Question 1

During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

The job of product or brand manager is often created when a firm:

Accepted Answer

A)  has many different kinds of products or brands. 
B)  wants to eliminate the job of the research and development department. 
C)  wants to eliminate the job of sales manager. 
D)  wants to do away with product "champions." 
E)  None of these alternatives is correct. 
A)  has many different kinds of products or brands. 
B)  wants to eliminate the job of the research and development department. 
C)  wants to eliminate the job of sales manager. 
D)  wants to do away with product "champions." 
E)  None of these alternatives is correct.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about total quality management (TQM) is false?

Accepted Answer

A)  Before widespread adoption of TQM, most firms assumed that production defects were an inevitable part of mass production. 
B)  Japanese producers of cars, electronics, and cameras showed that production defects were not inevitable. 
C)  From a TQM perspective, the cost of lost customers is a minor consequence of poor quality. 
D)  From a customer's point of view, getting a defective product and having to complain about it is inconvenient. 
E)  TQM methods have been applied to implementation problems other than manufacturing. 
A)  Before widespread adoption of TQM, most firms assumed that production defects were an inevitable part of mass production. 
B)  Japanese producers of cars, electronics, and cameras showed that production defects were not inevitable. 
C)  From a TQM perspective, the cost of lost customers is a minor consequence of poor quality. 
D)  From a customer's point of view, getting a defective product and having to complain about it is inconvenient. 
E)  TQM methods have been applied to implementation problems other than manufacturing.

Question 6

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 7

A "rollout" happens in the ____ step of the new-product development process.

Accepted Answer

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

Question 8

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process?

Accepted Answer

A)  Customer complaints. 
B)  Lead-users of the product. 
C)  Competitors' products. 
D)  Products found in overseas markets. 
E)  All of these would be effective sources of ideas. 
A)  Customer complaints. 
B)  Lead-users of the product. 
C)  Competitors' products. 
D)  Products found in overseas markets. 
E)  All of these would be effective sources of ideas.

Question 9

Regarding product life cycles, which is true?

Accepted Answer

A)  Industry sales and profits tend to reach their maximum during the market maturity stage. 
B)  Product life cycles describe 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 of these alternatives are TRUE. 
A)  Industry sales and profits tend to reach their maximum during the market maturity stage. 
B)  Product life cycles describe 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 of these alternatives are TRUE.

Question 10

The FTC places no restriction on the length of time a product can be called "new."

Accepted Answer

A) True 
 B)False

Question 11

The market maturity stage of the product life cycle has very low promotion expenditures, little price competition, and rising industry profits.

Accepted Answer

A) True 
 B)False

Question 12

In the context of new product development, which of the following observations is true regarding the balance of market needs and company resources?

Accepted Answer

A)  Marketing managers must recognize that new product projects need to meet return-on-investment goals. 
B)  A company's R&D specialists, operations, and marketing personnel must work independently to evaluate the feasibility of new ideas. 
C)  Marketing managers need to develop elaborate marketing plans for goods or services even if the firm can't produce them at a given point. 
D)  Marketing managers should avoid pinpointing competition. 
A)  Marketing managers must recognize that new product projects need to meet return-on-investment goals. 
B)  A company's R&D specialists, operations, and marketing personnel must work independently to evaluate the feasibility of new ideas. 
C)  Marketing managers need to develop elaborate marketing plans for goods or services even if the firm can't produce them at a given point. 
D)  Marketing managers should avoid pinpointing competition.

Question 13

Total industry profits reach their maximum during the __________ stage of the product life cycle.

Accepted Answer

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

Question 14

E-commerce jewelry retailer SparklesNow announces a contest inviting its regular online members to submit contemporary jewelry designs. Winning designs and entries are chosen based on ratings and comments from other members. SparklesNow is using ______ to get new ideas from customers.

Accepted Answer

A)  crowdsourcing 
B)  creative resourcing 
C)  reverse engineering 
D)  idea roll out 
E)  idea magnets 
A)  crowdsourcing 
B)  creative resourcing 
C)  reverse engineering 
D)  idea roll out 
E)  idea magnets

Question 15

During the development step of new product development, a firm could develop a ____, an early sample or model built to test a concept.

Accepted Answer

A)  creation 
B)  concept test 
C)  prototype 
D)  ideatype 
E)  embryo concept 
A)  creation 
B)  concept test 
C)  prototype 
D)  ideatype 
E)  embryo concept

Question 16

Regarding product life cycles, a good marketing manager knows that

Accepted Answer

A)  entirely different target markets may be involved at different stages of the product life cycle. 
B)  a product that doesn't get beyond the introduction stage is still likely to be very profitable. 
C)  industry profits are increasing well after sales start to decline. 
D)  once a market goes into sales decline, oligopoly conditions set in. 
E)  All of these alternatives are correct. 
A)  entirely different target markets may be involved at different stages of the product life cycle. 
B)  a product that doesn't get beyond the introduction stage is still likely to be very profitable. 
C)  industry profits are increasing well after sales start to decline. 
D)  once a market goes into sales decline, oligopoly conditions set in. 
E)  All of these alternatives are correct.

