Question 1

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.ca for $5.95.
-Refer to Amusement Park Games.In terms of the new-product development process,Richardson's friends who encouraged him to put his ideas in a book were involved in which of the following?
A) product development
B) idea generation
C) idea screening
D) test marketing

Accepted Answer

Richardson's friends were involved in the idea generation stage of the new-product development process as they came up with the idea for Richardson to write a book about his arcade game strategies.

Question 2

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329.
-Refer to Jabra Corporation.The Jabra 1000 is technically advanced and somewhat difficult for people to understand.Thus,what may affect the rate of diffusion?
A) the relative advantage of the product
B) the compatibility of the product
C) the complexity of the product
D) the trialability of the product

Accepted Answer

The complexity of the product may affect the rate of diffusion, as it may be difficult for people to understand how it works, making it less likely for them to adopt it.

Question 3

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative.
-Refer to Music Industry.The phonograph record industry is currently in what stage of the product life cycle?
A) growth
B) decline
C) oversaturation
D) maturity

Accepted Answer

The phonograph record industry is in the decline stage, as indicated by the rapid drop in sales with the introduction of new technologies like compact discs and digital audio tapes, leading to records becoming a niche product.

Question 4

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative.
-Refer to Music Industry.Record companies spent a lot of money on product information advertising in the 1920s to educate the public about the new technology.This is a characteristic of which stage of the product life cycle?
A) decline
B) maturity
C) introduction
D) growth

Accepted Answer

Product information advertising is a characteristic of the introduction stage of the product life cycle, where consumers are not yet familiar with the product and need to be educated about its benefits and usage.

Question 5

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative.
-Refer to Music Industry.The time from the 1940s through the 1960s corresponds to which stage of the product life cycle for phonograph records?
A) decline
B) growth
C) introduction
D) maturity

Accepted Answer

The period from the 1940s through the 1960s corresponds to the maturity stage of the product life cycle for phonograph records, as sales continued to increase but at a slower rate compared to the earlier growth stage.

Question 6

You are a product manager for a manufacturer of detergent.You have determined that detergent is in the mature stage of the product life cycle.To keep your product from entering the decline stage,what should you do?
A) Promote detergent heavily to dealers and customers.
B) Use promotion to increase primary demand for detergent.
C) Raise the price of the detergent because customers are not price sensitive in this stage.
D) Abandon peripheral target markets for detergent.

Accepted Answer

In the mature stage of the product life cycle, promoting the product heavily to dealers and customers can help maintain its market share and prevent it from entering the decline stage. This approach focuses on reinforcing the product's value proposition and encouraging repeat purchases.

Question 7

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative.
-Refer to Music Industry.Digital audio tapes are similar to regular cassette tapes,but with superior sound quality.These characteristics may increase adoption rates.This suggests that which of the following may explain the rate of diffusion?
A) the complexity of the new product
B) the observability of the new product
C) the compatibility of the new product
D) the trialability of the new product

Accepted Answer

The compatibility of the new product with existing consumer habits and technologies can explain the rate of diffusion, as digital audio tapes are similar to regular cassette tapes but offer superior sound quality, making them more easily adoptable.

Question 8

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative.
-Refer to Music Industry.The market for record albums in the 1930s suggests phonograph records were in which stage of the product life cycle at that time?
A) decline
B) introduction
C) growth
D) maturity

Accepted Answer

The strong sales and profits experienced by the pioneers in the record industry during the 1930s suggest that phonograph records were in the growth stage of the product life cycle at that time.

Question 9

The rate of sales decline during the decline stage of the product life cycle is largely governed by which of the following?
A) the number of competitors in the market
B) how rapidly consumer tastes change or substitute products are adopted
C) the intensity of the competition's marketing efforts
D) the amount of money spent on advertising

Accepted Answer

During the decline stage of the product life cycle, sales decline is largely governed by how rapidly consumer tastes change or substitute products are adopted. This is because consumers are now looking for new and innovative products and services. They are no longer interested in the old products and services, and hence, the rate of sales decline becomes high. Competitor's marketing efforts, money spent on advertising, and the number of competitors in the market have a lesser impact on the sales decline during this stage.

Question 10

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative.
-Refer to Music Industry.The scenario outlines the stages of development of the market for phonograph albums.What is the name for this group of stages?
A) product breadth
B) marketing mix
C) product life cycle
D) product mix

Accepted Answer

The stages outlined in the scenario describe the product life cycle of phonograph albums, which includes introduction, growth, maturity, saturation, and decline.

Question 11

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329.
-Refer to Jabra Corporation.What type of new product is the Jabra 1000 described above?
A) a repositioned product
B) an improvement to an existing product
C) a discontinuous innovation
D) an addition to existing product line

Accepted Answer

The Jabra 1000 ear-bud phone is described as a device that fits entirely in your ear, with a transmitter that picks up your voice through bone vibrations and noise-cancellation technology. This type of product is a discontinuous innovation, as it is a completely new and different type of product that did not previously exist.

