Question 1

A firm may introduce or withdraw a product during any stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 2

The product life cycle has four stages. Which of the following is not one of these?

Accepted Answer

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

Question 3

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

Question 4

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 the above 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 the above is true.

Question 5

If an individual is injured by a defective or unsafely designed product, the seller's legal obligation to pay damages is called product liability.

Accepted Answer

A) True 
 B)False

Question 6

"Fashion" is the currently accepted or popular ______________

Accepted Answer

A)  trend. 
B)  idea. 
C)  fad. 
D)  assortment. 
E)  style. 
A)  trend. 
B)  idea. 
C)  fad. 
D)  assortment. 
E)  style.

Question 7

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?

Accepted Answer

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

Question 8

Regarding what a "new product" is, your text says:

Accepted Answer

A)  a product should be considered "new" if it is new in any way for the company concerned. 
B)  that the FTC would not call an existing product new, even if it were changed in a functionally significant way. 
C)  there is no legal limit on how long a product can be called "new." 
D)  a new product must be totally different before it can be called a "new product." 
E)  All of the above. 
A)  a product should be considered "new" if it is new in any way for the company concerned. 
B)  that the FTC would not call an existing product new, even if it were changed in a functionally significant way. 
C)  there is no legal limit on how long a product can be called "new." 
D)  a new product must be totally different before it can be called a "new product." 
E)  All of the above.

Question 9

Which of the following gives the correct order of the steps in the new-product development process?

Accepted Answer

A)  Screening, idea generation, idea evaluation, development, commercialization 
B)  Idea generation, screening, idea evaluation, development, commercialization 
C)  Idea generation, idea evaluation, development, screening, commercialization 
D)  Development, idea generation, screening, commercialization, idea evaluation 
E)  Commercialization, idea generation, idea evaluation, screening, development 
A)  Screening, idea generation, idea evaluation, development, commercialization 
B)  Idea generation, screening, idea evaluation, development, commercialization 
C)  Idea generation, idea evaluation, development, screening, commercialization 
D)  Development, idea generation, screening, commercialization, idea evaluation 
E)  Commercialization, idea generation, idea evaluation, screening, development

Question 10

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.
-Based on the text's recommendations for different stages in the product life cycle, for which product does WPI most need to consider developing different markets?

Accepted Answer

A)  Wire Window 
B)  Oil Wire 
C)  Wire Closet 
D)  It would be equally important to develop new markets for all of these products. 
A)  Wire Window 
B)  Oil Wire 
C)  Wire Closet 
D)  It would be equally important to develop new markets for all of these products.

Question 11

The total sales of a product, by all competitors in the industry, is

Accepted Answer

A)  highest in the introduction stage. 
B)  lowest in the market maturity stage. 
C)  highest in the sales decline stage. 
D)  lowest in the market growth stage. 
E)  lowest in the market introduction stage. 
A)  highest in the introduction stage. 
B)  lowest in the market maturity stage. 
C)  highest in the sales decline stage. 
D)  lowest in the market growth stage. 
E)  lowest in the market introduction stage.

Question 12

Which of the following provides high immediate satisfaction and high long-run consumer welfare?

Accepted Answer

A)  Salutary products 
B)  Deficient products 
C)  Desirable products 
D)  Pleasing products 
A)  Salutary products 
B)  Deficient products 
C)  Desirable products 
D)  Pleasing products

Question 13

At which stage of the product life cycle are VHS video recorders?

Accepted Answer

A)  Stagnation 
B)  Market Introduction 
C)  Sales Decline 
D)  Market Maturity 
E)  Market Growth 
A)  Stagnation 
B)  Market Introduction 
C)  Sales Decline 
D)  Market Maturity 
E)  Market Growth

Question 14

This type of a new-product idea is high on both long-run consumer welfare and immediate satisfaction.

Accepted Answer

A)  Desirable product 
B)  Salutary product 
C)  Pleasing product 
D)  Deficient product 
E)  Safety product 
A)  Desirable product 
B)  Salutary product 
C)  Pleasing product 
D)  Deficient product 
E)  Safety product

Question 15

In the idea evaluation stage

Accepted Answer

A)  an actual product is developed. 
B)  companies cannot estimate likely costs. 
C)  concept testing is used for getting reactions from customers. 
D)  there is some engineering to design and develop the physical part of a product. 
E)  the final ROI is estimated. 
A)  an actual product is developed. 
B)  companies cannot estimate likely costs. 
C)  concept testing is used for getting reactions from customers. 
D)  there is some engineering to design and develop the physical part of a product. 
E)  the final ROI is estimated.

Question 16

According to the text, product life cycles are:

Accepted Answer

A)  getting longer. 
B)  speeding up in the later stages. 
C)  now about the same length as 100 years ago. 
D)  getting shorter. 
E)  slowing down in the early stages. 
A)  getting longer. 
B)  speeding up in the later stages. 
C)  now about the same length as 100 years ago. 
D)  getting shorter. 
E)  slowing down in the early stages.

Question 17

It is possible for a firm with a mature product in the U.S. to experience new growth with the same product in international markets.

Accepted Answer

A) True 
 B)False

Question 18

_____ means giving employees the authority to correct a problem without first checking with management.

Accepted Answer

A)  Responsibility adjustment 
B)  Empowerment 
C)  Training 
D)  Induction 
E)  Benchmarking 
A)  Responsibility adjustment 
B)  Empowerment 
C)  Training 
D)  Induction 
E)  Benchmarking

Question 19

Product life cycles refer to the life of:

Accepted Answer

A)  a firm's individual product. 
B)  a product idea. 
C)  a firm's brand. 
D)  a fashion. 
E)  all of the above. 
A)  a firm's individual product. 
B)  a product idea. 
C)  a firm's brand. 
D)  a fashion. 
E)  all of the above.

Question 20

A product idea may be in different life-cycle stages in different markets.

Accepted Answer

A) True 
 B)False

Exam 10: Product Management and New-Product Development

A firm may introduce or withdraw a product during any stage of the product life cycle.

The product life cycle has four stages. Which of the following is not one of these?

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

Which of the following is true of product liability?

If an individual is injured by a defective or unsafely designed product, the seller's legal obligation to pay damages is called product liability.

"Fashion" is the currently accepted or popular ______________

Midway, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But Midway still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage?

Regarding what a "new product" is, your text says:

Which of the following gives the correct order of the steps in the new-product development process?

The total sales of a product, by all competitors in the industry, is

Which of the following provides high immediate satisfaction and high long-run consumer welfare?

At which stage of the product life cycle are VHS video recorders?

This type of a new-product idea is high on both long-run consumer welfare and immediate satisfaction.

In the idea evaluation stage

According to the text, product life cycles are:

It is possible for a firm with a mature product in the U.S. to experience new growth with the same product in international markets.

_____ means giving employees the authority to correct a problem without first checking with management.

Product life cycles refer to the life of:

A product idea may be in different life-cycle stages in different markets.

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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