Question 1

A product idea is ________.

Accepted Answer

A)  the way consumers perceive an actual or potential product 
B)  the knowledge and awareness of a product among consumers 
C)  a possible product that the company can see itself offering to the market 
D)  a detailed version of the new-product idea stated in meaningful consumer terms 
E)  the testing of new-product concepts with groups of target consumers

Question 2

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

Accepted Answer

A)  idea 
B)  displacement 
C)  image 
D)  activation 
E)  placement

Question 3

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. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.

Accepted Answer

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

Question 4

In the new-product development process, the first idea-reducing stage is ________.

Accepted Answer

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

Question 5

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

Accepted Answer

A)  customer-centered new-product development 
B)  sequential product development 
C)  team-based new-product development 
D)  heuristic 
E)  functional

Question 6

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

Accepted Answer

A)  clearly assigns responsibility for the process to a single department 
B)  yields a larger number of new-product ideas 
C)  guarantees successful products 
D)  frees up senior management time 
E)  requires less budget support

Question 7

GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

Accepted Answer

A) True 
 B)False

Question 8

Over the past few years, Binney and Smith's Crayola crayons have been preferred by users in more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

Accepted Answer

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

Question 9

Which of the following stages in the new-product development would a firm engage itself in immediately after the completion of concept testing?

Accepted Answer

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

Question 10

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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

Question 12

Marketers often involve actual customers in product testing.

Accepted Answer

A) True 
 B)False

Question 13

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

Explain the reasons for the failure of new products. What methods can a company adopt to improve its odds of new-product success?

Accepted Answer

The answer of Explain the reasons for the failure of...

Question 16

Why might individual departments prefer sequential product development?

Accepted Answer

The answer of Why might individual departments prefer sequential product...

Question 17

Which of the following is a common reason for new product failure?

Accepted Answer

A)  incorrect estimation of the market size 
B)  low product development costs 
C)  ineffective social marketing campaigns 
D)  low selling prices of products 
E)  patent ownership exclusively held by the company

Question 18

Why are ad expenditures high for products in the introduction stage of the PLC?

Accepted Answer

The answer of Why are ad expenditures high for products...

Question 19

What are the two advantages of an innovation management system for developing new products? Provide four strategies for a company to use to establish a successful system.

Accepted Answer

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

Question 20

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

Accepted Answer

A)  competitors' moves are predicted 
B)  marketing strategies are developed 
C)  products and markets work 
D)  concept testing is conducted 
E)  product ideas are developed

Exam 9: New-Product Development and Product Life Cycle Strategies

A product idea is ________.

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

In the new-product development process, the first idea-reducing stage is ________.

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

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

Over the past few years, Binney and Smith's Crayola crayons have been preferred by users in more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

Which of the following stages in the new-product development would a firm engage itself in immediately after the completion of concept testing?

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

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

Marketers often involve actual customers in product testing.

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

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

Explain the reasons for the failure of new products. What methods can a company adopt to improve its odds of new-product success?

Why might individual departments prefer sequential product development?

Which of the following is a common reason for new product failure?

Why are ad expenditures high for products in the introduction stage of the PLC?

What are the two advantages of an innovation management system for developing new products? Provide four strategies for a company to use to establish a successful system.

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