Deck 9: New Product Development and Product Life-Cycle Strategies

Question 1

Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

A) All products eventually decline.
B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through life-cycle stages.
C) A firm must be good at developing new products to replace aging ones.
D) A firm must be good at adapting its marketing strategies.
E) It is difficult to plot the stages as a product goes through them.

Answer 1

It is difficult to plot the stages as a product goes through them.

Question 2

In the concept testing stage of new-product development,a product concept in ________ form is presented to groups of target consumers.

A) physical or symbolic
B) experiential
C) final
D) market-tested
E) commercial

Answer 2

physical or symbolic

Question 3

Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?

A) the customer value proposition
B) the product image
C) the marketing strategy
D) the business analysis
E) the planned market rollout

Answer 3

the customer value proposition

Question 4

Your firm asks you to consult external sources for new-product ideas.All of the following are common external sources EXCEPT ________.

A) customers
B) suppliers
C) competitors
D) trade shows and magazines
E) the firm's executives

Question 5

Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?

A) analyzing customer complaints and questions
B) relying heavily on customers to know what types of technical products they need
C) working alongside customers to get ideas and suggestions
D) turning customers into cocreators
E) putting customer-created products on the market

Question 6

An attractive idea must be developed into a ________.

A) product idea
B) product concept
C) screened product
D) test market
E) product strategy

Question 7

________ calls for testing new-product concepts with groups of target consumers.

A) Concept development
B) Concept testing
C) Idea generation
D) Idea screening
E) Test marketing

Question 8

Your firm added three new products earlier this year to increase variety for customers.Two of them failed to reach even minimal sales.Which of the following is LEAST likely to have been the cause of their failure?

A) The products were priced too high.
B) The products were advertised incorrectly.
C) Competitors fought back harder than expected.
D) Research was too extensive.
E) The product launch was ill-timed.

Question 9

A ________ is the way consumers perceive an actual or potential product.

A) product idea
B) product concept
C) product image
D) test market
E) concept test

Question 10

A detailed version of a new idea stated in meaningful customer terms is called a ________.

A) product idea
B) product concept
C) product image
D) product proposal
E) product movement

Question 11

The purpose of idea generation is to create a ________ number of ideas.The purpose of succeeding stages is to ________ that number.

A) small number; reduce
B) small number; increase
C) large number; increase
D) large number; reduce
E) limited number; sustain

Question 12

With what groups do firms conduct concept testing for new products?

A) suppliers
B) employees
C) target consumers
D) manufacturers
E) competitors

Question 13

Your company decides to use only internal sources for developing new-product ideas.Which of the following would NOT be consulted?

A) executives and professionals
B) company records and data
C) intrapreneurial programs
D) suppliers
E) salespeople

Question 14

New-product development starts with ________.

A) idea generation
B) idea screening
C) concept development
D) concept testing
E) test marketing

Question 15

Which of the following is the practice of inviting broad communities of customers,employees,independent researchers,and members of the public into the new-product innovation process?

A) brainstorming
B) idea screening
C) crowdsourcing
D) outsourcing
E) concept testing

Question 16

What are the two ways that a company can obtain new products?

A) line extension and brand management
B) internal development and brand management
C) new-product development and acquisition
D) service development and product extension
E) market mix modification and research and development

Question 17

Product improvements,product modifications,and original products can all be classified as ________.

A) pioneer products
B) new products
C) product strategies
D) product extensions
E) test products

Question 18

The owners of Noel Gifts have just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs.The owners will begin the first idea-reducing stage,called ________,to arrive at a realistic number to adopt.

A) business analysis
B) idea generation
C) concept testing
D) idea screening
E) concept development

Question 19

Executives,manufacturing employees,and salespeople are all examples of ________.

A) external sources for new-product ideas
B) internal sources for new-product ideas
C) core members of innovation management systems
D) research and development team members
E) test marketers

Question 20

Which of the following is NOT a potential reason for a new product to fail?

