Study plan Chapter 9
Which of the following statements about legal issues in the US regarding products is most likely false?
A company can legally make its product similar to another company's established product if it is unaware of the other company's patent.
Which of the following most likely describes a public policy violation?
A company forgets to report to its suppliers and distributors that one of its products will be dropped.
What is the LEAST likely cause of new-product failure?
A company spends too much effort researching customers and competitors before making decisions about market strategy.
A fast food company notices that frozen yogurt is becoming popular among consumers, so it decides to invest in a frozen yogurt machine. Initially, the fast food company sees a spike in sales of frozen yogurt, and then briefly afterward, the company experiences a rapid decline. The company is most likely experiencing which concept associated with the product life cycle?
A fad
Which of the following statements about styles, fashions, and fads in a product life cycle is most likely true?
A fad is a temporary period of high sales driven by consumer enthusiasm and popularity.
Which of the following statements best differentiates a product idea from a product concept?
A product idea is the possible product that the company thinks about offering to the market, whereas the product concept is a more detailed version of this idea that describes the product in meaningful consumer terms.
A company that sells school supplies decides to develop a new product line by buying a license to use Disney characters. This company is most likely obtaining a new product through which of the following means?
Acquisition
Amazon, an e-commerce retailer, has purchased several online companies (e.g., Internet Movie Database; Pets.com; Wikia, Inc.; Zappos; and others) to expand its product line. This is an example of which of the following?
Acquisition
If a company buys another company, a patent, or a license to produce another manufacturer's product, then the company is obtaining a new product through which of the following means?
Acquisition
All of the following demonstrate challenges of international products and services marketers EXCEPT for which?
An electronic company begins selling a type of headphone similar to another company's design.
Which of the following is an example of a company adapting its product or service offering in order to meet the needs of its international market?
An American-based fast food restaurant puts foods on its menu in China that appeal to local tastes.
Which of the following steps in the new-product development process is defined by a review of the sales, costs, and profit projections to assess whether these factors satisfy the company's goals?
Business analysis
All of the following are considered ways in which a company participates in new-product development EXCEPT which?
Buying a license for products
Which of the following steps in the new-product development process is defined by officially releasing the new product into the market?
Commercialization
All of the following are common company responses to the threat of product liability EXCEPT which?
Companies drop costly liability insurance to improve customer value and satisfaction.
Which of the following information is NOT included on the marketing strategy statement?
Controlled test markets
P&G conducts a program called "Living It" in which case researchers live with shoppers for several days in order to think of product ideas based on this experience. This program is based on the assumption that which of the following is the most important aspect of successful new-product development?
Customers
When profits and sales drop completely, the product is most likely in which stage of the product life cycle?
Decline
All of the following are best practice marketing strategies that can be used during the maturity stage of the product life cycle EXCEPT which?
Defending the quality of the product
A new smartphone enters the market, and after an initial slow climb in sales, the product sees a jump in sales and profits. Customers have mentioned that they heard about the new product through word of mouth and wanted to purchase the latest technology. Competitors are trying to keep up with this new product, which ultimately expands the market and decreases distribution costs. The company decides to lower the price of its product at the right time to attract more buyers and then experiences its highest profit rate. Based on this description, the product is most likely in which stage of the product life cycle?
Growth stage
A movie theater company has conducted an online survey to see what kind of phone app customers most desire. The company then generates several ideas for an app that could allow customers to purchase tickets on their phone in advance, search for movie times and theater locations, write reviews of movies, and share information about films. In an effort to narrow down these ideas, the marketing team proposes an R-W-W (real, win, worth doing?) approach. What phase of the new-development process is the movie theater company most likely experiencing?
Idea screening
A start-up company in Silicon Valley hires employees from various backgrounds to take an interdisciplinary approach to innovation. Every Friday, the company hosts a brainstorming session with employees for new product ideas, and the company encourages all levels of employees to post suggestions on its internal social network. This type of idea generation comes from what type of source?
Internal
A company that sells a line of frozen foods that promote weight loss is marketing a new product line of low-calorie desserts. The company has already taken the product idea and developed a physical good that can be released to the market. The company is now determining how to position the product within its brand and is spending a lot of money on promotions of the product. The company is relying on its regular consumer base to be ready to purchase this new product and also wants to create a marketing strategy that focuses on consumer awareness. At this point, the company has invested a significant amount of money and sales are slow, so the company has not yet seen any profits. Based on this description, the product is most likely in which stage of the product life cycle?
Introduction stage
On its website, Glad Products Company has set up a list of several different ways that its Press'n Seal plastic wrap can be used aside from the traditional ways to save leftover food. Which strategy is the company most likely using in order to uphold the maturity stage of the product's life cycle?
Modifying the market
Through its own research and development efforts, a company plans and produces original products in response to replacing aging products in the product life cycle. This definition is associated with which of the following concepts?
New-product development
Tech-No, a technology company that develops cutting edge electronics, decides to develop a new smartphone that has similar software compared to its competitor. The competitor files a lawsuit against Tech-No because the competitor feels that this is a violation of public policy concerning which of the following?
Patent protection
Company B sells honey and has developed a great new idea for beauty products that can be produced with honey. Marketers have already narrowed this down to lip care products and have surveyed customers by providing detailed information about this concept in order to get their feedback on this new product. In response to the positive customer feedback, marketers begin to develop their plan for introducing this new product into Company B's brand. The company has reviewed its projected sales and profit forecasts for this product. What is the next stage of new-product development that the company should pursue?
Product development
In 2013, Toyota will face over 100 class-action suits because of acceleration pedal problems that endangered consumers. This is an example of a public policy issue regarding which of the following?
Product safety
When sales are at zero, which stage of the product life cycle is the most likely product in?
Production development
Which of the following statements about standardization vs. adaptation of products in the international market is true?
Standardization is beneficial to keep a consistent worldwide image and to lower manufacturing costs; however, companies often have to adapt to varying tastes and styles in an international market by appealing to specific consumer needs.
______ is a basic and distinctive mode of expression.
Style
What is the role of the product steward?
To protect consumers from harm and the company from liability
Market research has shown that a product's life cycle is coming to an end and the company is falling behind the latest and greatest electronics offered by its competitors. If the company's goal is to obtain new products for its brand, then which of the following is the best practice that this company should implement?
Use market testing to see which new product ideas get positive responses from consumers.
A clothing retailer buys the rights to a brand of jeans in order to sell them on a national basis. This best demonstrates which of the following forms of obtaining a new product?A clothing retailer buys the rights to a brand of jeans in order to sell them on a national basis. This best demonstrates which of the following forms of obtaining a new product?
acquisition
Buying a patent to produce someone else's product is known as which of the following?
acquisition
Introducing a new product into the market is known as which of the following?
commercialization
A clothing manufacturer develops a system that allows up-and-coming designers to submit fashion ideas for the manufacturer to create. This best demonstrates which of the following elements of product development?
crowdsourcing
All of the following are challenges of international products and services marketers except for which?
deciding whether or not to sell a product similar to another
A cleaning chemical company adjusts the price of its bathroom cleaner for a second time and puts more effort into selling the product. This demonstrates company practices that occur in which of the following steps in a product life cycle?
decline
Which of the following best describes Samsung's motivation for developing new products?
Samsung's marketing research indicated that its products should improve the customer's experience and provide cutting-edge technology that would change people's lives.