Question 12

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.ca for $5.95.
-Refer to Amusement Park Games.Since with the use of Richardson's book,most people can win arcade games and carry home as many stuffed animals as their arms can hold,it would seem likely that carnival operators would hope for which of the following?
A) a slow diffusion of the book
B) the book's purchase by laggards
C) a rapid diffusion of the book
D) intensive distribution of the book

Accepted Answer

Carnival operators would likely hope for a slow diffusion of the book to maintain the challenge and profitability of arcade games, as widespread knowledge of the secrets could reduce the games' profitability.

Question 13

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329.
-Refer to Jabra Corporation.When the first Jabra 1000 was sold,the initial sale signalled the start of which stage of the product life cycle?
A) introductory
B) growth
C) maturity
D) decline

Accepted Answer

The initial sale of the Jabra 1000 ear-bud phone signals the start of the introductory stage of the product life cycle, where the product is first introduced to the market.

Question 14

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329.
-Refer to Jabra Corporation.The Jabra 1000 is similar to the ear-bud system in a Walkman,which may increase adoption rates.What may explain the rate of diffusion?
A) the observability of the new product
B) the compatibility of the new product
C) the trialability of the new product
D) the complexity of the new product

Accepted Answer

The Jabra 1000's similarity to the ear-bud system in a Walkman suggests that its compatibility with existing user experiences and technologies may increase its adoption rates. Compatibility is a key factor in the diffusion of innovations, as products that fit well with potential users' existing habits and needs are more likely to be adopted.

Question 15

The marketing manager for a company that manufactures pet foods wants to base the marketing strategy he implements for the company's products on the product life cycle stages.In order to do this,what should he do?
A) Add new ingredients to products that enter the maturity stage of the product life cycle.
B) Change all private brands to generic brands once a product reaches the maturity stage.
C) Create a line extension for every product the company makes as soon the product leaves the introduction stage of its product life cycle.
D) Change the labels on its products as they change stages of the life cycle.

Accepted Answer

Adding new ingredients to products that enter the maturity stage of the product life cycle can help rejuvenate interest in the product and extend its life cycle by differentiating it from competitors and appealing to new customer segments.

Question 16

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.ca for $5.95.
-Refer to Amusement Park Games.Because the benefits of reading the book and employing its techniques are obvious to anyone who has ever attended a carnival,The Secrets of Amusement Park Games-Revealed can be said to exhibit which product characteristic?
A) complexity
B) compatibility
C) observability
D) trialability

Accepted Answer

The book's benefits, such as improving one's ability to win at arcade games, are visible and noticeable to others, which aligns with the characteristic of observability.

Question 17

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329.
-Refer to Jabra Corporation.When the Jabra 1000 was first launched,it most likely appealed to which product adopter category?
A) early majority
B) late majority
C) early adopter
D) innovators

Accepted Answer

The Jabra 1000, being a new and innovative product with advanced technology, would most likely appeal to innovators, who are the first to adopt new products and are willing to take risks on new technologies.

Question 18

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.ca for $5.95.
-Refer to Amusement Park Games.In terms of the new-product development process,Richardson's several unsuccessful attempts to put his thoughts on paper are an example of which of the following?
A) idea generation
B) business analysis
C) idea screening
D) test marketing

Accepted Answer

Richardson's unsuccessful attempts to put his thoughts on paper indicate that he was going through the idea screening stage of the new-product development process. During this stage, ideas are evaluated to determine their potential feasibility and profitability before any serious development work is undertaken. In this case, Richardson was evaluating the potential of writing a book on arcade game secrets.

Question 19

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.ca for $5.95.
-Refer to Amusement Park Games.In terms of the new-product development process,the book's availability on Amazon.ca is which stage?
A) commercialization
B) test marketing
C) business analysis
D) idea screening

Accepted Answer

Commercialization is the final stage of the new product development process, which involves launching and making the product available in the market for customers to purchase. As the book is available for sale on Amazon.ca, it indicates that it has completed all the previous stages of the new product development process, such as idea generation, screening, concept development, testing, and business analysis, and is now at the final stage of commercialization. Therefore, option A is the correct choice.

Question 20

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329.
-Refer to Jabra Corporation.The Jabra 1000 is superior to existing hands-free telephones,especially with its small size and single part.However,consumers may think its advantages over current hands-free phones may not be worth the additional cost.Thus,what may affect adoption?
A) the relative advantage of the new product
B) the trialability of the new product
C) the complexity of the new product
D) the observability of the new product

Accepted Answer

The relative advantage of the new product may affect adoption because consumers need to see significant benefits to justify the high cost compared to existing hands-free phones. If the Jabra 1000 is perceived as only marginally better than current options, consumers may not be willing to pay the premium price.

Quiz 9: Developing and Managing Products

You are a product manager for a manufacturer of detergent.You have determined that detergent is in the mature stage of the product life cycle.To keep your product from entering the decline stage,what should you do?

The rate of sales decline during the decline stage of the product life cycle is largely governed by which of the following?

The marketing manager for a company that manufactures pet foods wants to base the marketing strategy he implements for the company's products on the product life cycle stages.In order to do this,what should he do?