Question 1

Cathy 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

The fact that Cathy has been using Olay products for years and plans to purchase a newly introduced product from their Regenerist line suggests that Olay is in the maturity stage of the product life cycle. The introduction stage is characterized by the initial launch of a product, while the growth stage is marked by increasing sales and profits. Evaluation typically refers to the process of assessing the performance of a product, and decline is when sales begin to decrease.

Question 2

During the ________ stage of the product life cycle, there are few but an increasing number of competitors.
A) growth
B) introduction
C) maturity
D) decline
E) innovation

Accepted Answer

During the growth stage, the product is gaining acceptance in the market and sales are increasing rapidly. As a result, there may be few competitors initially, but as the market grows, more competitors may enter the market.

Question 3

How is consumer panel data collected during the test marketing phase of a new product introduction?
A) Panelists complete a questionnaire about the product.
B) Panelists scan their receipts on a home scanning device.
C) Stores provide sales data to companies.
D) Consumers voluntarily go to a website to record their preferences.
E) Focus groups are held in key markets.

Accepted Answer

During the test marketing phase, consumer panel data is typically collected through the use of home scanning devices, where panelists scan their receipts to provide data on their purchases and usage of the new product. This data is then analyzed to determine the product's success and make any necessary adjustments before a wider launch. Other methods such as questionnaires, sales data from stores, website recordings, and focus groups may also be used, but the use of home scanning devices is a common and effective way to collect consumer panel data.

Question 4

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

During the introductory stage, a product is still new to the market and needs to establish its brand and promote its features and benefits to the target audience. Therefore, marketing and promotional expenses are usually high during this phase, which means that profits may not be seen until the end of the stage. Once a product starts to gain acceptance, it is likely to move into the growth stage before reaching maturity. Also, competition continues to be important as other companies may try to enter the market with similar offerings. Launching spinoffs is not a typical outcome of success in the introductory stage.

Question 5

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 of a product's life cycle, the typical consumers are innovators. Innovators are the first to adopt a new product, often seeking out new and unconventional products to try. They are willing to take risks and explore new technologies, making them key players in the early stages of a product's life cycle.

Question 6

The shape of the diffusion of innovation curve is described as
A) bell-shaped.
B) positive.
C) negative.
D) variant.
E) convex.

Accepted Answer

The diffusion of innovation curve is typically bell-shaped, representing the adoption of a new product or innovation over time, with categories like innovators, early adopters, early majority, late majority, and laggards.

Question 7

Firms can measure the success of a new product by all of the following factors except
A) satisfaction of its technical requirements.
B) fewer competitors in the market.
C) satisfactory sales and profits.
D) customer acceptance.
E) satisfactory performance.

Accepted Answer

Fewer competitors in the market is not a factor that directly measures the success of a new product. While it may indirectly contribute to success, it is not a direct measure such as customer acceptance or satisfactory sales and profits.

Question 8

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) ________ in the MP3 player market.
A) blockbuster
B) early adopter
C) pioneer
D) market tester
E) concept tester

Accepted Answer

Eiger Labs was a pioneer in the MP3 player market because it introduced the first mass-produced MP3 player, leading the way for others in the industry.

Question 9

After a product has been launched, marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed, if any. For a product that does move on, the firms can measure the success of the new product by interrelated factors that include all of the following except
A) its satisfaction of technical requirements.
B) its satisfaction of performance.
C) customer acceptance.
D) its satisfaction of the firm's financial requirements.
E) its satisfaction of the firm's manufacturing requirements.

Accepted Answer

The interrelated factors that determine the success of a new product include its technical requirements, performance, customer acceptance, and financial requirements. The satisfaction of the firm's manufacturing requirements is not typically included in this evaluation because it is more of an operational concern rather than a marketing concern. However, if manufacturing issues negatively impact any of the other factors, then it could be taken into consideration during the postlaunch review.

Question 10

Paul 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 as they are becoming harder to find and are being replaced by more modern technology like digital music.

Question 11

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 curve can be a helpful tool, it is often difficult to pinpoint with absolute certainty where a product falls on the curve. Therefore, David should be cautious about making definitive conclusions about where each product stands in its life cycle.

Question 12

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 market becomes saturated with similar products from competitors, which increases price competition. This can lead to price promotions and discounts, making price a deciding factor for consumers.

Question 13

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of
A) beta testing.
B) market testing.
C) premarket tests.
D) test marketing.
E) concept testing.

Accepted Answer

Beta testing refers to the process of offering a product or service for testing by a small group of potential customers prior to its official launch. In this case, Nintendo is offering the new video game to a few of its customers for testing, which fits the definition of beta testing. Market testing, premarket tests, test marketing, and concept testing all refer to different types of market research activities that are conducted prior to the launch of a new product or service, but they are not the best choice for this specific scenario.

Question 14

Which of the following statements 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 a product goes through from introduction to growth, maturity, and decline in the marketplace.

Question 15

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 (CPG) found in stores are already in the maturity stage of the product life cycle, which is characterized by slower growth, high competition, and a focus on maintaining market share through effective marketing and distribution strategies. Introducing new products can still happen in this stage, but it may require heavy investment and innovation to stand out from established brands.

Question 16

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?
A) late majority
B) early majority
C) laggards
D) early adopters
E) innovators

Accepted Answer

The answer of Which of the following adopter categories refers...

Question 17

Which of the following is true of profits in the maturity stage of the product life cycle?
A) They are negative.
B) They are low.
C) They peak or are declining.
D) They are rapidly rising.
E) They are slowing rising.

Accepted Answer

In the maturity stage, profits tend to peak or decline as competition increases and sales growth slows down. The market becomes saturated and it becomes harder to maintain market share without resorting to price cuts or promotions, which can eat into profits.

Question 18

On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the XYZ firm confirms its target market (or markets) and decides how its product will be positioned. Then the firm finalizes the remaining marketing mix variables for the new product, including the marketing budget for the first year. This process illustrates
A) the product launch.
B) the company's evaluation of results.
C) premarket demonstrations.
D) alpha testing.
E) beta testing.

Accepted Answer

This process illustrates the product launch, where the firm confirms its target market, positions the product, and finalizes the marketing mix, including the budget, before introducing the product to the market.

Question 19

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as
A) premarket testing.
B) market testing.
C) alpha testing.
D) concept testing.
E) prelaunch testing.

Accepted Answer

Premarket testing involves giving a sample of the product to customers before it is officially launched in the market to gauge their interest and likelihood of purchasing or using the product again.

Question 20

The product life cycle is theoretically ________ with regard to sales and profits.
A) U shaped
B) Y shaped
C) bell shaped
D) circular
E) flat lined

Accepted Answer

The product life cycle follows a bell-shaped curve, which signifies the typical pattern of sales and profits of a product over its lifespan. Sales and profits rise initially with product introduction, peak during the growth phase, plateau during maturity, and decline during the saturation and decline phases.

Quiz 12: Developing New Products

Cathy 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.

During the ________ stage of the product life cycle, there are few but an increasing number of competitors.

How is consumer panel data collected during the test marketing phase of a new product introduction?

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

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

The shape of the diffusion of innovation curve is described as

Firms can measure the success of a new product by all of the following factors except

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States. Eiger Labs was a(n) ________ in the MP3 player market.

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

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market, this is an example of

Which of the following statements best explains 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.

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

Which of the following is true of profits in the maturity stage of the product life cycle?

In one test before product launch, customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again. This is known as

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