BUAD Ch 8 quiz
Which of the following is NOT a product life cycle (PLC) stage? A.Introduction B.Decline C.Commercialization D.Growth E.Maturity
Commercialization
Which of the following statements about new product development strategy is correct? A.New products are not a major source of growth for companies. B.A new product will succeed as long as it is priced correctly. C.Good advertising creates successful new products. D.Innovation can be very expensive and very risky. E.New products are usually successful because consumers like new things.
Innovation can be very expensive and very risky.
__________________ represent an internal source of new product ideas for a company. A.Distributors B.Intrapreneurial programs C.Competitors D.Customers E.Suppliers
Intrapreneurial programs
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? A.Growth B.Maturity C.Product development D.Decline E.Introduction
Maturity
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management? A.Growth B.Introduction C.Maturity D.Product development E.Decline
Maturity
Which of the following statements concerning new products is correct? A.To be considered new, the product must be something consumers have not seen before. B.Modified and improved products are considered new. C.A modified product is not considered a new product. D.Products that are merely improved in some way are not considered new. E.Most new products succeed within two years of their introduction.
Modified and improved products are considered new.
______________________ is the step of the new product development process during which a physical product is first developed. A.Test marketing B.Marketing strategy development C.Idea generation D.Product development E.Concept development and testing
Product development
_________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A.Ombudsmen B.Product managers C.Brand managers D.Product stewards E.Attorneys
Product stewards
Which of the following would be an appropriate strategy during the growth stage of the product life cycle? A.Shift some advertising from building product awareness to building product conviction and purchase. B.Use promotional spending to inform consumers and get them to try the product. C.Modify the market, product offer, and marketing mix. D.Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. E.Spend a lot of money on product improvement, promotion, and distribution.
Spend a lot of money on product improvement, promotion, and distribution.
Which of the following statements is true regarding standardizing products for international markets? A.Standardization increases product design, manufacturing, and marketing costs. B.Standardization decreases product design, manufacturing, and marketing costs. C.Markets and consumers all over the world are alike, so a company should always standardize international products. D.Standardization helps a company develop a different image in different countries. E.Standardization ensures that products will succeed in foreign markets.
Standardization decreases product design, manufacturing, and marketing costs.
Which of the following statements regarding socially responsible product decisions is correct? A.Safety legislation has been passed to regulate chemical substances, drugs, and poisons, but not toys, automobiles, or fabrics. B.Manufacturers are generally not concerned with product liability. C.Companies can safely ignore patent laws. D.When companies drop products, they do not have any obligations to suppliers, dealers, and customers. E.The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition.
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? A.Once a product reaches the decline stage, it cannot be recycled back to growth. B.Marketing strategies do not change for different life cycle stages. C.Managing products through their life cycle is an easy task. D.The sales of a typical product follow an S-shaped curve made up of five stages. E.All products follow the traditional five-stage PLC model.
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? A.The trend toward growth of global service companies is expected to continue in the near future. B.Compared with product marketers, service marketers do not face any additional challenges when going global. C.Due to the nature of their business, professional service firms cannot expand their business to foreign markets. D.One industry that still has not globalized is retailing. E.The growth of global service companies is expected to decline in the near future.
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.a fad B.a failure C.a fashion D.a normal product life cycle curve E.a style
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 _______________________. A.new product brands B.product improvements C.acquisition D.new product development E.product enhancements
acquisition
After market strategy is developed, the next step of the new product development process is _______________. A.prototyping B.business analysis C.concept development D.idea generation E.commercialization
business analysis
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. A.business analysis B.concept development C.test marketing D.crowdsourcing E.marketing strategy development
crowdsourcing
Crowdsourcing is used in the _______________________ step of the new product development process. A.idea generation B.idea screening C.commercialization D.product development E.marketing strategy development
idea generation
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________. A.revenue goals B.the target market C.market share goals D.introduction timing E.the value proposition
introduction timing
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 ______________________. A.modifying the market B.market maintenance C.market stimulation D.harvesting the market E.milking the market
modifying the market
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development. A.systematic B.intrapreneurial C.crowdsourced D.sequential E.customer-centered
systematic
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________. A.there would be lagging adopters B.there would be high costs per customer C.there would few competitors D.the company would see rising profits E.the company could anticipate customers as innovators
the company would see rising profits
To create successful new products, a company must _______. A.obtain successful products through acquisitions instead of doing internal development B.focus its new product development efforts only on consumers and deliver value C.understand its consumers, markets, and competitors and develop products that deliver superior value to customers D.spend more on research and development (R&D) than its competitors and understand its consumers E.cut costs to keep the price of new products low while delivering acceptable quality
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? A.Systematic new product development B.Crowdsourcing C.Marketing strategy development D.Team-based new product development E.Customer-centered new product development
Customer-centered new product development