Question 1

Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The fact that Fitbit can monitor motion while awake and asleep makes it different from competing products that might increase its rate of adoption.Which product characteristic affecting the rate of adoption does this illustrate?
A) complexity
B) compatibility
C) relative advantage
D) observability
E) trialability

Accepted Answer

Fitbit has a relative advantage over the Nike + iPod and the Zeo devices because it monitors what both of them do separately.

Question 2

Rapala VMC Corporation
Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.The "dream lure for the 21ˢᵗ century will more than likely be an example of a(n):
A) new product line
B) addition to existing product line
C) discontinuous innovation
D) improvement to existing product
E) repositioned product

Accepted Answer

The firm makes lures and is simply adding a new one to its product mix.

Question 3

The rate of sales decline during the decline stage of the product life cycle is largely governed by:
A) the amount of money spent on advertising
B) the number of competitors in the market
C) the intensity of the competition's marketing efforts
D) the amount of shelf space allotted to the product
E) how rapidly consumer tastes change or substitute products are adopted

Accepted Answer

Changing consumer tastes can force a product into decline,particularly if an alternative is available.

Question 4

Rapala VMC Corporation
Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.After the trade show,the newest lure made by Rapala will enter which stage of the new-product development process?
A) commercialization
B) idea generation
C) idea screening
D) concept testing
E) product development

Accepted Answer

The final stage of the new-product development process is commercialization,the decision to market a product.

Question 5

A long-run drop in sales signals the beginning of which stage in the product life cycle?
A) laggard stage
B) saturation stage
C) deterioration stage
D) decline stage
E) decay stage

Accepted Answer

This is a characteristic of the decline stage of the PLC.

Question 6

In which stage of the product life cycle do marginal competitors start dropping out of the market?
A) introduction
B) growth
C) maturity
D) decline
E) shake-out

Accepted Answer

In the maturity stage,sales increase at a decreasing rate,and as prices and profits continue to fall,marginal competitors start dropping out of the market.

Question 7

Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The idea for the Fitbit was generated from an employee retreat in which everyone was encouraged to think of unlimited product ideas for the fitness-minded consumer.Participants did not critique any of the ideas as the goal at that point was just to generate ideas.What idea-generating technique does this illustrate?
A) brainstorming
B) brain dumping
C) snowball sampling
D) laddering
E) entropy

Accepted Answer

The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a problem,and members avoid criticism of an idea no matter how ridiculous it may seem.

Question 8

You are a product manager for a manufacturer of trampolines.You have determined that the trampoline is in the maturity stage of the product life cycle.To keep your product from entering the decline stage,you should:
A) use promotion to increase primary demand for trampolines
B) abandon peripheral target markets for trampolines
C) raise the price of your trampolines because customers are not price sensitive in this stage
D) eliminate all unnecessary marketing expense
E) promote trampolines heavily to dealers and customers

Accepted Answer

In the maturity stage, sales growth slows down and competition becomes intense, therefore it is important to promote the product heavily to dealers and customers to maintain market share and prevent decline. This can be done through advertising, sales promotions and public relations efforts to differentiate the product from competitors. Eliminating all unnecessary marketing expenses would be a mistake as it could result in loss of market share, while raising the price in this stage may not be feasible due to increased competition and price sensitivity. Abandoning peripheral target markets does not make sense if there is still demand for the product in those markets. Finally, using promotion to increase primary demand for trampolines may not be effective as it is likely that the market for the product is already established.

Question 9

Which of the following statements about the product life cycle (PLC)is true?
A) The PLC concept encourages marketing managers to think reactively.
B) Marketers do not yet understand the relationship between the adopter categories and the stages of the PLC.
C) There are as many new buyers in the maturity stage of the PLC as in the growth stage.
D) The PLC is especially useful as a predicting tool.
E) Just as there are five adopter categories,there are five PLC stages.

Accepted Answer

The PLC concept encourages marketing managers to think proactively.

Question 10

Typically,at the beginning of the maturity stage of the product life cycle,sales:
A) become flat and do not change
B) increase at an increasing rate
C) decrease at a decreasing rate
D) decrease at an increasing rate
E) increase at a decreasing rate

Accepted Answer

In the maturity stage,sales are still increasing,but the rate of increase has slowed down.

