Question 1

The stage at which new product and marketing programs are introduced into realistic market settings is called concept testing.

Accepted Answer

The answer of The stage at which new product and...

Question 2

A firm can obtain new products in two ways: acquisition or new-product development.

Accepted Answer

A firm can either acquire new products or develop new products internally.

Question 3

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

Accepted Answer

Companies often solicit ideas from customers during the idea generation stage of product development through methods such as surveys, focus groups, and online communities. This helps them understand customer needs and preferences, and can lead to the development of more successful products.

Question 4

Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall.

Accepted Answer

During the growth stage of the PLC, demand for the product increases rapidly, which leads to economies of scale that allow the company to spread its promotional costs over a larger volume of sales. At the same time, unit manufacturing costs typically decrease due to production efficiencies and economies of scale. This combination of factors can lead to increased profits during the growth stage of the PLC.

Question 5

A company launching a new product into the market must first decide on introduction timing.

Accepted Answer

Launch timing is a critical decision for any company introducing a new product to the market. It involves determining the best time to release the product, based upon market conditions, competition, and other factors. Factors to consider may include the availability of resources, the state of the economy, seasonal trends, and the needs and preferences of the target market.

Question 6

JumBo Games is launching a new set of game toys in the commercialization stage.The first decision to make is introduction timing and the second is where to launch the new product.

Accepted Answer

The statement correctly identifies the first two decisions that need to be made while launching a new product in the commercialization stage.

Question 7

New-product development begins with a systematic search for new product ideas through idea generation.

Accepted Answer

This is true. The first step in new product development is to generate ideas for potential new products.

Question 8

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

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Question 9

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

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Question 10

When sales of a product falter during the PLC,a company can take several approaches.The more common ones are to modify the marketing mix,modify the product,or modify the market.

Accepted Answer

This statement is true as modifying the marketing mix, product, or market are common strategies used by companies to revive sales during the decline stage of the product life cycle.

Question 11

When a company decides to maintain a product in the decline stage,it will reduce costs and hope that sales hold up to increase the profits in the short run.

Accepted Answer

The answer of When a company decides to maintain a...

Question 12

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

The PLC (product life cycle) concept is primarily focused on the stages of a product's life, whereas marketing strategy is a broader concept that includes positioning, targeting, and timing to achieve specific goals. While the PLC can provide insights into the ideal timing for various marketing strategies, it is not the only factor to consider, and strategy can also impact a product's life cycle. Therefore, relying solely on the PLC to develop marketing strategy can be problematic.

Question 13

Companies need to pay attention to their aging products.Management should regularly review sales,market shares,costs,and profit trends,and then decide whether to maintain,harvest,or drop these declining products.

Accepted Answer

This statement is true. Companies should regularly review their product portfolio, and if a product is declining, they must decide whether it's still worth keeping or not. This can help companies save costs and resources and invest in more profitable products.

Question 14

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

Products in the maturity stage of the PLC do evolve to meet changing consumer needs and preferences in order to stay relevant and maintain their success.

Question 15

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

Accepted Answer

An innovation management system is designed to collect, review, evaluate, and manage new-product ideas, which can help prevent both a shortage of ideas and the failure of potentially valuable concepts.

Question 16

The business analysis stage represents the first large jump in financial investment in the new-product development process.

Accepted Answer

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Question 17

The international growth of many professional and business services such as accounting,consulting,and advertising led to the globalization of the client companies they serve.

Accepted Answer

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Question 18

Up to 90 percent of all new consumer products fail or seriously underperform.

Accepted Answer

This is a commonly cited statistic in the product development industry. It highlights the risks involved in bringing new products to market and the importance of thorough market research, testing, and planning.

Question 19

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

Accepted Answer

This is true under antitrust laws, which aim to promote competition and prevent monopolies. If an acquisition is likely to result in reduced competition, the government can block it or impose conditions for approval.

Question 20

A product idea is an idea for a possible product a company can offer the market,while a product concept is a detailed version of the idea stated in meaningful consumer terms.

Accepted Answer

This is because a product idea is a general notion or suggestion about a product that might satisfy an unmet need, whereas a product concept is a more fleshed-out version of the idea which includes the product's features, benefits, and target market. Therefore, a product concept is a more concrete and specific representation of a product idea.

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