Deck 8: Product Strategy and New Product Development

Question 1

A go-to-market mistake happens when a good idea is prematurely eliminated during the screening process.

Answer 1

FALSE

Question 2

The targeted consumers during the maturing phase of a product life cycle are innovators and early adopters.

Answer 2

FALSE

Question 3

Trial purchase is the focus of a product launch marketing plan.

Answer 3

TRUE

Question 4

Product life cycle (PLC) includes four basic stages: introduction, growth, maturity, and delay.

Question 5

Reliability is a product's ability to deliver on features and performance characteristics promised in marketing communications.

Question 6

The product life cycle (PLC) generally refers to a product item rather than a product category.

Question 7

A stock-keeping unit (SKU) is a unique identification number used to track a product in the consumer's home.

Question 8

The business case analysis is an overall evaluation of a product and usually assesses the product's probability of success.

Question 9

Luxury cars such as the Chevrolet Corvette are available with tires that enable a driver to continue driving even after the tire has been damaged. This is an example of Corvette using style as a product discriminator.

Question 10

The essential component in delivering value is the product price.

Question 11

The three major activities in new-product development are to (1) generate new ideas, (2) screen and evaluate ideas, and (3) define and test product concept.

Question 12

The number of products purchased by the same customer is called repeat purchases.

Question 13

One of the disadvantages of using style as a product discriminator is that consumer tastes change over time and what is considered stylish can quickly lose its appeal.

Question 14

An individual moves through five stages before adopting a product, including awareness, notice, trial, testing, and feedback.

Question 15

When the product is wrong, skilled marketing communication and pricing sophistication can correct the problems.

Question 16

Different target markets will view the same product in completely different ways.

Question 17

Barbara's Bakery sells custom cakes, cookies, and other pastries. These represent Barbara's Bakery's product line.

Question 18

Desktop computers, cell phones, and tablet computers are examples of new-to-the-world products considered disruptive innovations.

Question 19

The essential benefit is the fundamental need met by a product.

Question 20

More than any other discriminator, style has the disadvantage of being difficult to copy.

Question 21

Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are called ________.

A) physical aspects
B) core competencies
C) monetary characteristics
D) intangible characteristics
E) essential benefits

Question 22

________ can be defined as anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, even ideas.

A) Utility
B) Strategy
C) Exchange
D) Product
E) Market

Question 23

The failure of Apple Newton, the first PDA, highlights the fact that ________.

A) the essential benefit is not the fundamental need met by a product
B) people look for products that are technically superior
C) the best product technically is not always the most successful product
D) the essential component in delivering value is product pricing
E) intense marketing communications can even make a wrong product successful

Question 24

Late majority are product followers who are price-sensitive and risk-averse.

Question 25

Everyone in a target market falls into one of five groups based on their willingness to try the innovation, including innovators, early adopters, early majority, late majority, and laggards.

Question 26

Unsought goods are characterized as being the kinds of goods that consumers ________.

A) purchase solely for business purposes
B) do more research on and compare across product dimensions such as color, size, features, and price
C) frequently purchase and have little interest in seeking new information about
D) would rather not purchase at all
E) purchase solely for personal purposes

Question 27

An important issue for consumers is conformance, which is the product's ability to ________.

A) deliver on features and performance characteristics promised in marketing communications
B) conform to the standards set by the federal guidelines
C) deliver value in the form of product quality
D) get the manufacturing aligned using quality processes
E) deliver additional features, designs, and innovations that exceed customer expectations

Question 28

Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with ________.

A) what the competition offers
B) the ability to manufacture the feature in a timely way
C) what customers will pay
D) the configurations that make a positive brand look stylish
E) the resources available for production

Question 29

When a company can show that its product's projected lifetime is high under certain operating conditions, it is using ________ as a product discriminator.

A) style
B) performance quality
C) form
D) durability
E) conformance quality

Question 30

More than any other product discriminator, style offers the advantage to a company of being ________.

A) a low-cost differentiator
B) easy to do consistently over time
C) able to ensure high quality
D) difficult for competition to copy
E) associated with high repairability

Question 31

________ goods are unique purchases made based on a defining characteristic for the consumer, which might be a real or perceived product feature, such as Apple iPhone's easy user interface.

A) Shopping
B) Convenience
C) Specialty
D) Unsought
E) Capital

Question 32

In the context of product classifications, tangibility refers to the ________.

A) service delivered with a product
B) ability to create a combination of product and service
C) physical aspects of a product
D) value of a product in the market
E) fundamental need met by a product

Question 33

Clothes, furniture, and major appliances such as refrigerators and dishwashers are examples of ________ goods.

A) convenience
B) specialty
C) unsought
D) capital
E) shopping

Question 34

In the context of product characteristics, companies translate the essential benefit into physical, tangible elements known as the ________ product.

A) augmented
B) core
C) deviated
D) differentiated
E) contrasting

Question 35

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information and rely heavily on prior purchase behavior are called ________ goods.

