Question 1

Asian Unick's initial test marketing results look promising.In considering launching its new online service,it must first decide on ________.
A) timing
B) employee schedules
C) identifying suitable new employees
D) local and state regulations
E) menu offerings

Accepted Answer

The initial test marketing results look promising but Asian Unick needs to decide on the timing of launching its new online service. Timing is crucial for the success of any launch, and Asian Unick needs to evaluate factors such as market trends, economic conditions, and consumer behavior to determine the best time to launch its new service. Therefore, A is the best choice. The other options such as employee schedules, identifying suitable new employees, local and state regulations, and menu offerings are important but are not the most critical factors in deciding whether to launch the new online service.

Question 2

Over the past 100 years or so,Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world.Crayola crayons are in the ________ stage of the PLC.
A) introduction
B) growth
C) maturity
D) decline
E) incubation

Accepted Answer

The maturity stage of the PLC is characterized by stable sales and profits, widespread distribution, and strong brand recognition. Crayola crayons have been in the market for over 100 years and are a household staple in more than 80 countries around the world, which indicates that they are well-established and in the maturity stage of the PLC.

Question 3

Companies often do not test-market simple line extensions or ________________ products.
A) new competitor
B) older range
C) copies of successful competitor
D) consumable
E) single-city

Accepted Answer

Companies often do not test-market copies of successful competitor products because they rely on the existing market acceptance and success of the original product.

Question 4

A company decides to sell off a number of lesser or declining brands.The management decided to ________ the products.
A) further test
B) maintain
C) drop
D) harvest
E) ignore the test market results of

Accepted Answer

The company has decided to sell off the lesser or declining brands, which indicates that they no longer want to maintain them. Therefore, the best choice is to drop these products. A and E are incorrect options since the company has already decided to sell off the brands, so further testing and ignoring test market results are irrelevant. Option B is also incorrect since the company has already decided to sell off the brands, so maintaining them is not a logical step. Option D, ‘harvesting’ the products is a term used for milking profits from a profitable product before it declines, and is not relevant to this scenario.

Question 5

Heinz introduced a new pouring cap on its ABC soy sauce bottle,the company was _______.
A) modifying the market
B) modifying the pricing strategy
C) modifying the distribution
D) modifying the product
E) dropping the product

Accepted Answer

Heinz introducing a new pouring cap on their ABC soy sauce bottle indicates that the company is modifying the product.

Question 6

Low-carb diets fell in and out of favorability with customers quickly.This is an example of a ________.
A) style
B) fashion
C) fad
D) product idea
E) market strategy

Accepted Answer

A fad is a short-lived trend or craze that quickly gains popularity and then falls out of favor just as quickly. This accurately describes the rise and fall of low-carb diets in the market.

Question 7

Company A introduces a new product ABC and Company B rushes to market its own product XYZ,which eclipses product ABC in terms of sales.This act illustrates ________.
A) why many companies engage in test marketing
B) one of the problems associated with test marketing
C) why prototypes are so important
D) how idea screening can make a product a commercial success
E) the variety of sources for idea generation

Accepted Answer

This act illustrates the problem of competition and the need for companies to quickly respond to new product introductions by competitors. This highlights the importance for companies to not solely rely on test marketing, as it may not reveal how a product will perform in the market once it faces competition.

Question 8

As an alternative to extensive and costly _______________ ,companies can use controlled test markets or simulated test markets.
A) business analysis
B) standard test markets
C) prototype development
D) idea generation
E) research and development

Accepted Answer

The question is asking for an alternative to extensive and costly approaches, which means that standard test markets might not be the best option. Instead, controlled test markets or simulated test markets can be used as they are relatively more cost-effective and efficient ways to test a product or idea before launch. Option A (business analysis) is not specifically related to testing a product or idea, while options C (prototype development) and E (research and development) are necessary steps in product development but do not necessarily involve testing in a market setting. Option D (idea generation) is also not directly related to testing a product or idea.