A) an underestimated market size
B) a poorly designed product
C) an incorrectly positioned product
D) higher than anticipated costs of product development
E) ineffective advertising

Question 21

Once the product or service passes the business analysis test,it moves into what stage?

A) concept development
B) product development
C) market testing
D) strategy development
E) product proposal

Question 22

The third part of the marketing strategy statement includes all of the following EXCEPT ________.

A) long-run sales
B) profit goals
C) marketing mix strategies
D) short-run sales
E) A and C

Question 23

In the ________ stage of new-product development,products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.

A) business analysis
B) idea generation
C) concept development and testing
D) product development
E) marketing mix

Question 24

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

A) how to develop a market strategy
B) which market to compete in
C) whether to launch the new product
D) how to compete in the market
E) how long to compete in the market

Question 25

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released.Sales must be estimated before costs can be estimated.Which of the following did your text recommend for forecasting sales?

A) conducting surveys of competitors
B) considering the history of market opinions
C) considering the sales history of similar products and conducting surveys of market opinions
D) applying the PLC concept
E) none of the above

Question 26

The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales,profits,and ________.

A) market share
B) product longevity
C) secondary markets
D) promotional mixes
E) life-cycle duration

Question 27

In a ________,new products and marketing tactics are tested online in a virtual shopping environment.

A) controlled test market
B) simulated test market
C) standard test market
D) random test market
E) single-city test market

Question 28

Under what circumstances might it be wise for a company to do little or no test marketing?

A) when a new product requires a major investment
B) when management is not sure of the product
C) when management is not sure of the marketing program
D) when the product has no substitutes and is new in its category
E) when the costs of developing and introducing the product are low

Question 29

Asian Net Communications is concerned about test marketing its new device.Which of the following is NOT a disadvantage of test marketing that would likely concern Asian Net Communications?

A) Test marketing costs can be high.
B) It can take a lot of time to test market.
C) Test marketing allows time for competitors to spy and gain advantages.
D) People who are surveyed tend to tell less than the truth.
E) Test marketing does not guarantee success.

Question 30

Which of the following costs is most likely associated with the commercialization stage of new-product development?

A) building or renting a manufacturing facility
B) paying groups of target customers for product feedback
C) determining the product's planned price, distribution, and marketing budget
D) developing a prototype of the product
E) identifying target markets

Question 31

In a ________,new products and marketing tactics are tested among specifically identified groups of customers and stores.

A) controlled test market
B) simulated test market
C) standard test market
D) random test market
E) single-city test market

Question 32

The second part of the marketing strategy statement outlines the product's planned price,distribution,and ________ for the first year.

A) advertising
B) promotional mix
C) marketing budget
D) positioning
E) target market

Question 33

Marketers are also using online simulated marketing technologies to reduce the costs of ______________ and speed up the process.

A) test marketing
B) focus group surveys
C) commercialization
D) post-testing
E) business analysis

Question 34

Many marketers are now using new interactive technologies such as P&G's online virtual convenience store,to reduce the cost of ________.

A) concept development
B) concept testing
C) commercialization
D) product development
E) test marketing

Question 35

For some ________,a simple description consisting of a word or picture might be sufficient.

A) concept tests
B) test markets
C) marketing strategies
D) product developments
E) business analyses

Question 36

Introducing a new product into the market is called ________.

A) test marketing
B) new product development
C) experimenting
D) commercialization
E) marketing development

Question 37

Once managers of The Grecian Urn have decided on their product concept and marketing strategy,they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.

A) business feasibility
B) feasibility study
C) business analysis
D) product acceptance
E) concept testing

Question 38

During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

A) concept testing
B) marketing strategy development
C) business analysis
D) product development
E) test marketing

Question 39

A review of the sales,costs,and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

A) business feasibility plan
B) marketing strategy development
C) business analysis
D) product acceptance
E) proposal

Question 40

After concept testing,a firm would engage in which stage in developing and marketing a new product?

