Deck 8: New Product Development

Question 1

The product life cycle is divided into four stages of equal length.

Answer 1

False

Question 2

In the introduction stage of the product life cycle there is typically minimal competition.

Answer 2

True

Question 3

Once a product has reached its maturity stage, it often needs an injection of newness to focus the market on the product and to provide a competitive advantage.This strategy is called repositioning.

Answer 3

True

Question 4

Product innovation is a priority in the maturity stage of the product life cycle.

Question 5

Some children's toys enjoy a period of rapid growth and an equally rapid decline.These are an example of fad products.

Question 6

The maturity stage of a product life cycle is characterized by a slowdown of growth in both sales and profit areas.

Question 7

A product enters the decline stage when products become obsolete due to technological innovation or changes in consumer needs.

Question 8

Radical innovations involve the introduction of a product that is entirely new to the market.

Question 9

A Nokia cellphone is an example of a high-learning product because it requires educating consumers about its use and benefits.

Question 10

The product life cycle for a fad product is cyclical.

Question 11

In the product life cycle, harvesting occurs when a product is discontinued.

Question 12

A low-learning product is one where there is an extended introductory period due to the significant efforts required to educate customers.

Question 13

In the growth stage, most marketers focus on product differentiation.

Question 14

Fashion products have a short product life cycle, going from introduction to decline, only to resurface a few years later.

Question 15

Continuous innovations refer to new products that require new learning or behavior by consumers.

Question 16

Access to distribution with big box retailers is a typical sign of products in the growth stage.

Question 17

Marketers at Polka Ltd.are using the price skimming strategy.This means that they are using low prices to enter the market.

Question 18

In the maturity stage of the product life cycle, many products will have falling profits.

Question 19

Marketers for Stoic televisions use promotional tactics to attract consumers and boost purchases.The product is most likely in its growth stage.

Question 20

Cheerios added a new flavour to its already established Cheerios product line.This is an example of greenwashing.

Question 21

Fragrances & Flowers, a perfume brand, introduces fruit-fragrance perfumes for a limited period of time in Ontario.This is known as test marketing.

Question 22

The adoption curve shows the stages of the product life cycle.

Question 23

The stage of the product life cycle when a product is first presented to its intended target market is called the _____ stage.

A)growth
B)maturity
C)early maturity
D)introduction

Question 24

Which of the following marketing objectives should a product in the introduction stage of the product life cycle have?

A)to gain awareness and stimulate trial
B)to stress differentiation
C)to maintain brand loyalty
D)to gain as much distribution as possible

Question 25

Many marketers use the concept of _____ to manage a product from its initial launch through to its eventual decline.

A)product commercialization
B)the marketing mix
C)the product growth cycle
D)the product life cycle

Question 26

A research group is attempting to reduce its array of ideas to a manageable list of promising concepts.The research group is in the screening and evaluation stage of new product development process.

Question 27

Jive, a company manufacturing cosmetics with 100 percent natural ingredients, decides to launch a special range of products for the New Year.Marketers first conduct external evaluations of the new products, addressing issues such as customer perception, who would use them, and how they would be used.This range of products will be available only for a limited period in a defined geographic area.Marketers of the products aim to determine whether consumers will actually buy the products.Once the products are readily accepted in the market, Jive aims to bring the products to market with full-scale production, sales, and marketing support. Marketers of Jive will initially make the product range available only for a limited period in a defined geographical area.This approach is called _____.

A)product development
B)commercialization
C)idea generation
D)test marketing

Question 28

Business analysis involves determining financial projections on bringing a new product to the market.

Question 29

Cybrex is in the business of making software packages for tax purposes.It is in the _____ stage if its marketing objective is to create consumer awareness and stimulate trial for its new software packages.

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

Question 30

Which of the following is true of a product life cycle?

A)Products in the online environment do not follow the product life cycle approach.
B)Product life cycle analyzes the reasons for a product's decline and failure in the market.
C)Marketers use the product life cycle to manage a product from its launch to its decline.
D)Product life cycle begins with the maturity and growth of a product in the market.

Question 31

Jive, a company manufacturing cosmetics with 100 percent natural ingredients, decides to launch a special range of products for the New Year.Marketers first conduct external evaluations of the new products, addressing issues such as customer perception, who would use them, and how they would be used.This range of products will be available only for a limited period in a defined geographic area.Marketers of the products aim to determine whether consumers will actually buy the products.Once the products are readily accepted in the market, Jive aims to bring the products to market with full-scale production, sales, and marketing support. The external evaluations that the marketers at Jive conducted to understand customer perception and customer use of the product range is called _____.