A) shopping
B) convenience
C) specialty
D) unsought
E) consenting

Question 36

The primary function of marketing and the entire organization, in a broader context, is to ________.

A) increase employee turnover
B) offer highly customized products
C) deliver value to the customer
D) focus on short-term benefits
E) eliminate barriers to market entry

Question 37

A product ________ is a group of products linked through usage, customer profile, price points, and distribution channels.

A) form
B) mix
C) line
D) cycle
E) core

Question 38

Early adopters are product watchers who seek out new products but are price-sensitive.

Question 39

When companies provide too few products in a product line, they run the risk of ________.

A) having inefficiencies in production
B) increasing barriers to market entry
C) delivering products that can be easily copied
D) missing important market opportunities
E) being differentiated from competitors

Question 40

The ________ product extends the core product to include additional features, designs, and innovations that exceed customer expectations.

A) differentiated
B) deviated
C) amended
D) specialized
E) enhanced

Question 41

Which of the following characterizes the decline stage of the product life cycle?

A) New and improved models are sold at high price points.
B) Attractive price points are set to gain market share and discourage competitors.
C) Established competition makes price pressures more pronounced, forcing lower-price strategy if product not well-differentiated.
D) Significant price pressures come from competitors and consumers.
E) Existing models or earlier generations move down in price.

Question 42

Combining all the products offered by a company is called the product ________.

A) line
B) mix
C) profile
D) standardization
E) function

Question 43

When new-to-the-world products are better, faster versions of existing products that target, for the most part, existing customers, then these products are described as ________.

A) specialized goods
B) core products
C) convenience goods
D) sustaining innovations
E) disruptive innovations

Question 44

Products that are new-to-the-world create a fundamental change in the marketplace and are known as ________.

A) technological transformations
B) convenience goods
C) core products
D) disruptive innovations
E) enhanced products

Question 45

External sources of generating product ideas include ________.

A) employees from R&D
B) marketing executives
C) customer service representatives
D) customers
E) salespeople

Question 46

The introduction phase of the product life cycle for an industry is usually characterized by ________.

A) high profits
B) no profits
C) high sales
D) low marketing costs
E) low product development costs

Question 47

During the maturity phase of the product life cycle, ________.

A) sales grow, but at a rate lower than the growth stage
B) no growth in sales occurs
C) sales are low, typically with high failure rate
D) sales grow at an increasing rate in comparison to the growth stage
E) long-run drop in sales takes place

Question 48

The product life cycle (PLC) defines the life of a product in four basic stages, which include ________.

A) introduction, growth, maturity, and decline
B) awareness, interest, trial, and adoption
C) primary, secondary, advanced, and nominal
D) production, development, distribution, and enhancement
E) idea generation, creation, presentation, and promotion

Question 49

The essential marketing objective in the growth phase of the product life cycle (PLC) is to ________.

A) build trial of the product
B) build public relations for the product
C) build trial followed by loyalty
D) differentiate the product from those of new competitors
E) create market awareness for the product

Question 50

In the maturity phase of the product life cycle, the targeted consumers are ________.

A) laggards
B) majority adopters
C) late adopters
D) innovators
E) early adopters

Question 51

The most dramatic increase in revenue is most likely to occur in the ________ phase of the product life cycle.

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

Question 52

New-to-the-world products are products that ________.

A) have been available before but are recycled
B) are innovative but only slightly different than previous products
C) have not been available before their introduction to the market
D) are not disruptive to the marketplace
E) make existing products more desirable

Question 53

Informing and educating the target audience about the product's benefits and features is part of the communication strategy in the ________ phase of the product life cycle.

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

Question 54

The objective in the introduction phase of the product life cycle (PLC) is to ________.

A) differentiate the product from those of new competitors, promoting rapid expansion
B) transition the product from high growth to sales stability
C) build market awareness for the product leading to trial purchase
D) determine the future of the product
E) develop product development strategies

Question 55

During the decline phase of the product life cycle, ________.

A) promotion is focused on product awareness
B) companies boost customer service efforts to keep up with product
C) channel members cease to support the product
D) the product reaches its maximum distribution
E) promotion emphasizes brand advertising and comparative ads

Question 56

Once a product has been developed and is on the market, the company can extend the product by ________.

A) creating additions to existing product lines
B) creating new names for the same products
C) developing persuasive advertisements
D) upgrading or modifying existing products
E) creating a fundamental change in the marketplace

Question 57

Customers view new products much differently than companies view them. Customers care only if a product is ________.

A) new to their retail store
B) new to them
C) offered through a new outlet
D) offered online instead of at a brick-and-mortar store
E) repositioned to target new markets

Question 58

When products like cell phones are promoted as a safety device for working women and moms, this demonstrates that one way to find "new" markets is to ________.

A) develop product penetration strategies
B) sell added benefits to the existing customers
C) reposition the existing products targeting different customer segments
D) alter the cost so more people can afford the product
E) create advertisements targeting working women and moms

Question 59

In the ________ phase of the product life cycle (PLC), sales continue to increase but at a decreasing rate.

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

Question 60

Internal sources of generating product ideas include ________.