A) idea screening
B) marketing strategy development
C) business analysis
D) product development
E) test marketing

Question 41

The search for new-product ideas should be ________ rather than haphazard.

A) intermittent
B) systematic
C) segmented
D) strategically planned
E) rare

Question 42

The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following goals?

A) save time and eliminate errors
B) save time and increase effectiveness
C) increase effectiveness and employee satisfaction
D) speed product to market and reduce costs
E) B and D

Question 43

________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

A) Team-based product development
B) Simultaneous product development
C) Sequential product development
D) Product life-cycle analysis
E) Micromarketing

Question 44

In order to get their new products to market more quickly,many companies are adopting a faster,team-oriented approach called ________.

A) simulated new-product development
B) sequential product development
C) team-based new-product development
D) phased-in new-product development
E) market development

Question 45

Which stage in the PLC is characterized by rapid market acceptance and increasing sales?

A) introduction
B) maturity
C) growth
D) decline
E) development

Question 46

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

A) promotion or repositioning
B) concept testing
C) business analysis
D) innovation management
E) customer-centered product development

Question 47

Increasing profits will most likely occur at which stage of the PLC?

A) introduction
B) maturity
C) growth
D) decline
E) product development

Question 48

At Candy Empire,a large regional chain of candy stores,employees from marketing,design,production,and finance work in a cross-functional group to save time and money in the new-product development process.Candy Empire uses a(n)________ approach.

A) customer-centered new-product development
B) sequential new-product development
C) team-based new-product development
D) innovation management system
E) consumer composite

Question 49

All of the following are stages in the PLC EXCEPT ________.

A) introduction
B) growth
C) maturity
D) adoption
E) decline

Question 50

Sherri's Exclusives sells currently accepted and popular clothing items in given fields.What does she stock in her store?

A) style
B) fashion
C) fads
D) exclusives
E) services

Question 51

Which stage of the typical consumer product life cycle is out of order below?

A) product development
B) introduction
C) maturity
D) growth
E) decline

Question 52

All of the following are accurate descriptions of a style EXCEPT which one?

A) Style products appear in home, clothing, and art.
B) Once a style is invented, it may last for generations.
C) A style has a cycle showing several periods of renewed interest.
D) Styles last only a short time and tend to attract only a limited following.
E) Styles are basic and distinctive modes of expression.

Question 53

________ is the product life cycle period when sales fall off and profits drop.

A) Introduction
B) Growth
C) Maturity
D) Decline
E) Development

Question 54

Following the decision to "time" the introduction of the new product,a company must decide ________ to launch the new product.

A) where
B) how
C) to what degree
D) why
E) all of the above

Question 55

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture,and it ________.

A) clearly assigns responsibility for the process
B) yields a larger number of new-product ideas
C) guarantees successful products
D) frees up senior management time
E) requires less budget support

Question 56

Which of the following is a disadvantage of a team-based approach to new-product development?

A) It takes longer to get the right products to market.
B) The development effort is not as effective because of team members' lack of expertise.
C) Levels of risk can be more easily controlled.
D) Organizational confusion and tension can affect the process.
E) The process does not work with the shorter life cycles of many of today's products.

Question 57

Which of the following CANNOT be described using the PLC concept?

A) product class
B) product form
C) product image
D) brand
E) styles

Question 58

A company getting ready to launch a new product must make several decisions.The company must first decide on ________.

A) whether to launch the product in a single location
B) whether to launch the product in a region
C) whether to launch the product into full national distribution
D) when to time the new product introduction
E) when to develop a planned market rollout

Question 59

Which type of new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

A) concept testing
B) new-product development
C) customer-centered new-product development
D) sequential product development
E) team-based new-product development

Question 60

Using a ________,a company launches a product in a few regional markets and then expands based on how successful the product is.

A) simulated market
B) controlled market
C) concentrated market
D) market rollout
E) market blitz

Question 61

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

A) growth
B) product development
C) maturity
D) introduction
E) adoption

Question 62

Most products in the marketplace are in the ________ stage of the product life cycle.

