Question 1

The new-product development process should

Accepted Answer

A) have ongoing support from top management. 
B) avoid applying quantitative screening criteria,since applying such criteria tends to eliminate most of the "really new" ideas. 
C) be informal-to encourage creativity. 
D) start whenever the majority of current products are in the market maturity stage of the product life cycle. 
E) All these answers are correct. 
A) have ongoing support from top management. 
B) avoid applying quantitative screening criteria,since applying such criteria tends to eliminate most of the "really new" ideas. 
C) be informal-to encourage creativity. 
D) start whenever the majority of current products are in the market maturity stage of the product life cycle. 
E) All these answers are correct.

Question 2

In the idea generation stage of the new-product development process,

Accepted Answer

A) bad ideas should be discarded as soon as possible. 
B) using competitors as a source of ideas should be avoided. 
C) firms need a continuous flow of ideas. 
D) analysis of consumer complaints about current products is unlikely to generate any new ideas. 
E) None of these answers is correct. 
A) bad ideas should be discarded as soon as possible. 
B) using competitors as a source of ideas should be avoided. 
C) firms need a continuous flow of ideas. 
D) analysis of consumer complaints about current products is unlikely to generate any new ideas. 
E) None of these answers is correct.

Question 3

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

Accepted Answer

A) Business firms often get new product ideas from competitors. 
B) It is best to focus on only a few good ideas at this stage. 
C) Studying customers' ideas is not very helpful,since they tend to focus on minor technical changes in existing products. 
D) Most companies don't need a special procedure for seeking new-product ideas,because so many ideas are coming from so many different sources. 
E) None of these answers is correct. 
A) Business firms often get new product ideas from competitors. 
B) It is best to focus on only a few good ideas at this stage. 
C) Studying customers' ideas is not very helpful,since they tend to focus on minor technical changes in existing products. 
D) Most companies don't need a special procedure for seeking new-product ideas,because so many ideas are coming from so many different sources. 
E) None of these answers is correct.

Question 4

Market testing can be risky because it gives information to competitors-but not testing may be even riskier.

Accepted Answer

A) True 
 B)False

Question 5

A new-product idea is more likely to move quickly through the early stages of the product life cycle when the product

Accepted Answer

A) is easy to use. 
B) is compatible with the values and experiences of target customers. 
C) can be given a trial. 
D) has advantages that are easy to communicate. 
E) All these answers are correct. 
A) is easy to use. 
B) is compatible with the values and experiences of target customers. 
C) can be given a trial. 
D) has advantages that are easy to communicate. 
E) All these answers are correct.

Question 6

It is toward the end of the ________ stage of the product life cycle when industry profits begin to decline.

Accepted Answer

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

Question 7

Which of the following scenarios illustrates how really new product ideas disrupt the old ways of doing things?

Accepted Answer

A) a firm's introduction of a new digital video recorder that makes videocassette recorders for TVs obsolete 
B) a firm's introduction of a new range of cell phones that have better features than those offered by its competitors 
C) the addition of a new flavored breakfast cereal to a firm's existing line of breakfast cereals 
D) the removal of an existing product from a firm's line of perfumes because it isn't producing much profit 
E) the way in which the QWERTY keyboard on smart phones reflects the order of letters on manual typewriters 
A) a firm's introduction of a new digital video recorder that makes videocassette recorders for TVs obsolete 
B) a firm's introduction of a new range of cell phones that have better features than those offered by its competitors 
C) the addition of a new flavored breakfast cereal to a firm's existing line of breakfast cereals 
D) the removal of an existing product from a firm's line of perfumes because it isn't producing much profit 
E) the way in which the QWERTY keyboard on smart phones reflects the order of letters on manual typewriters

Question 8

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 step of the new-product development process is Oil Wire?

Accepted Answer

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

Question 9

Sales growth is usually faster when the product is incompatible with the past values and experience of the target market.

Accepted Answer

A) True 
 B)False

Question 10

Industry sales are highest in which of the following product life-cycle stages?

Accepted Answer

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

Question 11

Industry profits are largest in which of the following product life-cycle stages?

Accepted Answer

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

Question 12

Fashion is the currently accepted or popular

Accepted Answer

A) trend. 
B) idea. 
C) fad. 
D) assortment. 
E) style. 
A) trend. 
B) idea. 
C) fad. 
D) assortment. 
E) style.