A)business analysis
B)a concept test
C)test marketing
D)commercialization

Question 32

The first group to purchase new products are the early adopters.

Question 33

Developing and launching new products can be expensive and carries a high risk of failure.

Question 34

Jive, a company manufacturing cosmetics with 100 percent natural ingredients, decides to launch a special range of products for the New Year.Marketers first conduct external evaluations of the new products, addressing issues such as customer perception, who would use them, and how they would be used.This range of products will be available only for a limited period in a defined geographic area.Marketers of the products aim to determine whether consumers will actually buy the products.Once the products are readily accepted in the market, Jive aims to bring the products to market with full-scale production, sales, and marketing support. Jive eventually aims to bring the new product to market with full-scale production, sales, and marketing support.This step is known as _____.

A)adoption curve
B)test marketing
C)commercialization
D)concept test

Question 35

Researchers at Mayflower Ltd.are conducting external evaluations of a new product idea.These evaluations are called business analyses.

Question 36

Commercialization is the step when a new product is brought to market with full-scale production, sales, and marketing support.

Question 37

The stage of the new product development process called _____ attempts to reduce the array of brainstorming ideas down to a manageable list of promising concepts.

A)screening and evaluation
B)idea generation
C)strategy
D)development

Question 38

Screening and Evaluation are the first step in the new product development process.

Question 39

Magma Laundry Detergent is experiencing a slow growth in its sales, and its profits are minimal.The company is most likely in the _____ stage of the product life cycle.

A)growth
B)introduction
C)maturity
D)commercialization

Question 40

The concept that describes the stages a new product goes through in the marketplace-introduction, growth, maturity, and decline-is called _____.

A)the retail life cycle
B)the product life cycle
C)the marketing mix
D)the product growth cycle

Question 41

A _____ product is one where there is an extended introductory period due to the significant efforts required to educate customers on the usage and benefits of the product.

A)high-learning
B)low-learning
C)line extension
D)concept

Question 42

Which of the following is true of the growth stage of the product life cycle?

A)During this stage, profits are minimal and sales grow slowly.
B)This stage is characterized by little competition and a lack of consumer awareness about the product.
C)It is characterized by a slowdown of increase in both the sales and profit areas.
D)This stage sees an increase in competition and a rapid rise in sales and profits.

Question 43

Which of the following is a characteristic of the maturity stage of the product life cycle?

A)advertising emphasis switches to primary demand
B)growing proportion of initial purchasers to repeat purchasers
C)rapid rise in sales and profits
D)competitors are well-established

Question 44

A company realizes that one of its products has become obsolete in the market since its sales and profits have consistently declined.Which of the following strategies can the company adopt to deal with its declining product?

A)line extension
B)deletion
C)penetration pricing
D)price skimming

Question 45

When the Nokia cellphone was launched in the market, it required little education on behalf of consumers.Consumers trusted the brand and, within a few days, Nokia had sold more than a million units.This is an example of a _____ product.

A)fashion
B)high-learning
C)concept
D)low-learning

Question 46

Freshmornings is one of the breakfast cereals produced by Kenny's Ltd.Marketers at the company analyze that the product is experiencing a slowdown of growth in both sales and profits.Within a year, due to changes in consumer needs, the product sales have consistently decreased.They decide to keep the product but reduce the marketing support in an attempt to reap some minor profits at this stage in the life cycle. Which strategy were the marketers at Kenny's adopting when they decided to reduce the marketing support for Freshmornings to reap some minor profits?

A)price moderation
B)price skimming
C)harvesting
D)line extension

Question 47

The _____ stage occurs when a product becomes obsolete due to technological innovation or changes in consumer needs.

A)maturity
B)decline
C)growth
D)commercialization

Question 48

Which of the following stages of a product life cycle is characterized by a slowdown of growth in both sales and profit areas?

A)decline stage
B)growth stage
C)introduction stage
D)maturity stage

Question 49

_____ is when a product is discontinued.

A)Harvesting
B)Revamping
C)Product skimming
D)Deletion

Question 50

The Swiffer Sweeper required consumers to understand the new product, how to use it, and what to do with their old brooms and mops.This is an example of a _____ product.

