Question 1

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?
A)growth
B)introduction
C)adoption
D)product development
E)maturity

Accepted Answer

During the introduction stage of the PLC, promotional expenditures will be especially high in an attempt to create consumer awareness. This is because the product is new to the market and consumers are not yet familiar with it. Promotional activities such as advertising, personal selling, and public relations are used to inform consumers about the product and its benefits. As the product moves into the growth and maturity stages, promotional activities may still be important but they are typically focused more on maintaining market share and brand awareness rather than creating initial awareness.

Question 2

Your company decides to use only internal sources for developing new- product ideas.Which of the following would NOT be consulted?
A)company records and data
B)executives and professionals
C)salespeople
D)suppliers
E)intrapreneurial programs

Accepted Answer

Suppliers are external sources and therefore would not be consulted if only internal sources are being used for developing new-product ideas.

Question 3

Increasing profits will most likely occur at which stage of the PLC?
A)product development
B)growth
C)introduction
D)decline
E)maturity

Accepted Answer

During the growth stage of the Product Life Cycle (PLC), sales increase rapidly, leading to higher profits as the product gains market acceptance and economies of scale are achieved.

Question 4

Refer to the scenario below to answer the following questions.
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 children's 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 dome- shaped,something 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 10 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 race cars 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."It's such a novel idea," Evelyn added."People will notice it,even if they don't buy it right away."
-Evelyn's is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on- the- go and elderly consumers.
A)prototype
B)product idea
C)product concept
D)promotional product
E)product image

Accepted Answer

The scenario describes Evelyn's solar-powered vacuum cleaner as a "practical use of solar power" and details its features and target market, which aligns with the definition of a product concept.

Question 5

A _ _ is the way consumers perceive an actual or potential product.
A)product concept
B)product image
C)concept test
D)product idea
E)test market

Accepted Answer

Product image refers to how consumers perceive an actual or potential product. Product concept refers to a detailed version of the new product idea, concept test refers to testing the product concept with a group of target consumers, test market refers to testing the actual product in a small geographical area before a full-scale launch, and product idea refers to a general idea for a new product.

Question 6

occurred when Alton Johnson's fascination with the fruits of Brazil led him to develop juices with new fruit flavors by Bosa Nova for the American market.
A)Product manufacturing
B)Product development
C)Concept testing
D)Idea generation
E)Idea screening

Accepted Answer

The answer of occurred when Alton Johnson's fascination with the...

Question 7

New- product development starts with .
A)concept testing
B)test marketing
C)idea generation
D)concept development
E)idea screening

Accepted Answer

Idea generation is the first step in new-product development, where new-product ideas are generated through various sources such as customers, employees, competitors, etc. The other options - concept testing, test marketing, concept development, and idea screening - are later stages in the new-product development process.

Question 8

CellTones,a new company selling several lines of cellular phones,has closely modeled its products after successful products that are already in the marketplace.As it prepares to enter the market with its new products and services,which of the following should concern CellTones the most?
A)the Federal Food,Drug,and Cosmetic Act
B)legal obligations to suppliers and dealers
C)limited warranties
D)patent laws
E)product liability suits

Accepted Answer

CellTones should be most concerned with patent laws as they have closely modeled their products after successful products that are already in the marketplace. If their products infringe on any existing patents, they could face legal action and financial penalties.

Question 9

Over the past 100 years or so,Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world.Crayola crayons are in the _ stage of the PLC.
A)growth
B)decline
C)maturity
D)incubation
E)introduction

Accepted Answer

Crayola crayons have been around for more than 100 years and are used in over 80 countries, indicating that they have reached the maturity stage of the PLC. During this stage, sales growth slows down as the product reaches market saturation and competition increases.

Question 10

After concept testing,a firm would engage in which stage in developing and marketing a new product?
A)marketing strategy development
B)product development
C)business analysis
D)idea screening
E)test marketing

Accepted Answer

Marketing strategy development is the next stage after concept testing in the process of developing and marketing a new product.

Question 11

At Fantastic Flavors,a large regional chain of candy stores,employees from marketing,design,production,and finance work in a cross- functional group to save time and money in the new- product development process.Fantastic Flavors uses a(n)approach.
A)team- based new- product development
B)sequential new- product development
C)innovation management system
D)consumer composite
E)customer- centered new- product development

Accepted Answer

In team-based new product development, employees from different functional areas work together in a team to perform various tasks in the New product development process. This approach allows cross-functional information exchange, communication and coordination which would eventually save time and money in the new product development process. Thus, from the provided information, it can be inferred that Fantastic Flavors uses a team-based new product development approach.

Question 12

For some _,a simple description consisting of a word or picture might be sufficient.
A)business analyses
B)product developments
C)marketing strategies
D)concept tests
E)test markets

Accepted Answer

For concept tests, a simple description consisting of a word or picture might be sufficient to gather initial reactions and feedback from potential customers.

Question 13

The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs.The owners will begin the first idea- reducing stage,called ,to arrive at a realistic number to adopt.
A)business analysis
B)concept testing
C)idea generation
D)concept development
E)idea screening

Accepted Answer

Idea screening is the stage where a large number of ideas are screened and evaluated to arrive at a smaller number of feasible and potentially profitable ideas to adopt. This stage is also referred to as the idea reduction stage. Therefore, option E, idea screening, is the best choice for this scenario.

