Question 1

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC.Which of the following should NOT be done in the identification process?
A)regularly reviewing market share
B)regularly reviewing management's pet projects
C)regularly reviewing costs
D)regularly reviewing profit trends
E)regularly reviewing sales

Accepted Answer

Reviewing management's pet projects is not relevant to identifying products in the decline stage of the PLC. The other options (reviewing market share, costs, profit trends, and sales) are all important factors to consider when identifying products in the decline stage.

Question 2

Which of the following is a disadvantage of a team- based approach to new- product development?
A)Organizational confusion and tension can affect the process.
B)Levels of risk can be more easily controlled.
C)The development effort is not as effective because of team members' lack of expertise.
D)The process does not work with the shorter life cycles of many of today's products.
E)It takes longer to get the right products to market.

Accepted Answer

While a team-based approach can have many benefits, including increased creativity and communication among team members, it can also lead to organizational confusion and tension if team members have different goals or priorities. This can slow down the development process and even lead to project failure if conflicts cannot be resolved.

Question 3

The second part of the marketing strategy statement outlines the product's planned price,distribution,and for the first year.
A)positioning
B)promotional mix
C)target market
D)marketing budget
E)advertising

Accepted Answer

The answer of The second part of the marketing strategy...

Question 4

JoAnn Fabrics,Inc.has just created a new combination of colors and fabric types.The firm wants to be sure of the way consumers think about its new product.The firm is concerned with the product .
A)image
B)presentation
C)idea
D)screening
E)commercialization

Accepted Answer

The firm's concern about how consumers think about the new product falls under the concept of product image, which is the mental picture or perception that consumers have about a product.

Question 5

Which of the following statements best explains why idea screening may be the most important step of new- product development?
A)It gives research and development team members an opportunity to gather consumer feedback.
B)Some potentially profitable ideas may be ill perceived by the idea screeners.
C)It increases the number of ideas generated.
D)It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.
E)Some ideas that will become market disasters may be originally viewed favorably by the idea screeners.

Accepted Answer

Idea screening is crucial as it helps a company save money by only advancing ideas that are likely to be profitable. It filters out ideas that may seem good initially but are not likely to succeed in the market, thus avoiding unnecessary expenses for product development.

Question 6

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.General Foods was able to enter the stage of the new- product development process before P&G could.
A)business analysis
B)screening
C)idea generation
D)product concept development
E)commercialization

Accepted Answer

The scenario described is a case of commercialization, where P&G introduced its product in a small geographic area but General Foods rushed to the market with a competing product before P&G could. This suggests that General Foods was able to enter the commercialization stage of the new-product development process before P&G.

Question 7

is a new- product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
A)Simultaneous product development
B)Product life- cycle analysis
C)Micromarketing
D)Team- based product development
E)Sequential product development

Accepted Answer

Sequential product development is a new product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

Question 8

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 vacuum is at the stage of the product life cycle.
A)product development
B)introduction
C)growth
D)incubation
E)adoption

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 9

Sherri's Exclusives sells currently accepted and popular clothing items in given fields.What does she stock in her store?
A)services
B)styles
C)fashions
D)exclusives
E)fads

Accepted Answer

Sherri's Exclusives sells currently accepted and popular clothing items, which are commonly referred to as "fashions".

Question 10

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."
-When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner,she was doing which of the following?
A)marketing strategy development
B)concept testing
C)commercializing
D)idea screening
E)test marketing

Accepted Answer

Evelyn was conducting concept testing by setting up a demonstration booth to gather consumer feedback and gauge interest in her solar-powered vacuum cleaner.

Question 11

The first part of the marketing strategy statement describes the target market;the planned product positioning;and goals for sales,profits,and .
A)life- cycle duration
B)product longevity
C)promotional mixes
D)secondary markets
E)market share

Accepted Answer

The first part of the marketing strategy statement includes goals for market share, in addition to the target market and planned product positioning. Sales and profits are also typically included in this section. Life-cycle duration, product longevity, promotional mixes, and secondary markets may be addressed later in the marketing strategy statement, but they are not typically included in the first part.

Question 12

Which of the following is NOT a potential reason for a new product to fail?
A)a poorly designed product
B)ineffective advertising
C)higher than anticipated costs of product development
D)an incorrectly positioned product
E)an underestimated market size

Accepted Answer

An underestimated market size is not a potential reason for a new product to fail.

Question 13

Flurrbies,a brand of winter accessories that fell in and out of favorability with customers quickly,is an example of a .
A)product idea
B)market strategy
C)fad
D)fashion
E)style

Accepted Answer

Flurrbies quickly gained popularity among customers, indicating that it was a fad. However, the fact that the brand fell out of favorability just as quickly suggests that it did not have lasting staying power or enduring appeal, which distinguishes it from fashion and style.

Question 14

is the product life cycle period when sales fall off and profits drop.
A)Development
B)Growth
C)Decline
D)Maturity
E)Introduction

Accepted Answer

The decline stage of the product life cycle is characterized by a decrease in sales and profits as the product's novelty wears off and competitors enter the market. It often signals the end of the product's life cycle, but companies may try to extend the product's life through strategies such as price reductions or product improvements.

