Question 1

Which stage of the product life cycle is the largest profit stage for companies?

Accepted Answer

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

Question 2

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

Accepted Answer

A)  be concerned about the possibility of the firm getting a monopoly. 
B)  allow the company to call the product "new" for only six months. 
C)  probably not approve of this at all because the product doesn't meet the FTC's definition of "new." 
D)  allow the promotion effort if it felt that consumers would think the coloring made it "new." 
E)  None of these alternatives is correct. 
A)  be concerned about the possibility of the firm getting a monopoly. 
B)  allow the company to call the product "new" for only six months. 
C)  probably not approve of this at all because the product doesn't meet the FTC's definition of "new." 
D)  allow the promotion effort if it felt that consumers would think the coloring made it "new." 
E)  None of these alternatives is correct.

Question 3

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  breach of warranty. 
B)  product liability. 
C)  deficit accountability. 
D)  the rule of reason. 
E)  salutary responsibility. 
A)  breach of warranty. 
B)  product liability. 
C)  deficit accountability. 
D)  the rule of reason. 
E)  salutary responsibility.

Question 5

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 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

Total quality management applies when the firm's product is a physical good, but not if it is a service.

Accepted Answer

A) True 
 B)False

Question 9

In the market introduction stage of the product life cycle

Accepted Answer

A)  sales are the highest. 
B)  most companies experience losses. 
C)  industry profits rise. 
D)  industry sales level off. 
E)  total industry profit is highest. 
A)  sales are the highest. 
B)  most companies experience losses. 
C)  industry profits rise. 
D)  industry sales level off. 
E)  total industry profit is highest.

Question 10

Competition is toughest in which of the following product life cycle stages?

Accepted Answer

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

Question 11

When a market test for a new product is successful, the firm typically introduces the product in different regions of the U.S. in sequential stages. This process is called a:

Accepted Answer

A)  rollout. 
B)  fallout. 
C)  TQM. 
D)  concept test. 
E)  JIT. 
A)  rollout. 
B)  fallout. 
C)  TQM. 
D)  concept test. 
E)  JIT.

Question 12

The Japanese success showed that one of the biggest costs of poor quality is lost customers.

Accepted Answer

A) True 
 B)False

Question 13

According to your text, which of the following is an example of a "new product"?

Accepted Answer

A)  An existing product that has been modified in some way. 
B)  An existing product for which new uses have been found in other product-markets. 
C)  A wholly new product idea. 
D)  An existing product being offered to new markets. 
E)  All of these are examples of a "new product." 
A)  An existing product that has been modified in some way. 
B)  An existing product for which new uses have been found in other product-markets. 
C)  A wholly new product idea. 
D)  An existing product being offered to new markets. 
E)  All of these are examples of a "new product."

Question 14

Marketing managers should recognize that:

Accepted Answer

A)  product life cycles appear to be getting longer. 
B)  every segment within a market has the same product life cycle. 
C)  the product life cycle describes the sales and profits of individual products, not industry sales and profits. 
D)  firms that enter mature markets have to compete with established firms for declining industry profits. 
E)  None of these alternatives is correct. 
A)  product life cycles appear to be getting longer. 
B)  every segment within a market has the same product life cycle. 
C)  the product life cycle describes the sales and profits of individual products, not industry sales and profits. 
D)  firms that enter mature markets have to compete with established firms for declining industry profits. 
E)  None of these alternatives is correct.

Question 15

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 16

Which of the following statements about the idea evaluation step is false?

Accepted Answer

A)  Companies can often estimate likely costs, revenue, and profitability at this stage. 
B)  Product planners can compare the cost advantages and limitations of a new product with those currently being used. 
C)  Product tests with customers are used to revise the early versions of the product. 
D)  This step should gather enough information to help decide whether there is an opportunity. 
E)  None of these statements is false. 
A)  Companies can often estimate likely costs, revenue, and profitability at this stage. 
B)  Product planners can compare the cost advantages and limitations of a new product with those currently being used. 
C)  Product tests with customers are used to revise the early versions of the product. 
D)  This step should gather enough information to help decide whether there is an opportunity. 
E)  None of these statements is false.

Question 17

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 18

A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.

Accepted Answer

A) True 
 B)False

Question 19

The risks and costs of failure in new-product development are minor when one considers the likely rewards.

Accepted Answer

A) True 
 B)False

Question 20

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 these alternatives is correct. 
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 these alternatives is correct.

Which stage of the product life cycle is the largest profit stage for companies?

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

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

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

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

Total quality management applies when the firm's product is a physical good, but not if it is a service.

In the market introduction stage of the product life cycle

Competition is toughest in which of the following product life cycle stages?

When a market test for a new product is successful, the firm typically introduces the product in different regions of the U.S. in sequential stages. This process is called a:

The Japanese success showed that one of the biggest costs of poor quality is lost customers.

According to your text, which of the following is an example of a "new product"?

Marketing managers should recognize that:

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.

Which of the following statements about the idea evaluation step is false?

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

A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.

The risks and costs of failure in new-product development are minor when one considers the likely rewards.

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

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

Which stage of the product life cycle is the largest profit stage for companies?

Seeking to stop declining sales for an established mouthwash, a sales manager suggests that new coloring be added to the product and a major promotion effort be started for the "new" product. The Federal Trade Commission would:

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

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

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

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

Total quality management applies when the firm's product is a physical good, but not if it is a service.

In the market introduction stage of the product life cycle

Competition is toughest in which of the following product life cycle stages?

When a market test for a new product is successful, the firm typically introduces the product in different regions of the U.S. in sequential stages. This process is called a:

The Japanese success showed that one of the biggest costs of poor quality is lost customers.

According to your text, which of the following is an example of a "new product"?

Marketing managers should recognize that:

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.

Which of the following statements about the idea evaluation step is false?

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

A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.

The risks and costs of failure in new-product development are minor when one considers the likely rewards.

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

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