Question 1

Many companies look to the developing world for breakthrough new products that meet global consumer needs at low cost.

Accepted Answer

A) True 
 B)False  True

Question 2

A high percentage of new-product ideas survive to the commercialization step in the new-product development process.

Accepted Answer

A) True 
 B)False  False

Question 3

Persuasive promotion is especially important in which of the following product life cycle stages?

Accepted Answer

A)  Market maturity. 
B)  Sales decline. 
C)  Market introduction. 
D)  Market growth. 
A)  Market maturity. 
B)  Sales decline. 
C)  Market introduction. 
D)  Market growth. A

Question 4

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 the above is true. 
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 the above is true.

Question 5

An ROI estimate is needed during the ______________ step of the new-product development process.

Accepted Answer

A)  commercialization 
B)  development 
C)  idea evaluation 
D)  screening 
E)  All of the above. 
A)  commercialization 
B)  development 
C)  idea evaluation 
D)  screening 
E)  All of the above.

Question 6

Simply showing customer-contact employees around the rest of the business-so that they learn how their contribution fits in the total effort-can be a key part of their training.

Accepted Answer

A) True 
 B)False

Question 7

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

Accepted Answer

A)  idea generation 
B)  commercialization 
C)  screening 
D)  development 
E)  roll out 
A)  idea generation 
B)  commercialization 
C)  screening 
D)  development 
E)  roll out

Question 8

The risks and costs of failure in new-product development are minor when one considers the likely rewards.

Accepted Answer

A) True 
 B)False

Question 9

During the various stages of the product life cycle, the attitudes and needs of target customers do not change.

Accepted Answer

A) True 
 B)False

Question 10

Firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle--when profits are highest.

Accepted Answer

A) True 
 B)False

Question 11

It is difficult to maintain consistent quality in services because

Accepted Answer

A)  services are nonperishable. 
B)  as opposed to products, services are tangible in nature. 
C)  the server is inseparable from the service. 
D)  variability is reduced as more humans are involved in delivery. 
E)  it requires minimum human interaction. 
A)  services are nonperishable. 
B)  as opposed to products, services are tangible in nature. 
C)  the server is inseparable from the service. 
D)  variability is reduced as more humans are involved in delivery. 
E)  it requires minimum human interaction.

Question 12

Marketing managers should recognize that:

Accepted Answer

A)  product life cycles appear to be getting longer. 
B)  every segment within a market has the same product life cycle. 
C)  the product life cycle describes the sales and profits of individual products, not industry sales and profits. 
D)  firms that enter mature markets have to compete with established firms for declining industry profits. 
E)  None of the above is a true statement. 
A)  product life cycles appear to be getting longer. 
B)  every segment within a market has the same product life cycle. 
C)  the product life cycle describes the sales and profits of individual products, not industry sales and profits. 
D)  firms that enter mature markets have to compete with established firms for declining industry profits. 
E)  None of the above is a true statement.

Question 13

Product ideas that provide a low degree of immediate satisfaction but a high degree of long-run consumer welfare are

Accepted Answer

A)  desirable products. 
B)  salutary products. 
C)  pleasing products. 
D)  deficient products. 
E)  unsought products. 
A)  desirable products. 
B)  salutary products. 
C)  pleasing products. 
D)  deficient products. 
E)  unsought products.

Question 14

In the market introduction stage of a fast product life cycle, _____ helps develop loyal customers early and keeps competitors out.

Accepted Answer

A)  a low initial penetration price 
B)  intensive distribution 
C)  promotion that builds selective demand 
D)  promotion that reminds 
E)  a market skimming price 
A)  a low initial penetration price 
B)  intensive distribution 
C)  promotion that builds selective demand 
D)  promotion that reminds 
E)  a market skimming price

Question 15

A Pareto chart is a visual aid that helps organize cause and effect relationships for "things gone wrong."

Accepted Answer

A) True 
 B)False

Question 16

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called:

Accepted Answer

A)  breach of warranty. 
B)  product liability. 
C)  deficit accountability. 
D)  the rule of reason. 
E)  salutary responsibility. 
A)  breach of warranty. 
B)  product liability. 
C)  deficit accountability. 
D)  the rule of reason. 
E)  salutary responsibility.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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)  e-readers. 
D)  carbonated soft drinks. 
E)  gasoline-powered cars. 
A)  laundry detergents. 
B)  breakfast cereals. 
C)  e-readers. 
D)  carbonated soft drinks. 
E)  gasoline-powered cars.

Question 19

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 20

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.

Exam 10: Product Management and New-Product Development

Many companies look to the developing world for breakthrough new products that meet global consumer needs at low cost.

A high percentage of new-product ideas survive to the commercialization step in the new-product development process.

Persuasive promotion is especially important in which of the following product life cycle stages?

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

An ROI estimate is needed during the ______________ step of the new-product development process.

Simply showing customer-contact employees around the rest of the business-so that they learn how their contribution fits in the total effort-can be a key part of their training.

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

The risks and costs of failure in new-product development are minor when one considers the likely rewards.

During the various stages of the product life cycle, the attitudes and needs of target customers do not change.

Firms should try to develop marketing mixes that make the most of the market growth stage of the product life cycle--when profits are highest.

It is difficult to maintain consistent quality in services because

Marketing managers should recognize that:

Product ideas that provide a low degree of immediate satisfaction but a high degree of long-run consumer welfare are

In the market introduction stage of a fast product life cycle, _____ helps develop loyal customers early and keeps competitors out.

A Pareto chart is a visual aid that helps organize cause and effect relationships for "things gone wrong."

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called:

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

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

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

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

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

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

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

Economics Fundamentals

Marketing Arithmetic

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