Question 1

A product in the ________ stage faces intense competition on price.
A)introduction
B)growth
C)decline
D)development
E)maturity

Accepted Answer

During the maturity stage, the product has achieved widespread acceptance and competition increases. This leads to increased competition on price as companies try to capture market share.

Question 2

Which statement best explains the product life cycle?
A)the process by which the use of an innovation spreads throughout a market group over time and over various categories of adopters
B)the length of time a product exists in the marketplace before the market becomes saturated
C)the stages that products move through as they enter, get established in, and ultimately leave the marketplace
D)the time in which firms hire an outside firm to help generate ideas and develop new products and services
E)the process in which a product is analyzed and improved so that it does not infringe on the competitor's patents

Accepted Answer

The product life cycle refers to the stages that products go through as they enter, get established in, and eventually leave the market. These stages include introduction, growth, maturity, and decline.

Question 3

The CEO of David's firm just came back from a business seminar. He called David into his office and stated, "I just found out about the product life cycle curve in a strategy seminar. This is a great tool. I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that
A)the product life cycle is not a useful concept.
B)it is often impossible to identify with precision where a product is in the product life cycle.
C)the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation.
D)the idea has been discredited by recent research.
E)the product life cycle works only for certain types of firms.

Accepted Answer

While the product life cycle can be a helpful tool, it is often difficult to precisely identify where a product is in its life cycle. Additionally, some companies may place more emphasis on the diffusion of innovation rather than the traditional product life cycle.

Question 4

During the ________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

This stage is characterized by a high level of competition as more firms enter the market and try to take market share away from each other. As a result, sales growth slows down and eventually peaks, while profits begin to decline due to increased marketing and promotional expenses.

Question 5

The product life cycle is theoretically ________ with regard to sales and profits.
A)a straight line
B)Y shaped
C)bell shaped
D)circular
E)perpendicular lines

Accepted Answer

The product life cycle is described as a bell-shaped curve, starting with the introduction phase, where sales and profits are low, then increasing during the growth phase, reaching a peak during the maturity phase, and finally declining during the decline phase. The highest sales and profits occur during the maturity phase.

Question 6

A good friend of yours wonders why you always seem to have the latest technology, long before anyone else. He then says, "I always want to wait until the bugs have been worked out. It saves me money and aggravation." Use diffusion of innovation theory to explain how you differ as consumers, and what this means to marketers.

Accepted Answer

The answer of A good friend of yours wonders why...

Question 7

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars. When developing their marketing strategies, how can these firms use the diffusion of innovation curve in the early stages of product development?

Accepted Answer

The answer of Many car manufacturers have developed prototypes of...

Question 8

Using the diffusion of innovation theory, what factors contributed to the rapid adoption and success of Amazon.com?

Accepted Answer

The answer of Using the diffusion of innovation theory, what...

Question 9

During the ________ stage of the product life cycle, firms either position themselves for a niche segment of diehard consumers or they completely exit the market.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

During the decline stage of the product life cycle, sales and profits decrease, and firms must decide whether to focus on a niche segment of loyal customers or exit the market altogether. The other options mentioned (introduction, leveling, maturity, and growth) occur earlier in the product life cycle and do not involve a decline in sales and profits.

Question 10

The late majority tends to adopt products during the _______ stage of the product life cycle.
A)maturity
B)decline
C)introduction
D)growth
E)production

Accepted Answer

The late majority tends to adopt products during the maturity stage of the product life cycle, which is when the product has achieved widespread acceptance and is generating steady sales. This group is typically more risk-averse and waits until a product is well-established before adopting it.

Question 11

What is the difference between an innovator and an early adopter?

Accepted Answer

The answer of What is the difference between an innovator...

Question 12

During the introduction stage of a product's life cycle, typical consumers are
A)early adopters.
B)innovators.
C)pioneers.
D)early majority.
E)laggards.

Accepted Answer

During the introduction stage, the typical consumers are innovators who are the first to adopt new products and are willing to take risks to try out new innovations.