A)low-learning
B)concept
C)fad
D)high-learning

Question 51

Market researchers at Fey Brothers Ltd.analyze and conclude that the company's product is experiencing a slowdown in both sales and profits.The researchers cite well-established competitors and fewer new consumers in the market as the main reasons.At which stage of the product life cycle is the company's product?

A)growth stage
B)maturity stage
C)introduction stage
D)decline stage

Question 52

Which of the following is true of a high-learning product?

A)It refers to a product with a very short product life cycle.
B)It refers to a product that experiences immediate rapid growth, followed by a rapid decline.
C)It refers to a product with an extended introductory period due to efforts required to educate customers.
D)It refers to a product that has a short introductory stage, where the benefits of purchasing are self-evident.

Question 53

_____ involves determining financial projections on bringing a new product to market and selling it in the future.

A)Concept test
B)Development
C)Screening and evaluation
D)Business analysis

Question 54

A _____ product has a short introductory stage in the product life cycle.In these instances, the benefits of purchasing these products are self-evident and very little learning is required.

A)concept
B)high-learning
C)fashion
D)low-learning

Question 55

Klen, a cellphone manufacturer, realizes that one of its products is experiencing a consistent decline in sales and profits.The company, however, decides to keep the product, but reduces marketing support in an attempt to reap minor profits.This strategy is called _____.

A)line extension
B)radical innovation
C)harvesting
D)commercialization

Question 56

Freshmornings is one of the breakfast cereals produced by Kenny's Ltd.Marketers at the company analyze that the product is experiencing a slowdown of growth in both sales and profits.Within a year, due to changes in consumer needs, the product sales have consistently decreased.They decide to keep the product but reduce the marketing support in an attempt to reap some minor profits at this stage in the life cycle. Which stage of the product life cycle did Freshmornings enter with consistently low sales due to changes in consumer needs?

A)decline stage
B)introduction stage
C)growth stage
D)maturity stage

Question 57

At which of the following stages of product life cycle does a product experience an increase in competition and a rapid rise in sales and profits?

A)growth stage
B)maturity stage
C)decline stage
D)introductory stage

Question 58

The _____ is generally the longest stage in the product life cycle with marketers using short-term promotional tactics such as consumer promotions.

A)maturity stage
B)growth stage
C)decline stage
D)introduction stage

Question 59

Marketers at Camy Cosmetics Ltd.launch short-term promotional tactics to deal with the slowdown of growth in sales and profits of their products, and concentrate on product innovations to be more competitive and relevant to consumer needs.Which stage of the product life cycle are Camy's products most likely at?

A)decline stage
B)maturity stage
C)introduction stage
D)growth stage

Question 60

Freshmornings is one of the breakfast cereals produced by Kenny's Ltd.Marketers at the company analyze that the product is experiencing a slowdown of growth in both sales and profits.Within a year, due to changes in consumer needs, the product sales have consistently decreased.They decide to keep the product but reduce the marketing support in an attempt to reap some minor profits at this stage in the life cycle. At which stage of the product life cycle was Freshmornings when marketers realized that there was a slowdown of growth in both sales and profits?

A)growth stage
B)decline stage
C)introduction stage
D)maturity stage

Question 61

_____ is the term used when a new item is added to an already existing product line.

A)Line extension
B)Harvesting
C)Greenwashing
D)Product skimming

Question 62

FunNoodles has added a new range of products to its Fun Instant Noodles and Fun Rice Noodles range.FunNoodles adopted this approach to stay competitive in the market amidst new brands.FunNoodles's brand and its quality were well-established, and hence the products did not require much education on behalf of consumers.Within a month of launching the new range of products, FunNoodles had sold about half a million units. Which of the following approaches has FunNoodles adopted to stay competitive in the market and address new trends?

A)targeting new consumers through new marketing approaches
B)revitalizing a product with product improvements
C)introducing a new product
D)targeting current users with extended usage strategies

Question 63

FunNoodles has added a new range of products to its Fun Instant Noodles and Fun Rice Noodles range.FunNoodles adopted this approach to stay competitive in the market amidst new brands.FunNoodles's brand and its quality were well-established, and hence the products did not require much education on behalf of consumers.Within a month of launching the new range of products, FunNoodles had sold about half a million units. FunNoodles's new range of products required little awareness on behalf of customers and were readily accepted by them.This is an example of a _____.

