Deck 9: Developing New Products and Managing the Product Life Cycle

Question 1

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

A)growth
B)introduction
C)adoption
D)product development
E)maturity

Answer 1

B

Question 2

Your company decides to use only internal sources for developing new- product ideas.Which of the following would NOT be consulted?

A)company records and data
B)executives and professionals
C)salespeople
D)suppliers
E)intrapreneurial programs

Answer 2

D

Question 3

Increasing profits will most likely occur at which stage of the PLC?

A)product development
B)growth
C)introduction
D)decline
E)maturity

Answer 3

B

Question 4

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar- powered vacuum cleaner.But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys.After setting up a demonstration booth in a mall in a Chicago suburb,Evelyn felt more assured than ever that her idea would be a hit.
Consumers seemed receptive and offered helpful pieces of advice,such as how much they would pay for the vacuum,what colors they would prefer,and why they would not buy the vacuum.
The vacuum itself was dome- shaped,something like a small saucer,with a filter bag on top and sensory nodes along the edges.After being charged in the sunlight,the vacuum could run for 10 hours,covering a floor area of 600 square feet.As the apparatus lightly bumped into table legs,chairs,and so on,the sensory nodes allowed the vacuum to move around the objects in various directions.This is the same type of technology used in the manufacture of children's race cars and walking dolls.
Evelyn knew that the solar- powered vacuum would be especially helpful to both elderly consumers,who may have a more difficult time with vacuuming,and on- the- go consumers who lead busy lives.The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500- unit production run and a substantial financial investment,Evelyn set up a multiple- city test market,in a Chicago mall and in an appliance store in New Jersey."It's such a novel idea," Evelyn added."People will notice it,even if they don't buy it right away."
Evelyn's is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on- the- go and elderly consumers.

A)prototype
B)product idea
C)product concept
D)promotional product
E)product image

Question 5

A _ _ is the way consumers perceive an actual or potential product.

A)product concept
B)product image
C)concept test
D)product idea
E)test market

Question 6

occurred when Alton Johnson's fascination with the fruits of Brazil led him to develop juices with new fruit flavors by Bosa Nova for the American market.

A)Product manufacturing
B)Product development
C)Concept testing
D)Idea generation
E)Idea screening

Question 7

New- product development starts with .

A)concept testing
B)test marketing
C)idea generation
D)concept development
E)idea screening

Question 8

CellTones,a new company selling several lines of cellular phones,has closely modeled its products after successful products that are already in the marketplace.As it prepares to enter the market with its new products and services,which of the following should concern CellTones the most?

A)the Federal Food,Drug,and Cosmetic Act
B)legal obligations to suppliers and dealers
C)limited warranties
D)patent laws
E)product liability suits

Question 9

Over the past 100 years or so,Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world.Crayola crayons are in the _ stage of the PLC.

A)growth
B)decline
C)maturity
D)incubation
E)introduction

Question 10

After concept testing,a firm would engage in which stage in developing and marketing a new product?

A)marketing strategy development
B)product development
C)business analysis
D)idea screening
E)test marketing

Question 11

At Fantastic Flavors,a large regional chain of candy stores,employees from marketing,design,production,and finance work in a cross- functional group to save time and money in the new- product development process.Fantastic Flavors uses a(n)approach.

A)team- based new- product development
B)sequential new- product development
C)innovation management system
D)consumer composite
E)customer- centered new- product development

Question 12

For some _,a simple description consisting of a word or picture might be sufficient.

A)business analyses
B)product developments
C)marketing strategies
D)concept tests
E)test markets

Question 13

The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs.The owners will begin the first idea- reducing stage,called ,to arrive at a realistic number to adopt.

A)business analysis
B)concept testing
C)idea generation
D)concept development
E)idea screening

Question 14

Some products that have entered the decline stage have been cycled back to the growth stage through _ .

A)promotion or repositioning
B)innovation management
C)concept testing
D)business analysis
E)customer- centered product development

Question 15

P&G introduced its Duncan Hines ready- to- spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready- to- spread frosting,which eclipsed the Duncan Hines product introduction.This act illustrates .

