Question 1

What are the advantages of an innovation management system for developing new products?

Accepted Answer

The answer of What are the advantages of an innovation...

Question 2

The second part of a marketing strategy statement describes the ________ of a new product.

Accepted Answer

A)  marketing mix strategy 
B)  profit and sales goals 
C)  planned price, distribution, and marketing budget 
D)  target market and sales goals 
E)  planned value proposition

Question 3

During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.

Accepted Answer

A)  decline 
B)  growth 
C)  maturity 
D)  ideation 
E)  analysis

Question 4

Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas.

Accepted Answer

A)  trade magazines 
B)  marketing research firms 
C)  government agencies 
D)  competitor's ads 
E)  intrapreneurial programs

Question 5

Which of the following statements is most likely true about the product life cycle?

Accepted Answer

A)  Throughout the product introduction stage, sales are zero. 
B)  The growth stage is the longest stage of the product life cycle. 
C)  Profits are nonexistent in the growth stage. 
D)  Growth is a period of rapid market acceptance and increasing profits. 
E)  Maturity is the period when sales fall off but profits continue to rise.

Question 6

Under a team-based new product development approach, company departments work closely together in cross-functional teams. Overlapping the steps in the product development process saves time and increases effectiveness.

Accepted Answer

A) True 
 B)False

Question 7

________ can describe a product class, a product form, or a brand.

Accepted Answer

A)  The product development process 
B)  The product life cycle concept 
C)  Business analysis theory 
D)  Vendor analysis theory 
E)  Portfolio analysis

Question 8

Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________.

Accepted Answer

A)  test marketing 
B)  portfolio analysis 
C)  commercialization 
D)  internal marketing 
E)  business analysis

Question 9

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.

Accepted Answer

A)  cross-sectional 
B)  simultaneous 
C)  sequential 
D)  team-based 
E)  systematic

Question 10

List and explain some of the reasons why new products fail.

Accepted Answer

The answer of List and explain some of the reasons...

Question 11

Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________.

Accepted Answer

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

Question 12

Which of the following costs is most likely associated with commercialization?

Accepted Answer

A)  building or renting a manufacturing facility 
B)  paying groups of consumers for participating in crowdsourcing activities 
C)  determining a product's planned price, distribution, and marketing budget 
D)  developing a prototype of a product 
E)  using simulated tests to measure market capacity

Question 13

Distinguish between a product idea, a product concept, and a product image.

Accepted Answer

The answer of Distinguish between a product idea, a product...

Question 14

Salon Finish is test marketing its new smoothing shampoo by assessing consumer satisfaction in laboratory stores where hair is washed and blown dry. Salon Pro is using controlled test marketing in this scenario.

Accepted Answer

A) True 
 B)False

Question 15

Define commercialization. Explain the two important issues that a company must decide during this stage.

Accepted Answer

The answer of Define commercialization. Explain the two important issues...

Question 16

The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.

Accepted Answer

A) True 
 B)False

Question 17

Discuss public policy issues, government regulations, and laws that affect new product development.

Accepted Answer

The answer of Discuss public policy issues, government regulations, and...

Question 18

In the new product development process, the purpose of idea generation is to create a large number of ideas and the purpose of the next set of stages in the process is to reduce that number.

Accepted Answer

A) True 
 B)False

Question 19

The first part of a marketing strategy statement describes the ________ of a new product.

Accepted Answer

A)  planned price and distribution 
B)  marketing budget 
C)  marketing mix strategy 
D)  target market, planned value proposition, and sales goals 
E)  planned long-run sales and market share

Question 20

Product development usually costs the least among all the steps of the new product development process.

Accepted Answer

A) True 
 B)False

Exam 8: New Product Development and Product Life-Cycle Strategies

What are the advantages of an innovation management system for developing new products?

The second part of a marketing strategy statement describes the ________ of a new product.

During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.

Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas.

Which of the following statements is most likely true about the product life cycle?

Under a team-based new product development approach, company departments work closely together in cross-functional teams. Overlapping the steps in the product development process saves time and increases effectiveness.

________ can describe a product class, a product form, or a brand.

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.

List and explain some of the reasons why new products fail.

Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________.

Which of the following costs is most likely associated with commercialization?

Distinguish between a product idea, a product concept, and a product image.

Salon Finish is test marketing its new smoothing shampoo by assessing consumer satisfaction in laboratory stores where hair is washed and blown dry. Salon Pro is using controlled test marketing in this scenario.

Define commercialization. Explain the two important issues that a company must decide during this stage.

The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.

Discuss public policy issues, government regulations, and laws that affect new product development.

In the new product development process, the purpose of idea generation is to create a large number of ideas and the purpose of the next set of stages in the process is to reduce that number.

The first part of a marketing strategy statement describes the ________ of a new product.

Product development usually costs the least among all the steps of the new product development process.