Question 1

A new product idea is more likely to move quickly through the early stages of the product life cycle when:

Accepted Answer

A)  the product is easy to use. 
B)  the product is compatible with the values and experiences of target customers. 
C)  the product can be given a trial. 
D)  the product's advantages are easy to communicate. 
E)  All of the above are correct. 
A)  the product is easy to use. 
B)  the product is compatible with the values and experiences of target customers. 
C)  the product can be given a trial. 
D)  the product's advantages are easy to communicate. 
E)  All of the above are correct.

Question 2

During the market introduction stage of the product life cycle:

Accepted Answer

A)  considerable money is spent on promotion while place development is left until later stages. 
B)  products usually show large profits if marketers have successfully carved out new markets. 
C)  most potential customers are quite anxious to try out the new-product concept. 
D)  funds are being invested in marketing with the expectation of future profits. 
E)  product and promotion are more important than place and price. 
A)  considerable money is spent on promotion while place development is left until later stages. 
B)  products usually show large profits if marketers have successfully carved out new markets. 
C)  most potential customers are quite anxious to try out the new-product concept. 
D)  funds are being invested in marketing with the expectation of future profits. 
E)  product and promotion are more important than place and price.

Question 3

Chris Carmine manages specific products and promotion at Bright-n-Shiny Toothbrush Company. Her job responsibility sounds like that of a ________.

Accepted Answer

A)  brand manager 
B)  project coordinator 
C)  channel manager 
D)  sales representative 
E)  marketing research manager 
A)  brand manager 
B)  project coordinator 
C)  channel manager 
D)  sales representative 
E)  marketing research manager

Question 4

Wujin Chu, marketing manager for Innovative Electronics Products, reviews a S.W.O.T. analysis to help him evaluate four new product ideas his company is currently considering. Chu is operating in the ____ step of the new-product development process.

Accepted Answer

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

Question 5

Which of the following observations concerning a phase-out strategy is incorrect?

Accepted Answer

A)  If prospects are poor in a product-market, a phase-out strategy may be needed. 
B)  Phasing out a product may involve some difficult implementation problems. 
C)  Phase-out is also a strategy, and it must be market-oriented to cut losses. 
D)  The need for phasing out becomes more obvious as the market maturity stage arrives. 
E)  It is sometimes better to phase out products gradually. 
A)  If prospects are poor in a product-market, a phase-out strategy may be needed. 
B)  Phasing out a product may involve some difficult implementation problems. 
C)  Phase-out is also a strategy, and it must be market-oriented to cut losses. 
D)  The need for phasing out becomes more obvious as the market maturity stage arrives. 
E)  It is sometimes better to phase out products gradually.

Question 6

According to the FTC, for a producer to call a product "new," the product:

Accepted Answer

A)  must be no more than two months old. 
B)  must have achieved brand insistence. 
C)  must be entirely new or changed in a functionally significant or substantial respect. 
D)  must have been changed in some way during the last year. 
E)  None of the above is a correct answer. 
A)  must be no more than two months old. 
B)  must have achieved brand insistence. 
C)  must be entirely new or changed in a functionally significant or substantial respect. 
D)  must have been changed in some way during the last year. 
E)  None of the above is a correct answer.

Question 7

If you are seeking new product ideas for your business, a good source is:

Accepted Answer

A)  Intermediaries 
B)  Customers 
C)  Your production people 
D)  Your salespeople 
E)  All of the above. 
A)  Intermediaries 
B)  Customers 
C)  Your production people 
D)  Your salespeople 
E)  All of the above.

Question 8

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.
-For which product does WPI need to build primary demand?

Accepted Answer

A)  Wire Closet 
B)  Wire Fold-Fence 
C)  Oil Wire 
D)  Wire Window 
E)  Wire Locker 
A)  Wire Closet 
B)  Wire Fold-Fence 
C)  Oil Wire 
D)  Wire Window 
E)  Wire Locker

Question 9

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 10

During the sales decline stage

Accepted Answer

A)  price competition from dying products is reduced. 
B)  profits are non-existent. 
C)  new products replace the old. 
D)  profits increase and then decrease. 
E)  none of the above. 
A)  price competition from dying products is reduced. 
B)  profits are non-existent. 
C)  new products replace the old. 
D)  profits increase and then decrease. 
E)  none of the above.

