Question 1

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called:

Accepted Answer

A)  product responsibility. 
B)  breach of warranty. 
C)  rule of reason. 
D)  product liability. 
E)  design enforcement. 
A)  product responsibility. 
B)  breach of warranty. 
C)  rule of reason. 
D)  product liability. 
E)  design enforcement.

Question 2

Competition for a product or product category begins to increase rapidly during the following stage of the product life cycle:

Accepted Answer

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

Question 3

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 4

In the 1990s, DVDs replaced audiocassettes and floppy disks as the storage media of choice for music and computers. At which stage of the product life cycle is the DVD today?

Accepted Answer

A)  Market introduction 
B)  Market growth 
C)  Market immaturity 
D)  Sales decline 
E)  Market extinction 
A)  Market introduction 
B)  Market growth 
C)  Market immaturity 
D)  Sales decline 
E)  Market extinction

Question 5

As a product moves through its product life cycle:

Accepted Answer

A)  industry profits may decrease while industry sales increase. 
B)  the nature of competition moves toward pure competition or oligopoly. 
C)  entirely different target markets may be aimed at. 
D)  customers' attitudes and needs may change. 
E)  All of these alternatives are true. 
A)  industry profits may decrease while industry sales increase. 
B)  the nature of competition moves toward pure competition or oligopoly. 
C)  entirely different target markets may be aimed at. 
D)  customers' attitudes and needs may change. 
E)  All of these alternatives are true.

Question 6

If the prospects in some product-market are poor, a firm may need a "phase out" strategy.

Accepted Answer

A) True 
 B)False

Question 7

"Product life cycles" are concerned with sales and profits:

Accepted Answer

A)  in generic markets-not individual product-markets. 
B)  of a firm's individual products or brands. 
C)  of goods but not services. 
D)  in a product-market. 
E)  None of these alternatives is a good answer. 
A)  in generic markets-not individual product-markets. 
B)  of a firm's individual products or brands. 
C)  of goods but not services. 
D)  in a product-market. 
E)  None of these alternatives is a good answer.

Question 8

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

Accepted Answer

A)  idea generation 
B)  commercialization 
C)  screening 
D)  development 
E)  roll out 
A)  idea generation 
B)  commercialization 
C)  screening 
D)  development 
E)  roll out

Question 9

Regarding product life cycles, a good marketing manager knows that

Accepted Answer

A)  entirely different target markets may be involved at different stages of the product life cycle. 
B)  a product that doesn't get beyond the introduction stage is still likely to be very profitable. 
C)  industry profits are increasing well after sales start to decline. 
D)  once a market goes into sales decline, oligopoly conditions set in. 
E)  All of these alternatives are correct. 
A)  entirely different target markets may be involved at different stages of the product life cycle. 
B)  a product that doesn't get beyond the introduction stage is still likely to be very profitable. 
C)  industry profits are increasing well after sales start to decline. 
D)  once a market goes into sales decline, oligopoly conditions set in. 
E)  All of these alternatives are correct.

Question 10

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 11

New products that are minor variations on existing products, and which require no change to consumer behavior, are called _____.

Accepted Answer

A)  fads 
B)  new products 
C)  second movers 
D)  discontinuous innovation 
E)  continuous innovations 
A)  fads 
B)  new products 
C)  second movers 
D)  discontinuous innovation 
E)  continuous innovations

Question 12

Which of the following statements about pioneers and followers is false?

Accepted Answer

A)  A pioneer is the first to market with a new product idea. 
B)  On average, pioneers are usually more profitable than followers. 
C)  Second movers typically have a strong customer-focus. 
D)  Second movers that respond quickly build market share in the market growth stage. 
E)  None of these choices is false. 
A)  A pioneer is the first to market with a new product idea. 
B)  On average, pioneers are usually more profitable than followers. 
C)  Second movers typically have a strong customer-focus. 
D)  Second movers that respond quickly build market share in the market growth stage. 
E)  None of these choices is false.