A) growth
B) decline
C) maturity
D) introduction
E) development

Question 63

Which of the following is a product concept?

A) a battery-powered all-electric car
B) a pocket-size digital music player
C) an energy efficient humidifier
D) a thin, lightweight laptop with extended battery life appealing to students and young professionals who want access to their computer anywhere, anytime
E) a high-tech, stylish running shoe

Question 64

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC.Which of the following should NOT be done in the identification process?

A) regularly reviewing sales
B) regularly reviewing market share
C) regularly reviewing costs
D) regularly reviewing management's pet projects
E) regularly reviewing profit trends

Question 65

The advantages of standardizing an international product include all of the following EXCEPT ________.

A) the development of a consistent image
B) lower product design costs
C) the adaptation of products to different markets
D) decreased manufacturing costs
E) lower marketing costs

Question 66

Which of the following best represents the options a company has when a product is declining?

A) maintain or harvest the product
B) harvest or drop the product
C) maintain, harvest, or drop the product
D) maintain or pioneer the product
E) pioneer, harvest, or maintain the product

Question 67

The PLC concept can be applied by marketers as a useful framework for describing how ________.

A) to forecast product performance
B) to develop marketing strategies
C) products and markets work
D) concept testing is conducted
E) product ideas are developed

Question 68

Which stage in the PLC normally lasts longest and poses strong challenges to the marketing managers?

A) growth
B) decline
C) maturity
D) phase-in
E) adoption

Question 69

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively.They came up with an idea for a pair of blurry goggles.They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated.The first crude pair of blurry goggles developed by the entrepreneurs to show to prospective customers was ________.

A) a prototype
B) a component part
C) a synergistic model
D) a product image
E) a product idea

Question 70

Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?

A) to analyze the product life cycle
B) to test new-product concepts
C) to get new-product ideas
D) to test market new products
E) to implement a team-based new-product development approach

Question 71

Which of the following would lead to greater competition in the maturity stage of the PLC?

A) overcapacity
B) market pioneers
C) poor management
D) inadequate promotion
E) diminishing budgets

Question 72

________ occurred when Elton Neo's fascination with the fruits of Brazil led him to develop juices with new fruit flavors by Bosa Nova for the Asian market.

A) Idea screening
B) Idea generation
C) Concept testing
D) Product development
E) Product manufacturing

Question 73

Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n)________ of the product's life cycle.

A) mirror image; cause
B) cause; result
C) result; mirror image
D) beginning; end
E) purpose; effect

Question 74

Manufacturers must comply with specific laws regarding ________.

A) profit margins
B) product quality and safety
C) product harvesting
D) distribution channel length
E) product life cycles

Question 75

Joann Fabrics Pte Ltd has just created a new combination of colors and fabric types.The firm wants to be sure of the way consumers think about its new product.The firm is concerned with the product ________.

A) idea
B) screening
C) image
D) commercialization
E) presentation

Question 76

Because of ________,a company cannot make its product illegally similar to a competitor's already established product.

A) anti-monopoly laws
B) patent laws
C) the Consumer Product Safety Act
D) product warranties
E) product liability

Question 77

In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

A) growth
B) decline
C) maturity
D) product development
E) adoption

Question 78

Because names,labels,and colors may not easily translate from one country to another,international marketers must carefully assess ________.

A) product standardization
B) market rollout
C) the product life cycle
D) packaging
E) styles

Question 79

When a product is in the maturity stage,the company should consider ________.

A) harvesting the product
B) modifying the product, market, or marketing mix
C) divesting the product
D) liquidating the product
E) dropping the product

Question 80

Why do profits increase during the growth stage of the PLC?

A) Promotion costs are spread over a large volume.
B) Unit manufacturing costs fall.
C) Competition has not yet taken sales away.
D) All of the above.
E) None of the above.