Question 1

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

Accepted Answer

These characteristics are more commonly associated with the growth and maturity stages of the product life cycle. The introductory stage is typically marked by low sales, high costs, and limited competition as the product is being introduced to the market.

Question 2

A test market is one example of a laboratory test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

Accepted Answer

A test market is actually a real-world setting where a new product is introduced to a limited geographical area or demographic group to gauge its performance and gather consumer feedback, not a laboratory test.

Question 3

The two techniques that are considered most useful for generating new-product ideas are customer generation and competitive imitation.

Accepted Answer

The most useful techniques for generating new-product ideas include customer and market research, brainstorming, and ideation sessions, rather than solely relying on customer generation and competitive imitation.

Question 4

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 manufacture and distribute, making it more likely to be diffused quickly.

Question 5

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.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 description of Canesta's situation suggests that they are in the introductory stage of the product life cycle, which typically involves high costs and negative profits as the product is still being developed and introduced to the market.

Question 6

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

The development stage involves not just creating the first prototype but also testing and refining it before moving on to the next stage of the new-product process.

Question 7

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

Accepted Answer

Diffusion is the process by which an innovation is communicated and its adoption spreads through a social system over time.

Question 8

A firm's new-product strategy links the new-product development process with the objectives of the marketing departments,the business unit,and the corporation.

Accepted Answer

A firm's new-product strategy should be aligned with the overall objectives of the marketing department, the business unit, and the corporation as a whole to ensure that new products are developed with a clear purpose and direction.

Question 9

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

If competitors find out about the new product before its full introduction, they may be able to copy or improve upon the product before the firm can establish its market presence, leading to a loss of market share and potential profits.

Question 10

Seven employees at Ferguson Fabricators are trying to come up with ideas for new-product development.The employees are all in a room together,shouting out potential ideas.The ideas are written down and evaluated as they are generated.This is an example of brainstorming.

Accepted Answer

In traditional brainstorming, ideas are generated without immediate evaluation or criticism. The scenario described involves evaluating ideas as they are generated, which does not align with the typical brainstorming process.

Question 11

Walker Zanger 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

The answer of Walker Zanger is about to introduce a...

Question 12

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

The statement provides information that Andersen Electronics is conducting an analysis for a new product in the form of an amusement park video skill game. This indicates that the firm is engaged in a new-product business analysis. Therefore, the statement is true.

Question 13

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 product life cycle.

Question 14

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

Accepted Answer

A good match between product characteristics and customer desires is crucial for the success of a new product introduction. Without meeting customer needs and wants, the product is unlikely to gain traction in the market and generate sales. Other factors such as effective marketing, pricing, and distribution can also impact the success of a new product, but without addressing customer demand, these efforts may not be effective.

Question 15

A recording company that is introducing audio versions of early television comedies has decided to offer clips of the recordings at its website.This plan will increase the trialability of the new product.

Accepted Answer

Offering clips of the recordings at the website will allow customers to try out the product, increasing its trialability.

Question 16

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

If the firm's intended market for the product is representative of the whole nation, then choosing a test market with similar characteristics would provide accurate results. However, if the intended market is different, then the test market should reflect those differences in order to provide meaningful data.

Question 17

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

Accepted Answer

With increased globalization, multinational firms have greater access to international markets and face increased competition from global competitors. Therefore, it makes sense for them to consider new-product development from a worldwide perspective to tap into new markets and gain a competitive advantage.

Question 18

It is considered inefficient to use concept tests during the idea-screening stage of the new-product development process.

Accepted Answer

Concept tests are a useful tool during the idea-screening stage as they help to gauge consumer interest and potential demand for the proposed product. This can help companies to make more informed decisions about which ideas to pursue further in the development process.

Question 19

Canada Post has developed a personalized photo stamp that customers can create and use to mail letters.Canada Post has already performed screening,development,and testing.Assuming the results coincide with profit and cost expectations,the most likely next step is commercialization.

Accepted Answer

The statement implies that Canada Post has already gone through the various stages of product development, and assuming that the results meet their profit and cost expectations, the next logical step would be commercialization or the launch of the product. Therefore, the statement is true.

Question 20

For a firm that adheres to the marketing concept,the logical place to start generating new-product ideas is with the customers of the firm.

Accepted Answer

According to the marketing concept, the focus is on providing value to customers and meeting their needs and wants. Therefore, it makes sense to start generating new-product ideas by first understanding the customers and their desires.

Quiz 9: Developing and Managing Products