Chapter 8
Which of the following statements about new product development strategy is correct?
Innovation can be very expensive and very risky.
__________________ represent an internal source of new product ideas for a company.
Intrapreneurial programs
Which of the following statements concerning new products is correct?
Modified and improved products are considered new.
Which of the following would be an appropriate strategy during the growth stage of the product life cycle?
Spend a lot of money on product improvement, promotion, and distribution.
Which of the following statements is true regarding standardizing products for international markets?
Standardization decreases product design, manufacturing, and marketing costs.
Which of the following statements regarding socially responsible product decisions is correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
Which of the following statements is true regarding product life cycle curves?
The sales of a typical product follow an S-shaped curve made up of five stages.
Which of the following statements is correct concerning service marketers going global?
The trend toward growth of global service companies is expected to continue in the near future.
In the early 1970s, Gary Dahl sold Pet Rocks. The product had a short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as ________________.
a fad
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _______________________.
acquisition
After market strategy is developed, the next step of the new product development process is _______________.
business analysis
Which of the following is NOT a product life cycle (PLC) stage?
commercialization
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
crowdsourcing
Crowdsourcing is used in the _______________________ step of the new product development process.
idea generation
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________.
introduction timing
Which stage of the PLC is characterized by peak sales, low costs per customer, high profits, mainstream adopters, and a stable number of competitors that are beginning to decline?
maturity
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management?
maturity
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as ______________________.
modifying the market
______________________ is the step of the new product development process during which a physical product is first developed.
product development
______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development.
systematic
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________.
the company would see rising profits
To create successful new products, a company must _______.
understand its consumers, markets, and competitors and develop products that deliver superior value to customers
Intuit Labs, a division of Intuit, the accounting and payroll software developer, follows a "Design for Delight (D4D)" development philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit using?
Customer-centered new product development