Question 9

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Wong explained her product idea-a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a shopping center in Hong Kong, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely reduce after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market-in a Hong Kong shopping center and in an appliance store in Shenzhen. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner,she was doing which of the following?
A) concept testing
B) marketing strategy development
C) idea screening
D) commercializing
E) test marketing

Accepted Answer

Evelyn was conducting concept testing by setting up a demonstration booth to gather consumer feedback and gauge interest in her solar-powered vacuum cleaner.

Question 10

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Wong explained her product idea-a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a shopping center in Hong Kong, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely reduce after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market-in a Hong Kong shopping center and in an appliance store in Shenzhen. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on-the-go and elderly consumers.
A) product idea
B) product concept
C) product image
D) prototype
E) promotional product

Accepted Answer

The product concept refers to the detailed version of the idea stated in meaningful consumer terms, which in this case is the practical use of solar power in a vacuum cleaner designed for specific consumer needs.

Question 11

Company A introduces a new product ABC and Company B rushes to market its own product XYZ,which eclipses product ABC in terms of sales.Company B was able to enter the ________ stage of the new-product development process before Company A could.
A) commercialization
B) business analysis
C) idea generation
D) screening
E) product concept development

Accepted Answer

Company B was able to reach the commercialization stage before Company A, as it successfully launched and marketed its product XYZ, surpassing Company A's product ABC in sales.

Question 12

Mattel's Barbie is an example of an age-defying product.Barbie,simultaneously timeless and trendy,is in the ________ stage of the PLC.
A) introduction
B) growth
C) maturity
D) decline
E) adoption

Accepted Answer

Barbie is a well-established product that has been in the market for several decades. Therefore, it is in the maturity stage of the product life cycle (PLC), where sales growth slows down, and the product is well-known and well-adopted by the target audience. Moreover, Barbie has shown adaptability over the years to remain trendy, which helps the product stay relevant in the market.

Question 13

Refer to the scenario below to answer the following questions.
Most people laughed when Evelyn Wong explained her product idea-a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a shopping center in Hong Kong, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.
The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's race cars and walking dolls.
Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely reduce after Evelyn recouped some of her costs.
After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market-in a Hong Kong shopping center and in an appliance store in Shenzhen. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."
-Evelyn's vacuum is at the ________ stage of the product life cycle.
A) product development
B) introduction
C) growth
D) adoption
E) incubation

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 14

When Kraft focused on cost-cutting with its older and established brands,leaving them to wither without much investment or modification,Kraft decided to ________ the older products.
A) extend
B) maintain
C) drop
D) harvest
E) review

Accepted Answer

Harvesting refers to the strategy of reducing investment in a product to maximize short-term profits, often leading to the product's decline.

Question 15

It's What's Hip,a chain of 18 music and CD stores,has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm,and not just in profit terms.Which one of these is NOT likely to be one of those costs?
A) takes up much of management's time
B) frequent price and inventory adjustment
C) requires advertising and sales force attention
D) requires too much focus on new-product development
E) negatively affects the company's reputation

Accepted Answer

During the decline stage of the PLC, a weak product may require significant attention from management for inventory and price adjustments, advertising and sales force attention, and may negatively impact the company's reputation. However, the focus on new-product development may not necessarily be a cost incurred due to carrying a weak product during this stage.

Question 16

MobileTones,a new company selling several lines of mobile phones,has closely modeled its products after successful products that are already in the marketplace.As it prepares to enter the market with its new products and services,which of the following should concern MobileTones the most?
A) legal obligations to suppliers and dealers
B) patent laws
C) the Federal Food, Drug, and Cosmetic Act
D) product liability suits
E) limited warranties

Accepted Answer

MobileTones should be most concerned about patent laws because modeling their products after successful ones in the marketplace could mean that they are infringing on existing patents. This could lead to costly legal battles and potentially block them from entering the market altogether.