Question 13

Talia has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the ________ stage of the product life cycle.
A)introduction
B)growth
C)evaluation
D)maturity
E)decline

Accepted Answer

Olay's Regenerist line has been on the market for years, and the micro-sculpting cream is a new addition to the line. This indicates that the product line is in the maturity stage of the product life cycle.

Question 14

When a product is successful in the introductory stage of the product life cycle,
A)it moves directly into the maturity stage.
B)it is most likely to begin to launch spinoffs.
C)competition becomes less important.
D)it may start to see profits toward the end of this stage.
E)marketing costs increase significantly.

Accepted Answer

While the introductory stage is characterized by high marketing and development costs, successful products may start to see profits toward the end of this stage, as sales begin to increase and costs are recouped. However, the product will typically move into the growth stage before reaching maturity. Competition may also increase during the growth stage, making it more challenging to maintain success. Spinoffs may be an option for some products, but this is not a guaranteed result of success in the introductory stage.

Question 15

What happens when a product has been in the marketplace for a long time? How can this be avoided?

Accepted Answer

The answer of What happens when a product has been...

Question 16

How do changing customer needs foster innovation efforts in business? Provide an example.

Accepted Answer

The answer of How do changing customer needs foster innovation...

Question 17

What is a characteristic of competition in the maturity stage of the product life cycle?
A)Competition is nonexistent.
B)Competition begins to drop off.
C)Competition is intense.
D)Competition only exists when new products are introduced.
E)Competition tends to rise slowly and decrease dramatically.

Accepted Answer

In the maturity stage of the product life cycle, competition is intense. This is because the market has reached a saturation point and there are multiple competitors fighting for market share. Companies typically resort to pricing wars, promotions, and aggressive advertising to maintain or increase their market share.

Question 18

Geoff listens to music on his iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the ________ stage of the product life cycle.
A)introduction
B)growth
C)evaluation
D)maturity
E)decline

Accepted Answer

Vinyl records are in the decline stage of the product life cycle, indicated by their reduced availability and the fact that they are becoming harder to find, suggesting a decrease in demand and market saturation.

Question 19

In the United States, most consumer-packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle.
A)growth
B)pioneer
C)introduction
D)decline
E)maturity

Accepted Answer

Most consumer-packaged goods found in grocery and discount stores are established and have already reached their peak level of sales. They are in the maturity stage of the product life cycle, which is characterized by a high volume of sales and intense competition.

Question 20

Around 2006, hybrid cars moved from the early adopter to the early majority stage. What did this mean for marketers of hybrid cars?

Accepted Answer

The answer of Around 2006, hybrid cars moved from the...

Quiz 12: Developing New Products

A product in the ________ stage faces intense competition on price.

Which statement best explains the product life cycle?

During the ________ stage of the product life cycle, sales peak and profits begin to decline as competition becomes intense.

The product life cycle is theoretically ________ with regard to sales and profits.

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars. When developing their marketing strategies, how can these firms use the diffusion of innovation curve in the early stages of product development?

Using the diffusion of innovation theory, what factors contributed to the rapid adoption and success of Amazon.com?

During the ________ stage of the product life cycle, firms either position themselves for a niche segment of diehard consumers or they completely exit the market.

The late majority tends to adopt products during the _______ stage of the product life cycle.

What is the difference between an innovator and an early adopter?

During the introduction stage of a product's life cycle, typical consumers are

Talia has used Olay beauty products for years, even though there are many competitors on the market. She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line. Olay is in the ________ stage of the product life cycle.

When a product is successful in the introductory stage of the product life cycle,

What happens when a product has been in the marketplace for a long time? How can this be avoided?

How do changing customer needs foster innovation efforts in business? Provide an example.

What is a characteristic of competition in the maturity stage of the product life cycle?

Geoff listens to music on his iPhone, but he still buys vinyl records at his local music store on occasion, although they are getting harder to find. Vinyl records are in the ________ stage of the product life cycle.

In the United States, most consumer-packaged goods found in grocery and discount stores are already in the ________ stage of the product life cycle.

Around 2006, hybrid cars moved from the early adopter to the early majority stage. What did this mean for marketers of hybrid cars?