Question 1

____ refers to a commitment to constantly make things better one step at a time.

Accepted Answer

A)  Just-In-Time 
B)  Ladder approach 
C)  Continuous improvement 
D)  Production focus 
E)  Sales orientation 
A)  Just-In-Time 
B)  Ladder approach 
C)  Continuous improvement 
D)  Production focus 
E)  Sales orientation

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Sales growth is faster when the product can be used on a trial basis.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about the commercialization stage of the new-product development process is False?

Accepted Answer

A)  A firm should always rollout the product to the entire target market at one time. 
B)  Channels of distribution need to be filled with goods. 
C)  Introductory promotion tends to be more costly if the firm is entering a very competitive market. 
D)  People need to be hired and trained to provide services. 
E)  All of the above statements are false. 
A)  A firm should always rollout the product to the entire target market at one time. 
B)  Channels of distribution need to be filled with goods. 
C)  Introductory promotion tends to be more costly if the firm is entering a very competitive market. 
D)  People need to be hired and trained to provide services. 
E)  All of the above statements are false.

Question 5

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 step of the new-product development process is the "Wire Tent"?

Accepted Answer

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

Question 6

At one time most firms assumed defects were an inevitable part of mass production. _____ firms showed that this assumption was not valid.

Accepted Answer

A)  Chinese 
B)  American 
C)  European 
D)  Japanese 
E)  Latin American 
A)  Chinese 
B)  American 
C)  European 
D)  Japanese 
E)  Latin American

Question 7

During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline.

Accepted Answer

A) True 
 B)False

Question 8

Sales and profits generally decrease continually throughout the product life cycle.

Accepted Answer

A) True 
 B)False

Question 9

Regarding product life cycles, good marketing managers know that:

Accepted Answer

A)  all new brands start off in the market introduction stage. 
B)  product life cycles can be extended through product modifications. 
C)  a product must pass through all the product life cycle stages. 
D)  no strategy planning is needed during the sales decline stage. 
E)  a firm should use penetration pricing during market introduction, especially if the cycle is expected to move slowly. 
A)  all new brands start off in the market introduction stage. 
B)  product life cycles can be extended through product modifications. 
C)  a product must pass through all the product life cycle stages. 
D)  no strategy planning is needed during the sales decline stage. 
E)  a firm should use penetration pricing during market introduction, especially if the cycle is expected to move slowly.

Question 10

Low immediate satisfaction but high long-run consumer welfare is provided by:

Accepted Answer

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

Question 11

The length of each stage in the product life cycle is set.

Accepted Answer

A) True 
 B)False

Question 12

Regarding product life cycles, which is TRUE?

Accepted Answer

A)  Industry sales and profits tend to reach their maximum during the market maturity stage. 
B)  Product life cycles describe industry sales and profits within some product-market. 
C)  Product life cycles are generally getting shorter and cannot be extended. 
D)  Every new brand must pass through all four stages of the product life cycle. 
E)  All of the above are true. 
A)  Industry sales and profits tend to reach their maximum during the market maturity stage. 
B)  Product life cycles describe industry sales and profits within some product-market. 
C)  Product life cycles are generally getting shorter and cannot be extended. 
D)  Every new brand must pass through all four stages of the product life cycle. 
E)  All of the above are true.

Question 13

Regarding the idea generation stage of the new-product development process, which of the following is TRUE?

Accepted Answer

A)  Business firms often get new product ideas from competitors. 
B)  It is best to focus on only a few good ideas at this stage. 
C)  Studying customers' ideas is not very helpful, since they tend to focus on minor technical changes in existing products. 
D)  Most companies don't need a special procedure for seeking new product ideas because so many ideas are coming from so many different sources. 
E)  None of the above is true. 
A)  Business firms often get new product ideas from competitors. 
B)  It is best to focus on only a few good ideas at this stage. 
C)  Studying customers' ideas is not very helpful, since they tend to focus on minor technical changes in existing products. 
D)  Most companies don't need a special procedure for seeking new product ideas because so many ideas are coming from so many different sources. 
E)  None of the above is true.

Question 14

A product that is new in any way for the company concerned is a new product, according to the text.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following products is not in the growth stage of the product life cycle?

Accepted Answer

A)  laptop computers 
B)  public pay telephones 
C)  gas powered automobiles 
D)  washing machines 
E)  none of the above is in the growth stage. 
A)  laptop computers 
B)  public pay telephones 
C)  gas powered automobiles 
D)  washing machines 
E)  none of the above is in the growth stage.

Question 16

The product life cycle shows that sales of an individual firm's brand follows a general pattern--which is very useful for marketing strategy planning.

Accepted Answer

A) True 
 B)False

Question 17

A manager shouldn't worry about making a financial return from money spent on a quality program as long as customers recognize that the quality is high.

Accepted Answer

A) True 
 B)False

Question 18

In the new-product development process discussed in the text, the burden is on the new-product idea to prove itself or be rejected.

Accepted Answer

A) True 
 B)False

Question 19

At Toyota, its Lexus designers attempt to make improvements to the car's design each year, even if those changes are minor ones. This process is an example of:

Accepted Answer

A)  continuous improvement. 
B)  concept testing. 
C)  product liability. 
D)  empowerment. 
E)  market testing. 
A)  continuous improvement. 
B)  concept testing. 
C)  product liability. 
D)  empowerment. 
E)  market testing.

Question 20

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)  high-definition TVs. 
D)  carbonated soft drinks. 
E)  gasoline-powered cars. 
A)  laundry detergents. 
B)  breakfast cereals. 
C)  high-definition TVs. 
D)  carbonated soft drinks. 
E)  gasoline-powered cars.

Exam 10: Product Management and New-Product Development

____ refers to a commitment to constantly make things better one step at a time.

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

Sales growth is faster when the product can be used on a trial basis.

Which of the following statements about the commercialization stage of the new-product development process is False?

At one time most firms assumed defects were an inevitable part of mass production. _____ firms showed that this assumption was not valid.

During the market growth stage of the product life cycle, industry profits usually reach their peak and begin to decline.

Sales and profits generally decrease continually throughout the product life cycle.

Regarding product life cycles, good marketing managers know that:

Low immediate satisfaction but high long-run consumer welfare is provided by:

The length of each stage in the product life cycle is set.

Regarding product life cycles, which is TRUE?

Regarding the idea generation stage of the new-product development process, which of the following is TRUE?

A product that is new in any way for the company concerned is a new product, according to the text.

Which of the following products is not in the growth stage of the product life cycle?

The product life cycle shows that sales of an individual firm's brand follows a general pattern--which is very useful for marketing strategy planning.

A manager shouldn't worry about making a financial return from money spent on a quality program as long as customers recognize that the quality is high.

In the new-product development process discussed in the text, the burden is on the new-product idea to prove itself or be rejected.

At Toyota, its Lexus designers attempt to make improvements to the car's design each year, even if those changes are minor ones. This process is an example of:

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

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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