Question 1

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

Accepted Answer

A)  large profits are typical until competition arrives 
B)  Price and Promotion are more important than Place and Product 
C)  all forms of expenditure on Place and Promotion are put on hold 
D)  much money is spent for Product, Place, and Promotion 
E)  most customers are looking for the new product 
A)  large profits are typical until competition arrives 
B)  Price and Promotion are more important than Place and Product 
C)  all forms of expenditure on Place and Promotion are put on hold 
D)  much money is spent for Product, Place, and Promotion 
E)  most customers are looking for the new product

Question 2

In its efforts to support new-product development ideas within its own company,Google allows its employees to spend ______ percent of their time each week thinking about new product ideas,even if the ideas are not related to the employees' specific jobs.

Accepted Answer

A)  5 
B)  10 
C)  15 
D)  20 
E)  25 
A)  5 
B)  10 
C)  15 
D)  20 
E)  25

Question 3

To be called "new" according to the FTC,a product must be entirely new or changed in a functionally significant or substantial respect.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Getting reactions from customers about how well a new-product idea fits their needs is ______.

Accepted Answer

A)  concept testing 
B)  target marketing 
C)  screening 
D)  brand positioning 
E)  product liability 
A)  concept testing 
B)  target marketing 
C)  screening 
D)  brand positioning 
E)  product liability

Question 6

Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.

Accepted Answer

A) True 
 B)False

Question 7

According to the text,a new product is one that is ______.

Accepted Answer

A)  physically changed 
B)  unique 
C)  new in any way for the company concerned 
D)  completely new physically and conceptually 
E)  None of these is a good answer. 
A)  physically changed 
B)  unique 
C)  new in any way for the company concerned 
D)  completely new physically and conceptually 
E)  None of these is a good answer.

Question 8

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 9

In the new-product development process,an ROI estimate is needed during four of the stages,namely,______.

Accepted Answer

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

Question 10

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 11

When a firm's product has won loyal customers,it can be successful for a long time-even in a mature or declining market.

Accepted Answer

A) True 
 B)False

Question 12

In the context of the legal obligation of sellers to pay damages to individuals,product liability settlements ______.

Accepted Answer

A)  may exceed a company's insurance coverage but not its total assets 
B)  may exceed not only a company's insurance coverage but its total assets 
C)  never exceed a company's insurance coverage or its total assets 
D)  never exceed three-fourths of a company's insurance coverage 
E)  are always too small to make a difference to the company's total assets 
A)  may exceed a company's insurance coverage but not its total assets 
B)  may exceed not only a company's insurance coverage but its total assets 
C)  never exceed a company's insurance coverage or its total assets 
D)  never exceed three-fourths of a company's insurance coverage 
E)  are always too small to make a difference to the company's total assets

Question 13

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 14

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 15

The new-product development process should ______.

Accepted Answer

A)  have ongoing support from top management 
B)  avoid applying quantitative screening criteria-since applying such criteria tends to eliminate most of the "really new" ideas 
C)  be informal-to encourage creativity 
D)  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)  have ongoing support from top management 
B)  avoid applying quantitative screening criteria-since applying such criteria tends to eliminate most of the "really new" ideas 
C)  be informal-to encourage creativity 
D)  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 16

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 17

Product managers can be instrumental in adapting products for international markets.

Accepted Answer

A) True 
 B)False

Question 18

National Family Opinion (NFO)contacts several hundred members of its consumer panel and provides them with a printed description of a new chewing gum and its package.Consumers are then given a survey containing several multiple-choice questions about their attitudes toward the new product,based on what they read in the description.The final survey question asks consumers to indicate the likelihood that they would purchase the product.NFO seems to be conducting a ______.

Accepted Answer

A)  market test 
B)  concept test 
C)  prototype test 
D)  sensitivity test 
E)  attitude test 
A)  market test 
B)  concept test 
C)  prototype test 
D)  sensitivity test 
E)  attitude test

Question 19

PepsiCo is evaluating an idea for a new "clear cola" by using focus groups made up of young adults to suggest brand names for the proposed product.This is an example of ______.

Accepted Answer

A)  empowerment 
B)  concept testing 
C)  market testing 
D)  TQM 
E)  EDI 
A)  empowerment 
B)  concept testing 
C)  market testing 
D)  TQM 
E)  EDI

Question 20

Because firms must be developing new products all the time,which of the following statements is true?

Accepted Answer

A)  Competitors are likely to rapidly introduce product improvements in the market growth stage. 
B)  The developed economies experience technological advances quicker than the less-developed economies. 
C)  Although the life of different products varies, product life cycles are getting shorter. 
D)  One new invention may make possible many new products to replace old ones. 
E)  All of these statements are true. 
A)  Competitors are likely to rapidly introduce product improvements in the market growth stage. 
B)  The developed economies experience technological advances quicker than the less-developed economies. 
C)  Although the life of different products varies, product life cycles are getting shorter. 
D)  One new invention may make possible many new products to replace old ones. 
E)  All of these statements are true.

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

In its efforts to support new-product development ideas within its own company,Google allows its employees to spend ______ percent of their time each week thinking about new product ideas,even if the ideas are not related to the employees' specific jobs.

To be called "new" according to the FTC,a product must be entirely new or changed in a functionally significant or substantial respect.

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

Getting reactions from customers about how well a new-product idea fits their needs is ______.

Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.

According to the text,a new product is one that is ______.

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

In the new-product development process,an ROI estimate is needed during four of the stages,namely,______.

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 ______.

When a firm's product has won loyal customers,it can be successful for a long time-even in a mature or declining market.

In the context of the legal obligation of sellers to pay damages to individuals,product liability settlements ______.

Which of the following is true of product liability?

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

The new-product development process should ______.

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

Product managers can be instrumental in adapting products for international markets.

PepsiCo is evaluating an idea for a new "clear cola" by using focus groups made up of young adults to suggest brand names for the proposed product.This is an example of ______.

Because firms must be developing new products all the time,which of the following statements is true?

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

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

In its efforts to support new-product development ideas within its own company,Google allows its employees to spend ______ percent of their time each week thinking about new product ideas,even if the ideas are not related to the employees' specific jobs.

To be called "new" according to the FTC,a product must be entirely new or changed in a functionally significant or substantial respect.

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

Getting reactions from customers about how well a new-product idea fits their needs is ______.

Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.

According to the text,a new product is one that is ______.

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

In the new-product development process,an ROI estimate is needed during four of the stages,namely,______.

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 ______.

When a firm's product has won loyal customers,it can be successful for a long time-even in a mature or declining market.

In the context of the legal obligation of sellers to pay damages to individuals,product liability settlements ______.

Which of the following is true of product liability?

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

The new-product development process should ______.

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

Product managers can be instrumental in adapting products for international markets.

PepsiCo is evaluating an idea for a new "clear cola" by using focus groups made up of young adults to suggest brand names for the proposed product.This is an example of ______.

Because firms must be developing new products all the time,which of the following statements is true?

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