Question 1

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

Accepted Answer

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

Question 2

What are the major external sources of new product ideas? What type of information can be gathered from each of these sources? How do firms benefit from such information?

Accepted Answer

The answer of What are the major external sources of...

Question 3

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 4

Wayne Industries,a retail and home improvement store,is developing a new lawnmower.The marketing strategy for the product has already been developed and presented.A prototype has also been developed by the company's R&D team.The prototype is now being tested rigorously to ensure that there are no product liability issues.Once the prototype of the lawnmower passes product tests,the next step is most likely to be ________.

Accepted Answer

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

Question 5

In which of the following cases is crowdsourcing used for new product development?

Accepted Answer

A)  A company creates a forum where anyone can contribute new product ideas. 
B)  A company hires a marketing agency to generate new product ideas. 
C)  A company reviews the sales, costs, and profit projections of an existing product. 
D)  A company depends on its R&D department to come up with new ideas. 
E)  A company partners with a design agency to create a few prototypes.

Question 6

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

Accepted Answer

A)  Sales are zero, and the company's investment costs mount. 
B)  New competitors enter the market. 
C)  A slowdown occurs in sales growth. 
D)  Sales increase with decreasing competition. 
E)  New distribution channels are acquired.

Question 7

A concrete and physical presentation of a product concept is likely to increase the reliability of the concept test.

Accepted Answer

A) True 
 B)False

Question 8

Team-based new product development encourages employees of all departments to work within the roles and boundaries of their individual departments before combining the results of their efforts at the commercialization stage.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest?

Accepted Answer

A)  a style 
B)  a fashion 
C)  a fad 
D)  a trend 
E)  a drift

Question 10

Acquisition is one of the ways through which a company obtains new products.

Accepted Answer

A) True 
 B)False

Question 11

In a sequential new product development process,once a product or service passes the business test,it moves into ________.

Accepted Answer

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

Question 12

Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage.

Accepted Answer

A) True 
 B)False

Question 13

When an end user's problems and experiences define a new product,the approach is called ________.

Accepted Answer

A)  customer-centered new product development 
B)  team-based new product development 
C)  sequential product development 
D)  supply/demand new product development 
E)  systematic new product development

Question 14

Explain what happens during the business analysis stage of new product development.

Accepted Answer

The answer of Explain what happens during the business analysis...

Question 15

Which statement is most likely true about idea generation in the new product development process?

Accepted Answer

A)  Idea generation is most effective when it occurs after idea screening. 
B)  Most companies set a limit for the number of ideas generated to simplify the process. 
C)  Intrapreneurial programs enable customers to contribute to the idea generation process. 
D)  Idea generation is usually followed by procedures that reduce the total number of ideas. 
E)  A company can either develop ideas through internal or external sources but not through both.

Question 16

What is test marketing? What role does it play in new product development? What factors do firms consider when determining whether or not to conduct test marketing?

Accepted Answer

The answer of What is test marketing? What role does...

Question 17

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.

Accepted Answer

A)  concept testing 
B)  concept development 
C)  test marketing 
D)  marketing strategy development 
E)  crowdsourcing

Question 18

What options are available to a firm that has a product in the decline stage of the product life cycle? Briefly discuss each option.

Accepted Answer

The answer of What options are available to a firm...

Question 19

The business analysis stage is the final step in the new product development process.

Accepted Answer

A) True 
 B)False

Question 20

Since suppliers are so close to the market,they are valuable sources of information about consumer problems,marketing opportunities,and new product possibilities.

Accepted Answer

A) True 
 B)False

Exam 8: New Product Development and Product Life Cycle Strategies

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

What are the major external sources of new product ideas? What type of information can be gathered from each of these sources? How do firms benefit from such information?

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.

In which of the following cases is crowdsourcing used for new product development?

Which of the following is most likely true of a product in the maturity stage of the product life cycle?

A concrete and physical presentation of a product concept is likely to increase the reliability of the concept test.

Team-based new product development encourages employees of all departments to work within the roles and boundaries of their individual departments before combining the results of their efforts at the commercialization stage.

Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest?

Acquisition is one of the ways through which a company obtains new products.

In a sequential new product development process,once a product or service passes the business test,it moves into ________.

Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage.

When an end user's problems and experiences define a new product,the approach is called ________.

Explain what happens during the business analysis stage of new product development.

Which statement is most likely true about idea generation in the new product development process?

What is test marketing? What role does it play in new product development? What factors do firms consider when determining whether or not to conduct test marketing?

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________.

What options are available to a firm that has a product in the decline stage of the product life cycle? Briefly discuss each option.

The business analysis stage is the final step in the new product development process.

Since suppliers are so close to the market,they are valuable sources of information about consumer problems,marketing opportunities,and new product possibilities.