Question 1

Which of the following best characterizes the decline stage of product development?
A) rapid market acceptance
B) slow sales growth
C) sales and profits decline
D) high investment costs
E) increasing profits

Accepted Answer

The decline stage is characterized by declining sales and profits as the product loses market appeal and faces competition from newer products.

Question 2

Which of the following statements characterizes the introduction stage of the PLC?
A) There are increased marketing outlays.
B) Profits are nonexistent.
C) The company incurs minimal expenses.
D) The product achieves acceptance by most potential buyers.
E) Promotional expenditures are zero.

Accepted Answer

The answer of Which of the following statements characterizes the...

Question 3

Briefly describe the steps in the new product development process.

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Question 4

Explain concept testing.

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Question 5

The potential sales, costs, and profit projections are being determined for a new product idea at Art for Kids. Which of the following stages of the new product development process does this illustrate?

Accepted Answer

The answer of The potential sales, costs, and profit projections...

Question 6

What elements may help to create a product image?

Accepted Answer

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Question 7

How might a firm benefit from implementing an "intrapreneurial" program?

Accepted Answer

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Question 8

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?
A) introduction
B) maturity
C) growth
D) decline
E) product development

Accepted Answer

The growth stage is characterized by rapid market acceptance and increasing profits. During this stage, demand for the product increases and companies can grow market share with effective marketing and advertising strategies. Due to the high demand, profits also increase during this stage.

Question 9

Why might individual departments prefer sequential product development?

Accepted Answer

The answer of Why might individual departments prefer sequential product...

Question 10

________ is the product life cycle period when sales fall off and profits drop.
A) Introduction
B) Growth
C) Maturity
D) Decline
E) Product development

Accepted Answer

The decline stage is the final stage of the product life cycle, where sales and profits drop due to market saturation, outdated technology, or changing consumer preferences.

Question 11

What factors are assessed in test marketing?

Accepted Answer

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Question 12

Identify the major sources of external new product ideas and explain why these sources offer advantages over internal sources.

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Question 13

A marketer has selected a single city in which to conduct a test market. What can be concluded from this choice of a single-city test market?

Accepted Answer

The answer of A marketer has selected a single city...

Question 14

Define commercialization. Explain two important decisions the company must make during this stage.

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Question 15

A marketer has chosen a multiple-city test market. What can be concluded from this choice of a multiple-city test market?

Accepted Answer

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Question 16

What are the two advantages of an innovation management system for developing new products? Provide four strategies for a company to use to establish a successful system.

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Question 17

Why are competitors considered a good external idea source?

Accepted Answer

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Question 18

Differentiate between controlled test markets and simulated test markets.

Accepted Answer

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Question 19

Which of the following refers to the course that a product's sales and profits take over its lifetime?
A) total product process
B) service life
C) product mix
D) product life cycle
E) marketing mix

Accepted Answer

The product life cycle refers to the course that a product's sales and profits take over its lifetime. This cycle is typically broken down into several stages, including introduction, growth, maturity, and decline. By understanding where a product is in its life cycle, marketers can tailor their strategies to best fit the product's current stage and maximize its success.

Question 20

Differentiate between a product idea, a product concept, and a product image.

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

Which of the following best characterizes the decline stage of product development?

Which of the following statements characterizes the introduction stage of the PLC?