Question 1

Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle?

Accepted Answer

A)  Place - move toward selective distribution. 
B)  Promotion - build selective demand. 
C)  Price - meet competition. 
D)  Competitive situation - Heading toward pure competition. 
E)  Product - Some drop out. 
A)  Place - move toward selective distribution. 
B)  Promotion - build selective demand. 
C)  Price - meet competition. 
D)  Competitive situation - Heading toward pure competition. 
E)  Product - Some drop out.

Question 2

Regarding product life cycles, which of the following is NOT true?

Accepted Answer

A)  Industry profits are likely to level off or decline before sales level off. 
B)  The level of promotion usually decreases in market maturity since there is less revenue to cover the cost. 
C)  Many close substitutes are usually competing in the market maturity stage. 
D)  It is usually expensive for a new firm to enter in the market maturity stage. 
E)  There is a downward pressure on prices over time. 
A)  Industry profits are likely to level off or decline before sales level off. 
B)  The level of promotion usually decreases in market maturity since there is less revenue to cover the cost. 
C)  Many close substitutes are usually competing in the market maturity stage. 
D)  It is usually expensive for a new firm to enter in the market maturity stage. 
E)  There is a downward pressure on prices over time.

Question 3

To be called "new" according to the FTC, a product must be entirely new or changed in a functionally significant or substantial respect.

Accepted Answer

A) True 
 B)False

Question 4

Regarding product life cycles, good marketing managers know that:

Accepted Answer

A)  any new brand must start off in the market introduction stage. 
B)  any product modification results in a new product life cycle. 
C)  product life cycles cannot be extended. 
D)  a firm's product can be withdrawn before its related product life cycle is over. 
E)  All of these alternatives are true. 
A)  any new brand must start off in the market introduction stage. 
B)  any product modification results in a new product life cycle. 
C)  product life cycles cannot be extended. 
D)  a firm's product can be withdrawn before its related product life cycle is over. 
E)  All of these alternatives are true.

Question 5

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Accepted Answer

A) True 
 B)False

Question 6

Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands.

Accepted Answer

A) True 
 B)False

Question 7

In which product life cycle stage must companies focus on educating potential customers about the advantages of a new product concept?

Accepted Answer

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

Question 8

The first step in new-product development is evaluating ideas.

Accepted Answer

A) True 
 B)False

Question 9

The _____ step in the new-product development process could involve research and development as well as engineering to design and build the physical part of the product.

Accepted Answer

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

Question 10

Total quality management:

Accepted Answer

A)  requires that everyone in the organization be concerned with improving quality. 
B)  means more than just using statistical controls to reduce manufacturing defects. 
C)  views the cost of lost customers as an important result of quality problems. 
D)  applies to service producers as well as manufacturers. 
E)  All of these alternatives are correct. 
A)  requires that everyone in the organization be concerned with improving quality. 
B)  means more than just using statistical controls to reduce manufacturing defects. 
C)  views the cost of lost customers as an important result of quality problems. 
D)  applies to service producers as well as manufacturers. 
E)  All of these alternatives are correct.

Question 11

Sales of a producer's wax paper food-wrap are declining fast. The advertising manager--looking for a way to attract attention to the brand--suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission

Accepted Answer

A)  would allow the company to call the product "new" for only six months. 
B)  probably would not approve of this at all. 
C)  would allow the advertising campaign if it concluded that consumers thought the different package made it new. 
D)  does not regulate advertising, so it would not pay any attention to this firm. 
E)  None of these alternatives is correct. 
A)  would allow the company to call the product "new" for only six months. 
B)  probably would not approve of this at all. 
C)  would allow the advertising campaign if it concluded that consumers thought the different package made it new. 
D)  does not regulate advertising, so it would not pay any attention to this firm. 
E)  None of these alternatives is correct.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

Which of the following observations concerning a phase-out strategy is incorrect?