A)the variety of sources for idea generation
B)one of the problems associated with test marketing
C)why prototypes are so important
D)why many companies engage in test marketing
E)how idea screening can make a product a commercial success

Question 16

The third part of the marketing strategy statement includes all of the following EXCEPT _ _.

A)long- run sales
B)short- run sales
C)marketing mix strategies
D)profit goals
E)A and C

Question 17

Product improvements,product modifications,and original products can all be classified as .

A)new products
B)product extensions
C)pioneer products
D)test products
E)product strategies

Question 18

Your firm added three new products earlier this year to increase variety for customers.Two of them failed to reach even minimal sales.Which of the following is LEAST likely to have been the cause of their failure?

A)Competitors fought back harder than expected.
B)The products were priced too high.
C)The products were advertised incorrectly.
D)Research was too extensive.
E)The product launch was ill- timed.

Question 19

Although test marketing costs can be high,they are often small when compared with .

A)prototype development costs
B)research and development costs
C)the costs of a major mistake
D)business analysis costs
E)the costs of idea generation

Question 20

Which of the following best describes the role of a product steward?

A)to protect consumers from harm
B)to develop a new- product concept into a physical product
C)to evaluate new- product ideas against a set of general criteria
D)to protect the company from liability by identifying and solving potential product problems
E)A and D

Question 21

P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter.In these examples,management decided to the products.

A)maintain
B)further test
C)harvest
D)ignore the test market results of
E)drop

Question 22

Following the decision to "time" the introduction of the new product,a company must decide to launch the new product.

A)how
B)why
C)where
D)to what degree
E)all of the above

Question 23

Many marketers are now using new interactive technologies,such as Frito- Lay's online virtual convenience store,to reduce the cost of .

A)concept testing
B)test marketing
C)commercialization
D)concept development
E)product development

Question 24

The major purpose of test marketing is to provide management with the information needed to make a final decision about .

A)whether to launch the new product
B)how to develop a market strategy
C)how long to compete in the market
D)which market to compete in
E)how to compete in the market

Question 25

Which stage in the PLC is characterized by rapid market acceptance and increasing sales?

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

Question 26

Mattel's Barbie is an example of an age- defying product.Barbie,simultaneously timeless and trendy,is in the _ stage of the PLC.

A)adoption
B)introduction
C)maturity
D)decline
E)growth

Question 27

In a _,new products and marketing tactics are tested online in a virtual shopping environment.

A)controlled test market
B)random test market
C)single- city test market
D)standard test market
E)simulated test market

Question 28

The advantages of standardizing an international product include all of the following EXCEPT .

A)lower product design costs
B)the adaptation of products to different markets
C)the development of a consistent image
D)decreased manufacturing costs
E)lower marketing costs

Question 29

In order to get their new products to market more quickly,many companies are adopting a faster,team- oriented approach called .

A)sequential product development
B)simulated new- product development
C)team- based new- product development
D)phased- in new- product development
E)market development

Question 30

Introducing a new product into the market is called .

A)commercialization
B)marketing development
C)new product development
D)experimenting
E)test marketing

Question 31

Under what circumstances might it be wise for a company to do little or no test marketing?

A)when the product has no substitutes and is new in its category
B)when the costs of developing and introducing the product are low
C)when management is not sure of the marketing program
D)when management is not sure of the product
E)when a new product requires a major investment

Question 32

Which type of new- product development process focuses on finding new ways to solve customer problems and create more customer- satisfying experiences?

A)sequential product development
B)concept testing
C)new- product development
D)team- based new- product development
E)customer- centered new- product development

Question 33

Which of the following is a product concept?

A)a high- tech,stylish running shoe
B)a thin,lightweight laptop with extended battery life appealing to students and young professionals who want access to their computer anywhere,anytime
C)an energy efficient humidifier
D)a pocket- size digital music player
E)a battery- powered all- electric car

Question 34

Which of the following CANNOT be described using the PLC concept?

A)product class
B)brand
C)product form
D)styles
E)product image

Question 35

When a product is in the maturity stage,the company should consider .

A)liquidating the product
B)divesting the product
C)harvesting the product
D)modifying the product,market,or marketing mix
E)dropping the product

Question 36

Which of the following costs is most likely associated with the commercialization stage of new- product development?

