Question 1

Which of the following is an example of "timing" in new product development?
A)Launching new fashion products just before the new sales season.
B)Releasing G and PG rated movies at the beginning of summer.
C)Offering sample textbooks in spring for fall adoptions.
D)Announcing new technology products at the annual COMDEX computer trade show.
E)All of these.

Accepted Answer

All of the options mentioned are examples of timing in new product development. Launching new fashion products just before the new sales season ensures that the products are fresh and on-trend. Releasing G and PG rated movies at the beginning of summer targets families and kids who are on summer vacation. Offering sample textbooks in spring for fall adoptions gives teachers and bookstores enough time to plan and order for the upcoming semester. Announcing new technology products at the annual COMDEX computer trade show ensures that the products are showcased to a relevant audience and generates buzz among industry professionals.

Question 2

The growth phase of the product life cycle is always dynamic.Which of the following does NOT occur in this phase?
A)Profits increase as sales increase.
B)Profits increase as economies of scale are attained.
C)Some new competitors may enter the market with similar products.
D)Some competitors will exit in an "industry shakeout."
E)Price competition with protracted price wars erodes profits.

Accepted Answer

The statement "Price competition with protracted price wars erodes profits" is incorrect as it describes a negative impact on profits. All other options (A, B, C, and D) are typically observed during the growth phase of the product life cycle.

Question 3

Some products may stay comfortably in the maturity phase of the product life cycle often until a new product emerges to replace them.An example of such a mature product is:
A)e-books.
B)refrigerators.
C)the VCR.
D)smart phones.
E)None of these.No product can stay in the mature phase and survive for very long.

Accepted Answer

Refrigerators are a mature product that have been around for many years and have reached a point where they are a staple in households. They are unlikely to be replaced anytime soon and will likely remain in the maturity phase for a long time. E-books and smartphones, on the other hand, are still relatively new and constantly evolving, while the VCR has already been replaced by newer technologies.

Question 4

During the _____________ stage of the product life cycle,sales are low and profits are small or negative.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

During the introduction stage, a new product is being launched and sales are typically low because consumers are not yet aware of the product or have not yet tried it. Profits may also be small or negative because of the high costs of product development and marketing.

Question 5

During the _____________ stage of the product life cycle,sales peak and profits begin to decline as competition becomes intense.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

The description matches that of the maturity stage, where the product has been in the market for some time, sales have peaked, and competitors have entered the market, causing profits to decline.

Question 6

When Dr.Putt invented his Eye-Over-the-Ball (EOB)golf putting device,he knew during the introductory stage:
A)sales would rise quickly,profits would jump,and even laggards would buy his product.
B)sales would level off,profits would decline,and mature golfers would be attracted to his product.
C)sales would slow down,profits would peak,and early adopters of golf equipment would be his major customers.
D)sales would be low,profits non-existent,and he would attract golf equipment innovators.
E)sales would be low,profits would be high,and all potential golfers would jump at the opportunity to buy his product.

Accepted Answer

The answer of When Dr.Putt invented his Eye-Over-the-Ball (EOB)golf putting...

Question 7

By the time BMW and Mercedes Benz entered the mini-SUV market,there were many competitors,sales had peaked,and profits were declining.These firms entered the market during the ______________ stage of the product life cycle.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

The fact that there were already many competitors and sales had peaked suggests that the mini-SUV market had reached its maturity stage, where products are facing increased competition and profits begin to decline. The introduction and growth stages typically have fewer competitors and increasing profits, while the decline stage is characterized by decreasing sales and profits.

Question 8

Now that the consumer demand was building for Miranda's new organic shampoo,she and her team faced a new set of decisions.Which of the following is NOT one of the decision items not on the agenda for the team discussion of Place in the marketing mix for a new product launch?
A)How much should be shipped initially to the stores?
B)Where should the merchandise be stored: at distribution centers,or shipped directly to the stores?
C)Which retailers are chosen to sell the product?
D)Are the packaging colors working well with the target markets?
E)How could they facilitate the display of the product in the stores?

Accepted Answer

The packaging colors are related to the Product element in the marketing mix, not the Place element. The other options are all related to the distribution and sales channels, which are pertinent to the Place element.