Question 17

A company,especially the market pioneer,must choose a new launch strategy consistent with the intended ________.
A) pricing
B) product position
C) brand extension
D) prototype
E) fad

Accepted Answer

The intended product position should inform the launch strategy, as this will determine the target market, messaging, and distribution channels. Pricing is also important, but it should be determined based on the product position and the market demand. Brand extension and prototype are not relevant to the launch strategy, and a fad is not a feasible concept to base a launch strategy on.

Question 18

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120 million iPods have been sold.This success has attracted many large,resourceful competitors.The iPod is in the ________ stage of the product life cycle.
A) introduction
B) product development
C) maturity
D) decline
E) adoption

Accepted Answer

The maturity stage of the product life cycle is characterized by a slowing of sales growth and the product reaching its peak level of acceptance in the market. The iPod has been on the market for over a decade and has sold over 120 million units, indicating that it is in the maturity stage where sales growth is slowing down but the product is still widely accepted. Additionally, the competition in the market suggests that the iPod is no longer in the introduction or product development stages. The decline stage would indicate a significant drop in sales, which is not the case for the iPod. Adoption refers to the process by which individuals decide to try or adopt a new product, and is not a stage in the product life cycle.

Question 19

Which of the following statements best explains why idea screening may be the most important step of new-product development?
A) It increases the number of ideas generated.
B) Some potentially profitable ideas may be ill perceived by the idea screeners.
C) Some ideas that will become market disasters may be originally viewed favorably by the idea screeners.
D) It gives research and development team members an opportunity to gather consumer feedback.
E) It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.

Accepted Answer

Idea screening is crucial because it helps filter out ideas that are unlikely to be profitable, thereby saving the company money and resources in further development stages.

Question 20

Atlas Asia Pte Ltd lacks the confidence,capital,and capacity to launch its new product into full national or international distribution.Test market results look promising,so what should be management's next step?
A) retest the product in additional markets
B) develop a planned market rollout over time
C) secure a loan to provide confidence, capital, and capacity
D) seek the help of a nationally known consultant
E) develop a prototype

Accepted Answer

Developing a planned market rollout over time allows the company to gradually increase distribution, manage resources effectively, and build confidence without overextending its current capabilities.

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

Asian Unick's initial test marketing results look promising.In considering launching its new online service,it must first decide on ________.

Over the past 100 years or so,Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world.Crayola crayons are in the ________ stage of the PLC.

Companies often do not test-market simple line extensions or ________________ products.

A company decides to sell off a number of lesser or declining brands.The management decided to ________ the products.

Heinz introduced a new pouring cap on its ABC soy sauce bottle,the company was _______.

Low-carb diets fell in and out of favorability with customers quickly.This is an example of a ________.

Company A introduces a new product ABC and Company B rushes to market its own product XYZ,which eclipses product ABC in terms of sales.This act illustrates ________.

As an alternative to extensive and costly _______________ ,companies can use controlled test markets or simulated test markets.

Company A introduces a new product ABC and Company B rushes to market its own product XYZ,which eclipses product ABC in terms of sales.Company B was able to enter the ________ stage of the new-product development process before Company A could.

Mattel's Barbie is an example of an age-defying product.Barbie,simultaneously timeless and trendy,is in the ________ stage of the PLC.

When Kraft focused on cost-cutting with its older and established brands,leaving them to wither without much investment or modification,Kraft decided to ________ the older products.

It's What's Hip,a chain of 18 music and CD stores,has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm,and not just in profit terms.Which one of these is NOT likely to be one of those costs?

MobileTones,a new company selling several lines of mobile phones,has closely modeled its products after successful products that are already in the marketplace.As it prepares to enter the market with its new products and services,which of the following should concern MobileTones the most?

A company,especially the market pioneer,must choose a new launch strategy consistent with the intended ________.

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120 million iPods have been sold.This success has attracted many large,resourceful competitors.The iPod is in the ________ stage of the product life cycle.

Which of the following statements best explains why idea screening may be the most important step of new-product development?

Atlas Asia Pte Ltd lacks the confidence,capital,and capacity to launch its new product into full national or international distribution.Test market results look promising,so what should be management's next step?