Question 1

Manufacturers must comply with specific laws regarding ________.

Accepted Answer

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

Question 2

A marketer has chosen a multiple-city test market. What can be concluded from this choice of a multiple-city test market?

Accepted Answer

The answer of A marketer has chosen a multiple-city test...

Question 3

How might a firm benefit from implementing an "intrapreneurial" program?

Accepted Answer

The answer of How might a firm benefit from implementing...

Question 4

To avoid too few new product ideas and the failure of many good ideas, management should implement an innovation management system that collects, reviews, evaluates, and manages new product ideas.

Accepted Answer

A) True 
 B)False

Question 5

In the concept development stage, a firm will create a single product concept to test.

Accepted Answer

A) True 
 B)False

Question 6

In a(n) ________, consumers interact with new products and marketing tactics in laboratory stores or virtual online shopping environments.

Accepted Answer

A)  standard test market 
B)  focus group 
C)  controlled test market 
D)  simulated test market 
E)  individual survey

Question 7

Why might individual departments prefer sequential product development?

Accepted Answer

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

Question 8

Companies seldom solicit ideas from customers during the idea generation stage of product development.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  controlled test market 
B)  simulated test market 
C)  standard test market 
D)  focus group 
E)  survey

Question 10

Starbucks introduced a less-than-perfect mobile payments app, then worked out the flaws after the launch. The company chose speed to market over a perfect app at introduction. This illustrates ________.

Accepted Answer

A)  why many companies engage in crowdsourcing 
B)  the influence of fast-changing market developments 
C)  why prototypes are so important 
D)  how idea screening can make a product a commercial success 
E)  the importance of different sources for idea generation

Question 11

Differentiate between controlled test markets and simulated test markets.

Accepted Answer

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

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

Why do ad expenditures remain high in the growth stage of the PLC?

Accepted Answer

The answer of Why do ad expenditures remain high in...

Question 16

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 17

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?

Accepted Answer

A)  controlled test markets 
B)  simulated test markets 
C)  standard test markets 
D)  ambush marketing 
E)  affinity marketing

Question 18

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an external source for ideas?

Accepted Answer

A)  project managers 
B)  engineers 
C)  salespeople 
D)  manufacturing staff 
E)  suppliers

Question 20

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

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

Manufacturers must comply with specific laws regarding ________.

A marketer has chosen a multiple-city test market. What can be concluded from this choice of a multiple-city test market?

How might a firm benefit from implementing an "intrapreneurial" program?

To avoid too few new product ideas and the failure of many good ideas, management should implement an innovation management system that collects, reviews, evaluates, and manages new product ideas.

In the concept development stage, a firm will create a single product concept to test.

In a(n) ________, consumers interact with new products and marketing tactics in laboratory stores or virtual online shopping environments.

Why might individual departments prefer sequential product development?

Companies seldom solicit ideas from customers during the idea generation stage of product development.

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

Starbucks introduced a less-than-perfect mobile payments app, then worked out the flaws after the launch. The company chose speed to market over a perfect app at introduction. This illustrates ________.

Differentiate between controlled test markets and simulated test markets.

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 ________.

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

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

Why do ad expenditures remain high in the growth stage of the PLC?

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.

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

Which of the following is an external source for ideas?

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