Question 17

Sales of a producer's wax paper food-wrap are declining fast. The advertising manager-looking for a way to attract attention to the brand-suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission

Accepted Answer

A)  would allow the company to call the product "new" for only six months. 
B)  probably would not approve of this at all. 
C)  would allow the advertising campaign if it concluded that consumers thought the different package made it new. 
D)  does not regulate advertising, so it would not pay any attention to this firm. 
E)  None of these alternatives is correct. 
A)  would allow the company to call the product "new" for only six months. 
B)  probably would not approve of this at all. 
C)  would allow the advertising campaign if it concluded that consumers thought the different package made it new. 
D)  does not regulate advertising, so it would not pay any attention to this firm. 
E)  None of these alternatives is correct.

Question 18

If a producer does not have a new-product development process, it ultimately means:

Accepted Answer

A)  the firm lacks financial resources. 
B)  the firm does not want to be profitable. 
C)  the company will survive on current products until going out of business. 
D)  the firm is incapable of innovation. 
E)  the firm can survive on old products indefinitely. 
A)  the firm lacks financial resources. 
B)  the firm does not want to be profitable. 
C)  the company will survive on current products until going out of business. 
D)  the firm is incapable of innovation. 
E)  the firm can survive on old products indefinitely.

Question 19

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 20

Which of the following observations concerning the market maturity stage is note true?

Accepted Answer

A)  Many aggressive competitors have entered the race for profits. 
B)  There is a long-run downward pressure on prices. 
C)  New firms cannot enter the market at this stage. 
D)  Promotion costs rise and some competitors cut prices to attract business. 
E)  Persuasive promotion becomes more important during this stage. 
A)  Many aggressive competitors have entered the race for profits. 
B)  There is a long-run downward pressure on prices. 
C)  New firms cannot enter the market at this stage. 
D)  Promotion costs rise and some competitors cut prices to attract business. 
E)  Persuasive promotion becomes more important during this stage.

During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline.

The job of product or brand manager is often created when a firm:

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

Which of the following statements about total quality management (TQM) is false?

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.

A "rollout" happens in the ____ step of the new-product development process.

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process?

Regarding product life cycles, which is true?

The FTC places no restriction on the length of time a product can be called "new."

The market maturity stage of the product life cycle has very low promotion expenditures, little price competition, and rising industry profits.

In the context of new product development, which of the following observations is true regarding the balance of market needs and company resources?

Total industry profits reach their maximum during the __________ stage of the product life cycle.

E-commerce jewelry retailer SparklesNow announces a contest inviting its regular online members to submit contemporary jewelry designs. Winning designs and entries are chosen based on ratings and comments from other members. SparklesNow is using ______ to get new ideas from customers.

During the development step of new product development, a firm could develop a ____, an early sample or model built to test a concept.

Regarding product life cycles, a good marketing manager knows that

Sales of a producer's wax paper food-wrap are declining fast. The advertising manager-looking for a way to attract attention to the brand-suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission

If a producer does not have a new-product development process, it ultimately means:

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

Which of the following observations concerning the market maturity stage is note true?

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

During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline.

The job of product or brand manager is often created when a firm:

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

Which of the following statements about total quality management (TQM) is false?

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.

A "rollout" happens in the ____ step of the new-product development process.

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process?

Regarding product life cycles, which is true?

The FTC places no restriction on the length of time a product can be called "new."

The market maturity stage of the product life cycle has very low promotion expenditures, little price competition, and rising industry profits.

In the context of new product development, which of the following observations is true regarding the balance of market needs and company resources?

Total industry profits reach their maximum during the __________ stage of the product life cycle.

E-commerce jewelry retailer SparklesNow announces a contest inviting its regular online members to submit contemporary jewelry designs. Winning designs and entries are chosen based on ratings and comments from other members. SparklesNow is using ______ to get new ideas from customers.

During the development step of new product development, a firm could develop a ____, an early sample or model built to test a concept.

Regarding product life cycles, a good marketing manager knows that

Sales of a producer's wax paper food-wrap are declining fast. The advertising manager-looking for a way to attract attention to the brand-suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission

If a producer does not have a new-product development process, it ultimately means:

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

Which of the following observations concerning the market maturity stage is note true?

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