Question 1

In the idea evaluation stage,

Accepted Answer

A) an actual product is developed. 
B) companies cannot estimate likely costs. 
C) concept testing is used to get customer reactions. 
D) parts of a product are designed and manufactured. 
E) the final ROI is estimated. 
A) an actual product is developed. 
B) companies cannot estimate likely costs. 
C) concept testing is used to get customer reactions. 
D) parts of a product are designed and manufactured. 
E) the final ROI is estimated.

Question 2

Which of the following statements about new products is FALSE?

Accepted Answer

A) In order for it to be advertised as "new," there should be a functionally significant change in the product-according to the FTC. 
B) A product should be considered "new" by a particular firm if it is new in any way for that company. 
C) The FTC considers six months the maximum amount of time that a product should be called "new." 
D) According to the FTC,a product may be called "new" as long as the firm has made at least some minor change in the package or product. 
E) A marketing manager should consider a product new if it is aimed at new markets. 
A) In order for it to be advertised as "new," there should be a functionally significant change in the product-according to the FTC. 
B) A product should be considered "new" by a particular firm if it is new in any way for that company. 
C) The FTC considers six months the maximum amount of time that a product should be called "new." 
D) According to the FTC,a product may be called "new" as long as the firm has made at least some minor change in the package or product. 
E) A marketing manager should consider a product new if it is aimed at new markets.

Question 3

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.
According to the definition in your text,which of WPI's products can be called a new product?

Accepted Answer

A) Wire Closet 
B) Wire Locker 
C) Wire Fold-Fence 
D) Wire Window 
E) None of these products fits the definition of a new product. 
A) Wire Closet 
B) Wire Locker 
C) Wire Fold-Fence 
D) Wire Window 
E) None of these products fits the definition of a new product.

Question 4

When planning for the different stages of the product life cycle,managers should remember that

Accepted Answer

A) sometimes competitors can help to build customer interest in a new-product idea. 
B) the correct strategy depends on how quickly the new idea will be accepted by consumers. 
C) a firm that can change its strategy quickly may have an advantage over less-flexible competitors. 
D) not all new-product ideas catch on with consumers or intermediaries. 
E) All these answers are correct. 
A) sometimes competitors can help to build customer interest in a new-product idea. 
B) the correct strategy depends on how quickly the new idea will be accepted by consumers. 
C) a firm that can change its strategy quickly may have an advantage over less-flexible competitors. 
D) not all new-product ideas catch on with consumers or intermediaries. 
E) All these answers are correct.

Question 5

Industry profits usually decline steadily during the market maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 6

Full-scale market tests

Accepted Answer

A) are unrealistic because they do not test the whole marketing mix. 
B) are not expensive,even when a full market picture is sought. 
C) should always be skipped when consumer preferences are clear. 
D) may provide competitors advance information about products. 
E) are used mostly for products having long lead times. 
A) are unrealistic because they do not test the whole marketing mix. 
B) are not expensive,even when a full market picture is sought. 
C) should always be skipped when consumer preferences are clear. 
D) may provide competitors advance information about products. 
E) are used mostly for products having long lead times.

Question 7

As a product moves into the market maturity stage of its life cycle,the marketing manager should

Accepted Answer

A) try to build primary demand. 
B) move toward exclusive distribution. 
C) expect the market to move toward pure competition. 
D) emphasize promotion that informs rather than persuades. 
E) None of these answers is correct. 
A) try to build primary demand. 
B) move toward exclusive distribution. 
C) expect the market to move toward pure competition. 
D) emphasize promotion that informs rather than persuades. 
E) None of these answers is correct.

Question 8

In which of the following situations is the new product entering the market introduction stage of the product life cycle?

Accepted Answer

A) Porsche just introduced a new luxury sport utility vehicle to compete against sport utility vehicles made by others. 
B) Colgate-Palmolive just introduced a "new and improved" chemical formula for its "Total" toothpaste. 
C) Home Depot (a home improvement chain)just introduced its own dealer brand of paint. 
D) Apple introduced a first-of-its-kind computer operating system that is so "user-friendly" it responds to spoken commands. 
E) All of these situations show a new product entering the market introduction stage of the product life cycle. 
A) Porsche just introduced a new luxury sport utility vehicle to compete against sport utility vehicles made by others. 
B) Colgate-Palmolive just introduced a "new and improved" chemical formula for its "Total" toothpaste. 
C) Home Depot (a home improvement chain)just introduced its own dealer brand of paint. 
D) Apple introduced a first-of-its-kind computer operating system that is so "user-friendly" it responds to spoken commands. 
E) All of these situations show a new product entering the market introduction stage of the product life cycle.

Question 9

When a marketing manager notices that customer reaction to a new product does not meet expectations,the marketing manager must be prepared to ________,or move to a new marketing mix.

