Question 1

Empowerment means giving employees the authority to correct a problem on their own.

Accepted Answer

A) True 
 B)False

Question 2

Fashion-related products tend to have short life cycles.

Accepted Answer

A) True 
 B)False

Question 3

A new-product idea moves through the early stages of the life cycle more quickly when it has all the following characteristics EXCEPT when the product ______.

Accepted Answer

A)  is easy to use 
B)  can be tried on a limited basis, without a lot of risk to the customer 
C)  has no competitive advantage over those already in the market 
D)  is compatible with the values and experiences of target customers 
E)  has advantages that are easy to communicate 
A)  is easy to use 
B)  can be tried on a limited basis, without a lot of risk to the customer 
C)  has no competitive advantage over those already in the market 
D)  is compatible with the values and experiences of target customers 
E)  has advantages that are easy to communicate

Question 4

Product life cycles are ______.

Accepted Answer

A)  getting longer 
B)  speeding up in the later stages 
C)  now about the same length as 100 years ago 
D)  getting shorter 
E)  slowing down in the early stages 
A)  getting longer 
B)  speeding up in the later stages 
C)  now about the same length as 100 years ago 
D)  getting shorter 
E)  slowing down in the early stages

Question 5

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 6

Which stage of the product life cycle is the largest profit stage for companies?

Accepted Answer

A)  Market introduction 
B)  Market maturity 
C)  Stagnation 
D)  Sales decline 
E)  Market growth 
A)  Market introduction 
B)  Market maturity 
C)  Stagnation 
D)  Sales decline 
E)  Market growth

Question 7

Which of the following statements about pioneers 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. 
E)  None of these choices is false. 
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. 
E)  None of these choices is false.

Question 8

Which of the following is a useful plan during the market maturity stage of the product life cycle?

Accepted Answer

A)  Disregard changes in customer behavior. 
B)  Slash product prices to maintain market share. 
C)  Eliminate points of differentiation to increase market share. 
D)  Phase-out products for more market penetration. 
E)  Disregard all forms of competitor behavior. 
A)  Disregard changes in customer behavior. 
B)  Slash product prices to maintain market share. 
C)  Eliminate points of differentiation to increase market share. 
D)  Phase-out products for more market penetration. 
E)  Disregard all forms of competitor behavior.

Question 9

Total quality management ______.

Accepted Answer

A)  requires that everyone in the organization be concerned with improving quality 
B)  means more than just using statistical controls to reduce manufacturing defects 
C)  views the cost of lost customers as an important result of quality problems 
D)  applies to service producers as well as manufacturers 
E)  All of these alternatives are correct. 
A)  requires that everyone in the organization be concerned with improving quality 
B)  means more than just using statistical controls to reduce manufacturing defects 
C)  views the cost of lost customers as an important result of quality problems 
D)  applies to service producers as well as manufacturers 
E)  All of these alternatives are correct.

Question 10

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 11

Ideas about potential new products should ______.

Accepted Answer

A)  be encouraged from any and all sources, since only a few ideas will develop into successful products. 
B)  not be eliminated from consideration until they have been tested in the commercialization stage. 
C)  come primarily from employees of the firm-so that time won't be wasted evaluating product ideas that are inconsistent with the firm's objectives and resources. 
D)  come from outside the firm, since studies show that really new ideas require a fresh perspective. 
E)  None of these alternatives is correct. 
A)  be encouraged from any and all sources, since only a few ideas will develop into successful products. 
B)  not be eliminated from consideration until they have been tested in the commercialization stage. 
C)  come primarily from employees of the firm-so that time won't be wasted evaluating product ideas that are inconsistent with the firm's objectives and resources. 
D)  come from outside the firm, since studies show that really new ideas require a fresh perspective. 
E)  None of these alternatives is correct.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

All of the following products are in the market maturity stage of the product life cycle EXCEPT ______.

Accepted Answer

A)  laundry detergents 
B)  breakfast cereals 
C)  ultra high-definition TVs 
D)  carbonated soft drinks 
E)  gasoline-powered cars 
A)  laundry detergents 
B)  breakfast cereals 
C)  ultra high-definition TVs 
D)  carbonated soft drinks 
E)  gasoline-powered cars

Question 14

All of the following products are in the market maturity stage of the product life cycle EXCEPT ______.

Accepted Answer

A)  laundry detergents 
B)  breakfast cereals 
C)  solar roof cells for home electricity generation 
D)  carbonated soft drinks 
E)  gasoline-powered cars 
A)  laundry detergents 
B)  breakfast cereals 
C)  solar roof cells for home electricity generation 
D)  carbonated soft drinks 
E)  gasoline-powered cars

Question 15

The Consumer Product Safety Commission can ______.

Accepted Answer

A)  back up its orders with jail sentences 
B)  set safety standards for products 
C)  back up its orders with fines 
D)  order return of "unsafe products" 
E)  All of these alternatives are correct. 
A)  back up its orders with jail sentences 
B)  set safety standards for products 
C)  back up its orders with fines 
D)  order return of "unsafe products" 
E)  All of these alternatives are correct.

Question 16

The sales and profits of an individual brand always follow the life-cycle pattern.

Accepted Answer

A) True 
 B)False

Question 17

During the sales decline stage of the product life cycle,no firm can earn a profit.

Accepted Answer

A) True 
 B)False

Question 18

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 of these are common causes of new product failures. 
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 of these are common causes of new product failures.

Question 19

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 alternatives is true. 
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 alternatives is true.

Question 20

Concept testing ______.

Accepted Answer

A)  takes place during the screening step of the new-product development process. 
B)  involves usage tests by potential customers. 
C)  seeks potential customers' reactions and attitudes toward new product ideas-before actual models are developed. 
D)  is the last step before commercialization of a new product idea. 
E)  None of these alternatives is correct. 
A)  takes place during the screening step of the new-product development process. 
B)  involves usage tests by potential customers. 
C)  seeks potential customers' reactions and attitudes toward new product ideas-before actual models are developed. 
D)  is the last step before commercialization of a new product idea. 
E)  None of these alternatives is correct.

Exam 11: Product Management and New-Product Development

Empowerment means giving employees the authority to correct a problem on their own.

Fashion-related products tend to have short life cycles.

A new-product idea moves through the early stages of the life cycle more quickly when it has all the following characteristics EXCEPT when the product ______.

Product life cycles are ______.

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

Which stage of the product life cycle is the largest profit stage for companies?

Which of the following statements about pioneers and followers is FALSE?

Which of the following is a useful plan during the market maturity stage of the product life cycle?

Total quality management ______.

Regarding product life cycles,a good marketing manager knows that ______.

Ideas about potential new products should ______.

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

All of the following products are in the market maturity stage of the product life cycle EXCEPT ______.

All of the following products are in the market maturity stage of the product life cycle EXCEPT ______.

The Consumer Product Safety Commission can ______.

The sales and profits of an individual brand always follow the life-cycle pattern.

During the sales decline stage of the product life cycle,no firm can earn a profit.

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

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

Concept testing ______.

Marketings Value to Consumers, Firms, and Society

Implementing and Controlling Marketing Plans: Evolution and Revolution

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

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 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