Principles of Marketing: Chapter 11 Assignment

In the new-product development process, which of the following statements is true of the development stage? a. The marketing department should decide on the product's packaging, branding, labeling, and so forth. b. Preliminary figures for demand, cost, sales, and profitability are calculated for the first time. c. Ideas that are inconsistent with an organization's new-product strategy are eliminated. d. A group thinks of unlimited ways to vary the product or solve a problem.

a. The marketing department should decide on the product's packaging, branding, labeling, and so forth.

The decision to commercialize a product involves _____. a. building inventories b. concept testing c. additive manufacturing d. discontinuous innovations

a. building inventories

Vilante Corp., a television manufacturing firm, observes that its profits are declining because of slow sales. Therefore, it begins to promote the product to its consumers and dealers to maintain its market share. To distinguish its products from its competitors, it redesigns its television models stylistically. It also increases the product warranty from one year to three years. In this scenario, Vilante's products are in the _____ stage of the product life cycle. a. maturity b. introductory c. decline d. growth

a. maturity

The _____ is a biological metaphor that traces the stages of a product's acceptance, from its introduction to its decline. a. product life cycle b. diffusion process c. concept test d. new-product development process

a. product life cycle

_____ is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. a. Test marketing b. Business analysis c. Concept testing d. Idea screening

a. test marketing

Which of the following is true of simultaneous product development? a. It allows firms to lengthen the product development process. b. All relevant functional areas participate in all stages of the development process. c. The functional teams proceed through highly structured, sequential stages. d. It increases the costs involved in the product development process.

b. All relevant functional areas participate in all stages of the development process.

_____ is the degree to which a new product is consistent with existing values and product knowledge, past experiences, and current needs. a. Observability b. Compatibility c. Trialability d. Complexity

b. Compatibility

Which of the following statements is true of absolute failure? a. It occurs when a product achieves sales and market share goals but fails to achieve profit goals. b. It occurs when a company fails to recoup its development, marketing, and production costs. c. It results when a product returns a profit but fails to achieve sales, profit, or market share goals. d. It results when a company sells its products at bargain prices to make a profit.

b. It occurs when a company fails to recoup its development, marketing, and production costs.

Which of the following is a characteristic of early adopters? a. They rely less on group norms and values. b. They are more oriented to the local community. c. They are more influenced by global marketers. d. They are less eager to try new ideas.

b. They are more oriented to the local community.

In the context of new-product development, which of the following is a global strategy adopted by many multinational corporations? a. They adopt global strategies during the commercialization stage rather than the development stage. b. They develop every product for potential worldwide distribution. c. They do not make any changes to a product's design to accommodate global regulations. d. Their products are common across all markets and populations.

b. They develop every product for potential worldwide distribution.

Italiano, an American restaurant, experienced increased sales and high profits in the initial years of its establishment. Recently, it began to face increased competition. To rebuild its brand value, Italiano started expanding its distribution network and aggressively promoting its restaurant. In this scenario, Italiano is in the _____ stage of the product life cycle. a. decline b. growth c. maturity d. introductory

b. growth

How does the product life cycle concept help marketing managers? a. It shows marketers the appropriate marketing strategies to sell a new product. b. It suggests how to position a product to extend its life cycle. c. It helps marketers forecast future events and suggest appropriate strategies. d. It tells marketers the length of a product's life cycle.

c. It helps marketers forecast future events and suggest appropriate strategies

Which of the following statements is true of commercialization? a. It refers to limited introduction of a product. b. It refers to the launch of a new product. c. It refers to the decision to market a product. d. It refers to the adoption of an innovation.

c. It refers to the decision to market a product.

In the context of adopters who participate in diffusion, which of the following individuals is most likely to be a part of the early majority? a. Evan, who obsesses over new gadgets and purchases them on the day they are launched in the market b. Farhan, who buys his first desktop computer when laptops and tablets are already being widely used c. Stephen, who always purchases a product after conducting an in-depth research on its pros and cons d. Mike, who buys an iPhone as all his friends own one and he does not want them to consider him poor

c. Stephen, who always purchases a product after conducting an in-depth research on its pros and cons

From a worldwide perspective, which of the following statements is true of global marketers? a. They do not focus on meeting smaller markets' requirements. b. They develop products that are common across all markets and populations. c. They design their products to meet regulations in their major markets. d. They believe that all products have the potential for global market penetration without modification.

c. They design their products to meet regulations in their major markets.

Normally, the longest stage of the product life cycle is the _____. a. growth stage b. introductory stage c. maturity stage d. decline stage

c. maturity stage

Which of the following statements is true of the business analysis stage of the new-product development process? a. Established products are test marketed to assess new marketing strategies. b. Objective evaluation of ideas is postponed. c. The firm should start sketching a marketing strategy. d. For the first time, costs and revenues are estimated and compared.

d. For the first time, costs and revenues are estimated and compared.

In a product development process, which of the following is a disadvantage of test marketing? a. It prevents management from evaluating alternative strategies. b. It leads to problems in assessing how well various aspects of the marketing mix fit together. c. It cannot be used to test established products. d. It exposes the new product and its marketing mix to competitors before its introduction.

d. It exposes the new product and its marketing mix to competitors before its introduction.

For a long time, baking soda was used only as a cooking ingredient. Recently, Nails & Hammer Co., a construction firm, began marketing baking soda as an odor absorbent. The company promoted its use in absorbing odors in homes. In this scenario, which of the following categories of new products does baking soda belong to? a. Lower-priced products b. Existing products c. New-to-the-world products d. Repositioned products

d. Repositioned products

Which of the following statements is true of laggards? a. Their views about the future heavily influence their decisions. b. They have a worldly outlook. c. They want to be opinion leaders. d. Their independence is rooted in their ties to tradition.

d. Their independence is rooted in their ties to tradition.

In the context of adopters who participate in diffusion, which of the following statements is true of innovators? a. They have the longest adoption time and the lowest socioeconomic status. b. They are characterized as being deliberate and skeptical. c. They tend to be suspicious of new products and alienated from a rapidly advancing society. d. They are worldly and active outside their community than other categories.

d. They are worldly and active outside their community than other categories.

The rate of acceptance and diffusion of a new product will be faster when the a. product is different from existing values. b. product is complex to understand and use. c. product can be tried only on a limited basis. d. benefits of using the product can be observed by others.

d. benefits of using the product can be observed by others

The research and development (R&D) team of DataCom Corp., a software firm, holds a meeting to discuss potential ideas for new products. In the meeting, the moderator encourages everyone to share their ideas, no matter how trivial they may seem. He warns members against criticizing any idea and asks them to focus on offering plenty of ideas. In this scenario, the R&D team of DataCom is engaged in _____. a. idea screening b. concept testing c. beta testing d. brainstorming

d. brainstorming

Addiso, an energy drink, was extremely popular in the early 2000s. It suffered a decline in its sales because of rising competition in the market. As a result, the manufacturers modified the product's packaging from its regular cylindrical bottle to an interesting triangular-shaped package. This led to an increase in sales. In this scenario, the modified product belongs to the category of a. additions to existing product lines. b. new-to-the-world products. c. repositioned products. d. improvements or revisions of existing products.

d. improvements or revisions of existing products.

One of the reasons for new-product failures is that the products a. do not match their features with the competitors' products. b. are promoted continuously at regular intervals. c. are test marketed in locations isolated from the media. d. offer no discernible benefits compared to existing products.

d. offer no discernible benefits compared to existing products.