Question 11

In screening new product ideas, Willie Baker came upon an idea for a new mountain bike that struck him as relatively dangerous and potentially harmful to consumer welfare. However, he thought it would provide very high immediate customer satisfaction. Such a product would be considered a

Accepted Answer

A)  pleasing product. 
B)  deficient product. 
C)  star product. 
D)  salutary product. 
E)  desirable product. 
A)  pleasing product. 
B)  deficient product. 
C)  star product. 
D)  salutary product. 
E)  desirable product.

Question 12

Regarding product life cycle planning, good marketing managers know that:

Accepted Answer

A)  a "me-too" new brand may immediately enter during market growth or market maturity. 
B)  every brand must go through the sales decline stage. 
C)  market introduction is usually profitable for the innovator. 
D)  any change in an existing product results in a new product life cycle. 
E)  All of the above are true. 
A)  a "me-too" new brand may immediately enter during market growth or market maturity. 
B)  every brand must go through the sales decline stage. 
C)  market introduction is usually profitable for the innovator. 
D)  any change in an existing product results in a new product life cycle. 
E)  All of the above are true.

Question 13

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 the above are true. 
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 the above are true.

Question 14

Using total quality management to improve the implementation of a marketing plan is likely to include:

Accepted Answer

A)  the use of Pareto charts as a visual aid to determine why things go wrong. 
B)  the use of fishbone diagrams to show which problems are most important. 
C)  an emphasis on physical products over service products. 
D)  training and empowerment of employees to identify and solve customer problems. 
E)  all of the above are correct. 
A)  the use of Pareto charts as a visual aid to determine why things go wrong. 
B)  the use of fishbone diagrams to show which problems are most important. 
C)  an emphasis on physical products over service products. 
D)  training and empowerment of employees to identify and solve customer problems. 
E)  all of the above are correct.

Question 15

Fad products are characterized by popular styles and they appeal to the mass market.

Accepted Answer

A) True 
 B)False

Question 16

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. 
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. 
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 17

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 18

When looking for new product ideas, which of the following would be good sources?

Accepted Answer

A)  Your salespeople. 
B)  Your intermediaries. 
C)  Your competitors. 
D)  Your production people. 
E)  All of the above. 
A)  Your salespeople. 
B)  Your intermediaries. 
C)  Your competitors. 
D)  Your production people. 
E)  All of the above.

Question 19

Gradual "rollouts" are characteristic of which step of the new-product development process?

Accepted Answer

A)  Idea generation 
B)  Development 
C)  Idea screening 
D)  Idea evaluation 
E)  Commercialization 
A)  Idea generation 
B)  Development 
C)  Idea screening 
D)  Idea evaluation 
E)  Commercialization

Question 20

Product managers or brand managers are most often found in firms with only one or a few related products.

Accepted Answer

A) True 
 B)False

Exam 10: Product Management and New-Product Development

A new product idea is more likely to move quickly through the early stages of the product life cycle when:

During the market introduction stage of the product life cycle:

Chris Carmine manages specific products and promotion at Bright-n-Shiny Toothbrush Company. Her job responsibility sounds like that of a ________.

Wujin Chu, marketing manager for Innovative Electronics Products, reviews a S.W.O.T. analysis to help him evaluate four new product ideas his company is currently considering. Chu is operating in the ____ step of the new-product development process.

Which of the following observations concerning a phase-out strategy is incorrect?

According to the FTC, for a producer to call a product "new," the product:

If you are seeking new product ideas for your business, a good source is:

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:

During the sales decline stage

In screening new product ideas, Willie Baker came upon an idea for a new mountain bike that struck him as relatively dangerous and potentially harmful to consumer welfare. However, he thought it would provide very high immediate customer satisfaction. Such a product would be considered a

Regarding product life cycle planning, good marketing managers know that:

Regarding the new-product development process:

Using total quality management to improve the implementation of a marketing plan is likely to include:

Fad products are characterized by popular styles and they appeal to the mass market.

Regarding product life cycles, good marketing managers know that:

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.

When looking for new product ideas, which of the following would be good sources?

Gradual "rollouts" are characteristic of which step of the new-product development process?

Product managers or brand managers are most often found in firms with only one or a few related products.

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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