Question 1

All of the following are stages in the product life cycle except
A) introduction.
B) growth.
C) evaluation.
D) maturity.
E) decline.

Accepted Answer

The stages in the product life cycle are introduction, growth, maturity, and decline. Evaluation is not a stage in the product life cycle, but rather a continuous process throughout the cycle to assess the product's performance and make improvements.

Question 2

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States.Eiger Labs was a(n)__________ in the MP3 player market.
A) blockbuster
B) early adopter
C) pioneer
D) market tester
E) concept tester

Accepted Answer

The term "pioneer" is often used to describe companies that are the first to introduce a new product or technology to the market. Therefore, Eiger Labs can be described as a pioneer in the MP3 player market for being the first to mass-produce and sell an MP3 player in the US.

Question 3

During the __________ stage of the product life cycle,there are few but an increasing number of competitors.
A) growth
B) introduction
C) maturity
D) decline
E) innovation

Accepted Answer

During the growth stage of the product life cycle, the product becomes more popular and gains a larger market share. As a result, more competitors enter the market to capture some of that market share. This is why there are few but an increasing number of competitors during the growth stage.

Question 4

On the basis of the research it has gathered on consumer perceptions,the tests it has conducted,and competitive considerations,the XYZ firm confirms its target market (or markets)and decides how its product will be positioned.Then the firm finalizes the remaining marketing mix variables for the new product,including the marketing budget for the first year.This process illustrates
A) the product launch.
B) the company's evalutation of results.
C) premarket demonstrations.
D) alpha testing.
E) beta testing.

Accepted Answer

The process described involves determining the target market and positioning the product, as well as finalizing the marketing mix and budget for the launch of a new product. This process is known as product launch, making option A the correct choice.

Question 5

In the United States,most consumer packaged goods found in grocery and discount stores are already in the __________ stage of the product life cycle.
A) growth
B) pioneer
C) introduction
D) decline
E) maturity

Accepted Answer

Most consumer packaged goods found in grocery and discount stores have been in the market for a while and have already reached their peak in terms of sales. This suggests that they are in the maturity stage of the product life cycle, where sales growth is slow and marketing efforts focus on maintaining market share rather than acquiring new customers.

Question 6

After a product has been launched,marketers must undertake a critical postlaunch review to determine whether the product and its launch were a success or failure and what additional resources or changes to the marketing mix are needed,if any.For a product that does move on,the firms can measure the success of the new product by interrelated factors that include all of the following except
A) its satisfaction of technical requirements.
B) its satisfaction of performance.
C) customer acceptance.
D) its satisfaction of the firm's financial requirements.
E) its satisfaction of the firm's manufacturing requirements.

Accepted Answer

The options listed are factors that would typically be used to measure the success of a new product launch. However, option E, which refers to the satisfaction of the firm's manufacturing requirements, is less likely to be a relevant factor in determining the success of the product. While it is important for a product to meet manufacturing requirements, this is not necessarily a direct indicator of its success in the market.

Question 7

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, 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, laggards.

Question 8

Cathy has used Olay beauty products for years,even though there are many competitors on the market.She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line.Olay is in the _________ stage of the product life cycle.
A) introduction
B) growth
C) evaluation
D) maturity
E) decline

Accepted Answer

Cathy's planned purchase of a recently introduced product from Olay's Regenerist line suggests that the product is in the maturity stage of the product life cycle, as it has already gained acceptance in the market and can maintain a steady level of sales. The introduction stage is characterized by low sales and high marketing costs, while the growth stage sees a rapid increase in sales. The evaluation stage is not a part of the traditional product life cycle model, and the decline stage is marked by falling sales and profits.

Question 9

When a product is successful in the introductory stage of the product life cycle,
A) it moves directly into the maturity stage.
B) it is most likely to begin to launch spinoffs.
C) competition becomes less important.
D) it may start to see profits toward the end of this stage.
E) marketing costs increase significantly.

Accepted Answer

A product in the introductory stage may not start making profits immediately due to high marketing and development costs. However, if it is successful, it may start seeing profits toward the end of this stage before moving to the growth stage.

Question 10

Which of the following is true of profits in the maturity stage of the product life cycle?
A) They are negative.
B) They are low.
C) They peak or are declining.
D) They are rapidly rising.
E) They are slowing rising.

Accepted Answer

In the maturity stage of the product life cycle, competition is at its peak, and new entrants are continually entering into the market. Consequently, profits tend to peak or decline due to the high competition and sky-high marketing and advertising expenses that firms need to incur to maintain their market share. Hence, profits are often low or dwindling.

Question 11

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?
A) late majority
B) early majority
C) laggards
D) early adopters
E) innovators

Accepted Answer

The late majority is the last large group of buyers to adopt a new product, following the early majority. They are more skeptical and wait until the product is well established.

Question 12

Firms can measure the success of a new product by all of the following factors except
A) satisfaction of its technical requirements.
B) fewer competitors in the market.
C) satisfactory sales and profits.
D) customer acceptance.
E) satisfactory performance.

Accepted Answer

While having fewer competitors in the market can certainly be advantageous for a new product, it is not a direct measure of that product's success. The other four options are more directly related to measuring success, as they all consider either the technical aspects, sales and profits, customer acceptance, or performance of the product.