Question 15

In the concept testing stage of new- product development,a product concept in _ _ form is presented to groups of target consumers.
A)commercial
B)physical or symbolic
C)market- tested
D)experiential
E)final

Accepted Answer

In the concept testing stage, a product concept in physical or symbolic form is presented to groups of target consumers to get their feedback on the concept. This allows the company to gather information on the potential success of the product before investing in further development.

Question 16

Atlas Steel Corporation lacks the confidence,capital,and capacity to launch its new steel product into full national or international distribution.Test market results look promising,so what should be management's next step?
A)seek the help of a nationally known consultant
B)retest the product in additional markets
C)develop a prototype
D)develop a planned market rollout over time
E)secure a loan to provide confidence,capital,and capacity

Accepted Answer

Developing a planned market rollout over time would allow Atlas Steel Corporation to gradually expand their distribution while continuing to monitor and gather feedback from each new market. This approach would allow them to build confidence in their product, acquire necessary capital gradually, and build their capacity over time without taking on too much risk. Seeking the help of a nationally known consultant or securing a loan may also be beneficial, but a planned market rollout is the best initial step. Retesting the product in additional markets or developing a prototype may be necessary later in the process.

Question 17

Which of the following would lead to greater competition in the maturity stage of the PLC?
A)overcapacity
B)inadequate promotion
C)poor management
D)diminishing budgets
E)market pioneers

Accepted Answer

Overcapacity in the maturity stage can lead to a situation where there is excess supply compared to demand, resulting in increased competition among firms to capture market share. This can lead to price-cutting and other competitive strategies to gain a larger share of the market. In contrast, inadequate promotion, poor management, and diminishing budgets are more likely to lead to a decline in sales and market share, rather than increased competition. Market pioneers may also face increased competition in the maturity stage, but this is not a guaranteed outcome and depends on the actions of their competitors.

Question 18

The team- based new- product development approach uses cross- functional teams that overlap the steps in the process to achieve which of the following goals?
A)save time and eliminate errors
B)increase effectiveness and employee satisfaction
C)save time and increase effectiveness
D)speed product to market and reduce costs
E)B and D

Accepted Answer

The team-based approach aims to save time and increase effectiveness by having cross-functional teams work together, overlapping steps in the process to streamline development and improve outcomes.

Question 19

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released.Sales must be estimated before costs can be estimated.Which of the following did your text recommend for forecasting sales?
A)applying the PLC concept
B)considering the sales history of similar products and conducting surveys of market opinions
C)considering the history of market opinions
D)conducting surveys of competitors
E)none of the above

Accepted Answer

The text recommends considering the sales history of similar products and conducting surveys of market opinions for forecasting sales. This approach takes into account both past performance and current market demand to provide a more accurate estimate of potential sales. The other options (applying the PLC concept, considering history of market opinions, and conducting surveys of competitors) do not provide as comprehensive of an analysis for sales forecasting.

Question 20

A detailed version of a new idea stated in meaningful customer terms is called a .
A)product image
B)product movement
C)product proposal
D)product idea
E)product concept

Accepted Answer

A detailed version of a new idea stated in meaningful customer terms is called a product concept. This involves a more comprehensive explanation of a new idea or product, including how it works, what it does, and how it benefits customers. A product concept helps to articulate the value proposition of a new idea or product, making it easier for customers to understand and relate to. It is an essential step in the product development process and can help to ensure product success.

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

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC.Which of the following should NOT be done in the identification process?

Which of the following is a disadvantage of a team- based approach to new- product development?

The second part of the marketing strategy statement outlines the product's planned price,distribution,and for the first year.

JoAnn Fabrics,Inc.has just created a new combination of colors and fabric types.The firm wants to be sure of the way consumers think about its new product.The firm is concerned with the product .

Which of the following statements best explains why idea screening may be the most important step of new- product development?

is a new- product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

Sherri's Exclusives sells currently accepted and popular clothing items in given fields.What does she stock in her store?

The first part of the marketing strategy statement describes the target market;the planned product positioning;and goals for sales,profits,and .

Which of the following is NOT a potential reason for a new product to fail?

Flurrbies,a brand of winter accessories that fell in and out of favorability with customers quickly,is an example of a .

is the product life cycle period when sales fall off and profits drop.

In the concept testing stage of new- product development,a product concept in _ _ form is presented to groups of target consumers.

Atlas Steel Corporation lacks the confidence,capital,and capacity to launch its new steel product into full national or international distribution.Test market results look promising,so what should be management's next step?

Which of the following would lead to greater competition in the maturity stage of the PLC?

The team- based new- product development approach uses cross- functional teams that overlap the steps in the process to achieve which of the following goals?

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released.Sales must be estimated before costs can be estimated.Which of the following did your text recommend for forecasting sales?

A detailed version of a new idea stated in meaningful customer terms is called a .