Question 1

Ideas about potential new products should

Accepted Answer

A)  be encouraged from any and all sources, since only a few ideas will develop into successful products. 
B)  not be eliminated from consideration until they have been tested in the commercialization stage. 
C)  come primarily from employees of the firm--so that time won't be wasted evaluating product ideas that are inconsistent with the firm's objectives and resources. 
D)  come from outside the firm, since studies show that really new ideas require a fresh perspective. 
E)  None of these alternatives is correct. 
A)  be encouraged from any and all sources, since only a few ideas will develop into successful products. 
B)  not be eliminated from consideration until they have been tested in the commercialization stage. 
C)  come primarily from employees of the firm--so that time won't be wasted evaluating product ideas that are inconsistent with the firm's objectives and resources. 
D)  come from outside the firm, since studies show that really new ideas require a fresh perspective. 
E)  None of these alternatives is correct.

Question 2

"Continuous improvement" means a commitment to constantly make things better--one step at a time.

Accepted Answer

A) True 
 B)False

Question 3

An ROI estimate is needed during the ______________ step of the new-product development process.

Accepted Answer

A)  commercialization 
B)  development 
C)  idea evaluation 
D)  screening 
E)  All of these steps need an ROI estimate. 
A)  commercialization 
B)  development 
C)  idea evaluation 
D)  screening 
E)  All of these steps need an ROI estimate.

Question 4

Which of the following products is NOT in the growth stage of the product life cycle?

Accepted Answer

A)  laptop computers 
B)  public pay telephones 
C)  gas powered automobiles 
D)  washing machines 
E)  None of these choices is in the growth stage. 
A)  laptop computers 
B)  public pay telephones 
C)  gas powered automobiles 
D)  washing machines 
E)  None of these choices is in the growth stage.

Question 5

If you are seeking new product ideas for your business, a good source is:

Accepted Answer

A)  Intermediaries 
B)  Customers 
C)  Your production people 
D)  Your salespeople 
E)  All of these would be good sources for new product ideas. 
A)  Intermediaries 
B)  Customers 
C)  Your production people 
D)  Your salespeople 
E)  All of these would be good sources for new product ideas.

Question 6

Which of the following statements is NOT TRUE of the product life cycle?

Accepted Answer

A)  How long a whole product life cycle takes, and the length of each stage, varies a lot across products. 
B)  Although the life of different products varies, on average product life cycles are getting longer. 
C)  The greater the comparative advantage of a new product over those already on the market, the more rapidly its sales will grow. 
D)  If the product can be tried on a limited basis, without a lot of risk to the customer, it can usually be introduced more quickly. 
E)  A product idea may be in a different life-cycle stage in different markets. 
A)  How long a whole product life cycle takes, and the length of each stage, varies a lot across products. 
B)  Although the life of different products varies, on average product life cycles are getting longer. 
C)  The greater the comparative advantage of a new product over those already on the market, the more rapidly its sales will grow. 
D)  If the product can be tried on a limited basis, without a lot of risk to the customer, it can usually be introduced more quickly. 
E)  A product idea may be in a different life-cycle stage in different markets.

Question 7

The total quality management approach recognizes that defects are an inevitable part of mass production, and that the cost of replacing defective goods is just a cost of doing business.

Accepted Answer

A) True 
 B)False

Question 8

Use this information for question 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 a player in the lawn and garden market - 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.
For which product does WPI need to build primary demand?

Accepted Answer

A)  Wire Closet 
B)  Wire Fold-Fence 
C)  Oil Wire 
D)  Wire Window 
E)  Wire Locker 
A)  Wire Closet 
B)  Wire Fold-Fence 
C)  Oil Wire 
D)  Wire Window 
E)  Wire Locker

Question 9

Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements about "new products" is FALSE?

Accepted Answer

A)  In order for it to be advertised as new, there should be a functionally significant change in the product--according to the FTC. 
B)  A product should be considered "new" by a particular firm if it is new in any way for that company. 
C)  The FTC considers six months as the maximum time that a product should be called "new." 
D)  According to the FTC, a product may be called "new" (for example, in advertising) as long as the firm has made at least some minor change in the package or product. 
E)  A marketing manager should consider a product new if it is aimed at new markets. 
A)  In order for it to be advertised as new, there should be a functionally significant change in the product--according to the FTC. 
B)  A product should be considered "new" by a particular firm if it is new in any way for that company. 
C)  The FTC considers six months as the maximum time that a product should be called "new." 
D)  According to the FTC, a product may be called "new" (for example, in advertising) as long as the firm has made at least some minor change in the package or product. 
E)  A marketing manager should consider a product new if it is aimed at new markets.

Question 11

Which of the following observations concerning the market maturity stage is NOT TRUE?

