Question 1

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, the typical consumers are usually innovators who are the first to adopt new products or ideas. They are adventurous and willing to take risks to try out new products. Early adopters may also be present, but they usually come in at a later stage in the product's life cycle. Pioneers may refer to the company or individuals who introduce the new product to the market, rather than the typical consumers. Early majority and laggards usually adopt new products much later in the product's life cycle.

Question 2

Which of the following is not a stage in the product life cycle?
A) introduction
B) growth
C) evaluation
D) maturity
E) decline

Accepted Answer

Evaluation is not typically considered a stage in the product life cycle. The four main stages are introduction, growth, maturity, and decline. Evaluation may occur at various points throughout the life cycle but is not considered a distinct stage.

Question 3

What type of event exposes retailers to large numbers of new products in a concentrated location?
A) hosted shows
B) browser shows
C) premarket demonstrations
D) trade shows
E) trade promotions

Accepted Answer

Trade shows are events that gather numerous exhibitors (suppliers) together in a central location, making it convenient for retailers to browse and interact with different manufacturers presenting their products. This is a great opportunity for retailers to discover new products and trends, network with industry leaders, and learn about the latest technologies or services available in their industry. Hosted shows, browser shows, premarket demonstrations, and trade promotions may also include new products or offerings, but they do not concentrate on a massive display of new products over a short period like trade shows do.

Question 4

When a manufacturer launches a new product,it may offer __________ to wholesalers and retailers,including introductory price promotions,special events,and personal selling.
A) trade promotions
B) trade shows
C) trade-in allowances
D) trade discounts
E) trade budgets

Accepted Answer

Trade promotions are specifically designed to entice wholesalers and retailers to carry and sell a manufacturer's product. These promotions typically include introductory price promotions, special events, and personal selling to generate interest and increase sales. Trade shows and trade-in allowances are also common components of trade promotions, but trade discounts and trade budgets are not necessarily part of this marketing strategy.

Question 5

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 curve is typically bell shaped, with sales increasing until they reach a peak and then gradually declining. During the growth stage, sales increase rapidly and profits begin to rise. As the market becomes saturated and competition increases during the maturity stage, sales growth slows and profits begin to stabilize or decline. In the decline stage, both sales and profits decline as the product becomes outdated or is replaced by newer alternatives.

Question 6

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

Olay is an established brand with a loyal customer base, as demonstrated by Cathy's long-term use of their products. The fact that Olay has introduced a new product within their existing Regenerist line suggests that they are likely in the maturity stage of the product life cycle. In this stage, a product is well-established in the market and may have some competition, but continues to generate consistent sales and profits.

Question 7

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 commonly used to describe companies or individuals who are the first to enter and develop a new market. In this case, Eiger Labs was the first company to mass-produce MP3 players and sell them in the United States, making them a pioneer in the MP3 player market. The other options, such as "blockbuster," "early adopter," "market tester," or "concept tester," do not accurately describe Eiger Labs' role in the MP3 player market.

Question 8

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

Vinyl records are becoming harder to find, which indicates a decline in demand. Therefore, they are in the decline stage of the product life cycle.

Question 9

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

This is an example of beta testing, where a group of customers are given the opportunity to test a product before it is released in order to provide feedback and identify any potential issues. Beta testing helps to improve the product before it becomes available to the wider market.

Question 10

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 answer of Which of the following adopter categories refers...

Question 11

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, where panelists scan their receipts for purchases related to the new product. This data provides key insights into consumer behavior and preferences related to the new product introduction.

Question 12

The __________ is a specific price at which manufacturers encourage retailers to sell a product.
A) key price point
B) slotting fee
C) introductory price
D) retail margin
E) manufacturer's suggested retail price

Accepted Answer

The manufacturer's suggested retail price (MSRP) is a specific price that manufacturers suggest retailers sell their products at. This price is not always followed by retailers, and they may choose to adjust the price depending on the market and their own profit margins.

Question 13

All of the following are ways that manufacturers use promotion to generate demand for new products with consumers except
A) short-term price reductions.
B) coupons.
C) rebates.
D) advertising.
E) coordination of delivery and storage.

Accepted Answer

Coordination of delivery and storage is not a promotion technique used to generate demand for new products. It is a logistical consideration that ensures timely and efficient delivery of products to retailers or customers. The other options listed are common promotion techniques used to make consumers aware of new products and incentivize them to try them out.

Question 14

In the United States,most consumer packaged goods found in grocery and discount stores are 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 around for a while and have already gone through the introduction and growth stages of the product life cycle. Therefore, they are mostly in the maturity stage where they have established their market share and are focusing on retaining their customers and competing with similar products.

Question 15

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 market for the product is expanding and demand is increasing. As a result, there will be few but an increasing number of competitors who will enter the market in order to capture their share of the growing demand.

Question 16

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

In the introductory stage of the product life cycle, the product is first launched and enters the market. During this stage, the company invests heavily in marketing and promotion to raise awareness and generate demand. If the product is successful in this stage, it may start to see profits toward the end of the stage as sales increase and marketing costs decrease. However, it does not move directly into the maturity stage, launch spinoffs or make competition less important.

Question 17

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

The number of competitors in the market is not necessarily a measure of the success of a new product. It is possible for a product to be successful even with many competitors, as long as it is able to capture a portion of the market and generate satisfactory sales and profits. The other factors listed are all important measures of success, including meeting technical requirements, customer acceptance, and satisfactory performance.

Question 18

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 concept, it is often difficult to identify with precision where a product is in the product life cycle. Additionally, companies that pay attention to the diffusion of innovation may not find the product life cycle as helpful as other tools.

Question 19

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 a sample of the product to customers before it is officially launched in the market to gauge their interest and likelihood of purchasing or using the product again.

Question 20

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. Option A represents the correct sequence.

Quiz 12: Developing New Products

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

Which of the following is not a stage in the product life cycle?

What type of event exposes retailers to large numbers of new products in a concentrated location?

When a manufacturer launches a new product,it may offer __________ to wholesalers and retailers,including introductory price promotions,special events,and personal selling.

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

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.

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.

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.

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

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

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

The __________ is a specific price at which manufacturers encourage retailers to sell a product.

All of the following are ways that manufacturers use promotion to generate demand for new products with consumers except

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

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

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

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

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

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