Question 1

Procter & Gamble is introducing a new controlled-release fabric softener sheet and plans to send consumers free samples in Saturday newspapers.This strategy will increase the trialability of the new product.

Accepted Answer

By sending free samples in Saturday newspapers, Procter & Gamble is increasing the trialability of the new product, thus making option A true.

Question 2

Basically,all that happens in the development stage of the new-product process is that the first prototype of the product gets developed.

Accepted Answer

Not only is a prototype developed,where appropriate,but also preliminary decisions on every aspect of the four Ps are developed at this stage.

Question 3

The most important factor in successful new-product introductions is a good match between product characteristics and market needs.

Accepted Answer

This is true, as a new product must meet the needs and preferences of its target customers to be successful in the market. It is essential to understand the customer needs and their pain points, conduct market research, and develop a product that addresses those needs. By having a good match between the product and the market, the product will likely have higher adoption rates and generate more sales.

Question 4

Diffusion is the process by which the adoption of an innovation spreads.

Accepted Answer

Diffusion theory describes how innovations spread through social systems. It is the process by which a new idea, product or practice is communicated through certain channels over time among members of a social system.

Question 5

As the marketing vice-president for Oakley's protective eyewear for the sports enthusiast,you must come up with new-product ideas.What are five important sources of new-product ideas? What are some techniques you could use to stimulate creative thinking for new-product ideas?

Accepted Answer

The answer of As the marketing vice-president for Oakley's protective...

Question 6

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

Accepted Answer

Andersen Electronics is analyzing costs and revenues for a new product, suggesting they are engaged in a new-product business analysis.

Question 7

The makers of Jameson Irish whiskey believe its product has reached market saturation.This would imply that Irish whiskey is in the maturity stage of its product life cycle.

Accepted Answer

Market saturation typically occurs in the maturity stage of a product's life cycle, indicating that growth is slowing down and the product is reaching its maximum potential in the market.

Question 8

Name and describe four categories of new products.

Accepted Answer

The answer of Name and describe four categories of new...

Question 9

Increasing competition,aggressive brand advertising,and healthy profits are all characteristics found in the introductory stage of the product life cycle.

Accepted Answer

This describes the growth stage.

Question 10

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.Canesta is the pioneering firm in the field and is troubled by economic concerns.Production and promotional costs are high,and profits are negative.Such poor business performance is typical of firms in the introductory stage of the product life cycle.

Accepted Answer

The passage mentions that Canesta has developed a new product, a virtual keyboard, which is a new technology in the market, indicating that it is in the introductory stage of the product life cycle. The passage also states that Canesta is troubled by economic concerns, and that production and promotional costs are high while profits are negative, which is typical of firms in the introductory stage of the product life cycle. Therefore, the statement is true.

Question 11

Studies of the new-product development process over 30 years have concluded companies that are likely to succeed in developing and introducing new products exhibit certain characteristics.List three of the characteristics that improve the likelihood of successful product introduction.

Accepted Answer

The answer of Studies of the new-product development process over...

Question 12

The product life cycle concept encourages marketing managers to act reactively.

Accepted Answer

The product life cycle concept encourages marketing managers to plan so they can take the initiative instead of reacting to past events.

Question 13

Increasing globalization of markets and of competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

Accepted Answer

As markets become more interconnected and competition becomes more intense, multinational firms need to consider the global market when developing new products. This allows them to take advantage of international opportunities and compete with global rivals.

Question 14

The city a firm chooses as its test market should reflect the demographic and other characteristics of the whole nation only if that is an accurate representation of the producer's intended market for the product.

Accepted Answer

A firm's test market should accurately reflect the intended market for the product, so if the intended market for the product is the whole nation, then the test market should reflect the demographic and other characteristics of the whole nation. However, if the intended market is a specific region or subgroup of the population, the test market should reflect those characteristics instead.

Question 15

Many products may experience short-term fluctuations in sales,but a long-term drop in sales probably signifies that a product is in the decline stage of the product life cycle.

Accepted Answer

A long-term drop in sales is a sign of decline stage, according to the product life cycle theory.

Question 16

The Sumatra Coffee Company has two new products.One is a simple hand-cranked coffee grinder.The other is a combination grinder and brewer that also can be used to dispense hot milk.Of these two,the hand-cranked grinder will probably be diffused more quickly because it is less complex.

Accepted Answer

The hand-cranked grinder is less complex and therefore easier to produce and distribute, making it more likely to be diffused more quickly.

Question 17

Test marketing may result in a serious problem if a firm's competitors find out about the new product before it has been fully introduced.

Accepted Answer

This is because competitors can use the information gained from test marketing to improve their own products or launch a competing product before the original one is fully introduced. This can result in loss of market share and profitability for the firm.

Question 18

Profits typically reach their peak during the growth stage of the product life cycle.

Accepted Answer

During the growth stage, sales are increasing rapidly and the company can benefit from economies of scale, leading to higher profits. However, profits may start to decline during the maturity and decline stages of the product life cycle.

Question 19

Walker Zanger,Inc.is about to introduce a new type of ceramic tile that is scratch-resistant and unbreakable.As with other products of this type,Walker Zanger can expect sales of this new type of flooring to follow a bell-shaped curve over the next 10 to 15 years as it follows the product life cycle.

Accepted Answer

Sales of product do not typically follow precise bell-shaped curves over a set period of time.The length of time a product spends in any one stage of the product life cycle may vary dramatically.

Question 20

The product life cycle is so named because it is similar to the premise underlying the concept of any life cycle.The unit of interest is born,it grows for some time,and it reaches some level of maturity and stability before dying.

Accepted Answer

The statement accurately describes the concept of the product life cycle.

Quiz 10: Developing and Managing Products