Question 1

A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.

Accepted Answer

A) True 
 B)False

Question 2

"Product life cycles" are concerned with sales and profits:

Accepted Answer

A)  in generic markets-not individual product-markets. 
B)  of a firm's individual products or brands. 
C)  of goods but not services. 
D)  in a product-market. 
E)  None of these alternatives is a good answer. 
A)  in generic markets-not individual product-markets. 
B)  of a firm's individual products or brands. 
C)  of goods but not services. 
D)  in a product-market. 
E)  None of these alternatives is a good answer.

Question 3

In general, top management support is needed for successful new-product development efforts.

Accepted Answer

A) True 
 B)False

Question 4

Use this information for question 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-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 continue 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 of 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 the "Wire Tent"?

Accepted Answer

A)  Screening 
B)  Development 
C)  Idea evaluation 
D)  Idea generation 
E)  Commercialization 
A)  Screening 
B)  Development 
C)  Idea evaluation 
D)  Idea generation 
E)  Commercialization

Question 5

During the market maturity stage of the product life cycle:

Accepted Answer

A)  some competitors drop out of the market-and no new firms enter. 
B)  persuasive promotion becomes more important. 
C)  promotion emphasizes the advantages of the basic product concept. 
D)  total industry sales and profits reach their maximum levels. 
E)  None of these alternatives are correct. 
A)  some competitors drop out of the market-and no new firms enter. 
B)  persuasive promotion becomes more important. 
C)  promotion emphasizes the advantages of the basic product concept. 
D)  total industry sales and profits reach their maximum levels. 
E)  None of these alternatives are correct.

Question 6

The Consumer Product Safety Commission

Accepted Answer

A)  sets safety standards for new products, but has little power until after a consumer accident occurs. 
B)  must approve every new product (including foods and drugs) before it can be sold. 
C)  provides product liability insurance. 
D)  can order costly returns of products it considers unsafe. 
E)  has very little power. 
A)  sets safety standards for new products, but has little power until after a consumer accident occurs. 
B)  must approve every new product (including foods and drugs) before it can be sold. 
C)  provides product liability insurance. 
D)  can order costly returns of products it considers unsafe. 
E)  has very little power.

Question 7

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 8

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

Accepted Answer

A)  be concerned about the possibility of the firm getting a monopoly. 
B)  allow the company to call the product "new" for only six months. 
C)  probably not approve of this at all because the product doesn't meet the FTC's definition of "new." 
D)  allow the promotion effort if it felt that consumers would think the coloring made it "new." 
E)  none of these alternatives is correct. 
A)  be concerned about the possibility of the firm getting a monopoly. 
B)  allow the company to call the product "new" for only six months. 
C)  probably not approve of this at all because the product doesn't meet the FTC's definition of "new." 
D)  allow the promotion effort if it felt that consumers would think the coloring made it "new." 
E)  none of these alternatives is correct.

Question 9

Which of the following statements is true of how innovation and market changes create opportunities?

Accepted Answer

A)  Market changes due to product innovations lead to fewer opportunities for marketing managers. 
B)  Products, customer behavior, and competition vary over time. 
C)  Marketing managers should avoid seeking innovations as they only pose challenges to a firm and are not essential to a firm's success. 
D)  Managers should design new products to meet their own needs rather than meeting the needs of the target market. 
A)  Market changes due to product innovations lead to fewer opportunities for marketing managers. 
B)  Products, customer behavior, and competition vary over time. 
C)  Marketing managers should avoid seeking innovations as they only pose challenges to a firm and are not essential to a firm's success. 
D)  Managers should design new products to meet their own needs rather than meeting the needs of the target market.

Question 10

The smaller the comparative advantage of a new product over those already on the market, the faster its sales will grow.

Accepted Answer

A) True 
 B)False

Question 11

Sales growth is faster when the product can be used on a trial basis.