A)identifying target markets
B)building or renting a manufacturing facility
C)developing a prototype of the product
D)paying groups of target customers for product feedback
E)determining the product's planned price,distribution,and marketing budget

Question 37

It's What's Hip,a chain of 18 music and CD stores,has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm,and not just in profit terms.Which one of these is NOT likely to be one of those costs?

A)frequent price and inventory adjustment
B)negatively affects the company's reputation
C)requires too much focus on new- product development
D)takes up much of management's time
E)requires advertising and sales force attention

Question 38

In a _,new products and marketing tactics are tested among specifically identified groups of customers and stores.

A)simulated test market
B)single- city test market
C)random test market
D)controlled test market
E)standard test market

Question 39

Yummy Peanut Butter has a new peanut butter and bacon product and finds a small number of representative test cities.The company plans to use the results to forecast national sales and profits.Yummy is using .

A)standard test markets
B)simulated test markets
C)controlled test markets
D)single- city test markets
E)random test markets

Question 40

Manufacturers must comply with specific laws regarding .

A)product quality and safety
B)distribution channel length
C)product harvesting
D)product life cycles
E)profit margins

Question 41

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC.Which of the following should NOT be done in the identification process?

A)regularly reviewing market share
B)regularly reviewing management's pet projects
C)regularly reviewing costs
D)regularly reviewing profit trends
E)regularly reviewing sales

Question 42

Which of the following is a disadvantage of a team- based approach to new- product development?

A)Organizational confusion and tension can affect the process.
B)Levels of risk can be more easily controlled.
C)The development effort is not as effective because of team members' lack of expertise.
D)The process does not work with the shorter life cycles of many of today's products.
E)It takes longer to get the right products to market.

Question 43

The second part of the marketing strategy statement outlines the product's planned price,distribution,and for the first year.

A)positioning
B)promotional mix
C)target market
D)marketing budget
E)advertising

Question 44

JoAnn Fabrics,Inc.has just created a new combination of colors and fabric types.The firm wants to be sure of the way consumers think about its new product.The firm is concerned with the product .

A)image
B)presentation
C)idea
D)screening
E)commercialization

Question 45

Which of the following statements best explains why idea screening may be the most important step of new- product development?

A)It gives research and development team members an opportunity to gather consumer feedback.
B)Some potentially profitable ideas may be ill perceived by the idea screeners.
C)It increases the number of ideas generated.
D)It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.
E)Some ideas that will become market disasters may be originally viewed favorably by the idea screeners.

Question 46

P&G introduced its Duncan Hines ready- to- spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready- to- spread frosting,which eclipsed the Duncan Hines product introduction.General Foods was able to enter the stage of the new- product development process before P&G could.

A)business analysis
B)screening
C)idea generation
D)product concept development
E)commercialization

Question 47

is a new- product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

A)Simultaneous product development
B)Product life- cycle analysis
C)Micromarketing
D)Team- based product development
E)Sequential product development

Question 48

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar- powered vacuum cleaner.But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys.After setting up a demonstration booth in a mall in a Chicago suburb,Evelyn felt more assured than ever that her idea would be a hit.
Consumers seemed receptive and offered helpful pieces of advice,such as how much they would pay for the vacuum,what colors they would prefer,and why they would not buy the vacuum.
The vacuum itself was dome- shaped,something like a small saucer,with a filter bag on top and sensory nodes along the edges.After being charged in the sunlight,the vacuum could run for 10 hours,covering a floor area of 600 square feet.As the apparatus lightly bumped into table legs,chairs,and so on,the sensory nodes allowed the vacuum to move around the objects in various directions.This is the same type of technology used in the manufacture of children's race cars and walking dolls.
Evelyn knew that the solar- powered vacuum would be especially helpful to both elderly consumers,who may have a more difficult time with vacuuming,and on- the- go consumers who lead busy lives.The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500- unit production run and a substantial financial investment,Evelyn set up a multiple- city test market,in a Chicago mall and in an appliance store in New Jersey."It's such a novel idea," Evelyn added."People will notice it,even if they don't buy it right away."
Evelyn's vacuum is at the stage of the product life cycle.