Accepted Answer

A)  Many aggressive competitors have entered the race for profits. 
B)  There is a long-run downward pressure on prices. 
C)  New firms cannot enter the market at this stage. 
D)  Promotion costs rise and some competitors cut prices to attract business. 
E)  Persuasive promotion becomes more important during this stage. 
A)  Many aggressive competitors have entered the race for profits. 
B)  There is a long-run downward pressure on prices. 
C)  New firms cannot enter the market at this stage. 
D)  Promotion costs rise and some competitors cut prices to attract business. 
E)  Persuasive promotion becomes more important during this stage.

Question 12

Which of the following activities is NOT typical of the commercialization stage?

Accepted Answer

A)  Goods have to be produced to fill the channels of distribution. 
B)  People must be hired and trained to provide services. 
C)  Manufacturing or service facilities have to be set up. 
D)  Full-scale market testing is conducted. 
E)  Products are introduced city by city or region by region in a gradual "rollout." 
A)  Goods have to be produced to fill the channels of distribution. 
B)  People must be hired and trained to provide services. 
C)  Manufacturing or service facilities have to be set up. 
D)  Full-scale market testing is conducted. 
E)  Products are introduced city by city or region by region in a gradual "rollout."

Question 13

Fashion-related products tend to have short life cycles.

Accepted Answer

A) True 
 B)False

Question 14

A product that is new in any way for the company concerned is a new product, according to the text.

Accepted Answer

A) True 
 B)False

Question 15

Fad products are characterized by popular styles and they appeal to the mass market.

Accepted Answer

A) True 
 B)False

Question 16

The two keys to improving how people implement quality service are: (1) training and (2) more inspectors.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process?

Accepted Answer

A)  Customer complaints. 
B)  Lead-users of the product. 
C)  Competitors' products. 
D)  Products found in overseas markets. 
E)  All of these would be effective sources of ideas. 
A)  Customer complaints. 
B)  Lead-users of the product. 
C)  Competitors' products. 
D)  Products found in overseas markets. 
E)  All of these would be effective sources of ideas.

Question 18

Total industry profits reach their maximum during the __________ stage of the product life cycle.

Accepted Answer

A)  market maturity 
B)  sales decline 
C)  market development 
D)  market introduction 
E)  market growth 
A)  market maturity 
B)  sales decline 
C)  market development 
D)  market introduction 
E)  market growth

Question 19

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 20

Product managers:

Accepted Answer

A)  Are especially common in large companies. 
B)  Are sometimes responsible for a product's whole marketing effort. 
C)  Coordinate their efforts with individuals within and outside the company. 
D)  May serve as "product champions" in planning and implementing the promotion effort. 
E)  All of these alternatives are correct. 
A)  Are especially common in large companies. 
B)  Are sometimes responsible for a product's whole marketing effort. 
C)  Coordinate their efforts with individuals within and outside the company. 
D)  May serve as "product champions" in planning and implementing the promotion effort. 
E)  All of these alternatives are correct.

Ideas about potential new products should

"Continuous improvement" means a commitment to constantly make things better--one step at a time.

An ROI estimate is needed during the ______________ step of the new-product development process.

Which of the following products is NOT in the growth stage of the product life cycle?

If you are seeking new product ideas for your business, a good source is:

Which of the following statements is NOT TRUE of the product life cycle?

The total quality management approach recognizes that defects are an inevitable part of mass production, and that the cost of replacing defective goods is just a cost of doing business.

Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.

Which of the following statements about "new products" is FALSE?

Which of the following observations concerning the market maturity stage is NOT TRUE?

Which of the following activities is NOT typical of the commercialization stage?

Fashion-related products tend to have short life cycles.

A product that is new in any way for the company concerned is a new product, according to the text.

Fad products are characterized by popular styles and they appeal to the mass market.

The two keys to improving how people implement quality service are: (1) training and (2) more inspectors.

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process?

Total industry profits reach their maximum during the __________ stage of the product life cycle.

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

Product managers:

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

Ideas about potential new products should

"Continuous improvement" means a commitment to constantly make things better--one step at a time.

An ROI estimate is needed during the ______________ step of the new-product development process.

Which of the following products is NOT in the growth stage of the product life cycle?

If you are seeking new product ideas for your business, a good source is:

Which of the following statements is NOT TRUE of the product life cycle?

The total quality management approach recognizes that defects are an inevitable part of mass production, and that the cost of replacing defective goods is just a cost of doing business.

Experts estimate that 80-95 percent of all new consumer packaged goods brands fail.

Which of the following statements about "new products" is FALSE?

Which of the following observations concerning the market maturity stage is NOT TRUE?

Which of the following activities is NOT typical of the commercialization stage?

Fashion-related products tend to have short life cycles.

A product that is new in any way for the company concerned is a new product, according to the text.

Fad products are characterized by popular styles and they appeal to the mass market.

The two keys to improving how people implement quality service are: (1) training and (2) more inspectors.

Which of the following is an effective source of ideas at the idea generation stage of the new-product development process?

Total industry profits reach their maximum during the __________ stage of the product life cycle.

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

Product managers:

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