Question 13

Paul listens to music on his iPod and iPhone,but he still buys vinyl records at his local music store on occasion,although they are getting harder to find.Vinyl records are in the __________ stage of the product life cycle.
A) introduction
B) growth
C) evaluation
D) maturity
E) decline

Accepted Answer

The decline stage is characterized by decreasing sales and popularity of the product, as well as the potential discontinuation of the product. This is reflected in the fact that vinyl records are getting harder to find, which indicates that they are becoming less popular and relevant in the current market. Additionally, the introduction and growth stages are characterized by increasing sales and popularity, respectively, while the evaluation stage involves assessing the viability of the product before deciding whether to continue investing in it. The maturity stage involves steady sales and competition within the market.

Question 14

A product in the __________ stage of the product life cycle has a high number of competitors and competitive products.
A) introduction
B) growth
C) decline
D) development
E) maturity

Accepted Answer

In the maturity stage, the product has been on the market for a while and has become well-known. As a result, there are usually many competitors offering similar products in order to gain market share.

Question 15

The CEO of David's firm just came back from a business seminar.He called David into his office and stated,"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) the product life cycle works only for certain types of firms.

Accepted Answer

While the product life cycle can be a useful tool, it can be difficult to identify with precision exactly where a product is in the cycle. Additionally, companies that focus on diffusion of innovation may find other tools more helpful.

Question 16

During the introduction stage of a product's life cycle,typical consumers are
A) early adopters.
B) innovators.
C) pioneers.
D) early majority.
E) laggards.

Accepted Answer

During the introduction stage of a product's life cycle, the typical consumers are innovators, who are the earliest buyers of a product and are willing to take risks to try new things. They are usually a small group of tech-savvy individuals who are willing to pay a premium to be the first to try a new product.

Question 17

The product life cycle is theoretically __________ with regard to sales and profits.
A) U shaped
B) Y shaped
C) bell shaped
D) circular
E) flat lined

Accepted Answer

The product life cycle is typically represented as a bell-shaped curve, in which sales and profits start low, gradually increase to a peak, and then decline as the product becomes outdated or replaced by newer products.

Question 18

In one test before product launch,customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again.This is known as
A) premarket testing.
B) market testing.
C) alpha testing.
D) concept testing.
E) prelaunch testing.

Accepted Answer

Premarket testing involves giving customers a sample of a product before its official launch to gauge their interest and likelihood of purchasing or using it again. This helps companies understand the potential market reception and make necessary adjustments.

Question 19

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market,this is an example of
A) beta testing.
B) market testing.
C) premarket tests.
D) test marketing.
E) concept testing.

Accepted Answer

Beta testing is the process of testing a product with a small group of customers before its official release to identify and fix any issues or bugs. In this scenario, Nintendo is asking a few of its customers to try out a new video game that has not yet been released, which is a clear example of beta testing. Market testing, premarket tests, test marketing, and concept testing, on the other hand, refer to other types of testing that take place at different stages of a product's development or launch.

Question 20

How is consumer panel data collected during the test marketing phase of a new product introduction?
A) Panelists complete a questionnaire about the product.
B) Panelists scan their receipts on a home scanning device.
C) Stores provide sales data to companies.
D) Consumers voluntarily go to a website to record their preferences.
E) Focus groups are held in key markets.

Accepted Answer

During the test marketing phase, consumer panel data is often collected through the use of home scanning devices, which allow panelists to scan their receipts and provide information on their purchasing habits and preferences. This data can then be analyzed to determine how well the new product is performing in the market and to identify any areas for improvement. While other methods such as questionnaires or focus groups may also be used to gather consumer feedback, home scanning devices are typically the most efficient and reliable way to collect data during the test marketing phase.

Quiz 12: Developing New Products

All of the following are stages in the product life cycle except

The Eiger Labs MPMan was the first mass-produced MP3 player sold in the United States.Eiger Labs was a(n) __________ in the MP3 player market.

During the __________ stage of the product life cycle,there are few but an increasing number of competitors.

In the United States,most consumer packaged goods found in grocery and discount stores are already in the __________ stage of the product life cycle.

Which of the following is the correct sequence of new product adopters in the diffusion of innovation curve?

Cathy has used Olay beauty products for years,even though there are many competitors on the market.She plans to purchase a recently introduced micro-sculpting cream from Olay's Regenerist line.Olay is in the _________ stage of the product life cycle.

When a product is successful in the introductory stage of the product life cycle,

Which of the following is true of profits in the maturity stage of the product life cycle?

Which of the following adopter categories refers to the last large group of buyers to enter a new product market?

Firms can measure the success of a new product by all of the following factors except

Paul listens to music on his iPod and iPhone,but he still buys vinyl records at his local music store on occasion,although they are getting harder to find.Vinyl records are in the __________ stage of the product life cycle.

A product in the __________ stage of the product life cycle has a high number of competitors and competitive products.

During the introduction stage of a product's life cycle,typical consumers are

The product life cycle is theoretically __________ with regard to sales and profits.

In one test before product launch,customers try a sample product and are then surveyed to understand whether or not they would buy/use the product again.This is known as

If a few of Nintendo's customers are asked to try out a new video game that has not yet been released on the market,this is an example of

How is consumer panel data collected during the test marketing phase of a new product introduction?