Question 11

The advertising strategy during the growth stage of the product life cycle should be to:
A) aim at the needs of innovators
B) make the mass market aware of brand benefits
C) use advertising as a vehicle for introducing the product category benefits
D) emphasize the product's low price to help reduce inventories
E) make the market aware of product category brands

Accepted Answer

During growth,the competition has appeared,and advertising should emphasize brand differences.

Question 12

B.F.Goodrich has been manufacturing and marketing automotive tires for over one hundred years.It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear,Dunlap,and other tire manufacturers.From this information,you should know tires are in the _____ stage of their product life cycle.
A) maturity
B) growth
C) saturation
D) decline
E) development

Accepted Answer

During the maturity stage,heavy consumer promotion by the manufacturer is required to maintain market share.

Question 13

Which of the following products is most likely to be in the decline stage of its product life cycle?
A) cookie mixes
B) wireless mobile phones
C) programmable CD-ROMs
D) funeral caskets
E) prerecorded audiocassette tapes

Accepted Answer

Sales are falling,and the product is not being supported by marketing efforts even though there are still some cassette tape players in use.

Question 14

Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The process by which the adoption of this innovative product spreads is called the:
A) diffusion process
B) product life cycle
C) consumption process
D) viral process
E) two-stage process

Accepted Answer

The diffusion process is the process by which the adoption of an innovation spreads.

Question 15

Rapala VMC Corporation
Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.The testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?
A) commercialization
B) idea generation
C) idea screening
D) concept testing
E) product development

Accepted Answer

These lures would be prototypes.

Question 16

Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.The company marketing the Fitbit does not currently market a product like this.Which of the following best represents the category of new product the Fitbit is for this company?
A) new-to-the-world product
B) new product line
C) additions to existing product lines
D) repositioned product
E) incremental product

Accepted Answer

The category of new product lines represent products which the firm has not previously offered.

Question 17

During the growth stage of the product life cycle:
A) there is little emphasis on the distribution strategy
B) demand for the product is limited to high-income consumers
C) prices increase due to economies of scale
D) there is decreased direct competition
E) profits peak

Accepted Answer

During the growth stage of the PLC,profits rise rapidly,reach their peak,and begin declining as competition intensifies.

Question 18

The marketing manager for a company that manufactures pet foods wants to base the marketing strategy she implements for the company's products on the product life cycle stages.In order to do this,she should:
A) add new ingredients to products that enter the maturity stage of the product life cycle
B) start test marketing new products every time an existing product enters the maturity stage of its product life cycle
C) change all private brands to generic brands once a product reaches the maturity stage
D) create a line extension for every product the company makes as soon the product leaves the introductory stage of its product life cycle
E) change the labels on its products as they change stages of the life cycle

Accepted Answer

The answer of The marketing manager for a company that...

Question 19

Normally,the longest stage of the product life cycle is the _____ stage.
A) maturity
B) growth
C) introductory
D) decline
E) development

Accepted Answer

Many products,such as major household appliance,s,are in this stage of their life cycles and have been for years.

Question 20

Fitbit
The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use.
-Refer to Fitbit.In terms of the new-product development process,Fitbit's availability in retail stores and online is the _____ stage.
A) idea screening
B) idea generation
C) business analysis
D) test marketing
E) commercialization

Accepted Answer

The final stage in the new-product development process is commercialization,the decision to market the product.

Quiz 11: Developing and Managing Products

The rate of sales decline during the decline stage of the product life cycle is largely governed by:

A long-run drop in sales signals the beginning of which stage in the product life cycle?

In which stage of the product life cycle do marginal competitors start dropping out of the market?

You are a product manager for a manufacturer of trampolines.You have determined that the trampoline is in the maturity stage of the product life cycle.To keep your product from entering the decline stage,you should:

Which of the following statements about the product life cycle (PLC) is true?

Typically,at the beginning of the maturity stage of the product life cycle,sales:

The advertising strategy during the growth stage of the product life cycle should be to:

Which of the following products is most likely to be in the decline stage of its product life cycle?

During the growth stage of the product life cycle:

The marketing manager for a company that manufactures pet foods wants to base the marketing strategy she implements for the company's products on the product life cycle stages.In order to do this,she should:

Normally,the longest stage of the product life cycle is the _____ stage.