Question 13

In the market growth stage of the product life cycle,

Accepted Answer

A) competing products appear the same to consumers. 
B) distribution moves from intensive to selective. 
C) many competitors drop out of the market. 
D) total industry sales increase very slowly. 
E) industry profits reach their peak and then decline. 
A) competing products appear the same to consumers. 
B) distribution moves from intensive to selective. 
C) many competitors drop out of the market. 
D) total industry sales increase very slowly. 
E) industry profits reach their peak and then decline.

Question 14

How quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product.

Accepted Answer

A) True 
 B)False

Question 15

Brand managers manage specific products,often taking over the jobs formerly handled by an advertising manager.

Accepted Answer

A) True 
 B)False

Question 16

A ________ is a type of innovative product that requires customers adopting the innovation to significantly change their behavior.

Accepted Answer

A) fad innovation 
B) dynamically continuous innovation 
C) discontinuous innovation 
D) continuous innovation 
E) behavior-change innovation 
A) fad innovation 
B) dynamically continuous innovation 
C) discontinuous innovation 
D) continuous innovation 
E) behavior-change innovation

Question 17

The stage of the new-product development process in which marketers evaluate the firm's strengths,weaknesses,and objectives is

Accepted Answer

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

Question 18

Product managers

Accepted Answer

A) are especially common in large companies. 
B) are sometimes responsible for a product's whole marketing effort. 
C) coordinate their efforts with individuals within and outside the company. 
D) may serve as "product champions" in planning and implementing the promotion effort. 
E) All these answers are correct. 
A) are especially common in large companies. 
B) are sometimes responsible for a product's whole marketing effort. 
C) coordinate their efforts with individuals within and outside the company. 
D) may serve as "product champions" in planning and implementing the promotion effort. 
E) All these answers are correct.

Question 19

The total quality management approach recognizes that defects are an inevitable part of mass production,and that the cost of replacing defective goods is just a cost of doing business.

Accepted Answer

A) True 
 B)False

Question 20

A product idea may be in a different life-cycle stage in different markets.

Accepted Answer

A) True 
 B)False

The new-product development process should

In the idea generation stage of the new-product development process,

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

Market testing can be risky because it gives information to competitors-but not testing may be even riskier.

A new-product idea is more likely to move quickly through the early stages of the product life cycle when the product

It is toward the end of the ________ stage of the product life cycle when industry profits begin to decline.

Which of the following scenarios illustrates how really new product ideas disrupt the old ways of doing things?

Sales growth is usually faster when the product is incompatible with the past values and experience of the target market.

Industry sales are highest in which of the following product life-cycle stages?

Industry profits are largest in which of the following product life-cycle stages?

Fashion is the currently accepted or popular

In the market growth stage of the product life cycle,

How quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product.

Brand managers manage specific products,often taking over the jobs formerly handled by an advertising manager.

A ________ is a type of innovative product that requires customers adopting the innovation to significantly change their behavior.

The stage of the new-product development process in which marketers evaluate the firm's strengths,weaknesses,and objectives is

Product managers

The total quality management approach recognizes that defects are an inevitable part of mass production,and that the cost of replacing defective goods is just a cost of doing business.

A product idea may be in a different life-cycle stage in different markets.

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

The new-product development process should

In the idea generation stage of the new-product development process,

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

Market testing can be risky because it gives information to competitors-but not testing may be even riskier.

A new-product idea is more likely to move quickly through the early stages of the product life cycle when the product

It is toward the end of the ________ stage of the product life cycle when industry profits begin to decline.

Which of the following scenarios illustrates how really new product ideas disrupt the old ways of doing things?

Sales growth is usually faster when the product is incompatible with the past values and experience of the target market.

Industry sales are highest in which of the following product life-cycle stages?

Industry profits are largest in which of the following product life-cycle stages?

Fashion is the currently accepted or popular

In the market growth stage of the product life cycle,

How quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product.

Brand managers manage specific products,often taking over the jobs formerly handled by an advertising manager.

A ________ is a type of innovative product that requires customers adopting the innovation to significantly change their behavior.

The stage of the new-product development process in which marketers evaluate the firm's strengths,weaknesses,and objectives is

Product managers

The total quality management approach recognizes that defects are an inevitable part of mass production,and that the cost of replacing defective goods is just a cost of doing business.

A product idea may be in a different life-cycle stage in different markets.

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