Accepted Answer

A) True 
 B)False

Question 12

When purchasing consumer electronics or other high-technology products, most consumers are aware that within a year after making a purchase, it is likely that a new model-or an entirely new product idea-will offer more features for the same amount of money. This phenomenon is a good example of the fact that:

Accepted Answer

A)  Product life cycles are getting longer. 
B)  Product life cycles are getting shorter. 
C)  The product life cycle rarely changes in length. 
A)  Product life cycles are getting longer. 
B)  Product life cycles are getting shorter. 
C)  The product life cycle rarely changes in length.

Question 13

The first step in new-product development is evaluating ideas.

Accepted Answer

A) True 
 B)False

Question 14

The new-product development process

Accepted Answer

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

Question 15

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

Accepted Answer

A) True 
 B)False

Question 16

According to your text, which of the following is an example of a "new product"?

Accepted Answer

A)  An existing product that has been modified in some way. 
B)  An existing product for which new uses have been found in other product-markets. 
C)  A wholly new product idea. 
D)  An existing product being offered to new markets. 
E)  All of these are examples of a "new product." 
A)  An existing product that has been modified in some way. 
B)  An existing product for which new uses have been found in other product-markets. 
C)  A wholly new product idea. 
D)  An existing product being offered to new markets. 
E)  All of these are examples of a "new product."

Question 17

Which of the following is true of product liability?

Accepted Answer

A)  Product liability is a consideration, but it's not important until the development stage of the new-product development process. 
B)  Relative to most other countries, U.S. courts enforce a very strict product liability standard. 
C)  Sellers are usually not held responsible for injuries related to their products especially when the items are well designed. 
D)  None of these statements is true. 
A)  Product liability is a consideration, but it's not important until the development stage of the new-product development process. 
B)  Relative to most other countries, U.S. courts enforce a very strict product liability standard. 
C)  Sellers are usually not held responsible for injuries related to their products especially when the items are well designed. 
D)  None of these statements is true.

Question 18

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 as the maximum time that a product should be called "new." 
D)  According to the FTC, a product may be called "new" (for example, in advertising) 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 as the maximum time that a product should be called "new." 
D)  According to the FTC, a product may be called "new" (for example, in advertising) 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 19

Industry profits decline during the market maturity stage due to:

Accepted Answer

A)  declining sales. 
B)  declining sales and declining costs. 
C)  mismanaged budgets. 
D)  rising promotion costs and increased competitive pressure to offer product at lowest prices. 
E)  new varieties of the original product that fail to meet customer needs. 
A)  declining sales. 
B)  declining sales and declining costs. 
C)  mismanaged budgets. 
D)  rising promotion costs and increased competitive pressure to offer product at lowest prices. 
E)  new varieties of the original product that fail to meet customer needs.

Question 20

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

Accepted Answer

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

A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.

"Product life cycles" are concerned with sales and profits:

In general, top management support is needed for successful new-product development efforts.

During the market maturity stage of the product life cycle:

The Consumer Product Safety Commission

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

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

Which of the following statements is true of how innovation and market changes create opportunities?

The smaller the comparative advantage of a new product over those already on the market, the faster its sales will grow.

Sales growth is faster when the product can be used on a trial basis.

The first step in new-product development is evaluating ideas.

The new-product development process

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

According to your text, which of the following is an example of a "new product"?

Which of the following is true of product liability?

Which of the following statements about "new products" is FALSE?

Industry profits decline during the market maturity stage due to:

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

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

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

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

Filters

Exam 9: Product Management and New-Product Development

A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.

"Product life cycles" are concerned with sales and profits:

In general, top management support is needed for successful new-product development efforts.

During the market maturity stage of the product life cycle:

The Consumer Product Safety Commission

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

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

Which of the following statements is true of how innovation and market changes create opportunities?

The smaller the comparative advantage of a new product over those already on the market, the faster its sales will grow.

Sales growth is faster when the product can be used on a trial basis.

The first step in new-product development is evaluating ideas.

The new-product development process

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

According to your text, which of the following is an example of a "new product"?

Which of the following is true of product liability?

Which of the following statements about "new products" is FALSE?

Industry profits decline during the market maturity stage due to:

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

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

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

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

Filters