Question 1

During the ___________ stage of the product life cycle,firms either position themselves for a niche market of loyal consumers or they exit the market.

Accepted Answer

During the decline stage of the product life cycle, sales decrease, and firms must decide whether to continue competing in a niche market or exit the market altogether.

Question 2

When Dr.Putt invented his Eye-Over-the-Ball (EOB)golf putting device,he knew during the introductory stage

Accepted Answer

During the introductory stage of a product, sales are typically low because the product is just being introduced to the market, and profits are often nonexistent as the initial costs of product development and marketing are being recovered. Innovators, who are always on the lookout for the latest advancements, are usually the first to try new products.

Question 3

During the __________ stage of the product life cycle,sales rise,profits rise rapidly,and there are a small but increasing number of competitors.

Accepted Answer

During the growth stage, the product is gaining acceptance among consumers, resulting in an increase in sales and profits. The number of competitors is also growing, but it is still relatively small compared to the maturity stage.

Question 4

During the __________ stage of the product life cycle,sales are low and profits are small or negative.

Accepted Answer

During the introduction stage, sales are low because the product is new and requires consumer awareness and trial. Profits may also be small or negative due to the heavy investment in product development and marketing.

Question 5

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

Accepted Answer

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

Question 6

Which of the following is not a characteristic of products in the maturity stage of the product life cycle?

Accepted Answer

Laggards are typically not a major focus of marketing efforts during the maturity stage of the product life cycle. Instead, the focus is on retaining existing customers and competing with other firms in the market.

Question 7

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

Accepted Answer

During the maturity stage, the product has reached its peak in terms of sales and has a stable customer base. However, competition becomes intense and profits begin to decline.

Question 8

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore.When evaluating the results,Beverly will likely consider all of the following except

Accepted Answer

The other options all directly relate to the success of the new product launch and would be important considerations for Beverly. However, the reason for her delay in launching the product line would not be relevant in evaluating its current performance.

Question 9

By the time BMW and Mercedes-Benz entered the mini-SUV market,there were many competitors,sales had peaked,and profits were declining.These firms entered the market during the __________ stage of the product life cycle.

Accepted Answer

The answer of By the time BMW and Mercedes-Benz entered...

Question 10

The growth phase of the product life cycle is always dynamic.Which of the following does not occur in this phase?

Accepted Answer

The statement "Price competition with protracted price wars erodes profits" is actually a common occurrence in the growth phase of the product life cycle. Therefore, option E does not fit in this category.

Question 11

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve?

Accepted Answer

The correct sequence of new product adopters in the diffusion of innovation curve is innovators, early adopters, early majority, late majority, and laggards. Choice A is the only option that presents the correct sequence in the right order. Choice B and C switch the order of early adopters and innovators, while choice D switches the order of early and late adopters. Choice E puts the late majority before the early majority, which is also incorrect.

Question 12

When Toyota introduced hybrid cars,there were waiting lists to buy them.Then Honda and a few other manufacturers entered the market,shifting the product life cycle for hybrid cars into the __________ stage of the product life cycle.

Accepted Answer

The introduction stage is when a product is first introduced to the market and there is limited awareness and sales. The leveling stage refers to a period of slow sales growth after the initial introduction. The maturity stage is when sales growth slows down and the market becomes saturated with competitors. The decline stage is when sales start to decline as the product becomes outdated. The growth stage is when demand for the product increases rapidly, which is the stage that the hybrid car market was in when Honda entered. Therefore, the best choice is D) growth.

Question 13

The __________ step in the product development process is critical,requiring tremendous resources and extensive coordination of all aspects of the marketing mix.

Accepted Answer

The product launch is the step in the product development process that is critical and requires tremendous resources and extensive coordination of all aspects of the marketing mix. This is the point at which the product is introduced to the market and the success of the entire product development process hinges on a successful launch. Pretesting, posttesting, product development, and evaluation of results are important steps but not as critical as the product launch.

Question 14

Microsoft's Windows operating system continues to dominate the market,even though it has been around for over 20 years.Windows will likely remain in the maturity stage of the product life cycle

Accepted Answer

The maturity stage of the product life cycle is characterized by a stable market share and the dominance of a few major players. Windows has been in this stage for a while and is likely to remain there until a superior product comes along and displaces it.

Question 15

When McDonald's comes up with a new drink or sandwich for its restaurants,it often markets it in a dozen or so of its outlets.When the company does this,it is engaged in

Accepted Answer

McDonald's is engaged in test marketing when it introduces a new product in a few select outlets to test its appeal and viability before launching it nationwide.

Question 16

A marketing professor in Ithaca,New York,maintains a museum of failed consumer products.Most new products in this museum failed during the __________ stage of new product development,when they are introduced to a limited geographic area.

Accepted Answer

Test marketing is the stage when a new product is launched in a limited geographic area to test its potential success before a widespread launch. Therefore, if the majority of the products in the museum of failed consumer products failed, it is likely due to their poor performance during the test marketing stage.

Question 17

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

Accepted Answer

While the product life cycle can be a useful tool for understanding the trajectory of a product, it is often difficult to determine exactly where a product is in the cycle with precision. Additionally, it is not the only tool for understanding product management strategies and may not be applicable to all types of products or companies.

Question 18

Some products may stay comfortably in the maturity phase of the product life cycle until a new product emerges to replace them.An example of such a mature product is

Accepted Answer

Refrigerators are an example of a product that has remained in the maturity phase for a long time. They are a staple in households worldwide, with incremental improvements over time rather than significant innovations that would start a new product life cycle.

Question 19

Which of the following is not one of the four product life cycle stages?

Accepted Answer

The four product life cycle stages are introduction, growth, maturity, and decline. Stagnation is not a recognized stage in the product life cycle model.

Question 20

Which of the following would not be part of the launch of a new product?

Accepted Answer

Starting to make preliminary decisions about the target market would typically occur earlier in the product development process, not at the launch stage.

Quiz 12: Developing New Products