A) existing customers
B) distributers
C) company salespeople
D) retailers
E) wholesalers

Question 61

Market testing of a new product can take a long time, and this can result in ________.

A) competitors being able to develop marketing strategies to counter a product launch
B) the company losing the excitement of a new product
C) the product becoming obsolete by the time it reaches the target market
D) online guerrilla tactics by competitors that will disrupt the sales cycle of the product
E) customers forming negative opinions about the product

Question 62

An individual moves through stages before adopting a product. During the interest stage, consumers ________.

A) evaluate the product for trial purchase
B) purchase the product for the purpose of making a value decision
C) seek out added information about a product for further evaluation
D) feel, see, and touch the product
E) purchase the product with the intent of becoming a dependable user

Question 63

Which of the following is an overall evaluation of a product and usually assesses the product's probability of success?

A) business case analysis
B) portfolio review
C) trend prediction
D) situation analysis
E) SWOT analysis

Question 64

An individual moves through stages before adopting a product. During the awareness stage, consumers ________.

A) find they have a passion for the product
B) receive additional information and be motivated to seek out added information for further evaluation
C) know of the product, but have insufficient information to move forward through the adoption process
D) purchase the product for the purpose of making a value decision
E) purchase the product with the intent of becoming a dependable user

Question 65

________ is the focus of a product launch marketing plan, because if you can get consumers to use the product once, you can win them over with superior product design, features, and value.

A) Adoption
B) Trial purchase
C) Interest
D) Evaluation
E) Awareness

Question 66

An individual purchases a product for the purpose of making a value decision. He or she is in the ________ stage of the product adoption process. 

A) awareness
B) interest
C) trial
D) evaluation
E) adoption

Question 67

Estimating total demand is a function of three separate purchase situations, which are ________ purchases.

A) new, ideal, and impulse
B) new, repeat, and replacement
C) new, repeat, and impulse
D) new, impulse, and replacement
E) new, convenient, and impulse

Question 68

Many organizations are too small to have the resources for a national sales force to help discover new-product ideas. As a consequence, they often use ________ as a link between the customer and company.

A) distributors
B) parts manufacturers
C) logistics companies
D) server farms
E) suppliers

Question 69

New purchases of new products are called ________ purchases.

A) original
B) subliminal
C) replacement
D) trial
E) repeat

Question 70

The innovation diffusion process is how long it takes a product to move from ________.

A) introduction to growth
B) awareness to interest
C) trial to adoption
D) first purchase to last purchase
E) growth to maturity

Question 71

For products designed for business markets, market testing is ________.

A) identical to the testing in B2C market
B) smaller in scope and involves fewer individuals and companies
C) larger in scope and involves more individuals and companies
D) insignificant in the new-product development process
E) not conducted for sustainable innovations

Question 72

In the context of product testing, beta testing is designed to ________.

A) encourage customers to evaluate and provide feedback on a prototype
B) let engineers test a product's performance
C) give fake information to competitors about a new product
D) allow product specialists to check the quality of a product
E) clarify the basic operationalization of a product

Question 73

While screening and evaluating ideas, a go-to-market mistake happens when ________.

A) a good idea is prematurely eliminated during the screening process
B) a company fails to stop a bad product idea from moving into product development
C) a company uses only internal sources to generate product ideas
D) a company uses only external sources to generate product ideas
E) a good idea that involves high costs is implemented

Question 74

The first step in the new-product development process is to ________.

A) define the market opportunity
B) generate new-product ideas
C) define the product potential
D) develop the product
E) conduct business case analysis

Question 75

In the context of criteria used to prioritize product ideas, time to market refers to the time taken to ________.

A) create awareness about a product among new market segments
B) generate product ideas using internal forces
C) develop and get the product to market
D) get the product through the introduction stage to the growth stage
E) analyze market conditions to forecast sales

Question 76

The rate at which new products become accepted is known as the ________ process.

A) variance
B) sensitivity
C) adoption
D) steering
E) diffusion

Question 77

An individual moves through five stages before adopting a product. The five stages include all of the following EXCEPT ________.

A) awareness
B) interest
C) validation
D) evaluation
E) adoption

Question 78

During the evaluation stage of the product adoption process, consumers ________.

A) seek out information to further define the product
B) get to know of the product, but have insufficient information to move forward through the adoption process
C) purchase the product for the purpose of making a value decision
D) combine all information and assess the product for trial purchase
E) purchase the product with the intent of becoming a dependable user

Question 79

While screening and evaluating ideas, a stop-to-market mistake happens when ________.

A) a bad idea is allowed to make it to market
B) a company decides to market a product that has a fatal flaw
C) a good idea is pushed forward without knowing the ROI of its execution
D) a good idea is prematurely eliminated during the screening process
E) a company fails to stop a bad product idea from moving into product development

Question 80

Which of the following helps clarify the basic operationalization of a product during product testing, such as the physical characteristics and features?

A) alpha testing
B) beta testing
C) business case analysis
D) innovation diffusion process
E) concept testing