A)product development
B)introduction
C)growth
D)incubation
E)adoption

Question 49

Sherri's Exclusives sells currently accepted and popular clothing items in given fields.What does she stock in her store?

A)services
B)styles
C)fashions
D)exclusives
E)fads

Question 50

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Ringler explained her product idea: a solar- powered vacuum cleaner.But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys.After setting up a demonstration booth in a mall in a Chicago suburb,Evelyn felt more assured than ever that her idea would be a hit.
Consumers seemed receptive and offered helpful pieces of advice,such as how much they would pay for the vacuum,what colors they would prefer,and why they would not buy the vacuum.
The vacuum itself was dome- shaped,something like a small saucer,with a filter bag on top and sensory nodes along the edges.After being charged in the sunlight,the vacuum could run for 10 hours,covering a floor area of 600 square feet.As the apparatus lightly bumped into table legs,chairs,and so on,the sensory nodes allowed the vacuum to move around the objects in various directions.This is the same type of technology used in the manufacture of children's race cars and walking dolls.
Evelyn knew that the solar- powered vacuum would be especially helpful to both elderly consumers,who may have a more difficult time with vacuuming,and on- the- go consumers who lead busy lives.The price would be above average but would likely be reduced after Evelyn recouped some of her costs.
After a 500- unit production run and a substantial financial investment,Evelyn set up a multiple- city test market,in a Chicago mall and in an appliance store in New Jersey."It's such a novel idea," Evelyn added."People will notice it,even if they don't buy it right away."
When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner,she was doing which of the following?

A)marketing strategy development
B)concept testing
C)commercializing
D)idea screening
E)test marketing

Question 51

The first part of the marketing strategy statement describes the target market;the planned product positioning;and goals for sales,profits,and .

A)life- cycle duration
B)product longevity
C)promotional mixes
D)secondary markets
E)market share

Question 52

Which of the following is NOT a potential reason for a new product to fail?

A)a poorly designed product
B)ineffective advertising
C)higher than anticipated costs of product development
D)an incorrectly positioned product
E)an underestimated market size

Question 53

Flurrbies,a brand of winter accessories that fell in and out of favorability with customers quickly,is an example of a .

A)product idea
B)market strategy
C)fad
D)fashion
E)style

Question 54

is the product life cycle period when sales fall off and profits drop.

A)Development
B)Growth
C)Decline
D)Maturity
E)Introduction

Question 55

In the concept testing stage of new- product development,a product concept in _ _ form is presented to groups of target consumers.

A)commercial
B)physical or symbolic
C)market- tested
D)experiential
E)final

Question 56

Atlas Steel Corporation lacks the confidence,capital,and capacity to launch its new steel product into full national or international distribution.Test market results look promising,so what should be management's next step?

A)seek the help of a nationally known consultant
B)retest the product in additional markets
C)develop a prototype
D)develop a planned market rollout over time
E)secure a loan to provide confidence,capital,and capacity

Question 57

Which of the following would lead to greater competition in the maturity stage of the PLC?

A)overcapacity
B)inadequate promotion
C)poor management
D)diminishing budgets
E)market pioneers

Question 58

The team- based new- product development approach uses cross- functional teams that overlap the steps in the process to achieve which of the following goals?

A)save time and eliminate errors
B)increase effectiveness and employee satisfaction
C)save time and increase effectiveness
D)speed product to market and reduce costs
E)B and D

Question 59

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released.Sales must be estimated before costs can be estimated.Which of the following did your text recommend for forecasting sales?

A)applying the PLC concept
B)considering the sales history of similar products and conducting surveys of market opinions
C)considering the history of market opinions
D)conducting surveys of competitors
E)none of the above

Question 60

A detailed version of a new idea stated in meaningful customer terms is called a .

A)product image
B)product movement
C)product proposal
D)product idea
E)product concept

Question 61

Once managers of The Grecian Urn have decided on their product concept and marketing strategy,they can evaluate the business attractiveness of the proposal in the _ stage of the new- product development process.