Accepted Answer

A)  If prospects are poor in a product-market, a phase-out strategy may be needed. 
B)  Phasing out a product may involve some difficult implementation problems. 
C)  Phase-out is also a strategy, and it must be market-oriented to cut losses. 
D)  The need for phasing out becomes more obvious as the market maturity stage arrives. 
E)  It is sometimes better to phase out products gradually. 
A)  If prospects are poor in a product-market, a phase-out strategy may be needed. 
B)  Phasing out a product may involve some difficult implementation problems. 
C)  Phase-out is also a strategy, and it must be market-oriented to cut losses. 
D)  The need for phasing out becomes more obvious as the market maturity stage arrives. 
E)  It is sometimes better to phase out products gradually.

Question 15

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 16

Which of the following is NOT a separate stage of the new-product development process?

Accepted Answer

A)  Idea generation. 
B)  Screening. 
C)  Idea evaluation. 
D)  Marketing research. 
E)  Commercialization. 
A)  Idea generation. 
B)  Screening. 
C)  Idea evaluation. 
D)  Marketing research. 
E)  Commercialization.

Question 17

Cargill, Inc. is finally earning a profit on the unique product it introduced six months ago. Cargill's advertising is both informative and persuasive. Much money is being spent on Place development. There is little price competition, although several competitors have come out with reasonable imitations. Total industry sales and profits are both rising. In which stage of the product life cycle is Cargill operating?

Accepted Answer

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

Question 18

Kelly Drake, marketing manager for Find-Ur-Way global positioning systems, is testing the marketing mix for one of her company's new products. The product was introduced in two different markets with different prices and packages. This suggests the new product was in the _____ step of the new-product development process.

Accepted Answer

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

Question 19

During the introduction stage of the product life cycle,

Accepted Answer

A)  "me-too" products quickly take market share away from the innovator. 
B)  most products achieve intensive distribution. 
C)  industry profits are at their highest. 
D)  promotion is likely to be needed to build primary demand. 
E)  None of these alternatives is true. 
A)  "me-too" products quickly take market share away from the innovator. 
B)  most products achieve intensive distribution. 
C)  industry profits are at their highest. 
D)  promotion is likely to be needed to build primary demand. 
E)  None of these alternatives is true.

Question 20

Total quality management can be used to improve any implementation effort.

Accepted Answer

A) True 
 B)False

Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle?

Regarding product life cycles, which of the following is NOT true?

To be called "new" according to the FTC, a product must be entirely new or changed in a functionally significant or substantial respect.

Regarding product life cycles, good marketing managers know that:

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands.

In which product life cycle stage must companies focus on educating potential customers about the advantages of a new product concept?

The first step in new-product development is evaluating ideas.

The _____ step in the new-product development process could involve research and development as well as engineering to design and build the physical part of the product.

Total quality management:

Sales of a producer's wax paper food-wrap are declining fast. The advertising manager--looking for a way to attract attention to the brand--suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission

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

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

Which of the following observations concerning a phase-out strategy is incorrect?

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 a separate stage of the new-product development process?

During the introduction stage of the product life cycle,

Total quality management can be used to improve any implementation effort.

Marketing39s 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

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

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

Filters

Exam 9: Product Management and New-Product Development

Which of the following is LESS LIKELY to happen as a product moves through the later stages of the product life cycle?

Regarding product life cycles, which of the following is NOT true?

To be called "new" according to the FTC, a product must be entirely new or changed in a functionally significant or substantial respect.

Regarding product life cycles, good marketing managers know that:

The market maturity stage of the product life cycle rarely lasts more than one or two months.

Product life cycles describe industry sales and profits within a particular product-market, and not the sales and profits of individual brands.

In which product life cycle stage must companies focus on educating potential customers about the advantages of a new product concept?

The first step in new-product development is evaluating ideas.

The _____ step in the new-product development process could involve research and development as well as engineering to design and build the physical part of the product.

Total quality management:

Sales of a producer's wax paper food-wrap are declining fast. The advertising manager--looking for a way to attract attention to the brand--suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission

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

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

Which of the following observations concerning a phase-out strategy is incorrect?

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 a separate stage of the new-product development process?

During the introduction stage of the product life cycle,

Total quality management can be used to improve any implementation effort.

Marketing39s 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

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

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

Filters