Question 1

Which of the following would NOT be part of the launch of a new product?
A) educational efforts for complex or conceptually new products
B) technical support staff for technical products
C) determining the price for the product
D) incentives for distributors
E) starting to make preliminary decisions about the target market

Accepted Answer

The answer of Which of the following would NOT be...

Question 2

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 the e-books are generating the expected level of profit.
C) whether the e-books are generating the expected level of sales.
D) whether her customers are interested in the new books.
E) whether the e-books function as expected.

Accepted Answer

Beverly is assessing the results of the new product launch, so it is irrelevant why it took her so long to consider the new product line. All other options are relevant and important factors to consider when evaluating the success of the product launch.

Question 3

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

The term "slotting allowance" refers to a fee that manufacturers pay to retailers to secure space on store shelves for their new products or to gain a better position for their existing products. Retailers charge slotting fees to offset the costs of stocking and managing new products, and they may also use these fees as a way to negotiate with suppliers for better pricing or other benefits.

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, products are new to the market and often require significant investment in research, development, and marketing. Sales are typically low as consumer awareness is still building and profits may be negative due to high start-up costs.

Question 5

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 answer of By the time BMW and Mercedes Benz...

Question 6

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 growth phase of the product life cycle is characterized by increasing sales and profits due to economies of scale, as well as the potential for new competitors to enter the market. Additionally, the phase often involves a shakeout period where weaker competitors exit the market. However, price competition with prolonged price wars is more likely to occur in the maturity or decline phases of the product life cycle, rather than the growth phase. Therefore, E is the correct answer as it does not occur in the growth phase.

Question 7

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

During the maturity stage, sales reach their peak and profits begin to decline due to competition.

Question 8

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 significantly, and firms may have to decide whether to continue catering to a niche market of loyal consumers or exit the market altogether. Therefore, the best choice is E.

Question 9

Some products may stay comfortably in the maturity phase of the product life cycle 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) smartphones.
E) None of these. No product can stay in the maturity phase and survive for very long.

Accepted Answer

Refrigerators have been around for decades and have remained a mature product in the market. While new models and features have emerged over time, the function and use of refrigerators have remained largely unchanged, and they continue to sell well.

Question 10

__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product.
A) Loss leaders
B) Push prices
C) Market skimming incentives
D) Introductory price promotions
E) Distribution rebates

Accepted Answer

Introductory price promotions are special incentives offered to retailers to get them to try a new product. These promotions offer reduced prices for a limited time to encourage retailers to stock the new product and generate awareness among customers.

Question 11

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in
A) pretesting.
B) product launch.
C) test marketing.
D) product development.
E) concept testing.

Accepted Answer

When McDonald's markets a new product in a limited number of its outlets, it is conducting test marketing. Test marketing involves introducing a new product in a specific geographic area and assessing the response of potential customers before rolling out the product nationally. It is a way for companies to test the viability of a new product without committing significant resources to a national launch.

Question 12

The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.
A) pretesting
B) product launch
C) post-testing
D) product development
E) evaluation of results

Accepted Answer

The product launch is a critical step in the product development process, as it requires a significant investment of resources and coordination across all elements of the marketing mix. This is the point at which the product becomes available to consumers and the success of the launch can greatly impact the product's sales and future success. Pretesting and post-testing are important steps in the process, but they do not require the same level of resources and coordination as the product launch. Product development and evaluation of results are important overall stages in the product development process, but they do not refer specifically to the critical step of the product launch.

Question 13

Which of the following is NOT one of the four product life cycle stages?
A) introduction
B) location
C) maturity
D) growth
E) decline

Accepted Answer

The four product life cycle stages are introduction, growth, maturity, and decline. "Location" is not a product life cycle stage.

Question 14

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 and profits nonexistent, but 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

During the introductory stage of a product, sales are typically low because the product is just being introduced to the market, and profits are often nonexistent as the initial costs of product development and marketing are being recovered. Innovators, who are always on the lookout for the latest advancements, are usually the first to try new products.

Question 15

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 maturity 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) as long as the company doesn't change it.

Accepted Answer

According to the statement, Windows is in the maturity stage of the product life cycle, which means it has already reached its peak and is stable. Therefore, it will remain in this stage until a better product comes along and replaces it.

Question 16

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

In the growth stage, sales are increasing rapidly, and profits are starting to rise as well due to economies of scale and efficient production. At this stage, there is a small but growing number of competitors trying to enter the market.

Question 17

Now that the consumer demand is building for Miranda's new organic shampoo, she and her team face a new set of decisions. Which of the following is NOT one of the decision items 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) Should the manufacturer be involved in reordering decisions?

Accepted Answer

The decision of packaging colors is more closely related to product and promotion in the marketing mix, rather than place. The other options all relate to decisions about distribution and retail placement, which are central to the place element of the marketing mix.

Question 18

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

In the maturity stage, marketing efforts are focused on retaining current customers and gaining market share from competitors, rather than targeting laggards who have yet to adopt the product.

Question 19

A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographical area.
A) pretesting
B) product launch
C) test marketing
D) product development
E) concept testing

Accepted Answer

The given scenario indicates that the products failed during the test marketing stage, which involves introducing the new product to a limited geographical area and analyzing its performance before launching it on a larger scale. Thus, the correct option is test marketing (option C). Other stages of new product development include concept testing (option E), pretesting (option A), product launch (option B), and product development (option D).

Question 20

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

When Honda and other manufacturers entered the market, it indicated that hybrid cars were becoming more popular and widely accepted, which is characteristic of the growth stage in the product life cycle. This stage follows the introduction phase and is marked by a rapid increase in sales and the entrance of competitors.

Quiz 12: Developing New Products

Which of the following would NOT be part of the launch of a new product?

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

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

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.

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

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

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

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

__________ are special incentives offering reduced prices for a limited time, offered to retailers to get them to try a new product.

When McDonald's comes up with a new drink or sandwich for its restaurants, it often markets it in a dozen or so of its outlets. When the company does this, it is engaged in

The __________ step in the product development process is critical, requiring tremendous resources and extensive coordination of all aspects of the marketing mix.

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

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

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 maturity stage of the product life cycle

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

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

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

A marketing professor in Ithaca, New York, maintains a museum of failed consumer products. Most new products in this museum failed during the __________ stage of new product development, when they are introduced to a limited geographical area.

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.