A)concept testing
B)business feasibility
C)business analysis
D)product acceptance
E)feasibility study

Question 62

The PLC concept can be applied by marketers as a useful framework for describing how .

A)products and markets work
B)product ideas are developed
C)to develop marketing strategies
D)to forecast product performance
E)concept testing is conducted

Question 63

In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

A)growth
B)adoption
C)maturity
D)decline
E)product development

Question 64

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively.They came up with an idea for a pair of blurry goggles.They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated.The first crude pair of blurry goggles developed by the entrepreneurs to show to prospective customers was .

A)a product idea
B)a prototype
C)a synergistic model
D)a component part
E)a product image

Question 65

Which of the following is NOT a recommended method for companies to tap into their customers as sources for new- product ideas?

A)putting customer- created products on the market
B)working alongside customers to get ideas and suggestions
C)turning customers into cocreators
D)analyzing customer complaints and questions
E)relying heavily on customers to know what types of technical products they need

Question 66

Which of the following is most likely to be included in an executive's write up of a new- product idea to be presented to a new- product committee?

A)the planned market rollout
B)the proposed customer value proposition
C)the marketing strategy
D)the business analysis
E)the product image

Question 67

Which stage of the typical consumer product life cycle is out of order below?

A)product development
B)introduction
C)maturity
D)growth
E)decline

Question 68

The search for new- product ideas should be rather than haphazard.

A)strategically planned
B)segmented
C)systematic
D)rare
E)intermittent

Question 69

Your firm asks you to consult external sources for new- product ideas.All of the following are common external sources EXCEPT .

A)suppliers
B)competitors
C)the firm's executives
D)trade shows and magazines
E)customers

Question 70

Big Moose Toys is a market pioneer introducing a modern version of Bullwinkle the Moose,a character from an animated television series originally broadcast in the '50s and '60s.The company's version of Rocky the Flying Squirrel,another character from the show,targeted to baby boomers was a strong success.They need to make the new launch strategy for Bullwinkle consistent with the intended .

A)brand extension
B)product position
C)prototype
D)fad
E)pricing

Question 71

Because of ,a company cannot make its product illegally similar to a competitor's already established product.

A)product warranties
B)patent laws
C)anti- monopoly laws
D)product liability
E)the Consumer Product Safety Act

Question 72

Once the product or service passes the business analysis test,it moves into what stage?

A)product development
B)strategy development
C)market testing
D)concept development
E)product proposal

Question 73

When Kraft focused on cost- cutting with its older and established brands,leaving them to wither without much investment or modification,Kraft decided to the older products.

A)extend
B)review
C)harvest
D)drop
E)maintain

Question 74

The purpose of idea generation is to create a number of ideas.The purpose of succeeding stages is to that number.

A)small number;increase
B)small number;reduce
C)limited number;sustain
D)large number;reduce
E)large number;increase

Question 75

Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

A)It is difficult to plot the stages as a product goes through them.
B)All products eventually decline.
C)Changing tastes,technologies,and competition affect the marketing of the product as it passes through life- cycle stages.
D)A firm must be good at adapting its marketing strategies.
E)A firm must be good at developing new products to replace aging ones.

Question 76

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120 million iPods have been sold,and the iPod captures more than 70 percent of the music player market.This success has attracted many large,resourceful competitors.The iPod is in the _ stage of the product life cycle.

A)maturity
B)decline
C)product development
D)adoption
E)introduction

Question 77

All of the following are accurate descriptions of a style EXCEPT which one?

A)Once a style is invented,it may last for generations.
B)A style has a cycle showing several periods of renewed interest.
C)Styles are basic and distinctive modes of expression.
D)Styles last only a short time and tend to attract only a limited following.
E)Style products appear in home,clothing,and art.

Question 78

Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?

A)to test market new products
B)to analyze the product life cycle
C)to test new- product concepts
D)to get new- product ideas
E)to implement a team- based new- product development approach

Question 79

An attractive idea must be developed into a _.

A)product strategy
B)test market
C)product idea
D)product concept
E)screened product

Question 80

Which stage in the PLC normally lasts longest and poses strong challenges to the marketing managers?

A)phase- in
B)adoption
C)growth
D)decline
E)maturity