Question 1

When moving into the market maturity stage of the product life cycle, a firm might be able to obtain a competitive advantage:

Accepted Answer

A)  with lower production costs. 
B)  by being more successful at promotion. 
C)  by having a slightly better product than competitors. 
D)  all of the above. 
E)  none of the above. 
A)  with lower production costs. 
B)  by being more successful at promotion. 
C)  by having a slightly better product than competitors. 
D)  all of the above. 
E)  none of the above.

Question 2

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

Question 3

From a "social responsibility" viewpoint, marketers should try to design and sell:

Accepted Answer

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

Question 4

Many people like to drive motorcycles. But motorcycles have a high death rate in even minor accidents. These motorcycles should probably be thought of as

Accepted Answer

A)  desirable products. 
B)  pleasing products. 
C)  salutary products. 
D)  deficient products. 
E)  There is not enough information to tell. 
A)  desirable products. 
B)  pleasing products. 
C)  salutary products. 
D)  deficient products. 
E)  There is not enough information to tell.

Question 5

Identify the INCORRECT statement pertaining to the stages of the product life cycle.

Accepted Answer

A)  The market introduction stage can be seen as investing in the future. 
B)  In the market growth stage profits keep rising steadily with no sign of decline. 
C)  Sales level off and profits continue down in the market maturity stage. 
D)  The sales decline stage can be seen as a time of replacement. 
E)  Industry profits go down throughout the market maturity stage. 
A)  The market introduction stage can be seen as investing in the future. 
B)  In the market growth stage profits keep rising steadily with no sign of decline. 
C)  Sales level off and profits continue down in the market maturity stage. 
D)  The sales decline stage can be seen as a time of replacement. 
E)  Industry profits go down throughout the market maturity stage.

Question 6

A "rollout" happens in the ____ step of the new-product development process?

Accepted Answer

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

Question 7

Managers who use the TQM approach think of quality improvement as a _____ process.

Accepted Answer

A)  branching 
B)  netting 
C)  sorting 
D)  averaging 
E)  benchmarking 
A)  branching 
B)  netting 
C)  sorting 
D)  averaging 
E)  benchmarking

Question 8

Low immediate satisfaction and low long-run consumer welfare is provided by:

Accepted Answer

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

Question 9

A drug company has developed a new diet pill that helps people lose weight easily. Research shows a high level of consumer immediate satisfaction. However, their effect on long-term consumer welfare is low because they permanently increase the consumer's blood pressure. In this (hypothetical) situation, the product should be thought of as a

Accepted Answer

A)  desirable product. 
B)  pleasing product. 
C)  salutary product. 
D)  deficient product. 
E)  There is not enough information to tell. 
A)  desirable product. 
B)  pleasing product. 
C)  salutary product. 
D)  deficient product. 
E)  There is not enough information to tell.

Question 10

The product life-cycle concept tells a manager how long each stage of the cycle will last.

Accepted Answer

A) True 
 B)False

Question 11

The cost of replacing defective parts is the biggest cost of poor quality.

Accepted Answer

A) True 
 B)False

Question 12

Market introduction, market growth, market maturity, and sales decline are the four stages of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 13

During the sales decline stage of the product life cycle, no firm can earn a profit.

Accepted Answer

A) True 
 B)False

Question 14

New-product development usually fits into the old routines of a firm, so it is not necessary for top management to support new-product development in any special way.

Accepted Answer

A) True 
 B)False

Question 15

Industry sales are highest in which of the following product life cycle stages?

Accepted Answer

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

Question 16

Which of the following observations concerning a Pareto chart is TRUE?

Accepted Answer

A)  It shows the number of times a problem cause occurs. 
B)  It shows how problem causes are ordered from most frequent to least frequent. 
C)  It shows the frequency of different complaints. 
D)  It focuses the manager's attention on which implementation problem to fix first. 
E)  All of the above. 
A)  It shows the number of times a problem cause occurs. 
B)  It shows how problem causes are ordered from most frequent to least frequent. 
C)  It shows the frequency of different complaints. 
D)  It focuses the manager's attention on which implementation problem to fix first. 
E)  All of the above.

Question 17

Rita Scavone manages a pizza restaurant. She spends a night reviewing customer comments and sorting them on what went right and what went wrong. Rita is following a principle of

Accepted Answer

A)  total quality management. 
B)  fishbone diagramming. 
C)  complaint management. 
D)  franchisee analysis. 
E)  ignoring small problems. 
A)  total quality management. 
B)  fishbone diagramming. 
C)  complaint management. 
D)  franchisee analysis. 
E)  ignoring small problems.

Question 18

The sales and profits of an individual brand may or may not follow the life cycle pattern of the product idea.

Accepted Answer

A) True 
 B)False

Question 19

Product managers are especially common in small, single-product companies.

Accepted Answer

A) True 
 B)False

Question 20

Product liability means the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products.

Accepted Answer

A) True 
 B)False

Exam 10: Product Management and New-Product Development

When moving into the market maturity stage of the product life cycle, a firm might be able to obtain a competitive advantage:

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

From a "social responsibility" viewpoint, marketers should try to design and sell:

Many people like to drive motorcycles. But motorcycles have a high death rate in even minor accidents. These motorcycles should probably be thought of as

Identify the INCORRECT statement pertaining to the stages of the product life cycle.

A "rollout" happens in the ____ step of the new-product development process?

Managers who use the TQM approach think of quality improvement as a _____ process.

Low immediate satisfaction and low long-run consumer welfare is provided by:

The product life-cycle concept tells a manager how long each stage of the cycle will last.

The cost of replacing defective parts is the biggest cost of poor quality.

Market introduction, market growth, market maturity, and sales decline are the four stages of the product life cycle.

During the sales decline stage of the product life cycle, no firm can earn a profit.

New-product development usually fits into the old routines of a firm, so it is not necessary for top management to support new-product development in any special way.

Industry sales are highest in which of the following product life cycle stages?

Which of the following observations concerning a Pareto chart is TRUE?

Rita Scavone manages a pizza restaurant. She spends a night reviewing customer comments and sorting them on what went right and what went wrong. Rita is following a principle of

The sales and profits of an individual brand may or may not follow the life cycle pattern of the product idea.

Product managers are especially common in small, single-product companies.

Product liability means the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe 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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