Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

In the market introduction stage of the product life cycle,______.

Accepted Answer

A)  sales are the highest 
B)  most companies experience losses 
C)  industry profits rise 
D)  industry sales level off 
E)  total industry profit is highest 
A)  sales are the highest 
B)  most companies experience losses 
C)  industry profits rise 
D)  industry sales level off 
E)  total industry profit is highest

Question 3

Regarding the new-product development process ______.

Accepted Answer

A)  the hypothesis tested is that the new product idea will not be profitable 
B)  a gradual "roll-out" of the product-region by region-allows for more market testing 
C)  concept tests are done before any physical models are produced 
D)  likely ROI should be estimated throughout the process to force the new idea to prove itself 
E)  All of these alternatives are correct. 
A)  the hypothesis tested is that the new product idea will not be profitable 
B)  a gradual "roll-out" of the product-region by region-allows for more market testing 
C)  concept tests are done before any physical models are produced 
D)  likely ROI should be estimated throughout the process to force the new idea to prove itself 
E)  All of these alternatives are correct.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Accepted Answer

A) True 
 B)False

Question 6

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

Accepted Answer

A)  The stage involves getting reactions from customers by way of concept testing. 
B)  The stage evaluates the potential reaction of channel partners like wholesalers and retailers. 
C)  The stage produces rough estimates of costs, sales, and profits. 
D)  The stage introduces a prototype of the product. 
E)  The stage involves an assessment of the assumptions managers are making about the new idea. 
A)  The stage involves getting reactions from customers by way of concept testing. 
B)  The stage evaluates the potential reaction of channel partners like wholesalers and retailers. 
C)  The stage produces rough estimates of costs, sales, and profits. 
D)  The stage introduces a prototype of the product. 
E)  The stage involves an assessment of the assumptions managers are making about the new idea.

Question 8

Regarding product life cycles,good marketing managers know that ______.

Accepted Answer

A)  all competitors lose money during the sales decline stage 
B)  they are getting longer and profit margins are widening 
C)  industry sales reach their maximum during the market growth stage 
D)  firms earn their biggest profits during the market introduction stage 
E)  industry profits reach their maximum during the market growth stage 
A)  all competitors lose money during the sales decline stage 
B)  they are getting longer and profit margins are widening 
C)  industry sales reach their maximum during the market growth stage 
D)  firms earn their biggest profits during the market introduction stage 
E)  industry profits reach their maximum during the market growth stage

Question 9

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 10

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 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 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.
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 11

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 12

The total sales of a product by all competitors in the industry is ______.

Accepted Answer

A)  highest in the introduction stage 
B)  lowest in the market maturity stage 
C)  highest in the sales decline stage 
D)  lowest in the market growth stage 
E)  lowest in the market introduction stage 
A)  highest in the introduction stage 
B)  lowest in the market maturity stage 
C)  highest in the sales decline stage 
D)  lowest in the market growth stage 
E)  lowest in the market introduction stage

Question 13

The stage of the product life cycle in which competitors are most likely to introduce product improvements is the market growth stage.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

It is difficult to maintain consistent quality in services because ______.

Accepted Answer

A)  Services, unlike goods, are nonperishable 
B)  as opposed to products, services are tangible in nature 
C)  service providers often have to interpret each customer's needs 
D)  variability is reduced as more humans are involved in delivery 
E)  most of the time it requires minimum human interaction 
A)  Services, unlike goods, are nonperishable 
B)  as opposed to products, services are tangible in nature 
C)  service providers often have to interpret each customer's needs 
D)  variability is reduced as more humans are involved in delivery 
E)  most of the time it requires minimum human interaction

Question 16

Midway,Inc.has seen most of its competitors drop out of its product-market due to declining industry sales and profits.But Midway still has much demand for its product from a small group of loyal customers.This product-market is in which product life cycle stage?

Accepted Answer

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

Question 17

To fully understand the nature of competition and the speed of the relevant product life cycle,it is important not to define a market too narrowly.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following products is in the market growth stage of the product life cycle?

Accepted Answer

A)  Laundry detergents 
B)  Breakfast cereals 
C)  E-book readers 
D)  Carbonated soft drinks 
E)  Gasoline-powered cars 
A)  Laundry detergents 
B)  Breakfast cereals 
C)  E-book readers 
D)  Carbonated soft drinks 
E)  Gasoline-powered cars

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Total quality management can be used to improve any implementation effort.

Accepted Answer

A) True 
 B)False

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

In the market introduction stage of the product life cycle,______.

Regarding the new-product development process ______.

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

The market maturity stage of the product life cycle rarely lasts more than one or two months.

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

Regarding product life cycles,good marketing managers know that ______.

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

The total sales of a product by all competitors in the industry is ______.

The stage of the product life cycle in which competitors are most likely to introduce product improvements is the market growth stage.

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

It is difficult to maintain consistent quality in services because ______.

Midway,Inc.has seen most of its competitors drop out of its product-market due to declining industry sales and profits.But Midway still has much demand for its product from a small group of loyal customers.This product-market is in which product life cycle stage?

To fully understand the nature of competition and the speed of the relevant product life cycle,it is important not to define a market too narrowly.

Which of the following products is in the market growth stage of the product life cycle?

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

Total quality management can be used to improve any implementation effort.

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

Exam 11: Product Management and New-Product Development

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

In the market introduction stage of the product life cycle,______.

Regarding the new-product development process ______.

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

The market maturity stage of the product life cycle rarely lasts more than one or two months.

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

Regarding product life cycles,good marketing managers know that ______.

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

The total sales of a product by all competitors in the industry is ______.

The stage of the product life cycle in which competitors are most likely to introduce product improvements is the market growth stage.

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

It is difficult to maintain consistent quality in services because ______.

Midway,Inc.has seen most of its competitors drop out of its product-market due to declining industry sales and profits.But Midway still has much demand for its product from a small group of loyal customers.This product-market is in which product life cycle stage?

To fully understand the nature of competition and the speed of the relevant product life cycle,it is important not to define a market too narrowly.

Which of the following products is in the market growth stage of the product life cycle?

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

Total quality management can be used to improve any implementation effort.

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