob Rose has discovered that recent sales of wire garden fencing have leveled off and profits are declining overall.Still,WPI thinks it has some cost advantages and can grow its own sales and profits in this market.
3)WPI has just developed Oil Wire,a new concept for the environmental cleanup market.Oil Wire is coated with a special material that cleans up oil spills.There has never been a product like this and WPI wants to quickly get the word out about its benefits.The product is now being rolled out in selective markets.
4)Another business product is Wire Locker,used for secure storage by gymnasiums or companies.This style of locker has now gone out of fashion,and most customers are finding better materials to use for lockers.Aggressive selling has helped Wire Locker's sales stay flat,but the total market for wire-style lockers is only half what it was 10 years ago.
5)WPI's Wire Window product is used as a security product to protect glass windows.It sells to homeowners and retailers looking for additional safety.WPI's sales of this product have dropped in recent years because competitors have introduced maintenance-free products.However,the overall market for this type of product continues to show good growth.
6)WPI is running concept tests of a new wire car-top carrier called Wire Car Top.There are other car-top carrier products on the market,but WPI plans to include options in its carrier that will make it easier to load bikes,skis,and suitcases.Wire Car Top is also very easy to put on and take off of the car because of its light weight and ease-of-use features.The concept tests are helping WPI analysts develop rough estimates of costs,sales,and profits.
7)Another new-product idea,tentatively called Wire Tent,is being considered.It would use laminated wires to create a portable tent frame.This product is currently being evaluated to determine its fit with the company's objectives and external market trends.
Rob is thinking about the product life cycle,where each product fits,and what he should be doing as part of his marketing plan for each of these products.
Based on the text's recommendations for different stages in the product life cycle,for which product does WPI most need to consider developing different markets?

Accepted Answer

A) Wire Window 
B) Oil Wire 
C) Wire Closet 
D) It is equally important to develop new markets for all these products. 
A) Wire Window 
B) Oil Wire 
C) Wire Closet 
D) It is equally important to develop new markets for all these products.

Question 15

Use this information for questions that refer to the Wire Products Inc.(WPI)case. Rob Rose sat back to review the portfolio of products his company,Wire Products Inc.(WPI),has in its product line.The company specializes in making various products for consumer and industrial uses from hard laminated wire that is coated with special paints.
1)WPI's Wire Closet products have been on the market for 10 years.Consumers install the wire shelves and closet rods themselves.The market leader,Closetmaid,has been selling similar products for more than 20 years,but so far the sales volume and profits for the market have continued to grow.Recently,several new competitors have come into the market.
2)Three months ago,WPI entered the lawn and garden market with folding fences made with laminated wire and branded as Wire Fold-Fence.Previously,WPI had never made fences or been a player in the lawn and garden market-although other companies have been making products in this market for years.However,Rob Rose has discovered that recent sales of wire garden fencing have leveled off and profits are declining overall.Still,WPI thinks it has some cost advantages and can grow its own sales and profits in this market.
3)WPI has just developed Oil Wire,a new concept for the environmental cleanup market.Oil Wire is coated with a special material that cleans up oil spills.There has never been a product like this and WPI wants to quickly get the word out about its benefits.The product is now being rolled out in selective markets.
4)Another business product is Wire Locker,used for secure storage by gymnasiums or companies.This style of locker has now gone out of fashion,and most customers are finding better materials to use for lockers.Aggressive selling has helped Wire Locker's sales stay flat,but the total market for wire-style lockers is only half what it was 10 years ago.
5)WPI's Wire Window product is used as a security product to protect glass windows.It sells to homeowners and retailers looking for additional safety.WPI's sales of this product have dropped in recent years because competitors have introduced maintenance-free products.However,the overall market for this type of product continues to show good growth.
6)WPI is running concept tests of a new wire car-top carrier called Wire Car Top.There are other car-top carrier products on the market,but WPI plans to include options in its carrier that will make it easier to load bikes,skis,and suitcases.Wire Car Top is also very easy to put on and take off of the car because of its light weight and ease-of-use features.The concept tests are helping WPI analysts develop rough estimates of costs,sales,and profits.
7)Another new-product idea,tentatively called Wire Tent,is being considered.It would use laminated wires to create a portable tent frame.This product is currently being evaluated to determine its fit with the company's objectives and external market trends.
Rob is thinking about the product life cycle,where each product fits,and what he should be doing as part of his marketing plan for each of these products.
In which stage of the product life cycle is Wire Window?

Accepted Answer

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

Question 16

The strategies for all stages of the product life cycle should be growth strategies.

Accepted Answer

A) True 
 B)False

Question 17

Product managers are especially common in small,single-product companies.

Accepted Answer

A) True 
 B)False

Question 18

The cost of replacing defective parts is the biggest cost of poor quality.

Accepted Answer

A) True 
 B)False

Question 19

The last step in the new-product development process is

Accepted Answer

A) idea generation. 
B) commercialization. 
C) idea evaluation. 
D) development. 
E) screening. 
A) idea generation. 
B) commercialization. 
C) idea evaluation. 
D) development. 
E) screening.

Question 20

The product life cycle concept is concerned with planning for product recycling to protect the environment.

Accepted Answer

A) True 
 B)False

Which of the following statements about pioneers,second-movers,and followers is FALSE?

Which of the following activities is typical of the screening stage?

Regarding product life cycles,which of the following is true?

A new-product development process helps make sure that new ideas for products are carefully studied and that good ideas are marketed profitably.

Which of the following gives the correct order of the steps in the new-product development process?

Which of the following is a common cause of new-product failures?

During the sales decline stage of the product life cycle,

Which of the following statements about the stages of the product life cycle is FALSE?

When introducing a really new product,the marketer should be concerned about building channels of distribution but not about promotion.

The sales and profits of an individual brand may or may not follow the life-cycle pattern of the product idea.

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called

The two keys to improving how people implement quality service are: (1)training and (2)more inspectors.

Sales and profits usually move together over time during the product life cycle.

The strategies for all stages of the product life cycle should be growth strategies.

Product managers are especially common in small,single-product companies.

The cost of replacing defective parts is the biggest cost of poor quality.

The last step in the new-product development process is

The product life cycle concept is concerned with planning for product recycling to protect the environment.

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

Which of the following statements about pioneers,second-movers,and followers is FALSE?

Which of the following activities is typical of the screening stage?

Regarding product life cycles,which of the following is true?

A new-product development process helps make sure that new ideas for products are carefully studied and that good ideas are marketed profitably.

Which of the following gives the correct order of the steps in the new-product development process?

Which of the following is a common cause of new-product failures?

During the sales decline stage of the product life cycle,

Which of the following statements about the stages of the product life cycle is FALSE?

When introducing a really new product,the marketer should be concerned about building channels of distribution but not about promotion.

The sales and profits of an individual brand may or may not follow the life-cycle pattern of the product idea.

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called

The two keys to improving how people implement quality service are: (1)training and (2)more inspectors.

Sales and profits usually move together over time during the product life cycle.

The strategies for all stages of the product life cycle should be growth strategies.

Product managers are especially common in small,single-product companies.

The cost of replacing defective parts is the biggest cost of poor quality.

The last step in the new-product development process is

The product life cycle concept is concerned with planning for product recycling to protect the environment.

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