Question 9

The shape of the product life cycle curve isn't always a smooth bell shape.The curve of a product may be affected by:
A)how different the product is from existing products.
B)how valuable the product is to the customer.
C)the early adoption rates.
D)the adoption of complementary products.
E)All of these.

Accepted Answer

All of these factors can affect the shape of the product life cycle curve. A product that is very different from existing products may have a slower adoption rate, which can lead to a longer introductory phase and a sharper curve. A product that is highly valuable to the customer may have a more gradual decline phase as customers continue to use and repurchase the product. Early adoption rates can also affect the speed at which the product moves through the life cycle stages. Finally, the adoption of complementary products can extend the life cycle of a product or accelerate its decline.

Question 10

Lisa was extremely disappointed when,in her first marketing job,she was assigned to work on a product in the mature phase of the product life cycle.Her work in school had focused on new products,which seemed much more exciting.Once she started working with the product team,she became more enthusiastic as she discovered that:
A)she could take the product into a new market segment to stimulate new growth.
B)simple product redesign could reinvigorate the product.
C)changes in consumers' preferences were opening up new market segments.
D)taking the product to international markets would stimulate growth.
E)All of these.

Accepted Answer

All of these options are viable strategies for revitalizing a product in the mature phase of its life cycle. Lisa discovered that even though the product may have been around for a while, there were still opportunities to explore new markets, redesign the product, and expand internationally. These strategies can help a company continue to generate revenue and profits even as the product reaches the end of its life cycle.

Question 11

When Toyota introduced hybrid cars,there were waiting lists to buy them.Then Honda and a few other manufacturers entered the market,shifting the product life cycle for hybrid cars into the _____________ stage of the product life cycle.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

The introduction stage of the product life cycle is characterized by low sales and high costs as consumers become aware of the product. The growth stage is marked by a rapid increase in sales and profits as the product gains acceptance in the market. The maturity stage is when sales growth slows down or plateaus as the market becomes saturated with competition. The decline stage is when sales begin to decrease as the product becomes outdated or replaced by newer technologies. Since the question mentions waiting lists for Toyota's hybrid cars, it suggests that the product had already passed the introduction stage. The entry of Honda and other manufacturers into the market indicates growth, which makes D, growth, the best choice.

Question 12

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore.When evaluating the results,Beverly will likely consider all of the following EXCEPT:
A)why it took her so long to consider the new product line.
B)whether or not the e-books are generating the expected level of profit.
C)whether or not the e-books are generating the expected level of sales.
D)whether or not her customers are interested in the new books.
E)whether or not the e-books function as expected.

Accepted Answer

Option A about why it took so long to consider the new product line is not relevant when evaluating the results of the new product launch. The other options are all important factors to consider when evaluating the success of a new product.

Question 13

The CEO of David's firm just came back from a business seminar,and he called David into his office."I just found out about the product life cycle curve in a strategy seminar.This is a great tool.I want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." David needs to think fast for a good answer because he knows that:
A)the product life cycle is not a useful concept.
B)it is often impossible to identify with precision where a product is in the product life cycle.
C)the product life cycle is not helpful in companies like his that pay attention to diffusion of innovation.
D)the idea has been discredited by recent research.
E)All of these

Accepted Answer

While the product life cycle can be a useful tool, it is often difficult to identify with precision where a product is in the cycle. Additionally, companies that focus on diffusion of innovation may find other models or frameworks more helpful. Therefore, it is important for David to approach the inventorying of their products with caution and a clear understanding of the limitations of the product life cycle concept.

Question 14

Which of the following is the correct sequence of new product adopters in the Diffusion of Innovation Curve?
A)Innovators,Early adopters,Early majority,Late majority,Laggards
B)Early adopters,Early majority,Innovators,Late majority,Laggards
C)Innovators,Early majority,Early adopters,Innovators,Late majority,Laggards
D)Early majority,Late majority,Early adopters,Innovators,Laggards
E)Innovators,Late majority,Early adopters,Early majority,Laggards

Accepted Answer

The correct sequence of new product adopters in the Diffusion of Innovation Curve is Innovators, Early adopters, Early majority, Late majority, and Laggards. This sequence shows how different types of customers adopt new products at different stages, with innovators being the first to try new products and laggards being the last.

Question 15

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle?
A)Laggards are a major focus of marketing efforts.
B)Price competition is intense.
C)Marketing costs increase as firms defend their market share.
D)The market may become saturated because nearly all potential customers have adopted the product.
E)To increase the customer base,firms consider entry into new markets and new market segments.