Question 14

Some products that have entered the decline stage have been cycled back to the growth stage through _ .
A)promotion or repositioning
B)innovation management
C)concept testing
D)business analysis
E)customer- centered product development

Accepted Answer

Products that have entered the decline stage can be revitalized and brought back to the growth stage through promotion or repositioning. This involves rebranding the product, changing its packaging or advertising, or targeting a different market segment. Innovation management, concept testing, business analysis, and customer-centered product development are all important stages in the product development process, but they are not directly related to cycling a product back to the growth stage from the decline stage.

Question 15

P&G introduced its Duncan Hines ready- to- spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready- to- spread frosting,which eclipsed the Duncan Hines product introduction.This act illustrates .
A)the variety of sources for idea generation
B)one of the problems associated with test marketing
C)why prototypes are so important
D)why many companies engage in test marketing
E)how idea screening can make a product a commercial success

Accepted Answer

This situation highlights the problem of competition and timing associated with test marketing. P&G introduced their product in a small geographic area but General Foods quickly responded with a similar product that eclipsed the Duncan Hines product. This shows the risks of test marketing, as competitors can quickly respond and take market share.

Question 16

The third part of the marketing strategy statement includes all of the following EXCEPT _ _.
A)long- run sales
B)short- run sales
C)marketing mix strategies
D)profit goals
E)A and C

Accepted Answer

The third part of the marketing strategy statement typically includes long-run sales, profit goals, and marketing mix strategies, but not short-run sales.

Question 17

Product improvements,product modifications,and original products can all be classified as .
A)new products
B)product extensions
C)pioneer products
D)test products
E)product strategies

Accepted Answer

All three options (product improvements, product modifications, and original products) refer to new products, as they either improve upon or introduce something new to an existing product line or market. B, C, D, and E do not accurately describe all three options.

Question 18

Your firm added three new products earlier this year to increase variety for customers.Two of them failed to reach even minimal sales.Which of the following is LEAST likely to have been the cause of their failure?
A)Competitors fought back harder than expected.
B)The products were priced too high.
C)The products were advertised incorrectly.
D)Research was too extensive.
E)The product launch was ill- timed.

Accepted Answer

Research that is too extensive may actually make it difficult to make decisions, but it is unlikely to be the direct cause of a product's failure to sell. The other options (A, B, C, and E) all directly relate to factors that affect consumer behavior and purchasing decisions.

Question 19

Although test marketing costs can be high,they are often small when compared with .
A)prototype development costs
B)research and development costs
C)the costs of a major mistake
D)business analysis costs
E)the costs of idea generation

Accepted Answer

The cost of making a major mistake can be much higher than the cost of test marketing. If a product is launched without proper testing, and it fails, the cost of rebranding, recalling and fixing the mistake can be much higher than the cost of test marketing. Therefore, it is important to test market products to avoid costly mistakes.

Question 20

Which of the following best describes the role of a product steward?
A)to protect consumers from harm
B)to develop a new- product concept into a physical product
C)to evaluate new- product ideas against a set of general criteria
D)to protect the company from liability by identifying and solving potential product problems
E)A and D

Accepted Answer

A product steward's role is to ensure that the products are safe for consumers and to protect the company from liability. This includes identifying and solving potential product problems, as well as evaluating new-product ideas against a set of general criteria to ensure that they meet safety and regulatory requirements. Therefore, both options A and D are correct. Option B is more closely associated with the role of a product designer, while option C is more closely associated with the role of a product manager.

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

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

Your company decides to use only internal sources for developing new- product ideas.Which of the following would NOT be consulted?

Increasing profits will most likely occur at which stage of the PLC?

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

occurred when Alton Johnson's fascination with the fruits of Brazil led him to develop juices with new fruit flavors by Bosa Nova for the American market.

New- product development starts with .

CellTones,a new company selling several lines of cellular phones,has closely modeled its products after successful products that are already in the marketplace.As it prepares to enter the market with its new products and services,which of the following should concern CellTones the most?

Over the past 100 years or so,Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world.Crayola crayons are in the _ stage of the PLC.

After concept testing,a firm would engage in which stage in developing and marketing a new product?

At Fantastic Flavors,a large regional chain of candy stores,employees from marketing,design,production,and finance work in a cross- functional group to save time and money in the new- product development process.Fantastic Flavors uses a(n) approach.

For some _,a simple description consisting of a word or picture might be sufficient.

The owners of GrayBerry Gifts have just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs.The owners will begin the first idea- reducing stage,called ,to arrive at a realistic number to adopt.

Some products that have entered the decline stage have been cycled back to the growth stage through _ .

P&G introduced its Duncan Hines ready- to- spread frosting in a small geographic area.When General Foods became aware of the product,it rushed to market its own Betty Crocker ready- to- spread frosting,which eclipsed the Duncan Hines product introduction.This act illustrates .

The third part of the marketing strategy statement includes all of the following EXCEPT _ _.

Product improvements,product modifications,and original products can all be classified as .

Your firm added three new products earlier this year to increase variety for customers.Two of them failed to reach even minimal sales.Which of the following is LEAST likely to have been the cause of their failure?

Although test marketing costs can be high,they are often small when compared with .

Which of the following best describes the role of a product steward?