Question 1

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 maturity phase and survive for very long.

Accepted Answer

Refrigerators are a household item that has been around for a long time and has reached a level of maturity where there is little innovation happening. However, people still need refrigerators, so they are likely to stay in the maturity phase for a while without being replaced by a new product.

Question 2

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

The growth stage of the product life cycle is characterized by rising sales, rapid profit increases, and a small but growing number of competitors.

Question 3

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.

Question 4

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 of the product life cycle, sales reach their peak and profits begin to decline as competition becomes intense. This is because the market is saturated with competitors, and there are fewer opportunities for growth and differentiation. Companies may need to focus on cost-cutting measures or finding new ways to appeal to customers in order to maintain their market share during this stage.

Question 5

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 the step in the product development process where the product is introduced to the market. This is a critical step that requires a significant amount of resources and coordination across all aspects of the marketing mix, including product, price, promotion, and distribution. It is a make-or-break moment for the product, as a successful launch can result in strong sales and market share, while a poor launch can lead to failure and financial losses.

Question 6

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 not a major focus of marketing efforts during the maturity stage of the product life cycle. Laggards are those customers who are the last to adopt the product and are usually not a significant market segment during this stage. The other options (B, C, D, and E) are all characteristics of products in the maturity stage of the product life cycle.

Question 7

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

Accepted Answer

The question is asking what Beverly is likely to consider when evaluating the results of the new product launch. Option A is not relevant to the evaluation of the results, as it pertains to a factor that has already passed and cannot be changed. The other options all relate to the performance of the e-books and their impact on the bookstore's sales and profit, which are all factors that Beverly would consider when evaluating the success of the product launch.

Question 8

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 9

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

Protracted price wars eroding profits is a characteristic of the maturity or decline phase of the product life cycle, not the growth phase. In the growth phase, profits increase as economies of scale are attained and new customers enter the market. While new competitors may enter the market, this is a common occurrence in the growth phase and profits are typically still increasing. The exit of some competitors in an industry shakeout is also common in the growth phase, as weaker competitors cannot keep up with the rising demand and competition.

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 specifically designed to encourage retailers to try a new product by offering reduced prices for a limited time. This helps to generate interest in the product and incentivize retailers to stock and sell it, ultimately boosting sales and market penetration.

Question 11

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 12

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 of the product life cycle, sales are just beginning and it takes time for the product to become known to consumers. Therefore, sales are low and profits may be small or negative due to the initial investment costs.

Question 13

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

Slotting allowance is a fee paid by manufacturers to retailers in exchange for shelf space for their new products or to gain more or better shelf space for existing products.

Question 14

When McDonald's comes up with a new drink or sandwich for its fast food stores,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

This is an example of test marketing, where a new product is introduced in a limited number of stores to assess its potential success before a full-scale launch.

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

In the product life cycle, maturity stage is characterized by stable sales and competition from similar products. Windows has been in this stage for a while and will likely remain there until a new, superior product comes along to replace it. This is because, in the maturity stage, product differentiation becomes key to maintaining market share, and if Microsoft is unable to introduce new features or innovations, consumers may switch to a new, better product.

Question 16

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

Test marketing is the stage in the new product development process where the product is introduced to a limited geographical area to test its potential success before a full product launch. Therefore, if the majority of the failed consumer products in the museum were introduced through test marketing, it suggests that they failed to gain sufficient traction or positive reception in that limited market trial.

Question 17

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 product life cycle stages. The four stages are Introduction, Growth, Maturity, and Decline.

Question 18

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

Preliminary decisions about the target market should be made well before the launch phase, during the product development and planning stages.

Question 19

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 begin to decline, and firms must either position themselves for a niche market of loyal consumers or exit the market altogether.

Question 20

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 related to the Product element of the marketing mix, not the Place element. The other options are related to the distribution and selling of the product, which fall under Place in the marketing mix.

Quiz 12: Developing New Products

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 rise,profits rise rapidly,and there are a small but increasing number of competitors.

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.

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

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 a characteristic of products in the maturity 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

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

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

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

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.

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

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

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

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 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.

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

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

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

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?