Accepted Answer

Laggards are a focus of marketing efforts in the decline stage, not the maturity stage.

Question 16

Which of the following is NOT one of the four product life cycle stages?
A)Introduction
B)Leveling
C)Maturity
D)Growth
E)Decline

Accepted Answer

"Leveling" is not one of the four product life cycle stages. The correct stages are Introduction, Growth, Maturity, and Decline.

Question 17

During the _____________ stage of the product life cycle,sales rise,profits rise rapidly,and there are a small but increasing number of competitors.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

During the growth stage of the product life cycle, sales and profits increase rapidly, and there are a small but increasing number of competitors as the product gains acceptance in the market.

Question 18

During the ________________ stage of the product life cycle,firms either position themselves for a niche market of loyal consumers or they exit the market.
A)introduction
B)leveling
C)maturity
D)growth
E)decline

Accepted Answer

During the decline stage of the product life cycle, sales and profits decrease due to market saturation or the emergence of new technologies. At this stage, firms either focus on a niche market of loyal consumers or exit the market altogether. Therefore, E is the correct answer.

Question 19

Microsoft's Windows operating system continues to dominate the market,even though it has been around for over twenty years.Windows will likely remain in the mature stage of the product life cycle:
A)indefinitely.
B)until it rules the world.
C)until a superior product comes along to replace it.
D)unless Microsoft repositions Windows as an introductory stage product.
E)all of these.

Accepted Answer

While it is difficult to predict the future of technology with certainty, it is likely that a superior product may eventually come along to replace Windows, as has happened with other dominant technologies in the past. However, it is not guaranteed that Windows will enter the decline stage of the product life cycle anytime soon, as it is still widely used and has a large user base. Repositioning Windows as an introductory stage product is also unlikely, given its long history and established market position.

Question 20

A(n)__________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products.
A)facilitating payment
B)introductory price promotion
C)slotting allowance
D)stocking premium
E)place holder

Accepted Answer

A slotting allowance is a fee paid by manufacturers to retailers in order to gain more or better shelf space for their products. It is often controversial as smaller manufacturers may not be able to afford this fee and it can lead to a lack of variety on store shelves. The other choices are not related to this concept.

Quiz 11: Developing New Products

Which of the following is an example of "timing" in new product development?

The growth phase of the product life cycle is always dynamic.Which of the following does NOT occur in this phase?

Some products may stay comfortably in the maturity phase of the product life cycle often until a new product emerges to replace them.An example of such a mature product is:

During the _____________ stage of the product life cycle,sales are low and profits are small or negative.

During the _____________ stage of the product life cycle,sales peak and profits begin to decline as competition becomes intense.

When Dr.Putt invented his Eye-Over-the-Ball (EOB) golf putting device,he knew during the introductory stage:

By the time BMW and Mercedes Benz entered the mini-SUV market,there were many competitors,sales had peaked,and profits were declining.These firms entered the market during the ______________ stage of the product life cycle.

Now that the consumer demand was building for Miranda's new organic shampoo,she and her team faced a new set of decisions.Which of the following is NOT one of the decision items not on the agenda for the team discussion of Place in the marketing mix for a new product launch?

The shape of the product life cycle curve isn't always a smooth bell shape.The curve of a product may be affected by:

When Toyota introduced hybrid cars,there were waiting lists to buy them.Then Honda and a few other manufacturers entered the market,shifting the product life cycle for hybrid cars into the _____________ stage of the product life cycle.

Beverly is assessing the results of a new product launch of a series of e-books for her bookstore.When evaluating the results,Beverly will likely consider all of the following EXCEPT:

Which of the following is the correct sequence of new product adopters in the Diffusion of Innovation Curve?

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle?

Which of the following is NOT one of the four product life cycle stages?

During the _____________ stage of the product life cycle,sales rise,profits rise rapidly,and there are a small but increasing number of competitors.

During the ________________ stage of the product life cycle,firms either position themselves for a niche market of loyal consumers or they exit the market.

Microsoft's Windows operating system continues to dominate the market,even though it has been around for over twenty years.Windows will likely remain in the mature stage of the product life cycle:

A(n) __________________ is a fee paid by manufacturers to get new products into stores or to gain more or better shelf space for products.