Question 1

During the MARKET MATURITY stage of the product life cycle:

Accepted Answer

A)  some competitors drop out of the market--and no new firms enter. 
B)  persuasive promotion becomes more important. 
C)  promotion emphasizes the advantages of the basic product concept. 
D)  total industry sales and profits reach their maximum levels. 
E)  All of the above. 
A)  some competitors drop out of the market--and no new firms enter. 
B)  persuasive promotion becomes more important. 
C)  promotion emphasizes the advantages of the basic product concept. 
D)  total industry sales and profits reach their maximum levels. 
E)  All of the above.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Sales growth is faster when a new product is easy to use and its advantages are easy to communicate.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is NOT TRUE of the product life cycle?

Accepted Answer

A)  How long a whole product life cycle takes, and the length of each stage, varies a lot across products. 
B)  Although the life of different products varies, on average product life cycles are getting longer. 
C)  The greater the comparative advantage of a new product over those already on the market, the more rapidly its sales will grow. 
D)  If the product can be tried on a limited basis, without a lot of risk to the customer, it can usually be introduced more quickly. 
E)  A product idea may be in a different life-cycle stage in different markets. 
A)  How long a whole product life cycle takes, and the length of each stage, varies a lot across products. 
B)  Although the life of different products varies, on average product life cycles are getting longer. 
C)  The greater the comparative advantage of a new product over those already on the market, the more rapidly its sales will grow. 
D)  If the product can be tried on a limited basis, without a lot of risk to the customer, it can usually be introduced more quickly. 
E)  A product idea may be in a different life-cycle stage in different markets.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Product or brand managers are commonly used when a firm:

Accepted Answer

A)  has several different kinds of products or brands. 
B)  wants to eliminate the job of the advertising manager. 
C)  has one or a few products--all of which are important to its success. 
D)  wants to eliminate the job of sales manager. 
E)  wants one person to have authority over all the functional areas that affect the profitability of a particular product. 
A)  has several different kinds of products or brands. 
B)  wants to eliminate the job of the advertising manager. 
C)  has one or a few products--all of which are important to its success. 
D)  wants to eliminate the job of sales manager. 
E)  wants one person to have authority over all the functional areas that affect the profitability of a particular product.

Question 7

It is toward the end of the _____ stage of the product life cycle when industry profits begin to decline.

Accepted Answer

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

Question 8

Concerning product life cycles:

Accepted Answer

A)  each of a producer's individual products follows the life cycle pattern. 
B)  in the early part of market maturity, new products begin to replace the old. 
C)  the stages usually have varying lengths. 
D)  in general, life cycles are getting longer. 
E)  None of the above is true. 
A)  each of a producer's individual products follows the life cycle pattern. 
B)  in the early part of market maturity, new products begin to replace the old. 
C)  the stages usually have varying lengths. 
D)  in general, life cycles are getting longer. 
E)  None of the above is true.

Question 9

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 10

In the idea generation stage of the new-product development process

Accepted Answer

A)  many new ideas in business markets come from competitors. 
B)  customers are given new products to test. 
C)  a S.W.O.T. analysis helps evaluate new product ideas. 
D)  a firm decides which ideas to pursue based on return on investment screening. 
E)  final ROI estimates are done. 
A)  many new ideas in business markets come from competitors. 
B)  customers are given new products to test. 
C)  a S.W.O.T. analysis helps evaluate new product ideas. 
D)  a firm decides which ideas to pursue based on return on investment screening. 
E)  final ROI estimates are done.

Question 11

In which product life cycle stage must companies focus on educating potential customers about the advantages of a new product concept?

Accepted Answer

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

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

According to the US Federal Trade Commission (FTC), a firm can call its product "new" for _____ months.

Accepted Answer

A)  1 
B)  3 
C)  6 
D)  9 
E)  12 
A)  1 
B)  3 
C)  6 
D)  9 
E)  12

Question 14

When a large firm has several different kinds of products, product managers or brand managers may be put in charge of each one.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following activities is NOT typical of the commercialization stage?

Accepted Answer

A)  Goods have to be produced to fill the channels of distribution. 
B)  People must be hired and trained to provide services. 
C)  Manufacturing or service facilities have to be set up. 
D)  Full-scale market testing is conducted. 
E)  Products are introduced city by city or region by region in a gradual "rollout." 
A)  Goods have to be produced to fill the channels of distribution. 
B)  People must be hired and trained to provide services. 
C)  Manufacturing or service facilities have to be set up. 
D)  Full-scale market testing is conducted. 
E)  Products are introduced city by city or region by region in a gradual "rollout."

Question 16

In general, product life cycles appear to be getting longer in recent years.

Accepted Answer

A) True 
 B)False

Question 17

Use this information for questions 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 in lawn and garden - 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.
-In which stage of the product life cycle is "Wire Locker"?

Accepted Answer

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

Question 18

Kelly Drake, marketing manager for Find-Ur-Way global positioning systems, is testing the marketing mix for one of her company's new products. The product was introduced in two different markets with different prices and packages. This suggests the new product was in the _____ step of the new-product development process.

Accepted Answer

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

Question 19

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 20

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.

Exam 10: Product Management and New-Product Development

During the MARKET MATURITY stage of the product life cycle:

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

Sales growth is faster when a new product is easy to use and its advantages are easy to communicate.

Which of the following statements is NOT TRUE of the product life cycle?

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

Product or brand managers are commonly used when a firm:

It is toward the end of the _____ stage of the product life cycle when industry profits begin to decline.

Concerning product life cycles:

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.

In the idea generation stage of the new-product development process

In which product life cycle stage must companies focus on educating potential customers about the advantages of a new product concept?

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

According to the US Federal Trade Commission (FTC), a firm can call its product "new" for _____ months.

When a large firm has several different kinds of products, product managers or brand managers may be put in charge of each one.

Which of the following activities is NOT typical of the commercialization stage?

In general, product life cycles appear to be getting longer in recent years.

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

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

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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