Question 13

Simply showing customer-contact employees around the rest of the business-so that they learn how their contribution fits in the total effort-can be a key part of their training.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

Accepted Answer

A)  The stage involves getting reactions from customers by way of concept testing. 
B)  The stage evaluates the potential reaction of channel partners like wholesalers and retailers. 
C)  The stage produces rough estimates of costs, sales, and profits. 
D)  The stage introduces a prototype of the product. 
E)  The stage involves an assessment of the assumptions managers are making about the new idea. 
A)  The stage involves getting reactions from customers by way of concept testing. 
B)  The stage evaluates the potential reaction of channel partners like wholesalers and retailers. 
C)  The stage produces rough estimates of costs, sales, and profits. 
D)  The stage introduces a prototype of the product. 
E)  The stage involves an assessment of the assumptions managers are making about the new idea.

Question 15

Concept testing:

Accepted Answer

A)  takes place during the screening step of the new-product development process. 
B)  involves usage tests by potential customers. 
C)  seeks potential customers' reactions and attitudes toward new product ideas-before actual models are developed. 
D)  is the last step before commercialization of a new product idea. 
E)  None of these alternatives is correct. 
A)  takes place during the screening step of the new-product development process. 
B)  involves usage tests by potential customers. 
C)  seeks potential customers' reactions and attitudes toward new product ideas-before actual models are developed. 
D)  is the last step before commercialization of a new product idea. 
E)  None of these alternatives is correct.

Question 16

In general, top management support is needed for successful new-product development efforts.

Accepted Answer

A) True 
 B)False

Question 17

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 18

When new product ideas are chosen based on ratings and comments from customers, this process is called ______.

Accepted Answer

A)  idea engineering 
B)  creative resourcing 
C)  reaction engineering 
D)  crowdsourcing 
E)  idea solicitation 
A)  idea engineering 
B)  creative resourcing 
C)  reaction engineering 
D)  crowdsourcing 
E)  idea solicitation

Question 19

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 20

It is always in the best interest of the market pioneer for competitors to stay out of the market.

Accepted Answer

A) True 
 B)False

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called:

Competition for a product or product category begins to increase rapidly during the following stage of the product life cycle:

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.

In the 1990s, DVDs replaced audiocassettes and floppy disks as the storage media of choice for music and computers. At which stage of the product life cycle is the DVD today?

As a product moves through its product life cycle:

If the prospects in some product-market are poor, a firm may need a "phase out" strategy.

"Product life cycles" are concerned with sales and profits:

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

Regarding product life cycles, a good marketing manager knows that

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

New products that are minor variations on existing products, and which require no change to consumer behavior, are called _____.

Which of the following statements about pioneers and followers is false?

Simply showing customer-contact employees around the rest of the business-so that they learn how their contribution fits in the total effort-can be a key part of their training.

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

Concept testing:

In general, top management support is needed for successful new-product development efforts.

In the idea evaluation stage

When new product ideas are chosen based on ratings and comments from customers, this process is called ______.

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

It is always in the best interest of the market pioneer for competitors to stay out of the market.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

Promotionintroduction 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

Filters

Exam 9: Product Management and New-Product Development

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called:

Competition for a product or product category begins to increase rapidly during the following stage of the product life cycle:

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.

In the 1990s, DVDs replaced audiocassettes and floppy disks as the storage media of choice for music and computers. At which stage of the product life cycle is the DVD today?

As a product moves through its product life cycle:

If the prospects in some product-market are poor, a firm may need a "phase out" strategy.

"Product life cycles" are concerned with sales and profits:

In the _____ step of the new-product development process, a marketing manager evaluates how well the idea fits with the company's objectives.

Regarding product life cycles, a good marketing manager knows that

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

New products that are minor variations on existing products, and which require no change to consumer behavior, are called _____.

Which of the following statements about pioneers and followers is false?

Simply showing customer-contact employees around the rest of the business-so that they learn how their contribution fits in the total effort-can be a key part of their training.

Which of the following is not an accurate characterization of the idea evaluation stage of the new-product development process?

Concept testing:

In general, top management support is needed for successful new-product development efforts.

In the idea evaluation stage

When new product ideas are chosen based on ratings and comments from customers, this process is called ______.

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

It is always in the best interest of the market pioneer for competitors to stay out of the market.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

Promotionintroduction 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

Filters