Question 1

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

Accepted Answer

A)  product idea 
B)  product concept 
C)  product image 
D)  brand personality 
E)  concept test

Question 2

Which of the following involves costs that most likely occur during the commercialization stage of new product development?

Accepted Answer

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

Question 3

Refer to the scenario below to answer the following question(s).
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 electronic 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 shaped 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 7 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 racecars 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 and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.

Accepted Answer

A) True 
 B)False

Question 4

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

Accepted Answer

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

Question 5

Explain why the PLC can be applied to more than just brands.

Accepted Answer

The answer of Explain why the PLC can be applied...

Question 6

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.

Accepted Answer

A)  where to launch the new product 
B)  how to launch the new product 
C)  why to launch the new product 
D)  what pricing strategies to implement 
E)  what marketing mix elements to use

Question 7

Which of the following is included in the third part of the marketing strategy statement?

Accepted Answer

A)  the planned value proposition 
B)  distribution strategy 
C)  the product's planned price 
D)  marketing budget 
E)  the planned long-run sales

Question 8

Refer to the scenario below to answer the following question(s).
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 electronic 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 shaped 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 7 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 racecars 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 and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Harvesting the product involves reducing various costs such as maintenance, R&D, and advertising to increase profits.

Accepted Answer

A) True 
 B)False

Question 9

Refer to the scenario below to answer the following question(s).
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 electronic 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 shaped 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 7 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 racecars 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 and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-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 10

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

Question 11

Refer to the scenario below to answer the following question(s).
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 electronic 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 shaped 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 7 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 racecars 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 and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

Accepted Answer

A) True 
 B)False

Question 12

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

Accepted Answer

A) True 
 B)False

Question 13

A firm can obtain new products through acquisition or new product development efforts.

Accepted Answer

A) True 
 B)False

Question 14

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 15

An attractive product idea must be developed into a ________.

Accepted Answer

A)  concept alternative 
B)  product concept 
C)  brand personality 
D)  brand placement 
E)  product strategy

Question 16

Refer to the scenario below to answer the following question(s).
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 electronic 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 shaped 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 7 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 racecars 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 and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.

Accepted Answer

A) True 
 B)False

Question 17

Differentiate between controlled test markets and simulated test markets.

Accepted Answer

The answer of Differentiate between controlled test markets and simulated...

Question 18

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

Accepted Answer

A)  controlled test market 
B)  simulated test market 
C)  standard test market 
D)  systematic sample 
E)  accidental sample

Question 19

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

Accepted Answer

A)  business feasibility plan 
B)  marketing strategy development 
C)  business analysis 
D)  product acceptance 
E)  business proposal

Question 20

Explain how the PLC applies differently to a product class than to a product form.

Accepted Answer

The answer of Explain how the PLC applies differently to...

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

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

Which of the following involves costs that most likely occur during the commercialization stage of new product development?

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

Explain why the PLC can be applied to more than just brands.

According to the commercialization stage of the new product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.

Which of the following is included in the third part of the marketing strategy statement?

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

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

A firm can obtain new products through acquisition or new product development efforts.

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.

An attractive product idea must be developed into a ________.

Differentiate between controlled test markets and simulated test markets.

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

Explain how the PLC applies differently to a product class than to a product form.