Question 1

Explain why some products fail and others succeed.

Accepted Answer

The answer of Explain why some products fail and others...

Question 2

The rate of sales decline during the decline stage of the product life cycle is largely governed by:

Accepted Answer

A)  the amount of money spent on advertising 
B)  the number of competitors in the market 
C)  the intensity of the competition's marketing efforts 
D)  the amount of shelf space allotted to the product 
E)  how rapidly consumer tastes change or substitute products are adopted

Question 3

Which of the following is the LEAST likely source for new-product ideas?

Accepted Answer

A)  a company's distributors 
B)  its customers 
C)  its employees 
D)  its financial lenders 
E)  its competitors

Question 4

All the brands that satisfy a particular type of need such as shaving products,laundry detergent,soft drinks,and furniture make up a(n):

Accepted Answer

A)  product life cycle stage 
B)  primary group 
C)  adopter category 
D)  product category 
E)  reference group

Question 5

Which of the following statements about the product life cycle (PLC)is true?

Accepted Answer

A)  The PLC concept encourages marketing managers to think reactively. 
B)  Marketers do not yet understand the relationship between the adopter categories and the stages of the PLC. 
C)  There are as many new buyers in the maturity stage of the PLC as in the growth stage. 
D)  The PLC is especially useful as a predicting tool. 
E)  Just as there are five adopter categories, there are five PLC stages.

Question 6

A manufacturer of office furnishings is finding it difficult to compete with cheaper imported merchandise.Which of the following is a potential source of new-product ideas that would allow it to compete more effectively?

Accepted Answer

A)  current retailers who carry the manufacturer's equipment 
B)  its foreign competitors 
C)  the company's employees 
D)  customers who have requested its catalogs 
E)  all of these

Question 7

Basically,all that happens in the development stage of the new-product process is that the first prototype of the product gets developed.

Accepted Answer

A) True 
 B)False

Question 8

A(n)_____ is a consumer who was sufficiently satisfied with his or her trial experience with a product to proceed with some further usage.

Accepted Answer

A)  laggard 
B)  adopter 
C)  innovator 
D)  diffuser 
E)  opt-in buyer

Question 9

Which of the following stages of the new-product development process is the first filter in the new-product development process and serves to eliminate new-product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason?

Accepted Answer

A)  applied diffusion 
B)  introductory diffusion 
C)  business analysis 
D)  test marketing 
E)  idea screening

Question 10

At what stage of the new-product development process are most new-product ideas rejected?

Accepted Answer

A)  test marketing 
B)  diffusion 
C)  business analysis 
D)  idea screening 
E)  idea generation

Question 11

Hemopure is a blood substitute developed by Biopure Corporation.It does not have to be refrigerated or blood-typed like donated human blood that is currently being used in blood transfusions. It comes in bags just like donated blood,so it can be used with IV tubes and needles just like donated human blood is used. As a result,medical personnel will not have to make any adjustments if they adopted this product. Name and describe the five product characteristics influencing the rate of adoption of new products and explain how each factor will influence the rate of adoption of a blood substitute like Hemopure.

Accepted Answer

The answer of Hemopure is a blood substitute developed by...

Question 12

A firm's new-product strategy links the new-product development process with the objectives of the marketing departments,the business unit,and the corporation.

Accepted Answer

A) True 
 B)False

Question 13

Oakley,a manufacturer of protective eyewear for various kinds of sports,has introduced sunglasses that play music.The glasses weigh just a few ounces and can hold up to 120 songs.These sunglasses would be an example of a(n):

Accepted Answer

A)  repositioning strategy 
B)  new product line 
C)  addition to an existing product line 
D)  discontinuous innovation 
E)  revision to existing products

Question 14

Typically,at the beginning of the maturity stage of the product life cycle,sales:

Accepted Answer

A)  become flat and do not change 
B)  increase at an increasing rate 
C)  decrease at a decreasing rate 
D)  decrease at an increasing rate 
E)  increase at a decreasing rate

Question 15

B.F.Goodrich has been manufacturing and marketing automotive tires for over one hundred years.It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear,Dunlap,and other tire manufacturers.From this information,you should know tires are in the _____ stage of their product life cycle.

Accepted Answer

A)  maturity 
B)  growth 
C)  saturation 
D)  decline 
E)  development

Question 16

Among the late majority group,adoption of a product primarily results from:

Accepted Answer

A)  word-of-mouth communications 
B)  print advertising 
C)  advertising in nontraditional media 
D)  broadcast advertising 
E)  sales promotions

Question 17

Liz tends to adopt new products sooner than a lot of other people,but she weighs the pros and cons before buying. She does considerable product research,but her friends don't really look to her for information. She really deliberates before she makes a purchase. Liz is best described as a(n):

Accepted Answer

A)  innovator 
B)  early adopter 
C)  early majority 
D)  late majority 
E)  laggard

Question 18

_____ embrace products relatively early in the product life cycle,are likely to be community oriented,and often are opinion leaders themselves.

Accepted Answer

A)  Early adopters 
B)  Innovators 
C)  Early majority 
D)  Late majority 
E)  Laggards

Question 19

Mitch purchased a 32-inch high-definition television right after they were introduced in the marketplace and paid over $8,000 for it. He has a master's degree in business and is well-informed about electronic products. He is venturesome and is always looking for new products to try. Mitch is best described as a(n):

Accepted Answer

A)  early adopter 
B)  early majority 
C)  innovator 
D)  diffusers 
E)  lead consumer

Question 20

A long-run drop in sales signals the beginning of which stage in the product life cycle?

Accepted Answer

A)  laggard stage 
B)  saturation stage 
C)  deterioration stage 
D)  decline stage 
E)  decay stage

Exam 11: Developing and Managing Products