Accepted Answer

A) pivot 
B) discontinue 
C) prototype 
D) revitalize 
E) roast 
A) pivot 
B) discontinue 
C) prototype 
D) revitalize 
E) roast

Question 10

According to the FTC,for a producer to call a product "new," the product must

Accepted Answer

A) be no more than two months old. 
B) have achieved brand insistence. 
C) be entirely new or changed in a functionally significant or substantial respect. 
D) have been changed in some way during the past year. 
E) None of these answers is correct. 
A) be no more than two months old. 
B) have achieved brand insistence. 
C) be entirely new or changed in a functionally significant or substantial respect. 
D) have been changed in some way during the past year. 
E) None of these answers is correct.

Question 11

In the market introduction stage,sales are low as a new idea is first introduced to a market.

Accepted Answer

A) True 
 B)False

Question 12

In general,product life cycles appear to be getting longer in recent years.

Accepted Answer

A) True 
 B)False

Question 13

At which stage of the product life cycle do industry profits start to decline?

Accepted Answer

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

Question 14

A product that is new in any way for the company concerned is a new product.

Accepted Answer

A) True 
 B)False

Question 15

The Consumer Product Safety Commission

Accepted Answer

A) has little power until a consumer accident occurs. 
B) must approve every new drug before it can be sold. 
C) provides product liability insurance. 
D) can order costly returns of products it considers unsafe. 
E) has very little influence over product design. 
A) has little power until a consumer accident occurs. 
B) must approve every new drug before it can be sold. 
C) provides product liability insurance. 
D) can order costly returns of products it considers unsafe. 
E) has very little influence over product design.

Question 16

Which of the following statements about the idea evaluation step is FALSE?

Accepted Answer

A) Companies can often estimate likely costs,revenue,and profitability at this stage. 
B) Product planners can compare the cost advantages and limitations of a new product with those currently being used. 
C) Product tests with customers are used to revise the early versions of the product. 
D) This step should gather enough information to help decide whether there is an opportunity. 
A) Companies can often estimate likely costs,revenue,and profitability at this stage. 
B) Product planners can compare the cost advantages and limitations of a new product with those currently being used. 
C) Product tests with customers are used to revise the early versions of the product. 
D) This step should gather enough information to help decide whether there is an opportunity.

Question 17

New-product specialists at Whirlpool buy washing machines made by other firms and take them apart to look for new ideas.This is called

Accepted Answer

A) reverse engineering. 
B) positioning. 
C) S)W.O.T.analysis. 
D) concept testing. 
E) clustering. 
A) reverse engineering. 
B) positioning. 
C) S)W.O.T.analysis. 
D) concept testing. 
E) clustering.

Question 18

With total quality management (TQM),a company's management makes the marketing department solely responsible for quality and customer service.

Accepted Answer

A) True 
 B)False

Question 19

Market introduction,market growth,market maturity,and sales decline are the four stages of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 20

The probable length of the product life cycle has little effect on strategy planning.

Accepted Answer

A) True 
 B)False

In the idea evaluation stage,

Which of the following statements about new products is FALSE?

When planning for the different stages of the product life cycle,managers should remember that

Industry profits usually decline steadily during the market maturity stage of the product life cycle.

Full-scale market tests

As a product moves into the market maturity stage of its life cycle,the marketing manager should

In which of the following situations is the new product entering the market introduction stage of the product life cycle?

When a marketing manager notices that customer reaction to a new product does not meet expectations,the marketing manager must be prepared to ________,or move to a new marketing mix.

According to the FTC,for a producer to call a product "new," the product must

In the market introduction stage,sales are low as a new idea is first introduced to a market.

In general,product life cycles appear to be getting longer in recent years.

At which stage of the product life cycle do industry profits start to decline?

A product that is new in any way for the company concerned is a new product.

The Consumer Product Safety Commission

Which of the following statements about the idea evaluation step is FALSE?

New-product specialists at Whirlpool buy washing machines made by other firms and take them apart to look for new ideas.This is called

With total quality management (TQM),a company's management makes the marketing department solely responsible for quality and customer service.

Market introduction,market growth,market maturity,and sales decline are the four stages of the product life cycle.

The probable length of the product life cycle has little effect on strategy planning.

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

In the idea evaluation stage,

Which of the following statements about new products is FALSE?

When planning for the different stages of the product life cycle,managers should remember that

Industry profits usually decline steadily during the market maturity stage of the product life cycle.

Full-scale market tests

As a product moves into the market maturity stage of its life cycle,the marketing manager should

In which of the following situations is the new product entering the market introduction stage of the product life cycle?

When a marketing manager notices that customer reaction to a new product does not meet expectations,the marketing manager must be prepared to ________,or move to a new marketing mix.

According to the FTC,for a producer to call a product "new," the product must

In the market introduction stage,sales are low as a new idea is first introduced to a market.

In general,product life cycles appear to be getting longer in recent years.

At which stage of the product life cycle do industry profits start to decline?

A product that is new in any way for the company concerned is a new product.

The Consumer Product Safety Commission

Which of the following statements about the idea evaluation step is FALSE?

New-product specialists at Whirlpool buy washing machines made by other firms and take them apart to look for new ideas.This is called

With total quality management (TQM),a company's management makes the marketing department solely responsible for quality and customer service.

Market introduction,market growth,market maturity,and sales decline are the four stages of the product life cycle.

The probable length of the product life cycle has little effect on strategy planning.

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