A)high-learning product
B)fashion product
C)low-learning product
D)concept product

Question 64

Which of the following approaches do marketers adopt to ensure that products remain competitive and address new trends in the market?

A)targeting new consumers through new marketing approaches
B)revitalizing a product with product improvements
C)introducing a new product
D)finding new uses for a product

Question 65

Cell phone manufacturers frequently add new products to ensure that these products remain fresh and relevant.This approach is called:

A)targeting current users with extended usage strategies.
B)revitalizing a product with product improvements.
C)introducing a new product.
D)repositioning a product.

Question 66

When FirstChoice, a manufacturer of ready-to-eat frozen foods, reached its maturity stage, it revitalized its brand with new products to provide it with a renewed competitive advantage and revitalize its brand image as a modern and healthy food provider.Which of the following approaches has FirstChoice adopted?

A)targeting current users with extended usage strategies
B)repositioning a product
C)revitalizing a product with product improvements
D)finding new uses for a product

Question 67

Which of the following is true of a fashion product?

A)It refers to a product that has a short and cyclical product life cycle.
B)It refers to a product with an extended introductory period due to efforts required to educate customers.
C)It refers to a product that has a short introductory stage.
D)It refers to a product that experiences immediate rapid growth, followed by an equally rapid decline.

Question 68

Which of the following products experiences a relatively short and cyclical life cycle, going from introduction to decline within two years, only to resurface again after a few years?

A)low-learning products
B)fad products
C)high-learning products
D)fashion products

Question 69

Stylo, a jeans manufacturing company, encourages its customers to wear its jeans not only as casual wear but also as formal wear or as capris by folding the hem line.This is an example of:

A)repositioning a product.
B)increase a product's use.
C)revitalizing a product with product improvements.
D)targeting new consumers through new marketing approaches.

Question 70

FunNoodles has added a new range of products to its Fun Instant Noodles and Fun Rice Noodles range.FunNoodles adopted this approach to stay competitive in the market amidst new brands.FunNoodles's brand and its quality were well-established, and hence the products did not require much education on behalf of consumers.Within a month of launching the new range of products, FunNoodles had sold about half a million units. FunNoodles added a new range of products to its existing one.This is called _____.

A)harvesting
B)greenwashing
C)test marketing
D)line extension

Question 71

Which of the following approaches to extend the product life cycle would most likely be used by marketers for products with strong brand equity and a loyal consumer base?

A)revitalizing the product with product improvements
B)targeting new consumers through new marketing approaches
C)repositioning the product
D)increasing a product's use

Question 72

Which of the following products experiences an immediate rapid growth, followed by an equally rapid decline?

A)high-learning product
B)concept product
C)fashion product
D)fad product

Question 73

Apple has had much success by introducing _________

A)fads
B)line extensions
C)improvements
D)new products

Question 74

Which of the following is true of a low-learning product?

A)It refers to a product that has a short introductory stage, where the benefits of purchasing are self-evident.
B)It refers to a product with a very short product life cycle.
C)It refers to a product that has a short and cyclical product life cycle.
D)It refers to a product with an extended introductory period due to efforts required to educate customers.

Question 75

MobileEasy launched MobileEats, a new product, to its line of original MobileCookies.Which of the following approaches did the company adopt to extend the product life cycle of MobileEasy?

A)revitalizing a product with product improvements
B)repositioning a product
C)introducing a new product
D)targeting current users with extended usage strategies

Question 76

Kraft has created a gourmet salad dressing line.This is an example of _____.

A)fad
B)repositioning
C)line extension
D)minor innovation

Question 77

_____ innovations refer to small product modifications that require no adjustments on behalf of the consumer.

A)Radical
B)Minor
C)Transformational
D)Continuous

Question 78

Which of the following would be an example of a fad product?

A)the Apple iPad
B)DVD technology
C)Tickle Me Elmo toy
D)women's stilettoes

Question 79

A _____ product refers to a product with a very short product life cycle with no real maturity stage at all.

A)fashion
B)fad
C)high-learning
D)low-learning

Question 80

A product is revised and new features are added in order to focus the market on the product and to provide it with a renewed competitive advantage.This approach to extend the product life cycle is called:

A)harvesting a product.
B)finding new uses for a product.
C)targeting current users with extended usage strategies.
D)repositioning a product.